Michelle Fleury, BBC's North America business correspondent, reports from New York City as crowds brave the cold for Donald Trump's second swearing-in. She discusses the anticipated executive orders impacting immigration and energy policy, which may disrupt global trade. The mood surrounding Trump's inauguration is contrasted with reactions in Davos, where leaders express concerns about his policies. Fleury also highlights the unique dynamics of corporate alliances during this transition, revealing how businesses are preparing for potential changes in U.S. economic strategy.
Trump's upcoming executive orders are expected to reshape domestic policies, particularly in energy production and inflation management.
The global economic landscape shows heightened volatility as countries prepare for potential trade implications following Trump's inauguration.
Deep dives
Impact of Trump's Policies on Global Economics
The potential return of Donald Trump to the White House raises significant questions about the implications for the global economy, particularly concerning trade practices and monetary policies. Discussions suggest that the 'Trumponomics 2.0' agenda could lead to substantial changes in the global trading system, prompting responses from international partners, notably Canada. A sentiment of cautious diplomacy is emerging as countries prepare for the possibility of a trade war, with Canada hinting at preemptive actions. The overall perception of volatility in the markets signals a readiness for adjustments as stakeholders anticipate Trump's upcoming economic announcements.
Key Executive Orders and Domestic Agenda
Upon taking office, President Trump is expected to implement a series of executive orders aimed primarily at addressing domestic issues such as inflation and energy production. His agenda includes reducing regulations that hinder fossil fuel production, particularly natural gas, in a bid to mitigate inflationary pressures and improve energy prices. Specific measures may involve declaring a national energy emergency and streamlining production efforts in Alaska. These actions underscore Trump's focus on economic recovery and are anticipated to have profound implications on sectors heavily reliant on energy prices.
Business Response to Political Shifts
The dynamic between corporations and the Trump administration appears to be evolving, with numerous CEOs present at the inauguration indicating a shift in corporate strategy. Businesses are keen to align themselves with Trump's policies, particularly on deregulation and tax cuts, as they seek to mitigate the potential impact of tariffs and trade reforms. A notable change in corporate attitudes is evident, as leaders prioritize cooperation with the new administration to secure their interests in an increasingly competitive landscape. This trend reflects a broader recognition among global businesses of the necessity to adapt to Trump's leadership style and policy agenda.
Crowds of supporters are braving the freezing cold in Washington to catch a glimpse of Donald Trump being sworn in as US President for a second time. He's promised to sign dozens of executive orders on his first day in office to push through his agenda and undo that of President Biden.
We hear from one group that will be watching those executive orders very closely - Mexicans living in the USA. Will Bain will also look at the global mood around the new President’s arrival – with many leaders gathering at the World Economic Forum in Davos in Switzerland.
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