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The 10-Point: My Guide to the Day's Top News

The Wall Street Journal
Good morning from Davos, Switzerland, and the second day of the World Economic Forum. My special additional daily 10-Point newsletter about the news and events here will be published later today.
Greenback Down
The dollar tumbled to its lowest level in a month after Donald Trump called it “too strong” in an interview The Wall Street Journal published Monday. The dollar’s 1.3% fall Tuesday against a basket of major peers also reflected a surge in the British pound after a speech by U.K. Prime Minister Theresa May that removed some of the lingering uncertainty around Brexit. In talking down the dollar, Mr. Trump departed from a bipartisan tradition of generally leaving commentary on the currency to the Treasury Department and veered away from more than two decades of strong-dollar precedent. Administrations from both parties have backed a strong dollar as a way to keep interest rates low, inflation under control and U.S. buying power strong, although there have been periods when a weaker dollar has been tolerated and even tacitly encouraged.

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A Hot-Button Commute
President Barack Obama shortened Chelsea Manning’s 35-year prison sentence, setting a May release for the former Army intelligence analyst convicted in 2013 of leaking government secrets by providing hundreds of thousands of documents to the website WikiLeaks. The decision drew immediate criticism from Republicans; House Speaker Paul Ryan called it “outrageous.” Mr. Obama’s commutation of the transgender former soldier’s sentence was announced three days before he leaves office, and was accompanied by more than 200 other commutations and dozens of pardons, including one for retired four-star general James Cartwright in another leak-related case. The president’s decisions intensified the national debate about leaks, intelligence and the appropriate punishment for revealing government secrets.
His Own Rules
When the Senate considers former OneWest Bank Chairman Steven Mnuchin’s nomination for Treasury secretary on Thursday, Democrats are likely to scrutinize his role in home foreclosures, particularly by failed IndyMac Bank, which OneWest bought from the federal government. But there was another, relatively overlooked OneWest acquisition he made during the financial crisis, of First Federal Bank. That deal for one of California’s largest savings institutions shows an executive willing to push outside normal channels, according to more than two dozen interviews with former OneWest and First Federal employees and former and current regulators, as well as government and company documents. Rather than wait for a formal bidding process, Mr. Mnuchin began buttonholing regulators to express his interest before First Federal was even deemed a failed financial institution.
Women on the Rise
Women represent the strongest internal contenders for the corner office at a small but growing number of major U.S. companies. Their ascension could produce a significant increase in the number of female chief executives. Patricia Stitzel, for example, is in line to take the top post at Tupperware Brands, having been promoted to president and chief operating officer in October. “I am ready when she is ready,” said current CEO E.V. “Rick” Goings. The 2016 proxy statements of S&P 500 companies show women as president or operating chief at 13, up from nine a decade earlier, according to our exclusive study conducted by researchers Equilar. Another woman joined the CEO ranks Tuesday when Mattel tapped Margaret Georgiadis. Other companies with female front-runners include retailers Kohl’s and Abercrombie & Fitch.
End of Search
That Was Painless
The disappearance of Malaysia Airlines Flight 370 threatens to remain one of the great unsolved aviation mysteries as authorities call off the search after nearly three fruitless years.

More Than a Quarter of House Democrats to Skip Inauguration

Trump’s Election Victory Gives Private Prisons a Boost

Nigerian Military Jet Bombs Refugee Camp, Killing Dozens

Islamic State Gains in Syria Province

Bayer Will Keep Monsanto Jobs in U.S., Trump Team Says

Second Theranos Lab Failed U.S. Inspection

Morgan Stanley Posts Biggest Fourth-Quarter Profit Since Crisis

Gold Gains on Brexit Jitters, Weaker Dollar
$49.4 billion
The amount British American Tobacco will pay to take full control of Reynolds American, in a deal that marks renewed international interest in the U.S. tobacco market.
Pursuing protectionism is just like locking one’s self in a dark room. Wind and rain may be kept outside, but so are light and air.
Chinese President Xi Jinping in a speech at the annual World Economic Forum defending international trade and economic integration.
Going back to our story above, what are your thoughts on President Obama’s decision to shorten Chelsea Manning’s sentence? Send your comments, which we may edit before publication, to Please include your name and location.
—Compiled by Cynthia Lin
Responding to yesterday’s question on Donald Trump’s criticism of House Republicans’ border-adjustment tax plan, Jay Campbell of South Carolina wrote: “Mr. Trump’s right. Keep it simple. Lowering the corporate tax rate for U.S. companies is a simple one-step plan. Levying taxes on some imports and not others is complex and will lead to the gaming of inadvertent (and/or purposeful and possibly proliferating) legislative loopholes.” Jan Rogers Kniffen of Connecticut said: “Having run tax for an S&P 500 retailer, I was not looking forward to trusting the economists who say, ‘It will all be fine because the dollar will adjust enough to keep imported products affordable.’ On the other hand, if the Trump administration is not going to embrace ‘cross-border adjustments,’ but instead do targeted taxes and tariffs, we are right back to crony capitalism like we have under the Democrats.” Henry Coolidge of Delaware commented: “Every tax ‘reform’ just makes things more complicated. Any border-tax law will be so full of exemptions for Congress’s favored donors that businesses will spend any tax savings hiring accountants and lawyers to optimize their tax position. In this limited instance, Trump is right.” Charlie Van Pelt of Florida shared: “The Republican plan is too complicated and will only nurture a new generation of tax accountants. No solution will ever be perfect; the markets will always outthink politicians’ tax schemes. We should simply encourage a one-time repatriation of sequestered profits at a reduced rate, then mandate the tax rate at which all future American-owned entity profits are due, regardless of where earned, with credit for foreign taxes paid.”

This daily briefing is named “The 10-Point” after the nickname conferred by the editors of The Wall Street Journal on the lead column of the legendary “What’s News” digest of top stories. Technically, “10-point” referred to the size of the typeface. The type is smaller now, but the name lives on.

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