Trump-Backed Funding Bill Fails

POLITICS
Trump-Backed Funding Bill Fails

A Trump-backed House Republican bill to fund the government for three months and suspend the debt ceiling for two years failed Thursday night as dozens of GOP lawmakers rejected the proposal. Without an agreement, a partial federal shutdown is set to begin late Friday.

The bill, which included a $110 billion extension for disaster and farm aid—a key Democratic demand—faced strong resistance from within the Republican Party. Thirty-eight Republicans voted against the measure, joining nearly all Democrats except two who supported it and one who voted present.

The suspension of the debt ceiling for two years was a surprising last-minute addition, as such decisions typically involve months of negotiation. President-elect Donald Trump and ally Elon Musk had earlier derailed another funding proposal with sharp criticisms, leaving Republicans scrambling for an alternative.

House Speaker Mike Johnson, R-La., now faces uncertainty over the next steps as intra-party divisions grow. Trump, meanwhile, has proposed permanently abolishing the debt ceiling to avoid future battles, emphasizing he wants to avoid facing debt-limit votes early in his presidency.

With a slim Republican majority, bipartisan support remains crucial for major legislation, further complicating efforts to avert a shutdown. The bill’s failure underscores the deep divisions within Congress.

TECH
AI Growth Booms, Startups Miss Out

Southeast Asia is emerging as a hub for AI investments, with global leaders like Nvidia and Microsoft pouring billions into cloud services and data centers. Yet, the region’s homegrown AI startups are struggling to tap into this $60 billion opportunity.

Despite having over 2,000 AI startups, the region faces barriers such as fragmented markets, limited venture funding, and investor skepticism about scalability. In 2024, Southeast Asia’s AI startups raised only $1.7 billion, a small fraction of the $20 billion invested across the Asia-Pacific, according to Preqin.

Countries like Singapore are fostering AI growth through national frameworks and funding initiatives, but broader regional collaboration is lacking. Experts like Kelvin Lee from Alta argue that diverse national agendas—ranging from high-tech innovation to basic infrastructure development—make it hard to achieve unified progress.

However, potential exists in early-stage AI value chains like big data collection. Companies like Singapore-based Patsnap are leading by building vast datasets that underpin AI models used globally by firms like NASA and Tesla.

While challenges persist, efforts to connect startups with corporations and improve ecosystems offer hope. For Southeast Asia to catch the AI wave, governments, investors, and industry players must align their strategies for sustainable growth.

FINANCE
Nike CEO Prioritizes Long-Term Growth

Nike’s new CEO, Elliott Hill, has pledged to drive long-term growth by refocusing on sports marketing and strengthening retail partnerships. In his first earnings call, Hill announced plans to eliminate online discounts and shift inventory, which will likely lead to reduced orders and a short-term liquidation of excess stock to make room for new products.

Hill acknowledged these actions may hurt near-term results, but emphasized a long-term strategy to stabilize the company’s performance. CFO Matt Friend projected revenue in the current quarter to drop by low double digits, deeper than the 7.7% decline in the prior quarter.

Despite these challenges, Nike’s latest earnings report exceeded expectations in revenue, profit, and gross margin, indicating some stabilization. Investors await further details on Hill’s strategy, which includes leadership changes and product innovation. While Nike faces waning demand for lifestyle products, stronger wholesale and apparel revenues signal potential for recovery.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.