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| US House Republicans are in talks over raising the cap for state and local tax deductions, potentially reversing a move by the GOP eight years ago. New York Republicans are having discussions with the Trump administration about how to raise the $10,000 SALT cap so that their constituents can deduct more local income and real estate taxes. Lawmakers said they are hoping to come up with a figure for the deduction cap in the coming weeks—potentially as soon as February. Several Republicans representing areas in blue states such as New York, California and New Jersey—where high incomes, property values and local taxes make an increase in the SALT cap especially lucrative for many residents—have said they'd block the bill if the deduction isn't adequately addressed. Restrictions on SALT deductions came during Trump's first term, and were seen at the time in part as an attempt to penalize Democratic-leaning states. —Natasha Solo-Lyons | |
What You Need to Know Today | |
| Elon Musk openly questioned whether companies that joined Trump's announcement promising hundreds of billions of dollars in artificial intelligence infrastructure could follow through on their promises, exposing an early internal rift within the White House. "They don't actually have the money," Musk wrote on his social media platform hours after the announcement. "SoftBank has well under $10B secured. I have that on good authority." Trump was joined by SoftBank's Masayoshi Son, OpenAI's Sam Altman and Oracle's Larry Ellison to announce the venture, which they said would deploy $100 billion immediately with the goal of eventually spending $500 billion for the construction of data centers and physical campuses.  Elon Musk Photographer: Kevin Lamarque/Reuters | |
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| JPMorgan's dealmakers are spending their time in the Swiss Alps huddling with ebullient clients, but the boss of the biggest US bank is striking a more cautious tone. "Asset prices are kind of inflated" in the US stock market, Chief Executive Officer Jamie Dimon said in a CNBC interview Wednesday from the World Economic Forum in Davos. "You need fairly good outcomes to justify those prices, and we're all hoping for that. I think having pro-growth strategies helps make that happen, but there are negatives out there and they can tend to surprise you." | |
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| A new fire is spreading rapidly north of Los Angeles, threatening one of California's main transportation arteries. The Hughes Fire started just before 11 a.m. local time and quickly spread to more than 3,400 acres, spurring evacuation orders around Castaic Lake in northern Los Angeles County. Two Interstate 5 off-ramps were closed in the evacuation area and the vital link between northern and southern California was affected by heavy smoke. The LA fires are reviving trauma for homeowners battling insurers over claims. When the last of the embers from what's set to be the costliest wildfire on record are tamped out, thousands of Los Angeles residents who lost their homes have a new nightmare to face: completing an insurance claim so they can begin to rebuild their lives. For many, the process will likely take years and result in a lower payout than they expect.  Smoke from the Hughes Fire seen from Santa Clarita, California, on Wednesday. Photographer: Kyle Grillot/Bloomberg | |
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| The ceasefire agreement that paused fighting between Israel and Hezbollah in Lebanon will likely be extended when it expires next week. The Iran-backed group and the Israelis are unlikely to resume full-scale fighting despite needing more time to implement the original terms of the truce, which started in late November, according to Lebanese, Israeli and French government officials involved in ongoing talks. Lebanese officials have said more than 3,000 were killed by Israeli bombing and its subsequent invasion of the country. Israeli officials have said at least 72 Israelis were killed in Hezbollah attacks during the conflict, according to the Associated Press. | |
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| As Trump was sworn in as the 47th US President, he was surrounded by his family, donors and wealthy tech executives. Just a few feet farther away stood a political newcomer who's been credited with encouraging lots of votes: Joe Rogan. The fact that the host of the world's most popular podcast sat in the Capitol Rotunda as Republican luminaries like Florida Governor Ron DeSantis were confined to overflow speaks volumes about the new dynamics at play in Washington. Over the past two years, a set of massively popular podcasters and streamers cemented themselves as the new source of information for millions of young men, and, according to a new Bloomberg analysis, used their perch to rally these constituents in support of Trump and right wing issues in general. Here's how nine popular YouTubers helped Trump.  Joe Rogan, center left, during the 60th presidential inauguration. Photographer: Saul Loeb/AFP | |
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| Hedge fund clients of Seth Klarman's Baupost Group have pulled roughly $7 billion from the elite money manager in the past three years, perhaps losing patience with the famed value investor after a decade of lackluster returns. Baupost, once among the best-performing hedge funds, gained only about 4% a year since 2014, according to investors. The $23 billion firm's performance over that decade is about a fifth of its historic returns, lagging behind other multistrategy hedge funds and a blended stock and bond index fund. | |
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| A deep freeze is straining power supplies across the eastern US, sending demand on the country's largest electric grid to an all-time winter high as the South digs out from one of the worst snow storms in 130 years. Electricity consumption on the PJM Interconnection LLC grid, which stretches from Washington to Illinois, reached 145 gigawatts, topping the winter record set in 2015. Across the US South, extreme weather usually means boarding up windows against hurricane winds and lining streets with sandbags to hold back floods. This week, freezing temperatures and record-breaking snowfall are instead sending residents from Florida to Texas rushing to warming centers, and causing chaos on roads and runways.  New Orleans on Jan. 21 Photographer: Michael DeMocker/Getty Images | |
What You'll Need to Know Tomorrow | |
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| Saudi Arabia said it received a record 30 million foreign tourists last year as the kingdom spends heavily on hotels, luxury projects and entertainment to transform itself into a hub for tourism. The international arrival numbers, announced by Saudi Tourism Minister Ahmed Al-Khateeb at Davos, mark a rise from the roughly 27.5 million reported by the kingdom in 2023. Those figures include people that traveled to the country for religious pilgrimages, as well as for business and leisure. | |
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| Trumponomics: Sign up for our new podcast about what the new US president means for the global economy. This week, host Stephanie Flanders, Bloomberg News Editor in Chief John Micklethwait, Washington reporter Jenny Leonard and Bloomberg Businessweek Editor Brad Stone unpack Trump's transactionalism across the global economy and trade policy. Listen on Apple, Spotify, or wherever you get your podcasts. | |
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