Bloomberg - Evening Briefing - Please take our money

Almost a century after the US Federal Reserve first tried to discourage regular bank borrowing from its traditional backstop program—known as the discount window—officials now are trying to rebrand the primary credit facility as a source for everyday liquidity. The problem with that is banks remain leery of doing so, given the stigma associated with it. As one might expect, the Fed’s effort is being driven in no small part by last year’s regional banking bloodbath, led by the collapse of Silicon Valley Bank. Regulators were shocked by the rapid flight of deposits, but also that SVB and other lenders were ill-prepared to even access the discount window, instead relying heavily on Federal Home Loan Banks. Now regulators, including the Fed, Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. are drafting a plan to require that banks tap the facility at least once a year, a measure aimed at removing the perceived red flag associated with its use. “Banks need to be ready and willing to use the discount window in good times and bad,” Fed Vice Chair for Supervision Michael Barr recently said. —David E. Rovella

So much for the days when Tesla was busy burning the shorts. Indeed, investors in the electric vehicle maker co-founded by Elon Musk haven’t had a stretch this bad in a long time. Shares of the voluble billionaire’s company have plummeted 26% this month, wiping out $205 billion in market valuation. The stock closed lower for the sixth straight week, its longest losing streak since 2016. For perspective, at that point Tesla hadn’t even launched the Model 3. “There’s no floor in this stock in the near term,” said Adam Sarhan, founder and chief executive of 50 Park Investments. “If Tesla is lowering its forecast and is not bullish on the near term, why should investors be?”

With global temperatures regularly breaking records amid the accelerating climate crisis, the Biden administration has been criticized for not moving as assiduously as promised on reducing greenhouse gas emissions. On Friday, the White House took a dramatic step along those lines. President Joe Biden halted the approval of new licenses to export US liquefied natural gas while the government scrutinizes how the shipments affect climate change, the economy and national security. “We will take a hard look at the impacts of LNG exports on energy costs, America’s energy security and our environment,” Biden said. “This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time.” Environmentalists warn that building the enormous infrastructure required to ship LNG ensures it will be burned for generations to come. The halt in permits represents “the first step in stopping these mega-climate bombs,” said Allie Rosenbluth of Oil Change International. 

China installed more solar panels in 2023 than the US—or any other nation for that matter—has ever built. The country added 216.9 gigawatts of solar last year, blowing away its previous record of 87.4 gigawatts from 2022. That dwarfs the 175.2 gigawatts in the US, the world’s second-biggest solar market. The buildout adds to a massive renewable energy footprint.

Salesforce joined the parade of US tech firms that have chosen to greet the new year and its sunny economic data with mass firings. The company, which sells software to other businesses, has focused on expanding profit margins over the last year in response to shareholder pressure, including from activist investors like Elliott Investment Management. Other tech companies, such as Microsoft, Google and Amazon, have also signaled employee terminations this month. 

Zambian President Hakainde Hichilema said his country is a “guinea pig” for a Group of 20 plan to help poor countries restructure unaffordable debts, and that failure to win relief may mean a wider disaster for the global south. The southern African nation signed up to use the so-called Common Framework to restructure debts three years ago after becoming the continent’s first pandemic-era sovereign defaulter.

US House Speaker Mike Johnson said Friday that the brewing Senate deal tying immigration to emergency aid for Ukraine would be impossible to pass in his chamber. The far-right Louisiana Republican’s comments came as his party’s presidential front-runner, Donald Trump, is pressuring GOP lawmakers to kill any agreement short of a “perfect deal,” a stance potentially aimed at keeping the issue alive for campaign purposes. In the meantime, Ukraine is said to be running out of weapons and ammunition to stave off Russia’s invasion. As for Trump’s legal troubles, a New York jury on Friday held he must pay $83.3 million to former Elle magazine columnist E. Jean Carroll for defaming her when he denied he sexually assaulted her.

The United Nations’ top court told Israel it must act to prevent the killing of and harm to innocent Palestinians in an interim ruling that stopped short of demanding an immediate cease-fire in the Gaza Strip. The International Court of Justice said that Israel—accused by South Africa of acts of genocide amid its war with Hamas—must provide humanitarian assistance to civilian victims of its assault. Israel has denied South Africa’s allegations and praised the court’s rejection of calls for a cease-fire.

Relatives and medical staff pray beside the bodies of Palestinians killed during an Israeli bombardment in Khan Younis, Gaza, on Jan. 7 Photographer: Ahmad Salem/Bloomberg

• US Federal Reserve’s preferred price gauge cools to a three-year low.
• This Nigerian tycoon saw his wealth jump by $6.9 billion in one month.
• AI sucks up so much power it’s keeping the dirtiest fossil fuel alive.
• BlackBerry stock hits a 20-year low after private debt offering.
• First-ever White House chief diversity officer is set to depart.
• Bloomberg Opinion: $250,000 Range Rovers trigger a quiet revolution.
• The Mercedes loved by Princess Diana is having a renaissance.

Speaking of Mercedes, the carmaker’s insignia was recently flashing on screens as thousands of guests thronged a hotel best known for hosting Dubai’s biggest horse-race. The event marked the unveiling of the city’s latest luxury tower, where some apartments will cost up to $10 million. The $1 billion development with unobstructed views of the Burj Khalifa is being built by Binghatti Properties in a first of its kind tie-up with the German automaker. Featuring 150 apartments starting at $2.7 million, the building is another high-stakes bet on Dubai’s white-hot property market.

A digital rendering of the Mercedes-Benz Places Source: Binghatti

Get the Bloomberg Evening Briefing: If you were forwarded this newsletter, sign up here to receive Bloomberg’s flagship briefing in your mailbox daily—along with our Weekend Reading edition on Saturdays.

Bloomberg Green Festival: The world needs radical solutions to address global warming and climate change. Join us in Seattle July 10-13 for the inaugural Bloomberg Green Festival, a groundbreaking celebration of thinkers, doers and innovators leading the way into a new climate era. The festival will immerse attendees in solutions-driven experiences with world-renowned experts to inspire climate action. Get 40% off if you secure your tickets by Jan. 31.