Los Angeles fires could be costliest disaster in US history, says California governor

Good morning and welcome back to FirstFT Asia. In today’s newsletter:

• The catastrophic fires in Los Angeles

• Logistic groups move Chinese staff overseas

• The global relationship recession

The California wildfires could be the costliest disaster in US history, the state’s governor said, as forecasts of heavy winds raised fears that the catastrophic blazes would spread further.

In remarks to NBC’s Meet the Press on Sunday, Gavin Newsom said the fires — which have burnt through more than 40,000 acres, according to CalFire, the state’s forestry and fire protection department — would be the worst the country has seen “in terms of just the costs associated with it, [and] in terms of the scale and scope”.

He added that there were likely to be “a lot more” fatalities confirmed. The death toll on Saturday evening stood at 16, according to Los Angeles authorities.

Newsom, a Democrat, also accused Donald Trump of spreading disinformation after the president-elect called his emergency response “incompetent”.

Read more about the economic loss from the Los Angeles fires.

Here’s what else I’m keeping tabs on today:

• Economic data: China reports December trade figures and India publishes monthly CPI inflation rate data.

• Japan: Financial markets are closed for Coming of Age Day, a national holiday to celebrate those who have recently entered adulthood.

Five more top stories

1. Global logistics groups are rushing to relocate Chinese staff as more manufacturers in the country prepare to expand overseas in anticipation of tougher trading conditions with the US under a second Donald Trump presidency. Here’s more on the companies setting up “China desks” overseas.

• More on Chinese trade: Chinese chipmakers and technology companies are heading to Malaysia in droves, its economy minister Rafizi Ramli said, as Beijing prepares to face more tariffs when Trump returns to office this month.

2. Mark Zuckerberg’s unexpected “free speech” overhaul of Meta’s content moderation has sparked concerns among advertisers that it will lead to a surge of harmful content and misinformation across the social media platform. As Zuckerberg seeks to curry favour with president-elect Donald Trump, experts see his shift as much a business decision as it is an ideological one.

3. US president-elect Donald Trump intends to push Ukraine to lower its age of conscription in an effort to stabilise the country’s front lines ahead of direct negotiations with Russia. Speaking to US network ABC News yesterday, Trump’s national security adviser gave the clearest picture yet of the new administration’s plan to end the war.

• War in Ukraine: Russian forces are heading towards Ukraine’s Dnipro region, bypassing an anticipated heavy urban battle in the eastern Donetsk area.

4. Italy has decided to “revoke” the arrest of an Iranian engineer wanted by the US for alleged illegal exports of sophisticated technology, just days after Tehran freed an Italian journalist from its notorious Evin prison. Read about the diplomatic effort that led to the releases.

5. Tulip Siddiq’s position as the UK’s City minister looked increasingly fragile yesterday, with the leader of the opposition calling for her to be fired after she became embroiled in a property scandal tied to the ousted government of Bangladesh. Siddiq, whose role covers anti-corruption policy, faces allegations that she benefited from properties linked to the Awami League, the party led by her aunt Sheikh Hasina.

News in-depth

Donald Trump has said he wants to buy Greenland — which is part of the kingdom of Denmark — and recently refused to rule out using military force to do so. For many residents of Nuuk, the capital, the incoming US president’s comments were unsettling. But some believe there is an upside to Trump’s interest in the island.

We’re also reading . . . 

• China’s green advantage: The west needs to co-operate, cautiously, with Beijing in the renewable energy trade, writes the editorial board.

• A colder London?: For some climate scientists, global warming threatens Britain with a more unexpected scenario.

• ‘Ozempic face’: Baby boomers and users of weight loss drugs suffering from “facial sagging” are flocking to injectable aesthetic treatments, according to dermatology group Galderma.

Chart of the day

In recent years the fall in birth rate is coming not from the decisions made by couples, but from a marked fall in the number of couples. John Burn-Murdoch’s latest column explains what is driving the global rise of singledom.

Take a break from the news

Last month HTSI published a list of FT staff’s favourite food markets around the world. Now readers have weighed in with their best spots for local produce, with recommendations from Hong Kong and Taiwan to Melbourne.