Broadcom Eyes Intel Chip Division

TECH
Broadcom Eyes Intel Chip Division

Broadcom Inc. has reportedly held informal discussions with its advisers about a potential bid for Intel Corp.’s chip-design and marketing business, according to sources cited by the Wall Street Journal. No formal offer has been made, and Broadcom may ultimately decide against pursuing a deal.

Meanwhile, Bloomberg News reported that Taiwan Semiconductor Manufacturing Co. (TSMC) is in early-stage discussions about acquiring a controlling stake in Intel’s chip fabrication facilities. These talks were reportedly initiated at the request of Trump administration officials seeking to strengthen American semiconductor manufacturing and maintain U.S. dominance in critical technology sectors.

Broadcom and TSMC are not collaborating, and discussions remain preliminary, with no concrete proposals on the table. The developments highlight growing interest from major players in reshaping Intel’s future, amid shifting geopolitical and economic factors influencing the global semiconductor industry.

FINANCE
Ruble Surges on Trump-Putin Talks

The ruble has surged 20% since the start of 2025, driven by expectations that President Donald Trump will broker a deal to end Russia’s war in Ukraine. Last week, the currency jumped 3.7% after Trump’s call with Russian President Vladimir Putin, during which he announced immediate negotiations. The rally continued after Russia released detained American teacher Marc Fogel, signaling possible diplomatic breakthroughs.

Investors anticipate that an end to the war could lead to the lifting of sanctions, boosting Russia’s economy by restoring access to global markets and increasing oil and gas exports. Meanwhile, European leaders worry that Trump’s negotiations exclude them, with Ukrainian President Volodymyr Zelensky expressing concerns about US priorities. Zelensky also warned that a weakened NATO could embolden Putin to escalate tensions with the alliance. Trump has dispatched security officials to Saudi Arabia for talks with Russian representatives, reinforcing expectations of a shift in US-Russia relations.

ECONOMY
Japan’s GDP Growth Beats Expectations

Japan’s economy outperformed expectations in the fourth quarter of 2024, with GDP rising 0.7% quarter-on-quarter, exceeding the 0.3% forecast by economists. On an annualized basis, growth reached 2.8%, well above the 1% predicted by Reuters. However, despite this strong quarter, full-year GDP growth slowed sharply to just 0.1%, down from 1.5% in 2023.

The expansion was largely driven by a surge in exports, while domestic demand remained weak. Capital expenditure increased 0.5% quarter-on-quarter but fell short of the anticipated 1% rise. Japan’s central bank recently raised interest rates to 0.5%—the highest level since 2008—potentially signaling a shift towards monetary tightening.

Despite positive headline numbers, economists warned against over-optimism. Moody’s Analytics noted that revisions to historical data masked underlying economic weaknesses. Citi economists predicted continued weak consumer spending into early 2025, citing declining real wages and inflation pressures from a weakened yen. Following the GDP release, Japan’s Nikkei 225 fell 0.29%, while the yen strengthened slightly.

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