Zuckerberg dumps fact-checkers, touts free speech

Good morning. Here's what happened overnight and what you need to know today.

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1.

Meta unfiltered: Meta will end its third-party fact-checking program in the US, replacing it with a user-driven "Community Notes" system, similar to Elon Musk’s X. CEO Mark Zuckerberg called the move a return to "free expression," citing "too many mistakes and too much censorship" in the existing system. The changes come as Meta strengthens ties with President-elect Donald Trump after a frosty relationship since Trump was banned from Facebook and Instagram following the US Capitol riot in January 2021. The company is also making moves towards conservative-friendly policies, naming Joel Kaplan, a prominent Republican adviser, to lead global policy, and on Monday, appointing UFC CEO Dana Frederick White, a Trump ally, to its board. “We’re going to get rid of fact-checkers and replace them with community notes, similar to X, starting in the US. It’s time to get back to our roots around free expression,” said Zuckerberg, wearing a USD900,000 watch in a video posted on the company’s website. “We’re going to work with President Trump to push back on governments around the world that are going after American companies and pushing to censor more.” (Meta)(Capital Brief)(NBC News)(NYT)

2.

In-person directive: JPMorgan Chase plans to mandate a five-day office attendance policy for all employees, ending hybrid work options for thousands of staff in favour of the attendance policy in place before the pandemic, Bloomberg reported citing unnamed sources. Expected to be announced in coming weeks, the decision could still change, the publication said. It follows an April 2023 mandate requiring managing directors to work in-office full-time. About 60% of staff, including traders and retail employees, already work on-site five days a week, Bloomberg said, adding the US’ largest bank declined to comment on the plans. CEO Jamie Dimon has consistently criticised remote work, arguing in favour of the benefits of in-person collaboration. The move mirrors Goldman Sachs' full-time office policy but contrasts with Citigroup’s three-day hybrid approach. (Bloomberg)

3.

Audit deal: Blackstone is acquiring a majority stake in US accounting firm Citrin Cooperman, its first deal in the accounting industry which according to the FT values the target at over USD2 billion ($3.20 billion) and marks a sharp rise in its valuation. The deal values Citrin Cooperman at 15 times earnings before interest, taxes, depreciation and amortisation (EBITDA), up from 11 times EBITDA in 2021 when New Mountain Capital acquired it for USD500 million, the FT reported citing two unnamed sources. Driven by acquisitions, Citrin Cooperman’s revenue has surged from USD350 million to about $850 million in three years, sources familiar with the figures told the paper, making it one of the top 20 largest firms in the US. The paper added Blackstone’s stake will be kept below 50% through smaller investors to address regulatory concerns about the independence of its audit business, which accounts for 20% of its revenue. (FT)(Blackstone)(Capital Brief)

4.

Data reads: US job openings surged to 8.1 million in November 2024, the highest since May 2023 and above the 7.7 million forecast by a Reuters poll, defying expectations of a labour market slowdown. But the Labor Department’s JOLTS report also showed hiring fell to 5.27 million from 5.39 million in October. The quits rate—a gauge of worker confidence—fell to 1.9% from 2.1% the previous month. Meanwhile, the US services sector PMI rose to 54.1 in December, surpassing the 53.5 consensus and indicating steady growth. Input costs, however, hit a two-year high, underscoring persistent inflation. The strong economic data unsettled Wall Street, as investors questioned the pace of future interest rate cuts by the Fed. “Today's data suggests that the economy is maintaining its strong momentum and that inflation continues to be sticky,” said ING chief international economist James Knightley. (US Bureau of Labor Statistics)(Reuters)(Capital Brief)

5.

Nvidia’s dip: Nvidia’s highly anticipated CES presentation failed to impress investors, causing its shares to drop as much as 6% on Tuesday to USD140.44 ($224.99), the largest intraday decline since October. CEO Jensen Huang unveiled new AI-driven products, including updated GeForce GPUs, the USD3,000 Project Digits desktop for AI developers and partnerships with Toyota, Uber and MediaTek, while outlining a vision for AI’s expansion across robotics, autonomous vehicles and gaming. Yet, the announcements of ambitious long-term goals to transform industries worth USD50 trillion, offered limited near-term growth prospects, disappointing investors. Meanwhile, Huang told Bloomberg he’s ready to meet US President-elect Donald Trump and offer his help to the coming administration, although he has not been invited to Mar-a-Lago in Florida yet, he said. (Bloomberg)(Capital Brief)

6.

Trump deals: Donald Trump announced a USD20 billion ($32.08 billion) commitment from Dubai billionaire Hussain Sajwani to build US data centres, calling it crucial for advancing artificial intelligence and technology. Speaking at Mar-a-Lago, Florida, Trump outlined plans for the deal’s first phase across states including Texas, Arizona and Ohio, promising to fast-track regulatory approvals. Sajwani, chairman of Damac Group and Trump’s long-time business partner, said the investment could grow if market conditions allow. Damac, known for luxury real estate and its Trump-branded Dubai golf course, is expanding globally, with its Edgnex unit previously earmarking USD3 billion for data centre investments in Southeast Asia over the next three to five years. The announcement follows a USD100 billion AI-focused pledge from Masayoshi Son’s SoftBank, and comes amid tightening US restrictions on AI chip exports to China and surging infrastructure spending by companies like Microsoft, which plans USD80 billion in AI capacity upgrades this year. (Reuters)(Bloomberg)

7.

Greenland interest: President-elect Donald Trump has renewed his interest in acquiring Greenland and regaining control of the Panama Canal, describing both as essential to US national security and refusing to rule out military or economic measures to secure these goals. “We need them for economic security,” he said. Greenland, an autonomous Danish territory, has previously rebuffed similar overtures, with Prime Minister Mette Frederiksen saying “Greenland belongs to the Greenlanders,” when asked to comment about Donald Trump Jr unofficial visit. Politicians in Denmark criticised the US approach, labelling it disrespectful. Trump also proposed tariffs on Denmark for resisting a Greenland sale, suggested renaming the Gulf of Mexico as the “Gulf of America,” and called for NATO allies to raise defence spending to 5% of GDP. (Reuters)(AP)(BBC)

8.

Apple, Intelligence? Apple said it will move to inform iPhone users when notification summaries are AI-generated, following criticism about false alerts produced by its software. In December, the BBC formally complained that iPhones were displaying inaccurate notifications under its logo, including a false claim that alleged murderer Luigi Mangione had shot himself—a false statement not reported by the BBC. Other fabricated notifications from Apple’s “Apple Intelligence” claimed Rafael Nadal had come out as gay, that Israeli Prime Minister Benjamin Netanyahu had been arrested, and that comedian Nikki Glaser had been killed at the Golden Globes. Critics warn such errors undermine trust in journalism, with outlets like the New York Times also misrepresented. Organisations including Reporters Without Borders and the National Union of Journalists have called for the feature’s removal, citing misinformation risks. Apple said an update will clarify when summaries are AI-generated while noting users can disable the feature. (BBC)(The Guardian)