Good morning. Donald Trump completed a dramatic return to power Monday when he was sworn in as the 47th president, declaring a new “golden age” where he will move swiftly to tackle border security, target rival nations with steep tariffs and widen domestic energy production.

Trump has said he plans to embark this week on one of the most sweeping deregulatory drives in U.S. history, slashing rules emanating from every channel of executive authority. 

• Tariffs: Trump didn’t implement new tariffs, but he said in the Oval Office that he plans to place 25% tariffs on imports from Canada and Mexico on Feb. 1 and that he might still implement universal tariffs. His tariff warnings are forcing Europe to confront an unwanted trade-off: Keep its own tariffs low and shoulder the economic costs, or throw up new barriers in a bid to protect vulnerable industries.
   
• TikTok: Trump also rode to TikTok’s rescue on Sunday, working on the eve of his new presidency to try to undo a ban effort that he helped initiate during his first term. Meanwhile, China suggested it was willing to work with Trump to keep TikTok operating in the U.S.
   
• China: Trump has told advisers he wants to travel to China after he takes office, according to people familiar with the discussions, seeking to deepen a relationship with Xi Jinping strained by the president-elect’s threat to impose steeper tariffs on Chinese imports.
   
• Big Pharma has hope: As Trump takes office, the biotech and pharma space is cautiously optimistic that its fortunes might finally begin to shift—or at least not get any worse.
   
• Possible roll-back of executive orders issued by former President Biden in his final days: Biden issued a flurry of orders to rein in offshore drilling for fossil fuels, accelerate the build-out of data centers for artificial intelligence and promote cybersecurity against hackers. Some are sure to face challenges in the first days of the Trump administration as the new president seeks to roll back regulations he has said stifle economic growth.

U.K. delays Basel banking reforms again on U.S. uncertainty.

The U.K. is pushing back the implementation of the Basel 3.1 international banking reforms by one year to allow more time for the U.S. to clarify its approach under the Trump administration.

The Prudential Regulation Authority, a subsidiary of the Bank of England, said Friday that it is delaying the roll-out of the final set of regulation to Jan. 1, 2027. In September, the regulator already postponed the implementation date by six months to Jan. 1, 2026.

Various federal regulators issued a series of actions on Friday before Trump took office. Here's a recap. 

Federal Trade Commission

• Welsh, Carson, Anderson & Stowe has agreed to settle FTC charges that it tried to consolidate the Texas anesthesia market to drive up prices, eight months after a federal judge dismissed similar charges against the private-equity firm.
   
• The FTC approved separate consent orders resolving antitrust concerns over two multibillion-dollar oil deals: Exxon Mobil’s purchase of Pioneer Natural Resources and Chevron’s acquisition of Hess. 
   
• The FTC sued PepsiCo in a last-minute blitz of lawsuits before the end of the Biden administration, alleging that the beverage giant forced many consumers to pay higher prices by giving Walmart unfair pricing advantages.
   

Securities and Exchange Commission

• Vanguard will pay $106.4 million in restitution to investors to resolve charges brought by the SEC after the asset manager allegedly failed to notify investors of changes to its retirement funds.
   
• Crypto company Digital Currency Group agreed to pay a $38 million fine to settle with the SEC over allegations of negligence in overseeing a program offered by its now-defunct lending subsidiary Genesis Global Capital.
   

Justice Department

• Justice has filed suit against Walgreens, accusing the company of helping to fuel the opioid crisis by filling millions of unlawful prescriptions.

• A group representing 100 large employers sued the Labor Department over Biden administration rules aimed at ensuring mental-health treatment is covered like conditions such as cancer and heart disease.
   
• The European Commission has ramped up its investigation into Elon Musk’s X social network after the tech mogul criticized European governments in recent weeks.
   
• A group of 18 former European heads of state have called on the European Commission to break up Google’s highly lucrative advertising-technology business, claiming it erodes Europe’s media landscape.
   
• The National Highway Traffic Safety Administration is launching an investigation into General Motors after it received numerous complaints alleging engine failures in several of the automaker’s models.
   
• CNN on Friday agreed to pay a U.S. Navy veteran an undisclosed sum after a Florida jury found the network liable for defaming him in a segment about evacuation work in Afghanistan.
   
• Paramount Global executives have held internal discussions about settling a lawsuit filed by Trump over a CBS News interview with former Vice President Kamala Harris.
   
• A New York federal judge sentenced a former Mozambique finance minister to 8½ years in prison Friday for his role in an international kickback scheme involving $2 billion in fraudulent state-backed loans that left the African country teetering on financial collapse.

Israelis’ joy at hostage release is weighed down by dread.

There was relief among the crowd watching a massive screen in central Tel Aviv as trucks holding hostages inched their way through cheering Gazans. But Israelis said they also felt anguish at the thought that this is set to drag on for weeks—and anger at Hamas for the spectacle surrounding the release.

As a fragile cease-fire begins in Gaza, Israel hasn’t fulfilled its top war aim: to destroy Hamas. Israeli Prime Minister Benjamin Netanyahu is promising his frustrated right-wing supporters that he will deliver the promised “total victory” later.

Meanwhile, Palestinians are hoping the fighting really stops this time. 

Fed withdraws from central bank climate group. 

The Federal Reserve is withdrawing from an environmental group for global central bankers. The Fed joined the group, the Network of Central Banks and Supervisors for Greening the Financial System, in December 2020 as calls grew for financial regulators to consider how climate change could pose financial risks.

Meanwhile, the central bank’s recent infusion of financial-market brawn includes Beth Hammack, who worked for three decades at Goldman Sachs. "We still have an inflation problem," she said. "We still have a rate-of-change problem that we need to address." 

• The U.S. government is now constrained by its statutory debt limit, the Treasury Department said, prompting the start of “extraordinary measures” this Tuesday to keep America’s bills paid and putting pressure on Congress to lift the borrowing cap.
   
• China’s population continued to decline last year—though births edged up for the first time in eight years—falling for a third straight year as deaths outpaced births.

• Touched by personal stories of anguish and loss from the fires, donors have sent tens of millions of dollars directly to families in Los Angeles via crowdfunding. These competing pleas for generosity have uneven results.
   
• Toronto-Dominion Bank will hand the reins to a new chief executive two months sooner than planned, slash executive pay and overhaul its board as it looks to put behind it a costly money-laundering scandal.
   
• KPMG is poised to break through a longtime barrier and become the first Big Four accounting firm to practice law in the U.S., leveraging a novel Arizona program that allows nonlawyers to own law firms.
   
• A battle for disaster recovery resources is poised to erupt across the U.S. The vast scale of Los Angeles’s wildfire damage is coming into view, while devastated cities on the other coast are just starting to rebuild after back-to-back hurricanes ravaged the Southeast last fall.
   
• With hundreds of miners trapped below ground without food or water, two men from down the road volunteered to venture where no police, government officials or professional rescuers were willing to go.
   
• The union workers of Costco Wholesale have authorized a strike after coming to an impasse negotiating with the warehouse retailer two weeks before the current collective agreement is set to expire.

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