Can Hollywood bounce back?

Key takeaways

Scott Bessent's confirmation as Treasury Secretary may lead to tougher sanctions on Russia and renewed tax cuts.
US banks had an impressive earnings season, largely driven by trading profits due to market volatility post-election.
Hollywood faces critical challenges, including wildfires and a lack of affordable housing, which may hinder the industry's recovery.
The space race heats up as Blue Origin successfully launches its New Glenn rocket, challenging SpaceX's market dominance.

Summary

Trump's Treasury Pick and Trade Policies

Sonia Hudson discusses President-elect Donald Trump's nominee for Treasury Secretary, Scott Bessent. During his Senate confirmation hearing, Bessent emphasized the need for tougher sanctions on Russian oil producers and highlighted the importance of addressing unfair trade practices. He mentioned that the Treasury Department plays a critical role in ensuring national security, advocating for secure supply chains and a strong international trading system. Bessent's plans also include renewing tax cuts from the previous Trump administration.

Wall Street's Stellar Earnings

Stephen Gandel, the Financial Times' US Banking Correspondent, joins to discuss the recent quarterly earnings of major US banks, which reported higher profits thanks to volatility in the markets attributed to the election. Banks such as JP Morgan and Bank of America saw significant increases in profits, driven by trading activities rather than traditional lending. Gandel noted that the market's reactions to potential policy changes under the Trump administration fueled this trading surge, although concerns remain regarding how new tariffs could affect the economy.

The Challenges Facing Hollywood

The podcast shifts focus to Hollywood's ongoing struggles, compounded by the devastating wildfires in California. FT's LA Bureau Chief, Chris Grimes, outlines how the industry has been reeling from COVID-related shutdowns and a burst streaming bubble, resulting in a declining market share. The recent six-month-long writers' strike exacerbated these challenges. Grimes highlights the potential long-term impact of the wildfires, which may deter talent and further crunch an already tight housing market in Los Angeles, emphasizing the need for more affordable housing and increased tax incentives for filmmakers to revitalize the industry.

In the concluding segment, the podcast touches on the latest developments in the ongoing competition between space billionaires. Jeff Bezos' Blue Origin celebrated its first successful launch of the New Glenn rocket, aiming to compete with Elon Musk's SpaceX, which led the market with over half of all global launches last year. This competitive landscape underscores the significant advancements and ambitions driving the future of space exploration.

Show notes

Donald Trump’s Treasury pick Scott Bessent wants to increase sanctions on Russian oil producers, and the FT’s Stephen Gandel unpacks a bumper earnings season from Wall Street’s banks. British companies are buying back their shares at a faster rate than even US groups, and the LA fires are worsening the challenges facing Hollywood.

Mentioned in this podcast:

Donald Trump’s Treasury pick stresses need for tougher sanctions on Russian oil

Donald Trump’s policy pledges unleashing ‘animal spirits’, Wall Street bankers say

UK companies outpace US businesses in share buybacks

Fires prompt soul-searching at Hollywood’s dream factories

The FT News Briefing is produced by Niamh Rowe, Fiona Symon, Sonja Hutson, Kasia Broussalian, Lulu Smyth, and Marc Filippino. Additional help from Breen Turner, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Joseph Salcedo. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

Read a transcript of this episode on FT.com

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