FT : Donald Trump says Netflix market share ‘could be a problem’ for $83bn Warne

Donald Trump says Netflix market share ‘could be a problem’ for $83bn Warner deal
US president says he will be involved in decision over media merger

Donald Trump said Netflix’s “very big market share” in streaming video could pose a problem as it seeks regulatory approval for its blockbuster $83bn deal to acquire Warner Bros. 

“They have a very big market share and when they have Warner Brothers that share goes up a lot,” he said. “It could be a problem,” he added. 

The combination of Warner’s HBO MAX service and Netflix would put the company over the 30 per cent US market share threshold. But Netflix is expected to argue that other streaming services, including YouTube, should be considered when surveying the marketplace.

Netflix emerged as the winner of the Warner Bros auction on Friday, topping rival offers from Paramount and Comcast. The union representing Hollywood screenwriters was among the industry voices arguing that the deal should be blocked. 

Trump said he “would be involved in that decision” about whether to clear the transaction. When AT&T struck a deal to buy Time Warner during the first Trump administration, there was a lengthy battle with the justice department before it was finally approved. The Netflix-Warner deal is also expected to receive scrutiny from the Department of Justice. 

Trump said Ted Sarandos visited him at the Oval Office for a meeting last week, adding that the Netflix co-chief executive did not give him any guarantees about the Warner deal when they met.  

In his brief remarks on Sunday, Trump called Sarandos a “great person” and compared him with Louis B Mayer, the movie mogul who co-founded the Metro-Goldwyn-Mayer studio in 1924.

“I think he’s fantastic,” he said of Sarandos. “I have a lot of respect for him. In the history of Hollywood you could say there’s been nothing like what he’s done. But it is a big market share, there’s no question about it.”

Netflix’s winning bid surprised many in Hollywood. A rival bid from Paramount was viewed as more likely to receive regulatory approval because the company is backed by Larry Ellison, the multibillionaire co-founder of Oracle and a Trump supporter. 

Trump in October appeared to advocate for Paramount to win the Warner auction, telling reporters the Ellisons are “friends of mine”.

Sarandos, a Democrat whose wife served as an ambassador to the Bahamas during the Obama administration, has also visited Trump at Mar-a-Lago since he was re-elected last year. 

The Netflix-Warner deal is not expected to close until the third quarter of 2026 or later. It is subject to regulatory approval in the US and in Europe. 

The US president was asked about the deal as he prepared to host the Kennedy Center Honors, where he was scheduled to recognise Sylvester Stallone, Michael Crawford, Gloria Gaynor, George Strait and the rock band Kiss.

Variety : Jane Fonda Calls Netflix-Warner Bros. Acquisition a ‘Catastrophic Busi

Jane Fonda Calls Netflix-Warner Bros. Acquisition a ‘Catastrophic Business Deal’ That ‘Threatens the Entire Entertainment Industry’

Jane Fonda is speaking out against Netflix‘s earthshaking move to acquire Warner Bros. Discovery, calling the $82.7 billion deal a “catastrophic” development that threatens to “destroy our creative industry.”

Fonda released her statement against the acquisition on Instagram through her Committee for the 1st Amendment organization. She wrote on Friday, “Today’s News that Warner Bros. Discovery has accepted a purchase bid is an alarming escalation of the consolidation that threatens the entire entertainment industry, the democratic public it serves and the First Amendment.”

She continued, “Make no mistake, this is not just a catastrophic business deal that could destroy our creative industry. It is a constitutional crisis exacerbated by the administration’s demonstrated disregard for the law.”


Directing her message to the powers that be, Fonda demanded the Justice Department and state regulators abstain from using their legal standing to “extract political concessions that influence content decisions or chill free speech.” In a sidebar to “Netflix and any company that becomes involved in this destructive deal,” Fonda wrote that it’s their “responsibility to defend our rights, not trade them away to pad your pockets. We know there will be enormous pressure to acquiesce, it is critical you stay strong.”

Hollywood at large has been mostly sour on the Netflix-Warner Bros. deal, with lawmakers, film producers and industry guilds alike all voicing concerns in the last week. Many expect the deal to cause seismic shifts in the entertainment industry, especially in the theatrical sector.


After months of deliberation, Netflix acquired Warner Bros. Discovery on Friday, outbidding David Ellison’s Paramount Skydance and Comcast. The cash and stock transaction is valued at $27.75 per share, and the deal is expected to close within 12-18 months, according to Netflix and WBD.

FT : Fed expected to cut rates despite deep divisions over US economic outlook

Fed expected to cut rates despite deep divisions over US economic outlook
FT-Chicago Booth survey cites concern among officials about impact of weak jobs market and high prices on Americans

The Federal Reserve is set to cut interest rates next week despite deep divisions among its officials on the direction of the US economy, according to leading academic economists.

The rate-setting Federal Open Market Committee meets on Tuesday, with the vast majority of investors expecting the US central bank to lower US borrowing costs by a quarter point for the third meeting in a row the following day.

Most of the economists polled by the Chicago Booth Clark Center on behalf of the Financial Times agree with the markets’ view, with 85 per cent of the 40 respondents agreeing that the Fed will ease borrowing costs in response to fears the US labour market is weakening.

However, they think the committee will almost certainly be divided on a move that looks set to leave the US central bank’s benchmark federal funds target range at its lowest level in more than three years. This comes amid mounting concerns that ordinary Americans are facing affordability pressures due to higher costs.


FOMC members have spent the run-up to the final vote of 2025 debating whether to prioritise a weakening US labour market over an inflation rate that has been above the central bank’s 2 per cent goal since the spring of 2021.

Several regional Fed presidents have said they did not support the October cut but would be willing to back another one next week because of concerns that inflation in the dominant services sector was creeping up. This is at a time when the full impact of US President Donald Trump’s tariffs on the price of US imports is yet to be felt, they say.

New York Fed president John Williams signalled late last month that he and other leading members of the committee would back another quarter-point cut as insurance against a further slowdown in the US labour market.


Just one respondent to the FT-Chicago Booth poll said the 12 voting members of the FOMC would be able to overcome their differences and back a rate cut in unison. Sixty per cent of respondents thought there would be two dissents, with another third expecting three or more.

“If the rationale for the dissent is that they are missing their inflation target, then this can improve the credibility of the target,” said Stephen Cecchetti, a professor at Brandeis University. “At the same time, significant division — whether or not they vote against the decision — raises questions about the FOMC’s collective goals.”

There have not been more than two dissenting votes cast at an FOMC meeting since September 2019. The last time there were more than three was in 1992.


The most likely candidate to vote against a rate cut is Kansas City Fed president Jeff Schmid, who also dissented in October. Susan Collins, president of the Boston Fed, and Chicago’s Austan Goolsbee have indicated that they could join Schmid in voting against the consensus this time around.

Fed governor Michael Barr has also signalled he believes there is little room to lower borrowing costs. His counterpart on the board, Stephen Miran, will almost certainly call for a jumbo 50 basis point cut again.

Miran, a close ally of Trump, shares the US president’s desire for borrowing costs to fall rapidly.

After several strong years, many on the FOMC think the US labour market is beginning to cool. The latest Bureau of Labor Statistics report showed an unexpectedly high number of jobs were added to the world’s largest economy in September. But unemployment has edged up, and more recent private sector data shows US businesses are firing more workers.


Many respondents to the poll agreed with the FOMC’s hawks that the US central bank needed to focus more on the fight against inflation than maintaining a strong labour market.

Forty-eight per cent thought that controlling prices should be the priority, against 5 per cent who thought the focus should be on jobs. The rest wanted both sides of the Fed’s dual mandate to be given equal weight.

“I would prefer that the US drop the dual mandate in favour of one that solely focuses on inflation,” said Deborah Lucas, a professor at the Massachusetts Institute of Technology. “A direct link for a strong effect of monetary policy on employment has not been empirically well established.”

While hawks also point to relatively strong US growth, doves highlight that the US economy is heavily reliant on a boom in AI and AI-adjacent activity that has driven capital spending and helped prop up retail spending on the back of higher valuations for tech stocks.

The respondents were also asked what a 20 per cent drop in the value of the benchmark S&P 500 stock index would do to the US economy. A third said the subsequent fall in consumption and investment would trigger a US recession, while almost two-thirds said US growth would weaken, but not by enough to trigger a serious slowdown.

Variety : The Safer Bet: Why David Zaslav and the WBD Board Favored Netflix in a

The Safer Bet: Why David Zaslav and the WBD Board Favored Netflix in a Turbulent Time for Legacy Hollywood

After a few marathon days of telephone and video calls, emails and text message chains, the $82.7 billion agreement for Netflix to buy Warner Bros. and HBO Max was clinched Thursday night around 10 p.m. ET.

But there was no chance for high fives or a group huddle among the managers of the freshly betrothed media giants. In modern fashion, the sale negotiations were mostly conducted at arm’s length via phone and electronic communications, with Netflix and WBD executives and legal teams spread across New York, Los Angeles, Washington, D.C. and other locales.

Among the final hurdles to securing the initial agreement was WBD’s insistence that Netflix commit to a record-setting $5.8 billion breakup fee should the deal run into resistance, regulatory or otherwise.

Opposition to the deal assembled, swiftly and fiercely, from unions, consumer watchdogs and politicos on both sides of the aisle. “This merger must be blocked,” the Writers Guild of America urged on Friday.

In the end, about six weeks after Paramount CEO David Ellison’s pushy overtures put the studio in play, the Warner Bros. Discovery board got what it wanted – a pedigreed, market-leading buyer with firm financial foundation and a clear strategic need to make the most of Warner Bros. and HBO.

On the surface, the Netflix deal would seem an echo of the AOL-Time Warner transaction completed in January 2001. A highflying beacon of what was then called “new media” buys a legacy entertainment company with brands that seem to be ripe for exploitation in new ways.

The AOL takeover of Time Warner, of course, was nothing less than disastrous. The grand thesis of the merger unraveled in barely a year’s time after the dot-com bust and the 9/11 terrorist attacks. This time around, the Netflix acquisition signals the (near) conquest of Southern California’s most dynamic industry by one of the world-beating tech giants that sprang from Northern California.

The WBD board leaned toward the Netflix bid because the company has such a strong balance sheet. Its stock has been one of the most consistent and durable performers over a turbulent decade for media and entertainment. Unlike AOL in 2001, when its growth was powered by offering basic dial-up internet access, Netflix has a strong underlying business model that can’t easily be outmoded by new tech or undercut on price by rivals. TV shows and movies are, after all, very sticky – ask any “Bridgerton” or “Strangers Things” fan.

Netflix’s long-horizon outlook stands in contrast to Paramount Skydance, which began its pursuit of WBD shortly after Skydance Media sealed its $8 billion acquisition of Paramount Communications. It’s a sign of the times that the parent company of Paramount Pictures and CBS – two entertainment institutions that have been around for more than 100 years – are a bigger risk than a much younger venture that has been in the original programming game for about a dozen years.

Paramount Skydance faces an uphill climb in turning around the fortunes of its studio and legacy cable networks and restoring strong free cash flow. The company is also carrying more debt on its balance sheet than Netflix, proportionate to its earnings power. All of these factors were a consideration for the WBD board. In the case of a black-swan event for the macro economy, how would Paramount fare?

The lack of certainty there helped sway WBD board members that Netflix was the better fit and safer option for shareholders than Paramount or even Comcast, which was the third contender for the studio in the whirlwind bidding process that began in earnest in early November. The process quickly crystallized into a test of wills between two Davids – Ellison and WBD CEO David Zaslav. There’s been endless industry chatter that Zaslav was angling for a deal that left him with a high executive perch in the resulting company. Ellison slammed the WBD leader in a legal letter sent to Zaslav on Thursday accusing him of having “abandoned the semblance and reality of a fair transaction process” in order to steer the deal to Netflix.

WBD board members were already put off by Paramount’s unsolicited offer and the whispers around Hollywood and D.C. that only Ellison and his familial connections to the Trump White House would be able to secure regulatory approval for such a big merger.

But Donald Trump is famous for working his phone, and Netflix co-CEO Ted Sarandos is definitely in his contacts. President Trump respects Netflix’s rags-to-riches growth as a modern American business success story. And while Trump often expresses hostility to Hollywood as a bastion of touchy-feely liberalism, the reality is that he has long been fascinated by the industry, especially after he became a TV star via NBC’s “The Apprentice.”

Sources close to the situation emphasize that even in Hollywood, ego takes a back seat to business rationale when the enterprise value tops $82 billion.

Netflix and WBD leaders including Zaslav are preparing to make a strenuous case for the consumer benefits of the deal as well as the positive impact that the enlarged company will have on the creative community.

Zaslav, Sarandos and Netflix co-CEO Greg Peters are bracing for a long fight. The leaders are projecting a closing timeline of as much as 18 months given the scrutiny on the companies and the political crosscurrents.

There are points to be gained for elected officials on the left and right by railing against another big media merger. That could make for a long drawn-out battle in Washington with the Federal Trade Commission and Justice Department. The FCC is not expected to play much if any role in this review because of the nature of assets involved – WBD does not own broadcast TV stations (a la Paramount) or cable systems (a la Comcast).

Sources said the Netflix and WBD teams are confident that on the antitrust merits it’s hard to prove the enlarged company would have anything close to monopoly power over the content marketplace –particularly at a time when Netflix, HBO and others have for-real competition for the hearts and minds of younger viewers from likes of YouTube and TikTok.

In their first presentations about the deal on Friday, Netflix and WBD emphasized how little overlap there is between the companies. Netflix has stated its intention to maintain HBO Max and Warner Bros. studio operations as standalone businesses under the Netflix tent. Anyone who has experienced a Hollywood merger in recent decades knows that no matter what is said in the moment, the long-term arc of any business leans toward streamlining, efficiencies and eliminating redundancies. Consolidation will eventually affect some on the list of accomplished senior executives who are spread among Netflix, Warner Bros. and HBO.

For the most senior executive at WBD, however, the future does seem to be coming into focus. Sarandos and Peters are firmly installed as Netflix co-CEOs. Zaslav has been telling friends and colleagues that he’s focused on helping to get the merger to the finish line and to deliver a healthy Warner Bros. and HBO Max to Sarandos when it’s time to hand over the keys.

If the deal goes through as it was outlined to investors today, Zaslav will eventually lose his CEO perch but he’ll gain many, many millions (as will a host of senior WB and HBO executives through stock options), as well as the satisfaction of having gone out on his own terms.

FT : Should Europe fund Ukraine? It can’t easily afford not to

Should Europe fund Ukraine? It can’t easily afford not to
Funding Kyiv’s war effort is a better return on bloc’s buck than having to deter a victorious Moscow itself

Europe is struggling to come up with the cash to fund Ukraine’s war effort. Its debt-laden countries would rather not stump up themselves. And the European Commission is still attempting to get full support for its proposal to use frozen Russian assets to back up to €210bn in loans. The danger, however, is that inactivity will be far more costly.

Think of this for a moment as a purely financial question. On the one hand, Europe commits to funding Ukraine’s war efforts for, say, four years, whether through one of the various schemes to leverage frozen Russian assets or, at a pinch, with member states putting up the money themselves. Estimates over how much this would cost vary: the IMF calculates a financing gap of $136bn to 2029 while a report from consultancy Corisk and the Norwegian Institute of International Affairs reckons between €522bn and €838bn.


The pay-off comes if Ukraine can consequently push Russia into a reasonable ceasefire. President Vladimir Putin would hardly be in a position to demand the return of Russia’s €210bn of frozen assets, meaning some or all of the initial outlay would be recouped. And, while Europe has good reasons to raise its defence spending anyway, Putin would be less likely to pose a further military threat. 

Now consider the alternative path, where Europe fails to get its act together. Ukraine is then more likely to capitulate to a ceasefire on Russia’s terms, which could see Putin shake off current sanctions and perhaps even return to the G8. Europe, facing a wealthier and emboldened Russia, would be under enormous pressure to spend furiously on rapidly bolstering its defences.

The costs of this scenario, too, could vary widely. Corisk thinks that a Russian victory would cost Europe between €1.2tn and €1.6tn over four years, including raised defence spending and the probable influx of refugees. During the cold war, UK defence spending peaked in 1955-56 at 7.6 per cent of GDP. Getting Europe to that level from its current 1.6 per cent entails extra spending of over $1tn a year.

These are simplified outcomes, and there are others that lie somewhere in between. Russia could gain the upper hand, only to then return to peaceful and profitable relations with its neighbours. But the EU would be unwise to bet on that. It is also possible that Ukraine could get a slug of cash, fight a few more years, and still fail to get an advantage.

But even ascribing a non-zero probability to these outcomes, funding Ukraine’s war effort is a better return on Europe’s buck than having to deter a victorious Russia itself. War transcends pecuniary decisions, of course, but in so far as finance matters, the logical course is fairly clear.

WSJ : Five Reasons Investors Are Feeling Good About Stocks Again

Five Reasons Investors Are Feeling Good About Stocks Again
Recent gains reflect more than just optimism about artificial intelligence


Anxiety has given way to hope on Wall Street.

Stocks are back near records, recovering from a slump spurred by fears that the excitement about the artificial-intelligence boom has outstripped the potential profits.

Optimism about AI has proved durable. But other important factors are also powering gains. Here’s a look at some of the reasons investors expect that the rally could go further from here:

Stock valuations could be worse
Stocks currently look very expensive by some measures, such as traditional price-to-earnings ratios. Still, even those ratios remain below their peaks reached in the 1990s dot-com boom. And stock valuations look less stretched in other ways.

Many Wall Street analysts think the best way to value stocks is to compare their earnings yield—or earnings-to-price ratio, expressed as a percentage—with yields on ultrasafe government bonds. The additional yield shows how much investors are being compensated to hold the much riskier instrument.


One popular version of this metric, known as the “excess CAPE yield,” uses S&P 500 companies’ average earnings from the past 10 years and adjusts both those earnings and the 10-year Treasury yield for inflation.

As of November, it stood at 1.7%. That is low by historical standards—suggesting the high prices of stocks have shrunk the reward for owning them over bonds. But it is hardly unprecedented and actually up from 1.2% in January, thanks to a decline in the 10-year Treasury yield driven by a cooling labor market and the resumption of Federal Reserve interest-rate cuts.

Economic growth is supporting earnings
Ultimately, stocks are closely linked to the near-term outlook for consumer spending.

Right now, there are some concerns about the economy. Job growth has slowed significantly and the unemployment rate has ticked higher—enough to push the Fed to cut rates.

But investors and economists still aren’t that worried. Many believe that job growth has slowed largely because of sharply reduced immigration. Holiday spending is off to a robust start, and weekly unemployment claims remain stubbornly low.


All of that should be good for companies’ bottom lines. Analysts expect 2026 to be another great year for tech companies in particular, even as they spend huge sums on AI infrastructure.

It isn’t just about big tech stocks
Tech companies including Nvidia, Microsoft and Meta Platforms have become such giant components of the S&P 500 that any doubts about the AI future will likely result in losses for not just tech stocks but also the entire index.

Still, the outsize gains for big tech companies don’t mean that other types of stocks are doing poorly. The Russell 2000 index of smaller company stocks reached a record high last week. The S&P 500 equal weight index—which gives the same influence to each company regardless of size—is also near a record, providing hope that a tech-centered selloff wouldn’t be disastrous.


“Massive tech behemoths are dominating the headlines and all the investment flows and analysis, but other companies are also executing,” said Michael Antonelli, a market strategist at Baird.

Inflation expectations are anchored
One lingering concern for investors is that inflation remains comfortably above the Fed’s 2% target, with the central bank’s preferred gauge sitting at 2.8% as of its most recent reading.

Sticky inflation could make it harder for the Fed to keep cutting interest rates. If the Fed—potentially under greater sway from President Trump’s appointees—cuts rates anyway, investors could lose confidence in its commitment to stable prices, sending shock waves through markets.


Investors, though, are confident that inflation pressures are easing. Inflation expectations, after jumping earlier this decade, remain anchored. That can be seen in the spread between yields on nominal government bonds and those of Treasury inflation-protected securities, or TIPS—a gap known on Wall Street as the break-even inflation rate.

Prospects for longer-run economic growth have improved
Investors also have a big-picture reason to feel good. The economy, whatever it does over the next several months, looks to be in much healthier shape than it was for more than a decade following the 2008-09 financial crisis.

For years, the Fed kept short-term interest rates at zero—translating to negative real, or inflation-adjusted, rates—in an effort to jump-start moribund economic growth. Investors and economists fretted about a new era of “secular stagnation” that would hurt financially conservative savers and make it harder for the Fed to fight recessions.


Negative yields on 10-year TIPS showed investors expected rates to stay at rock-bottom levels for the foreseeable future. Now, though, those yields have stabilized at precrisis levels. Analysts ascribe that partly to higher inflation and larger federal budget deficits but also to hopes for stronger economic growth—driven by private-sector investment in areas such as AI infrastructure and renewable energy.

“For a lot of investors, you have higher confidence to invest in general whether it’s equities or fixed income when real yields are positive,” said Thanos Bardas, senior portfolio manager and co-head of investment grade at Neuberger Berman. “It looks like the economy is operating at potential or above potential.”

FT : Friedrich Merz seeks to reset relations with Benjamin Netanyahu in first vi

Friedrich Merz seeks to reset relations with Benjamin Netanyahu in first visit to Israel
German chancellor makes efforts to mend ties after disagreements with Israel on Gaza conduct

German Chancellor Friedrich Merz sought to repair relations with Israel when he met Israeli Prime Minister Benjamin Netanyahu on Sunday, after months of disagreements over Israel’s conduct in Gaza.

Merz has long been a strong defender of Israel, but he shifted his stance amid mounting international censure over civilian deaths and spreading famine during Israel’s war in Gaza. Earlier this year he paused exports of some weapons to Israel, straining relations with Netanyahu.

In a joint press conference in Jerusalem on Sunday, the chancellor reiterated Germany’s commitment to Israel’s “existence and security”. “This belongs to the unchanging essence of our relationship. This applies today, this applies tomorrow and it applies forever.”

However, he did not renew his invitation for Netanyahu to travel to Germany, saying that a visit was not currently “at issue”. In February Merz had told Netanyahu that he would be invited to Germany despite an arrest warrant from the International Criminal Court for war crimes.

Netanyahu acknowledged that the threat of arrest still hung over him in various “well meaning countries”, and urged the ICC to “get rid of these ridiculous charges”.

Merz said in May that Israel’s military operations in Gaza could no longer be justified solely as a fight against Hamas terrorism. His move in August to halt exports of weapons that the Israeli army could use in the strip took his own party by surprise, and was seen as a historic departure from Germany’s postwar tradition of unwavering solidarity with Israel. Netanyahu at the time expressed his “disappointment”.

Berlin ended the temporary pause on weapons exports last month, saying the situation had “stabilised” following the peace deal brokered between Israel and Hamas by Donald Trump. The two-month truce has so far held, despite repeated violent clashes between the sides amid mutual recriminations over violations.

Merz said on Sunday that he decided to impose the controls in response to the “special circumstances” at that point in the conflict. “The circumstances have changed and therefore this decision no longer applies.”

Netanyahu on Sunday said he expected “to move into the second phase” of the agreement “shortly”, which could see a further withdrawal of Israeli forces out of Gaza, Hamas’s disarmament and the introduction of an international peacekeeping force and new governing structures into the war-torn enclave.

The Israeli leader again rejected the establishment of a Palestinian state and admitted that he and Merz “have a different point of view” on the issue. Germany supports a two-state solution but has insisted that recognition of a Palestinian state should come at the end of the peace process.

Merz also reaffirmed Germany’s commitment to a two-state solution when he met the King of Jordan on Saturday, so that “Israelis, Palestinians and Arab neighbours can live together in security, peace and freedom”.

He conveyed the same message in a call with Mahmoud Abbas on Saturday, urging the Palestinian Authority leader to “urgently tackle necessary reforms” in order to play a “constructive role in a post-conflict phase”.

Merz’s trip is the first visit by a European leader to Israel since the ceasefire in Gaza came into effect in early October. While his two predecessors Olaf Scholz and Angela Merkel travelled to Israel within three months of taking office, it has taken seven months for Friedrich Merz to arrange his inaugural visit.

The trip comes after the arrival in Germany last week of the Israeli-built Arrow anti-ballistic missile defence system, in a $4.6bn deal considered the largest military export in Israeli history.

“Not only does Germany work in the defence of Israel but Israel . . . works for the defence of Germany. That is a historical change,” Netanyahu said on Sunday.

>>> weekend papers Suammry

FINANCIAL TIMES
-Hollywood's traditional leaders once scoffed at the potential of Netflix to disrupt the entertainment industry, likening its prospects to the Albanian army's chance of global dominance. However, Netflix has now secured an $83B deal to acquire Warner Bros, a major player in the industry and the modern successor to the company once led by Jeff Bewkes. This acquisition marks a significant development in Netflix's transformation into a major force in Hollywood, boasting a market value of $450B. The deal reflects an underestimation by traditional entertainment executives of Netflix's capabilities, as evidenced by a prediction of less than 5% chance of such a deal occurring prior to the announcement. Co-CEO Ted Sarandos described the acquisition as a "rare opportunity" that demanded action, demonstrating Netflix's strategic maneuvering and assertive positioning within the entertainment sector.
- “We see this as a healthy pullback in crypto and bitcoin,” said Cantor Fitzgerald crypto analyst Brett Knoblauch, who anticipates bitcoin's price to exceed $1.5M per token eventually. However, a recent sell-off has resulted in a 25% decline in bitcoin's value in two months, raising concerns voiced by Phong Lee, CEO of Strategy, about a potential “bitcoin winter.” This sell-off has wiped over $1T from the total market cap of approximately 18,000 digital tokens, attributed to uncertainties regarding US interest rates and high valuations in technology stocks. Bitcoin's decline from nearly $126,000 on October 7 to just above $84,000 highlights contrasting signals, especially given US President Donald Trump's supportive stance towards the crypto industry since January, including appointing crypto-friendly leaders and creating a national bitcoin reserve. Despite earlier gains, bitcoin is down 4% this year.
-SpaceX is negotiating a share sale that could value the company at $800 billion, surpassing OpenAI to become the world's highest-valued startup. Recent communications with investors indicate interest in a sale priced at double the current valuation of $400 billion. SpaceX has conducted secondary share sales approximately every six months, allowing existing investors and employees to sell their stakes. This new valuation would re-establish SpaceX as the most valuable private tech firm, following its leadership in commercial rocket development and ownership of the Starlink satellite internet service.
-The EU Commission’s plan to use frozen Russian assets to support up to €210B in loans to Ukraine is testing the EU's political and legal structures while posing potential risks to the euro's status as a global reserve currency. The European Commission's proposal involves borrowing against Russian central bank assets held in Euroclear, with Ukraine repaying only after Russia pays reparations. Legal advisers claim this approach does not constitute asset confiscation, but concerns persist, particularly from Belgium, about locking in sanctions. Investors warn that leveraging these frozen assets could heighten political risks for euro assets and undermine their appeal amidst rising geopolitical tensions. Kenneth Rogoff emphasizes the potential threat to the euro's safe status alongside concerns about Russian incursions into Europe. Despite the euro's rise this year, some investors feel this strategy could lead to a reassessment of the euro's reliability.
-President Donald Trump's initiative to end automatic citizenship for those born in the US will be reviewed by the Supreme Court, following an appeal against a lower court ruling that blocked the enforcement of his executive order. This policy has sparked significant debate as it challenges the Fourteenth Amendment, which grants citizenship to all persons born in the US. The Supreme Court is expected to make its ruling by June, alongside decisions on Trump's powers to dismiss Federal Reserve officials and to impose tariffs using emergency powers. This will mark the second Supreme Court consideration of the birthright issue this year; a prior ruling had prevented lower courts from stopping Trump's order, but did not address its legality. Subsequent to that ruling, a class-action lawsuit was filed, resulting in a New Hampshire district judge blocking the policy, prompting the Trump administration to seek a review of this decision.
-The French army claims to have intercepted five drones over a nuclear submarine base on the north Atlantic coast, amidst heightened concerns over foreign interference at sensitive locations in Europe. Defense Minister Catherine Vautrin confirmed the incident, emphasizing that all military base overflights are prohibited in France.
-Discord within Donald Trump's Republican party has emerged after disappointing off-year election results, leading to protests against Speaker of the House Mike Johnson's leadership. A faction of Republican congresswomen is challenging Johnson, revealing anxiety about the party's chances in the upcoming 2026 midterm elections. Johnson is facing significant internal criticism, with Representative Elise Stefanik labeling him a "political novice," while others voice frustration over his inaction on issues like a stock trading ban. The calls for immediate action reflect growing impatience within the party and among their constituents.
-Dario Amodei, who left OpenAI in 2020, co-founded the AI start-up Anthropic, which is projected to generate around $10B in annual revenue and is in discussions for funding at a valuation exceeding $300B. Amodei believes he can build superior AI and that his approach will enhance safety. He is regarded for his blend of technical skills, product acumen, and sales ability, making him a unique CEO. Amodei has a background in physics and biophysics, having worked at Baidu and Google Brain before founding Anthropic.
- US natural gas prices have surged over 70% in the past year, peaking at $5.29, the highest since December 2022 during the energy crisis linked to Russia's invasion of Ukraine. This price increase, driven by high demand for heating amid cold temperatures, contrasts sharply with Donald Trump's claims of reducing energy costs. The boost in LNG exports and domestic gas production has raised concerns among consumers and industry about worsening living costs and competitiveness. Analyst Clark Williams-Derry notes that increased exports lead to higher and more volatile gas prices domestically.
-Groups of Russian holidaymakers are being relocated from Isla Margarita, Venezuela, to Cuba due to security threats posed by a US military build-up affecting Venezuelan airspace. Following sanctions following Russia's invasion of Ukraine, Russians had been vacationing on the island. However, flight cancellations by major Russian tour operator Pegas have now prompted the rerouting of travelers to Varadero, Cuba, amidst concerns for civilian aircraft safety. Some travelers in Venezuela will also be evacuated on special flights at the end of their vacation.
NEW YORK TIMES
-Russian President Vladimir Putin announced the capture of the strategic Ukrainian city of Pokrovsk, although contested areas remain according to military assessments. Analysts suggest Russia is gaining an advantage, positioning itself for negotiations while Ukraine appears weak but not ready to concede. Following discussions with U.S. officials, Putin indicated further preparations for winter combat. Concurrently, Russia launched extensive drone and missile attacks across Ukraine. Recent Russian military advances include encircling Myrnohrad and making progress in Zaporizhzhia and near Kupiansk and Siversk.
-President Trump's updated National Security Strategy emphasizes a profit-driven foreign policy that prioritizes American corporate interests over traditional notions of democracy and freedom. The document reflects a shift from the U.S. being a global promoter of freedom to a nation focused on peaceful commercial relations, stating it will avoid imposing democratic changes on other countries. This marks a departure from the aggressive stance of his first term, framing international relations as a contest between repressive systems and free societies.
-The Supreme Court's conservative majority recently upheld Texas' use of voting maps designed to disadvantage Democrats in the upcoming 2026 elections, marking a significant shift in the court's approach to partisan gerrymandering. Previously, the court acknowledged the potential unconstitutionality of extreme gerrymandering but now embraces it as a legitimate political strategy, criticizing lower courts for questioning the state's motives and emphasizing legislative good faith.
-Before President Trump's tariffs, the Chicken of the Sea factory in Lyons, Ga., operated at full capacity, stockpiling canned tuna to counter tariffs. However, after tariffs were imposed, production slowed, reducing operating days and depleting inventory. Executives indicate they may have to raise prices without tariff relief, warning of impending inflation. Recently, exemptions for certain imports sparked hope, leading the company and Georgia lawmakers to seek exclusions for tarred items like foreign frozen tuna, which lacks American substitutes.
-Netflix reaffirmed its commitment to honor the Warner Bros. business model by continuing to release films in theaters for exclusive runs, as stated by co-CEO Ted Sarandos during a conference call with investors. Sarandos emphasized that plans for theatrical releases will remain consistent, prompting skepticism among Hollywood insiders due to his previous remarks questioning the viability of theaters. The entertainment industry, already affected by the pandemic, strikes, and job losses, faces an ongoing contracting job market, which has led to significant layoffs.
-Saudi Arabia, which has banned alcohol for over 70 years, has recently allowed the sale of alcoholic beverages to wealthy non-Muslim foreigners holding a "premium residency" permit in an unmarked liquor store in Riyadh. This change, affecting only those with high status, marks a shift in the kingdom's social policy, which typically involves silence and ambiguity regarding such issues. The store was previously exclusive to diplomats exempt from the ban, leading to a line of cars forming outside as news of the sales spread.
-Beijing's National Security Office in Hong Kong summoned foreign journalists, including those from The New York Times, to caution them about their coverage of a deadly fire at Wang Fuk Court. Officials criticized some foreign media for allegedly distorting facts and undermining government efforts. They warned that consequences would follow if the national security law was violated, asserting that 'press freedom' does not permit interference in China's internal affairs. This engagement highlights the growing regulatory role of the national security office over public discourse and reflects heightened scrutiny of international media since the implementation of the national security law.
-In response to Japan's support for Taiwan, China has escalated punitive measures, urging tourists to avoid Japan, halting Japanese film releases, canceling anime festivals, and blocking concerts by Japanese artists. These actions follow comments by Japanese Prime Minister Sanae Takaichi, who suggested military intervention if China attacks Taiwan, prompting China to demand a retraction. Despite these tensions, Takaichi has expressed support for domestic artists and emphasized the importance of Japanese cultural exports like anime and video games, while seeking to clarify Japan's longstanding position on Taiwan, which China has deemed inadequate.
-Industrial seabed mining is linked to a significant reduction in the abundance and diversity of deep-sea life, according to a recent study funded by The Metals Company. Published in Nature Ecology and Evolution, the research by the Natural History Museum in London indicated a 37% decline in the number of small marine animals, such as worms and crustaceans, in areas impacted by mining activities. Additionally, the study noted a 32% drop in species variety post-mining test.
NEW YORK POST
-Socialist Mayor-elect Zohran Mamdani has chosen Zakiyah Shaakir-Ansari, a radical activist who admires cop-killer Assata Shakur, for his youth and education transition committee. Shaakir-Ansari, co-executive director of the Alliance for Quality Education, expressed a desire to converse with Shakur during an interview, highlighting her belief that Shakur has valuable insights to offer. Shakur, convicted for the murder of New Jersey State Trooper Werner Foerster in 1973, became a fugitive after escaping prison and has lived in Cuba since 1984, where she was granted asylum. Mamdani's appointment has drawn significant criticism, especially from those affected by crime, who view it as support for a figure associated with violence against law enforcement.
-Scott Bessent and his team at the Treasury Department are confronted with the challenge of addressing the affordability crisis while shaping President Trump's policies on tariffs, taxes, and national debt. As the US midterm elections approach, Bessent aims to achieve two consecutive quarters of economic growth while managing rising living costs. He emphasizes that tariffs are designed to boost domestic manufacturing rather than act as consumer taxes. However, a Bank of America report indicates that tariffs have actually increased consumer prices, potentially leading to stagflation and limiting economic growth.

WSJ : Chinese Jets Locked Radar on Japanese Fighters

Chinese Jets Locked Radar on Japanese Fighters
Tokyo says incidents in international waters near Okinawa were dangerous, as diplomatic tensions with Beijing simmer

Chinese warplanes locked radar on Japanese military aircraft near Okinawa in two separate incidents, which Tokyo deemed dangerous.
The incidents occurred after Japanese Prime Minister Sanae Takaichi suggested Japan could be drawn into a conflict over Taiwan.
China has expanded its naval presence, with its aircraft carriers operating near Japan and Chinese ships traveling around Australia.

TOKYO—Chinese warplanes locked radar on Japanese military aircraft in the seas near the Japanese island of Okinawa on Saturday, in two separate incidents that Tokyo said were dangerous acts.

The incidents add to tensions between the two countries as China continues its diplomatic pressure campaign against Japanese Prime Minister Sanae Takaichi. She angered China’s ruling Communist Party when she said early in November that an attack on Taiwan could drag Japan into conflict in defense of itself and its allies, which include the U.S.

A Chinese J-15 jet fighter that took off from the Chinese navy’s Liaoning aircraft carrier on Saturday locked its radar on a Japanese F-15 that was investigating its presence in the airspace over international waters near Okinawa, Japan’s defense minister, Shinjiro Koizumi, said on his official X account. The incident occurred around 4:30 p.m. local time.

A second, similar incident occurred two hours later, Koizumi said, involving a different Japanese plane. Like many countries, Japan conducts air defense identification zone, or ADIZ, operations to identify aircraft coming close to its airspace.

No one was hurt, but Koizumi said Tokyo had lodged a protest with Beijing over the Chinese aircraft’s behavior. “This radar lock-on incident constitutes a dangerous act that exceeds the scope necessary for the safe flight of aircraft,” he said on X.

In a message posted Sunday on a People’s Liberation Army Navy social-media account and attributed to Senior Capt. Wang Xuemeng, the Chinese military said that in recent days Chinese aircraft were conducting routine flight training and that they were repeatedly approached by Japanese aircraft. Wang accused the Japanese pilots of acting unsafely.

China has the world’s largest navy and has been steadily broadening its maritime reach with large-scale drills far from Chinese shores. In June, both of Beijing’s in-service aircraft carriers were spotted operating in the Western Pacific close to Japan. During that deployment, a Japanese patrol was tailed by Chinese aircraft.

In late February and early March, three Chinese navy ships traveled through the Tasman Sea and around Australia.

The waters south of Japan would be an important theater in a Chinese military effort to take over Taiwan, a self-ruled democracy that Beijing considers its own territory, to be seized by force if necessary. Chinese leader Xi Jinping has set military modernization goals including fielding a force that could seize Taiwan by 2027, U.S. officials have said.

Responding to questions in the Japanese Parliament on Nov. 7, Takaichi said that in the hypothetical scenario of an attempt to seize Taiwan, Japan could be forced to deploy its military under the self-defense clauses of its largely pacifist constitution. She added that Japan’s longstanding position is that issues surrounding Taiwan should be resolved peacefully.

Beijing says Taiwan is a purely domestic affair and reacted with fury. It urged Chinese travelers to stay away from Japan, threatened to stop imports of Japanese seafood, and continues to wage a campaign against Takaichi herself in diplomatic circles and state and social media, where it accuses her of seeking to revive Japan’s wartime militarism.