The article explores the Trump administration’s growing embrace of cryptocurrency, including the creation of departments named after meme coins and a key executive order highlighting digital assets’ role in the economy. Previously cautious, the Biden administration is now facilitating closer ties between traditional finance and crypto, with regulatory changes supporting crypto adoption by banks. However, tensions remain, particularly over access to the Federal Reserve’s payment infrastructure, which traditional banks defend while crypto firms seek greater access. Despite the opportunities digital assets present, concerns over volatility and risks to financial stability persist, as shown by the collapse of crypto-focused banks in 2023.

The article examines the growing trend of pay transparency, driven by concerns over wage inequality and new laws requiring companies to disclose pay gaps. While transparency has helped narrow gender pay gaps, it often leads to suppressed wages rather than pay increases. It can motivate employees and improve job market clarity, but can also harm productivity, as seen in cases like ice hockey, where players shifted focus to more highly rewarded tasks. Overall, while transparency can promote fairness, it can also create unintended negative effects on morale and performance.

OpenAI’s recent release of its o3 AI model has sparked both excitement and scepticism. While it represents a major leap in AI’s reasoning capabilities, its higher costs - due to the increased processing power required for deeper “thinking” - are raising questions about the economics of AI. Unlike previous models, o3 requires more computing power for inference, making it much more expensive to run. This shift challenges the traditional low-cost, high-volume model of digital services, and could reshape the industry’s economics, benefitting chipmakers like Nvidia and cloud providers.

Despite its technical advancements, OpenAI faces stiff competition, with rivals such as Google and open-source models emerging. High costs mean AI models will need to offer substantial value to justify their prices, and models like o3 may support productivity gains for businesses. However, as the AI market moves towards an oligopoly with multiple players, OpenAI’s business model is still unproven.

China’s manufacturing activity contracted in January, with the official purchasing managers’ index (PMI) falling to 49.1 from 50.1 in December, ending a three-month period of expansion. The slowdown was attributed to factories suspending operations ahead of the Lunar New Year holiday, which began on Tuesday. Both production and demand weakened, with the production subindex dropping to 49.8 and new export orders falling to their lowest level since March 2024. Economists also noted weaker external demand as a potential factor.

Additionally, industrial profits fell by 3.3% in 2024, worsening from the previous year, although there was a rebound in December due to government stimulus measures. China’s non-manufacturing PMI, which includes services and construction, also declined, with services activity dropping and construction affected by the holiday and cold weather.

Ingolstadt, Germany, is grappling with a severe economic downturn, primarily due to a sharp decline in revenue from Audi, the city’s largest employer. Audi’s operating profits plummeted 91% in 2024, and its business in China has shrunk significantly, leaving the city, once thriving from the carmaker’s presence, facing a €100 million budget shortfall. German manufacturers, especially in the auto industry, are struggling amid rising energy costs, competition from Chinese firms, and global economic instability, including the threat of US tariffs. Job cuts in the sector are expected to grow, and the broader German economy, which has stagnated since 2019, is at risk of further decline.

Local businesses, heavily reliant on Audi’s workforce, are feeling the pressure. The city’s mayor, Christian Scharpf, has introduced austerity measures to mitigate the financial strain, while attempts to diversify the economy with new tech ventures have thus far been limited. The situation mirrors broader concerns in Germany about the future of its export-driven economic model, with few viable alternative strategies being discussed. The country is facing rising unemployment, reduced industrial output, and a lack of investment in new sectors like technology, leaving its economy vulnerable.

Venture capitalists in Silicon Valley are shifting their focus to traditionally mundane sectors such as accounting, customer service, and property management, aiming to automate administrative tasks with artificial intelligence (AI). These sectors, often overlooked by investors, are now attracting significant funding, with startups using AI tools to enhance profitability. Many of these ventures also employ a “roll-up” strategy, where multiple smaller businesses are merged to reduce costs and increase scale. Companies like Long Lake Management Holdings and Crete Professionals Alliance have raised hundreds of millions and acquired numerous businesses to implement AI solutions. This trend, which is gaining momentum despite a broader slowdown in startup investments, reflects growing interest in applying AI beyond tech industries. The strategy contrasts with traditional buyouts, as these startups focus on founders maintaining majority ownership without relying on debt.

The Trump administration announced it was pausing punitive tariffs against Colombia after the country agreed to allow US military flights deporting migrants to enter. The dispute began when Colombia refused entry to two US aircraft carrying deportees, prompting Washington to impose 25% tariffs on Colombian imports. Colombia retaliated with threats of reciprocal tariffs, and tensions flared on social media between Presidents Trump and Petro. However, the situation was defused when Colombia agreed to US terms, although visa sanctions on Colombian officials remain in place. Colombian officials indicated they would work to ensure the dignified treatment of deported citizens, while President Petro called for a regional meeting on migration. The broader context includes Trump’s push for mass deportations, which has strained relations with various Latin American countries.

Singapore’s central bank, the Monetary Authority of Singapore (MAS), has eased its monetary policy for the first time in four years, citing rising expectations of trade turmoil following Donald Trump’s potential return to the US presidency and moderating domestic inflation. MAS has slowed the appreciation of the Singapore dollar against a basket of currencies, in response to increased global economic uncertainty and anticipated trade friction. This move, which reduces borrowing costs in the trade-dependent economy, follows inflation data showing a core consumer price rise of 1.8% in December. MAS also revised its 2025 inflation forecast down to between 1% and 2%. Singapore’s GDP growth is expected to slow from 4% in 2024 to between 1% and 3% this year, with the central bank highlighting external uncertainties as a key risk to the economy.

The US dollar is on track for its largest weekly decline in over a year, falling by 1.8% after President Donald Trump suggested he might adopt a softer stance on tariffs against China and called for lower interest rates. The dollar slid 0.7% against a basket of currencies on Friday, while the euro and sterling saw significant gains, with the euro rising 0.9% to $1.051, its best weekly performance since November 2022. The Mexican peso also strengthened, benefiting from reduced tariff fears. Trump’s comments have eased investor concerns about trade disruptions, but uncertainty remains regarding future tariff policies. The Federal Reserve’s response to Trump’s pressure, particularly regarding interest rates, is a key concern for investors, with some expecting further rate cuts later this year. However, some analysts believe the Fed will resist lowering rates, and the dollar may continue its recent rally. Asian currencies, including the Japanese yen and Chinese yuan, also gained ground against the dollar following Trump’s remarks.

The UK government is facing increasing pressure to revitalise the economy, with warnings from businesses about potential job cuts and price hikes, while millions of families expect their financial situation to worsen. The Confederation of British Industry (CBI) reported that private sector firms are struggling with the impact of last October’s budget, which included a £25bn increase in employer national insurance contributions and a rise in the minimum wage. Business activity has stagnated since mid-2022, and the CBI urged the government to take stronger action to stimulate growth.

Meanwhile, the Bank of England is expected to make limited interest rate cuts, as inflation pressures resurface despite stagnating economic activity. A survey by debt charity StepChange revealed that 41% of people believe their finances will worsen in the next year, citing high energy bills and the cost of living as key factors.

With UK-listed companies issuing a significant number of profit warnings last year, economic growth has stalled, and inflation is above the Bank of England’s target. Experts are calling for more support to help businesses and households navigate ongoing financial challenges.

The mental health crisis in Jordan’s Jerash refugee camp has worsened since Israel’s military offensive in Gaza in October 2023, with alarming rates of severe depression, anxiety, and insomnia reported among its inhabitants. The camp, which has housed Palestinians displaced by the 1967 Arab-Israeli war, is home to over 40,000 people, many of whom have close family in Gaza. The constant stream of distressing news and the trauma of the conflict have caused widespread psychological suffering. Despite the recent ceasefire, the community remains devastated, with many unable to find relief. Mental health professionals in the camp report high demand for support, though stigma and limited resources hinder access to care. Personal stories from residents, such as those of Mokhtar Yahya and Yousef Jaafar, highlight the deep emotional toll and uncertainty still felt by the community. While some find solace in traditional practices like tatreez embroidery, the ongoing trauma and displacement make it difficult to feel hopeful about the future.

Every year, the world loses languages at an increasing rate, with one dying every 40 days. The UN predicts that many of the world’s 7,000 languages will disappear by the end of the century, with some languages nearing extinction due to lack of use, particularly in formal settings. However, a quiet movement to preserve these languages is gaining momentum. Activists like Tochi Precious in Nigeria and Amrit Sufi in India are documenting endangered languages, such as Igbo and Angika, through modern tools like video recordings and online platforms, including Wikipedia. These efforts are vital for preserving not only the language but also the associated culture and history. The Rohingya people, facing displacement, have even developed a written version of their oral language to safeguard their heritage. Despite challenges, such as the stigma around local languages and the dominance of global languages like English, there is hope that community-led efforts can help languages thrive again.