Brew Markets Markets Shrug Off Fed Investigation & Paramount Launches Proxy War
Jan 12, 2026
The conversation dives into the market's surprising indifference to the Justice Department's investigation of Fed Chair Jerome Powell. Paramount's bold move in the battle for Warner Brothers Discovery is dissected, especially its direct competition with Netflix. The challenges facing legacy cable networks are highlighted, along with the implications of a recent merger in the airline industry. Finally, Apple's collaboration with Google for Siri's upgrade and a key appointment at Meta showcase trends in tech and AI.
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Markets Normalize Fed Political Risk
- Markets shrugged at the DOJ's criminal probe of Jay Powell because investors see political pressure as normalized and short-lived.
- Traders priced in a short lame-duck period and weighed potential earlier rate cuts against long-term independence risks.
Yield Curve Reveals Conflicting Bets
- The market split its reaction: short-term yields fell on hopes of earlier rate cuts while long-term yields rose on inflation fears.
- That divergence signals traders expect political pressure to influence near-term policy but also raise long-run inflation risk.
Two-Part Valuation Drives M&A Drama
- The Warner sale breaks into two value pools: the studio/IP (HBO, films) and global cable networks (TNT, CNN).
- Bidders are valuing those pools differently, creating room for legal and proxy battles.