Key Points The Trump administration is investigating Fed Chair Jerome Powell. Powell released a video calling out the action. Markets have thus far shrugged off the news. 10 stocks we like better than S&P 500 Index › The battle between President Trump and Federal Reserve Chair Jerome Powell took an odd turn over the weekend after the Department of Justice opened a criminal investigation into Powell. The investigation is purportedly focused on the Fed's $2.5 billion renovation of its headquarter ...

Core Viewpoint - President Trump's proposal to cap credit card interest rates at 10% could lead to significant negative consequences for both consumers and the financial industry, despite its intention to alleviate high borrowing costs [1][2]. Financial Industry Impact - Major financial stocks, including Capital One, Synchrony Financial, JPMorgan, and Citigroup, experienced a sell-off following the announcement of the proposed rate cap [1]. - UBS analysts predict that the plan would likely reduce credit availability, particularly for middle- and lower-income Americans, rather than simply making credit cheaper [3]. Consumer Spending and Economic Growth - The proposed cap could lead to a reduction in consumer spending, which accounts for approximately 70% of US GDP, potentially compromising overall economic growth [4]. - According to Boston Fed data, a significant portion of credit card spending, particularly from lower-income households, would be at risk, indicating a major economic impact [4]. Expert Opinions - Other financial experts, including billionaire investor Bill Ackman, have echoed concerns that the credit card rate cap could backfire, potentially resulting in millions of credit card cancellations [5].

Market Overview - The U.S. stock market experienced a mixed trading environment on January 12th, 2026, with the Dow Jones Industrial Average increasing by 24.69 points (0.0499%) and Dow Futures rising by 26.00 points (0.0523%) [1][2]. Political Developments - Significant political developments influenced market sentiment, particularly the initiation of a criminal investigation by the Justice Department into Fed Chair Jerome Powell regarding his testimony on Fed building renovations, which Powell claims undermines the central bank's independence [2]. - President Donald Trump proposed a one-year, 10% cap on credit card interest rates, which is expected to have a direct impact on the financial sector [2]. Sector Performance - Walmart (WMT) was the top gainer among Dow components, rising by 3.20%, followed by Caterpillar (CAT) with a 1.92% increase and Johnson & Johnson (JNJ) up by 1.85% [3]. - The financial sector faced challenges due to political announcements, with American Express (AXP) experiencing the largest decline at 4.02%, followed by Disney (DIS) down 2.42% and JPMorgan Chase (JPM) falling by 2.03% [3].

Paramount and Warner Bros. Discovery - Paramount Skydance plans to nominate directors to Warner Bros. Discovery (WBD) and has filed a lawsuit in Delaware for basic information, emphasizing the need for Warner shareholders to make an informed decision regarding its bid versus the current deal with Netflix [3] - Paramount also proposes a bylaw amendment requiring WBD shareholder approval for any separation of Global Networks, indicating a strategic move to influence WBD's governance [3] Netflix Acquisition Odds - Despite political pressure from President Trump against Netflix's potential control over WBD, the odds of Netflix acquiring WBD remain stable at 54% on Kalshi and 53% on Polymarket, reflecting market confidence in the acquisition [4] Credit Card Issuers - Credit card issuer stocks are experiencing a decline following President Trump's proposal for a one-year cap on card rates at 10%, with notable declines in stocks such as Capital One, Synchrony Financial, Bread Financial, and American Express [8] UnitedHealth and Medicare Advantage - UnitedHealth shares are down after a Senate committee reported that the company used "aggressive tactics" to enhance payment-boosting diagnoses for its Medicare Advantage members, although the stock has recovered slightly after the company reaffirmed its outlook [9] Eli Lilly and Nvidia Partnership - Eli Lilly is partnering with Nvidia to establish an AI co-innovation lab in the San Francisco Bay Area, focusing on using AI to accelerate drug discovery, with plans to invest up to $1 billion in talent and infrastructure over five years [10]

Core Viewpoint - The proposed one-year 10% cap on credit card interest by President Trump has sparked mixed reactions, with some industry leaders believing it could lead to a significant contraction in credit card lending and a shift towards personal loans as an alternative for consumers [1][2][4]. Group 1: Industry Reactions - SoFi CEO Anthony Noto expressed that the cap could encourage consumers to transition from credit cards to personal loans, positioning SoFi to fill the resulting credit void [1][2]. - Billionaire CEO Bill Ackman criticized the cap as a "mistake," arguing that it would lead to credit card issuers being unable to sustain profitability, resulting in millions losing access to credit cards [4][5]. - Ackman highlighted concerns that capping rates at 10% would force consumers to seek credit from less reputable sources, such as loan sharks, which would offer worse terms [5][6]. Group 2: Implications for Consumers - If the cap is enacted, it could lead to a significant reduction in credit card lending, as issuers may cancel cards for many consumers unable to meet the new profitability standards [2][4]. - The need for borrower education and underwriting discipline becomes increasingly important in this scenario, as consumers may turn to personal loans to manage their debt [2][3].

Core Insights - ASF has successfully issued an 8-year €500 million bond with an annual coupon of 3.375%, maturing in January 2034, indicating strong market confidence in the company's credit ratings [2] - The bond was oversubscribed nearly 4 times, reflecting the trust investors have in ASF's financial stability and creditworthiness [2] - The issuance was conducted under ASF's EMTN programme, allowing the company to extend its average debt maturity under favorable conditions in the current credit market [2] Company Overview - VINCI is a global leader in concessions, energy solutions, and construction, employing 285,000 people across more than 120 countries [4] - The company focuses on designing, financing, building, and operating infrastructure and facilities that enhance daily life and mobility [4] - VINCI is committed to environmental and social responsibility, aiming to create long-term value for customers, shareholders, employees, partners, and society [4]

Core Viewpoint - Seventy European economists urge EU lawmakers to prioritize public interest in the design of the digital euro to avoid dependence on foreign payment systems and dollar-backed stablecoins [1][2]. Group 1: Concerns Over Payment Infrastructure - The open letter highlights that Europe's payment infrastructure is overly reliant on non-European entities, with thirteen euro area countries depending entirely on international card schemes for retail transactions [2][3]. - This reliance on foreign payment providers poses risks related to geopolitical leverage and systemic vulnerabilities that are beyond Europe's control [3]. Group 2: Essential Features for Digital Euro - The economists advocate for three critical features of the digital euro: it should serve as a backbone for a sovereign European payment infrastructure, be accessible to all Europeans to promote financial inclusion, and provide a credible store of value with a rising holding limit [4][5]. - They emphasize that without these features, the digital euro risks failing to meet its potential and may not be adopted widely by European companies or citizens [5]. Group 3: Strategic Positioning by ECB - ECB Executive Board member Philip Lane has positioned the digital euro as part of broader efforts to enhance Europe's financial architecture, reinforcing its strategic importance [5].

Core Insights - Apple has partnered with Google to enhance Siri with AI capabilities, utilizing Google's Gemini models and cloud technology for the next iteration of Apple’s foundational models [2][3] - The collaboration is expected to lead to a more personalized version of Siri, set to be released this year, while maintaining Apple's privacy standards [2][3] Company Developments - Apple evaluated various options before selecting Google, including testing models from OpenAI and Anthropic, ultimately deciding that Google's AI technology offers the best foundation for its needs [3] - A report indicated that Apple is nearing a $1 billion per year deal with Google for this Siri upgrade [3] Industry Context - Siri, once a revolutionary AI assistant, has fallen behind competitors like Google, Amazon, and Samsung in advanced AI features [4] - Concerns over perfectionism have been cited as a reason for the slower development of Siri's improvements [5] Financial Partnerships - In addition to the Siri upgrade, Apple has formed a new partnership with JPMorgan Chase, which will become the issuer of the Apple Card, replacing Goldman Sachs [5] - This move aligns with broader market trends in embedded finance, where 99.8% of surveyed companies now offer at least one embedded finance capability, with banking features being the most common [6][7]

Core Insights - The competitive labor market is challenging for jobseekers as AI technology is eliminating entry-level roles, with only 50,000 jobs added in December [1] Group 1: Hiring Philosophy - Leila Hormozi, founder of Acquisition.com, emphasizes hiring good people over those with technical skills, inspired by the Ritz-Carlton's hiring philosophy [2][4] - The Ritz-Carlton cofounder, Horst Schulze, highlighted the importance of selecting and orienting the right people to maintain high standards [3] Group 2: Skills in Demand - Hormozi argues that social and emotional skills are undervalued compared to technical skills, which are increasingly mastered by AI [5] - Research from LinkedIn indicates that soft skills like adaptability and analytical thinking are becoming more important as AI takes over technical roles [5] - A Harvard study suggests that individuals with strong foundational skills tend to learn faster and advance more effectively over time [5] Group 3: Leadership Perspectives - Other business leaders, including JPMorgan Chase CEO Jamie Dimon, advocate for the development of critical thinking and emotional intelligence as essential skills for future job security [6]

Former Federal Reserve chairman Ben Bernanke speaks after he was named among three U.S. economists awarded the 2022 Nobel Economics Prize, during a news conference at the Brookings Institution in Washington, October 10, 2022."This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly," it continued. "It has no place in the United States whose greatest strength is the rule of law, which is ...