Weekend Papers Summary
FINANCIAL TIMES
-US inflation cooled in November, suggesting a soft landing by the Federal Reserve and bringing stocks closer to a new record high. The S&P 500 rose by 0.2%, putting Wall Street's benchmark share gauge within 1% of its all-time closing high in January 2022. The index has eight consecutive weeks of gains and is heading for its third-best year in the past decade. President Joe Biden hailed the report from the Bureau of Economic Analysis as a significant milestone in efforts to return inflation to pre-pandemic levels.
-James Gorman, former Morgan Stanley CEO, predicts that financial markets will "take off" once investors are confident that the Federal Reserve has lifted interest rates. Gorman also highlighted the safety of the banking system during his 14-year tenure, highlighting "their own stupidity" as a significant threat to banks.
-The US has accused Iran of being "deeply involved" in planning Houthi attacks on commercial vessels in the Red Sea, warning Tehran of potential responses due to the increased threat to global trade. The White House claims the Iranian-backed Houthis in Yemen rely on Iranian-provided monitoring systems for attacks. The US National Security Council spokeswoman Adrienne Watson confirmed that Iran was involved in the operations. The Biden administration is considering additional actions in response to the Houthis attacks.
-The US Supreme Court has rejected a Department of Justice request to expedite a decision on Donald Trump's immunity from federal prosecution for crimes committed during his time in office. The order means the criminal case against Trump will first be decided by a lower appeals court, potentially delaying a trial scheduled for March in the case brought by special counsel Jack Smith.
-France's Rassemblement National party, led by Marine Le Pen's right-hand man Jordan Bardella, has claimed that its nationalist anti-immigration politics are winning the battle of ideas in the country and will prevail in European parliament elections next year. Bardella described President Macron's immigration law as a "real ideological victory" and said it opened the door for their ideas. Public concern about a surge in asylum-seekers in Europe is driving voters to anti-immigration populists across the EU, forcing mainstream parties to take drastic measures to reduce numbers. The RN is predicted to win 30% of the vote in European elections.
-The US Treasury has introduced stringent new criteria for hydrogen producers to claim green subsidies under Joe Biden's climate legislation. The $3-per-kilogramme credit will be limited to hydrogen made from new clean energy projects connected to the same regional grid as the hydrogen producer. From 2028, developers will need to certify that their production is powered by renewables every hour, not annually. This has sparked criticism from industry groups, politicians, and large developers who argue that hourly matching would make projects too costly. Developers have 60 days to comment on the proposals.
-The Biden administration plans to blacklist foreign financial institutions supporting Russia's military industrial complex as part of Washington's efforts to eliminate Moscow's war machine. An executive order will allow the US to impose sanctions on financial institutions aiding Russia in securing equipment and other goods needed for fighting in Ukraine. Banks under sanctions will be denied access to the US financial system. Russia has been using financial intermediaries to evade sanctions and export controls. The Biden administration will work with US and European banks to inform them about the new rules and ensure they communicate with their correspondent banks to avoid sanctions.
-China's National Press and Publication Administration has proposed guidelines to curb excessive gaming consumption, leading to substantial losses for China's largest online gaming companies. Tencent, the largest company by market capitalization, experienced a 12.4% drop, the sharpest one-day drop in 15 years. Rival NetEase's shares fell over 24% in Hong Kong, causing the Hang Seng Tech index to drop 4.4%, bringing year-to-date losses to over 14%. South Korean gaming developer Krafton also fell over 13%.
NEW YORK TIMES
-The US is now isolated over Gaza. The United States finds itself in a defensive crouch and at odds with even staunch allies like France, Canada, Australia and Japan. The UN has passed a resolution on Gaza aid with the US abstaining from vote. The measure called on Israel and Hamas to pause the fighting to allow for the delivery of more aid but did not impose a legally binding cease-fire.
-The Supreme Court has declined to fast-track case on Trump’s immunity defense. Jack Smith, the special counsel in the federal election case against Donald Trump, had urged the justices to move quickly.
-If the Colorado Supreme Court is right that Donald Trump is constitutionally ineligible to run for president, fundamental values are in severe tension.
-Donald Trump’s long fascination with genes and bloodlines is getting new scrutiny after a recent remark he made.
-The Wisconsin Supreme Court said the state’s heavily gerrymandered legislative maps that favored Republicans were unconstitutional.
-Seeking a Big Edge in A.I., South Korean Companies Think Smaller. The firms lag behind their U.S. counterparts, but their focus on non-English languages could help loosen the American grip on artificial intelligence.
-Apple has discussed multiyear deals to train its generative AI systems on publishers’ news articles.
-Brexiteers Vowed to ‘Take Back Control’ of U.K. Borders. What Happened? Record numbers of immigrants came legally to Britain from outside the E.U. in recent years. Some on the right call that a “Brexit betrayal.”
-Hunter Biden text cited in impeachment inquiry is not what gop suggests. A 2019 message from President Biden’s son alluded to giving his father half his salary. The back story does not support assertions of corruption.
-This Antarctic Octopus holds a warning about rising sea levels. An ice sheet appears to have melted about 120,000 years ago, when temperatures were similar to today, according to a study that mapped octopus movements.
NY POST
-A recent poll shows Andrew Cuomo easily beating Eric Adams in a primary for New York City mayor. Some New Yorkers may forget the allegations against Cuomo of sexual misconduct and abuse, and the COVID-19 deaths due to his directive ordering nursing homes to take in COVID-positive patients. However, Cuomo is not the hero some may think he is, but a major reason the city is in peril.
-Hyperloop One, a high-speed train startup endorsed by Elon Musk, is set to shut down due to project delays and sex-harassment claims. The company has reduced its workforce to around 100 and will oversee asset sales before their employment ends on December 31. Hyperloop raised over $450M since its inception in 2014 and aimed to modernize transportation technology with a train that traveled at airplane-like speeds.