CEO inauguration crowd
In a public display of money and power, three of the wealthiest people on the planet lined up in the Capitol Rotunda on Monday to watch Donald Trump be sworn in as the 47th president.
The message was clear. They say Washington is open for business because we have a president in office who wants to be known as a dealmaker.
The three men Elon Musk, Jeff Bezos and mark zuckerberg Together, people worth nearly $1 trillion sat in front of Trump's Cabinet nominees and behind their families, creating something of a hierarchy of influence. (Sundar PichaiGoogle's top billionaire was between Bezos and Musk).
The visuals said a lot. By contrast, Trump's inaugural address raised few surprises, as he vowed to usher in a “Golden Age of America” and also tackled controversial issues such as gender politics.
A look at the high-profile guests may reveal a lot about what to expect from President Trump's second term. The Times' Mike Isaac, Karen Wise, Ryan Mack, Cade Metz, Cecilia Kang and Theodore Shleifer provide commentary for DealBook. It was also notable who was demoted to the Siberia region, including Republican Gov. Greg Abbott and Gov. Ron DeSantis. (This is an enlarged view of the VIP section.)
Monday's inauguration marked Trump's first presidential campaign, with tech giants (and other business leaders) largely ignoring him and only reluctantly showing up at the summit after Trump won the White House. It was a striking contrast.
But since Election Day, a parade of business leaders, particularly from the technology industry, have toasted him, many of whom visited Mar-a-Lago to show support and goodwill.
Among them was Bezos, who clashed with the president during his first term. He told Andrew at the Dealbook Summit in December that he was optimistic about Trump winning a second term. “What I've seen so far is he's calmer than he was when he started. More confident, more calm,” Bezos said.
Tim Cook, Sam Altman and Sergey Brin He praised Trump's victory and pledged to donate to the presidential inaugural fund. Cook and Brin were seated in first-class seats on the dais. Altman, who heads artificial intelligence giant OpenAI, has hit a spillover room.
And then there was Musk. The entrepreneur who spent more than $250 million to help elect Trump and is likely to open a West Wing office to run the government spending task force will be in the seat closest to the president. I was sitting. On Monday, at a rally of Trump supporters at Capital One Arena in Washington, Musk drew criticism for making a hand gesture resembling a Nazi salute.
Also found:
-
ShochuTikTok's CEO was wedged next to him in the back row. Tulsi GabbardPresident Trump's choice for Director of National Intelligence. (Joe Rogan I was right in front of them. )
-
Bernard ArnaultThe head of LVMH traveled with his daughter. Delphine and son alexandre. Luxury goods conglomerates are eager to avoid President Trump's tariffs.
-
Dana Whitethe head of the UFC and Meta's new board member, also had the best seat at the table.
Notably absent was Peter Thiel, one of Mr. Trump's earliest supporters, who hosted the bombing at his Washington mansion this weekend.
what's happening here
TikTok will officially receive a reprieve. President Trump signed an executive order on Monday delaying enforcement of a ban on the popular video app for 75 days, but it is unclear whether the measure could override the law that went into effect this weekend. The move effectively allows TikTok to operate in the U.S., but President Trump added a twist when signing the order, threatening to impose tariffs on China if Beijing doesn't approve the TikTok deal. .
The European Union hopes to persuade Trump to ease regulations on AI chips. Some European officials plan to seek easing of export restrictions ordered by President Joe Biden that have limited the type of computing power that countries such as Poland and Portugal can buy, Bloomberg reported.
Costco employees approve strike. The union representing 18,000 employees at the third-largest U.S. retailer has voted to leave the company if it doesn't win a new contract by Jan. 31. Labor organizing surged during the pandemic and continued to rise under the Biden administration. But that could be put to the test under the Trump administration, which supports pro-business legislation and deregulation.
Executive order disrupts market
President Trump has promised that his return to office will unleash a wealth of investment and growth.
But on the first day of the Trump administration, a flurry of executive orders pardoning hundreds of Jan. 6 rioters, threatening to undermine constitutional provisions on birthright citizenship, and withdrawing the United States from the World Health Organization, It was a reminder at home of the destabilizing effects of the Trump administration. worldwide market.
latest: S&P 500 futures rose and US Treasury yields fell. However, the market lost momentum overnight after President Trump threatened to impose 25% tariffs on Canada and Mexico on February 1st. This statement caused the dollar to rise.
It also suggested that the prospect of President Trump's trade war, which could hurt corporate profits and reignite inflation, was weighing on investors.
Market winners include:
-
Chinese stocks. President Trump did not impose tariffs on the first day as promised. Instead, he called for an investigation to determine, among other things, whether Beijing has complied with agreements made during President Trump's first term. The move contradicts hawkish comments on China by Scott Bessent, President Trump's nominee for Treasury secretary.
-
bank stocks. Investors are betting that sweeping deregulation and tax cuts will benefit companies, including inflating lenders' profits. Shares of large banks, at least those with less exposure to Mexico and Canada, rose on both sides of the Atlantic this morning.
-
energy stocks. Oil giants Chevron and Exxon Mobil rose in pre-market trading after President Trump signed an executive order pulling out of the Paris climate accord and opening vast tracts of federal land to drilling and extraction. However, oil prices fell on concerns that these policies would significantly increase supply.
Biggest loser:
-
-
European auto stocks and green energy stocks. Shares of Stellantis, Volkswagen and Mercedes soared after President Trump said he would repeal Biden-era regulations aimed at promoting electric vehicles and stop approval of new wind farms in federal territories. Shares in Danish wind power developer Orsted also fell on Tuesday.
The Trump effect at Davos
At the World Economic Forum in Davos, Switzerland, executives, bankers and even busy Uber drivers were discussing Monday's inauguration. President Trump's return seems to have elicited two reactions: excitement and fear.
Crypto industry executives, technology investors, and bankers focused on deregulation are clearly looking forward to Trump’s second term. Some expressed concerns about the possibility of a trade war and how it could affect European unity if Trump tries to broker deals with countries.
There was an incident that became a hot topic among executives. President Trump did not announce any tariffs as part of a flurry of executive orders. Some believe this means that the tariffs were an election campaign issue or negotiation tactic rather than actual economic policy.
Many said things felt quieter in Davos than in years past. This could be due to the inauguration in Washington, the snowstorm in New York, or simply the fact that many people were planning to arrive late (or some combination of the three). However, the weather in Swiss ski resorts is much milder than usual. , making it easy to move from meeting to meeting.
Some notable sights:
-
Struggled TikTok, like dozens of other companies, has a promotional hub on the Promenade.
-
For the first time, USA House, sponsored by the non-profit organization that supports veterans, is located in Davos. (Its windows feature a giant bald eagle draped in an American flag.) On Tuesday, it hosts Daron Larvaes of the U.S. Ski Team and Picabo Street.
-
Soccer icon David Beckham, fashion designer Diane von Furstenberg and Japanese architect Riken Yamamoto were in town to receive the World Economic Forum's Crystal Prize.
-
There are also the usual demonstrators at Davos. Fossil fuel demonstrators sprayed paint on an Amazon outpost and were briefly handcuffed, according to DealBook.
DOGE's first cut
Elon Musk has long been seen as the leader of President Trump's cost-cutting commission, known as the Department of Government Efficiency, but in reality he had a partner in investor and right-wing social activist Vivek Ramaswamy.
no longer.
Ramaswamy is leaving the committee to run for governor of Ohio. However, the Times reported that tensions with those around Trump, particularly Musk, were a factor in his resignation.
It also followed Mr. Ramaswamy's comments in which he blamed American culture for worshiping “mediocrity over excellence” for why top technology companies often hire foreign-born engineers. Those close to Mr. Trump are unhappy that Mr. Ramaswamy has intervened in an online debate among conservatives about H-1B visas, and many conservatives believe that Mr. Ramaswamy's comments are He said he views American workers as critical.
The apparent conflict over skilled worker visas highlights how influential the issue is among Trump supporters. Immigration hardliners support cracking down on the program, but Musk's tech group wants to keep it. So far, President Trump appears to be siding with H-1B advocates.
Politico reported that Mr. Ramaswamy had told others by Saturday that he was still actively involved with the panel, but had not worked on it much since December.
speed reading
Great deals
-
Italian lender UniCredit's acquisitions chief executive Andrea Orcel said it would continue pursuing Italian rivals Banco BPM and Germany's Commerzbank. (Bloomberg)
-
Investors including Mr Brookfield and Czech billionaire Daniel Krechinsky have reportedly been invited from Berlin to bid for state power company Uniper. (Reuters)
politics and policy
-
President Trump nominated Caroline Pham, a member of the Commodity Futures Trading Commission, to serve as acting chair. (Bloomberg)
-
“‘We’re running out of time’: Republicans are already nervous about Trump Hill agenda” (Politico)
the best of the rest
We welcome your feedback. Email your comments and suggestions to dealbook@nytimes.com.
