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In today’s big story, President-elect Donald Trump is nominating the people who will play a key role in his administration and impact the business world.
What’s on deck:
But first, the nominations are rolling in.
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The big story
Trump’s new team
President-elect Donald Trump is quickly fleshing out his cabinet, giving a sense of what his second administration will look like.
Trump’s slew of picks announced in recent days share a common theme: loyalty. (You can find the running list of Trump administration staffers here)
With Republicans maintaining control of the House and winning the Senate, the president-elect will enter the White House this January with incredible power to shape the country to his vision.
Let’s break down some of Trump’s recent appointments and the impact they could have on the business world:
US Attorney General — Matt Gaetz: A surprising pick, to say the least, the representative from Florida caused havoc within his own party when he led the push to oust Kevin McCarthy from the speakership last year.
Gaetz was also the subject of sex-trafficking allegations that led to an investigation by the very agency he’s being nominated to lead. (The Department of Justice declined to pursue charges, but he’d been facing a probe from the House Ethics Committee.) House Speaker Mike Johnson told reporters on Wednesday that Gaetz had resigned from Congress.
He’s also clashed with the tech industry, suggesting Americans have an “obligation to use” their Second Amendment right when it comes to Silicon Valley companies censoring conservatives. Gaetz’s appointment requires confirmation from the Senate, which is far from a shoo-in.
Secretary of State — Marco Rubio: The Florida senator is an outspoken critic of China and a supporter of Taiwan. In fact, China sanctioned him twice, and his ability to travel to the country is somewhat in question.
The appointment adds another wrinkle to the heightening tension between the US and China. Trump has said he wants aggressive tariffs against Chinese imports, and Rubio has raised the alarm on what he views as China’s plan to harm the US economy.
Secretary of Defense — Pete Hegseth: The Army veteran and Fox News host has been outspoken about the US involvement in geopolitical conflicts. Hegseth is among the growing number of Republicans questioning the US support of Ukraine. He also said he doubted Russia would invade Poland if it successfully took over Ukraine.
When it comes to Israel, Hegseth has been a staunch supporter. He’s also pushed back against calls for a cease-fire and criticized pro-Palestinian protesters.
Hegseth’s takes aren’t limited to international affairs. He’s been critical of women serving in combat roles and diversity and equity policies in the US military.
Treasury secretary — TBD: Trump’s pick for his top economic advisor is being closely watched considering the key role the economy played in the election. The two front runners appear to be Scott Bessent, a hedge fund executive, and Howard Lutnick, the co-chair of Trump’s transition team and the CEO of Cantor Fitzgerald.
Bessent was initially viewed as the favorite, but Lutnick is reportedly making a last-ditch effort to be considered for the job.
News brief
Top headlines
3 things in markets
- Loving the leaderboard: Elon Musk wants to gamify “dumb” government spending. Donald Trump tapped Musk and Vivek Ramaswamy to co-lead the Department of Government Efficiency, a commission aimed at slimming government waste. Musk has teased a public leaderboard to track government spending, which, if implemented, could keep the public engaged. BI took a look at what the US actually spends money on.
- Inflation stays in line with expectations. October’s consumer price index rose 2.6% compared to the same time last year, representing a slight uptick from September’s 2.4% report. Despite inflation heating up, the probability of the Fed making a 25-basis-point cut next month increased to about 80% after the report’s release.
- Polymarket’s CEO was the subject of an FBI raid. Shayne Coplan, the 26-year-old boss of the betting market platform that successfully predicted Trump’s win, reportedly had his phone and electronic devices confiscated by federal agents Wednesday morning. Bloomberg reported the raid was tied to an investigation into the company accepting trades from users in the US, which is not permitted. A Polymarket spokesperson said it was an act of “political retribution” by the Biden administration.
3 things in tech
- Inside Forward’s failed attempt to revolutionize the doctor’s office. The healthcare startup Forward went all-in on its AI doc-in-a-box: “If Elon has the self-driving car, well, this is the autonomous doctor’s office,” its CEO said in 2023. But after raising $650 million in funding, it’s going dark.
- What some Tesla employees think about Musk’s new government job. Some are celebrating stock gains, with the company’s share price soaring nearly 33% year to date, while others worry Musk will lose focus. “There’s this feeling that no one fully knows where anyone else stands,” one manager told BI.
- A new stage in the US-China tech cold war. The focus of the AI race is moving from chip dominance to rare earths, the raw materials they’re made of. Right now, China has the upper hand; here’s how it’s tried to outmaneuver the US.
3 things in business
- Hollywood’s leaving. The film industry is ditching Los Angeles for up-and-coming entertainment hubs like Atlanta and smaller cities alike. Some have been preparing for an LA exodus for years, but the pandemic ushering in remote work helped provide the final push.
- Too many videos, not enough mentors. Nobody knows how to do their jobs anymore because their companies aren’t teaching them. Training is an easy place for companies to cut costs, but it comes back to hurt them in the long run. Those who do invest often put their money toward the wrong fixes.
- Exclusive: Amazon’s chatbot Q enters enemy territory. Internal documents obtained by BI show the cloud giant is looking to launch a Q add-in for a rival suite: Microsoft Office 365. Amazon hopes the integration could expand Q’s user base by piggybacking on Office’s popularity.
What’s happening today
The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Grace Lett, editor, in Chicago. Ella Hopkins, associate editor, in London. Hallam Bullock, senior editor, in London. Amanda Yen, fellow, in New York. Milan Sehmbi, fellow, in London.
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