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The Trump administration's National Defense Strategy, released Friday evening, takes a softer tone toward China, and calls for deterrence "through strength, not confrontation." The strategy frames migration and narcotics in the Western Hemisphere as greater threats than those posed by foreign adversaries, and prioritizes protecting the U.S homeland, securing its borders, and reinvigorating domestic technology development and manufacturing capability. The strategy identifies North Korea as “a direct military threat to South Korea and Japan,” but also warns that its nuclear ambitions could imperil the U.S.

 

Bloomberg

Le Monde

NBC News

China’s senior-most general is suspected of passing secret information about the country's nuclear weapons program to the US, the Wall Street Journal reports. Zhang Youxia is also accused of accepting bribes for official acts and allegedly forming political cliques and abusing his authority on military decisions. Authorities' investigations into Zhang are part of Chinese leader Xi Jinping’s campaign to root out corruption and disloyalty in the armed forces, which some analysts say marks the most aggressive dismantling of China’s military leadership since the Mao Zedong era.

 

Wall Street Journal

Pension industry leaders and investment chiefs from Finland, Sweden and Denmark have told Reuters that they are increasingly wary of the risks of holding U.S. assets amid U.S. foreign policy uncertainty and White House debt levels that they view as a threat to the dollar, U.S. Treasuries and stocks. "All of this turmoil is raising some questions about how exposed ⁠you should be to the U.S. . . . that is ⁠what our members are professionally assessing," ​said Tom Vile Jensen, deputy director of trade body Insurance and Pensions Denmark.

 

Reuters

As earnings season unfolds, companies are expressing caution due to geopolitical tensions and economic uncertainty. Delta Air Lines and United Airlines highlighted potential impacts on travel demand, while consumer staples like Procter & Gamble and McCormick noted cautious shopper behavior. 3M reported disappointing results, reflecting a challenging macro environment. Despite 80% of S&P 500 companies exceeding expectations, Steve Sosnick, chief strategist at Interactive Brokers, said: "Policy uncertainty absolutely overshadows positive news." Executives face challenges in forecasting as political disruptions continue to shape the economic landscape.

 

Los Angeles Times

U.S. business activity was stable in January, with S&P Global’s Composite PMI edging slightly down to 52.8 from 52.7 in December, indicating modest growth across manufacturing and services. While new orders improved, the labour market stagnated, and business confidence dipped, amid concerns over rising costs and weak exports. Tariffs were widely cited as a major source of inflationary pressure, with firms continuing to face elevated input and output costs. Despite resilient consumer spending and solid GDP growth forecasts, ongoing price concerns and policy uncertainty are weighing on business sentiment.

 

Investing

Reuters

Atlantic Strategic Minerals is exploring plans to establish a rare earths facility in Stoney Creek, Virginia, as part of the U.S. initiative to increase domestic production of essential materials. CEO Michael Scherb, representing the company's owner Appian Capital Advisory, noted that the plant would be located near its current operations, where critical minerals are already being produced as a byproduct. The move aligns with the growing emphasis on securing a reliable supply chain for rare earth elements in the U.S.

 

Bloomberg

Under Armour is investigating a data breach that compromised 72m email addresses and personal information, including names and birthdates. The breach reportedly occurred late last year. The company said: "We have no evidence to suggest this issue has affected UA.com or systems used to process payments or store customer passwords." Under Armour has reassured customers that sensitive information has not been compromised.

 

US News and World Report

The Securities and Exchange Commission (SEC) has approved a reduced budget of $362.1m for the Public Company Accounting Oversight Board (PCAOB) for 2026, marking a 9.4% decrease from last year's budget of $399.7m. This budget cut includes a 42% reduction in salaries for PCAOB board members and chair. SEC chair Paul Atkins emphasized the need for fiscal discipline, saying: "Both during my time as a commissioner and now as chairman, I have recognized . . . the importance of driving improvements in audit quality." The budget reduction follows a request for the resignation of former PCAOB chair Erica Williams and aims to ensure that the PCAOB remains effective while managing its resources responsibly. Despite the cuts, Mr. Atkins and SEC chief accountant Kurt Hohl are planning significant changes to enhance the PCAOB's inspection processes. Hohl remarked: "This year's budget decrease represents progress," as he highlighted ongoing initiatives for future improvements.

 

U.S. News

US News and World Report

Accounting Today

The U.S. Equal Employment Opportunity Commission’s newly-established Republican majority has rescinded legal guidance that had strengthened protections against unlawful harassment for LGBTQ workers and women who have abortions. EEOC Chair Andrea Lucas emphasized that the commission’s decision “will not leave a void where employers are free to harass wherever they see fit, leaving a trail of victims in their wake.” Recently-installed Commissioner Brittany Panuccio added that private sector resources on anti-harassment law would fill any gaps. But critics said the move could discourage employers from preventing harassment and leave workers without recourse when they face it. "This action is likely to increase the amount of harassment that occurs in workplaces across the country," a dozen former EEOC and U.S. Department of Labor officials said in a joint statement.

 

AP News

Reuters

A recent analysis by the Sierra Club reveals that the majority of U.S. pension funds lack significant commitments to net-zero targets or credible climate investment policies. Out of 29 funds reviewed, only three received high marks for their net-zero commitments, while just five established climate investment targets by the end of last year, including major funds like the California Public Employees’ Retirement System. The findings underscore a notable deficit in climate-focused investment strategies within the pension sector.

 

Bloomberg

We Need Diverse Books (WNDB) has launched the Unbanned Book Network to address the increasing number of book bans in U.S. schools and libraries. The initiative aims to donate books by banned authors and appoint Author Ambassadors to support school districts facing censorship. WNDB chief executive Dhonielle Clayton stated: "We're not only facing an ongoing literacy crisis in the U.S., we're also battling increased rates of censorship, which is infringing on our students' right to read." The program will initially target twenty under-resourced schools in states like Florida and Texas, where bans are most prevalent. This effort is part of a broader response to the surge in book bans, which has been documented by organizations such as PEN America and the American Library Association.

 

U.S. News