Trump Considers National Economic Emergency Declaration for New Tariff Program
According to sources from CNN, President Trump is actively contemplating a declaration of a national economic emergency. This strategic move would empower him to establish a new tariff program under the provisions of the International Economic Emergency Powers Act, commonly referred to as “IEEPA.” This legislation grants the president unilateral authority to regulate imports during times of national emergencies. As Trump’s administration strategizes, his team is diligently examining various legal avenues to reinforce the tariffs he advocated for during his campaign, ensuring a robust economic strategy that aligns with his agenda.
Leadership Changes at the US CFTC as Trump Takes Office
As reported by Reuters, Behnam, the chair of the U.S. Commodity Futures Trading Commission (CFTC), is set to step down as President Trump assumes office. Historically, the CFTC has played a somewhat subordinate role in financial policy; however, under Trump’s leadership, it is anticipated to gain significant influence, especially as the administration aims to implement more crypto-friendly regulations. Initial plans suggest that Trump will appoint one of the existing Republican commissioners, either Summer Mersinger or Caroline Pham, as acting chair. Additionally, external candidates, including former CFTC Commissioner Brian Quintenz and industry veterans Josh Sterling and Neal Kumar, are being considered for future leadership roles.
U.K. Competition Authority Evaluates $35 Billion Synopsys and Ansys Merger
The Competition and Markets Authority of the U.K. announced on Wednesday that it is leaning toward conditional approval for the $35 billion merger between Synopsys and Ansys. The authority has stated that there are reasonable grounds to allow the merger to proceed, contingent on certain concessions offered by the involved companies. This decision is crucial, as the agency has until March 5 to finalize its stance on the undertakings. Furthermore, the European Commission’s antitrust regulator is also scrutinizing the deal, with a deadline set for January 10 to determine whether to approve it or to initiate a more in-depth investigation into its implications.
JPMorgan Exits Climate-Banking Group Amid Changing Financial Priorities
In a significant shift, JPMorgan has become the last major U.S. bank to withdraw from a prominent climate-banking group, as reported by American Banker via Yahoo!. This departure is part of a broader trend among the six largest U.S. banks, reflecting a recalibration of priorities as President-elect Donald Trump prepares to take office. Trump has expressed intentions to rapidly enhance U.S. oil and gas production while dismantling funding avenues for clean energy initiatives. Currently, only three U.S. banks remain affiliated with the Net-Zero Banking Alliance: Amalgamated Bank in New York City, Climate First Bank in St. Petersburg, Florida, and Areti Bank in Puerto Rico.
Fannie Mae and Freddie Mac Shares Surge Following Privatization Plans
Shares of Fannie Mae and Freddie Mac have seen a notable increase after federal agencies outlined a roadmap for their privatization. The U.S. Treasury Department and the Federal Housing Finance Agency (FHFA) announced on Thursday that they have made amendments to their agreements with these government-sponsored enterprises (GSEs), aimed at ensuring a seamless exit from conservatorship. This development has sparked optimism among investors, particularly after billionaire Bill Ackman predicted that the incoming administration would facilitate the GSEs’ transition out of conservatorship, potentially reshaping the housing finance landscape.
Severe Drop in Partner Pay at Odey Asset Management
Recent disclosures reveal that partner compensation at Crispin Odey’s hedge fund firm plummeted by over 99%, with earnings dropping to a mere £49,000 last year. As detailed in documents filed with Companies House for the fiscal year ending April 2024, the dramatic decrease in pay is attributed to the mass exodus of partners from the firm. This financial decline underscores the challenges faced by Odey Asset Management amidst ongoing controversies, significantly impacting the firm’s operational stability and reputation within the investment community.
