Market Beats | US Core Inflation Slows to the Weakest Annual Pace Since Early 2021; US Beef Prices Keep Climbing Despite Government Efforts to Ease Costs; Blackstone CEO Says AI Data Centers Are Not a Bubble; Netflix Emerges as Frontrunner in Warner Bros. Bidding War; US Mortgage Rates Edge Toward Yearly Lows; MetaX Shares Skyrocket 693% in Record Shanghai IPO Debut; JPMorgan and GoldenTree Provide $525 Million for Brooklyn Waterfront Project

—— US Core Inflation Slows to the Weakest Annual Pace Since Early 2021; US Beef Prices Keep Climbing Despite Government Efforts to Ease Costs; Blackstone CEO Says AI Data Centers Are Not a Bubble; Netflix Emerges as Frontrunner in Warner Bros. Bidding War; US Mortgage Rates Edge Toward Yearly Lows; MetaX Shares Skyrocket 693% in Record Shanghai IPO Debut; JPMorgan and GoldenTree Provide $525 Million for Brooklyn Waterfront Project

1. US Core Inflation Slows to the Weakest Annual Pace Since Early 2021

Underlying US inflation rose at the slowest annual rate since early 2021 in November, marking an unexpected improvement in a report clouded by the effects of the government shutdown.

The core Consumer Price Index — which excludes the more volatile food and energy components — increased 2.6% in November from a year earlier, the Bureau of Labor Statistics reported Thursday. The overall CPI rose 2.7% year over year.

The longest government shutdown on record prevented the BLS from collecting much of October’s price data. That hindered its ability to calculate reliable month-to-month changes and may have distorted the annual November figures as well, according to some economists. Despite these caveats, the report suggests inflationary pressures may be easing after months of being stuck in a narrow range.

According to the BLS, the core CPI rose just 0.2% over the two months ending in November, restrained by declines in hotel rates, recreation costs and apparel prices. Household furnishings and personal care products recorded increases.

It remains unclear whether this CPI report will shift Federal Reserve policymakers’ views. Officials remain split on the appropriate path for interest rates next year. The Fed cut rates for a third consecutive meeting last week to guard against a deeper weakening in the labor market.

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2. US Beef Prices Keep Climbing Despite Government Efforts to Ease Costs

Beef prices in the US continue to rise with no signs of cooling, even as the Trump administration works to curb costs by boosting imports and supporting domestic ranchers.

The average price for ground beef reached $6.781 per pound in November, up 2.1% from September and 15% from a year earlier, the Bureau of Labor Statistics reported Thursday. Steak prices climbed to $12.285 per pound, a slight increase from September.

Prices have repeatedly hit new highs amid a historically small US cattle herd and especially strong demand for ground beef, which remains one of the more affordable meat options. The surge in beef prices came even as the overall CPI unexpectedly eased — increasing 2.7% in November from the previous year, compared with a 3% rise two months earlier. October CPI data wasn’t released due to the government shutdown.

Runaway beef prices have become a key focus of the Trump administration. In November, the White House called for a price-fixing investigation into major meatpackers and removed tariffs on Brazilian beef. In October, the USDA rolled out measures to support US ranchers, including expanded grazing access.

Beef imports are expected to jump 15% this year, and the USDA this month raised its 2026 forecast after the administration lifted levies.

Darden Restaurants Inc. Chief Financial Officer Raj Vennam said on Thursday’s earnings call that “near-record beef costs have sustained longer than we anticipated” and will likely remain elevated into next quarter, with some relief expected afterward.

Vennam added that higher commodity costs — led by beef — have become a “significant headwind” for the company, whose restaurant brands include LongHorn Steakhouse and Yard House.

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3. Blackstone CEO Says AI Data Centers Are Not a Bubble

Blackstone Inc. Chief Executive Officer Steve Schwarzman dismissed concerns about a bubble forming around the data centers powering artificial intelligence, calling the business conservative.

In a CNBC interview Thursday, Schwarzman described Blackstone’s role as that of a straightforward service provider to healthy, stable companies. The firm builds data centers and signs long-term leases with creditworthy partners such as Nvidia Corp., he said.

Blackstone is among the world’s largest owners of data-center operators. The $1.2 trillion alternative asset manager holds major stakes in QTS — the biggest data-center landlord in North America — and Australian operator AirTrunk.

“This is not bubble-type work,” Schwarzman said. “This is extremely conservative.”

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4. Netflix Emerges as Frontrunner in Warner Bros. Bidding War

Traders are betting that what once looked like a potential bidding war for Warner Bros. Discovery Inc. is turning into a one-horse race, with Netflix Inc. winning out over Paramount Skydance Corp.

Shares of Warner Bros. have fallen back below the $27.75 a share offer in cash and stock that Netflix agreed to pay for the firm’s studios, streaming and HBO businesses. The move lower comes after Warner Bros. advised its shareholders to reject Paramount’s all-cash bid of $30 a share for the entire company, including its cable networks, like CNN and TNT.

The stock had traded as high as $30 last week as investors bid up shares in hopes that Netflix and Paramount would both ultimately end up raising their offers for the company. Since then, shares have dropped more than 7%, while Netflix stock is down 1.1% and Paramount shares have shed about 5.3%. Both offers raise antitrust concerns, meaning they each are likely to face lengthy reviews by regulators. Paramount has insisted that it stands a better chance of getting approved by regulators, though Warner Bros. says it believes Netflix and Paramount are on equal footing when it comes to any sort of review.

The value of Netflix’s offer is also contingent on where its own stock is trading. Under the current agreement, Warner Bros. shareholders will receive $23.25 in cash for every share they own, plus $4.50 in Netflix stock. The stock portion of the agreement is subject to a so-called “collar,” meaning shareholders could receive more or less Netflix stock, depending on where those shares are trading ahead of the deal’s closing.

Further complicating the math is the fact that the Netflix offer does not include Warner Bros.’s cable TV networks, while Paramount’s does. In a Netflix deal, that portion of the company would be spun off and Warner Bros. shareholders would receive shares of the new firm.

The value of those shares has become a hotly debated topic, with Paramount suggesting they are worth $1 a share, while analysts say they may be worth closer to $4.

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5. US Mortgage Rates Edge Toward Yearly Lows

U.S. mortgage rates edged slightly lower this week, closing out the year near their 2025 lows. However, the modest boost in purchasing power has yet to entice house hunters, who remain wary of a cooling job market and stubbornly high property prices.

According to data released by Freddie Mac on Thursday, the average interest rate on a 30-year fixed mortgage ticked down to 6.21%, a slight decrease from 6.22% last week. While borrowing costs are holding steady at their lowest levels of the year, the typical year-end rush to buy has failed to materialize. Industry experts suggest that while housing may become slightly more affordable in the coming year as price gains continue to decelerate, mortgage rates are unlikely to see significant further declines in the near term.

The hesitation among buyers is reflected in the latest market data. For the four-week period ending December 14, home-purchase contracts plummeted 5.8% compared to the same period last year. According to the real estate brokerage Redfin, this represents the sharpest contraction in sales activity since the beginning of the year. Buyers are currently facing a “triple threat” of challenges: home prices that continue to rise despite a slower pace, interest rates that refuse to dip below the 6% threshold, and a softening employment landscape.

This lack of demand is also having a chilling effect on the supply side. With fewer eager shoppers in the market, homeowners are increasingly reluctant to list their properties. New listings fell by 3.1% recently, marking the most significant retreat by sellers in more than two years.

“Mortgage rates remain the primary concern for today’s buyers,” noted Tracy Edwards, a Redfin agent based in Raleigh, North Carolina. Edwards emphasized that because monthly payments remain high by historical standards, buyers are becoming increasingly selective. “If a buyer is committing to a high monthly payment, they expect the house to be in near-perfect condition and the sale price to be fair.”

For sellers, this means the era of aggressive bidding wars may be cooling, requiring more realism in asking prices and a greater willingness to negotiate.

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6. MetaX Shares Skyrocket 693% in Record Shanghai IPO Debut

MetaX Integrated Circuits Shanghai Co. saw its shares surge nearly 700% during its first day of trading on Wednesday, marking the latest explosive debut for China’s domestic semiconductor industry. The rally follows a similar massive gain by peer Moore Threads Technology Co. earlier this month, signaling intense investor appetite for local AI hardware.

MetaX shares soared 693% in Shanghai after the company raised $585.8 million in its initial public offering. This performance represents the strongest debut for any IPO in the $500 million to $1 billion range in China over the last decade. The stock was 2,986 times oversubscribed by retail investors, reflecting even higher demand than the 2,750 times oversubscription seen for Moore Threads.

The company specializes in graphics processing units (GPUs) for artificial intelligence, a sector that has become a primary focus for Chinese investors. As US export controls block Nvidia Corp. from selling its most advanced chips to China, the market is betting on “national champions” like MetaX to fill the void. With its IPO priced at 104.66 yuan per share, the first-day jump propelled MetaX’s market capitalization to over 332 billion yuan, rivaling the 336 billion yuan valuation of Moore Threads.

Market analysts note that the massive first-day gains are partly driven by regulatory pricing caps. Chinese authorities often discourage richly priced IPOs to protect individual investors, which can lead to stocks being priced lower than what the market is willing to pay.

Despite the surge, MetaX’s price-to-sales ratio stands at 56.4, which remains significantly lower than the 127.4 average seen among peers like Cambricon Technologies Corp. and AMD.

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7. JPMorgan and GoldenTree Provide $525 Million for Brooklyn Waterfront Project

JPMorgan Chase & Co. and GoldenTree Asset Management have financed a $525 million construction loan for a major development along the Williamsburg waterfront in Brooklyn. The funding will support the second phase of Williamsburg Wharf, a project led by New York developer Naftali Group in partnership with Access Industries.

The 3.75-acre site at 80 Wharf Way will feature 363 luxury condominiums across two residential towers overlooking the East River. Commercial real estate firm Walker & Dunlop Inc. arranged the financing, noting that the deal capitalized on strong market liquidity and a significant shortage of high-quality luxury inventory in New York City.

The second phase of the development is slated for completion in 2028. Upon final completion, Williamsburg Wharf will transform the formerly industrial area into a premier destination featuring five luxury towers ranging from 22 to 36 stories.

The master plan also includes extensive retail, dining, and cultural spaces situated along a sprawling public esplanade.

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