December 19 2024

1. Trump, Musk Kill Spending Bill, Government Shutdown Looms
2. Supreme Court to Hear TikTok Ban Case
3. Fed Plans to Slow Rate Cuts, Stocks Plunge
4. Labor Shortages Threaten National Security
5. Amazon Workers Strike Before Christmas Rush
December 19, 1997: Movie “Titanic” debuts in theaters

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1. Trump, Musk Kill Spending Bill, Government Shutdown Looms

With a 4:15 a.m. ET social-media post on Wednesday, Elon Musk declared that a must-do spending bill “should not pass.” By early evening, the bill was dead, leaving the government barreling toward a weekend shutdown just before Christmas. Lawmakers who might have underestimated Musk’s ability to shake up Washington were suddenly having second thoughts. Over the course of Wednesday, Musk pressed for Congress to kill the bill. He encouraged his more than 200 million followers on X, the social-media platform that he owns, to call their representatives to vote against it, and he warned that Republicans who voted for it should lose their congressional seats in two years. He also said Congress shouldn’t pass any more legislation until President-elect Donald Trump takes office, which would ensure a partial government shutdown until Jan. 20. “Stop the steal of your tax dollars!” he posted on X. “Call your elected representatives now. They are trying to railroad this thing through today!” The full force of Musk’s pressure campaign was on display all day Wednesday before Trump weighed in to oppose the bipartisan deal struck by congressional leaders, underscoring that Musk’s influence on government spending and policy appeared to be much greater than initially envisioned.

Editor’s note: there is a decent chance of a partial government shutdown beginning this weekend.

Article Source: WSJ

2. Supreme Court to Hear TikTok Ban Case

The U.S. Supreme Court decided on Wednesday to hear a bid by TikTok and its China-based parent company, ByteDance, to block a law intended to force the sale of the short-video app by Jan. 19 or face a ban on national security grounds. The justices did not immediately act on an emergency request by TikTok and ByteDance, as well as by some of its users who post content on the social media platform, for an injunction to halt the looming ban, opting instead to hear arguments on the matter on Jan. 10. The challengers are appealing a lower court's ruling that upheld the law. TikTok is used by about 170 million Americans. Congress passed the measure in April and President Joe Biden, a Democrat, signed it into law. The Justice Department had said that as a Chinese company, TikTok poses "a national-security threat of immense depth and scale" because of its access to vast amounts of data on American users, from locations to private messages, and its ability to secretly manipulate content that Americans view on the app. TikTok has said it poses no imminent threat to U.S. security.

Article Source: Reuters

3. Fed Plans to Slow Rate Cuts, Stocks Plunge

The Federal Reserve signaled greater doubt over how much it would continue to cut interest rates after agreeing to a reduction on Wednesday that Chair Jerome Powell conceded had been a close call. Stocks went into a nosedive, with the major indexes all logging their worst day in months.  The Dow Jones Industrial Average lost more than 1,100 points, or 2.6%. That marked its 10th loss in a row—its worst losing streak in 50 years. The S&P 500 lost nearly 3%, and the Nasdaq Composite lost 3.6%. The U.S. dollar jumped to its highest value against a basket of other currencies in more than two years.

Article Source: WSJ

4. Labor Shortages Threaten National Security

Jennifer Boykin, president of Newport News Shipbuilding, said the operation here loses 20% of its hourly craft workers each year to attrition — retirement, quits, dismissals—compared with 10% before the pandemic. Newport News Shipbuilding, a unit of Huntington Ingalls Industries, and General Dynamics’ Electric Boat unit based in Groton, Conn., jointly build attack submarines (used mainly against others ships) and ballistic missile submarines (part of the nuclear deterrent).  Labor shortages are now a national-security problem. They are a key reason numerous navy programs are behind schedule and over budget. The Navy had originally budgeted $15 billion for three Virginia-class attack subs in fiscal 2024 and 2025. The Biden administration has just asked Congress for an additional $3.4 billion, plus $1.6 billion for a ballistic missile submarine. The USS Arkansas, a Virginia-class sub, is expected to join the fleet in 2026, three years late.

Article Source: WSJ

5. Amazon Workers Strike Before Christmas Rush

Amazon.com workers at seven U.S. facilities walked off the job early on Thursday during the holiday shopping rush, aiming to pressure the retailer into contract talks with their union. Warehouse workers in cities including New York, Atlanta and San Francisco are taking part in the "largest" strike against Amazon, said the International Brotherhood of Teamsters, which represents about 10,000 workers at 10 of the firm's facilities. "If your package is delayed during the holidays, you can blame Amazon's insatiable greed," Teamsters' General President Sean O'Brien said late on Wednesday. The retailer's shares were trading nearly 1% higher in premarket hours, a sign that investors do not expect a big disruption from the strike. Observers said Amazon was unlikely to come to the table to bargain as that could open the door to more union actions. It employs more than 1.5 million people globally and has said it prefers direct relationships with workers.

Article Source: Reuters

December 19, 1997: Movie “Titanic” debuts in theaters

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Sources

1. https://www.wsj.com/politics/policy/musk-ramaswamy-doge-spending-bill-social-media-23fc0249?st=AgUTqs&reflink=article_copyURL_share

2. https://www.reuters.com/legal/us-supreme-court-consider-tiktok-bid-halt-ban-2024-12-18/

3. https://www.wsj.com/economy/central-banking/fed-cuts-interest-rates-again-but-officials-expect-fewer-reductions-in-2025-70562fac?st=qSTq94&reflink=article_copyURL_share

4. https://www.wsj.com/economy/the-hidden-threat-to-national-security-is-not-enough-workers-1dc7abe1?st=yThGGM&reflink=article_copyURL_share

5. https://www.reuters.com/technology/amazon-workers-go-strike-us-ahead-christmas-rush-union-seeks-contract-talks-2024-12-19/