President Donald Trump will announce a joint venture Tuesday with OpenAI, Oracle and Softbank to invest billions of dollars in AI infrastructure in the United States, CNBC’s Eamon Javers and NBC News’ Peter Alexander report.

The project, dubbed Stargate, will be unveiled at the White House by Trump, Softbank CEO Masayoshi Son and executives from Oracle and OpenAI, according to sources familiar with the plan.

The companies are expected to commit to an initial $100 billion and up to $500 billion to the project over the next four years, according to CBS News, which first reported details of the expected announcement.

Stargate’s first joint venture will be a data center in Texas, CBS reported.

Softbank’s Son had already announced a four-year, $100-billion AI investment in the United States in December, when he visited then-President-elect Trump’s Mar-a-Lago resort.

It was not immediately clear if the anticipated investment being announced Tuesday would be in addition to Son’s prior pledge.

This is developing news. Please check back for updates.

— NBC News’ Peter Alexander contributed to this report

President Donald Trump said that his team was discussing a 10% tariff on China and that the duty could take effect as early as Feb. 1.

“We’re talking about a tariff of 10% on China based on the fact that they’re sending fentanyl to Mexico and Canada,” the president said, speaking to reporters at the White House on Tuesday evening.

“Probably Feb. 1 is the date we’re looking at,” he added.

Trump also noted on Tuesday that his team is talking about a tariff of “approximately 25%” on Mexico and China.

The president’s latest comments come a day after he said he was thinking of imposing 25% levies on Mexico and China as early as February.

“We’re thinking in terms of 25% (levies) on Mexico and Canada, because they’re allowing a vast number of people” over the border, he said on Monday.

While campaigning in 2024, Trump had threatened imposing tariffs upward of 60% on Chinese goods. As recently as November, he called for “an additional 10% Tariff” on China, according to a post on his social media platform Truth Social.

Pure-play space stocks flew higher on Tuesday, a rally that a Wall Street analyst pinned to exuberance around the sector after President Donald Trump‘s inauguration.

“Post the election, there seems to be this very deep and broad excitement about opening up private space opportunities,” Deutsche analyst Edison Yu told CNBC.

“It’s not just the headlines. When you talk to any [venture capital] investor, any institutional investor, any family office … it just seems like everybody has kind of gotten much more interested and excited [about] space,” said Yu, whose coverage includes six space companies: BlackSky, Iridium, Planet, Rocket Lab, Telesat and Viasat.

Several of the sector’s stocks climbed nearly 20% or more without clear individual catalysts, including Mynaric, Rocket Lab, Momentus, Intuitive Machines, Planet and Sidus.

Redwire, up 51.4%, was the day’s top performer after it announced its planned acquisition of defense technology company Edge Autonomy for nearly $1 billion and, as a result, forecast full-year 2025 revenue may reach as much as $605 million, about double from last year.

Investors also boosted Viasat, up 32.9%, as it reiterated that NASA selected itas one of four companies for a five-year communications contract worth as much as $4.8 billion, to provide satellite connectivity services as part of the “Near Space Network.”

Trump briefly addressed space in his inauguration speech, but did not mention NASA or the space agency’s Artemis program, its current top priority that aims to return astronauts to the moon.

“We will pursue our manifest destiny into the stars, launching American astronauts to plant the Stars and Stripes on the planet Mars,” Trump said, with SpaceX CEO Elon Musk cheering in the audience behind him.

Space stocks in general have rallied since the presidential election, with several seeing their share prices double or more in the past three months, according to FactSet.

Deutsche’s Yu pointed to three catalysts boosting the industry: Trump’s nomination of Jared Isaacman to be the next NASA administrator, significant trading volume from retail investors and the expectation of more multibillion-dollar federal contracts up for grabs.

“After Jared Isaacman got picked as the next NASA administrator, that was very well received by the institutional community. If you talk to investors who follow space very closely, if you talk to people who are running the companies, that was seen as very positive,” Yu said.

Space stocks largely rebounded in 2024 after the sector widely slumped in the years prior. Several went screaming higher over the past 12 months, according to FactSet, with Intuitive Machines up 779%, Redwire up 715%, AST SpaceMobile up 648%, and Rocket Lab up 543%.

Yu doesn’t “expect them to repeat this crazy 2024 performance” in 2025, however. He described last year’s rebound as a significant re-rate of valuations that “were trading at very depressed” levels.

“These valuations, needless to say, are much richer than they were six months ago or even three months ago,” Yu said.

Netflix is hiking the price of most of its U.S. plans.

The streaming giant announced on Tuesday that its standard plan without commercials will increase from $15.49 a month to $17.99. Its cheaper, ad-supported plan, which was more recently introduced to attract more subscribers, will increase from $6.99 per month to $7.99.

In addition, the monthly cost of Netflix’s premium plan will increase from $22.99 to $24.99.

The company, which reported fourth-quarter earnings on Tuesday, said it will also raise prices in Canada, Portugal and Argentina.

Consumers have been faced with numerous price hikes in recent years across major streaming services including Netflix and its competitors, including Disney’s apps and Warner Bros. Discovery’s Max. Streamers have increasingly turned to higher prices and ad-supported plans as they look to reach profitability.

“When you’re going to ask for a price increase, you better make sure you have the goods and engagement to back it up,” said Netflix co-CEO Ted Sarandos during Tuesday’s investor call, noting upcoming series and movies to be released in 2025.

During Tuesday’s call, co-CEO Greg Peters said that the recent price increases in international markets went “smoothly.”

Netflix last increased the cost of its standard plan without ads in 2022, while its premium plan last saw a hike in 2023. Meanwhile in 2023 the company discontinued its cheapest basic ad-free option. While the plan is no longer available to new customers, Netflix did increase the cost of it later that year.

Netflix had ditched the basic ad-free tier soon after it introduced its cheaper, ad-supported plan in November 2022 as a response to slowing subscriber growth at the time. In November, Netflix said it had reached 70 million global monthly active users on its ad plans. This is the first time Netflix has altered the price of the ad-supported plan.

The company has also been enforcing a crackdown on password sharing in a push to get more customers paying for its service.

As part of that change, Netflix has given subscribers the option to add “extra members” to their accounts. The streamer said Tuesday the cost of extra members on standard plans without commercials will rise from $7.99 per month to $8.99. The extra members on ad-supported plans won’t see a price change.

The crackdown appears to be paying off: Netflix reported on Tuesday that it added a record 19 million paid memberships during the fourth quarter to surpass 300 million subscribers.

LOS ANGELES — Netflix is due to report fourth-quarter earnings after the closing bell Tuesday.

Wall Street will be paying close attention to details surrounding the company’s advertising-supported business model, its recent collection of live sporting events and the continued impact of its password crackdown on subscriber numbers.

After all, this is expected to be the last time Netflix will report subscriber data to shareholders, as it plans to focus on revenue and other financial metrics as performance indicators.

Here’s what Wall Street expects for the company’s most recent quarter: 

• Earnings per share: $4.20, according to LSEG
• Revenue: $10.11 billion, according to LSEG
• Paid memberships: 290.9 million, according to StreetAccount

“Netflix has established a virtually insurmountable lead in the streaming wars,” wrote Alicia Reese, analyst at Wedbush, in a recent research note. “Netflix can retain its moat while competitors try to replicate its business model. Even as Netflix has lapped the password-sharing crackdown, we expect its advertising tier to drive revenue growth for several years. So far, the introduction of the ad tier has limited churn, lowering pressure on adding new subscribers, with at least 30 million accounts converting to the ad tier in the past six months.”

Reese noted that Netflix is positioned to accelerate revenue from its ad tier as it continues to add more live events, improves its ad targeting and establishes new partnerships. She said she expects Netflix’s ad tier to be its primary growth driver by 2026.

This is a breaking news story. Please check back for updates.

The Bank of Japan is expected to raise its benchmark interest rate this week by 25 basis points, according to a survey of economists polled by CNBC.

A hike will put the BOJ’s key rate at 0.5%, its highest level since 2008.

An overwhelming majority of 18 out of 19 economists agreed on prospects of a rate hike, with most pointing to a recent change in tone of the BOJ leadership as driving their expectations. The survey was conducted from Jan. 15 to 20.

Public comments by Governor Kazuo Ueda and a speech by Deputy Governor Ryozo Himino to business leaders last week have indicated BOJ’s willingness to hike rates.

Ueda said on Jan. 16 that the central bank would raise rates if “improvements in the economy and prices continue,” according to a report by Reuters.

Himino, meanwhile, said that the bank would debate raising rates at the upcoming meeting, adding that it would “not be normal” for real interest rates to remain negative once Japan had overcome deflationary factors.

The tone signals that headwinds which had prevented a rate hike last month were diminishing, according to several economists polled by CNBC.

However, they also flagged a key risk to this forecast was the uncertainty stemming from Donald Trump’s presidency and its potential impact on financial markets and Japan’s economy.

Uichiro Nozaki, economist at Nomura Securities, described the speech by Himino as a “major catalyst” for their rate-hike call.  

“From (Himino and Ueda’s) remarks, we judged that BOJ is more confident. In terms of wage hikes, Himino said that it was the main scenario that wage hikes as high as in 2024 is realized in 2025.” 

Takesh Yamaguchi, chief Japan economist at Morgan Stanley MUFG Securities, backed his call of a rate increase, noting that the recent comments from the BOJ leadership indicated a “more positive tone on two key points, i.e. the outlook for wage increases in fiscal 2025 and the uncertainty over the incoming U.S. administration.”

Another common factor cited by economists in favor of a rate hike was the persistent weakness in the yen, which had prior to Himino’s speech on Jan. 14, drifted to 6-month lows at 158.37.  

“The yen has weakened significantly since the BOJ decided to skip a rate hike in December,” Stefan Angrick, associate director at Moody’s Analytics said.  

“This, combined with a series of hotter-than-expected inflation prints for consumer, producer and import prices, raises the odds of monetary policy action in January.”

Ramped up expectations of a rate hike this week have supported the Japanese currency, which has strengthened 1.24% in the seven days to Tuesday. The yen strengthened between July and September, before weakening past 158 near the end of last year.

LSEG data indicates nearly 88% probability of a hike in the upcoming meeting.

The Bank of Japan has long stated that its goal is to ensure a “virtuous cycle” of rising prices and wages where higher wages would ostensibly, fuel higher prices and consumption.

A virtuous cycle is expected to lead to sustainable growth in the Japanese economy, which has been in the doldrums since the 1990s when its asset bubble burst.

Some economic indicators have been pointing in the right direction. Core inflation in Japan — which excludes prices of fresh food — has matched or run above the BOJ’s 2% target for 32 months in a row, and 2024 saw the largest increase in the shunto wage negotiations in 33 years.

Himino, in his speech said that the bank should be paying close attention to wage increases in the 2025 fiscal year, which runs from April 2025 to March 2026.

“Each firm faces unique challenges, and raising wages would by no means be a simple matter. But I hope to see strong wage hikes in fiscal 2025 as we did in fiscal 2024,” he said.

However, household expenditure data has not shown significant improvement. Household expenditure has decreased every month year on year since March 2023, barring two marginal increases in April and July 2024.

A weak spending figure could mean that demand is soft, which will put a dent in the BOJ’s “virtuous cycle.”