21 January 2025

US President Donald Trump during a rally at Capital One Arena ahead of the 60th Presidential Inauguration in Washington, DC, United States, Sunday, January 19, 2025.

cyclists | Bloomberg | Getty Images

This report is from today's CNBC Daily Open, the international markets newsletter. CNBC Daily Open keeps investors informed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

Trump says he will declare a national emergency
US President Donald Trump said Monday that he would do so
Declaring a national energy emergency – As part of a comprehensive agenda aimed at increasing fossil fuel production – ending what he called the “Green New Deal,” and withdrawing the United States from international commitments to combat climate change.

Optimistic about the Trump era
Trump's return to the White House caused panic in some countries due to his threat to impose tariffs and his unpredictable foreign policies. But people in many other countries do as well Optimistic about Trump 2.0According to the European Council on Foreign Relations, as published by the think tank Global survey Wednesday.

Melania$ and Trump$
First Lady Melania Trump Launched its own meme coinWhich bears the name “Melania” on Sunday evening. The token is currently trading at $4.20, down from a high of around $13. And on Friday, Trump too Announce a meme coin It's called “Official Trump.” At the peak of currency rates, the Trump family Net worth rose by billions of dollarsbased on its just-launched digital asset holdings.

Pardon Biden
Former US President Joe Biden on Monday He issued a preemptive pardon to several family members, citing fears of being targeted by “unfounded and politically motivated investigations.” Biden also pardoned Anthony Fauci and General Mark Milley, members of Congress who investigated the case January 6 Capitol riot And others who said they were under The threat of targeting is “baseless.” For political purposes.

The euro and the pound strengthen against the dollar
US markets were closed on Monday for Martin Luther King Jr. Day. Pan-European Stoxx 600 index increased by 0.05%. the euro and British pound strengthened against the US dollar, As stated Trump will not impose tariffs on US trading partners on his first day in office.

(PRO) The second time is an echo of the first?
It may be Trump's second term The same effects on certain asset classes As happened in the first round, according to some on Wall Street. To find out, CNBC Pro looked at the performance of several assets during the first 100 days of Trump's last presidency and asked analysts how well those assets performed.

Bottom line

Donald Trump is Officially the 47th President of the United States -And she plans to start working. Trump promised this Signed more than 50 executive orders After his recent inauguration, according to a person in his transition. Here are the two main issues that investors will be watching.

Definitions

“For me, the most beautiful word in the dictionary is ‘tariff,’” Trump told the Economic Club of Chicago in October. During his election campaign, Trump pledged to impose a tax. Global tariff 20% On all imports into the United States, 25% on goods coming from Canada and Mexico And more 60% discount on Chinese products.

Governments impose tariffs ostensibly to protect domestic industries. Companies that import goods pay what is Basically a taxleading to higher costs. This prompts them to look for local suppliers instead.

As supply chains become more integrated globally, and much of their manufacturing takes place outside the United States, companies may find it difficult to shift production to local shores. Hence, higher costs are likely to be passed on to the consumer In the form of higher prices.

In other words, tariffs could lead to more inflation.

Deportations

At a pre-inauguration event titled “Make America Great Again Victory March,” Trump pledge To his supporters, “the invasion of our country will stop.” Like tariffs, stricter immigration policies — or outright deportations — are usually enacted to protect the domestic economy (among other reasons).

The theory is that with fewer people competing for every open job, it will be easier to get work.

But many sectors of the American economy, such as construction and agriculture, suffer from this phenomenon It is staffed by illegal immigrantswho take on jobs that are undesirable for residents. Even documented immigrants play a crucial role in highly skilled sectors like technology — as proven by Elon Musk's clash with Trump supporters over… H-1B visas.

If reliable labor sources disappear overnight, companies will be forced to raise wages to attract talent, which could raise the possibility of a frightening spiral between wages and prices.

Other policies

Trump has promised several other economic measures, such as cutting corporate taxes, legalizing cryptocurrencies, and withdrawing green energy subsidies.

However, tariffs may have the greatest impact on the economy Financial institutions Worldwide.

— CNBC's Sam Meredith, Ryan Ermey, Annie Nova, Rebecca Picciuto, Evelyn Cheng and Lim Hui Jie contributed to this report.

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