1. Trump signs updated accord to replace NAFTA
President Trump signed the U.S.-Mexico-Canada (USMCA) trade pact on Wednesday in a White House ceremony with representatives from Canada and Mexico and about 400 other guests. The White House declined to invite any of the House Democrats who helped secure Trump his biggest trade deal. Mexico's parliament has ratified the deal, as has Congress, but Canada needs to approve it before it takes effect, likely in a few months. "The White House hasn't invited House Democrats to their USMCA signing ceremony," House Speaker Nancy Pelosi's (D-Calif.) office said in a statement. "But we'll be well represented in the huge changes to the original USMCA draft that Democrats wrested out of the administration on labor, prescription drugs, environment and enforcement mechanisms."
2. Fed holds interest rates firm, as expected
The Federal Reserve said Wednesday that it was holding interest rates steady as moderate economic growth and strong job gains continued. The move was widely expected. "We believe the current stance of monetary policy is appropriate to support sustained economic growth, a strong labor market, and inflation returning to our symmetric 2 percent objective," Fed Chair Jerome Powell said following the central bank's two-day policy meeting, its first in 2020. The Fed last year cut rates three times, but President Trump has accused Fed leaders of holding back growth by failing to reduce rates faster and deeper. Powell also said the Fed was "very carefully monitoring" the possibility of economic fallout from the coronavirus outbreak that started in China.
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3. Stocks fall, airlines suspend China flights as coronavirus continues to spread
U.S. stock index futures dropped sharply early Thursday on mounting fears of economic damage from China's quickly spreading coronavirus outbreak. A growing number of foreign airlines canceled flights to and from mainland China on Wednesday due to the rapidly spreading coronavirus outbreak that began in the Chinese city of Wuhan. British Airways, Seoul Air, and Indonesia's Lion Air suspended all flights to China. American Airlines halted service from Los Angeles to Shanghai and Beijing. United Airlines, Air Canada, Hong Kong's Cathay Pacific, and other airlines also cut back on flights due to falling demand and health fears as the death toll from the flu-like virus surpassed 170 people, with nearly 6,000 cases in China and several thousand more in 15 other countries.
4. Boeing reports rare annual loss as 737 Max losses mount
Boeing on Wednesday reported its first annual loss in more than two decades. The aircraft-maker has faced more than $18 billion in costs associated with the effort to fix Boeing's 737 Max jets, which have been grounded since two deadly crashes. The company's new CEO, David Calhoun, said he expected regulators to certify the plane to return to operation by mid-year. He said the company also has to repair a reputation damaged by its former leadership's failure to disclose internal communications that questioned 737 Max safety. "I have to restore trust, confidence, and faith in the Boeing Co.," he said to Wall Street analysts. Boeing's revenue dropped by 37 percent in the fourth quarter alone due to the 737 Max's grounding.
5. EU lawmakers approve Brexit terms
European Union lawmakers on Wednesday approved Britain's exit from the trading bloc in a final vote. The reluctant approval by all 28 EU countries paved the way for the U.K. to leave on Jan. 31. "We will always love you and we will never be far," said EU Commission President Ursula von der Leyen after the vote. Britain's exit on Friday after 47 years in the EU will mark the first time a member nation has left. "That's it. It's all over," said Nigel Farage, who helped lead the Brexit campaign. EU member nations said they feared talks on a new trade deal with Britain could collapse later this year, which could lead to a chaotic divorce.
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