Join Joe Matthew, co-host of Bloomberg Balance of Power, and John Liu, executive editor for Greater China, as they dive into the economic landscape following Donald Trump's inauguration. They discuss how Trump's presidency may affect the U.S. economy and international trade, particularly focusing on potential tariff threats to China. John shares insights on China's strategic preparations for the new administration and the implications for diplomatic relations. They also preview the crucial discussions expected at the World Economic Forum in Davos.
Donald Trump's administration is expected to implement aggressive energy policies aimed at reducing inflation while facing skepticism from economists.
The World Economic Forum in Davos will focus on collaboration amid geopolitical tensions, with significant participation from global leaders including Donald Trump.
Deep dives
Donald Trump's Inauguration and Executive Actions
Donald Trump is set to make a significant impact on his first day in office with a slate of executive orders aimed at reshaping multiple national policies. His promised actions may include a series of measures on border control, including reinstating Title 42 to limit immigration. Additionally, Trump intends to reverse some of the Biden administration’s policies, such as parts of the Inflation Reduction Act, indicating a swift shift in approach. The potential for a high-profile meeting aimed at resolving the ongoing war in Ukraine is also on the agenda, showcasing his ambitious plans for immediate diplomatic action.
Economic Strategies Under Trump 2.0
Trump’s economic strategy is heavily focused on energy production, with plans to increase crude oil supplies significantly as part of an effort to combat inflation. He encourages an aggressive 'drill, baby, drill' policy that aims to reduce energy costs and thereby lower overall inflation rates. However, economists express skepticism about the effectiveness of Trump’s proposals, suggesting that they may be inflationary rather than deflationary. The strategy also includes making permanent the previous tax cuts and potentially introducing tariffs destined to impact trade relationships.
Netflix's Record-Setting Subscriber Growth
Netflix is poised for one of its most significant quarters as it prepares to report its final subscriber growth metrics. Current predictions suggest that the company may add between 11 to 12 million new subscribers, propelled primarily by lucrative content such as live sports events. The introduction of an ad-supported tier has played a crucial role in this growth, accounting for around 50% of new signups in applicable markets. Moving forward, Netflix’s focus will shift from subscriber counts to revenue growth and profitability as it navigates new metrics in its evolving business model.
Geopolitical Challenges at the World Economic Forum
The annual meeting of the World Economic Forum is set against a backdrop of rising geopolitical tensions, as highlighted in the 2025 Global Risks report. Experts cited state-based armed conflicts as the foremost global threat, mirroring concerns about extreme weather and the spread of misinformation. With world leaders convening in Davos, the discussions are expected to center on collaboration and technological advancements in the context of an increasingly fragmented international order. Key attendees include Donald Trump and European leaders, sparking anticipation for how their interactions may influence global diplomatic and economic landscapes.