BitGou: Thursday Morning Briefing: Trump pulls back from more military action in Iran crisis, promises new sanctions

U.S.

President Donald Trump has stepped back from new military action against Iran after its missile strikes on Iraqi bases housing U.S. troops caused no casualties but he told Iran he would tighten already crippling U.S. sanctions. The tit-for-tat military action, after months of rising tension since the United States withdrew in 2018 from Iran’s nuclear pact with world powers, had stoked global concerns that the Middle East was heading towards another war. But both sides drew back from the brink, while Arab and other international leaders called for restraint.

A Mexican asylum-seeker slit his own throat on a bridge across the Rio Grande after being denied entry into the United States, two Mexican security officials said. The man, who has not been identified, tried to enter the United States at the Pharr–Reynosa International Bridge between the Mexican border city of Reynosa and Pharr, Texas.

More than half of Puerto Rico’s 3 million people remained without power and thousands slept outdoors after earthquakes toppled homes on the Caribbean island and raised fears more could collapse. Tuesday’s quakes, including the most powerful one to strike the U.S. territory in 102 years, killed at least one person and destroyed or damaged about 300 homes. A state of emergency was declared.

World

Australian authorities urged another mass evacuation across the country’s heavily populated southeast as a return of hot weather fanned huge bushfires threatening several towns and communities. Australia’s weather agency sees no sign of cooler weather or significant rainfall in the next few months, an unwelcome forecast for authorities who have warned that only a large downpour will halt bushfires sweeping across the country.

A Ukrainian airliner was on fire immediately before it crashed southwest of Tehran, killing all 176 on board, according to an initial report by Iranian investigators. The Ukrainian International Airlines Boeing 737-800, flying to Kiev crashed shortly after taking off on Wednesday from Tehran’s Imam Khomeini airport. The report by Iran’s civil aviation organisation cited witnesses on the ground and in a passing aircraft flying at high altitude as saying the jet was on fire while still aloft.

Business

Japan’s justice minister launched a rare and forceful public takedown of auto executive-turned-fugitive Carlos Ghosn after he blasted the country’s legal system as allowing him “zero chance” of a fair trial as he sought to justify his escape to Beirut. In an effort to undo Ghosn’s attempt to sway public opinion in his favor, Justice Minister Masako Mori followed shortly with a statement. Lebanese investigators questioned Carlos Ghosn under the supervision of the prosecutor in Beirut, a judicial source said, after he was summoned over an Interpol warrant issued by Japan seeking his arrest on financial misconduct charges.

For the first time, Tesla's stock market value has eclipsed the combined values of General Motors and Ford Motor. Fueled by a surprise third-quarter profit, progress at a new factory in China and better-than-expected car deliveries in the fourth quarter, Tesla’s stock has more than doubled in the past three months. The progress made by Tesla Chief Executive Elon Musk has defied short sellers and other traders expecting the automaker to be overtaken by long-established car companies, including GM and Ford.

China’s Vice Premier Liu He, head of the country’s negotiation team in Sino-U.S. trade talks, will sign a “Phase 1” deal in Washington next week, the commerce ministry said. Liu will visit Washington on Jan. 13-15, said Gao Feng, spokesman at the commerce ministry. Negotiating teams from both sides remain in close communication on the particular arrangements of the signing, Gao told reporters at a regular briefing.