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Biden Blocks U.S. Steel Deal. What Happens Now?

Your unbiased daily news brief

Author

James Kratch
January 06, 2025

Good Monday morning. Washing your hands is a lot more complicated than you'd think. Have a great start to your week!

In Today’s Brief

  • New York: Congestion pricing

  • Ghana: Market fire

  • Trump: Sentencing decision

  • JetBlue: Delay penalty

  • NFL: Playoff matchups

... and more

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Top Tips

1) Not happening

President Joe Biden has officially scuttled the proposed Japanese takeover of U.S. Steel.

  • The news: Biden blocked Nippon Steel's proposed $15B acquisition, saying there is "credible evidence" it could endanger national security. Both the president and President-elect Trump had previously spoken out against the deal, but it fell to Biden to formally reject it after a government review was inconclusive.

  • The reaction: Both companies decried the decision, calling it unlawful and accusing Biden of catering to organized labor, which also opposed the deal. Nippon Steel had offered several concessions in order to win approval; it now plans to sue the federal government.

  • Big picture: U.S. Steel -- an iconic but diminished institution -- now faces an uncertain future. Nippon Steel's offer was double what domestic rival Cleveland Cliffs previously offered -- which is why rank-and-file steelworkers supported the deal -- and there are not many obvious merger partners. Plus the incoming Trump Administration has shown no indication it would reconsider this thwarted deal.

2) Red flag

The U.S. Surgeon General believes alcoholic beverages should carry cancer warning labels.

  • The news: Surgeon General Vivek Murthy said alcohol consumption is the third-leading preventable cause of cancer in the nation, but most people are unaware of the connection. He believes alcohol products should carry warning labels similar to tobacco products as a result.

  • Next steps: Any warning label program would have to be approved by Congress and signed into law by the president. It is unclear whether the incoming Trump Administration and Surgeon General nominee Janette Nesheiwat would support Murthy's proposal. 

  • Big picture: The every-five-years update of federal dietary guidelines is currently underway. That includes recommendations on "safe" alcohol consumption, which is a subject of intense debate. So this could be a move by Murthy to spark action (or a conversation) before his tenure ends.

3) Investigations continue

New information has come to light as officials probe New Year's Day incidents in Las Vegas and New Orleans.

  • Prior planning: The FBI said Shamsud-Din Jabbar made two trips to New Orleans before his Bourbon Street truck attack that killed 14. He used Meta glasses to record video of the French Quarter while on a bike. Jabbar also made pre-attack trips to Canada and Egypt, but it is unclear if those were related to the Texas man's plot.

  • Bomb analysis: Authorities walked back earlier reports that Jabbar used rare material to construct two improvised explosive devices that did not detonate. Preliminary tests suggested he used R-Salt, which has never been observed in a U.S. or European terror incident. But officials no longer believe that to be the case. The FBI believes Jabbar acted alone, but was inspired by ISIS.

  • Manifesto found: The Army veteran who died in a Tesla Cybertruck explosion outside Trump Hotel Las Vegas suffered from post-traumatic stress disorder. He reportedly left writings that criticized the federal government and appeared to acknowledge he purposely blew up the vehicle. Matthew Alan Livelsberger is believed to have died by suicide before the explosion; he reportedly wrote the incident was not intended to be a terrorist attack.

Quick Tips

U.S. News

  • New York City's national-first congestion pricing has begun after years of legal challenges. Drivers must pay an additional $9 toll to enter Manhattan south of 60th Street during peak hours; it is $2.25 during other hours (More)

  • The fate of Erik and Lyle Menendez remains up in the air. New Los Angeles County District Attorney Nathan Hochman said he is undecided about whether to reduce the infamous convicted killers' sentences after his predecessor recommended it (More)

  • President Biden awarded the Presidential Medal of Freedom to 19 individuals. Former Secretary of State Hillary Clinton, U2 frontman Bono and actors Michael J. Fox and Denzel Washington were among the recipients of the nation's highest civilian honor (More)

World News

  • A fire devastated one of the world's largest secondhand clothing markets in Ghana. Officials believe two-thirds of Accra's Kantamanto market was destroyed in the blaze, a massive economic loss; no deaths or injuries have been reported (More)

  • Venezuela is offering a $100K reward for the arrest of exiled presidential candidate Edmundo Gonzalez. The opposition leader fled to Spain last September after voting data indicated he defeated strongman Nicolas Maduro in the South American nation's contested election; he has said he will return before next week's inauguration (More)

  • Austrian Chancellor Karl Nehammer will resign after failing to form a centrist governing coalition without including the far-right Freedom Party, which won last year's elections. Austrian President Alexander Van der Bellen said he will now sit down with the Russia-friendly party (More | More)

Political News

  • President-elect Trump will not receive jail time in his New York hush money case. Judge Juan Merchan said he would follow through with sentencing on Jan. 10, but indicated Trump will receive an unconditional discharge; the president-elect can still appeal the sentence (More)

  • Speaker of the House Mike Johnson was re-elected on the first ballot after some maneuvering. Two Republican members changed their initial votes to get the Louisianan over the line; Kentucky Rep. Thomas Massie was the only dissenting GOP member (More)

  • President Biden is expected to make two final speeches before leaving office. He will speak on foreign policy after making his final foreign visit to Italy, followed by a farewell address to the nation (More)

Business & Markets

  • Major indexes closed higher on Friday. The Nasdaq and S&P 500 snapped five-day losing streaks (Dow +0.80%, Nasdaq +1.77%, S&P 500 +1.26%).

  • JetBlue Airways was penalized $2M for operating chronically delayed domestic flight routes. The airline will pay a $1M federal fine and give customers $1M in compensation; United Airlines will begin testing Starlink in-flight internet next month with plans to offer the service this spring (More | More)

  • Ford and General Motors reported their best annual domestic sales since 2019. GM remained the nation's top-selling automaker with a 4.3% YoY sales increase; Ford was third with a similar YoY jump as the industry works to return to pre-pandemic levels (More)

Entertainment & Sports

  • The NFL playoffs are set. The Detroit Lions defeated the Minnesota Vikings in the final game of the regular season to secure the top seed in the NFC; the two-time reigning Super Bowl champion Kansas City Chiefs are the AFC's top seed (More)

  • Nicki Minaj was accused of assault and battery in a lawsuit. The filing by a man claiming to be the pop star's former manager could reportedly lead to criminal charges in Michigan (More)

  • Heidi Klum will return as Project Runway's host, replacing Christian Siriano. The supermodel left the reality show in 2017; she won an Emmy Award for her work in 2013 (More)

Quick Hitters

  • Fun Stuff: If you need a pick-me-up, watch this adorable video of two penguins "holding hands" and running into the ocean together.

  • Take Note: A slew of new travel requirements, both domestic and international, will take effect this year. Here is a rundown of what you need to know before your next trip to the airport.

  • Go Deep: The third anniversary of Russia's invasion of Ukraine is fast approaching. The conflict could finally end in the coming months, but there is no clear road to a ceasefire.

  • New Idea: Scientists have uncovered evidence that suggests heart muscles may have regeneration capabilities. If so, the discovery could eventually revolutionize the treatment of heart failure.

  • Life Hack: A well-stocked pantry can make daily cooking easier and save money on groceries in the long run. But you need to have a plan and reflect on what works best for you before getting started.

A North Korean defector tells his story.

Looking Ahead …

British researchers have launched a study to determine whether dogs and humans can synch their neural patterns during interactions, similar to how parents communicate with infants.

Question of the Day

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Friday’s results:

Trivia: Which city has never hosted a Notre Dame-Penn State game?

The somewhat-surprising answer is Indianapolis. The Orange Bowl (in Miami) will be the 20th meeting between the schools and the third off-campus game. The other two: The 1976 Gator Bowl in Jacksonville and a 1928 game in Philadelphia.