| Bloomberg Evening Briefing Americas |
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| US Treasury Secretary Janet Yellen said her department will start taking special accounting maneuvers as of Jan. 21 to avoid breaching the US debt limit, urging lawmakers to take steps to increase or suspend the statutory ceiling. Yellen wrote in a letter to congressional leaders Friday that she was advising them "of the extraordinary measures that Treasury will begin using." It's the second notification in the latest fight over the debt limit. Yellen advised that the Treasury's extraordinary measures would begin by redeeming a portion of, and suspending full investments in, the Civil Service Retirement and Disability Fund. It will also suspend additional investments of amounts credited to the Postal Service Retiree Health Benefits Fund. "The period of time that extraordinary measures may last is subject to considerable uncertainty, including the challenges of forecasting the payments and receipts of the US government months into the future," she wrote. And while Republicans will control all branches of the federal government come Monday, an agreement to avoid disaster isn't necessarily assured. And that limit? It's $36 trillion. —David E. Rovella | |
What You Need to Know Today | |
| Bank of America is divvying up a roughly $1 billion pool of restricted stock among the majority of its staff, lifting compensation to retain employees as the lender seeks to boost earnings while keeping a lid on expenses. The incentive, which comes on top of regular compensation, will go to workers who earn up to $500,000 in total annual pay, according to a memo Friday from Chief Executive Officer Brian Moynihan. About 97% of the bank's global workforce is eligible. Bank of America this week reported $27.1 billion of net income last year, up 2.3% from 2023. | |
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| Donald Trump pledged to create "the greatest sovereign wealth fund of them all." His advisers think one way to do it is a government agency they bet can help mobilize hundreds of billions from Wall Street. The US International Development Finance Corp. stands to get as much as $120 billion in capital of its own. Backers say it will be able to trigger larger geopolitically driven overseas commitments by some of America's most powerful institutional investors. They say it can also help secure supply chains for critical minerals and other resources.  Above, the scene outside the US Capitol ahead of the 60th presidential inauguration in Washington. Cold weather has prompted Donald Trump and government officials to move his inauguration on Jan. 20 indoors. Photographer: Al Drago/Bloomberg | |
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| Intel shares jumped as much as 9.5% Friday morning after a report on a technology news site said the beleaguered chipmaker is an acquisition target. SemiAccurate, a tech-focused newsletter founded by Charlie Demerjian, said it was "read an email about a company trying to acquire Intel, whole" and that the "mystery company has the resources to pull it off." The report did not name the firm potentially interested in buying Intel. Last month, Chief Executive Officer Pat Gelsinger was forced out after Intel's board lost confidence in his plans to turn around the iconic company. Buyers have been circling ever since. | |
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| Stocks notched their best week since the November election. Most groups in the S&P 500 rose with the gauge up 1% on Friday as Nvidia and Tesla led gains in megacaps. Also aiding sentiment were headlines that Trump and Chinese leader Xi Jinping had a phone call in which they discussed trade, TikTok and fentanyl, which could set the tone for relations between the world's two largest economies. Bonds also rebounded this week, with 10-year yields down about 15 basis points in the span. Here's your markets wrap. | |
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| Traders snapped up bullish option bets Friday on exchange-traded funds linked to Chinese stock indexes after that Xi-Trump call. Call options were bought in iShares China Large-Cap ETF, allowing the holders to purchase some 4 million shares by the end of next week at levels from $31-$32, with additional buying for February expiration. Similar calls were in demand for other China-linked funds, including KraneShares CSI China Internet ETF.  Donald Trump, left, and Xi Jinping Photographer: Brendan Smialowski/AFP/Getty | |
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| But Beijing isn't betting everything will be swell come Inauguration Day. Indeed, China is making it harder for its companies to send employees or specialized equipment to India and Southeast Asia. Why? It could be an attempt to prevent them from shifting production in anticipation of higher US tariffs. Officials in Beijing are said to have encouraged regulatory agencies and local governments to curb technology transfers and equipment exports to the regions. The aim is to shore up China's own production, reduce any potential job cuts and prevent foreign investors from fleeing the country. | |
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What You'll Need to Know Tomorrow | |
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