Chapter 1: What is the main topic discussed in this episode?
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. It's always good to be with you. Today is Monday, January 12th. I'm Julie Morgan. The U.S. Attorney's Office in Washington, D.C.
has opened a criminal investigation into Federal Reserve Chair Jerome Powell over the Fed's headquarters renovation and whether he misled Congress about the project. According to the New York Times, the probe is reviewing Powell's public statements and spending records. It was approved in November by U.S. Attorney Jeanine Pirro, a Trump ally appointed last year.
The investigation adds new legal pressure on Powell, whom President Trump has repeatedly criticized for refusing to cut interest rates. Trump has threatened to fire Powell and suggested a lawsuit over the $2.5 billion renovation, calling it incompetent. Powell's term as Fed chair ends in May, though his term as governor runs until 2028.
The renovation project began in 2022 and is now about $700 million over budget. It includes upgrades to two nearly 100-year-old Fed buildings that have never undergone a full renovation. Earlier plans included private elevators, dining rooms, marble features and a rooftop terrace.
Chapter 2: What is the criminal investigation into Fed Chair Powell about?
Powell denied at a June congressional hearing that many of those features remain in the current proposal. The Fed chair issued a statement that said the subpoenas are not about legitimate legal concerns, but are the result of not cutting interest rates for Trump. The president said he knows nothing about the Fed investigation and denies a rape motive.
Allegiant Travel has agreed to acquire Sun Country Airlines in a cash-in-stock transaction. The deal values the Minneapolis-based carrier at approximately $1.5 billion, including net debt. Under the terms of the definitive agreement, Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each share they own. implying a value of $18.89 a share.
The offer represents a 19.8% premium to Sun Country's closing price of $15.77 on Friday. Allegiant shares closed at $94.97 on Friday, giving the company a market value of $1.68 billion. Meta says it has removed more than 500,000 Australian children from its platforms to comply with the country's ban on social media use for those under 16.
Between December 4th and 11th, Meta removed about 330,000 users from Instagram, 173,000 from Facebook, and 39,000 from threads. The data was released a month after the ban took effect on December 10th of last year. Under the law, platforms including Facebook, Instagram, TikTok, Snapchat, X, YouTube, Reddit, and Twitch face fines of up to $33 million for allowing users under 16.
I have a few other articles that are trending on Seeking Alpha. One of these actually goes with our top story, gold and silver spike as the Fed receives DOJ subpoenas. Move over taco trade, here come the Big Mac and tuna trades. And President Trump signals disapproval of the Netflix Warner Brothers deal.
On our Catalyst Watch for the Day, one of the biggest retail conferences of the year will take place. The ICR conference typically includes a wave of holiday sales updates and full-year guidance announcements. Notable companies participating include Walmart, Urban Outfitters, Shake Shack, Movado, and Yeti Holdings. The four-day J.P. Morgan Healthcare Conference begins in San Francisco.
The conference is considered one of the most important of the year in the healthcare sector. Johnson & Johnson, Novartis, AstraZeneca, Bristol-Myers Squibb, and Kodiak Sciences are some of the notable companies making presentations.
The Commissioner of the FDA will give a dedicated keynote talk on regulatory priorities, accelerated approvals, AI and drug development, and safety and efficacy standards. The National Retail Federation's Big Show event will take place in New York City.
The CEO of BJ's Wholesale Club, the Executive Chairman of Dick's Sporting Goods, and the CEO of Abercrombie & Fitch will be giving speeches or participating in a fireside chat. And the shareholders of Avidel Pharmaceuticals will vote on the buyout offer from ALKS. On Wall Street at this early hour, Dow, S&P and Nasdaq futures are in the red. Crude oil is down 0.6% at $58 a barrel.
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Chapter 3: What are the implications of Powell's renovation project being over budget?
Thanks for listening. To take full advantage of Seeking Alpha with coverage on significant stocks and ETFs, become a premium subscriber. Check out seekingalpha.com slash subscriptions. I'm your host, Julie Morgan. Go out and make it a great day.