President Donald Trump called on credit-card companies to cap interest rates at 10% for one year, which could wipe out billions in profits for the industry. Herman Chan has more on "Bloomberg Open Interest."

A Trump-imposed deadline for U.S. banks to offer credit cards with a 10% interest rate cap has passed, but banks have not altered their lending practices, and it remains unclear if the deadline is legally binding. Some banks, including J.P. Morgan, are facing lawsuits related to their practices, while the sector continues to operate under normal conditions.

At the same time, the Trump administration's deregulatory stance has led to a surge in mergers and acquisitions among regional banks, with deals now being approved much faster than during the previous administration. The U.S. banking market, still highly fragmented, is expected to consolidate further as banks seek economies of scale and regulatory barriers are reduced.

Trump's credit card rate threat weighs on bank earnings

Herman, not only are they weighing it, today was supposed to be this deadline, which would- It is. It is this deadline, right? Okay, well, yeah, but is it a legal deadline? That's a little bit more squishy, but it's the Trump-imposed deadline. Have we had any movement at all from banks for them to offer a credit card that caps rates at 10%? It is a Trump-imposed deadline. We're not sure if that's really a legal deadline, but at this point, it's just status quo for the banks. They're operating in normal conditions where credit cards are their credit cards. They're not offering a 10% blanket rate, and they're just operating as is. They are being sued, though, some of them, J.P. Morgan. So what do we know about this lawsuit? Right. I characterize that as heavy as the head that wears the crown, right? J.P. Morgan's the biggest bank in the United States, most profitable, really strong returns, really strong valuation, and a lot of that is really reflects reputation risks during the prior Biden administration, where it was really embedded into the supervisory actions of bank regulators. So banks had to be a bit more cautious with what happened after the Capitol riots. So I think that's just reflective of how banks had to operate back then, and really now we're seeing the repercussions of that under Trump. I mean, it's also interesting for a sector that is supposed to be benefiting from this White House and from deregulation. On that note, you had some of the regional bank earnings today, and it struck me that two of the three that reported are undergoing their own M&A, Fifth Third with Comerica, and then you also have U.S. Bank Corp. with BTIG. Is this just easily the theme? Does that kind of overshadow their individual reports, the fact that the regional banks are becoming more like super regional banks? Yes, so that's happening, and that's actually one of the positives under the Trump administration, where there's much less red tape for M&A, and that's really struck a chord for the large regionals where they're doing more bank M&A deals. We'd expect that to continue, especially with some of these better valued banks. We're potentially seeing some more activity by the likes of PNC and M&T, and some of these deals that have been announced, they'll be digested and really strengthen the earnings power of U.S. banking. How much does that M&A continue, Herman? Because I remember when we were talking to you every day about SVB, a lot of people were shocked to hear that there were like 5,000 banks in the U.S. It's an incredibly fragmented market once you get past the top six or the top 60. Do you expect that number to shrink? Are we going to see 4,000? Are we going to see 3,000? We're a little over 4,000 now. We'll see that shrink over time, and that's just ongoing to continue, because there's not a lot of new banks that are opening up. There's not a lot of de novo action. But there is going to be more consolidation, because the banking industry is super fragmented, and there's a need for economies of scale, given the fact that banks are investing in compliance, technology, et cetera. So it just makes sense. And less regulation, right? And less regulation. So I'm just wondering, does this administration supercharge that natural process? Yeah, it's happening now. So bank deals are getting approved by less than 100 days now. And that was something that was unheard of under the Biden administration, where it took upwards of a year or above to do deals. So you're seeing more M&A activity, and that'll continue throughout this term.

French President Emmanuel Macron on Tuesday said the European Union should not bend to 'the law of the strongest.' He told the World Economic Forum in Davos, Switzerland, that it was staggering that the EU was having to contemplate using its 'anti-coercion instrument' against the U.S. (Macron is wearing dark glasses because of an eye condition.)

Paris

France's Macron says EU shouldn't bend to 'law of the strongest'

France's Emmanuel Macron and U.S. President Donald Trump have long exchanged firm handshakes, but their relationship is showing cracks. In a striking break from diplomatic norms, Trump publicly shared what he called a private message from Macron – proposing a G7 meeting in Paris and discussing Syria, Iran, and Greenland.

Washington

Trump publishes Macron's message, threatens French wine tariffs

The death toll from Sunday's high-speed train collision in Spain has risen to 41 as recovery crews use cranes to lift up the train cars and look for victims underneath. Chris Livesay reports on the search for a cause of the crash.

Adamuz

Investigators search for cause of deadly Spain train crash

Valentino, the renowned Italian fashion designer who proudly boasted he "knows what women want" has died in Rome. His sumptuous creations saw him crowned the king of the red carpet for major celebrities needing to be dressed to impress.

Rome

Valentino, 'The Last Emperor' of Italian fashion dies aged 93

The "Board of Peace" was an idea initially proposed by Trump last September as part of his plan to end the war in Gaza, although the initiative now seems to be aimed at mediating global conflicts more broadly.

Global Tariffs

Trump threatens 200% tariffs on French wine over ‘Board of Peace’

People who joined antigovernment protests in Iran are given a three-day deadline to turn themselves in and face a more lenient sentence.

Tehran

Iran police give protesters three days to surrender for leniency

Some 3,000 federal agents are still in the Twin Cities area as President Trump is threatening to invoke the Insurrection Act over continued protests against immigration operations there. Ian Lee reports.

Minnesota

ICE operations, protests continue in Twin Cities as Trump threatens

President Trump continued his push for the U.S. to take over Greenland, telling the prime minister of Norway his perceived snub for the Nobel Peace Prize meant he no longer feels obligated to "think only of peace." The prize is awarded by the private Nobel Institute, not the Norwegian government. Ed O'Keefe has more, and then Holly Williams joins with analysis.

Greenland Stand-Off

Trump ties Greenland threat to perceived Nobel Peace Prize snub

Valentino Garavani, founder and namesake of the luxury fashion empire Valentino, has died at 93. Garavani was known for a trademarked shade of red, a staple at his fashion shows for nearly half a century.

Iconic fashion designer Valentino Garavani dead at 93

Experts studying the cause of the derailment of a high-speed train in Spain - which killed dozens of people - found a broken joint on the rails, according to a source with knowledge of the investigation.

Investigators find broken joint on track at Spanish rail crash site

Prince Harry is back in a London court, along with a slew of other high-profile figures, fighting the publisher of the Daily Mail over invasion of privacy and illegal information gathering tactics.

London

Prince Harry back in London court fighting British tabloids

U.S. President Donald Trump has told Norway's prime minister in a letter that he no longer feels obligated "to think purely of Peace" because he had not been awarded the Nobel Peace Prize, and he repeated his demand for control of Greenland.

Trump tells Norway he no longer feels obligated to think only of peace

Billionaire wealth surged at three times ‍its recent pace ​last year to reach its highest level on record, deepening economic and political divides that threaten democratic ⁠stability, anti-poverty group Oxfam said.

World billionaire wealth hits new peak amid rising poverty, Oxfam says

A high-speed train collision that caused a derailment in southern Spain has killed at least 39 people, officials say. Investigators are working to determine the cause of the crash.

High-speed train crash in Spain kills dozens

Prime Minister Mark Carney is considering sending Canadian Forces personnel to Greenland for military exercises with NATO allies in the wake of U.S. President Donald Trump's tariff threats on European nations who block his efforts to acquire the island, two senior Canadian officials told CBC News.

Ottawa

Carney considering sending troops to Greenland for NATO exercises

The deal followed hours after the Syrian army seized oil and gas fields and two major northeastern towns in clashes with the SDF. Fighting earlier this month has displaced tens of thousands.

Aleppo

Syrian government agrees to ceasefire with Kurdish-led SDF

European countries held an emergency meeting in Brussels Sunday in response to President Trump's post threatening tariffs against countries that have sent military forces into Greenland amid his push to annex the Arctic island.

Brussels

European leaders denounce Trump's tariff threat over Greenland

After 25 years of talks, the EU signed the EU-Mercosur trade deal on Saturday, creating a 700 million-person free-trade area. Ratification is still pending, however, with the European Parliament set for a heated debate.

Asunción

EU seals contentious trade deal with Mercosur countries

European governments blasted U.S. President Donald Trump’s announcement that eight countries will face 10% tariff for opposing American control of Greenland beginning next month.

Nuuk

European governments condemn Trump's tariff threats over Greenland

Palestinians in Gaza expressed both concern and hope after the White House announced some members of a so-called "Board of Peace" that will supervise the temporary governance of the war-torn enclave, which has been under a fragile ceasefire since October.

Jerusalem

Middle East Conflict

Gazans wary as U.S. names 'Board of Peace' under Trump's plan

U.S. President Donald Trump has threatened to raise tariffs on eight European countries until they allow the U.S. to buy the autonomous Danish territory.

Trump escalates pressure on Europe over Greenland control

Protesters who support the surge of federal immigration officers in Minneapolis have clashed with counter-protesters, while state officials announced that the Minnesota National Guard had been mobilized. Adding to the mayhem was the freezing January weather.

Minneapolis

Pro and anti-ICE protesters clash in Minneapolis

Iran's supreme leader blamed the U.S. for the protests against his regime that resulted in a violent crackdown. Willie James Inman has President Trump's response.

Iran blames U.S. for protests, Trump punches back

President Trump announced that he would institute 10% tariffs on eight European countries who oppose his plan to put Greenland under U.S. control. The announcement came after a bipartisan group of congressional lawmakers flew to Denmark to express support for keeping Greenland under Danish control.

Trump announces new tariffs on European countries who backed Greenland

Large crowds of demonstrators marched through Copenhagen and other Danish cities on Saturday in support of Greenland's sovereignty amid tensions with the US.

Copenhagen

Thousands take part in 'Hands off Greenland' protests in Denmark

The United States will impose increasing tariffs on several European countries until the U.S. is able to purchase Greenland, President Donald Trump announced on Truth Social. Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland would face the tariff.

Trump threatens tariffs against European nations over Greenland support

Ugandan President Yoweri Museveni won his seventh term with 71.65% of votes, according to official results Saturday, defeating the youthful challenger who campaigned for change after four decades of the same government.

Kampala

Uganda's President Yoweri Museveni wins seventh term

There will be no territorial concessions in Ukraine, the Ukrainian president said, answering Euronews' question on whether Kyiv is now being pressured into territorial concessions.

Ukraine Invasion

Ukraine will not cede any of its territory, Zelenskyy says

The United States on Thursday said Iran halted 800 executions of protesters under pressure from President Donald Trump, after Gulf allies appeared to pull him back from military action over Tehran's deadly crackdown on demonstrations.

U.S. claims Iran halts executions of protesters amid crackdown

Venezuelan opposition leader María Corina Machado met with President Donald Trump on Thursday at the White House. She presented Trump with her Nobel Peace Prize medal, which was seen as a peace offering to win his support.

Breakdown