Key headlines from global financial media overnight and this morning include:
1. US jobless claims declined, bringing a bumpy year for the labor market to a close. 2. The US and allies discuss strengthening security guarantees for Ukraine. 3. Google posts its best Wall Street performance since 2009, with strong AI momentum outpacing tech peers. 4. 'Big Short' investor Michael Burry states he is not shorting Tesla. 5. The 10-year US Treasury yield falls for the full year 2025 but climbs on the final trading day. 6. Gold and silver prices both retreat, yet are still on track for their largest annual gains in over 40 years.
US jobless claims declined, bringing a bumpy year for the labor market to a close. Although the number of unemployed individuals receiving benefits has receded from recent highs, there are few signs of improvement in the weak employment environment during the first year of Trump's return to the White House. Data released by the Labor Department on Wednesday showed that initial claims for state unemployment benefits unexpectedly fell by 16,000 to a seasonally adjusted 199,000 for the week ending December 27, the lowest level since late November. Economists polled by Reuters had forecast claims rising to 220,000. The report was released a day early due to the New Year's holiday. The US labor market has been nearly stagnant. Economists note that labor supply and demand have been impacted by the sharp policy shifts following Trump's assumption of a second presidential term starting in January, most notably his significant tariff hikes on imports and aggressive crackdown on immigration, which has constrained the supply of workers. The claims report indicated that the number of people receiving benefits after an initial week of aid, a proxy for hiring, decreased by 47,000 to a seasonally adjusted 1.866 million in the week ending December 20.
The US and allies discuss strengthening security guarantees for Ukraine. US Special Envoy Steve Witkoff stated that he held "productive calls" with European leaders regarding the next steps in Trump's push for a Russia-Ukraine ceasefire. In a post on X on Wednesday, Witkoff said he discussed "next steps to advance the European peace process" with Secretary of State Rubio and Trump's son-in-law, Jared Kushner. Witkoff said the discussions covered "strengthening security guarantees and developing effective de-escalation mechanisms to push for an end to the conflict and ensure it does not reignite."
Google posts its best Wall Street performance since 2009, with strong AI momentum outpacing tech peers. Google started 2025 on a weak note but ultimately delivered its best annual performance on Wall Street since 2009, a year when its stock price doubled following the financial crisis. Shares of Alphabet surged 65% for the full year, slightly exceeding the gain seen in 2021. The stock hit its annual low in April 2025 after US President Trump threatened massive tariffs on trade partners, but has since rallied over 100%. Among the eight technology companies with market capitalizations exceeding $1 trillion, Alphabet's annual gain was the most significant. Chipmakers Broadcom and Nvidia ranked second and third, with full-year gains of 49% and 39%, respectively.
'Big Short' investor Michael Burry states he is not shorting Tesla. Prominent investor Michael Burry, who previously called the electric vehicle maker "ridiculously overpriced" and in a "serious valuation bubble," stated on Wednesday that he is currently not shorting Tesla stock. The founder of Scion Asset Management posted on the social platform X in response to a user asking if he was shorting Tesla, writing, "I am not short." Burry, famous for predicting the US housing market crash that triggered the 2008 global financial crisis, clarified his stance after his earlier post describing Tesla as "ridiculously overpriced" and in a "serious valuation bubble."
The 10-year US Treasury yield falls for the full year 2025 but climbs on the final trading day. Influenced by Federal Reserve interest rate cuts and inflation that remained elevated but on a general downward trend, the 10-year US Treasury yield recorded a decline for the full year 2025, but moved higher against that trend on Wednesday, the final trading day. On the day, the 10-year yield rose more than 3 basis points to 4.163%; the 2-year yield also advanced, finishing up over 2 basis points at 3.475%.
Gold and silver prices both retreat, yet are still on track for their largest annual gains in over 40 years. European leaders held a conference call to discuss the situation in Ukraine after Russian President Vladimir Putin stated he would revise Moscow's negotiating stance, claiming a Ukrainian drone had targeted his residence. "Our work to ensure strong security guarantees continues," Dutch Prime Minister Schoof said on platform X on Tuesday. He stated that allies in the "voluntary coalition" for Kyiv would meet next week. German Chancellor Merz, Finnish President Stubb, Polish Prime Minister Tusk, and European Commission President von der Leyen also participated in the call.
