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1. India, EU agree to landmark trade deal
India and the European Union announced a free trade agreement after nearly two decades of on-and-off negotiations, the BBC reports. Both sides were eager to reach a deal as tensions with the U.S. rise.
The deal will affect 2 billion people, as it will allow the free trade of goods between the bloc of 27 European states and the world's most populous country.
"We did it, we delivered the mother of all deals," European Commission President Ursula von der Leyen said at a media briefing in Delhi.
2. Fed expected to keep rates steady in January
The U.S. Federal Reserve will meet Tuesday and Wednesday, and the expectation is that officials will decide to pause interest rate cuts after three consecutive months of reductions, the New York Times reports. How long that pause will go on for, though, is less clear.
After a cut to interest rates in December, the current rates are at a range of 3.5% to 3.75%.
"A steadily growing economy and low layoffs have given [Fed officials] some comfort that they can afford to take their time with further cuts, especially as they stare down the prospects of another year of inflation well above their 2% target," the newspaper reports.
3. Hoteliers approach new year with caution
On the first day of the Americas Lodging Investment Summit in Los Angeles, hoteliers expressed optimism in the new year, but with a more cautious approach after the industry underperformed expectations last year, CoStar News Hotels reports.
Major events such as the FIFA World Cup were mentioned as examples as to why a brighter outlook for 2026 could be warranted. But the key word there is "could," as even events like the World Cup aren't a slam dunk for hotel demand like they used to be.
The FIFA World Cup "should be terrific, but [we're] simultaneously engaging in every level of government and saying, 'We've got to make the world feel welcome coming to the U.S.' There may not be a more significant global sports event that draws the world and the eyes of the world, and when you have visitors asking legitimate questions about what their experience will be coming through customs and immigration, whether ... there will be a new entry fee, all of these sorts of things, those are big impediments to optimizing what should be a home-run opportunity for the lodging industry," Marriott International President and CEO Tony Capuano said.
4. Ian Schrager teams up with Highgate to operate Public Hotels
Hotelier and businessman Ian Schrager is teaming up with Highgate to operate his Public Hotels brand, the Wall Street Journal reports.
"The partners aim to acquire existing hotels or even small hotel companies, build new hotels and convert current Highgate properties all under the Public flag," the newspaper reports.
Public Hotels launched 15 years ago but only has one hotel in operation, the Public Hotel New York, with a second set to open in West Hollywood this spring. The newspaper reports that Schrager said operating Public Hotels by himself has slowed his plans for expansion, hence the need to partner with Highgate.
“I want to have a big company,” Schrager said in an interview. “Because I’ve never done it before.”
5. Southwest officially shifts to assigned seating
Starting Tuesday, seating on Southwest Airlines flights will no longer be the wild, wild west. The airline will officially have assigned seating, marking a major shift away from its unique open-seating policy, the Wall Street Journal reports.
The change has drawn the ire of some loyal flyers who have become accustomed to the free-for-all system.
“It felt like the end of an era,” said Kymberley Sexton, a human-resources executive from San Diego. “But also discouraging that business got to that point.”