Crypto News: Trump takes on Wall Street

US President Donald Trump used a virtual appearance at the World Economic Forum in Davos, Switzerland, to air some grievances while making additional tariff threats. This time it was against European Union nations, as he told them to make their goods in America or face penalties. While Trump has delayed his central campaign promise to levy tariffs on China his first day in office, he has gone on to threaten a 25% tariff on Canada and Mexico, two key US trading partners who have promised swift retribution.

Trump, 78, appeared on a video feed that showed him flanked by a jumbo-sized image of the seal on the president's Resolute Desk in the Oval Office. He managed to send oil prices lower when he announced he would push OPEC to cut crude prices, though similar efforts by earlier presidents—including Trump himself—have often fallen on deaf ears.

Wall Street, despite its support for Trump, didn't escape the Republican's ire, either. During his speech, Trump sought to target JPMorgan and Bank of America, accusing them without evidence of restricting access to what he called "conservative" clients, something the banks rejected as a falsehood. Amid the regular drumbeat of mass killings in America, the banks have restricted lending to some gunmakers, however.

Bank of America previously limited lending to companies that make assault-style guns used for non-military purposes following shootings at a high school in Florida early in 2018. Citigroup also announced its own set of restrictions for clients selling guns that year. —Margaret Sutherlin and Jordan Erb

What You Need to Know Today

A federal judge blocked Trump's executive order to end birthright citizenship in a widely expected ruling under the plain language of the US Constitution and a century of precedent. US District Judge John Coughenour's decision, effective nationwide, will stop the administration from taking any steps to carry out Trump's executive order for 14 days, by which time a longer-term delay may be put in place as litigation proceeds. The initial defeat for Trump comes just days after Democratic-led states sued him over the measure. "This is a blatantly unconstitutional order," Coughenour told lawyers for Trump, according to the Associated Press. The judge, a Ronald Reagan appointee, said he couldn't remember ever seeing a case where the action challenged so clearly violated the Constitution, AP reported.

Former cable television host Pete Hegseth is a step closer to taking control of one of the world's most powerful militaries, following a Senate vote in which the Republican majority, minus two, advanced his nomination for Secretary of Defense. Hegseth, who has no high-level experience in government or the military, was one of the most controversial among Trump's unorthodox picks for cabinet posts. Hegseth has denied a steady stream of allegations, ranging from domestic abuse to excessive drinking, that have surfaced against him since Trump tapped him. Today's vote came despite new allegations of abusing a former wife. Hegseth has denied any wrongdoing.

Pete Hegseth during President Donald Trump's inauguration on Jan. 20 Photographer: Shawn Thew/EPA

A new Los Angeles blaze, the Sepulveda Fire, started early today near the Getty Center art museum and the city's affluent Bel Air neighborhood. It's burned at least 45 acres, though the Los Angeles Fire Department said it's been 60% contained. Another, the Laguna Fire in Ventura County, also started today and burned an estimated 15 acres by midday, prompting the evacuation of California State University Channel Islands. Today's fires are in addition to the Hughes Fire, which started Wednesday and grew within hours to engulf more than 10,000 acres (4,000 hectares).

US mortgage rates declined for the first time since the middle of December. The average for 30-year loans slipped to 6.96%, down from 7.04% last week, Freddie Mac said in a statement. While the dip could help assuage potential homebuyers' fears, they still face affordability challenges—borrowing costs are hovering close to the highest level in months and purchase prices are continuing to rise. House hunters are pulling back, leaving properties to linger on the market longer, according to Redfin.

Saudi Arabia's Crown Prince Mohammed Bin Salman told Trump he's willing to expand investments and trade with the US by $600 billion in the coming four years. It's a large commitment, even by the standards of oil-rich Saudi Arabia, amounting to around 55% of the country's gross domestic product. It also comes as the kingdom is posting fiscal deficits, in large part due to huge spending on Vision 2030, the crown prince's plan to diversify the economy.

Purdue and its owners have reached a $7.4 billion settlement over OxyContin's role in the opioid epidemic. The deal is just the latest twist in a legal saga that has been bitterly fought by the Sackler family and a bipartisan group of state attorneys general. The latter say the addiction epidemic that has killed hundreds of thousands of Americans was exacerbated by the marketing and sales of Purdue's OxyContin painkiller. The deal comes after the US Supreme Court last year rejected a $6 billion pact that would have protected Purdue's owners, members of the billionaire family, from any further litigation related to the addiction crisis. Today's settlement in principle doesn't give the family automatic protection from future litigation, New York Attorney General Letitia James said in a statement.