Meta has a new president — and she's a former advisor to President Donald Trump. The tech giant named Dina Powell McCormick as its president and vice chairman on Monday. Powell McCormick joined Meta's board in April before resigning in December.Before joining Meta, Powell McCormick served as a deputy national security advisor to Trump. The president applauded her appointment on Truth Social: "A great choice by Mark Z!!" Powell McCormick is the second former Trump official appointed to a Meta leadership po ...

Apple and Alphabet have reached a deal for Google's Gemini to power Siri's artificial intelligence capabilities. The companies said these models would help power future Apple Intelligence features, including a more personalized Siri coming this year. "After careful evaluation, Apple determined that Google's AI technology provides the most capable foundation for Apple Foundation Models and is excited about the innovative new experiences it will unlock for Apple users," Apple and Google wrote in a statement. ...

Core Viewpoint - Paramount's CEO David Ellison is pursuing legal action to gain access to financial information from Warner Bros. Discovery (WBD) regarding its valuation of cable networks, aiming to facilitate informed decisions for WBD shareholders regarding Paramount's acquisition offer [1][2][7]. Group 1: Acquisition Attempts - Paramount has made eight unsuccessful attempts to acquire WBD, with its latest offer being an all-cash proposal of $30 per share, which is positioned as superior to Netflix's offer [1][3]. - The initial offer from Paramount was made at a significant premium to WBD's share price of $12.54, culminating in the current $30 per share proposal [3][4]. Group 2: Legal Action and Information Disclosure - Paramount has filed a lawsuit in Delaware Chancery Court to compel WBD to disclose financial information necessary for shareholders to evaluate the acquisition offer [6][7]. - WBD has not provided adequate financial disclosures regarding the valuation of the Global Networks stub equity or the overall Netflix transaction, which is required under Delaware law [6][7]. Group 3: Shareholder Engagement and Future Steps - Paramount plans to nominate a slate of directors to engage with WBD's board and propose amendments to WBD's bylaws to require shareholder approval for any separation of Global Networks [4][5]. - The company aims to ensure that WBD shareholders have the final say on which offer is more beneficial, emphasizing the importance of transparency and constructive dialogue with WBD's board [4][9].

In a rare video message released early on Sunday, Federal Reserve Chair Jerome Powell said the US central bank had received grand jury subpoenas that could expose it to criminal indictment by the Department of Justice. Powell said the subpoenas relate to his June testimony concerning renovation work at the Fed's office buildings.He said that the move was part of a pressure campaign by the Trump administration aimed at pushing the central bank to lower interest rates. Read his full statement below:Good eve ...

Core Viewpoint - Tesla is facing a class-action lawsuit regarding the failure of its electronically powered door handles in the Model S, highlighting ongoing safety concerns and potential design flaws in its vehicles [1][2][4]. Group 1: Lawsuit Details - The class-action lawsuit was filed in Florida by a Tesla owner, representing those who purchased or leased a 2014-2016 Model S, alleging that the flush door handles routinely fail after a few years of use [1][2]. - The complaint states that three out of four door handles on the plaintiff's 2015 Model S had failed by 2022, creating significant inconvenience and safety risks [3]. - The lawsuit claims that Tesla was aware or should have been aware of the defective handles, as evidenced by the redesign of door handles in post-2016 Model S vehicles [4]. Group 2: Safety Concerns - The electronically powered door handles can become inoperable if the vehicle's low-voltage battery dies, potentially trapping passengers inside during emergencies [5]. - Recent lawsuits have been filed related to fatalities where victims were trapped inside vehicles due to door handle failures, including incidents involving a Cybertruck and a Model S [6]. - The National Highway Traffic Safety Administration is investigating reports of children being trapped inside Model Y vehicles due to door handle failures [7]. Group 3: Company Response and Industry Implications - Tesla's vehicles do have manual door releases, but critics argue these are not easily accessible in emergencies, prompting the company to redesign door handles for better manual control visibility [8]. - A recent safety page on Tesla's website states that doors will automatically unlock for emergency access, but notes that certain safety features may not be available based on the vehicle's build date [9].

Group 1 - The earnings season is led by major banks, starting with JPMorgan, followed by Bank of America, Citi, Goldman Sachs, and Morgan Stanley [1][2] - Banks are crucial to the economy due to their lending and dealmaking capabilities, making their earnings reports significant for understanding broader economic trends [2] - The year-end earnings reports will reflect on a volatile first half of 2025, with stocks, including banks, reaching record highs despite concerns about an AI bubble [4] Group 2 - President Trump is focusing on affordability, which may impact various sectors, including the defense sector and institutional investors in residential housing [5][6] - The potential for Trump's affordability agenda could be beneficial for banks, as a healthy consumer environment typically supports their business [6] - Other industries should remain vigilant as they may become targets of Trump's affordability initiatives, regardless of their direct relevance to the issues he addresses [7]

Core Insights - Competition among major banks is intensifying as they prepare for fourth-quarter earnings, with JPMorgan Chase, Bank of America, Citi, Goldman Sachs, and Morgan Stanley set to report [1][2] - Analysts indicate that banks are facing the toughest competition in years, with a focus on capturing new business across various sectors [2][3] Group 1: Earnings and Competition - The upcoming earnings season is expected to highlight strong competition in dealmaking, talent acquisition, and technology [1][2] - Analysts predict a significant rebound in dealmaking, with worldwide M&A value rising approximately 45% year over year, despite a slight decline in the number of deals [6][8] - Investment banking advisory bonuses are projected to increase by as much as 20% compared to the previous year, indicating a strong year for banking and trading [4] Group 2: Hiring and Talent - The resurgence in dealmaking is leading to increased hiring competition, with firms willing to pay competitively to retain top talent [9][10] - Industry insiders report that the best talent is being actively recruited, especially in a favorable market environment [10] Group 3: Credit Quality - Credit quality remains stable, although there are concerns about potential isolated problems in the credit market, particularly among midsize firms [11][12] - Analysts caution that while large banks are unlikely to face major surprises, credit cycles often begin with specific issues [12][13] Group 4: Technological Advancements - Goldman Sachs is focusing on its OneGS 3.0 initiative, aimed at enhancing profitability and productivity through AI [13][14] - The banking industry is shifting from experimental AI projects to making AI a core strategic priority, with expectations for detailed plans on AI deployment from banking leaders [15][16]

Core Viewpoint - 2026 is positioned as a pivotal year for Tesla, with CEO Elon Musk emphasizing the importance of new hardware and software developments that will shape the company's future [1][2]. Group 1: Major Bets for 2026 - Tesla's strategic focus for the year includes advancements in self-driving software, the launch of a fully autonomous robotaxi service, the introduction of humanoid robots, and the unveiling of a long-delayed new vehicle [2][11]. - Analysts highlight that Tesla's future success is increasingly dependent on the scalability of its AI-powered autonomy [2][3]. Group 2: Robotaxi Expansion - The Tesla Robotaxi service began limited operations in Austin, Texas, in June 2025, utilizing Model Ys and Model 3s without human drivers, although "safety drivers" were initially present [3][4]. - Current operational areas for Tesla's robotaxis include Phoenix, San Francisco, Los Angeles, Austin, and Atlanta, with a focus on regulatory approvals for full autonomy [4]. Group 3: Cybercab Production - Tesla's Cybercab, a purpose-built autonomous vehicle without a steering wheel or brake pedals, is set to begin volume production in April 2026 [5][6]. - The company claims a significant lead in consumer self-driving data, with over six billion miles driven using Full Self-Driving in supervised mode [6]. Group 4: Competition and Market Dynamics - Musk asserts that Tesla is five years ahead of competitors like Nvidia in self-driving technology [7]. - Despite Tesla's advancements, competition is intensifying, particularly from companies like BYD, which has surpassed Tesla in vehicle sales and is targeting lower price points in key markets [14][15]. Group 5: Challenges Ahead - Tesla has faced two consecutive years of sales declines, with 2026 potentially marking a third year of decline, compounded by the loss of federal tax credits for EV buyers [16][17]. - Analysts note that while Tesla's product lineup includes innovations, it may be perceived as stale compared to competitors, impacting its market position [18]. Group 6: Stock Performance and Investor Sentiment - Tesla shares reached a record high of over $481 in mid-December, reflecting a 12% increase over the past year, including a 50% surge in the last six months [19]. - Investors emphasize the need for Tesla to introduce an affordable entry-level EV to attract uncertain shoppers in a slowing EV market [19][20].

Core Viewpoint - The era of Big Tech transforming small investments into substantial profits is coming to an end, primarily due to the impact of AI on business models and return on invested capital (ROIC) [1][3]. Group 1: Return on Invested Capital (ROIC) - ROIC is highlighted as the most critical metric for AI industry investors, emphasizing its importance over revenue growth, hiring, or market size [1][2]. - Historically, software companies enjoyed high ROIC, but as they transition to capital-intensive hardware models, ROIC is expected to decline, which could negatively affect stock prices in the long term [2][3]. Group 2: Impact of AI on Big Tech - AI is driving major companies like Microsoft, Google, and Meta away from asset-light software models towards capital-intensive operations involving data centers, chips, and energy [3][6]. - Despite the potential for AI to expand the addressable market for Big Tech, the anticipated decline in ROIC may exert downward pressure on stock prices for years [3][6]. Group 3: Comparisons to Historical Events - The current AI boom is compared to the late-1990s dot-com bubble, with OpenAI being referred to as the "Netscape of our time," suggesting a potential for a similar market correction [5]. - Burry's hedge fund has made significant bets against AI companies like Nvidia and Palantir Technologies, indicating skepticism about their long-term profitability [5]. Group 4: Financial Viability of AI Investments - Leading AI companies are heavily investing in infrastructure to support their operations, but they have yet to demonstrate significant profit returns from their AI products [6]. - There are concerns that if the return on investment does not exceed the cost of investment, the economic value added will be negligible, raising alarms about a potential bubble in the AI sector [7].

Group 1: ExxonMobil's Position on Venezuela - President Trump expressed an inclination to keep ExxonMobil out of Venezuela, citing dissatisfaction with the company's response to his $100 billion investment plan for the Venezuelan oil industry [1][2] - Exxon's CEO, Darren Woods, stated that Venezuela is currently "uninvestable" due to the existing legal and commercial frameworks, indicating a lack of readiness for investment [2][3] - ExxonMobil has a historical presence in Venezuela, having operated there twice, but faced asset seizures on both occasions, which contributes to the company's cautious stance on reentering the market [3] Group 2: Industry Reactions and Developments - Other oil executives, such as Chevron's vice chairman Mark Nelson, expressed optimism, announcing plans to double production with partners in Venezuela "effective immediately" [4] - The context of these discussions includes recent military actions in Venezuela, where U.S. forces captured President Nicolás Maduro, who is facing legal issues in the U.S. [4] - Exxon's stock price has remained stable, showing an increase of over 16% in the past year, reflecting investor sentiment despite the geopolitical uncertainties [5]