A Cautious Cut By The Fed
The Federal Reserve approved a quarter-point rate cut, but paired it with notably hawkish messaging that signaled a high bar for further easing. The 9–3 vote masked deeper divisions, with an unusually large number of dissents and “soft dissents” suggesting many officials believe policy is already sufficiently loose. The Fed’s rate outlook barely changed, projecting only modest cuts in later years, though markets still see a meaningful chance of more easing sooner. Officials struck an upbeat tone on growth and announced renewed short-term bill purchases to stabilize funding markets, a move some view as quiet additional stimulus.
Widely Anticipated Jobs Report
The November jobs report arrives late and unusually combined with partial October data after a lengthy government shutdown disrupted data collection. Economists expect modest job growth around 40,000 and an unemployment rate holding near 4.4%, though they caution the figures will come with significant caveats. Shutdown effects and federal worker buyouts may distort payroll numbers, even as other indicators point to a cooling but stable labor market. Beneath the headline data, analysts will focus on sector-level job trends, slowing wage growth, and participation rates for clearer signals on the economy’s direction.
Paramount Challenges Netflix for Warner Bros. Discovery
Paramount has launched an unusual all-cash bid directly to Warner Bros. Discovery shareholders after losing out to Netflix’s lower-priced but more complex offer. Paramount CEO David Ellison argues his $30-per-share, $108 billion proposal delivers more immediate value and faces fewer antitrust hurdles than a Netflix–WBD combination. WBD’s board favored Netflix’s deal, betting that spinning off cable assets will unlock greater long-term value, but Paramount is pushing shareholders to reconsider. The move raises the prospect of a bidding war, with markets reacting swiftly and regulatory scrutiny looming large.
America’s Shipbuilding Revival Depends on Allies
President Trump has launched an ambitious push to revive U.S. shipbuilding for economic and national security reasons, but industry leaders say foreign expertise and investment are essential given America’s limited capacity. China dominates global shipbuilding, while the U.S. has just eight active shipyards and a negligible share of new vessel orders, making rapid domestic expansion a steep challenge. To close the gap, the administration is partnering with allies like South Korea, Italy, and Finland, bringing in companies such as Hanwha and Fincantieri to build LNG carriers, naval vessels, submarines, and icebreakers while training U.S. workers. The strategy aims to rebuild long-term industrial capability, but progress will hinge on workforce development, technology transfer, and sustained demand rather than quick wins.
As always, Base Wealth Management remains focused on aligning investment strategies with your long-term goals amid evolving market conditions.
