The House Judiciary Committee unveiled a sweeping "top-to-bottom" review of unnamed tech companies late Monday as reports surfaced of a dual effort from the DOJ and the FTC to tackle the perceived dominance and potential abuses of Big Tech. Shares yesterday plummeted in response: Facebook -7.5%, Alphabet -6.1%, Amazon -4.6% and Apple was down -1%, erasing more than $133bn in market cap combined. "The growth of monopoly power across our economy is one of the most pressing economic and political challenges we face today," said David Cicilline, who chairs the Antitrust Subcommittee, adding that "market power in digital markets presents a whole new set of dangers." (SA)
Mexican officials have arrived for talks in Washington to find a way to avoid crippling bilateral trade tariffs triggered by the President;s demands to curb illegal migration. Marcelo Ebrard, foreign minister, said the task of “convincing, conversing, persuading” lay ahead as he prepared to meet secretary of state Mike Pompeo tomorrow. (FT)
James Bullard, head of the St Louis Fed and a voting member of the committee that sets interest rates in the US, said a drop in the cost of borrowing might be “warranted soon”, marking the first time a Federal Reserve official has explicitly said a rate cut may be needed this year. Today’s opening remarks by Chair Jerome Powell at a policy conference in Chicago be very closely watched for any pushback against the rising consensus. (Bloomberg)
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.