Member Briefing January 22, 2025
Trump Unveils $500bn AI Investment by SoftBank, OpenAI and Oracle
President Donald Trump announced a joint venture Tuesday with OpenAI, Oracle and Softbank to invest billions of dollars in artificial intelligence infrastructure in the United States. The project, dubbed Stargate, was unveiled at the White House by Trump, Softbank CEO Masayoshi Son, OpenAI CEO Sam Altman and Oracle co-founder Larry Ellison. The executives committed to invest an initial $100 billion and up to $500 billion over the next four years in the project, which will be set up as a separate company.
Stargate’s first joint venture will be to construct data centers in Texas — an effort that is already underway, Ellison said in the Roosevelt Room. OpenAI later said in an X post that the project “will not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies.” Softbank’s Son will be the chairman of Stargate, while semiconductor company Arm, Microsoft, NVIDIA, Oracle, and OpenAI will be “the key initial technology partners,” OpenAI said in the post.
Trump Holds Off On Immediate Tariffs But Plans Trade Overhaul
President Donald Trump did not immediately impose tariffs on Monday as previously promised but directed federal agencies to "investigate and remedy" persistent U.S. trade deficits and unfair trade practices and currency manipulation by other countries. His first day reprieve signals a possibly more deliberative approach to imposing tariffs, an issue that has shaken global policymakers and investors, and prompted a relief rally in global stocks and key foreign currencies against the dollar.
While Trump mentioned no specific tariff plans in his inaugural address, he said they were coming, to be collected by a new agency called the External Revenue Service. Trump added that his policies would make America "a manufacturing nation once again." Trump also directed federal agencies to assess China's performance under the "Phase 1" trade deal he signed with Beijing in 2020 to end a nearly two-year tariff war. The deal required China to increase purchases of U.S. exports by $200 billion over two years, but Beijing failed to meet the targets as the COVID-19 pandemic hit. "China's adherence to this agreement will now be assessed, to determine whether enforcement or changes are required."
Election Day and the Days After in the Workplace: Tips for Employers
As the New administration takes over in Washington DC, it is worth a reminder that employers may need to manage workplace political talk and potential consequences. Employers should hope for the best, but plan for the worst. Remembering these five takeaways will help if anything unsettling happens during this post-election season:
- Set Policy: review employee handbooks, onboarding materials, and other policies and procedures to ensure employers are setting clear expectations in compliance with applicable law. This includes reviewing leave policies that address voting leave, social media and communications policies, workplace anti-harassment protocols, dress code policies, and complying with notice and posting requirements,
- Train Regularly: conduct regular training, both for new hires and current employees, to review the organization’s policies on leave, harassment, discrimination, and social media, among others.
- Investigate Thoroughly: create a safe means for employees to report any speech or activity that they believe is in violation of workplace policies or state and federal laws. Ensure investigations are thorough, fair, and unbiased.
- Enforce Consistently: conduct investigations and take any adverse employment actions in the same manner for similar conduct; one employee generally should not be terminated for political speech that was made under similar circumstances by another employee, if the first employee was not disciplined.
- Document Everything: keep detailed records of policy changes, training sessions, and ongoing and completed investigations. Ensure documentation is accurate and easily accessible, while ensuring confidentiality and data privacy where required.
Finally, employers should never go it alone when faced with a complicated workplace controversy. Prevention and early, careful intervention when trouble appears imminent are investments in effective workplaces and successful organizations.
Read more at From Epstein Becker Green
Global Headlines
Middle East
- Israel Launches 'Significant' Military Operation In West Bank, At Least Eight Palestinians Killed – Reuters
- Israel’s Military Chief Resigns - WSJ
- Freed Israeli Hostage Emily Damari: 'I've Returned to Life' - Newsweek
- Hamas Is Effectively Back in Control in Gaza - WSJ
- Qatar PM Hopes Palestinian Authority Will Return To Gaza When War Ends - Reuters
- Palestinians Confront A Landscape Of Destruction In Gaza’s ‘Ghost Towns’ - AP
- Interactive Map- Israel’s Operation In Gaza – Institute For The Study Of War
- Map – Tracking Hamas’ Attack On Israel – Live Universal Awareness Map
Ukraine
- Russia's Putin Discusses 'Multipolar Global Order' With China's Xi Hours After Trump Inauguration – VOA
- Russian Su-25 Jet Factory in Flames After Massive Drone Strike - Newsweek
- Trump: Putin Is ‘Destroying’ Russia - Politico
- Putin’s Torturers Couldn’t Break These Ukrainian Prisoners - WSJ
- Ukraine’s Zelenskyy Questions The U.S.′ Commitment To Europe’s Future - CNBC
- North Korean Soldier Speaks After Ukraine Capture: 'I Didn't Know' - Newsweek
- Interactive Map: Assessed Control Of Terrain In Ukraine – Institute For The Study Of War
- Map – Tracking Russia’s Invasion Of Ukraine – Live Universal Awareness Map
Other Headlines
- Quad Foreign Ministers Meet In Washington In Signal Of Trump's China Focus – VOA
- Wake Up And Spend More On Defense, Macron Tells Europe As Trump Takes Office - AP
- Trump’s Tariff Threats Push Europe to Gear Up for Trade Fight - WSJ
- International reaction to Trump's inauguration - Reuters
- Taliban Say 2 Americans Held In Afghanistan Were Freed In A Prisoner Exchange - AP
- South Korean Impeached President's Detention Extended - BBC
- Romanian Far-Right Chief’s Bid To Reinstate Election Result Fails In European Court - Politico
- Von Der Leyen: Paris Climate Deal Still ‘Best Hope For All Humanity’ - Politico
Policy and Politics
Governor Hochul's $252B Budget Proposal
Gov. Kathy Hochul announced Tuesday a budget that increases state spending by nearly $10 billion, offers tax cuts and backs a slate of affordability measures. The fiscal year 2026-2027 state budget proposal is projected to grow to $252 billion in combined state and federal funding if approved. It’s an increase from last year’s $239 billion enacted budget, which then increased to $243 billion in New York’s mid-year report. “The budget is increasing largely based on current spending in Medicaid and in school aid. These commitments comprise probably 60% of the increase alone,” according to New York State budget Director Blake Washington. Hochul’s plan also includes:
- Middle class tax cut for joint filers making $323,000 or less
- Childcare tax credit capped at $1,000
- A one-time “inflation refund” check: $300 for New Yorkers making $150,000 annually and $500 for joint filers making up to $300,000
- Free breakfast and lunch for public schoolers
- Extension of the Millionaires tax for 5 years
- Leaves a $33B deficit for the MTA
Read more at NY State of Politics
Trump Executive Orders And Actions: By The Numbers
President Trump took office on Monday, marking the beginning of a new era in Washington. The changing of the guard was, perhaps, marked most significantly by sweeping new executive actions that will have far-reaching consequences on swaths of the electorate. Here’s a look at Trump’s moves on his first day in office, broken down by the numbers.
- 26 executive orders - Trump issued a flurry of executive orders on issues ranging from immigration to gender to TikTok.
- 12 memos - Trump issued several memoranda, including one that established an “America First Trade Policy” and another that established a regulatory freeze “pending review.”
- 4 proclamations - Trump issued four official proclamations on Monday, beginning with the pardons and sentence commutations for roughly 1,500 defendants charged in connection to the Jan. 6, 2021, attack on the Capitol. There have been 1,583 total defendants charged.
- 78 Biden executive actions withdrawn - Trump, in his first executive order, revoked dozens of Biden-era actions, including one that allowed members of the transgender community to serve in the military.
Trump Plans to Impose 25% Tariffs on Mexico, Canada by Feb. 1
President Donald Trump says he’ll put steep tariffs on Mexico and Canada – unless the U.S. neighbors toughen security at their borders. Trump said during an impromptu question and answer session with reporters that he was considering levying a blanket duty of 25% on Feb. 1 on both nations over illegal migration and drugs that he says are flowing across their borders with the U.S.
The U.S. had a trade deficit ‒ imports exceeding the value of exports ‒ with Mexico of $152.4 billion in 2023, according to the U.S. Bureau of Economic Analysis. Its deficit with Canada was $67.9 billion. Trump’s move against its North American neighbors could prompt retaliatory tariffs and lead to higher prices for Americans, the leaders of Canada and Mexico have warned. Mexican President Claudia Sheinbaum Pardo suggested after Trump’s earlier threat that she could respond with tariffs of her own. Outgoing Canadian Prime Minister Justin Trudeau has warned that if the U.S. president did go forward with tariffs, they would “raise the cost of just about everything for American citizens.”
Transition 2024
- White House Website Officially Flips (Back) To Donald Trump – USA Today
- Senate Confirms Rubio as Secretary of State - WSJ
- Trump to Meet With GOP Congressional Leaders After Flood of Executive Orders - WSJ
- Stefanik Pledges An 'America First' Agenda At The UN And A Review Of US Funding – NY State Of Politics
- Senate Panel Advances Bessent Nomination - Politico
- Pete Hegseth Confirmation: Senate Panel Approves Trump’s Pentagon Pick—Hours After Inauguration - Forbes
- Trump Moves To Suspend Clearances Of Ex-Intel Officials Who Signed Letter On Hunter Biden Laptop - AP
- Trump Faces First Lawsuit Moments After Taking Office—Targeting Elon Musk’s DOGE - Forbes
- Federal Workers Sue Trump To Win Back Rights – Newsweek
- Trump Birthright Citizenship Order Draws Quick Lawsuit - Politico
- Trump Signs Actions To Pull US Out Of Paris Climate Agreement, Intends To Promote Fossil Fuels And Mineral Mining - CNN
- Trump Imposes Federal Government Hiring Freeze, Orders Workers Back To Office - Politico
Health and Wellness
FDA Approves Johnson & Johnson’s Nasal Spray For Depression As Standalone Treatment
The Food and Drug Administration on Tuesday approved Johnson & Johnson’s nasal spray to be used alone in adults with a major depressive disorder that is difficult to treat, as sales of the drug grow. The spray, called Spravato, is now the first-ever standalone therapy for treatment-resistant depression, which is when trying at least two standard treatments does little to nothing to improve depression symptoms in a patient. Previously, Spravato was cleared in the U.S. to use together with an oral antidepressant for both treatment-resistant depression and for people with major depressive disorder who are experiencing thoughts of suicide or harm. The drug first entered the U.S. market in 2019.
Around one-third of the estimated 21 million U.S. adults with major depression battle symptoms — such as persistent feelings of sadness, sleep disturbances, low energy and thoughts of death or suicide — that don’t respond to treatment, according to some estimates. “For the first time ever, we now have an option that gives patients freedom,” said Dr. Gregory Mattingly, a physician and president of the Midwest Research Group who was involved in Spravato’s original clinical trials.
Industry News
Europe Extends Hand To US, Warns Of 'Race To Bottom'
The European Union signalled its readiness to engage and negotiate with U.S. President Donald Trump on Tuesday, warning of the need to avoid a trade conflict that would hurt both sides and the global economy. While Trump refrained from using his first day in office to launch tariffs on European goods he says are partly to blame for a persistent U.S. trade deficit, European officials are taking a "wait and see" approach to relations with his administration.
Speaking at the World Economic Forum's annual meeting a day after Trump's inauguration, European Commission President Ursula von der Leyen said a new era of harsh global competition had been developing over the past quarter of a century. von der Leyen did not mention Trump by name, but referred to the increasing use of sanctions, export controls and tariffs to safeguard national interests and which have ended the previous era marked by freer trade between economies. "We will need to work together to avoid a global race to the bottom," she said. "Because it is in no one's interest to break the bonds in the global economy. Rather we need to modernize the rules to sustain our ability to produce mutual gain for our citizens."
Consortium Led by GE Seeks DOE Support for Small Reactors
A consortium of utilities and other companies are linked to GE Vernova in plans to implement new nuclear energy capacity in the U.S., using the BWRX-300 small modular reactor offered by the subsidiary GE Hitachi Nuclear Energy. Along with the Tennessee Valley Authority, GE is seeking $800 million in funding from the U.S. Department of Energy’s Generation III+ SMR program, for a project involving an installation of the GE small modular reactor (SMR) process at its Clinch River, Tenn., site, targeting a 2033 start-up.
GE Vernova is the spin-off of General Electric that includes the former company’s alternative energy businesses, and GE Hitachi Nuclear Energy is a joint-venture formed in 2007 that supplies reactors and nuclear services worldwide. Its BWRX-300 process is an SMR concept based on licensed reactor technology and proven components, according to the developer, and uses a combination of fuel available in operating reactors, so it does not require high-assay low-enriched uranium. GE emphasizes that the BWRX-300 package and operating factors reduce construction and operating costs.
Read more at American Machinist
Jeep Maker Stellantis Brings Back American Classics After CEO Exit
In the weeks since the departure of former CEO Carlos Tavares, executives at global automaker Stellantis STLA 2.55%increase; green up pointing triangle have been moving swiftly to turn around the U.S. operations, employing a series of changes to jump-start sales again. At the top of their list is reinvigorating well-known American brands, such as Chrysler and Dodge, whose sales and lineups have withered in recent years.
Stellantis’s brand leaders say they need to get back to basics by offering models at more affordable price points and promotions that can help increase sales. Such moves, they say, could reverse a dismal 2024 that concluded with Tavares’s exit in December. Since the departure, the automaker has essentially shelved the former CEO’s playbook. Stellantis has delayed the release of two high-profile, electric-vehicle models and rehired some executives who had departed under Tavares, including bringing back a retired company veteran to lead the Ram brand. Additionally, the company plans to launch new models in popular categories that it had pulled back under the previous leadership. Among them are a replacement for the Jeep Cherokee, a nameplate that accounted for about 17% of Jeep’s annual sales at one point before it was discontinued earlier this decade.
Apple’s iPhone Sales in China Plunged 18% in Holiday Quarter
Sales of Apple Inc. iPhones dived 18.2% in China during the December quarter, according to independent research, a major setback for the company in its biggest market after the US. The company’s flagship handsets, China’s top sellers a year earlier, relinquished the top spot to Huawei Technologies Co., Counterpoint Research found. Apple slipped to third in the world’s largest smartphone arena over the three months, commanding about a sixth of the market. The drop in China drove a global slump of 5% in iPhone sales during the key shopping period.
The decline underscores an uneven debut for the latest generation of iPhones, which started off strong in China before losing momentum. The new devices distinguish themselves with the addition of artificial intelligence upgrades — but in China, most of those new features are still not accessible as Apple seeks out a local partner to provide on-device and cloud AI infrastructure. The company’s in talks with everyone from Baidu Inc. and Tencent Holdings Ltd. to startups like Zhipu AI, but no deal has yet been concluded. China’s broader smartphone market saw its first decline in sales in the final quarter of 2024, after returning to growth for most of the year.
EV Maker Canoo Files for Chapter 7 Bankruptcy
Electric van startup Canoo announced it has filed a voluntary petition for Chapter 7 bankruptcy, which will liquidate company assets and distribute proceeds to creditors. According to the Friday announcement, “Canoo has unfortunately been unable to secure financial support from the U.S. Department of Energy’s (“DOE”) Loan Program Office. Recently, the company’s executives were in discussions with foreign sources of capital. In light of the fact that these efforts were unsuccessful, the Board has made the difficult decision to file for insolvency.”
“News reports indicated that the company, which previously had received promises of hundreds of millions in funding from investors and government incentives to locate manufacturing in the U.S., was reportedly down to less than $100,000 in cash and millions in debt,” writes EnergyTech Managing Editor Rod Walton.
Orsted Takes $1.7 Billion Impairment Related the New York Offshore Wind Project
Orsted announced a $1.7 billion fourth-quarter impairment amid higher costs at its U.S. Sunrise Wind project and increased financing costs. The Danish renewable-energy company said late Monday that its Sunrise Wind project off the coast of New York is navigating supply chain and construction challenges, which have resulted in delays and increased costs and led to an impairment of 4.3 billion kroner ($600.3 million). Sunrise Wind was expected to be operational in 2026, but the company said commissioning of the project has now been delayed into the second half of 2027.
“The impairments announced today, and especially the continued construction challenges, are very disappointing,” said Chief Executive Mads Nipper. “We remain committed to the U.S. market in the long term with its potential for renewables to meet the growing electricity demand and create thousands of industrial jobs across the U.S.” The news comes as the industry faces headwinds from a Trump administration that has been vocal in opposing wind as an energy source due to cost, security and environmental concerns.
California Drops a Clean-Trucks Mandate
California’s air regulator on last week dropped a request to the Environmental Protection Agency for a waiver that would have allowed it to force truckers to buy battery-electric and hydrogen fuel cell trucks. The head of the California Air Resources Board said the agency withdrew the request because of concerns the Trump administration would deny it. California is the leader among states implementing regulations to reduce the number of diesel-powered trucks on the road. Truck manufacturers and carriers believe the Trump administration could slow state campaigns as well as federal regulations due to take effect in the coming years.
Heavy-duty trucks are one of the biggest sources of pollution on U.S. roads, contributing to climate change as well as respiratory problems and other health issues, especially in low-income areas close to ports and other freight hubs. Trucking industry officials say they support moves toward cleaner fuels, but they say regulations such as California’s strict mandate aren’t workable because the technology and infrastructure for zero-emissions heavy-duty trucks aren’t sufficiently developed.
Toyota’s City of the Future
Toyota Motor Corporation announced the completion of Phase 1 construction of Toyota Woven City, its test course for mobility. The launch of Phase 1 is planned for fall 2025 or shortly thereafter. Woven City has made steady progress since its groundbreaking ceremony on February 23, 2021, at the former site of Toyota Motor East Japan’s Higashi-Fuji Plant in Susono City, Shizuoka Prefecture, Japan. Construction of Phase 1 buildings — the initial area for co-creation activities — was completed in October 2024. Preparations for the official launch are now underway.
Woven City is a test course for mobility where “Inventors” who share a commitment to working “for someone other than themselves” can develop, test, and validate innovative products and services. These inventors include Toyota and Toyota Group companies, such as WbyT, as well as external companies, startups, and individual entrepreneurs. By leveraging Toyota’s decades-long manufacturing expertise and WbyT’s software capabilities, Woven City offers a unique environment equipped with the tools and services needed to tackle societal challenges and create future-focused value. Through collaboration among inventors and feedback from residents and visitors, Woven City aims to drive innovation and shape a better tomorrow.