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Good morning! Here is the latest in trending:
Thumbs down: Warner Bros. Discovery’s (WBD) board plans to reject Paramount Skydance’s (PSKY) hostile takeover bid, while Jared Kushner’s Affinity Partners has backed out.
Possible limits: The White House is planning an executive order that would curb shareholder payouts for defense contractors whose projects are delayed and over-budget.
Major retreat: The EU reversed course on its post-2035 combustion-engine ban, and moved to ease regulatory burdens on European automakers.
Oil futures (CL1:COM) are up more than 2% this morning after President Trump ordered a “total and complete” blockade of all sanctioned oil tankers entering and leaving Venezuela. Trump’s move is a major escalation in tensions between the U.S. and Venezuela, and follows last week’s seizure of a sanctioned tanker off the Venezuelan coast by U.S. forces.
What’s at stake: “Venezuela is completely surrounded by the largest Armada ever assembled in the History of South America,” Trump posted on Truth Social. “It will only get bigger, and the shock to them will be like nothing they have ever seen before — Until such time as they return to the United States of America all of the Oil, Land, and other Assets that they previously stole from us.” Trump also designated the Maduro regime as a foreign terrorist organization. Venezuela denounced the move, saying it violated international law, and reaffirmed its sovereignty over its natural resources.
Around 30% of Venezuela’s oil shipments are at risk if the U.S. continues to enforce sanctions, according to Rapidan Energy; tankers loaded nearly 590,000 bbl/day for export from Venezuela last month. Meanwhile, Venezuela’s oil customers are now demanding deeper discounts and revised spot contracts from state-owned PDVSA, Reuters reported. Discounts for Venezuelan crude bound for China widened significantly in recent days, reflecting the rising cost of a “war clause” requested by shipowners to shield themselves from disruptions due to the U.S. military buildup in the Caribbean.
Business as usual: While U.S. military pressure on Venezuela has forced vessels to idle at ports or steer away from the region, Chevron (CVX) remains the only company exporting crude from the country without delays. “Chevron’s operations in Venezuela continue without disruption and in full compliance with laws and regulations applicable to its business, as well as the sanctions frameworks provided for by the U.S. government,” a company spokesperson said. The output from the fields where Chevron and its joint ventures operate represents about one-third of Venezuela’s total oil production, and less than 10% of Chevron’s global output. (3 comments)
Here’s the latest Seeking Alpha analysis
The Bubble Everyone Sees – And The One I’m Preparing For
Broadcom: What So Many Analysts And Investors Got Wrong – Buy The Dip
The Flavor Of Resilience: Why Essential Sectors Still Deliver; Yields +11%
Nebius: Why The Stock Is Trapped In Consolidation
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What else is happening…
Payrolls growth in November rebounds from October loss.
U.S. blasts Europe for targeting Big Tech with fines, lawsuits.
Senators investigate AI data centers’ role in rising electricity bills.
OpenAI (OPENAI) in talks to raise $10B from Amazon (AMZN).
Waymo (WAYMO) seeks $15B funding at valuation nearing $100B.
Tesla (TSLA) faces potential 30-day suspension of California sales.
FDIC lays the groundwork for bank-issued payment stablecoins.
Panama ports deal: China now wants controlling stake for Cosco.
Trump set to interview Fed’s Waller for chair role on Wednesday.
CDC signs off on change in newborn hepatitis b vaccine schedule.
Today’s Markets
In Asia, Japan +0.3%. Hong Kong +0.9%. China +1.2%. India -0.1%.
In Europe, at midday, London +1.5%. Paris -0.2%. Frankfurt -0.1%.
Futures at 6:30, Dow +0.2%. S&P +0.3%. Nasdaq +0.4%. Crude +2.3% to $56.41. Gold +0.3% to $4,346.20. Bitcoin -0.4% to $86,805.
Ten-year Treasury Yield +3 bps to 4.18%.
On The Calendar
Companies reporting today include Micron Technology (MU) and General Mills (GIS).
See the full earnings calendar on Seeking Alpha, as well as today’s economic calendar.
