Category: Flash News

On January 14th, sources familiar with the matter revealed that US President elect Donald Trump’s economic team is discussing a gradual increase in tariffs on a monthly basis to increase bargaining power while also trying to avoid soaring inflation. According to informed sources, one idea is to establish a progressive tariff schedule, with monthly increases of approximately 2% to 5%. This plan will also rely on the administrative powers granted by the International Emergency Economic Powers Act. Insiders say that the proposal is still in its early stages and has not yet been submitted to Trump himself. (First Financial)

On January 14th, Panxing Plaza Capital Management proposed to merge a newly established subsidiary with Howard Hughes Holdings Inc., transforming the real estate developer into a “contemporary” version of Berkshire Hathaway. In a letter to investors posted on its website, the company stated that the investment firm run by Bill Ackman is offering Howard Hughes shareholders $85 per share, with the majority to be paid in cash. This is a 38.3% premium to Howard Hughes’ stock price when Pershing Square expressed potential merger intentions in August. Ackman has been preparing for the acquisition of Howard Hughes for several months. In August, he said he was working with Jefferies Financial Group Inc. to potentially acquire all of Howard Hughes’ shares that Pershing Square did not yet own. The investment company’s fund holds 37.6% of Howard Hughes’ shares. This transaction will give Ackman the opportunity to expand Howard Hughes, known for investing in master planned communities and retail properties. He stated that he will encourage the company to invest its cash in operating companies, following Buffett’s investment model at Berkshire Hathaway. Howard Hughes’ stock price surged 9.5% to $78.62 due to this news.

On January 14th, the Nasdaq China Golden Dragon Index closed down 0.39%, with most popular Chinese concept stocks falling. Kingsoft Cloud fell over 10%, Miniso fell nearly 6%, New Oriental fell over 4%, iQiyi and Xiaopeng Motors fell over 3%, and NIO and Ideal Motors fell over 2%. NetEase rose over 3%, TAL Education and Pinduoduo rose over 1%, while Bilibili, JD.com, and Baidu rose less than 1%.

On January 14th, court documents showed that US District Judge Irene Cannon allowed the Department of Justice to release a special prosecutor’s report on Trump’s attempt to overturn the 2020 election. In addition, the judge extended the deadline for suspending the release of the report on Trump’s classified documents case.

On January 14th, Southern California Edison Electric Company was sued for its equipment causing the still raging Eaton fire. It is reported that the fire occurred in the area of Los Angeles, the second largest city in the United States, near Pasadena. This lawsuit is filed by homeowners, tenants, merchants, and other residents who have lost property due to the fire, accusing the power company of failing to properly maintain its equipment, resulting in catastrophic consequences. The lawsuit claims that a utility pole of Southern California Power Company was the root cause of the fire, which ultimately destroyed a large area of the Altadina community. The wildfires in southern California have been raging for nearly a week, and progress in extinguishing them is still limited. The wildfire has caused 24 deaths.

On January 14th, German Chancellor Scholz once again opposed US President elect Trump’s previous demand for NATO countries to increase their defense budgets to 5% of their gross domestic product during a campaign event in Bielefeld. Scholz said that a defense budget of 5% of GDP means military spending will exceed 200 billion euros, while Germany’s current federal budget is even less than 500 billion euros. But Scholz promised to adhere to the goal of NATO member states’ military spending accounting for at least 2% of their gross domestic product. On the 9th of this month, German Chancellor Scholz made it clear during an online interview program that he opposed Trump’s request for NATO countries to increase military spending.

On January 14th, insiders revealed that Honeywell will push for a spin off after pressure from activist investor Elliott Investment Management. According to sources, Honeywell plans to split into two independent publicly traded companies, one focused on automation and the other on aerospace and defense. Honeywell may officially announce the above plan in its fourth quarter financial report to be released in early February. Due to the discussion of confidential information, informed sources requested anonymity. According to sources, the final details are still pending approval from the company’s board of directors. Over the past 12 months, Honeywell’s stock price has risen by over 11%, with a market value of approximately $143 billion. But the stock’s performance lags behind the S&P 500 index, which rose more than 20% during the same period. (Bloomberg)

On January 14th, the armed faction of the Palestinian Islamic Resistance Movement (Hamas), the Kassan Brigade, announced that it launched an attack on a building in the southern Gaza Strip, resulting in the death or injury of approximately 25 Israeli soldiers stationed there. In addition, the Israeli military announced that on the morning of the 13th, 5 Israeli Defense Forces soldiers were killed and 20 were injured in the northern Gaza Strip.

On January 14th, informed sources revealed that Cleveland Cliffs Inc. is considering partnering with Nucor Corp. to bid for US Steel Corporation. The insider mentioned above stated that the strategy considered by the two companies is for Cleveland Cliffs to acquire most of the assets of US Steel Company, while Nucor will acquire a small portion of the assets. Due to undisclosed details, the source refused to disclose their name. According to informed sources, the final decision has not yet been made, and the two companies may still choose to abandon the transaction. Representatives from Nucor and US Steel have not yet made any comments, A spokesperson for Cleveland Cliffs declined to comment. (Bloomberg)

On January 14th, Qatar’s Emir (Head of State) Tamim held talks with the Palestinian Islamic Resistance Movement (Hamas) Gaza ceasefire negotiation delegation led by Khalil Hayah in the capital city of Doha. Both sides focused on discussing the latest developments in the ceasefire negotiations in the Gaza Strip. Tamim emphasized that Qatar supports a long-term ceasefire in the Gaza Strip. He also reiterated Qatar’s firm position on the Palestinian issue, supporting the legitimate rights of the Palestinian people and the establishment of an independent Palestinian state with East Jerusalem as its capital. In addition, Tamim also held talks with Brett McGurk, the Middle East and North Africa Coordinator of the US National Security Council, and Witkov, the Middle East envoy appointed by US President elect Trump, on the same day. He also had a phone call with US President Biden, focusing on discussions on the Gaza ceasefire negotiations.