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The House of Representatives and President Donald Trump have ended a record 43-day government shutdown by approving a spending bill that funds the government through January 30th, restores federal layoffs, and sends furloughed employees back to work, while postponing the central dispute over extending enhanced Affordable Care Act subsidies. The bill passed the House 222–209 after earlier Senate approval, with a handful of Democrats joining Republicans and two GOP members voting no. Democrats, who had pushed to include subsidy extensions in the deal, vowed to continue that fight after reopening the government, while Republican leaders argued negotiations could only occur once operations resumed. The package also drew bipartisan criticism for a provision enabling senators to seek large damages if investigators obtain their phone records. The shutdown caused significant disruption - from delayed flights to halted economic data - and although its overall economic damage was modest, analysts noted that its costs and operational strain on federal workers and services were steadily growing. 

 

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Artificial intelligence has driven a 44% surge in the combined valuation of the world’s 100 largest unicorns, lifting their total worth to $2.94tn, according to PwC, from $2.05tn. Despite waning investor appetite in 2023, AI-linked excitement has led to 24 new entrants and five firms now valued above $100bn. Five of the Top 100 companies now have a valuation of more than $100bn, while there were 24 new entrants in the year, adding $352bn in estimated value. “The availability of private capital, a stabilising macroeconomic backdrop, and strong investor interest in sectors such as AI and fintech have provided a solid foundation for the growth of the world’s most valuable unicorn companies over the last year," commented Kat Kravtsov, capital markets director at PwC. "With the recovery of the IPO market gaining pace, it’s not surprising to see an uptick in IPO activity, particularly in the U.S., as founders and sponsors explore various monetisation and funding options. Strategic exit and broader IPO readiness continue to be priorities for maturing unicorns as they seek to create and protect value by fostering a corporate environment that is scalable and fit for growth.”    

 

Consultancy

A U.S. House committee report accuses China of manipulating global critical minerals prices to boost its manufacturing dominance and geopolitical leverage. "China has a loaded gun pointed at our economy," warned Rep. John Moolenaar. The 50-page bipartisan report alleges Beijing distorts rare earths and lithium markets and influences global pricing via the London Metal Exchange. Recommendations include price controls, a minerals czar, and stockpiles. The report supports codifying presidential actions into law. China has denied prior accusations, calling U.S. claims exaggerated and alarmist.

 

Reuters

Apple supplier Foxconn’s third-quarter profit climbed 17% from a year earlier, as the world’s largest contract electronics manufacturer benefits from the AI build-out. Net profit for the three months to the end of September was T$57.67bn ($1.89bn), higher than the consensus estimate of T$50.4bn compiled by LSEG. Revenues hit T$2tn.

 

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Anthropic has announced a $50bn partnership with Fluidstack to build data centers in Texas and New York, set to launch in 2026. Chief executive Dario Amodei stated: "Realizing that potential requires infrastructure that can support continued development at the frontier." The investment aligns with Anthropic's revenue projections of $70bn by 2028. Fluidstack, a rising neocloud provider, has gained recognition through partnerships with major tech firms and government-backed projects.

 

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Voter dissatisfaction with affordability significantly influenced Democratic victories in recent state and local elections. A Harris Poll for Bloomberg News revealed that 55% of employed Americans are worried about job security, with major layoffs announced by companies like Amazon and Target. Additionally, 62% of respondents noted rising costs of everyday items, with nearly half struggling to cope. As job growth slows and inflation remains high, the administration's narrative faces skepticism. Michael Reich, an economics professor, said that if economic trends continue, “the party in power will be blamed,” posing a threat to Republicans in the upcoming midterms.

 

Los Angeles Times

President Donald Trump has defended the H1-B skilled worker visa program in an interview with Fox News in which he said the United States doesn’t have workers with “certain talents” to fill jobs needed domestically. The channel's Laura Ingraham asked Trump whether his administration would reduce H1-B visas amid concerns it would depress wages for American workers. Trump said: “I agree - but you also do have to bring in talent.” When Ingraham responded: “We have plenty of talented people here,” Trump replied, “No, you don’t, no you don’t . . . you don’t have certain talents, and people have to learn. You can’t take people off an unemployment line and say, ‘I’m going to put you into a factory where we’re going to make missiles.’” In September, the White House imposed a $100,000 one-time fee on H1-B visas, in a move that marked a win for immigration hard-liners on Capitol Hill, NBC News notes

 

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Starbucks Workers United has launched an open-ended strike to coincide with today's Red Cup Day, involving over 1,000 baristas at more than 65 stores in at least 40 U.S. cities, after contract negotiations with Starbucks stalled. The union is seeking better hours, higher wages, and resolution of unfair labor practice charges, warning the action could become the largest and longest strike in the company’s history. Starbucks says the union walked away from talks, asserts it offers industry-leading pay and benefits, and maintains it is ready to resume negotiations, noting that more than 30 tentative agreements have already been reached. Both sides blame each other for the breakdown in bargaining, even as Starbucks prepares to maintain holiday operations across its nearly 18,000 stores.

 

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U.S. regulators have agreed on the terms to ease a set of capital requirements that could potentially allow banks to hold more Treasuries. The eased requirements would mean the biggest banks have to hold less capital relative to total assets, and are largely in line with a proposal unveiled in June. Officials from the Federal Reserve and other agencies recently submitted a final plan for a key capital reserve ratio to the White House for review, and officials aim to formally adopt the measure in the coming weeks, pending White House sign-off.

 

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The U.S. Consumer Financial Protection Bureau (CFPB) has proposed changes to anti-discrimination rules under the 1974 Equal Credit Opportunity Act. The move aims to eliminate disparate-impact liability, which has been crucial in combating racial and gender discrimination in lending. Consumer advocates warn that this could hinder efforts to prevent discrimination across various sectors. The proposals, which include narrowing Special Purpose Credit Programs, are open for public comment for 30 days.

 

Reuters

The U.S. Supreme Court will hear arguments on January 21st in President Donald Trump’s effort to remove Fed Governor Lisa Cook, the first such attempt against a central bank official. Mr. Trump alleges pre-appointment mortgage fraud, which Ms. Cook denies. Lower courts blocked the removal, citing lack of legal grounds under the Federal Reserve Act, which only allows dismissal “for cause” without defining the term. Ms. Cook, the first Black woman on the Fed board, argues the move is politically motivated. The court's decision could set a precedent for Fed independence amid broader rulings on presidential control over agencies.

 

Reuters

McDermott Will & Schulte is exploring a restructuring that would allow it to sell a stake to private equity groups. The proposed structure involves creating a managed service organisation (MSO), a separate entity in which outside investors - such as private equity firms - could own a stake. McDermott's chair, Ira Coleman, told the Financial Times that as a “fastest-growing, most successful modern law firm,” it is “constantly approached and we always listen to new ideas,” and is “excited to learn from other leading organisations as we challenge the status quo.”

 

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The FASB has introduced an accounting standards update to enhance the accounting for purchased loans, addressing concerns raised during a review of its 2016 credit losses standard. Stakeholders criticized the existing guidance for its complexity and lack of comparability, particularly regarding purchased credit-deteriorated (PCD) and non-PCD assets. The new update expands the use of the "gross-up approach" for acquired loans, aiming to improve consistency and better reflect the economics of these financial assets. FASB chair Richard Jones said: "We're always happy to engage with people if they have any concerns about our statements." The amendments will take effect for annual reporting periods starting after December 15th 2026.

 

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The IRS has introduced a safe harbor for investment and grantor trusts to stake digital assets without risking their tax status. This initiative follows numerous requests for guidance on staking, a process where cryptocurrency holders lock their tokens to validate blockchain transactions. Treasury Secretary and acting IRS Commissioner Scott Bessent said: “This move increases investor benefits, boosts innovation, and keeps America the global leader in digital asset and blockchain technology.” The new Revenue Procedure 2025-31 outlines specific requirements for trusts to comply with this regulation.

 

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The U.S. has officially ceased penny production, marking the end of a 230-year tradition. “God bless America, and we're going to save the taxpayers $56m,” said Treasurer Brandon Beach during the final minting event in Philadelphia. While billions of pennies remain in circulation - with 3.2bn having been produced in the last fiscal year alone - and will still be legal tender, new coins will no longer be produced. The decision, influenced by rising production costs and the coin's diminishing value, has sparked nostalgia among many Americans. However, Jeff Lenard from the National Association of Convenience Stores expressed concern over the abrupt phaseout, saying: “We have been advocating abolition of the penny for 30 years. But this is not the way we wanted it to go”. The penny's discontinuation reflects broader trends in currency management, similar to Canada's decision to stop minting pennies in 2012.

 

Chicago Tribune

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