Chapter 1: What were the implications of the Federal Reserve's recent interest rate cut?
The Fed cuts interest rates for the third time in a row, but signals that it might be done for now.
We are well positioned to wait to see how the economy evolves.
Plus, investors are betting on a bidding war for Warner Brothers. And how the Venezuelan opposition leader secretly made it out of the country by boat to try to collect her Nobel Peace Prize. It's Wednesday, December 10th. I'm Alex Osola for The Wall Street Journal. This is the p.m. edition of What's News, the top headlines and business stories that move the world today.
Today, the Federal Reserve cut interest rates, the third straight meeting where they've made a cut, but suggested that might be it for now. Today's quarter point cut is focused on the jobs market as hiring has slowed down, even as progress on bringing down inflation has stalled. Officials have been unusually divided over whether inflation or the job market should be their bigger worry.
The Fed voted 9-3 for the rate cut, and it's the first time in six years that three officials cast dissents.
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Chapter 2: How are investors reacting to the potential bidding war for Warner Bros.?
Two thought the Fed should have left rates where they were, while one wanted a bigger cut than the one that was made, which was to between 3.5% and 3.75%. The Fed's post-meeting statement signaled a higher bar to additional cuts. Here's what Fed Chair Jerome Powell said at a news conference when asked if the Fed is on hold for more rate cuts.
We are well positioned to wait to see how the economy evolves.
Chapter 3: What challenges did María Corina Machado face in leaving Venezuela?
WSJ's Markets Bureau chief Aaron Kurloff said investors were expecting the Fed's move today.
This really matched what Wall Street thought was going to happen. They thought that there would be an interest rate cut. They thought that Powell would come out and suggest that we don't know when the next one is coming. You do not want to get ahead of yourselves.
Damian Paletta, WSJ's Washington coverage chief, suspected that the White House wouldn't be happy with the Fed's move.
The White House is not going to be happy with this meeting because the White House wants a lot of cuts now. And Powell seems to be in no rush as he's on his way out to give the White House that.
And he was right. At an event at the White House this afternoon, President Trump said that the Fed didn't cut rates enough. For more analysis on the Fed's decision, go to WSJ.com. And to hear more from Aaron and Damian, go to WSJ.com slash video. Powell's concerns about the health of the labor market cheered investors, who took it as a sign that future cuts are still likely.
Treasury yields slipped while stocks climbed in afternoon trading.
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Chapter 4: What insights did WSJ's Ben Dummett provide on the Hollywood megadeal?
The three indexes closed higher, with the Dow adding 1.1 percent, the S&P 500 up 0.7 percent, and the Nasdaq gaining 0.3 percent. Investors are betting that there's more drama ahead for the Hollywood mega deal. To recap, last week, Netflix and Warner Brothers Discovery agreed to a deal for $72 billion. On Monday, Paramount launched a hostile tender offer for nearly $78 billion.
Ben Dummitt, who covers dealmaking for the journal, is here to discuss why markets are signaling there's going to be a bidding war. Ben, what are the signs here?
The offers of the bids are very close to where Warner Brothers stock price is trading. So that's a sign that investors are betting there's going to be another bid, a higher bid from either Netflix and or Paramount. If they didn't think a deal was going to happen, the share price of Warner would trade at a huge discount to the offer prices.
Paramount CEO David Ellison was in meetings with a number of Warner investors yesterday seeking their support for the hostile tender offer.
Chapter 5: How did President Trump's comments impact perceptions of the Warner deal?
How is that factoring in here?
Ellison is just trying to push his case that their bid is superior because it's an all-cash offer, which is easier to understand than Netflix's cash and stock offer. And there's a view that the Paramount offer won't receive the regulatory and antitrust scrutiny that a Netflix offer would face. because Netflix is the dominant streaming service in the market today.
And then there's the relationship that Paramount has with Trump. The Ellisons are close to Trump, and the Ellisons' backers include Jared Kushner, the son-in-law of Trump. Now, Trump, for his part, he's sort of sent out mixed signals as to how he views this deal.
And is there a sign that the market has a sense of who might be the winner?
If you're a follower of prediction markets like Polymarket, for example, that allows users to bet on the outcome of future events. Deals, you know, the Nobel Prize winner, sports, that platform is saying that it's too close to call. They're running neck and neck.
Guess we'll have to just wait and see there. That was WSJ reporter Ben Dummitt. Thanks so much, Ben.
Thanks for having me.
This afternoon, President Trump told reporters that he thought CNN should be sold and its leadership changed, no matter which company buys Warner. Warner owns CNN, but Netflix isn't looking to acquire the unit CNN is in. Trump's desire to see CNN change hands could be a setback for Netflix.
I think CNN should be sold because I think the people that are running CNN right now are either corrupt or incompetent.
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Chapter 6: What are the repercussions of banks debanking politically sensitive industries?
Warner, Netflix, and Paramount didn't immediately respond to requests for comment on Trump's remarks about CNN. In two other media news items today, YouTube TV, the paid online TV service with about 10 million subscribers, is going to offer smaller, cheaper bundles of channels starting early next year. That gives customers more flexibility on which channels they get.
Sports remains a huge draw of traditional TV, and one skinny bundle will include a sports plan with major broadcasters and ESPN's networks, FS1 and NBC Sports Network. YouTube hasn't released prices yet, but they'll be below YouTube TV's $83 a month base plan. And Tony DiCoppo will move from CBS Mornings, where he's a co-host, to anchor CBS Evening News.
His new job was announced on this morning's CBS show.
So we're in a unique position to clear up some rumors about him. That's right, this guy right here. Can we cue that music up again? Yeah. That's right. Moving on up. Tony DiCoppo.
It's part of a major transformation for the news network under its new editor-in-chief, Barry Weiss. In a press release, Weiss praised DiCoppo's journalistic approach and said that he would help win back trust that Americans have lost in the media. DiCoppo will begin his new assignment on January 5th.
Coming up, how a Nobel laureate secretly left Venezuela and a regulator finds that financial institutions debanked politically sensitive industries. Those stories after the break. A top banking regulator says it's found that JPMorgan Chase, Bank of America, and seven other big U.S.
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Chapter 7: What does María Corina Machado's Nobel Prize journey reveal about her situation?
banks refuse to do business with some industries that are politically sensitive, such as oil and gas and gun manufacturers. There's an investigation into claims from President Trump that U.S. banks debanked, or dropped, some customers for political reasons. And he said that he and his businesses themselves were debanked after his first term and the January 6th riots.
The Office of the Comptroller of the Currency today said that the investigation continues and that it could send its findings to the attorney general. Banks have said they don't close accounts for religious or political reasons.
We're exclusively reporting that Venezuelan Nobel laureate Maria Corina Machado left the country yesterday by boat and traveled to the Caribbean island nation of Curaçao. That's according to U.S. officials. It was part of a secret effort to reach Norway and collect her peace prize.
The Venezuelan opposition leader and advocate for democracy spoke with Nobel Committee Chair Jorgen Vatney Friedness on a call posted online today.
Hello.
Hello. Jorgen. Hi. Hi, Jorgen. Is it Maria Corina?
The head of the Nobel Institute said getting Machado to Norway was more complicated than expected. On the call, Machado spoke about her journey.
So many people that risked their lives in order for me to arrive in Oslo. And I am very grateful to them. And this is a measure of what...
This recognition means to the Venezuelan people. She didn't make it to Oslo in time to accept her prize in person today, and her daughter accepted the award on her behalf. In Norway, Machado will reunite with her three children who live outside Venezuela for their safety. The trip also risks forcing her into exile. She's spent most of the past year in hiding in Venezuela to avoid arrest.
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