An end to a troubled takeover bid
President Biden is officially ready to block. Nippon Steel’s $14 billion takeover of U.S. Steel on Friday is likely to end an industrial megadeal that has been going ahead against widespread political opposition.
But the decision could trigger a cascade of consequences, including whether it would block foreign investment in key industries, even from U.S. allies like Japan. One thing is almost certain: expect a lot of litigation.
Dale’s death seemed increasingly inevitable. In March, Biden said it was “critical” that U.S. Steel remain American-owned. The United Steelworkers union opposed the transaction from the start, questioning Nippon Steel’s commitment to maintaining U.S. production and unionized employment levels. (It escaped anyone’s notice that US Steel is headquartered in Pennsylvania, a key swing state.)
Last month, a federal government panel, known as CFIUS, which reviewed the deal on national security grounds, expressed concern that the Japanese bidder’s global trade protections would ultimately protect US steel production levels. There can be more than promises made to keep.
President-elect Donald Trump also vowed to block takeovers after taking office.
Others have expressed concern that stalling the deal could chill foreign investment. In recent times, Some of Biden’s senior advisers The Washington Post reported that rejecting the deal could damage relations with Japan.
Japanese officials pressured Biden to approve the deal. Rejecting it would “send a strong message that investment from Japan, despite the lack of security concerns, is not welcome in the United States,” Takehiko Matsu, a senior trade minister, told Biden administration officials last month. was written
The matter will probably go to court. Nippon Steel has complained about the White House’s “undue influence” in the CFIUS process. That lays the groundwork for the Japanese company or U.S. Steel to sue Biden’s expected move.
Deal Book also wonders if the companies will sue. each otherperhaps citing a failure to do enough to win approval (the deal agreement requires Nippon Steel to pay its U.S. counterpart $565 million if regulators block the transaction.)
What’s Next for US Steel? The company’s CEO, David Burt, has warned that the steelmaker needs capital to upgrade its aging plants. Even CFIUS acknowledged that the company had a “history of inadequate efforts to improve its competitiveness.”
One possibility is another bidder — such as Cleveland-Cliffs, which was previously rejected by U.S. Steel and whose stock is under pressure — could swoop in. US steel investors will need to push for a deal.
Here’s what’s going on.
Mike Johnson faces a vote Friday for Speaker of the House. Johnson has the support of President-elect Donald Trump and Elon Musk, but is Obstructed by the razor-thin majority and a contentious House Republican conference. Corporate America will be watching the outcome of the vote closely for what it says about the chamber’s ability to pass legislation after Trump takes office.
Authorities have identified the driver of the Las Vegas cyber truck blast. He was a man. A Master Sergeant of the Army is on leave. from active duty, who killed himself shortly before his rented Tesla exploded outside the Trump Hotel in Las Vegas on New Year’s Day. The FBI said it found no connection between the incident and the deadly rampage in New Orleans hours earlier. Adding a military veteran.
China has imposed trade sanctions on dozens of American companies. The Ministry of Commerce announced on Thursday that export control limits will be imposed on 28 companies. including Boeing and Lockheed Martin. The move comes just weeks before Trump takes office, and is likely to escalate the trade war between Washington and Beijing. More shots may be fired soon: Biden administration weighs in Ban on Chinese-made drones.
Do Tesla’s sales matter?
At any other car company, the sales numbers announced by Tesla on Thursday would have been a disaster. Shipments fell slightly for the year in a growing market. First annual reduction in the history of the company.
Yet the reaction on Wall Street has been relatively muted compared to the massive rally in Tesla’s share price in recent months, writes The Times’ Jack Ewing for DealBook. This reflects how much Elon Musk has sold investors on the idea that cars are one piece. Great perspective Including self-driving taxis and humanoid robots — and his close relationship with President-elect Donald Trump.
Shares closed down but the stock is up more than 55 percent since Election Day. Musk’s relationship with Trump has given him a direct line to the White House that he can use to promote his business interests.
“Investors have moved,” Eric Gordon, a professor at the University of Michigan’s Ross School of Business, told DealBook. “They thought of it as an EV company. Now they think of it as a technology platform. ‘What will Elon think next?’
Musk has revealed little detail about his plans. During conference calls with investors and analysts, he has focused on what he says will be trillions of dollars in revenue from self-driving taxis that may be years away from mass production.
Yet it may be difficult for Musk to realize his grandiose visions if the company continues to lose market share to rivals such as General Motors, BMW and BYD. (The Chinese automaker reported. Record sales in 2024).
Does Musk Need to Accelerate Low-Cost Tesla Plans? He told investors in October that the company will start selling a car this year that will cost significantly less than the Model 3 sedan, which starts at $42,500 before state and federal incentives.
But Musk has expressed ambivalence about the new vehicle, calling it “pointless” unless it is able to drive autonomously. And Tesla hasn’t shown any prototypes yet.
This has led to speculation that Musk is no longer interested in mass-market cars. “What has Musk excited about tomorrow is the technology,” Gordon said. “An Econobox EV just doesn’t ring its bell.”
One thing to watch for in 2025: Musk’s reaction if car sales remain soft and Tesla shares fall further. Will it force him to use more of the skills used to build Tesla into the world’s largest electric car company?
A blow to net neutrality
A federal appeals court has struck down one of President Biden’s biggest tech policy accomplishments: The FCC’s net neutrality rules on broadband Internet providers that attempt to secure consumer access to online content;
The termination comes as the companies brace for the incoming Trump administration to usher in a new era of deregulation and further limit regulatory reach.
This decision is a win for cable and telecom companies. like AT&T and Comcast, ending two decades of efforts to regulate them like utilities. It also shows the effects of recent. The decision of the Supreme Court This is expected to limit the power of federal agencies.
A summary: The regulations, which have been supported by Google, Facebook and Netflix, were implemented under the Obama administration amid concerns that Internet service providers would be de facto gatekeepers with the power to slow or block access to content. Can be a keeper. The rules were repealed during Trump’s first term, only to be reinstated by the FCC in April.
Brandon Carr, President-elect Donald Trump’s pick to lead the FCC, has been an outspoken critic of the rules.
This decision may lead to legal challenges. It relies on the Supreme Court’s finalization of the Chevron doctrine last year, which requires courts to defer to federal agencies’ interpretation of ambiguous statutes. “The FCC,” wrote Judge Richard Allen Griffin, “lacks the statutory authority to enact the net neutrality policies it seeks.”
Tim Wu, a former Biden administration official who coined the term “net neutrality.” The decisioncalling it “pure judicial activism that puts corporate interests over American democracy.”
What’s next? The fight over net neutrality isn’t over: The ruling doesn’t affect state laws, including those in California, Washington and Colorado. And Democrats at the FCC called on Congress to include net neutrality in the law. Still, many observers note that net neutrality is not the hot-button consumer issue it once was.
“The market doesn’t think it’s a big deal now, and it won’t be for some time,” former FCC chief of staff Blair Levine told the Times.
Big change in the meta
In the latest sign of how big tech is repositioning itself for the new Trump administration, Metta has tapped a prominent Republican to lead its global policy team.
Joel KaplanNick Clegg, a longtime META employee and deputy chief of staff under former President George W. Bush, will take over, as first reported. Semaphore.
Metta has tried to remove himself from the political spotlight. Clegg, a former UK deputy prime minister, joined the tech giant after the company faced a backlash over its handling of misinformation on its platform during the 2016 election.
He is credited with smoothing relations with regulators, particularly in Washington and Brussels.
Could his leftist politics have become a liability? Clegg may be planning an exit before the election, but he has made no secret of his opinion. Last month, he Elon Musk warned.which X and xAI contend with Meta, could become a “political puppet master” and criticized Musk’s responsibility for X.
The remarks come as many businesses worry about retaliation from President-elect Donald Trump and Musk — and as the big tech CEO has gone out of his way to curry favor with them.
Kaplan’s deep Republican roots could help Metta in the new Trump era. He joined Facebook in 2011, and later served as Clegg’s deputy. Previously, he clerked for Justice Antonin Scalia on the Supreme Court and is a close friend of Justice Brett Cavanaugh. (He Appeared in Kavanaugh’s controversial confirmation hearings.and later Begged for forgiveness meta-employees who thought his presence showed political preference).
He has also been one of them. The loudest voices within the meta Pushing against restrictions on political content.
Mark Zuckerberg has largely stayed out of politics. For years, the tech mogul has publicly campaigned for liberal causes but won. moved After coming under constant fire. Trump criticized Zuckerberg and threatened to jail him after accusing Meta of censoring conservative views.
But Zuckerberg, like other big tech leaders, made efforts to court Trump, who traveled to Mar-a-Lago to meet the president-elect after the November election.
Speed Red
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President-elect Donald Trump Ken raised the keysA longtime tax lobbyist for clients including Microsoft, as the Treasury Department’s Assistant Secretary for Tax Policy. (Bloomberg)
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US Surgeon General Vivek Murthy Called for cancer warning be placed on alcoholic beverages; However, doing so would require Congress to act. (NYT)
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Richard Easterlinan economist whose work challenged the assumption that more money always leads to more happiness, died Dec. 16. He was 98 years old. (NYT)
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