David Sacks Named AI, Crypto Czar

FINANCE
David Sacks Named AI, Crypto Czar

President-elect Donald Trump has named venture capitalist and longtime Elon Musk ally David Sacks as the White House’s first "AI & Crypto Czar." Announced on Truth Social, Trump highlighted Sacks’ role in shaping U.S. policies on artificial intelligence and cryptocurrency, calling them vital for maintaining American competitiveness.

Sacks, an early Trump supporter in Silicon Valley, co-founded PayPal with Musk and has invested heavily in AI and crypto startups through his firm, Craft Ventures. Known for hosting fundraisers for Trump and voicing support on his “All-In” podcast, Sacks raised over $12 million for Trump’s campaign in June.

Tech leaders and crypto executives, including Coinbase COO Emilie Choi, welcomed Sacks’ appointment, viewing it as a step toward clearer regulations and fostering innovation. The move aligns with Musk’s growing influence in Trump’s administration, including his role as co-leader of the Department of Government Efficiency. Musk’s significant financial backing has amplified his sway in shaping U.S. policy.

FINANCE
Judge Denies $5.6 Billion Fee

A Delaware judge denied Tesla CEO Elon Musk’s attempt to reinstate his $100 billion pay package while also rejecting a $5.6 billion fee request from the lawyers who challenged it. Instead, Chancellor Kathaleen McCormick awarded plaintiffs’ attorneys $345 million in cash or Tesla shares.

The firms—Bernstein Litowitz Berger & Grossman, Andrews & Springer, and Friedman Oster & Tejtel—successfully argued that Musk’s pay was excessive and should be rescinded. The judge praised their methodology but deemed the requested $5.6 billion “a windfall no matter the justification.”

Lawyers for Tesla had argued for $54.5 million. McCormick noted the extensive work done by plaintiffs' counsel, including nearly 20,000 hours of legal work and significant contingency risks. She highlighted their expertise in handling high-stakes stockholder cases, calling the fee reasonable for the scope of the work.

The ruling may face appeals, but plaintiffs’ counsel expressed satisfaction with the decision.

BONDS
U.S. Treasury Yields Steady as Investors Await Payroll Data

U.S. Treasury yields remained mostly unchanged Friday morning as investors awaited the release of key nonfarm payroll data. The 10-year Treasury yield inched up less than a basis point to 4.1857%, while the 2-year yield rose slightly more than two basis points to 4.1683%.

The Bureau of Labor Statistics is set to release November’s payroll report at 8:30 a.m. ET, with expectations of 214,000 job additions—a rebound from October’s dismal 12,000, the weakest growth since December 2020. This report is crucial for gauging labor market strength and shaping the Federal Reserve’s rate policy for its Dec. 17-18 meeting.

Earlier data painted a mixed economic picture. The ISM manufacturing PMI showed slower service sector expansion at 52.1, while ADP reported private payroll growth of just 146,000, missing estimates. Fed Chair Jerome Powell emphasized the need for caution, citing stronger-than-expected growth and persistent inflation pressures.

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