Semafor Flagship-Asia Morning Edition.

 "US federal fund freeze, Chat GPT for the government, Nvidia rebounds somewhat."

Views expressed in this geopolitical news and analysis are those of the reporters and correspondents.  Accessed on 29 January 2025, 0114 UTC.

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Russ Roberts (https://trendsingeopolitics.blogspot.com.

ABU DHABI  ULAANBAATAR  QUEZON CITY JANUARY 29, 2025 READ ON THE WEB Flagship Asia Morning Edition Sign up for our free newsletters→   The World Today US federal funding freeze ChatGPT for the government Nvidia rebounds, somewhat Trump pushes India on trade Low-cost EVs coming to US MidEast pushes on renewables China’s creative property deals COVID lessons, 5 years on Second closer to Doomsday New champ sumo wrestler A headless statue discovered in some garbage is likely an Ancient Greek work. ↓ 1 Trump funding order upends norms Kevin Lamarque/Reuters US President Donald Trump’s order to pause almost all federal grants and loans immediately triggered chaos in Washington, Democratic pushback, and court challenges. The directive threatens to disrupt education, housing, health, and disaster relief programs that depend on federal funding; some states reported difficulty Tuesday accessing federal Medicaid health insurance funds. The White House said it was necessary to review government spending. The move, which follows last week’s suspension of foreign aid, shows Trump’s willingness to test the limits of presidential power, including over funding already authorized by Congress, experts said. The fight could end up in front of the Supreme Court. ↓ 2 OpenAI deepens US government ties Carlos Barria/Reuters OpenAI unveiled a version of its popular chatbot designed specifically for the US government. “ChatGPT Gov” touts heightened cybersecurity protections so federal employees can feed it sensitive information, according to OpenAI. The release marks a deepening of ties between OpenAI and the new administration: CEO Sam Altman attended President Donald Trump’s inauguration and last week joined other tech moguls at the White House to pledge $500 billion in AI infrastructure investment. Another OpenAI executive doubled down on the message that it’s important “that the US wins in AI… We want to stay ahead” after the release of Chinese startup DeepSeek’s latest chatbot, which Trump said was a “wake-up call” for US tech. ↓ 3 Nvidia claws back some losses Chalinee Thirasupa/Reuters Nvidia stock rebounded Tuesday, but remained far from recovering the loss triggered by the emergence of Chinese AI startup DeepSeek. The US chipmaker shed roughly $600 billion in market cap Monday as investors questioned whether more powerful and expensive chips are really needed to train the most advanced AI models. Before the rout, tech leaders had already begun expressing concerns that the industry’s strategy of building huge models on ever-larger, pricier computers was at risk, because companies were running out of training data. That “was already casting a shadow over Nvidia’s business,” The New York Times noted. Others believe the market overreacted: Intel’s ex-CEO said he bought Nvidia shares during the dip, adding that “lowering the cost of AI will expand the market.” ↓ 4 India feels Trump trade pressure US President Donald Trump pushed India to buy more American-made weapons to address a longstanding trade surplus. Trump is on good terms with Prime Minister Narendra Modi — even as he’s criticized India’s tariffs — and said Modi would visit Washington next month. New Delhi, which is looking to diversify its weapons suppliers beyond Russia, has already signaled deference to the Trump administration, including on immigration and energy deals, and a defense deal could be added to the list. With Trump’s reelection, Washington and New Delhi have a unique opportunity to strike a fresh trade agreement, two experts argued in Foreign Policy: Both countries’ leaders want to expand their regional influence, challenge China, and are “drawn to high-profile initiatives.” ↓ 5 More low-cost EVs coming to US Automakers are rolling out more low-cost electric vehicles in the US. Honda reportedly plans to release a new EV priced under $30,000 by 2026, while General Motors is to launch one this year. EV adoption in the US has been lukewarm compared to countries like China. But as US President Donald Trump moves to eliminate tax credits for EVs, smaller price tags could give the models an advantage over traditional cars, analysts said. All eyes this week are on Tesla: The company’s stock has soared since CEO Elon Musk backed Trump, but after sales fell last year, investors will be watching closely for details on Tesla’s own — much-vaunted — lower-priced model when it reports quarterly earnings Wednesday. ↓ 6 Gulf drives regional renewables push Ben Job/Reuters The Middle East has become the world’s fastest-growing renewable energy market outside of China, with the Gulf driving the change. The United Arab Emirates’ state-owned renewables company recently announced plans for a $6 billion solar plant complete with vast battery storage that will provide enough reliable energy to power some 700,000 homes even when the Sun isn’t shining. Saudi Arabia’s oil company Aramco, meanwhile, said it would start mining lithium — a major battery component. A potential stumbling block is the countries’ grids, an energy analyst told the Financial Times: The oil-rich Gulf built its power grids for oil and gas, and not for renewable sources. “There’s a question mark over how they overcome that obstacle.” ↓ 7 Chinese developers get creative Aly Song/Reuters China’s housing developers are getting creative to entice potential buyers in the face of a historic property slump. One firm advertised a minimum down payment of just 9.9 yuan (about $1.40), mirroring 9.9-yuan deals that Chinese fast food brands have embraced to encourage spending, Nikkei Asia reported. Other developers are offering free iPhones or travel funds to tourism hotspots. Many of the promotions cropped up just ahead of the Lunar New Year holiday, during which many Chinese travel to their family homes — where, developers hope, they might want to buy property. Housing demand is shifting toward existing units in megacities, analysts say — a worrying trend for developers of new homes in smaller cities that could ultimately deepen China’s broader economic struggles. ↓ Plug With so many financial newsletters competing for attention, it’s hard to find one that makes sense of the market. That’s why more than one million savvy readers trust The Daily Upside for their daily dose of finance, economics, and investing insights. Created by Wall Street insiders, The Daily Upside delivers clear, actionable analysis — straight to your inbox. Subscribe for free today. ↓ 8 COVID still offers lessons Stephane Mahe/Reuters COVID-19 is still revealing new facts about the immune system, five years after the first outbreak. The sudden emergence of the virus gave scientists a rare opportunity to study the human body’s reaction to a pathogen it had never encountered before over time, across a huge and diverse sample of people. Among the insights gleaned are a greater appreciation of the importance of T cells, which provide longer-term protection to disease than the better-understood antibodies; the body’s innate immune “alarm” system; and the role of the nose in detecting and responding to invasive pathogens. Scientists are still sifting through the huge troves of data yielded by the pandemic: “It’s still very informative to learn from,” one immunologist told Nature. ↓ 9 Doomsday Clock ticks closer to midnight Nobel Peace Prize laureate Juan Manuel Santos (left) stands next to the Doomsday Clock. The Bulletin of Atomic Scientists Humanity is closer to absolute catastrophe than ever before, according to an international group of scientists. The Doomsday Clock — a metaphorical device used to measure threats to humanity since 1947 — moved one second forward, to 89 seconds to midnight, the Bulletin of the Atomic Scientists announced. US President Donald Trump’s overtures to Russia and China on nuclear arms controls, however, may be a cause for cautious optimism, one of the group’s board members and a Nobel Peace Prize laureate said: “There is a big chance that this time next year, we will be moving the hands of the clock back.” ↓ 10 Sumo anoints a new champion TSUBAME98/Wikimedia Commons A Mongolian sumo wrestler is to be awarded the sport’s highest rank, the first such promotion in more than three years and only the 74th in sumo’s centuries-long history. The sport’s governing body unanimously voted to promote Hoshoryu Tomokatsu to yokozuna after he won his second grand tournament Sunday. Yokozunas have been the face of sumo since at least 1789: The word means “horizontal rope” and refers to a ceremonial belt worn around the waist. The most recent wrestler to hold the title retired in November, leaving the sumo world without a champion: Until Hoshoryu’s promotion, pundits worried March’s grand tournament in March would have no yokozuna present — something that last happened in 1993. ↓ Flagging Jan. 29: The US, Canada, and Brazil central banks make interest rate announcements. The US Senate begins confirmation hearings for Health and Human Services Secretary nominee Robert F. Kennedy Jr. Microsoft reports quarterly earnings. ↓ Curio Hellenic Police A 2,000 year-old statue of a woman was discovered in the garbage in the Greek city of Thessaloniki. The sculpture, which is missing its head and arms, is believed to date to the Hellenistic era, which lasted from 323 to 31 BC. One classicist told The Washington Post that the statue’s draped clothing and marble composition suggested it may have come from a temple or another religious site: “It might be a gift that someone has given to the god either to thank them for something or in the hopes of getting some kind of grant.” Thessaloniki has seen a trove of ancient artifacts uncovered as a result of the city’s new subway system, which opened in November and took nearly 20 years to complete. ↓ Semafor Spotlight Kevin Lamarque, Andrew Kelly/Reuters. Graphic: Joey Pfeifer/Semafor The Biden administration held far fewer meetings with corporate executives compared with the first Trump administration, a Semafor analysis found. According to public calendars, former Treasury Secretary Steve Mnuchin logged three times as many meetings and official conversations as his successor Janet Yellen in the first three years of their respective tenures, Rachyl Jones and Liz Hoffman reported. Such chilliness may help explain why many corporate leaders rallied to support Trump during the 2024 election. For more on the Trump administration’s approach to corporate executives, subscribe to Semafor Business. → You’re receiving this email because you signed up for newsletters from Semafor. Manage your preferences or unsubscribe here.Read our privacy policy Was this email forwarded to you? Sign up now to get Semafor in your inbox. Semafor, Inc. 228 Park Ave S, PMB 59081, New York, NY, 10003-1502, USA