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Greg Abel has officially succeeded Warren Buffett as Berkshire Hathaway's CEO, taking control of a company holding $358bn in cash. With Buffett's legacy looming, shareholders await Abel's strategy, especially amid a pricey stock market and a pause on Berkshire share buybacks. Abel called the cash an “enormous asset” during the 2025 annual meeting, adding: “It gives Berkshire a cushion.” Though Abel avoids the spotlight, he’s respected for his leadership since 2018 of Berkshire's non-insurance businesses. Buffett affirmed: “Greg has exceeded my expectations in every respect.” Abel is expected to maintain Berkshire’s decentralized and conservative capital approach.

 

CNBC

The U.S. economy is poised for stronger growth in 2026, fueled by Trump-era tax cuts, fading tariff uncertainty, and continued AI investment. KPMG’s Diane Swonk projects fiscal stimulus alone could raise Q1 GDP by 0.5%. Business optimism is rising, with Oxford Economics citing “fading policy uncertainty” and looser Fed policy as key drivers. Despite a weak labor market and 4.6% unemployment in November, interest-rate cuts and robust consumer spending - driven by smaller withholdings and larger tax refunds - are expected to support the recovery. Still, risks remain from inflation and restrained hiring amid AI-led efficiencies.

 

Reuters

Initial U.S. jobless claims fell to 199,000 for the week ending December 27, the lowest in a month, surprising economists who expected a rise. Despite this dip, hiring remains weak under President Trump’s second term, with monthly job creation averaging just 55,000 in 2025. Factors such as steep tariffs and immigration restrictions have disrupted labor supply. The unemployment rate stood at 4.6% in November, its highest in four years, though layoffs remain limited. The Fed is divided on further rate cuts, awaiting early 2026 labor and inflation data to guide decisions.

 

Reuters

Worldwide mergers and acquisitions increased by almost 50% from 2024 to $4.5tn, according to data from the London Stock Exchange Group. A record number of megadeals lifted investment banking fees to their second-highest level ever, although smaller transactions waned, with the total number of deals falling 7% to the lowest since 2016. Private equity activity grew more modestly, up over 25% to $889bn.

 

Financial Times

International Business Times

The Wall Street Journal reports that Saks Global is planning to file for Chapter 11 bankruptcy after missing a $100m interest payment related to its 2024 Neiman Marcus acquisition. Since the merger, Saks has struggled with mounting debt, declining sales, and delayed vendor payments, which have reduced merchandise availability. Talks with creditors for bankruptcy financing are underway. In June, the retailer raised $600m to meet previous obligations. A 13% sales drop to $1.6bn and a $288m net loss in the August quarter further pressured the business. Saks has also upset suppliers by extending payment terms.

 

Wall Street Journal

The Trump administration has launched investigations under the False Claims Act into the use of diversity initiatives in hiring and promotion at major U.S. companies, including Google and Verizon. The companies, in sectors including automotive, pharmaceuticals, defense, and utilities, have received Justice Department demands for documents and information about their workplace programs, the Wall Street Journal has reported, citing people familiar with the investigations. Lawyers who practice in the area say it is unusual to see the antifraud law being used to pursue concerns about compliance with federal antidiscrimination laws. “These investigations are somewhat unique,” said Lisa Dykstra, a partner at Morgan Lewis. Deputy Attorney General Todd Blanche said the False Claims Act would be a “weapon” used to go after companies that “continue to adhere to racist policies.”

 

The Wall Street Journal

In 2025, AI integration in tax and accounting became essential, with firms like KPMG evaluating staff on AI tool usage in performance reviews. KPMG's James O'Dowd stated: "This marks a structural shift in how professional services firms define performance and value." AI's role in enhancing accuracy and efficiency in tax operations is underscored by KPMG's Christian Stender, who highlighted its potential in managing complex issues. The push for AI adoption reflects a broader trend towards digital transformation in professional services, with significant implications for industry practices.

 

Bloomberg Tax

AI is set to revolutionize accounting in 2026, automating tasks like data entry and verification, according to a survey of industry leaders. Ariege Misherghi, general manager at Bill, highlighted that pre-processing tasks will see the most significant reduction in human involvement. The rise of AI in technical research and tax workflows is also noted, with Jim Bourke of Withum predicting automation of simple tax engagements. Despite these advancements, tasks requiring judgment and client interaction will remain human-centric, as AI lacks the professional skepticism and understanding valued by clients.

 

Accounting Today

More than 200,000 jobs in European banking are at risk as lenders adopt artificial intelligence and reduce branch networks, according to a Morgan Stanley report. The analysis predicts a 10% job cut by 2030, primarily affecting central services, back-office, and compliance roles. With 2.12m employees in the sector, this equates to approximately 212,000 positions. Morgan Stanley noted that banks are under pressure to enhance efficiency, with some citing potential gains of 30% from AI. Jason Napier from UBS remarked: "Cost bases are large . . . and these new powerful tools are yet to be fully implemented."

 

Financial Times

PYMNTS

Washington state implemented new taxes on large businesses and rental cars, effective January 1, to address a projected $16bn budget shortfall. Companies with over $250m in taxable income face a 0.5% surcharge, expected to generate $550m annually starting in 2027. Additionally, the advanced computing surcharge rate increased to 7.5%, with a cap of $75m. State Senator Lisa Wellman said: "These measures are crucial for sustaining our fiscal health and funding essential services." The business community anticipates potential cost increases and operational adjustments.

 

The Oregonian

Taiwanese President Lai Ching-te vowed to defend Taiwan's sovereignty following Chinese military drills near its shores, emphasizing China's "expansionist ambitions." The U.S. plans a $11bn arms sale to Taiwan, including missiles and drones, amid rising tensions. Lai stated: "Facing China's serious military ambitions, Taiwan has no time to wait." Taiwan's defense budget will increase to 5% of GDP, with a special $40bn allocation for arms over eight years. This escalation highlights the geopolitical risks in the Asia-Pacific region.

 

NPR

Taiwan Semiconductor Manufacturing (TSMC) received a one-year U.S. license to import chipmaking equipment for its Nanjing plant, ensuring uninterrupted operations and deliveries. The approval replaces an earlier exemption that expired December 31, aligning with new U.S. export control policies aimed at curbing China’s tech advancement. The Nanjing facility produces mature chips, not TSMC’s most advanced semiconductors, and contributes about 2.4% of company revenue. Similar licenses were granted to Samsung and SK Hynix, allowing continued supply of U.S.-controlled technology into China.

 

Reuters

President Trump lifted sanctions on three executives linked to the Intellexa spyware consortium, which the Treasury Department previously identified for its invasive software products. The sanctions, initially imposed in 2023, targeted assets worth approximately $50 million. Treasury Secretary Janet Yellen stated: "This decision reflects a strategic reassessment of our cybersecurity posture and international relations." The move may signal a shift in U.S. policy towards balancing cybersecurity concerns with diplomatic and economic interests, particularly in the technology sector.

 

HuffPost

A federal judge has said that the Trump administration must allow funding for the Consumer Financial Protection Bureau (CFPB) to continue.  The administration has been trying to dismantle the agency, which acts as a guardrail for the safety of the financial system, through staffing and funding cuts. Judge Amy Berman Jackson of the Federal District Court in Washington wrote that the watchdog could continue to receive funding from the Federal Reserve even though the Fed had been operating at a loss since 2022. The Fed’s willingness to pay has not changed, she wrote, adding that “the only new circumstance is the administration’s determination to eliminate an agency created by Congress with the stroke of pen.”

 

NPR

Reuters