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Trade Wars
China’s Economic Momentum Weakens Despite Meeting 5% Growth Goal
China’s economy expanded at a 5% annual pace in 2025, buoyed by strong exports despite U.S. President Donald Trump’s tariffs. However, growth slowed to a 4.5% rate in the last quarter of the year, the government said Monday. That was the slowest quarterly growth since late 2022, when China was beginning to loosen stringent COVID-19 pandemic restrictions. The economy, the world’s second largest, grew at a 4.8% annual pace in the previous quarter. China’s leaders have been trying to spur faster growth after a slump in the property market and disruptions from the pandemic rippled through the economy.
Strong exports helped to compensate for weak consumer spending and business investment, contributing to a record trade surplus of $1.2 trillion. China’s leaders have repeatedly highlighted boosting domestic demand as a policy focus, but their effects have so far been limited. A trade-in program for drivers to replace older cars with more energy-efficient models, for example, has been losing steam in recent months. China has also provided trade-in subsidies for home appliances such as refrigerators, washing machines and TVs. While major consumer stimulus policies in 2025 -- including such subsidies -- are set to continue in 2026, they may be scaled back.
Read more at AP
Greenland Row Looms Over Davos
he escalating showdown between the U.S. and its NATO allies over the fate of Greenland looks set to be a dominant topic of conversation as leaders gather at this week's World Economic Forum event in Davos, with U.S. President Donald Trump again declaring on Monday that American ownership of the Arctic island is "imperative." Trump said in a post to social media that, following a phone call with NATO Secretary-General Mark Rutte, "I agreed to a meeting of the various parties in Davos, Switzerland. As I expressed to everyone, very plainly, Greenland is imperative for National and World Security. There can be no going back -- On that, everyone agrees!"
European leaders, meanwhile, continued to push back on Trump's ambitions and publicize their coordination efforts on the issue. National security advisers from a number of countries are due to meet on the sidelines of the event on Monday, with Greenland among the subjects on the agenda, diplomatic sources said. One European diplomat, who spoke on condition of anonymity, said Greenland had been added to the agenda of the previously scheduled meeting after Trump on Saturday to impose extra tariffs on eight European countries until the U.S. is allowed to buy the Arctic island.
Read more at the ABC
US Power Use To Beat Record Highs In 2026 And 2027, EIA Says
U.S. power consumption, which hit its second straight record high in 2025, will rise further in 2026 and 2027, the Energy Information Administration said in its Short-Term Energy Outlook on Tuesday. The EIA projected power demand will rise from a record 4,198 billion kWh in 2025 to 4,256 billion kilowatt-hours (kWh) in 2026 and 4,364 billion kWh in 2027. The EIA forecast power sales in 2026 will rise to 1,519 billion kWh for residential consumers, 1,522 billion kWh for commercial customers, and 1,069 billion kWh for industrial customers.
As renewable output rises, the EIA said the share of power generation from natural gas would slide from 40% in 2025 to 39% in 2026 and 2027. Coal's share will fall from 17% in 2025 to 15% in 2026 and 2027. The percentage of renewable generation will rise from around 24% in 2025 to 25% in 2026 and 28% in 2027, while nuclear power's share will rise from 18% in 2025 to 19% in 2026 before sliding back to 18% in 2027, according to the outlook. The EIA projected gas sales in 2026 would decline to 12.6 billion cubic feet per day (bcfd) for residential consumers, 9.4 bcfd for commercial customers, and 23.1 bcfd for industrial customers, but rise to 35.8 bcfd for power generation.
Read more at Reuters
Rail Regulator Sends $71.5 Billion Union Pacific-Norfolk Southern Deal Back for Redo
Union Pacific UNP -0.44%decrease; red down pointing triangle and Norfolk Southern’s merger application is incomplete, a U.S. railroad regulator said Friday, a setback for the two companies’ efforts to unite their systems in a $71.5 billion deal. The Surface Transportation Board rejected the application as a result of the incomplete status. The regulator said the application had insufficient information on the proposed combined company’s projected market share and lacked other necessary documents.
The agency invited the companies to revise and resubmit the application, adding a hurdle that is likely to delay what was already expected to be a lengthy merger-review process. The decision didn’t address broader concerns about rail consolidation and price increases that have been raised by unions and rival companies in recent months. “The decision doesn’t result in the dismissal of the merger proceeding, and applicants are permitted to file a revised application in the docket, which would commence a new review by the Board for completeness,” the agency said Friday. A Union Pacific spokeswoman said the company will provide the additional information requested to the STB. A Norfolk Southern spokeswoman deferred to Union Pacific.
Read more at the WSJ
Allegiant’s Impending Purchase Of Sun Country Airlines Could Mean More Flights For SWF
Allegiant Travel said last week it is acquiring fellow leisure carrier Sun Country in a $1.5 billion cash and stock deal, including debt, a plan that comes as budget airlines in the U.S. have faced a surge in costs following the pandemic and an increase in domestic capacity. “Our two complementary airlines will create the leading, more competitive, leisure-focused airline in the U.S.,” Allegiant CEO Greg Anderson said in an interview. Both Las Vegas-based Allegiant and Minneapolis-based Sun Country focus on cost-conscious travelers, connecting smaller cities to sun, beach and other vacation destinations.
The two carriers have faced fewer headwinds than other low-cost airlines, changing capacity around to meet demand, analysts noted. Sun Country also flies charters, as well as packages for Amazon , a business Anderson said was crucial to the deal. The airlines’ CEOs discussed their proposed combination with Amazon beforehand, he said. Local business leadeerrs are hopeful the transaction could mean additional flights for Stewart where Allegiant flies to destinations in Florida and South Carolina.
Read more at CNBC
Mazda Reportedly Puts Its New EV On The Backburner To Focus On Hybrids
After the slow-selling MX-30, Mazda went knee-deep in developing an all-new EV based on a dedicated electric platform, which was supposed to go into production next year. That plan, however, has been scrapped. The upcoming EV, which is expected to be a mid-size crossover, has now been delayed by at least two years, with production slated to start in 2029 at the earliest, according to Japanese newspapers Nikkei and Nikkan Jidosha, quoted by Automotive News. Blame tariffs, changing emissions regulations and the cancellation of the $7,500 federal tax credit, which have taken a huge toll on big players in the industry, let alone a small, independent company like Mazda.
In a statement sent to Automotive News, a Mazda spokesperson said that the company is still assessing the timeline of its EV rollout. “This information has not been released by our company,” the spokesperson said. “We continue to advance the technological development of our proprietary BEVs based on our multisolution strategy and will determine the timing of their introduction while carefully assessing regulatory trends in each country and changes in customer needs.”
Read more at Inside EVs
3M Forecasts Annual Profit Below Estimates Amid Sluggish Consumer Demand
Industrial giant 3M forecast annual profit slightly below Wall Street’s expectation on Tuesday, pointing to a challenging and uneven demand backdrop, even as it tightens costs to shield margins. Weak demand in the United States, softer retail markets and discretionary spending pressures continued to weigh on the company’s consumer segment, home to products such as Scotch tape and Post-it notes. Fourth-quarter sales at the segment, which made up more than 20% of the company’s 2024 revenue, fell 1.2% from a year ago — in contrast to a rise in 3M’s remaining business segments.
3M reported a fourth-quarter operating margin of 23.4%, up from 21.4% the year earlier. It targets an operating margin of 25% by the end of 2027. The company’s adjusted profit stood at $1.83 per share during the period, compared with analysts’ estimate of $1.80 per share. The company forecast 2026 adjusted profit of between $8.50 and $8.70 per share, with the midpoint falling 1 cent below the estimates of $8.61, according to data compiled by LSEG.
Read more at CNBC
Valentino, ‘The Last Emperor’ of High Fashion, Dies at 93
A history of the second half the 20th century could be written through the prism of the women who wore Valentino. From Audrey Hepburn to Nancy Reagan, Princess Diana to Jennifer Lopez, Valentino was the go-to designer for the rich, famous, powerful arnd glamorous. With Giancarlo Giammetti, his partner in life and business, he presided over the eponymous fashion house that made him one of the most dominant figures in the world of high fashion—his impossibly deep, bronze tan as recognizable as the Valentino V and signature color, Valentino Red, of his designs.
Valentino refused to use the runway to make artistic statements, and was often baffled by what he saw as unwearable designs from other fashion houses. “I make dresses for women who actually wear them,” he said. Trends came and went, but Valentino was dismissive, even at times disgusted by them. “Forget about fashion—the grunge look, the messy look. I cannot see women destroyed, uncombed, or strange,” he told Vanity Fair in 2004. “I want to make a girl who arrives someplace and makes people turn and say: You look sensational!’” He died Monday at his home in Rome, according to a statement from the Valentino Garavani and Giancarlo Giammetti Foundation. He was 93 years old.
Read more at The WSJ
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