Global markets and corporate developments offered a mixed picture on Wednesday as investors balanced resilient Asian equities against political tensions in Washington and mounting corporate upheaval across technology and media sectors.
A rally in Asia came despite soft US consumer data and artificial-intelligence concerns on Wall Street, while Elon Musk’s artificial-intelligence startup lost key founders, lawmakers prepared a tariff vote, and a high-stakes Hollywood takeover battle intensified.
Asian markets extend gains despite weak US data
Asia-Pacific markets traded mostly higher, continuing their rally even as US investors reacted nervously to weak economic indicators and AI-related risks.
The US December retail sales report showed consumer spending was flat, missing economists’ expectations for a 0.4% monthly increase.
Still, regional markets remained resilient.
Australia’s S&P/ASX 200 rose more than 1.6%, South Korea’s Kospi gained for a third day, and Hong Kong’s Hang Seng Index edged higher.
Mainland China’s CSI 300 slipped slightly, while Japan’s markets were closed for a public holiday.
India’s Nifty 50 gained by 0.08%.
Chinese inflation data underscored ongoing economic challenges.
The country’s consumer price index rose only 0.2% year over year in January, below the 0.4% forecast in a Reuters poll and reinforcing signs of lingering deflationary pressure.
Overnight in the US, the S&P 500 fell 0.33%, and the Nasdaq Composite declined 0.59% amid AI concerns, though the Dow Jones Industrial Average rose 0.1% to a record close of 50,188.14 after recently surpassing the 50,000 milestone.
xAI loses co-founders amid regulatory scrutiny
Elon Musk’s artificial-intelligence venture xAI is facing leadership turnover after two co-founders departed within days of each other.
Influential researcher Jimmy Ba announced his exit, writing he was “Grateful to have helped cofound at the start.” His departure followed co-founder Tony Wu’s own announcement a day earlier.
Ba, a University of Toronto professor credited with research influencing the company’s Grok version 4 models, joins several other founders who have already stepped away from the company.
The exits come after xAI merged with Musk’s aerospace company SpaceX earlier this month.
The combined entity, valued at $1 trillion for SpaceX and $250 billion for xAI, is reportedly preparing for a public listing.
The company also faces regulatory probes in Europe, Asia, and the United States following allegations that its Grok AI chatbot enabled the mass creation of non-consensual explicit images.
Musk launched xAI in 2023 with the stated aim of “understand the true nature of the universe.”
US lawmakers weigh rebuke of Trump tariffs
In Washington, House lawmakers could vote as soon as Wednesday on resolutions challenging President Donald Trump’s tariff policies, a move shaped by election-year concerns over rising living costs.
Speaker Mike Johnson attempted to block the vote through procedural measures, but Democrats and three Republicans opposed the delay.
Republican Don Bacon wrote, “Congress needs to be able to debate on tariffs,” adding, “Tariffs have been a ‘net negative’ for the economy and are a significant tax that American consumers, manufacturers, and farmers are paying.”
Democrats have highlighted tariffs as a driver of inflation.
Democratic Representative Don Beyer said, “It is heartening that a handful of Republicans finally stood up to Trump to put a stop to this madness, and I hope that more of our colleagues will join them as we move on to consider measures to terminate tariffs on Canada and other key allies and trading partners.”
Even if passed, the measures would likely be symbolic because the president could veto them.
Activist investor pressures Warner over Netflix deal
Corporate drama intensified in media and entertainment as activist investor Ancora Holdings built a roughly $200 million stake in Warner Bros. Discovery and prepared to oppose its agreement to sell studios and HBO Max to Netflix, reported WSJ.
Netflix has signed a $72 billion deal, while Paramount Skydance has made a rival nearly $78 billion bid for the entire company.
Paramount has also agreed to cover Warner’s $2.8 billion breakup fee and added a “ticking fee” for shareholders if the transaction is delayed.
Ancora argues Warner failed to adequately engage with Paramount and is considering a proxy fight if the board does not pursue what it views as a better deal.
Warner maintains the Netflix agreement offers superior value and a clearer regulatory path, but investors remain divided ahead of a shareholder vote expected next month.
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