Super Micro sinks 8% after Taiwan raids, China blacklists Japanese labs

Beijing blacklisted four Japanese defense research institutes and put dozens of firms, Terra Drone, Mitsui E&S, Mitsubishi Electric units, on a watch list requiring tighter licensing. The step tightens export controls on dual‑use goods, nudges stocks such as Mitsubishi Electric, and underscores China’s leverage over Japan’s defense buildup.

Taiwan authorities raided Super Micro’s local offices and linked firms, widening a probe into illegal exports of servers containing Nvidia’s advanced AI chips to China. The crackdown sent Super Micro’s stock down about 8%, spotlighting heightened regulatory risk for hardware makers caught in the U.S.-China tech tug‑of‑war.

The Wall Street Journal warns that bubbles are only clear in hindsight, especially as AI‑driven hype fuels a frothy market. Investors should focus on fundamentals and risk‑adjusted valuations rather than chasing momentum.

A pending antitrust bill would strip Visa and Mastercard of their ability to lock merchants into costly, exclusive pricing. If passed, the networks must bid for business, potentially slashing the $200 billion in annual merchant fees that currently fund higher consumer prices. The move could reshape payment‑card economics and boost competition.

The Bank for International Settlements’ 2026 Annual Report flags that the five biggest hyperscalers will pour over $1 trillion into AI‑related capex by 2026. It likens the spending spree to the dot‑com bubble, warning that over‑investment could erode financial stability and trigger a broader recession. Policymakers may need to tighten liquidity to curb the risk.

California’s one‑time 5% wealth tax on residents with over $1 billion in assets has cleared the signature threshold and is now certified for the Nov 3, 2026 ballot. If voters approve, the levy will fund Medi‑Cal, public education and food‑assistance programs, potentially adding tens of billions in revenue.

U.S. median asking rents fell 1.3% year‑over‑year in December, marking the third straight year of negative rent growth. With vacancy rates hitting a record 7.3%, the supply glut is softening shelter costs, a key driver of CPI. Lower rents could pull inflation down and influence Fed policy decisions.

Within weeks of taking the chair, Kevin Warsh announced five task forces to overhaul everything from the Fed’s communication strategy to its $6.7 trillion balance sheet. The groups will start from first principles, questioning data sources, inflation models and AI use, signaling a potential regime shift that could reshape monetary policy for years.

The high court ruled 5‑4 that President Trump cannot remove Fed Governor Lisa Cook without cause, reinforcing statutory limits on political interference. The decision halts the administration’s push to control the Federal Reserve and signals continued institutional independence.

Rocket Lab agreed to buy Iridium for $54 per share, valuing the satellite‑communications firm at about $8 billion. The merger merges Rocket Lab's launch and satellite‑building expertise with Iridium's global L‑band network, giving the combined company end‑to‑end control of a constellation and a new foothold in IoT, PNT and safety‑of‑life services. The deal creates a vertically‑integrated challenger to larger telecom players.

Big tech firms are courting TV screens, forcing legacy studios into massive mergers to stay relevant. Fox’s $22 billion purchase of Roku and the $111 billion Paramount‑Skydance‑Warner deal, backed by Oracle, rewire the platform‑content balance, aiming to lock down ad revenue and viewership before AI reshapes economics.

Comcast will spin off NBCUniversal and Sky in a tax‑free separation, giving shareholders shares in both new entities and retaining up to a 19.9% stake in NBCUniversal for a year. The split lets Comcast double‑down on broadband, wireless and tech, while NBCUniversal becomes a pure‑play media powerhouse with studios, networks and the Sky platform.

AI sales hit $25 billion in Q1 2026, surpassing the $21 billion needed to cover data‑center and chip depreciation. The narrow margin shows the AI spend binge is barely paying for itself, but suggests the boom may start to sustain the $725 billion capex wave across hyperscalers.