Core Insights - US inflation remains steady with the consumer price index (CPI) rising 2.7% year-over-year as of December, consistent with the previous month and above the Federal Reserve's 2% target [1][2] - The CPI increased by 0.3% month-to-month, while the core index, excluding food and energy, rose by 0.2%, attributed to the unwinding of distortions from the longest US government shutdown rather than strong economic momentum [3] Economic Context - Food and housing costs were significant contributors to the CPI increase in December [2] - Inflation peaked at a 40-year high of 9.1% in June 2022, influenced by global economic disruptions from the Covid pandemic [4] Political Implications - Public sentiment is shifting blame for rising costs onto the Trump administration, with a Harris Poll indicating that twice as many Americans feel their financial security is worsening [5] - The Trump administration has claimed that prices are falling and attributed lingering inflation to the previous Biden administration [4] Government Response - The president is set to address economic concerns in a speech in Detroit, announcing measures such as capping credit card interest rates and banning large institutional investors from purchasing single-family homes [6] - Elizabeth Warren criticized the Trump administration for increasing costs for families, highlighting that inflation remains higher than when the trade war began [8] Federal Reserve Dynamics - The Federal Reserve is facing scrutiny and pressure from the Trump administration regarding its interest rate policies, with the central bank having cut rates three times last year but resisting deeper cuts [8] - Recent developments include the Department of Justice serving the Fed with grand jury subpoenas, raising concerns about the independence of the central bank [9]

Central Bank Independence - Global central banks have issued a joint statement expressing "full solidarity" with US Federal Reserve chair Jerome Powell, emphasizing the importance of central bank independence for economic stability [1][2] - The statement was signed by nine central bank governors, including those from the Bank of England and the European Central Bank, coordinated by the Bank for International Settlements [3] Support for Jerome Powell - The signatories praised Powell's "integrity" and commitment to the public interest, highlighting his respected status among colleagues [4] - Powell has faced criticism from President Trump for not cutting interest rates quickly enough, leading to tensions between the two [4][5] Legal Threats and Investigations - Powell stated that he is facing potential criminal indictment from the US Department of Justice, which he described as an unprecedented action related to monetary policy pressures from the administration [5][6] - The investigation is reportedly linked to allegations of "abuse of taxpayer dollars" concerning renovations at the Fed's headquarters [8] Political Reactions - Some Republican lawmakers have expressed concern over the legal actions against Powell, with Senator Thom Tillis stating he would not confirm any Fed nominee until the legal matter is resolved [9] - Former Fed chairs have condemned the threats against Powell, warning of potentially negative consequences for monetary policy and economic stability [9][10]

Core Viewpoint - Jerome Powell, the chair of the US Federal Reserve, is facing a criminal investigation instigated by the Trump administration, which he has publicly stated he will not back down from [2][12][14] Group 1: Powell's Position and Response - Powell has emphasized his commitment to the Federal Reserve's independence, stating he has served under both Republican and Democratic administrations without political bias [3][6] - He has faced ongoing pressure from the Trump administration to lower interest rates, which he has resisted, highlighting the importance of maintaining the Fed's autonomy [10][12] - The criminal investigation is perceived by Powell as a pretext for political pressure, indicating a significant threat to the independence of the Federal Reserve [12][13][14] Group 2: Economic Context and Performance - Powell has been recognized for his management of the economy during challenging times, including the COVID-19 pandemic and rising inflation, achieving a "soft landing" by reducing inflation from a peak of 9.1% in summer 2022 to 2.3% by April [8] - The unemployment rate has remained steady at 4.2%, showcasing Powell's ability to navigate economic challenges while maintaining employment levels [8] - The Federal Reserve was established to operate independently from political influence, a principle Powell has defended throughout his tenure [6][7]

Financial Milestone - Alphabet reached a $4 trillion valuation for the first time, surpassing Apple to become the second-most valuable company in the world [1] - Alphabet is the fourth company to achieve this milestone, following Nvidia, Microsoft, and Apple [1] AI Partnership - Apple selected Google's Gemini AI model to enhance its digital assistant Siri, which is pre-installed on every iPhone, although the financial details of the deal were not disclosed [2] - Apple stated that Google's technology provides the most capable foundation for its AI models [2] Stock Performance - Alphabet's stock surged approximately 65% in 2025, outperforming its peers in the "Magnificent Seven" group of elite stocks [3] - Despite concerns of a stock market bubble, investor enthusiasm for AI investments remains strong [3] Product Launches - Alphabet has addressed investor concerns regarding its AI strategy through high-profile product launches, including the Gemini AI model and the Nano Banana image generator [4] - OpenAI's latest model, GPT-5, did not meet expectations, allowing Alphabet to gain a competitive edge [4] Cloud Business Growth - Google Cloud's revenue increased by 34% in the third quarter, with a backlog of non-recognized sales contracts reaching $155 billion [5] - The cloud unit's growth has been bolstered by renting out self-developed AI chips previously reserved for internal use [5] Advertising Business Stability - Google's advertising business, primarily driven by Google Search and YouTube, has remained stable despite economic uncertainties and competition [6] - The company is currently navigating two significant US antitrust lawsuits, with a judge ruling against breaking up the company in the first case [6] Antitrust Legal Challenges - In the second antitrust case, a judge ruled that Google had illegally monopolized the online ad market, with a trial underway to determine remedies, which may include divesting parts of its advertising business [7]

Core Viewpoint - Paramount Skydance is actively opposing Warner Bros Discovery's (WBD) deal with Netflix, planning to nominate directors to the board and seeking financial disclosures related to the $82.7 billion agreement [1][3]. Group 1: Paramount's Actions - Paramount intends to nominate directors for WBD's board at the upcoming annual meeting to challenge the Netflix deal, which was agreed upon in December [1]. - The company has filed a lawsuit for the disclosure of financial information regarding WBD's global networks operation, which includes CNN and Cartoon Network, to enable shareholders to make informed decisions [3]. - Paramount plans to propose an amendment to WBD's bylaws requiring shareholder approval for the spin-off of the global networks business [5]. Group 2: Financial Aspects - Paramount's takeover bid for WBD is valued at $108.4 billion, supported by a $40 billion personal guarantee from Larry Ellison [2]. - The Netflix deal offers WBD shareholders $23.25 per share in cash, stock, and equity in the global networks spin-off, which Paramount values at zero [5]. - Paramount argues that its cash offer of $30 per share, which includes the purchase of global networks, is a superior deal for WBD shareholders [6]. Group 3: WBD's Position - WBD's board has previously advised shareholders to reject Paramount's $108.4 billion hostile takeover bid, labeling it as "inadequate" [7]. - Accepting Paramount's deal would incur $4.7 billion in costs for WBD, including breakup fees and additional interest on debt [8].

Group 1: Economic and Resource Implications - The US has become a significant net exporter of oil since the shale boom, insulating its economy from global energy price rises [7] - Concerns exist regarding the economic viability of US hard-to-extract shale oil at current prices below $60 per barrel, with Trump aiming to drive prices lower [8] - The Institute of International Finance indicates that while there is medium- to long-term upside to Venezuelan oil supply, risks point to a gradual recovery rather than swift normalization [9] Group 2: Trade and Manufacturing Dynamics - Manufacturing employment in the US has continued to decline, shedding over 200,000 jobs in two years, despite Trump's trade policies aimed at reshoring [10] - The EU has provisionally agreed to a trade agreement with Mercosur, indicating that rival countries affected by US tariffs are consolidating [11] - China continues to innovate in electric vehicles and solar panels, positioning itself at the forefront of the transition away from fossil fuels [11][12] Group 3: Political and Strategic Context - Trump's actions in Venezuela are viewed as a military exercise aimed at resource control, raising concerns about the potential for further destabilization [13] - The focus of corporations has shifted towards raw materials necessary for mass electrification, such as copper, aluminum, and lithium, rather than traditional fossil fuels [9]

Core Viewpoint - The U.S. government, under President Trump, is encouraging major oil companies to invest $100 billion in Venezuela's oil infrastructure following the ousting of Nicolás Maduro, promising them "total safety, total security" for their investments [1][2]. Investment Opportunities - Trump emphasized that the investment would come from oil companies, not the federal government, and highlighted the potential for increased oil production within 18 months [3][4]. - Chevron, ExxonMobil, and ConocoPhillips executives expressed willingness to invest in Venezuela's oil infrastructure, contingent on government assurances [2][4]. Company Perspectives - Chevron's vice-chair stated the company is committed to rebuilding Venezuela's oil sector, currently employing 3,000 people in joint ventures there, with the capacity to double its output immediately [5][6]. - ExxonMobil's CEO noted that significant legal and commercial changes are necessary for reinvestment, describing the current situation as "uninvestable" [6][7]. - ConocoPhillips' CEO mentioned the company holds $12 billion in debt from Venezuela and expressed optimism about future opportunities, indicating a fresh start without considering past losses [8]. Industry Context - Venezuela possesses the world's largest oil reserves, but its oil production has drastically declined due to aging infrastructure and lack of investment since the mid-2000s [9]. - The U.S. plans to control Venezuela's oil resources indefinitely and sell seized crude oil, reflecting a strategic interest in the region's oil output [10]. - The global oil market is currently experiencing a surplus, with U.S. gas prices lower than the previous year, indicating a favorable environment for potential investments [11].

Labor Market Overview - The US labor market added 50,000 jobs in December, marking the weakest year of growth since the pandemic, falling short of the expected 73,000 jobs [1] - Job additions for October and November were revised downwards, with a total of 76,000 fewer jobs added during those months [2] - The unemployment rate decreased from a four-year high of 4.6% in November to 4.4% in December [2] Economic Context - The labor market is described as being in a "no hire, no fire" phase, indicating subdued job growth despite ongoing employment [4] - Layoffs in December were nearly half of those recorded in November, suggesting a stabilization in job security [4] Federal Reserve Actions - The Federal Reserve is expected to consider the latest labor data in their upcoming policy meeting at the end of January, with current interest rates between 3.5% and 3.75% [5] - There is a likelihood of a pause in interest rate cuts, as indicated by the division among Fed members during their December meeting [6] - Fed Chair Jerome Powell expressed caution, hoping for stabilization in the labor market and a cooling of inflation, which rose 2.7% in November [7] Political and Economic Discourse - Treasury Secretary Scott Bessent urged the Fed to continue cutting rates to stimulate stronger economic growth [9] - There is a conflict between the Fed's cautious approach and the demands from Donald Trump and his economic advisers for lower interest rates to boost the labor market [8]

Rio Tinto and Glencore have restarted talks over a merger that would create the world’s largest mining company.The talks come almost a year after previous discussions between the two mining companies collapsed. If a deal is agreed, it would create a global mining business with an enterprise value of more than $260bn (£193bn).The two companies said on Friday that they were in “preliminary discussions” about a “possible combination of some or all of their businesses, which could include an all-share merger”.R ...

Core Viewpoint - General Motors will incur a one-time earnings hit of $7.1 billion in its quarterly financial results primarily due to its pullback from electric vehicles (EVs) in response to changing US policies [1][2] Financial Impact - The fourth-quarter results will be negatively impacted by $6 billion in charges related to reversals on EV investments and an additional $1.1 billion in costs associated with restructuring its China operations [1][4] - This follows a $1.6 billion write-down in the third quarter due to shifts away from EVs after a significant policy reversal under former President Donald Trump [2] Strategic Adjustments - GM's CEO, Mary Barra, had previously invested heavily in EV capacity, aiming for emissions-free cars and trucks by 2035, but is now adjusting investments based on consumer demand [3] - The company noted a slowdown in industry-wide consumer demand for EVs in North America starting in 2025, attributed to the termination of certain consumer tax incentives and less stringent emissions regulations [4] Industry Context - GM's profit warning coincides with Ford's announcement of a $19.5 billion write-off over several years due to similar policy shifts affecting the EV market [2]