Axios

The Federal Reserve said on Friday that it will quit a group dedicated to addressing the risk climate change poses to the global financial system.

Why it matters: The Fed's exit from the coalition suggests a huge pivot underway relative to years past. As President-elect Trump readies to take office, it is more obvious than ever that the political winds have shifted.

President-elect Trump spoke Friday with Chinese President Xi Jinping by phone just days before the U.S. presidential inauguration.

Why it matters: Trump said last month he exchanged messages with Xi after winning the election but didn't confirm they spoke. The president-elect has promised to implement aggressive tariffs on imports from China and could also be forced to determine the fate of TikTok upon taking office.

The Supreme Court on Friday upheld a law that could ban TikTok in the U.S.

The big picture: The court unanimously rejected TikTok's claims that the law violates the First Amendment.

China's ByteDance has called America's bluff on the future of TikTok, and it's beginning to look like a smart bet.

State of play: U.S. politicians from both parties are scrambling to save the app's availability, despite having previously supported a ban.

Chinese AI makers have learned to build powerful AI models that perform just short of the U.S.'s most advanced competition while using far less money, chips and power.

Why it matters: American policies restricting the flow of top-end AI semiconductors and know-how to China may have helped maintain a short U.S. lead at the outer reaches of the AI performance curve — but they've also accelerated Chinese progress in building high-end AI more efficiently.

The deal between Israel and Hamas to release hostages being held in Gaza and begin a ceasefire was officially signed by negotiators in Doha on Thursday, according to two sources familiar with the issue. But the Israeli government isn't expected to vote on it until Saturday night.

Why it matters: The delay in the vote will postpone the start of the ceasefire and the release of the first three hostages from Sunday to at least Monday, according to Israeli officials.

China's leader Xi Jinping is sending a top envoy to attend President-elect Trump's inauguration in Washington, D.C., on Monday, Beijing confirmed.

Why it matters: The "unprecedented" deployment of Xi's special representative, Vice President Han Zheng, is intended to reduce tensions with the U.S. after Trump threatened to impose major tariffs on China and other countries, per the Financial Times, which first reported the news.

TikTok CEO Shou Zi Chew intends to attend President-elect Trump's inauguration next week and is expected to sit on the dais alongside other prominent guests, a Trump transition source confirmed to Axios Thursday.

Why it matters: News of his invite comes as TikTok's fate hangs in the balance, with the U.S. ban of the popular platform set to take effect on Sunday, barring any eleventh-hour intervention.

It took two presidents who can't stand each other to make a deal between Israel and Hamas.

• President-elect Trump swiftly claimed the victory for himself on Wednesday, while President Biden retorted sharply when a reporter asked if he or Trump really deserved the credit: "Is that a joke?"

Why it matters: Officials from the U.S., Israel and Qatar tell Axios the deal to free the hostages and end 15 months of war wouldn't have been possible without unprecedented coordination between their administrations.

Big corporate donors to President-elect Trump's inaugural committee could soon find themselves in the crosshairs of his trade policy.

Why it matters: Ford, General Motors, Stellantis, Stanley Black & Decker and Apple's Tim Cook all have written seven-figure checks for Trump's inauguration, which is on track to outraise his first ceremony in 2017 and President Biden's in 2021.

President-elect Trump will move to "preserve" TikTok, said his pick for national security adviser, Rep. Michael Waltz (R-Fla.), on Wednesday — as a potential nationwide ban looms.

The big picture: It's not immediately clear what action Trump could take if the U.S. Supreme Court were to uphold a bipartisan law that would, unless sold to a U.S. firm, ban the popular video app that's owned by Chinese company ByteDance.

Southwest Airlines is being sued and Frontier Airlines fined over chronic flight delays by the Department of Transportation, the DOT announced Wednesday.

Why it matters: Wednesday's announcement by the outgoing Biden administration's Transportation Secretary, Pete Buttigieg, comes days after the DOT fined JetBlue $2 million for chronic flight delays — the first time such a penalty had been imposed on an airline.