Biden To Block US-Japan Steel Deal | US Bans China Drone | Trouble for Apple in China

January 03, 2025

Market Update

  • China lets Yuan weaken after defending 7.3 per dollar for weeks.

  • Reserves at Fed sink below $3 Trillion to the lowest since 2020.

  • Euro falls to weakest versus Dollar since 2022.

  • Global equity fund inflows drop on higher US bond yields.

Biden to block US-Japan steel deal

President Biden's decision to block Nippon Steel's $14.9 billion purchase of U.S. Steel ends a long-running and contentious merger plan.

The Committee on Foreign Investment in the United States (CFIUS) had referred the decision to Biden, who will leave office on January 20.

The deal faced opposition from the United Steelworkers union and politicians, despite efforts by Nippon Steel to address concerns.

Biden's decision came despite some senior advisers' concerns that blocking the deal could harm U.S.-Japan relations. [Learn more]

Beijing slams US over potential Chinese drone ban

The U.S. Commerce Department is considering new rules to address risks posed by drones made with technology from foreign adversaries like China and Russia.

The potential restrictions could lead to regulations or bans on Chinese drones, which dominate the global market.

Chinese foreign ministry spokeswoman Mao Ning accused the U.S. of interfering with normal economic and trade exchanges and undermining global production and supply chains.

The decision on the ban will fall to the incoming administration of President-elect Donald Trump. [Learn more]

Apple's China troubles mount as foreign phone sales sink for 4th month

Shipments of foreign-branded smartphones to China, including Apple's iPhone, fell by 47.4% in November 2024 compared to the previous year.

The decline follows a 44.25% year-on-year drop in October 2024, marking a continued downward trend.

Economic uncertainty and increased competition from domestic brands like Huawei have contributed to the slump.

Apple launched a rare four-day promotion in China, cutting prices by up to 500 yuan ($68.50) on its flagship models to boost sales. [Learn more]

Joke of the Day!

Why is there a fence around a cemetery?

People are dying to get in!

Generative AI Photo of the Day!

Credit: DALL-E 3

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