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Arson Threats A “Major Issue” In Wildfire-Ravaged Los Angeles County

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Arson Threats A “Major Issue” In Wildfire-Ravaged Los Angeles County

Five people have died, more than 2,000 building structures have been destroyed, and 29,000 acres have been scorched as wildfires rage out of control across Los Angeles County. With over 130,000 residents under evacuation orders, concerns are growing about the very real possibility of arsonists intentionally starting some of the fires. 

According to an LA County fire chief earlier this week, the Palisades Fire began “as a very small fire in a backyard,” then spread up a ridge, was carried by high winds, and created an ember cast that ignited fires throughout the Palisades. 

Some X users struggled to understand how other wildfires many miles away were ignited simultaneously by a single fire. Perhaps high winds were involved. If not, then arson has to be considered.

Let’s not forget: the Palisades have experienced fires before. In 2021, it wasn’t an accident—a homeless man was responsible for starting the fire. And thanks to radical Democrats in the imploding state, the homeless are everywhere. 

Some of the first evidence suggesting that arsonists may have played a role in expanding these fast-moving wildfires comes from Sequoia partner Shaun Maguire, who wrote on X: “This is Andrew Huberman first hand seeing arsonists light a fire in LA I have been told by the LAPD that arson is a major issue in LA right now.” 

Maguire also said, “Democratic leadership has been about style not substance And they have failed us.”

Riigght. 

More evidence of possible arson… 

“An arson suspect was reported on the Los Angeles County scanner prior to the Hollywood Hills fire starting,” News Rated wrote on X. 

Another X user posted audio from an LA police scanner that confirms at least one active arsonist was on the run. 

Other arson reports in the LA area:

Pyro-terrorism is not out of the question as well, given the elevated threat level of terrorism in the US. 

The days of blaming cow farts and Taylor Swift’s private jets are over. 

Tyler Durden
Thu, 01/09/2025 – 13:25

Zelensky Says Send Western Troops To ‘Force Russia To Peace’ In Last-Ditch Appeal Before Trump Inauguration

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Zelensky Says Send Western Troops To ‘Force Russia To Peace’ In Last-Ditch Appeal Before Trump Inauguration

During a meeting of Ukraine’s defense allies held at Ramstein Air Base in Germany on Thursday, Ukrainian President Volodymyr Zelensky tried to once again get his backers to escalate their entry into the war with Russia.

We can perhaps expect such desperate, harebrained appeals to be floated each day until Trump takes office on January 20. Zelensky wants as much commitment to the war from the West as possible ahead of a Trump administration which has repeatedly vowed to negotiate a swift end to the nearly three-year long conflict.

Zelensky’s newest pitch issued Thursday is for the deployment of Western troops in large numbers to Ukrainian soil. He called this one of the “best instruments” to “force Russia to peace.”

AFP/Getty Images

“Our goal is to find as many instruments as possible to force Russia into peace,” he told the meeting of defense representatives.

“I believe that such deployment of partners’ contingents is one of the best instruments,” he emphasized. “Let’s be more practical in making it possible.”

He further acknowledged that Europe is entering a “new chapter” of cooperation and would have “new opportunities” given Donald Trump’s return to the White House.

This was perhaps a way of sugar-coating what for many European officials is cause for deep anxiety and uncertainty. For this reason, Europe has spent many months trying to ‘Trump-proof’ aid to Ukraine in unison with the Biden administration.

“It’s clear that a new chapter starts for Europe and the entire world. Just 11 days from now, a time when we have to cooperate even more, rely on one another even more and achieve even greater results together,” Zelensky said. “I see this as a time of opportunities.”

While Zelensky didn’t get any immediate affirmations that Western troops will suddenly be sent to directly aid his forces in the war, US Secretary of State Lloyd Austin used the occasion to announce the very last aid package of the Biden administration: 

Austin on Thursday announced a $500 million in additional weapons and equipment for Kyiv, which officials say will be the final military aid package before Biden leaves office.

He said the package includes additional missiles for Ukrainian air defense, more artillery ammunition, more air-to-ground munitions and equipment to support Ukraine’s F-16 fighter jets.

This is unlikely to do much, when by all accounts the real most pressing problem remains manpower woes, and a consistently advancing Russian army in Donetsk.

Zelensky did try to find a positive concerning his war effort during the meeting in Germany, calling the Kursk offensive into Russia one of the “biggest wins, not just last year, but throughout the war.”

Russia confirmed as a last weekend that a new Ukrainian counterattack in the border territory was underway. In the last days the Kremlin has claimed to have significantly dented it while destroying many tanks, assets, and personnel.

Tyler Durden
Thu, 01/09/2025 – 11:45

Lebanon Has A President After 2-Year Gridlock, Vows Only State To Have ‘Monopoly’ On Arms

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Lebanon Has A President After 2-Year Gridlock, Vows Only State To Have ‘Monopoly’ On Arms

Lebanon finally has a new president of the nation on Thursday, after a years-long stalemated process which many Lebanese feared would never come to fruition. US-backed army chief Joseph Aoun has been elected after two rounds of voting by parliament, after which he immediately relinquished his military role and appeared in civilian clothing to be quickly sworn in.

Lebanon has been without a president since the tenure of Joseph Aoun (not related), which ended in October 2022. The small Mediterranean and Mideast country which sits West of Syria and north of Israel has been enduring a years-long financial and banking crisis, as well as a year-plus-long devastating war with Israel.

AFP/Getty Images

The past two years had witnessed no less that a dozen failed attempts to elect a new president, thwarted in large part by Hezbollah’s significant influence over the country.

CNN writes that “Hezbollah and its main Shia ally Amal are widely believed to have cast their ballots for Aoun in the second round after withholding their votes in the first round. Aoun won by 99 parliamentary votes out of 128 in the second round of votes.”

Parliament erupted in celebration as soon as enough votes were passed to secure Aoun as president of the country.

International pressure has been mounting for Lebanon to find way forward, given just 17 days remain in a 60-day ceasefire brokered with Israel which requires the deployment of Lebanese troops alongside UN peacekeeping forces in south Lebanon.

“No more mafias, no security hotbeds, no smuggling, no money laundering, no drug trafficking, no interference in the judiciary, no protections, no favoritism, and no immunity for a criminal, corrupt person, or perpetrator,” President Aoun said after being newly sworn in.

Crucially the new leader, who has the backing of the US and Saudi Arabia, has called for all militias, most notably including Hezbollah, to lay down their arms. He said only the state will have ‘monopoly’ on arms.

“My pledge is to exercise my role as the commander-in-chief of the armed forces and to affirm the right of the state to monopolize the carrying of weapons,” he stated. “Lebanon has remained the same despite wars, bombings and mismanagement of our crises,” he elsewhere added.

He stressed: “If we want to build a country, we must all be under the umbrella of the law and the judiciary.” The 60-year old Maronite Christian has long previously vowed he would “limit political interference” in the army.

The now former military chief’s election is seen as a hugely positive sign that the Israel-Hezbollah ceasefire agreement will hold. Without a president, there was waning confidence that key aspects of the arrangement would find implementation, given it required much of south Lebanon to be administered by national army troops.

Hezbollah has long been better armed than even the national military, given also its support from Iran via former President Assad’s Syria. Hezbollah’s leadership has since been decimated and Assad ousted, and Lebanon has been on its knees as it hopes to rebuild following many months of brutal Israeli attacks on Beirut and other parts of the country.

Tyler Durden
Thu, 01/09/2025 – 10:55

“Big Brother Is Watching You” – 150 EU Officials Expected To Monitor Musk-Weidel Chat, Possible Ban On Table

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“Big Brother Is Watching You” – 150 EU Officials Expected To Monitor Musk-Weidel Chat, Possible Ban On Table

Via Remix News,

The European Union’s outrage is only growing over a planned interview hosted by Elon Musk later today with Alternative for Germany (AfD) party co-chair Alice Weidel. Now, Politico is reporting that 150 EU officials are expected to attend the conversation between Musk and Weidel for the purpose of learning whether X is complying with EU rules. In addition, French politicians are already talking about an EU-wide ban.

The claim is that there are fears that Musk’s team will manipulate the algorithm to provide the interview more attention. However, Musk has over 200 million followers and nearly all of his posts receive millions and often tens of millions of views, which makes it certain that the interview, which has also been widely advertised, will receive significant attention.

Weidel has also taken to X about the surveillance of the upcoming interview.

“Big Brother is watching you: 150 EU officials are supposed to monitor my conversation with @elonmusk. An EU that uses its bureaucracy to exercise censorship on social media is instilling the spirit of unfreedom. The #dsa threatens democracy!” she wrote

The officials overseeing the interview are “given relatively extensive power,” according to Politico. They will be able to use, among other things, the Digital Services Act (DSA) to monitor how the algorithm works and how content is being displayed to users.

Politico writes that Musk allegedly pushed certain posts in the past, including one about the Super Bowl in the past. The alleged reason was that Musk was mad that one of President Biden’s posts were getting more attention.

The EU officials are working with experts from the European Center for Algorithmic Transparency” in Seville to determine if such an action will occur once again. However, they will not release this information immediately. Instead, it will like be added to a general procedure against X.

A wide range of EU leaders fear losing power due to shifting public sentiment, and Musk’s X represents their top threat. French Foreign Minister Jean-Noël Barrot, on Wednesday, called for a decisive stand against political influence. When asked whether a ban on X, in the same style as Brazil, was possible, he responded: “That is possible under our laws.”

Spanish Prime Minister Pedro Sanchez also claimed Musk was pushing “hate” and warned against the rise of fascism in Europe.

SPD General-Secretary Matthias Miersch said that Musk’s influence on Germany’s elections now “call into question the foundations of democracy.”

However, Musk is unlikely to manipulate the algorithm in favor of Weidel especially when enough people are already likely to watch the interview without any interference.

Absent some overt manipulation, it is unclear what could possibly be illegal about such an interview. Musk is allowed to interview Weidel.

That is his right and her right.

The bigger problem would be if he censored anyone who criticized such an interview or manipulated the algorithm to suppress this criticism, which is undoubtedly what the old Twitter regime did before his purchase — all of which the EU actively supported

The head of Germany’s Federal Network Agency, Klaus Müller, appeared to take a more measured approach to the issue.

“Not everything that you get upset about is also illegal,” said Müller on Thursday morning on Deutschlandfunk.

“In election campaigns, you also have to put up with things that you personally find inappropriate, indecent or unacceptable.”

Freedom of expression always means “the freedom of those whose opinion you do not share.”

He said that the excitement over the Musk interview was “understandable” but it must first be observed whether any laws are actually broken during the process. He noted, however, that people could choose simply not to listen to the interview.

Read more here…

Tyler Durden
Thu, 01/09/2025 – 10:30

Panic Hedge? Hershey Reportedly Asks CFTC Approval To Buy Huge Cocoa Pile On NY Exchange

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Panic Hedge? Hershey Reportedly Asks CFTC Approval To Buy Huge Cocoa Pile On NY Exchange

The worsening global cocoa squeeze has taken a new turn, with US chocolate giant Hershey Co. reportedly seeking approval from the Commodity Futures Trading Commission (CFTC) to purchase a massive amount of cocoa through the New York exchange. The move highlights that cocoa cost inflation will get even more extreme in 2025.

First reported by Bloomberg, the maker of Reese’s Peanut Butter Cups asked the CFTC for approval to purchase 90,000 metric tons of cocoa on ICE Futures US. Sources said this is equivalent to about 5,000 20-foot containers and more than nine times the amount the exchange allows. 

“The headlines on Hershey today suggest the outlook for confectionary (cocoa) cost inflation is getting even more extreme,” Goldman’s Natasha de la Grense told clients Thursday morning. 

In a note to clients, JPMorgan’s Ken Goldman suggested that Hershey might be attempting to replicate its 2020 strategy, leveraging price dislocations to manage and reduce cocoa costs. 

Still, the current hedge “don’t have to be for the same reason or have the same directional impact,” Goldman said. 

He added: “For all we know, Hershey may very well want to buy hard cocoa because of supply concerns. We also don’t necessarily believe all of 2025’s cocoa needs are hedged.”

In Hershey’s third-quarter earnings call, CFO Steve Voskuil told analysts that the company was “well hedged” in 2024. He said for 2025: “Now you flash ahead to current pricing and you look at pricing for next year, it’s a pretty significant step-up. And it’s not just the cocoa side. The cocoa beans, of course, the biggest piece, but there’s also cocoa butter, cocoa liquor and some of the other physical derivatives of cocoa that’ll be inside that inflation.” 

A Hershey spokesperson told Bloomberg that the company has a” rigorous” procurement process and is “well covered” on its cocoa needs for 2025. 

In markets, the most active cocoa contract rose more than 10% in early trading in New York. Prices nearly tripled in 2024 on tightening global supplies after the spread of disease and poor weather crushed harvests in West Africa. 

In mid-December, Goldman’s commodity derivatives analyst Hugo Fuentes told clients to “go long cocoa” as “prices are positioned for significant upside driven by structural supply deficits, under-hedged consumers, and historically low warehouse stocks.” 

Tyler Durden
Thu, 01/09/2025 – 10:05

Newsom Prepares To Battle Trump 2.0 With $25M Infusion

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Newsom Prepares To Battle Trump 2.0 With $25M Infusion

Authored by Susan Crabtree via RealClearPolitics,

On the same day that outgoing Vice President Kamala Harris affirmed that Donald Trump had defeated her fair and square and calmly presided over the transfer of power, another California Democrat was girding for the next battle.

While Harris and the Senate certified Trump’s victory Monday, Gov. Gavin Newsom spent 45 minutes laying out his topline budget priorities and trying to shore up his vulnerabilities, touting a $332 billion budget without a deficit after two years of tens of billions in budget shortfalls.  

Afterward, however, there was little talk about how Newsom managed to erase such deep budget deficits. Instead, reporters pressed him about upcoming clashes with his longtime foe and what he was doing to try to “Trump-proof” California and prepare for a long-anticipated attempt to win back the White House in 2028.

Newsom missed his opportunity to face off against Trump for control of the presidency when national Democrats decided not to leapfrog over the vice president to tap the charismatic fellow Californian serving as President Biden’s top surrogate – and waiting in the wings.

Sidelined from the big show, Newsom disappeared from the national spotlight for most of the general election campaign, stealing only a few headlines. During Harris’ coronation convention, he openly mocked the process in which Democratic party leaders pressured Biden to step down and gave the nod to Harris even though she hadn’t received one vote in a nearly non-existent primary.  

“We went through a very open process, a very inclusive process,” Newsom snickered during a “Pod Save America” interview. “It was bottom-up – I don’t know if you know that. That’s what I’ve been told to say.”

Just days after the election, Newsom anointed himself the leader of the anti-Trump resistance, convened a special legislative session, and announced he wanted to boost the state Justice Department’s budget by $25 million to wage legal fights with the incoming administration.

It’s familiar ground for Newsom, who played the role of Trump foil during the fiery Republican’s last two years in office. During Trump’s first term, California sued the federal government over environmental rules, immigration policies, and other regulations more than 100 times.

The $25 million legal budget increase is before legislative leaders now, an expenditure Newsom said would be needed to protect “California’s values and programs” on everything from its sanctuary state law protecting illegal immigrant criminals to electric vehicle mandates. Newsom expects his fellow Democrats in the state legislature, who control a supermajority, to pass the request before Trump’s Jan. 20 inauguration while giving him the green light to spend far more.

No one, not even labor leaders in California, believes Newsom won’t end up spending the $25 million. The union representing state attorneys are already expressing concerns that state Attorney General Rob Bonta could hire outside counsel to help fight Trump on high-profile cases after Bonta tried to hire a private law firm to help sue big oil companies until the union’s opposition prevented it.

“The bottom could fall out,” Newsom warned. “Trump could impose 60% tariffs against China … it could move to deport millions and millions of undocumented Americans, or at least undocumented people living in America, and impact millions more mixed-status families, many that include American citizens, and that could impact the labor market, could impact interest rates … inflation could go up.” California Republican Party leaders and mayors from the Central Valley, where Trump is far more popular than in the rest of the state, at their own Monday press conference fired back at Newsom’s budget priorities and plans to use taxpayer funds to fight Trump’s agenda.  

“I talk to Californians all the time, and the Californians who I speak to across the state tell me loud and clear that they want a governor who’s interested in working with our president to improve our lives and not one who spends money on suing the president,” said Corrin Rankin, vice chair of the California Republican Party. “They want our roads fixed, reliable and reasonably priced electricity, and [to] not have to choose between providing food for our families or putting gas in our tanks.”

Joel Campos, Stanislaus County GOP chairman, said voters in the Central Valley had rejected Newsom’s priorities in the November election and urgently need help bringing down the state’s exorbitant cost of living.

“State policies like the gas tax harm Central Valley super commuters and folks who can’t afford an electric car,” Campos said.

Even before Trump takes office, Newsom is headed to Washington this week to try to secure more federal waiver extensions and disaster money from Biden. He still has a two-week window with a friendly Democratic administration to help build a firewall against Trump 2.0.

Newsom Monday acknowledged he is seeking Biden’s assistance in fulfilling several outstanding disaster funding requests, including reimbursements for $5.2 billion in emergency COVID spending by state and local governments even though the state stills owes the federal government tens of billions of dollars in pandemic-related unemployment insurance lost to fraud. California Democrats increased payroll taxes on businesses across the state to pay it back.

Newsom wants Biden to help fulfill the disaster funding in the face of renewed threats from Trump to withhold the relief from California in the future. The governor wants to set aside an undisclosed amount of California’s budget to supplement any lost disaster aid. He will also ask Biden for eight waivers that California has yet to receive from the Environmental Protection Agency to allow it to continue imposing electric vehicle mandates banning the purchase of fossil fuel-burning vehicles by 2035. The waivers would allow California to enforce stronger air standards than the federal law requires. Trump has promised to revoke these rules or simply deny the waivers to federal law California has requested.

Earlier this month, the Biden administration approved a waiver allowing California to proceed with requiring 35% of new 2026 cars sold in the state to be zero-emissions. It also allowed another 2020 regulation requiring reductions in nitrogen oxides emitted by heavy-duty trucks and buses. The Trump administration is expected to challenge the waivers in the courts and deny any other pending waivers for California vehicle standards.

Newsom is also seeking approval of his signature state health care initiatives aimed at improving access to health care, including mental health care, that passed on a narrow margin in early 2023 and uses Medicaid dollars.

Another easy target for Trump is California’s often-lampooned high-speed rail project, attempting to connect Los Angeles to San Francisco since 2008. Its original budget in 2008 carried a $33 billion price tag that has since ballooned to an estimated $105 billion. Even the New York Times has deemed the bullet train a “tortured effort” and a case study in how public works projects can become “like the now-crippled financial institutions of 2008, too big to fail.”

After years of ridicule by House Republicans and efforts to defund the project, former House Speaker Nancy Pelosi secured $6 billion for state rail projects from the Biden administration last year, including $3.1 billion for the Central Valley section of the bullet train. Republicans and the Trump administration have signaled they will try to claw back those funds and stop any future federal investments.

During Monday’s press conference, Newsom accused Trump in his first term of “raiding” nearly a billion federal dollars the state has secured for the high-speed rail project. “It took years to get that back,” he remarked. “We were able to get that back. So that gives you a sense of our sensibilities.”

Newsom also took a jab at the Department of Government Efficiency and Trump’s appointment of billionaire Elon Musk, one of Newsom’s most prominent sparring partners, to run it.

“[Trump’s] celebrating that they intend to eliminate the Department of Education,” he said. “He’s celebrating the leaders of DOGE that are talking about $2 trillion in [government] cuts. You can’t cut $2 trillion without literally gutting entitlements. So that’s a level of uncertainty that’s next-level uncertainty.”

California’s most contentious fight with the Trump administration is already taking shape. After Trump’s electoral and popular vote victory, the city of Los Angeles and San Diego County passed “super-sanctuary” ordinances designed to further preclude cooperation between local law enforcement and federal immigration authorities.

Jim Desmond, a Republican County supervisor who opposed the beefed-up sanctuary policy, says this makes it easier for immigrants charged with some heinous violent crimes, gang activity, and weapons offenses to return to San Diego County streets.

“You know, we all want legal immigration, but if people come here illegally and then commit felonies and beyond, and we’re talking about kidnapping, we’re talking about rape, we’re talking about using a gun in a violent crime,” Desmond told Newsmax in mid-December. “These are people that nobody wants on the streets, and so I think this is going to make us less safe and could put more strain on our law enforcement if we can’t deport these heinous criminals.”

San Diego County’s top law enforcement official, Sheriff Kelly Martinez, immediately countered that she would not follow the new policy and would continue to allow immigration authorities access to illegal immigrants who committed crimes and are held in local jails.  

In late December, an organization led by Trump adviser Stephen Miller sent a letter to San Diego County supervisors and 248 other elected officials in sanctuary jurisdictions warning them that they could be “criminally liable” if they interfered with federal immigration enforcement.

In a Dec. 23 letter, the America First Legal Foundation informed San Diego County supervisors that it had identified the county as a sanctuary jurisdiction violating federal law. It warned the officials that they could face “legal consequences” and could be held civilly liable under federal anti-racketeering laws. The legal nonprofit sent similar letters to Bonta and Los Angeles Mayor Karen Bass.

Tyler Durden
Thu, 01/09/2025 – 09:45

‘It’s All Talk’: Trump Accuses Biden Of Sabotaging ‘Smooth Transition’

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‘It’s All Talk’: Trump Accuses Biden Of Sabotaging ‘Smooth Transition’

Authored by Philip Wegmann via RealClearPolitics,

President Biden and President-elect Trump sat side-by-side in the Oval Office after the election exchanging pleasantries in front of the cameras, both promising “a smooth transition.”

Biden vowed to “do everything we can to make sure you’re accommodated,” insisting the president-elect would get “what you need.” Trump replied, “I very much appreciate that,” agreeing with the president that the coming transfer of power would be “as smooth as it can get.”

That era of good feeling, if it hadn’t already, ended two weeks from inauguration day. “They say we’re going to have a smooth transition,” Trump said Tuesday during a press conference at his Mar-a-Lago estate, “all they do is talk. It’s all talk.” The incoming president feels sabotaged by the outgoing president on at least two fronts: A sudden and sweeping offshore drilling ban and his imminent sentencing in his New York hush money trial.

Biden announced earlier this week that he would protect 625 million acres of ocean from offshore oil and gas drilling along the East and West coasts, the eastern Gulf of Mexico, and Alaska’s Northern Bering Sea. An environmentalist, he has conserved more land and waters than any other president in history and condemned the “false choice” of choosing “between protecting the environment and growing our economy” when announcing the ban under a provision of the 1953 Outer Continental Shelf Lands Act.

Predictably, Trump balked. “It is like the whole ocean,” he said while reflecting on the vast acreage and complaining that his predecessor had just “destroyed the economic viability of drilling in the ocean.”

“I’m going to have it revoked on day one,” he continued before indicating that such a move would likely incur legal challenges. And he should know. Trump tried to reverse former President Barack Obama’s ban on drilling in Arctic and Atlantic waters through executive action, only to be blocked by a federal court in 2019. The judge ruled that reversing a ban would require congressional action.

Democratic administrations tend to be more conservation-minded, while Republican ones are more permissive of oil and gas production. This is nothing. During the campaign, Trump often bragged about how the United States became a net exporter of fossil fuels during his tenure, boasting about the vast reserves of “liquid gold under our feet,” a supply far greater “than any other country.” And while the U.S., in fact, hit record highs of domestic oil production in the last four years, Biden hastened and cheered the transition from fossil fuels to renewable sources of energy.

The latest conservation effort is more than just energy policy in the eyes of Trump. It is instead a direct attempt to hamstring his strategy to bring down inflation before that plan can even start. During remarks at the Detroit Economic Club, Trump vowed that increased drilling would bring down gas prices and reduce manufacturing inputs, thus “driving down inflation.” At Mar-a-Lago, an optimistic president-elect pegged the value of offshore drilling at $50 trillion, complaining that Biden “has thrown it away.”

Of course, there is no love lost between Trump and Biden. The Republican calls his counterpart “the worst president in history.” The Democrat regularly called his predecessor “a threat to democracy.”

“Decades ago, this sort of petty behavior was limited to the Clinton team taking the ‘W’ off the keyboard before Bush took office. Now we have this sort of crap,” Mick Mulvaney, who served as Trump’s second chief of staff, told RealClearPolitics. He also pointed to federal employees at the EPA racing to lock in union contracts ahead of a second Trump term as more evidence of a permissive outgoing president stymieing his successor. “It’s outrageous and will likely lead to a bipartisan effort to dramatically curtail presidential authority,” Mulvaney added, “especially during lame duck periods.”

While Biden sees last-minute conservation as part of legacy building, Mulvaney and other Republicans see it as an ongoing failure of Democrats to understand the electorate.

“What I can’t understand is this: If this is about your legacy, why make your legacy something that American voters just soundly rejected?” added the former chief. “If they thought banning offshore drilling was a good idea, they could’ve voted for Kamala.”

Regardless of partisanship, there was a brief reprise. Susie Wiles, the incoming chief of staff, praised Jeff Zients as “very professional,” telling Axios in a recent interview that Biden’s chief of staff has not only been “very helpful” during the transition but even made “great suggestions, helped make sure we stay on time with required functions, helped us navigate the labyrinth that is the Executive Office.” Zients also recently hosted Wiles at his home.

That kind of generosity has done nothing to soothe the anger of Trump, who was bristling during his news conference at his upcoming criminal sentencing in New York related to a hush-money payment to a porn star during his first presidential campaign. He makes little distinction between state and federal cases, and he seemed to accuse the Biden administration of “playing with the courts.”

A prison sentence is off the table in that case in light of Trump’s electoral victory, but that has not stemmed his anger at New York prosecutors or special counsel Jack Smith, who was temporarily blocked by a federal court from releasing his final report on his investigation into the former president.

While the White House has long insisted that they played no part in any of those legal proceedings, the Washington Post has reported that, in private, Biden has said he regrets picking Merrick Garland to be his attorney general. The reason: the tardiness of the Department of Justice in prosecuting Trump ahead of an election.

That contest is now over. The last remaining prize after an electoral rebuke: the moral high ground. Democrats feel confident they have it, given the way they have handled the peaceful transition of power. “Monday was the four-year anniversary of the only time a sitting president tried to overthrow the American government because they didn’t have the guts to accept that they lost,” a former Biden-Harris transition official replied when asked about Trump’s smooth transition comments before telling RCP that “peaceful transfers are not his style.”

Vice President Harris presided over the count of electoral college votes Tuesday and certified his victory over her. There were no objections. It was the first time that a Republican presidential candidate’s victory was certified without objections from House Democrats since 1988.

Tyler Durden
Thu, 01/09/2025 – 09:05

‘Great British Peso’ Plummets To 13-Month-Low As Investors Lose Faith In The UK

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‘Great British Peso’ Plummets To 13-Month-Low As Investors Lose Faith In The UK

Another day, another pummeling for the pound…

No relief in sight for UK markets this morning with traders sending stock markets lower, gilt yields higher, and cable below 2024 lows.

This is the fourth day of losses on concern the Labour government will struggle to keep the deficit in check as borrowing costs surge.

That smashed the pound to its weakest since Nov 2023…

Source: Bloomberg

The UK’s domestically-focused FTSE 250 Index fell as much as 1.1% to the lowest since April, and was on course for its worst three-day drop since August.

The FTSE 100, which is comprised of large, internationally-geared stocks, outperformed, rising 0.6% as its companies benefit from a weaker pound.

“The worry is that investors have just lost faith in the UK as a place to put their assets,” said Eva Sun-Wai, a fund manager at M&G Investments, on Bloomberg Radio.

The speed of the moves has seen comparisons drawn to the fallout from Liz Truss’ ill-fated mini-budget in 2022, and prompted questions to UK lawmakers in Parliament, but – ever in search of a silver lining – while gilts opened with yields dramatically wider, they have been bid since the open and are now lower on the day…

Source: Bloomberg

Compounding the gilt market’s problems are changes in the pension industry as their investment goals shift, historically a major buyer of UK government debt.

“Markets are rightly nervous about depth of demand for gilts,” said Giles Gale, a strategist at UBS.

“Fixed income weakness has been a global theme, but sentiment on the UK is particularly vulnerable.”

But, as Bloomberg reports, Sun-Wai added the pound’s drop despite a surge in yields can be seen as a signal of capital flight, as normally higher returns would make a currency more attractive.

The move prompted jokes in the City and beyond, with Citigroup describing sterling as the “Great British Peso” – a reference to a more volatile emerging-market currency.

“The pound could remain the preferred pressure valve for anxious investors who worry about the outlook of their UK portfolios,” said Valentin Marinov, head of Credit Agricole’s Group-of-10 FX strategy in London.

“Markets are quite skittish at the moment. FX traders will continue to ‘milk’ the heightened FX volatility for whatever it’s worth.”

But, traders should have no fear because Treasury officials have assured the public that the move as “orderly“…

Add that words to the list: “contained” and “transitory“…

Tyler Durden
Thu, 01/09/2025 – 08:45

Up In Flames: Ukraine Strikes Key Fuel Depot Crucial To Moscow’s Victory Plan

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Up In Flames: Ukraine Strikes Key Fuel Depot Crucial To Moscow’s Victory Plan

Via Remix News,

Ukrainian drones attacked fuel depots in the city of Engels in the Saratov region in western Russia.

There was an explosion and a huge fire. Local authorities decided to introduce a state of emergency, reports the Interia news portal. 

The attack on the oil depot, which supplies fuel to the Engels-2 military airport, was carried out on Tuesday night. The strike was confirmed in a statement by the General Staff of the Armed Forces of Ukraine.

“Numerous explosions were reported near the target and a large-scale fire broke out. Local authorities confirm that an ‘industrial facility’ was hit  (…) More detailed information on the results of combat operations is being clarified,” it was written.

“Damage to the oil base creates serious logistical problems for the strategic aviation of the Russian occupiers and significantly reduces its ability to attack peaceful Ukrainian cities and civilian facilities,” it added.

Due to the huge fire that was caused by the shelling, local authorities announced a state of emergency in Engels. The decision was announced by the governor of the Saratov region, Roman Busargin.

“Unfortunately, while putting out the fire, two employees of the Fire Department of the Ministry of Emergency Situations died. One specialist was also taken to the hospital (…) Throughout the day in Engels, in the area of ​​the fire, specialists from the Rospotrebnadzor department have been taking air samples. No excess pollutants were recorded,” state Russian authorities.

Petro Lakiychuk spoke about the effectiveness of the drone strike on the city of Engels. The Ukrainian expert stated that for the Russians, the military airport “Engels-2,” which is located near the warehouses that were hit, is a key one in the war.

“It is a key airport for Russian strategic aviation, strategic bombers, which are used against Ukraine. In total, they have three such airports,” he said.

“They simply do not have a substitute, where they would make intermediate landings. The more “Engels” is neutralized, the harder it will be for them to work towards victory,” he said.

Read more here…

Tyler Durden
Thu, 01/09/2025 – 08:25

Private-Public Crossover ETF Sees Inflows Explode After Addition Of Musk’s SpaceX

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Private-Public Crossover ETF Sees Inflows Explode After Addition Of Musk’s SpaceX

In a note titled “ETFs Push to Bridge Gap to Private Assets,” Bloomberg Senior ETF Analyst Eric Balchunas discussed the ERShares Private-Public Crossover ETF (XOVR), which provides exposure to both public and private equity securities for institutional, retail, and high-net-worth clients.

Balchunas highlighted that XOVR’s recent addition of SpaceX as its top holding underscores the ETF industry’s efforts to tap into the $14 trillion private-asset market, which has been mostly inaccessible to retail investors. He further noted that since the inclusion of SpaceX, XOVR has attracted $116 million in inflows, quadrupling its assets. 

CNBC confirmed last month that SpaceX hit a $350 billion valuation based on a secondary share sale. The round did not include raising new capital. SpaceX’s soaring valuation comes as the company dominates the global space race with a near-monopoly on the global satellite launch market. Yet SpaceX is a private company. 

Until now: XOVR 

Here’s more about XOVR via Balchunas’ note:

Private-Public Crossover ETF Adds Big Stake in SpaceX

A private company is the largest holding in an ETF for the first-time ever as XOVR has a 9% weighting to Elon Musk’s SpaceX via a special purpose vehicle. XOVR isn’t a new ETF per se, but it recently changed strategy to focus on entrepreneurial companies, including those that are closely held. SEC rules limit such holdings to no more than 15% of the fund. This isn’t totally uncommon in mutual funds, but it’s new terrain for ETFs, which have shown a real and determined interest in penetrating the market for private equity and credit.

ETFs are the preferred vehicle of America’s financial advisers, which have around $40 trillion in assets but limited access to private assets. The race is on to bridge that gap, similar to how funds’ crypto holdings caught up via the hugely successful Bitcoin and Ether ETFs

Flows Show the ETF Is on to Something

Since converting to its public-private strategy and adding SpaceX, XOVR has taken in $116 million, quadrupling its assets. This evidence of investor interest will likely only embolden other ETFs to try the same. XOVR’s performance has helped, as the ETF is up 23% since switching to a public-private crossover strategy, which is about double QQQ and triple SPY. It’s also besting ARK Venture, an interval fund that also has a big holding in SpaceX. Though an interval fund may arguably be the better format to deliver private-company exposure to retail, it’s not the preferred format for these investors. They have shown they want it in ETFs — even if that means bigger premiums and discounts. The fact that XOVR already has doubled ARKVX shows this. 

Balchunas has found a way for investors to own SpaceX through a private-public crossover ETF. 

Tyler Durden
Thu, 01/09/2025 – 08:10