Market Reactions - The announcement of Kevin Warsh as the next Federal Reserve Chair led to initial market volatility, with the Dow Jones Industrial Average (DJIA) dropping 139.16 points (0.28%) before recovering to close up 55.96 points (0.1%) at 49,071.56 [3][11] - The S&P 500 (SPX) experienced fluctuations, closing down 0.4% at 6,939.03 after earlier dipping as much as 1.1% [3][11] - The NASDAQ Composite (IXIC) ended the day down 0.7% at 23,685.12, marking a mixed market response overall [3][11] Commodity and Bond Market Impact - Gold prices fell over 4% to $5,115.60, while silver dropped nearly 13%, indicating a shift in investor sentiment [4] - The 10-year Treasury yield increased to 4.25% from 4.24%, reflecting changing bond market dynamics [4] Trade Policy Developments - President Trump's executive order on January 30, 2026, imposed tariffs on nations supplying oil to Cuba, causing immediate fuel shortages in Havana and raising concerns about a humanitarian crisis [7][8] - The price of WTI Crude Oil saw a slight decrease of 0.29% to $65.27, with potential long-term risk premiums of 8-15% anticipated due to supply constraints [8] Aviation Sector Reactions - The threat of a 50% tariff on Canadian-made aircraft, particularly affecting Bombardier, led to a 9% drop in Bombardier shares on January 30, 2026 [10] - The aviation sector reacted negatively to the announcement, with experts expressing skepticism about the tariffs' implementation but acknowledging the significant financial implications [10] Overall Market Trends - Despite the tumultuous events, the DJIA recorded its ninth consecutive month of gains, while the SPX ended January with its eighth positive month in nine [11] - The IXIC, however, closed lower for the month, breaking a seven-month winning streak, indicating varied performance across indices [11] - Trading volume on January 29, 2026, was notably high at 23.36 billion shares, suggesting active investor engagement amid policy uncertainty [12]

Trump 2.0 has shown this administration’s priorities are interest, tariff and tax rates, with exchange rates an afterthought. https://t.co/e2UCSTDWi7 ...

It’s not just private jets that would be affected if Trump follows through with his threat to tariff and decertify Canadian planes. Read more in the Canada Daily newsletter. https://t.co/zIE0RPWYFi ...

From @WSJopinion: It was the tariff that made America strong and powerful in generations past, and it is tariffs that are making our country stronger, safer and richer than ever before, writes @realDonaldTrumphttps://t.co/7av5ciP7pW ...

Chinese whisky tariff cut to come into force on Monday https://t.co/nlcqgc0axa ...

Donald Trump says he would charge a 50% tariff on aircraft from Canada and decertify all planes made there until Ottawa agreed to approve jets made by US firm Gulfstream https://t.co/sHCcALEaAZ ...

Donald Trump says he would charge a 50% tariff on aircraft from Canada and decertify all planes made there until Ottawa agreed to approve jets made by US firm Gulfstream https://t.co/shmgpM3z9T ...

Ivan on Tech is feeling the Trump fatigue. Trump was supposed to be pro-peace and pro-business. Instead? Chaos. New day, new tariff, new threats. His take: if Democrats take the House or Senate in midterms, markets might actually love it. Money likes peace and stability. https://t.co/61LhK9UWNK ...

Trade Relations with China and Canada - China plans to export approximately 50,000 cheap cars to Canada, which could potentially enter the US market under the USMCA agreement [2] - The US trade policy will impose hefty tariffs on these vehicles if they are of Chinese origin, with the president considering a 100% tariff [3][4] - The US has provisions in the USMCA that could allow for Canada to be excluded from the deal if it engages in a comprehensive trade agreement with China [5] Trade Deal between India and the European Union - The EU is seeking to establish a trade deal with India as a response to US trade policies that prioritize domestic production [7] - India is expected to benefit significantly from this deal, gaining more market access to Europe and potentially additional immigration rights for Indian workers [8] - The EU's need for alternative markets is highlighted by their dependency on trade, especially as they face challenges in exporting to the US [8] US-EU Trade Deal Update - A framework for a US-EU trade deal was agreed upon, which includes $600 billion in investment and a commitment to reduce tariffs on industrial goods to zero [12][13] - The European Parliament has paused the bill to lower tariffs, but discussions are ongoing, and there is optimism about passing the bill soon [14][15] - Despite some unresolved issues, the US has modified its tariffs for Europe, and there is a positive outlook for the trade deal's implementation [16] South Korea Trade Relations - South Korea has not fulfilled its commitments under a trade deal, leading to the imposition of additional tariffs by the US [17][18] - The US has reduced tariffs for South Korea from 25% to 15% as a gesture of goodwill, but South Korea has not executed its part of the agreement [18][19] - The trade deficit with South Korea has increased significantly, from $25 billion in 2020 to $65 billion, indicating an unsustainable economic imbalance [22] Currency Practices and Trade Competitiveness - There is skepticism regarding the currency practices of countries like China and India, with concerns that they may deliberately weaken their currencies to enhance export competitiveness [24][25] - The Chinese central bank's control over currency valuation is acknowledged, and it is suggested that some countries may be engaging in practices to weaken their currencies against the US dollar [25]

Few believe Mark Carney can attract the investment he needs to build new infrastructure unless Canada continues having low-tariff or no-tariff access to the American market. The middle power must, therefore, find an arrangement with the great one next door https://t.co/X62CI0q3aC ...