Donald Trump’s 2025 deportation plans, targeting millions of unauthorised immigrants, could have significant economic consequences. Many of these workers are essential in sectors like agriculture, construction, and services. Deporting them may lead to job losses for native workers, decreased production, and higher costs, particularly in agriculture and housing, where labour shortages are already a concern.

While deportations might reduce public benefits usage, they also shrink the tax base, potentially worsening federal deficits. The removal of unauthorised workers could ultimately lead to higher consumer prices and strain public finances, making the economic impact far-reaching despite the intended benefits.

Chinese firms are increasingly investing abroad, with a record $177bn spent in the year to June 2023, primarily in emerging markets. This shift, driven by rising domestic costs and US tariffs, sees firms focusing on sectors like electric vehicles and chips. However, concerns are growing in host countries, where Chinese firms often import workers rather than hiring locally, and limit technology sharing.

This trend is creating trade imbalances and tensions, particularly in Southeast Asia, where local governments are implementing policies to counteract these practices. While China’s government supports some offshoring, it worries about domestic industry being hollowed out and is seeking to balance global expansion with maintaining economic stability at home.

Amid the war in Ukraine and Western sanctions, Russia is investing $70bn in infrastructure to strengthen trade with Asia and the Middle East. This includes expanding transport routes like the International North-South Transport Corridor (INSTC) and boosting trade with China, Iran, and India.

However, the plan faces hurdles such as inadequate infrastructure, limited private investment, political tensions, and sanctions that complicate progress. Despite efforts to increase trade, Russia’s economic growth depends on favourable deals with China and India, with uncertain demand for goods along these new routes.

Passenger traffic at London’s Heathrow Airport reached a record in 2024, helped by a bumper December and holiday travel season. Heathrow said Monday that 83.9 million passengers travelled through the airport in 2024, a 5.9% on-year increase and 3 million more than the previous record of 2019. About 7.1 million passengers passed through the airport for the month of December, a 5.6% increase from December 2023, the airport said. “On what is normally one of the quietest days for travel, Christmas Day also saw a record 160k passengers, a 13% increase on the previous record from 2023,” it added. New York, Los Angeles, Dublin and Madrid were among passengers’ top destinations in 2024, according to Heathrow.
Heathrow said this year was off to a strong start and the airport forecasts 84.2 million passengers over 2025.

This week, key economic data will shape market expectations. In the U.S., December inflation figures could alter rate cut forecasts, while jobs and retail data will also be crucial. The Eurozone will focus on ECB meeting minutes and inflation data, while in the UK, inflation and GDP figures will be scrutinised amidst rising bond yields.

In Asia, China’s growth data will reveal if it hit its targets, and Japan’s economic progress and potential rate hikes will be in focus. South Korea is expected to cut rates, while Indonesia may pause its rate changes to stabilise the rupiah.

Malaysia’s GDP growth is expected to slow, and India’s inflation data will impact rate cut speculation. Singapore’s export figures will be watched for trade strength.

Overall, global markets will monitor inflation, growth data, and central bank moves for insights into future economic trends.

As iPhones capture larger photos and videos and software updates grow bigger, managing storage becomes crucial. The latest iOS 18.2 update requires 7GB of space, especially for devices with Apple Intelligence, which can’t be cleared even if you disable the feature. To free up space, start by going to Settings > General > iPhone Storage to identify storage hogs and delete large apps or clear cached data.

The Photos app is a major storage culprit, but you can reduce its size by merging duplicates, deleting unwanted photos, or backing up to Google Photos or Amazon Photos for more space. Additional tips include compressing photos in Camera settings, auto-deleting old messages, and offloading unused apps. While these steps delay storage creep, regular management is key to maintaining enough free space.

El Salvador’s President Nayib Bukele has transformed the country from one of the most violent to a safer, economically improving nation, attracting foreign investment and securing IMF loans. His crackdown on crime, including imprisoning over 83,000 people, has led to both praise for reducing violence and criticism for human rights abuses and authoritarian rule. Despite high approval ratings, Bukele’s centralisation of power and disregard for civil liberties raise concerns, with some comparing him to Latin American dictators. While some Western governments engage with him due to his success in reducing crime, others question the long-term implications for democracy.

Asset managers, overseeing trillions of dollars, are advising clients to adopt a defensive investment stance, emphasising bonds due to rising equity prices and the Federal Reserve’s reduced likelihood of cutting interest rates. Vanguard has revised its 2025 outlook, recommending investors allocate 38% of portfolios to stocks and the rest to fixed income, down from previous years. This shift is partly due to high US equity valuations, with the S&P 500’s price-to-earnings ratio reaching nearly 30. Invesco and T. Rowe Price also advocate for increased bond exposure and focus on defensive sectors. Experts predict lower stock returns over the next decade, given elevated valuations, and caution that stock performance may not match past highs.

California’s wildfires are predicted to become the costliest disaster in US history, with Governor Gavin Newsom warning of escalating costs and fatalities. Over 40,000 acres have burned, and the death toll rose to 24, with heavy winds exacerbating the fires. Tens of thousands remain under evacuation orders, and the fires are threatening upscale areas. Newsom faced criticism from President-elect Donald Trump, who blamed him for water mismanagement, though Newsom denied these claims. The fires have already destroyed thousands of structures, with economic losses estimated between $135bn and $150bn. The federal government, led by President Joe Biden, has pledged full disaster funding, while Trump has yet to respond. Thousands of firefighters are working to contain the largest blazes, with military support on standby.

A Belgian court ruling has found the country guilty of crimes against humanity for the systematic kidnapping of mixed-race children during its colonial rule over Congo, Rwanda, and Burundi. The court’s decision, which awarded damages to five women, marks a significant step towards justice for the victims, who were forcibly separated from their mothers between 1948 and 1953. The ruling could pave the way for broader reparations, though Belgium has resisted calls for financial compensation, unlike countries like Australia and Canada. The case also highlights the enduring pain of the victims, many of whom continue to suffer from the loss of identity and family connections. While the Belgian government has not yet decided its response, the judgment is seen as a turning point for future claims and greater recognition of the atrocities.

South Korea’s suspended president, Yoon Suk Yeol, will not attend the first hearing of his impeachment trial next week due to safety concerns, according to his lawyer. Yoon, who was impeached last month following a failed martial law declaration, has been in seclusion under heavy guard. The constitutional court will decide on his impeachment between 14 January and 4 February, with the trial proceeding in his absence if he does not appear. Investigators are also preparing to arrest Yoon on insurrection charges related to his martial law attempt, which could lead to prison or even the death penalty. Meanwhile, Yoon’s ruling party, the People Power party, has seen a rise in approval ratings amid the ongoing crisis.

In Queensland, thousands of rainbow lorikeets and hundreds of flying foxes have been hospitalised due to a mysterious paralysis syndrome affecting their ability to fly, swallow, and breathe. The condition, which has been present since 2012, sees seasonal spikes, particularly in December and January. In 2024, over 8,000 lorikeets and 1,079 flying foxes were admitted to wildlife hospitals. The syndrome causes hind leg and flight paralysis, and severely affected animals can suffer from dehydration or suffocation. While the cause remains unknown, scientists suggest it may be linked to a naturally occurring toxin, possibly botulinum toxin. Wildlife experts are working to identify the exact cause, with some cases requiring long-term care for recovery.