Business
Mark Zuckerberg announced that Meta would end the fact-checking system on its Facebook and Instagram platforms, and instead allow users to verify the accuracy of posts with something akin to the community notes that X has implemented. Meta ramped up its fact-checking after Donald Trump’s first election win in 2016, but Mr Zuckerberg accepts that it was responsible for “too many mistakes and too much censorship” and that the new policy marks a return to free-speech principles. Some saw the timing of the rethink as bending the knee to Mr Trump.
Meanwhile, Meta added three new directors to its board, including Dana White, an influential media executive and vocal supporter of Mr Trump. The other two new directors are John Elkann, the boss of Exor, which part-owns The Economist’s parent company, and Charlie Songhurst, who advises Meta on artificial intelligence.
Jensen Huang, the chief executive of Nvidia, unveiled a new range of products and partnerships, and promised that his company would be at the forefront of the revolution in robotics. Nvidia has developed software that allows businesses to train robots, including humanoid ones. He also announced a venture with Toyota in autonomous cars. Nvidia’s share price fell sharply, however, as investors bet that the returns from all the shiny new investments are years away.
Joe Biden’s decision to block a takeover of US Steel by Nippon Steel of Japan was contested in a lawsuit filed by both companies. The firms argue that Mr Biden’s order sidesteps the “constitutional guarantee of due process” and came about through “unlawful political influence”. Steel unions in America are against the deal. The companies pointed out that “No transaction involving a Japan-based company of any kind has ever been blocked by the president on national security grounds.” US Steel faces an uncertain future without the merger.
Going out with a bang
Proving that he’s not done yet despite his imminent departure from the presidency, Mr Biden also banned offshore drilling along most of America’s coastline, though drilling in most of the areas covered by the ban is already restricted and the western Gulf of Mexico is not included. Donald Trump says he will reverse the order “immediately” upon taking office.
Continuing the flurry of activity in the Biden administration the Pentagon added CATL, the world’s biggest maker of electric-car batteries, and Tencent, a tech giant, to its list of Chinese companies that it suspects of having military links. Both described their inclusion on the list as a mistake, and Tencent said it would make no difference to its business. The share prices of both companies swooned, however.
Ahead of the incoming change of government in America Michael Barr is to step aside from his role at the Federal Reserve as vice-chairman for banking supervision, but will stay on as one of the central bank’s governors. Mr Barr has rubbed up against Wall Street’s titans with his stricter regulatory proposals, but he was forced to water down new capital requirements in 2024 after robust opposition from the likes of JPMorgan Chase and Goldman Sachs. As Mr Barr is staying at the Fed, Mr Trump will have to name another of its governors as the new banking supervisor.
The new year kicked off with turbulence in global bond markets, as investors fretted about high levels of government borrowing. The sell-off was worst in Britain, with the yield on ten-year government bonds touching 4.9%, the highest since 2008, during the financial crisis. Higher yields threaten the government’s fiscal-stability rules, which could result in yet higher taxes or reduced public spending. China saw the exact opposite, as bond yields plunged to their lowest level on record.
Higher energy prices helped push up the euro zone’s annual inflation rate to 2.4% in December. Inflation has been steadily rising in the currency bloc since September, when it stood at a more than three-year low of 1.7%.
Getty Images agreed to merge with Shutterstock, which will create the dominant player in the business of supplying photographs and other visual content to the media. Both companies are grappling with the rise of generative AI, and both offer services that allow users to create their own AI imagery.
Ready to rumble
A host of wrestling stars turned up in Netflix’s first broadcast of WWE’s “Raw” programme. John Cena, The Rock, Hulk Hogan and the Undertaker all made appearances at Netflix’s latest foray into live streaming. It hopes to knock out other competitors vying to dominate the streaming of sports.