Become more informed in minutes...

Central bank governors from 11 major institutions, including the European Central Bank, Bank of England, and Bank of Canada, have issued a joint statement backing U.S. Federal Reserve Chair Jay Powell as he faces a criminal investigation into a $2.5bn Fed headquarters renovation. The show of solidarity comes amid concerns that the probe, launched by the Trump administration, threatens the Fed’s independence. Mr. Powell has called the investigation a political pretext to undermine monetary policy autonomy.

 

Financial Times

Reuters

Meta plans to cut around 10% of the employees in its Reality Labs division. The cuts to the unit, which has roughly 15,000 employees, are set to disproportionately affect those in the metaverse unit who work on virtual reality headsets and virtual social networks. Consumers have not flocked to buy Meta’s virtual reality headsets, even as the company has spent tens of billions of dollars building them, the New York Times notes.

 

New York Times

Citigroup is set to cut about 1,000 jobs this week as part of a plan announced two years ago to reduce its workforce by 20,000 by the end of this year. “We will continue to reduce our headcount in 2026,” a Citigroup spokesperson said. “These changes reflect adjustments we’re making to ensure our staffing levels, locations and expertise align with current business needs; efficiencies we have gained through technology; and progress against our transformation work.”

 

Bloomberg

Reuters

Finance ministers from G7 members Japan, Britain, France, Germany, Italy, Canada and the U.S., and officials from Australia, Mexico, South Korea and India, have met to discuss ways to reduce dependence on rare earths from China. U.S. Treasury Secretary Scott Bessent, who convened the Washington meeting, said he sought "to discuss solutions to secure and diversify supply chains for critical minerals, especially rare earth elements." He hopes countries would pursue "prudent de-risking over decoupling" from China.

 

Reuters

Exxon Mobil has said it remains interested in sending an assessment team to Venezuela, a day after U.S. President Donald Trump said he might keep the oil company out of the country. At the White House last week, Exxon Mobil chief executive Darren Woods said Venezuela needed to make legal changes and protect investments before the company would commit to operating there. Trump later said that he "didn't like Exxon's response." 

 

Reuters

Paramount is intensifying its hostile takeover attempt of Warner Bros. Discovery by launching a proxy fight to replace board members and filing a lawsuit to obtain details about Warner’s pending $72bn deal with Netflix. Paramount argues its $77.9bn all-cash offer for all of Warner - including its cable networks - is financially superior, while Warner claims the Netflix deal offers greater shareholder value by allowing investors to retain stakes in the spun-off cable assets. The lawsuit, filed in Delaware, demands disclosure of Warner’s valuation methods and a key clause in the Netflix deal tied to debt restructuring. Paramount’s actions come ahead of Warner’s shareholder meeting, where it intends to nominate new board members willing to consider its proposal. The move marks a sharp escalation in the battle over Warner’s future, with regulatory scrutiny and political opposition - especially from President Trump - looming over both proposed transactions.

 

Wall Street Journal

Bloomberg reports on how Colorado sparked an international trend for salary transparency when it started forcing employers to include pay ranges in job postings in 2021. Since then, about a dozen other U.S. states have adopted similar requirements, and the European Union will follow suit later this year. Colorado’s law mandates employers to specify pay ranges, and also related benefits such as healthcare, in all job postings. The rule also prohibits employers from asking job candidates about their pay history or using it to determine wages. Such practices have been identified as perpetuating the pay discrimination often faced by women. 

 

Bloomberg

Residential brokerage Compass closed its acquisition of Anywhere, its largest rival, after Justice Department leaders overruled staff concerns that the deal could hurt competition in the real estate market. The DOJ allowed the official waiting period for a federal antitrust review to expire on Jan. 2 even after staff had recommended further scrutiny, sources said. Compass was thus able to close the deal months ahead of schedule.

 

Bloomberg

Target is under growing pressure in its hometown of Minneapolis after federal immigration agents detained two U.S. citizen employees at a suburban store, triggering protests and calls for the retailer to take a stand. Video of the incident went viral, prompting local officials and activists to demand that Target protect workers and shoppers from ICE actions on its premises. Though Target has yet to issue a public statement, it has advised staff to avoid interference with law enforcement and reinforced that agents need a warrant to access private areas. Similar incidents have occurred at other major retailers in the region, including Walmart and Home Depot, amid rising tension over federal immigration enforcement in public retail spaces.

 

CBS News

Wall Street Journal

California Gov. Gavin Newsom has pledged to defeat a proposed wealth tax targeting billionaires, warning it could drive high earners out of the state and damage the local economy. The proposed ballot initiative, backed by the healthcare workers’ union SEIU-UHW, seeks a one-time 5% tax on individuals with a net worth over $1bn, retroactive to January 1st 2026. While the tax could raise tens of billions of dollars for healthcare, food assistance, and education, Newsom argues it would lead to long-term losses by encouraging the wealthy to leave California. He’s working behind the scenes to oppose the measure, even as union supporters gather signatures to qualify it for the November ballot.

 

New York Times

Politico

JPMorgan Chase has reported a 7% drop in profits for the final three months of 2025, weighed down by a jump in reserves it set aside for possible loan losses. Net income totaled $13bn, just ahead of analysts' estimates for $12.8bn. The company reported a $2.2bn provision for possible credit losses related to its agreement to take over Apple’s credit card portfolio from Goldman Sachs. “The US economy has remained resilient. While labor markets have softened, conditions do not appear to be worsening,” chief executive Jamie Dimon said.

 

Financial Times

New York Times

Reuters

Abercrombie & Fitch shares tumbled 18% on Monday after the retailer reported fourth-quarter sales growth of around 5%, hitting only the midpoint of guidance and failing to raise its outlook. The disappointing holiday performance triggered a broader selloff among mall-based retailers, with American Eagle and Urban Outfitters also posting lackluster results. Despite earlier strong back-to-school demand and successful marketing campaigns, the update signals a slowdown in momentum for Abercrombie and other teen-focused brands.

 

Bloomberg

Reuters

China will eliminate or reduce value-added tax rebates on 249 products starting April 1, according to the Ministry of Finance. These include solar cells and lithium-ion batteries, with rebate rates on the latter dropping from 9% to 6%. The move aims to alleviate trade tensions and improve government revenue. Michelle Lam, Greater China economist at Societe Generale, observed: "Beijing is taking more steps to address its trade imbalances." 

 

Business Times SG