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The Trade War Is De-Escalating And Settling Around 15% Tariffs, Bank Of America's CEO Says
Bank of America CEO Brian Moynihan said the Trump administration's trade policy is showing signs of de-escalation after a year in which tariffs unsettled businesses. "If you go back to where we were in April, there was a lot of lack of understanding about where this would end up, and that affected small businesses and medium-sized businesses," Moynihan said on CBS News' "Face the Nation," which aired Sunday. "They were shocked," he said.
Since returning to office, President Donald Trump has rolled out a 10% baseline tariff on imports, alongside higher rates for certain countries and product-specific duties such as those on automobiles. But what initially disrupted planning and purchasing decisions is now becoming clearer, Moynihan said, with Bank of America's internal outlook pointing toward a broad tariff floor. As negotiations progressed, Moynihan said tariffs have begun clustering around roughly 15% for many countries, with higher levels reserved for those that decline to buy US goods or ease non-tariff barriers. China, however, is an exception, Moynihan said. "China's a different question, because the national security interests, the rare earth minerals, the magnets, batteries, just AI, all that stuff. It's a very different case."
Read more at Business Insider
China Leads Decline in Global Steel Output
Global steel production is on track to drop for the fourth consecutive year, as the eleven-month output for 2025 now totals 1.66 billion metric tons, down -2.0% from the January-November 2024 result, according to the World Steel Assn. Many of the same conditions that contributed to the past annual declines continue to affect steel output worldwide, including weak industrial demand and slow construction activity. One factor that has influenced the global steel market is the enactment of U.S. tariffs on steel imports since April, which has resulted in rising output by domestic steelmakers.
- Chinese raw-steel output in November was 69.9 million metric tons - roughly half of the world’s total last month - which was -3.0% less than the October total and -10.9% less than the November 2024 result.
- During November, Indian steelmakers produced 13.7 million metric tons of raw steel, nearly 10.0% of the global output for the month. The total is roughly even (+0.7%) with the October total, but 10.8% more than last November’s result.
- During November, U.S. steelmakers produced 6.8 million metric tons of raw steel, -2.9% less than during October but 8.5% more than the November 2024 result.
- Japan, now ranking fourth among the world's largest steelmaking nations, produced 6.8 million metric tons during November, -1.5% less than during October and -1.6% less than November 2024.
- In the European Union, including Germany, the eight-largest steel-producing nation, November yielded 10.2 million metric tons of raw steel, which was -3.5% less than last November.
Read more at American Machinist
Be Prepared to Keep Paying More for Electricity
Most Americans are paying more for electricity—and need to prepare their wallets for further pain ahead. Data centers are getting much of the blame lately for rising power costs, but they aren’t the only catalyst and don’t always cause increases. The reasons our bills are rising are complex and varied. Hurricanes, wildfires, state renewable-energy plans and the replacement of aging or damaged grid equipment are all playing a role. “I do think that we’re entering a new era, a new politics of electricity,” said Charles Hua, executive director of PowerLines, a nonprofit that advocates for utility customers.
The Energy Department expects the U.S. average residential electricity rate to rise around 4% next year following a 4.9% increase in 2025. Spending on power is usually the second-biggest energy-related expense for consumers after gasoline. The cost of electricity generally has moved higher with inflation, but it began outstripping other cost increases in 2022, when natural-gas prices soared after Russia launched its full-scale invasion of Ukraine. Outsize price shocks haven’t been universal. Customers in most U.S. states saw electricity-price increases that were lower than inflation from 2019 to 2024, according to a study led by Lawrence Berkeley National Laboratory.
Read more at The WSJ
Nvidia takes $5 billion stake in Intel under September agreement
Nvidia has purchased Intel shares worth $5 billion, the American semiconductor firm said in a filing on Monday, carrying out a transaction announced in September. The leading AI chip designer said in September it would pay $23.28 per share for Intel common stock, in a deal that is seen as a major financial lifeline for the chipmaker after years of missteps and capital intensive production capacity expansions drained its finances.
The world's most valuable firm has bought over 214.7 million Intel shares at the price set out in the September agreement, in a private placement, according to Monday's filing. U.S. antitrust agencies had cleared Nvidia's investment in Intel, according to a notice posted by the U.S. Federal Trade Commission earlier in December.
Read more at Yahoo Finance
GM’s Record Stock Performance Beats Tesla, Ford And Other Automakers In 2025
General Motors is on pace to be the top U.S.-traded automaker stock of 2025, as shares of GM are having their best year since the Detroit company’s reemergence from bankruptcy in 2009. GM stock is up over 55% to a record of more than $80 per share, as of Friday’s close, topping the company’s previous annual increase of 48.3% last year. That includes a nearly 13% rise so far in December, adding to five consecutive months of share gains, according to FactSet.
Several factors have been driving the share increase. But GM CEO Mary Barra and other executives have contended for years that the automaker’s stock has been significantly undervalued given its consistent earnings performance. “Great vehicles, innovative technology, a rewarding customer experience, along with strong financial results, will continue to set GM apart in an increasingly competitive landscape,” Barra said during the company’s last quarterly earnings call in October. GM’s stock performance compares with a 17% yearly increase for Tesla as of Friday’s close, a 34% jump for Ford Motor and a 15% loss for Chrysler parent Stellantis. Other U.S.-traded automakers such as Honda Motor and Toyota Motor have had smaller annual gains.
Read more at CNBC
Lockheed Awarded $3.6B for F-35 Support
The Pentagon awarded $3.63 billion to Lockheed Martin as a modification to an existing contract to fund ongoing logistical support for F-35 jets, for the U.S. Air Force, U.S. Marine Corps, U.S. Navy, and foreign military operators of the Joint Strike Fighter aircraft. The funds will cover a wide range of services and activities through 2026, including ground maintenance, “action request solution,” depot activities, automatic logistics information system operations and maintenance, reliability and maintainability, and supply-chain management.
Lockheed is the prime contractor for the F-35 Joint Strike Fighter program, which has more than 1,600 total suppliers, including major manufacturers like BAE Systems, Northrop Grumman, and Pratt & Whitney. The single-engine, Stealth-enabled aircraft is deployed for ground attack and combat, and available in three variants. More than 1,200 of the fighter jets have been completed and delivered to the USAF, USMC, USN, and defense forces in about a dozen other nations.
Read more at American Machinist
Border Delays of Industrial Goods Stall Global Infrastructure
Disruption in industrial supply chains is hampering global infrastructure development, according to a new report from DP World. The report, based on a global survey, finds that 94% of industrial cargo owners face customs or border delays, slowing the movement of essential machinery, steel and equipment to construction and energy projects worldwide. The study highlights a sector struggling to meet the global population’s needs, threatening economic growth, climate security and quality of life. Industrial goods supply chains – which power everything from roads and bridges to factories and renewable energy - are now operating with near-constant disruption.
Ninety-one percent of respondents report border delays and container shortages, while 88% report climate-related disruptions pushing projects beyond milestone windows and commissioning dates. The effect on project performance is immediate. Each extra day at a port or border has a double impact – raising logistics costs and inflating the cost of people and assets waiting on-site. In response, the sector is shifting toward predictive capability and upstream control, with 79% of businesses expecting to increase logistics spending over the next three years. Crucially, data from the report shows that investment in inbound logistics and production logistics technology can reduce disruption by 60%.
Read more at Material Handling & Logistics
Oil Prices Rise As Tensions Flare In Yemen, Peace Hopes Dented In Ukraine
Oil prices rose by more than $1 on Monday as traders braced for potential supply disruptions in the Middle East due to rising tensions in Yemen, and Russia accused Ukraine of launching a drone attack on its President Vladimir Putin's residence. Brent crude futures rose $1, or 1.7%, to $61.64 a barrel by 1:18 p.m. ET (1818 GMT), while U.S. West Texas Intermediate crude was up $1.10, or 1.9%, at $57.84.
"The market's focus has shifted toward the Middle East, where fresh instability, including Saudi air strikes in Yemen, is keeping supply-disruption headlines in play," Gelber & Associates said in a note. Yemen's Saudi-led coalition said any military moves by the main southern separatist group in the eastern province of Hadramout that undermined de-escalation efforts would be countered to protect civilians, the Saudi state news agency reported on Saturday.
Read more at MSN
New NASA Boss Isaacman Says U.S. Will Return To The Moon Within Trump’s Term
Recently appointed NASA Administrator Jared Isaacman on Friday told CNBC that the U.S. will return to the moon within President Donald Trump’s second term. Isaacman, a close ally of SpaceX CEO Elon Musk, told CNBC’s “Closing Bell Overtime” that Trump’s recommitment to exploring the moon is key to unlocking the “orbital economy.” “We want to have that opportunity to explore and realize the scientific, economic and national security potential on the moon,” he said.
Lunar opportunities include establishing space data centers and infrastructure, as well as potentially mining Helium-3, a rare gas embedded in the moon’s surface that could become a major fuel for fusion power, Isaacman said. He added that after building a “moon base,” NASA will look into making investments in nuclear power and space nuclear propulsion to further exploration. NASA is currently working with various contractors including SpaceX, Jeff Bezo’s Blue Origin and Boeing, to participate in its Artemis campaign, a moon exploration program that also aims to prepare for Mars missions.
Read more at CNBC
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