The US Federal Reserve agreed to cut interest rates at its December meeting only after a deeply nuanced debate about the risks facing the US economy right now, according to minutes of the latest two-day session.Even some of those who supported the rate cut acknowledged “the decision was finely balanced or that they could have supported keeping the target range unchanged”, given the different risks facing the US economy, according to the minutes released on Tuesday.In economic projections released after the ...

Core Viewpoint - Donald Trump criticized Federal Reserve Chair Jerome Powell, labeling him a "fool" and suggesting potential legal action for "gross incompetence" regarding the renovation costs of the Federal Reserve headquarters [1][5]. Group 1: Economic Commentary - Trump claimed the US economy is in great shape, despite his negative view of Powell's leadership at the Federal Reserve [2]. - He expressed disappointment that President Biden reappointed Powell, despite having appointed him himself in 2018 [2]. Group 2: Renovation Cost Discrepancies - Trump inaccurately stated that the renovation cost for the Federal Reserve headquarters is $4.1 billion, while the actual cost is $2.5 billion, as clarified by Powell [3]. - He described the renovation as the "highest price in the history of construction" [3]. Group 3: Comparisons and Future Plans - Trump compared the renovation costs to the construction of a ballroom at the White House, claiming it would cost "a tiny fraction" of the Federal Reserve renovation [4]. - He acknowledged that the ballroom's cost has increased to $400 million, which is double the previously stated estimate of $200 million [5]. - Trump mentioned that the increased cost is due to security requirements for the inauguration, including bullet-proof glass and a drone-free roof [6]. Group 4: Future Leadership of the Federal Reserve - Trump indicated he would appoint Powell's successor next year and plans to announce his choice in January [6].

Group 1 - SoftBank Group will acquire DigitalBridge Group for $4 billion to enhance its AI-related portfolio and expand its digital infrastructure exposure [1][2] - DigitalBridge focuses on digital infrastructure sectors, including datacenters, cell towers, fiber networks, and edge infrastructure, managing approximately $108 billion in assets as of September 30 [2][3] - The acquisition aligns with SoftBank's strategy to capitalize on the increasing demand for computing capacity essential for AI applications [2][4] Group 2 - SoftBank is investing significantly in AI, participating in the Stargate project alongside OpenAI, Oracle, and MGX, which aims to support advanced AI development [4] - The Stargate project includes plans to build five new computing sites across Texas, New Mexico, and Ohio, with a combined power capacity of about 7GW [5]

A surge in the price of silver to record highs this month has prompted a warning from Elon Musk that manufacturers could suffer the consequences.Silver has risen sharply during December, part of a precious metals rally that also pushed gold and platinum to record levels on Boxing Day.Analysts have attributed the jump in prices to expectations of US interest rate cuts by the Federal Reserve in 2026, leading to increased demand for hard assets that protect against inflation and currency debasement.New restric ...

Core Insights - Nvidia is fundamentally different from companies like Enron and Lucent, but it has felt the need to clarify this to investors, which is not ideal [1] - Nvidia's market capitalization has surpassed $4 trillion, driven by its technology that supports the AI boom, including silicon chips and software for systems like ChatGPT [2] - The company has secured at least $125 billion in deals this year, including a $5 billion investment in Intel and a $100 billion investment in OpenAI [2] Business Practices - Concerns have arisen regarding Nvidia's business practices, particularly the circular nature of its deals, which resemble vendor financing where Nvidia lends money to customers to purchase its products [3] - The largest deal involves Nvidia investing $10 billion annually into OpenAI over the next decade, primarily for purchasing Nvidia's chips [4] - Nvidia has strongly denied any reliance on vendor financing to grow revenue, despite comparisons to Lucent Technologies, which faced issues due to similar practices [5] Investor Sentiment - Tech investor James Anderson has expressed concerns about Nvidia's deal with OpenAI, noting that the term "vendor financing" evokes negative connotations [7] - Other significant deals include Oracle's $300 billion investment in datacenters for OpenAI, which OpenAI will repay, and a multibillion-dollar chip deal between OpenAI and AMD [8] Financial Structures - Nvidia has utilized special-purpose vehicles (SPVs) in its financing deals, including a $2 billion investment linked to Elon Musk's xAI, which will be used to buy Nvidia's chips [10] - Comparisons have been made to Enron's use of SPVs to hide debts, but Nvidia asserts its reporting is transparent and does not involve hiding liabilities [11] Market Dynamics - Analysts suggest that while Nvidia is not hiding debt, it is heavily reliant on vendor-financed demand, which poses risks if AI growth slows [13] - Nvidia's future success hinges on the ability of its customers, such as OpenAI and CoreWeave, to generate profits and continue purchasing Nvidia's systems [13] Strategic Partnerships - Nvidia has secured significant deals with governments, including a multi-billion dollar agreement with South Korea for 260,000 Blackwell chips, and a commitment from Saudi Arabia's AI startup Humain for up to 600,000 chips [18][19] - These government partnerships introduce uncertainties due to the opaque terms and large capital commitments involved, concentrating risk among a few major customers [21]

Core Viewpoint - Apple is challenging a £1.5 billion court ruling that found it overcharged UK customers in its App Store, marking a significant moment in the ongoing scrutiny of big tech companies [1][15]. Group 1: Legal Actions and Financial Implications - The appeal is part of a series of class action lawsuits against Apple and Google, with consumers and small businesses seeking over £6 billion in total compensation [3]. - If Apple's appeal fails, UK consumers who made App Store purchases from 2015 to 2024 may be eligible for payouts [6]. - The competition appeal tribunal determined that Apple should charge a commission of 17.5% for app sales and 10% for in-app purchases, rather than the current rates of up to 30% [7]. Group 2: Consumer Sentiment and Market Dynamics - Dr. Rachael Kent, who led the successful case against Apple, noted a growing consumer awareness and pushback against the financial burdens imposed by digital platforms [4][16]. - The reliance on apps for various daily activities has increased significantly, with consumers using more apps than ever before, highlighting the importance of fair pricing in the digital economy [16]. - Apple claims that its App Store supports the UK's digital economy, facilitating over $55 billion (£41 billion) in billings and sales in 2024 [15]. Group 3: Competitive Landscape and Industry Response - Google is also facing class action lawsuits, with accusations of excessive commissions impacting app developers, particularly in the dating and gaming sectors [8][10]. - Google argues that the class action suits threaten to disrupt a system that has lowered prices and increased choices for consumers [13]. - The consumer campaign group Which? has announced a £3 billion claim against Apple regarding its iCloud services, alleging that it traps customers into using its ecosystem [14].

The US economy surged over the summer, the commerce department announced on Tuesday in one of the final snapshots of the nation’s finances to be released in 2025.Gross domestic product (GDP) – a broad measure of the value of goods and services – rose at an annualized rate of 4.3% over the third quarter, far higher than expected and its fastest rate in two years.The surprisingly strong growth “reflected increases in consumer spending, exports, and government spending that were partly offset by a decrease in ...

Core Viewpoint - Larry Ellison has provided a personal guarantee of over $40 billion for Paramount Skydance's attempt to gain control of Warner Bros Discovery (WBD) amid a corporate battle over the entertainment giant [1][2] Group 1: Corporate Actions - WBD has urged its shareholders to reject a $108.4 billion hostile takeover bid from Paramount, which is controlled by the Ellisons [1] - WBD has agreed to sell its movie studios, HBO cable network, and streaming service to Netflix for $82.7 billion [1] - Paramount has claimed that its bid for the entire company, which includes CNN, Cartoon Network, and the Discovery channel, is superior to Netflix's offer [3] Group 2: Financial Commitments - Larry Ellison has agreed to personally backstop $40.4 billion in equity financing for Paramount's proposed deal [2] - Paramount's offer of $30 per share is fully financed and is presented as the superior option for maximizing value for WBD shareholders [4] Group 3: Strategic Positioning - Paramount aims to address WBD's need for financial flexibility and has denied that the Netflix offer is superior [3] - David Ellison stated that Paramount's acquisition would enhance content production, theatrical output, and consumer choice, benefiting all WBD stakeholders [5]

Elon Musk’s controversial $56bn pay package from Tesla was reinstated by the Delaware supreme court on Friday, two years after a lower court struck down the vast compensation deal as “unfathomable”.The decision comes less than two months after Tesla shareholders approved a new plan that could be worth $1tn to Musk, already the world’s richest person, in a decade’s time. It overturns a ruling which had prompted a furious backlash from Musk.Rescinding the pay deal would be “inequitable”, and would leave Musk ...

Core Insights - Donald Trump and nine major pharmaceutical companies have reached agreements to significantly reduce drug prices for the Medicaid program and cash payers, aiming to align US costs with those in other wealthy nations [1][2] Group 1: Price Reductions and Agreements - Drugmakers will cut prices on most drugs sold to Medicaid, promising "massive savings" on commonly used medicines, although specific figures were not disclosed [2] - The deals include agreements to lower cash-pay prices for select drugs, launch drugs in the US at prices equal to those in other wealthy nations, and increase manufacturing [3] - Merck plans to sell its diabetes drugs at approximately 70% off list prices directly to US consumers, with potential for its experimental cholesterol drug to be offered through direct channels [4] Group 2: Previous and Current Deals - Five companies had previously made agreements with the administration to control prices, while three companies have yet to announce deals [6] - Drugmakers committed to "most-favored-nation" pricing for all new US drug launches across various markets, including Medicare [7] Group 3: Financial Commitments and Investments - Companies pledged to invest over $150 billion in US research and development and manufacturing, with Merck contributing $70 billion of that total [8] - A portion of revenues from foreign sales will be remitted to the US to help offset costs [8] Group 4: Medicaid and Market Impact - Medicaid, which represents about 10% of US drug spending, already benefits from significant price discounts, sometimes exceeding 80% [9] - Pfizer indicated that Medicaid discounts would lead to price and margin compression in the upcoming year [9]