Donald Trump promises ‘golden age’ for US as he moves to undo Joe Biden’s policies

Good morning. In today’s newsletter:

• Takeaways from Trump’s inaugural address

• What to expect from Japan’s upcoming rate decision

• An interview with Malaysia’s prime minister

We start in Washington, where Donald Trump promised a “golden age” for the US as he used his inaugural address to unveil sweeping moves to undo Joe Biden’s policies.

Trump said he would declare national emergencies on issues including immigration and energy, giving the new president power to rush through new measures. As he was speaking, the White House said it was withdrawing from the Paris climate accord.

But he stopped short of announcing new tariffs immediately, instead planning to release a memorandum instructing government agencies to re-evaluate America’s trade relations with trading partners including China, Mexico and Canada.

Trump also spoke of his return to the White House as personal vindication, following two assassination attempts, and vowed to reverse a “crisis of trust” he said had engulfed the government.

“I was saved by God to make America great again,” he said, in a speech that included echoes of his dystopian description of “American carnage” in his first inaugural address in 2017.

Our Washington bureau chief James Politi has the full story on Trump’s return to office, plus more news and analysis below:

• ‘He is power’: Billionaires such as Mark Zuckerberg and Jeff Bezos flocked to Trump’s inauguration ceremony, underscoring the president’s deepening ties to the titans of industry.

• Dollar slides: The US currency was on course to post its steepest sell-off since August as Trump stopped short of announcing immediate tariffs.

• Last-minute pardons: Joe Biden issued pre-emptive pardons to Anthony Fauci, Liz Cheney, Mark Milley shortly before relinquishing the presidency to Trump, who has vowed retribution against political foes.

• Can Trump handle the new Republican factions?: The party is united in personal loyalty to the president, but it is now made up of multiple groups with very different agendas.

• Opinion: Trump’s inauguration signalled more of a regime change than an ordinary transfer of power, writes Edward Luce.

Here’s what else we’re keeping tabs on today:

• Economic data: South Korea and Hong Kong report December inflation data.

• Quad meeting: The Trump administration will meet foreign ministers from Japan, India and Australia in Washington. (Politico)

• World Economic Forum: The annual gathering of global elites is under way in the Alpine ski resort of Davos. The FT is also there. Sign up for daily events.

Five more top stories

1. The Bank of Japan is on course to raise interest rates on Friday, according to economists, which would further entrench the normalisation of the country’s monetary policy after years of negative or zero interest rates. But the Japanese central bank will be wary of market volatility this week following Trump’s inauguration.

2. Elon Musk complained about a lack of reciprocity in the US-China tech relationship, a rare criticism from the billionaire on issues sensitive to Beijing after Trump prepared to offer a reprieve to TikTok on a ban in the US. Here’s what the Tesla chief said.

3. Patients who took popular weight loss drugs were less likely to develop Alzheimer’s disease but were more at risk of arthritic, kidney and pancreatic disorders, according to the largest ever study of the medicines’ widening impact. Read more about the findings.

4. Investors in hedge funds have paid out almost half of their profits in fees since the early days of the industry more than half a century ago, new data shows. The figures, which were compiled by LCH Investments and date back to 1969, show how the scale of fees raked in by managers has soared as the industry matured.

5. Europe is set for a resurgence in electric vehicle sales this year with carmakers delivering more than 160 models to the market. But executives warned that profits may fall further because of regulatory costs and more discounts as consumers seek affordable cars.

Interview: Anwar Ibrahim

Anwar Ibrahim, Malaysia’s prime minister, has played down concerns that Donald Trump will usher in a long period of economic turmoil in Asia, arguing that after an “initial shock” the global trading system will continue as before. He also argued that the US has lost ground to China in south-east Asia because of its lack of engagement. Read the full interview.

We’re also reading . . . 

• Step off the quarterly report treadmill: Nicolai Tangen, the chief of Norges Bank Investment Management, argues for less frequent corporate reporting.

• US economy under Trump: A dispersion of economic outcomes at home and abroad risks derailing promising initiatives, writes Mohamed El-Erian.

• Britain’s fragile situation: The government must retain the confidence of its creditors and not adopt policies that raise doubts about its good sense, writes Martin Wolf.

Chart of the day

Donald Trump has threatened the EU with a trade war unless it buys more US oil and gas. But despite Brussels signalling openness to the idea, it has no power to buy — and European countries are importing record volumes of cheaper liquefied natural gas from Russia.

Take a break from the news . . . 

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