US President Donald Trump on Thursday said he will pressure Saudi Arabia and the Organization of the Petroleum Exporting Countries (OPEC) to decrease oil prices. 

Trump was addressing OPEC and other world leaders gathered in Davos on Thursday.

He urged Gulf nations to lower oil prices, stating that this could contribute to ending the Russian war in Ukraine.

Trump told the World Economic Forum in Davos, Switzerland:

If the price came down, the Russia-Ukraine war would end immediately. Right now, the price is high enough that that war will continue – you got to bring down the oil price.

“They should have done it long ago. They’re very responsible, actually, to a certain extent, for what’s taking place,” Trump added.

Saudi Arabia’s investments in the US

Additionally, he intends to request that Saudi Arabia increase its planned investment in the US from the initially reported $600 billion to a substantial $1 trillion, according to media reports. 

This move highlights the President’s focus on economic leverage and his administration’s efforts to influence global oil markets and secure greater financial commitments from key allies.

Trump and the Saudi Arabian Crown Prince Mohammed bin Salman discussed the kingdom’s “international economic ambitions” and trade issues. Following this discussion, the White House released a statement.

Saudi Arabia’s state news agency announced on Thursday that the kingdom intends to invest $600 billion in trade and investment with the US over the next four years.

“But I’ll be asking the Crown Prince, who’s a fantastic guy, to round it out to around $1 trillion,” Trump said. 

I think they’ll do that because we’ve been very good to them.

Russia war and oil prices

During his presidential campaign, Donald Trump made a bold promise to swiftly resolve the Russian conflict in Ukraine, even before officially taking office.

However, his stance seemed to have shifted over time.

On Thursday, when pressed about the potential for a peace agreement before the upcoming Davos forum next year, Trump appeared to deflect responsibility onto Russian President Vladimir Putin, suggesting that the onus for achieving peace lies with the Russian leader. 

This apparent change in approach contrasts with his earlier assurances of a quick resolution and raises questions about the feasibility of a peace deal soon.

“Well, you’re going to have to ask Russia,” Trump said.

“Ukraine is ready to make a deal.”

Trump expressed optimism that China could use its considerable influence to mediate a peaceful resolution between the two warring nations. 

To ease Putin’s worries, the US president indicated his willingness to provide assurances regarding nuclear weapons.

Trump on interest rates

In addition, Trump also declared that he would push for an immediate reduction in interest rates. 

“This begins with confronting the economic chaos caused by the failed policies of the last administration,” Trump said.

“Over the past four years, our government racked up $8 trillion in wasteful deficit spending and inflicted nation-wrecking energy restrictions, crippling regulations, and hidden taxes like never before.”

He argued that these elevated rates had caused a substantial increase in deficits, leading to what he characterized as an economic disaster during the presidency of his predecessor, Joe Biden.

“With oil prices going down, I’ll demand that interest rates drop immediately,” Trump said.

And likewise, they should be dropping all over the world.

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The S&P 500 climbed to a fresh record on Thursday, driven by President Donald Trump’s calls for immediate interest rate cuts and cheaper oil prices during his virtual address to the World Economic Forum.

Investors cheered the prospect of pro-growth policies and economic resilience, sending the Dow Jones Industrial Average up 343 points, or 0.8%, while the S&P 500 added 0.2%.

However, the Nasdaq Composite slipped 0.2% as major tech names like Nvidia, Tesla, and Amazon faced declines.

Trump’s remarks sparked a modest market rally, particularly after he stated his intent to “demand that interest rates drop immediately” and urged Saudi Arabia to lower oil prices, which briefly pushed crude oil into the red.

Short-term Treasury yields also declined, reflecting the market’s reaction to the president’s aggressive economic stance.

Earnings and policies drive optimism

The market has gained momentum this week on expectations of tax cuts, deregulation, and signs of robust economic growth under the new Trump administration.

While trade tariffs remain a potential headwind, investors are reassured by the absence of immediate action on levies during Trump’s initial days back in office.

Adding to the market’s optimism, strong fourth-quarter earnings reports from companies like Netflix and major banks boosted sentiment.

However, a disappointing outlook from American Airlines weighed on the mood, with the stock plummeting over 8% after issuing weak guidance.

Oracle soars on AI partnership

Oracle shares surged nearly 15% this week, following Trump’s announcement of a joint venture involving the company, SoftBank, and OpenAI to accelerate artificial intelligence development.

The stock is set for its best weekly performance since December 2021, when it gained more than 16%.

Year-to-date, Oracle shares are up 11%, reflecting growing investor confidence in its AI-driven initiatives.

Energy sector underperforms

Despite gains in the broader market, energy stocks struggled. The S&P 500 energy sector is down 2% this week, marking its worst performance since December 20, when it shed over 5%.

The decline also snaps a four-week winning streak for the sector, weighed down by falling crude oil prices and concerns over Trump’s call for lower energy costs.

With corporate earnings, economic data, and Trump’s pro-growth policies shaping sentiment, investors are keeping a close watch on how these factors will influence markets in the coming weeks.

As the S&P 500 pushes higher, challenges such as sectoral divergence and tariff uncertainties remain potential hurdles.

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Republican Representative Andy Ogles of Tennessee has introduced a resolution to amend the US Constitution, aiming to allow President Donald Trump—and future presidents—to seek a third term in office.

The proposed amendment would revise the 22nd Amendment, which currently limits individuals to two terms as president.

“President Trump has demonstrated his unique ability to reverse our nation’s decline and restore its greatness. He must be afforded the time necessary to accomplish this mission,” Ogles said in a statement.

He emphasized the need for legislative support to enable Trump’s continued leadership, describing him as “dedicated to restoring the republic and saving our country.”

Ogles, a conservative lawmaker in his second term, stated his resolution would alter the Constitution to permit individuals to serve as president for three terms, contrasting the current two-term limit imposed by the 22nd Amendment, ratified in 1951.

Ogles’ resolution comes shortly after Donald Trump’s inauguration for a second, non-consecutive term, a feat previously achieved only by President Grover Cleveland.

It also follows a resolution introduced by Democratic Representative Dan Goldman of New York, which reaffirms that the 22nd Amendment limits presidents to two terms in total.

The 22nd Amendment, established in response to Franklin D. Roosevelt’s unprecedented four terms, prohibits individuals from being elected president more than twice or serving more than two years of another president’s term while being elected once themselves.

Ogles’ proposal seeks to amend this to allow up to three presidential terms.

The amendment would need a two-thirds majority in both chambers of Congress and be ratified by 38 states to be added to the Constitution.

The proposed amendment would continue to bar a president from seeking a third term if they have already served two consecutive terms, thereby excluding former Presidents George W Bush, Barack Obama, and Bill Clinton.

Does Trump want a third term?

Throughout his political career, Trump has hinted at the possibility of serving beyond two terms.

At a private meeting with House Republicans in November, Trump reportedly joked about serving a third term if it were legally permitted.

Similar remarks were made during a National Rifle Association event, where he questioned whether a potential third-term win would make him a two-term or three-term president.

However, he has previously stated that he would not seek a third term if he wins the 2024 presidential election. In an interview with Time magazine in April last year, Trump said:

I wouldn’t be in favour of a challenge. Not for me. I wouldn’t be in favor of it at all. I intend to serve four years and do a great job. And I want to bring our country back. I want to put it back on the right track.

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On Thursday, President Donald Trump signed an executive action that addresses key promises he made to the cryptocurrency industry during his 2024 campaign.

“The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our nation’s international leadership,” the order said.

“It is therefore the policy of my administration to support the responsible growth and use of digital assets.”

Here’s a breakdown of what the order does and doesn’t do, and its implications for the crypto world.

Creation of a presidential working group on digital assets

The executive order establishes a task force to coordinate the development of clear regulations for the digital asset industry.

This group, chaired by White House AI and crypto czar David Sacks, will include high-ranking officials like the Treasury Secretary and the SEC Chair.

Key tasks for the group include identifying all existing regulations and policies affecting crypto within 30 days as well as submitting recommendations on these policies within 60 days.

The task force will also be required to deliver a comprehensive report with legislative and regulatory proposals within 180 days.

Anchorage Digital CEO Nathan McCauley praised the move, stating it marks a “significant first step” toward consistent and transparent regulation.

Evaluation of a national digital asset stockpile

While Trump stopped short of authorizing the immediate creation of a “strategic national bitcoin stockpile,” the order directs the working group to assess its feasibility.

This evaluation includes exploring the potential use of cryptocurrencies lawfully seized by the federal government as well as proposing criteria for managing and expanding such a reserve.

The scope of this proposed stockpile could extend beyond Bitcoin, encompassing other digital assets seized through law enforcement actions.

Prohibition of Central Bank Digital Currencies (CBDCs)

Trump delivered on his campaign promise to outlaw the creation of CBDCs, which are government-controlled cryptocurrencies.

As per the order, CBDC has been defined as “a form of digital money or monetary value, denominated in the national unit of account, that is a direct liability of the central bank.”

According to Trump’s order, agencies are prohibited from undertaking any action to establish, issue, or promote CBDCs within the jurisdiction of the United States or abroad.

They can only do so if they are required by law.

“Except to the extent required by law, any ongoing plans or initiatives at any agency related to the creation of a CBDC within the jurisdiction of the United States shall be immediately terminated, and no further actions may be taken to develop or implement such plans or initiatives,” read the order. 

While this prohibition resonates with crypto enthusiasts wary of state oversight, critics, like crypto researcher Molly White, argue it is largely symbolic, as no federal agency had seriously pursued a CBDC initiative.

Rescinding Biden’s 2022 crypto Executive Order

Trump revoked an earlier directive from President Joe Biden, which focused on studying digital assets and addressing their potential risks.

This signals a departure from Biden’s cautious approach to crypto and a move toward more industry-friendly policies.

Crypto industry reactions

Bitcoin (BTC) experienced volatility following the announcement, initially rising and then falling, before settling slightly higher over a 24-hour period.

The mixed market response reflects uncertainty about the order’s immediate impact.

Sean Farrell, head of digital assets at Fundstrat, remarked in a Yahoo Finance report that the action had been “priced in” by the market.

However, he noted that Trump’s pro-crypto stance is “huge” for the long-term future of the industry.

Other developments already underway reflect the administration’s influence.

For instance, the Securities and Exchange Commission (SEC) recently rescinded accounting guidance (SAB 121), which had hindered banks and broker-dealers from offering crypto custody services.

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In the days leading up to the Lunar New Year holiday, exporters in Shenzhen faced a logistical challenge as they raced to load and ship their cargo from Yantian Port, one of the world’s busiest container terminals. 

The impending eight-day holiday break threatened to significantly disrupt supply chains and delay shipments.

Adding to the urgency was the looming threat of additional US tariffs on Chinese goods. 

These potential tariffs, which were under consideration by the US government at the time, created an environment of uncertainty and incentivized exporters to expedite their shipments before any new trade restrictions could be implemented.

The combination of the Lunar New Year holiday and the potential for increased tariffs led to a surge in activity at Yantian Port, according to a Reuters report.

This rush to ship goods created a bottleneck at the port, with long queues of trucks waiting to enter and container ships vying for berths.

Increase in quota

Yantian port had announced earlier this week a 15% increase in its daily container quota to 15,000 units for the period of January 20-28. This port manages one-third of Guangdong’s international trade and one-quarter of China’s exports to the US.

A truck driver, Li Guoliang, usually takes far less time to transport a loaded container to the port’s container yard. However, on Thursday evening, the task took him two hours, according to Reuters. 

Li told Reuters:

The major reason is that factories rushed to ship before the holiday, and limited container quota at the port and space at container yards resulted in the congestion.

Another trucking company informed Reuters that one of their truck drivers was also stuck in the port area for over 24 hours on Thursday.

Threat of US tariffs

US President Donald Trump announced on Tuesday that his administration was actively considering the implementation of a 10% punitive tariff on imported goods from China.

This potential tariff, aimed at addressing trade imbalances and alleged unfair trade practices, could have significant ramifications for both countries.

The President indicated that February 1st was a possible deadline for a final decision on the matter.

If implemented, the 10% tariff would increase the cost of Chinese products for American consumers and businesses, potentially dampening demand for these goods. 

This could lead to a decrease in Chinese exports to the US and impact various sectors of the Chinese economy.

In response to President Trump’s tariff threat, the Chinese commerce ministry expressed on Thursday that China is open to working with the US to maintain stable and healthy economic and trade relations. 

US buyers and Chinese factories had already taken action prior to Trump taking office on Monday, according to Reuters.

China’s exports to the US surged in December as some American companies, anticipating new Trump tariffs, frontloaded shipments and increased inventories of items such as toys, furniture, and electronics, according to the report.

Trucking fees surge

Yantian’s container throughput reached a record 17.365 million standard containers in 2024, showing a nearly 7% increase from the previous year.

This growth aligns with the 14.6% surge in Shenzhen’s exports, which climbed to an unprecedented 2.81 trillion yuan in the same year.

Trucking fees from Shenzhen’s Fuyong logistics hub to Yantian Port have more than doubled this week to over 2,500 yuan ($345) due to worsening congestion. 

The congestion has also led to an additional container drop-off fee of more than 1,000 yuan at Yantian. These increased fees are denting exporters’ bottom line.

Li attributes the congestion to Trump’s tariff threat.

If there is no relation, why wouldn’t the factories ship the goods after the LNY holidays?

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