Prof G Markets Nippon & U.S. Steel Deal Closes, Fed Holds Steady, and YouTube Wins Over Older Viewers
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Jun 19, 2025 A fascinating deep dive into Nippon Steel's $14 billion acquisition of U.S. Steel reveals how a 'golden share' played a pivotal role. The discussion also tackles the Federal Reserve's decision to keep interest rates unchanged amid inflation concerns. Meanwhile, there's a notable shift in American viewing habits, with streaming now overtaking traditional TV, especially among older viewers. Insights into how platforms like YouTube are adapting their strategies to attract this demographic add an intriguing layer to the entertainment industry's evolution.
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Golden Share M&A Precedent
- The U.S. government has taken an unusual "golden share" in Nippon Steel's acquisition of U.S. Steel, granting presidential veto power on key decisions.
- This could set a precedent for future foreign acquisitions, raising uncertainty in the M&A market.
Golden Share Creates Market Uncertainty
- If golden shares become common, foreign investors might hesitate to invest in U.S. companies fearing limited control.
- This could specifically impact sensitive sectors like metals and manufacturing.
Fed Holds Rates Steady
- The Federal Reserve held interest rates steady, rejecting expectations for a July rate cut.
- Fed signals future rate cuts are increasingly unlikely due to inflation concerns, especially tariffs raising prices.