Bloomberg Daybreak: Asia Edition Biden to Block Nippon-US Steel Deal, Investors Await Inflation Report
Dec 11, 2024
Joining the discussion are Josh Wingrove, Bloomberg's White House Reporter, who shares insights on the Biden administration blocking a steel deal citing national security, and William Lee, Chief Economist at the Milken Institute, who analyzes U.S. retail inflation trends. They delve into the complex dynamics of the $1.4 billion merger between Nippon Steel and U.S. Steel, examine investor reactions, and discuss the broader implications for monetary policy as the Fed prepares to navigate rising costs and economic challenges.
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Biden to Block U.S. Steel Sale
- President Biden plans to block the sale of U.S. Steel to Nippon Steel.
- This decision is based on national security grounds, marking a significant development in the ongoing review.
Nippon Steel's Final Push
- Nippon Steel's final push includes a legally binding $1.4 billion commitment for capital expenditures.
- It's unclear whether this will sway the decision, as President Biden's stance remains unchanged.
National Security Concerns
- CFIUS's potential blockage of the deal is unusual for a transaction involving a U.S. ally like Japan.
- The move signals an expanding definition of national security, traditionally applied to adversarial nations and high-tech industries.