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The White House is poised to unveil a plan to address the escalating energy demands of Big Tech, driven by AI and data center growth, by introducing an "emergency wholesale electricity auction." This initiative would lock tech giants into long-term energy contracts, ensuring they pay for a set amount of power regardless of consumption, to stabilize grid revenue and boost power generation. President Trump has highlighted the political sensitivity of rising electricity prices, which have surged over 5% since January 2025, impacting consumers and posing challenges for Republicans. The issue garners bipartisan concern, with governors from both parties involved, though specifics, including the role of PJM Interconnection, the largest U.S. power grid operator, remain vague. While Trump envisions tech companies producing their own electricity, firms like Microsoft and Meta are pursuing alternative strategies, such as collaborating with utilities and nuclear energy providers to prevent local price hikes. This growing problem of utility costs, tied to data center expansion, continues to shape political discourse, with implications for future elections and state-federal tensions over energy policy.
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Goldman Sachs (GS) and Morgan Stanley (MS) concluded 2025 with a robust fourth quarter, marking one of the strongest years for investment banking since the pandemic. Goldman reported a 12% rise in net income to $4.6 billion, fueled by a 25% increase in dealmaking fees to $2.57 billion and a record 41% surge in M&A advisory revenue. Its equity trading fees also hit an all-time high, up 25% to $4.3 billion. Morgan Stanley’s net income climbed 18% to $4.4 billion, driven by a 47% jump in dealmaking revenue and record full-year results, with equity trading fees up 28% for the year. Both firms outperformed many Wall Street rivals, as JPMorgan Chase saw a 4% decline in investment banking fees due to delayed deals, while Bank of America reported a slight 1% increase. Citigroup, however, posted an 84% surge in M&A advisory revenue. Leaders at Goldman and Morgan Stanley expressed optimism for continued momentum into 2026, citing strong client engagement and market conditions, despite varied performance across the sector.
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Salesforce (CRM) is grappling with a significant stock decline, dropping 10% year to date and 24% in 2025, making it the worst performer in the Dow Jones Industrial Average. Investor fears about AI innovations like OpenAI's ChatGPT disrupting traditional software companies are driving negative sentiment, despite Salesforce's efforts to counter these concerns. At Dreamforce, the company highlighted its AI initiative, Agentforce, which boosted productivity for clients like PepsiCo and Dell, and saw annual recurring revenue surpass half a billion dollars. Additionally, Salesforce raised its fiscal 2026 revenue and profit forecasts. However, JP Morgan analyst Mark Murphy predicts no stock recovery until the second half of the year, citing a challenging transition period. CEO Marc Benioff's closer ties with the Trump administration and controversial comments on deploying National Guard troops in San Francisco have not stemmed the slide. While broader software sector valuation resets pose challenges, activist investor Starboard Value remains supportive, praising Salesforce’s focus on profit margins and potential as an AI beneficiary, despite a recent $8 billion acquisition of Informatica that further pressured the stock.
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US stocks fell on Wednesday as investors grappled with mixed bank earnings, economic data, and geopolitical tensions. The Nasdaq Composite dropped 0.8%, the S&P 500 fell nearly 0.6%, and the Dow Jones Industrial Average declined 0.2%, reflecting a pullback from recent highs. Concerns over US military action against Iran, following President Trump's threats amid regional unrest, drove oil prices to a two-month peak and pushed gold and silver to record levels. Bank earnings painted a varied picture, with Bank of America and Wells Fargo reporting strong profits, while JPMorgan Chase underwhelmed. Economic indicators showed muted wholesale inflation and robust retail sales growth, reinforcing expectations of steady Federal Reserve rates. Meanwhile, markets remain on edge for a Supreme Court decision on Trump's tariff powers, which he has framed as critical to national security. In the retail sector, Saks Global filed for bankruptcy, highlighting broader industry challenges as consumers prioritize value amid rising prices. Geopolitical and economic uncertainties, combined with domestic policy debates, continue to shape a volatile market environment.
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Oil prices reached a two-month peak as geopolitical tensions in Iran drove market uncertainty, with Brent crude and West Texas Intermediate climbing over 10% in five trading sessions to above $66.10 and $61.80 per barrel, respectively. Protests in Iran, coupled with President Trump's warnings of severe repercussions and tariffs on countries dealing with Iran, have heightened risk premiums. Iran, a key oil producer with over 3 million barrels per day and control over the Strait of Hormuz—a vital route for 25% of global seaborne oil trade—remains a focal point. Recent Israeli airstrikes and Iranian retaliation have already spiked prices, while potential production disruptions loom due to unrest. Analysts highlight the market's vulnerability to supply shocks, referencing the 1979 Iranian Revolution when production nearly halved. Despite a current global oil oversupply of 3.6 million barrels per day, sustained disruptions in Iran could push prices higher. Trading activity in Brent crude options hit record levels, reflecting trader concerns over sudden price spikes amidst ongoing civil unrest and geopolitical risks.
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Bank of America (BAC) and Wells Fargo (WFC) reported robust fourth-quarter and full-year profit increases, with BAC's net income rising 12% to $7.6 billion and WFC's up 6% to $5.4 billion, both achieving their highest full-year earnings in four years. Revenue growth was fueled by improved lending margins and fees, with BAC's revenue increasing 7% to $28 billion and WFC's by 4% to $21.3 billion. Conversely, Citigroup (C) faced a 13% profit drop to $2.5 billion, burdened by a $1.2 billion loss from selling its Russia unit. Stock prices reacted negatively, with WFC falling nearly 5%, BAC 4%, and C 2%. Investment banking and trading revenues varied, with Citi seeing a 35% surge in investment banking to $1.29 billion, while WFC's dropped 1% to $716 million. CEOs remain optimistic about the US economy, with BAC and WFC setting ambitious growth targets and Citi adjusting profitability measures. Wells Fargo also reported a $612 million severance charge as it reduced its workforce by 6% to 205,000 employees. Despite economic uncertainties, the banks are focusing on efficiency and resource allocation to drive future growth.
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America's largest banks are set to report their fourth quarter and annual results for 2025, with expectations of record revenues and significant profit growth. JPMorgan Chase, the nation's biggest bank, will lead the announcements, followed by Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley. All six banks outperformed the S&P 500 in 2025, with the KBW Nasdaq Bank Index rising 29% compared to the S&P 500's 17%. Analysts anticipate strong tailwinds for 2026, including economic reacceleration, regulatory relief, lending growth, and lower interest rates, alongside sustained M&A activity. Trading fees are expected to hit record highs for most banks, except Wells Fargo, which is still poised for a record in dealmaking fees. There’s also speculation that tech-forward banks could be valued like tech companies due to AI and crypto integration, though immediate earnings impacts are unlikely. However, concerns linger about overvaluation, as much of the 2025 stock gains stemmed from multiple expansion rather than earnings growth, prompting some analysts to downgrade stocks like JPMorgan and Bank of America. Despite these concerns, many remain optimistic about the sector's momentum, barring any major market shocks, while headwinds like President Trump's proposed credit card interest rate cap add uncertainty.
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A group of former Federal Reserve chairs, Treasury secretaries, and economists, including Janet Yellen and Ben Bernanke, issued a statement condemning a Justice Department criminal inquiry into Fed Chair Jerome Powell as an unprecedented threat to the central bank's independence. They argue such actions, reminiscent of emerging markets with weak institutions, could destabilize monetary policy and inflation control in the US. Markets reacted with unease, showing slight declines in stocks, the dollar, and Treasurys, while bond yields may rise, increasing borrowing costs. Critics, including financial experts and former Fed officials, warn that President Trump's tactics could undermine confidence in the US economy, hinder his goal of lowering mortgage rates, and complicate the confirmation of his Fed chair nominee. The investigation may rally Fed support around Powell, potentially blocking Trump's influence over the central bank and reducing chances of rate cuts. Additionally, if unresolved, legal issues could delay or prevent Trump's appointees from taking control, with Powell possibly remaining on the board until 2028, limiting Trump's ability to reshape the Fed. This situation poses risks of higher inflation and monetary policy uncertainty, creating significant challenges for both Trump and the markets.
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Federal Housing Finance Agency Director Bill Pulte has emerged as a key figure in the Trump administration’s controversial decision to subpoena the Federal Reserve, intensifying pressure on Fed Chair Jerome Powell as President Trump prepares to select a new central bank leader. Pulte, known for pushing bold housing policies, also submitted a criminal referral against Fed Governor Lisa Cook, fueling Trump’s push to oust her. However, some Trump allies fear this legal action could destabilize bond markets and deter Powell from resigning when his chairmanship ends in May. The subpoena, tied to Powell’s congressional testimony on Fed renovations, was initiated by the Department of Justice, not Pulte, who denied involvement. Critics, including Republican Senator Thom Tillis, warn that this threatens the Fed’s independence and the DOJ’s credibility, with Tillis pledging to block Trump’s Fed nominee until the matter is resolved. The situation adds uncertainty to Trump’s plans to replace Powell, with potential candidates including Kevin Hassett and Kevin Warsh, while Wall Street braces for market reactions to perceived attacks on the central bank’s autonomy.
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Shares of major credit card lenders like Capital One, Synchrony Financial, and American Express plummeted after President Trump proposed a 10% cap on credit card interest rates, effective January 20, 2026, via a Truth Social post. The announcement, lacking legislative backing, raised questions about enforcement, though Trump insisted non-compliance would be illegal. Stocks fell up to 10% in premarket trading, with Wells Fargo estimating a 5%-18% hit to large bank earnings and severe impacts on credit-focused lenders. Banking groups warned the cap could hurt lower-income borrowers and push consumers toward riskier alternatives, while fintech firms like Affirm saw stock gains. Credit card rates, averaging 22.30%, have drawn bipartisan concern, with past support from Senators Sanders and Hawley. The proposal overshadows a previously favorable regulatory outlook for the financial sector, as industry pushback highlights potential economic risks.
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The article discusses a growing "Sell America" sentiment in financial markets following the Trump administration's intensified criticism of the Federal Reserve, raising concerns about the central bank's independence. Federal Reserve Chair Jerome Powell revealed threats of criminal indictment linked to monetary policy disputes, alongside grand jury subpoenas related to congressional testimony. This has led to declines in the dollar, Treasuries, and US equities futures, with Bloomberg's dollar gauge falling 0.3% and S&P 500 futures dropping 0.6%. Treasury yields rose, signaling market unease. Investors and strategists, including Gary Tan from Allspring Global Investments, warn that uncertainty over Fed autonomy could drive diversification away from the dollar and boost interest in hedges like gold. The administration's push for rapid rate cuts contrasts with the Fed's inflation concerns, echoing historical tensions. While some see potential buying opportunities due to the dollar's reserve status and US market liquidity, others, like David Chao from Invesco, view US assets as less attractive amid a perceived retreat into isolationism. The ongoing debate over political influence on monetary policy, combined with past tariff shocks, continues to fuel market volatility and the "Sell America" narrative as 2026 approaches.
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President Donald Trump announced that the US is seriously considering robust responses to the violent crackdowns on protesters in Iran during the third week of nationwide demonstrations, which have resulted in over 540 deaths and 10,000 arrests. Options under review include military strikes, cyber weapons, and sanctions, with a high-level meeting set for Tuesday to finalize plans. The protests, initially triggered by a currency crisis, have evolved into a significant challenge to Iran’s ruling system, the most severe since 1979. Despite severed diplomatic ties since 1980, Iran’s leaders have reached out for talks, though Trump hinted at potential preemptive US action. He also expressed support for protesters, suggesting assistance with internet restoration via Elon Musk’s Starlink service. Meanwhile, Iran’s President Masoud Pezeshkian called for dialogue, but other officials threatened harsh penalties as unrest continues. Trump’s public backing of the protesters and hints at military action have raised tensions, with Iran warning of retaliation against any US or Israeli attacks.
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Federal Reserve Chair Jerome Powell announced that the Justice Department has issued grand jury subpoenas to the central bank, potentially leading to a criminal indictment linked to his Senate testimony. Powell interprets this as an attempt to influence the Fed’s interest rate decisions, prioritizing political agendas over economic data. He emphasized the unprecedented nature of this action amid ongoing tensions with the administration, particularly under President Trump, who has repeatedly criticized Powell for not lowering rates quickly enough and for alleged mismanagement of the Fed’s $2.5 billion headquarters renovation. Trump, however, denied any involvement in the Justice Department’s probe. The conflict highlights a broader struggle over the Fed’s independence, with Powell defending his record of impartial decision-making under both Democratic and Republican administrations. Despite the Fed’s recent rate cuts, bringing the benchmark to 3.5%-3.75%, the clash with the administration has escalated into what some analysts describe as an “open war.” Powell remains steadfast, committed to serving the American public with integrity amidst these threats and pressures.
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US stocks concluded the first full trading week of 2026 with gains, driven by tech stocks, as the Dow Jones Industrial Average and S&P 500 achieved record closes on Friday, with the Nasdaq up 0.81%. Weekly gains saw the Dow up over 2%, Nasdaq just under 2%, and S&P 500 at 1.6%. Oil prices rose significantly, with Brent crude up 3.7% and West Texas Intermediate up 2.6%, amid US military actions in Venezuela. The December jobs report revealed a sluggish labor market, adding only 584,000 jobs in 2025, the weakest non-recession year since 2003, though unemployment dropped to 4.4%. However, youth unemployment spiked to 10.4%, signaling limited opportunities for new entrants. Upcoming economic data on consumer and producer prices, alongside retail sales, will influence Federal Reserve rate decisions, with a 95% chance of unchanged rates. Earnings season kicks off with major banks like JPMorgan Chase reporting, expected to show strong annual profit growth for S&P 500 firms at 8.3%. Despite labor market concerns, market optimism persists with expectations of double-digit earnings growth driving stock prices, though valuations remain a point of contention among investors.
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This article explores the ambitious pursuit of Arctic oil reserves in Greenland, where the US government estimates 90 billion barrels of oil and vast natural gas stores lie beneath the harsh landscape. March GL, soon to be Greenland Energy Company, is at the forefront, targeting Jameson Land for drilling, which could reshape US and European energy markets by reducing reliance on Russian oil amid sanctions. However, Greenland’s extreme conditions, including ice and rough seas, have delayed operations, with equipment stuck in Tasiilaq until warmer months. Geopolitical tensions further complicate the venture, as the US, under President Trump, pushes to annex Greenland for security reasons, while Russia and China increase their Arctic presence. For March GL’s CEO Robert Price, the project is a high-stakes gamble costing hundreds of millions, with plans for exploratory wells by 2026 despite a looming oil oversupply and falling prices. Success could also bolster Greenland’s economy, offsetting its reliance on Danish funding, but the risks are immense in a market wary of new exploration amidst abundant global supply.
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President Trump’s recent push to reorient Venezuelan oil exports to the US has sparked concerns about its impact on Canada, the leading supplier of heavy crude to American refineries. US refineries rely on heavy crude, which constitutes 70% of their optimal capacity, with Canada providing 60% of total US crude imports. Trump’s plan, including an initial wave of 30 to 50 million barrels from Venezuela, aims to leverage US refining capacity designed for Venezuelan heavy oil, potentially challenging Canadian producers. Market reactions showed declines for Canadian firms like CNQ and Enbridge, despite a stable energy sector. However, Canadian officials, including Prime Minister Mark Carney, remain confident, citing low risk, cost, and proximity as competitive advantages. Analysts from Capital Economics suggest Venezuelan output increases will take years and target different US regions, minimizing immediate threats to Canada’s oil sands. Despite Trump’s past downplaying of Canadian oil’s importance, US refinery needs and favorable tariff rates for Canadian crude underscore its necessity. The US-Canada oil trade, valued at $96 billion in 2023 and projected at $150 billion for 2025, remains crucial, highlighting the complex dynamics of North American energy interdependence.
