Regulation & Legal

Federal Reserve Vice Chair of Supervision Michelle Bowman is working to secure the banking system against AI-related risks, partnering with Visa and MasterCard to guard against potential cyberattacks. Bowman said the largest banks can use the technology and mitigate its risks, but smaller institutions, especially community banks, need closer scrutiny. She is working with service providers to ensure they test technology shared with smaller banks so it does not carry vulnerabilities that could harm end consumers. Separately, Richmond Fed President Tom Barkin said the supply shocks from tariffs and higher oil prices, layered on top of inflation that has stayed above the Fed's 2% target for more than five years, are not proving short-lived, which is why the Fed opted to hike rates last week. Barkin pointed to the possibility of more tariffs, the protracted conflict in the Middle East and the continuing AI buildout pressuring supply chains, and while he did not say how many more rate hikes might come, he left the door open to them.

ADVANC shares gained support from demand for the iPhone 18 that exceeded the supply available in the market, lifting handset sales and average revenue per user, or ARPU. Patipark Nawawat, senior director of fundamental equity analysis at Krungsri Securities, said iPhone 18 sales create a structural benefit on two revenue fronts: higher device sales in both volume and average selling price, and the gradual bundling of new service packages with handset sales, which naturally lifts ARPU. He also assessed that any product shortage would not significantly affect revenue, because it stems from demand exceeding inventory rather than a reduction in allocated stock, meaning delayed deliveries merely shift revenue recognition between months. On fundamentals, net profit is expected to grow 15% in 2026, while the Supreme Administrative Court's dismissal of the case brought by Digital Phone Company, or DPC, a subsidiary of ADVANC, against National Telecom, or NT, over 1.2 billion baht in equipment and telecommunications network fees, helps remove concerns and unlock legal risk. The broker recommends a buy with a target price of 430 baht per share and expects a dividend yield of about 5%. Kasikorn Securities gives a base price of 385.34 baht, while Asia Plus Securities gives the ICT sector an overweight rating and notes that two related cases remain, case numbers 918/2558 and 741/2559, with a combined value of 1.98 billion baht, now under consideration by the Supreme Administrative Court. If both cases are lost, the impact on EPS would be only 0.67 baht per share, and the dividend yield for 2026 to 2027 is expected at 5.0% to 5.1%, with a 2027 target price of 428 baht.

Binance purchased a $100 million equity stake in Circle on September 17, 2026, acquiring approximately 1,237,011 Class A shares at $80.84 per share in a private placement at a 5% discount to the prevailing market price, paired with a five-year commercial agreement that replaces two prior short-term deals. The shares carry a lock-up of up to two years prohibiting sale, transfer, pledge, or hedge, and the lock-up is tied to the duration of the commercial arrangement. Under the agreement, Circle pays Binance a monthly incentive fee structured as a percentage of USDC held in Binance's Modular Smart Contract Wallet, while Binance commits to actively promoting USDC on its platform; either party may terminate early under specified conditions. Circle co-founder and CEO Jeremy Allaire said the real asset Binance is buying is distribution reach into the fastest-growing crypto markets, while Binance co-CEO Richard Teng called the $100 million investment and five-year commitment a long-duration strategic bet. Circle's existing USDC supply sits at roughly $60 billion, and the deal is designed to close the gap with Tether's USDT in emerging markets ahead of the GENIUS Act enforcement cliff on January 18, 2027, which will require stablecoin issuers operating in the United States to maintain 1:1 reserves, submit to monthly attestations, and comply with federal oversight.

The U.S. auto safety regulator has closed its review of a 2022 Honda recall covering rear-view camera problems in 129,092 Ridgeline pickup trucks, concluding that further regulatory action was not warranted. The National Highway Traffic Safety Administration opened the review in 2024 and escalated it to a more detailed engineering investigation in February 2025 after reports that wiring harnesses had failed in some vehicles even after the original recall repair was performed. NHTSA said its examination did not substantiate concerns that the repaired harnesses would develop failures. Investigators at the agency's Vehicle Research and Test Center gathered information from vehicle owners, examined selected trucks and subjected the wiring harnesses to durability testing, finding no instances in which harness damage had caused a rear-view camera failure. The regulator added that the component was not expected to fail over a reasonable operating life, and that most complaints received during the investigation related to other rear-view camera or wiring-harness problems that could not be tied to the durability concern behind the engineering analysis.

Eledon Pharmaceuticals traded higher on Tuesday after updating long-term data from a mid-stage trial of its lead candidate tegoprubart and announcing that the FDA granted the drug Fast Track designation. Citing data from its Phase 2 BESTOW trial, the California-based biotech said the antibody therapy maintained a higher kidney function with a statistically significant effect based on the average estimated glomerular filtration rate, a measure of kidney graft function. The latest readout, presented at the International Congress of the Transplantation Society in Australia, set tegoprubart's eGFR advantage at approximately 13 mL/min/1.73 m² through 24 months, compared with an average eGFR of about 69 mL/min/1.73 m² in a 12-month analysis in November. On safety, the company said there were no rejections in the tegoprubart arm beyond six months post-transplant, compared with seven in the tacrolimus arm. Eledon added that it remains on track to begin its Phase 3 LEGACY trial for tegoprubart in kidney transplantation in Q4 2026.

President Trump announced that the United States, Denmark and Greenland have reached a security agreement barring US adversaries from making sensitive investments in Greenland without express written approval, a move that pulls the global rare earth supply race northward. According to reporting by CNBC, the broader provisions would prohibit sensitive investments by non-allied nations in Greenland's critical minerals and mining sectors, and the governments of Denmark and Greenland said they expect to sign the agreement this week during the UN General Assembly, though it still requires ratification by the Danish and Greenlandic parliaments. The global rare earth elements market was estimated at $3.95 billion in 2024 and is projected to reach $6.28 billion by 2030, an 8.6% compound annual growth rate from 2025 to 2030, according to Grand View Research, while Mordor Intelligence sizes the market at 208.02 kilotons in 2026 and expects 273.30 kilotons by 2031, a 5.61% compound annual growth rate. US-listed companies with Greenland exposure rallied sharply on Monday, with the largest percentage moves concentrated in the smallest names, though the full legal text has not been released and nothing announced so far grants any company a permit, an offtake or funding. Greenland Mines Ltd. announced it has applied to the Government of Greenland for a new license covering approximately 262 km² east of its existing Sarfartoq license, MEL 2020-32, which if granted would grow its Sarfartoq footprint from about 192 km² to about 454 km², and the company's ST1 deposit carries an S-K 1300 Mineral Resource Estimate of 6.9 million tons Indicated at 1.60% TREO and 5.3 million tons Inferred at 0.96% TREO, with a high-case pre-tax NPV of approximately $2.05 billion.

TD Cowen told clients on Tuesday that the recent selloff in auto stocks over fears of Chinese automakers entering the US market is "overdone," as President Xi Jinping arrives in Washington on Wednesday for three days of talks with President Trump. Senior analyst Itay Michaeli wrote that a shift in US import policy at the summit is "very unlikely," though he urged investors to prepare for that eventuality anyway, noting that most industry contacts share that view. A coalition led by the Alliance for Automotive Innovation, joined by the American Automotive Policy Council, dealer group NADA, and supplier association MEMA, sent a letter to Trump urging the administration to "keep the door firmly shut to Chinese automakers seeking to sell, import, or manufacture vehicles inside the US," crediting Trump's 100% tariffs on Chinese vehicles and a Commerce Department rule barring Chinese connected-car software with shielding the US from the surge seen in Europe, Australia, Southeast Asia, Mexico, and South America. TD Cowen laid out guardrails under which Chinese automakers could be forced in through minority-owned joint ventures with domestic players and probably barred from building full-size trucks, and Michaeli argued such structures "might even prove EPS accretive given sizable D3 EV losses," with Stellantis arguably having the most to gain given its lower North America EBIT starting point. The firm sees EV suppliers and charging networks like ChargePoint and EVgo as beneficiaries of faster US EV adoption, and parts makers with existing ties to Chinese OEMs, including BorgWarner and Aptiv, as "better positioned" than most, while the math is mixed for EV pure-plays Tesla, Rivian, and Lucid. The catch, per Michaeli, is that Big Three stock multiples could still suffer on the long-term risk that any initial restrictions eventually get lifted.

Intuitive Surgical received CE mark approval earlier this month for using its da Vinci SP single-port robotic system in transvaginal gynecologic procedures, a world-first indication for the SP platform that adds to its existing European approvals for a range of endoscopic and natural-orifice surgeries. The approval broadens the SP system's clinically supported use in complex anatomical spaces and deepens the company's position in minimally invasive, scarless surgery. The new indication is unlikely to shift near-term catalysts in a major way, as Intuitive Surgical continues to manage multiple Class II recalls, execute on its ambulatory surgery center push, and justify a rich earnings multiple after a sharp year-to-date share price pullback. Eleven fair value views from the Simply Wall St Community range from about US$324 to over US$630 per share, underscoring how differently investors frame the company's prospects.

Alkermes announced positive top-line data from a phase I proof-of-concept study of its investigational orexin 2 receptor agonist ALKS 7290 in adults with attention-deficit hyperactivity disorder. At day 14, median AISRS total scores fell by 14 points from baseline at the 20-mg dose and 19 points at the 50-mg dose, with improvements also seen on the CGI-S and across the AISRS inattentive and hyperactivity/impulsivity subscales. The treatment was generally well tolerated across all doses, with no serious adverse effects reported, and Alkermes said ALKS 7290 is the first orexin 2 receptor agonist to show clinically meaningful improvements in ADHD symptoms in adults. Enrollment is ongoing in a phase II study of ALKS 7290 in adults with ADHD, with data expected in 2027. Alkermes is also developing alixorexton for narcolepsy type 1 and type 2 in phase III Brilliance studies and for idiopathic hypersomnia in the phase II Vibrance-3 study, with top-line data expected by the end of 2026; the FDA granted alixorexton orphan drug designation for idiopathic hypersomnia in June 2026.

Johnson & Johnson announced positive top-line data from a pivotal phase III study evaluating Caplyta (lumateperone) for treating manic episodes, with or without mixed features, in adults with bipolar I disorder. In Study 451, the first of two pivotal phase III studies of Caplyta in bipolar I mania, patients treated with once-daily Caplyta (42 mg) achieved a 4.8-point greater reduction in Young Mania Rating Scale total score versus placebo at week three, with significant improvement seen as early as day three, the study's primary endpoint. The proportion of patients achieving at least a 50% reduction in YMRS total score was more than twice as high with Caplyta as with placebo, at 45.8% versus 20.9%, respectively, and the safety and tolerability profile was similar to Caplyta's established profile. Management noted that the second pivotal phase III study, Study 452, has been completed, with data analysis underway. Caplyta, an atypical antipsychotic added to J&J's neuroscience portfolio through the 2025 acquisition of Intra-Cellular Therapies, generated sales of $631 million in the first half of 2026 and is not presently approved for the treatment of manic episodes associated with bipolar I disorder; J&J believes it has the potential to deliver peak sales of $5 billion.

Union Pacific Corporation and Norfolk Southern Corporation said their proposed combination to create America's first transcontinental railroad gained momentum after the Surface Transportation Board unanimously denied merger opponents' requests to dismiss the companies' revised merger application. With those requests rejected, the board can continue its review of what the companies call the most comprehensive merger analysis ever submitted in support of a major rail transaction, and the railroads said the combined network would remove more than 2 million truckloads from taxpayer-funded highways. Separately, the International Association of Sheet Metal, Air, Rail and Transportation's Railroad Mechanical Department entered a jobs-for-life agreement with the railroads, giving the merger the support of a majority of unions representing Union Pacific and Norfolk Southern employees. Union Pacific CEO Jim Vena said the momentum behind the transaction continues to build, while Norfolk Southern President and CEO Mark George said the combination will create new opportunities for customers across merchandise, bulk and intermodal markets. The transaction remains subject to Surface Transportation Board review and approval and to continued board oversight after closing, with the companies expecting completion in the second half of 2027.

Johnson & Johnson received FDA approval for ICOTYDE, also known as icotrokinra, to treat moderate to severe plaque psoriasis in the United States. The therapy targets the IL-23 receptor and is in Phase III clinical trials for a potential psoriatic arthritis indication, extending the company's immunology pipeline beyond oncology and MedTech into chronic inflammatory skin and joint conditions. The approval fits Johnson & Johnson's strategy of leaning on next generation immunology drugs to offset pressure from STELARA's loss of exclusivity and ongoing litigation. Investors will be watching two markers: the timing and results of the Phase III psoriatic arthritis data readout, and how quickly Johnson & Johnson reports ICOTYDE uptake in psoriasis through segment disclosures or commentary. The company carries a US$650.6b market cap, giving it resources to fund long, data heavy late stage programs such as the psoriatic arthritis trials.

AIM ImmunoTech Inc. issued a stockholder letter from Chief Executive Officer Thomas Equels positioning its drug Ampligen as a potential complement to daraxonrasib following the U.S. Food and Drug Administration's recent approval of daraxonrasib for metastatic pancreatic cancer. The letter notes that a pivotal randomized study showed daraxonrasib achieved median overall survival of 13.2 months versus 6.7 months with standard chemotherapy, an improvement of 6.5 months, but that many patients on both treatments still experience disease progression and mortality. Ampligen, a TLR3 agonist designed to activate innate immunity and reshape the tumor microenvironment, has a different mechanism of action from daraxonrasib, which selectively inhibits RAS. In an analysis of patients with a blood neutrophil-to-lymphocyte ratio below 4.5 in a Dutch government-approved Named Patient Program, Ampligen as a monotherapy was linked to a median overall survival of 34.8 months versus 12.5 months in well-matched historical controls, an observed increase of 22.3 months. AIM also said its ongoing Phase 2 DURIPANC trial is evaluating Ampligen with AstraZeneca's durvalumab in patients whose pancreatic cancer was stable post-FOLFIRINOX, with topline results anticipated in Q1 2027 and a detailed overall survival analysis in Q3 2027.

Bitcoin held above $86,000 on Tuesday after a multi-session rally that analysts say marks the end of the token's cyclical crypto winter. The token jumped more than 5% on Friday and another 6% on Monday, breaking solidly above its 50-day moving average. Sean Farrell, head of digital assets, told Yahoo Finance the breakout is credible and that the crypto winter is over, though he cautioned the path higher may not be linear. Compass Point analyst Ed Engle wrote that crypto is in the early innings of a new bull market with few signs of overheating, while Nansen senior research analyst Nicolai Sondergaard attributed the move to a combination of renewed ETF demand and a large short squeeze. Altcoins also surged after the Securities and Exchange Commission granted a five-year exemption last week for trading in certain tokenized stocks, a move that followed the Senate's failure to advance the Clarity Act. The total cryptocurrency market capitalization stood at $2.94 trillion on Monday, about 30% below its record valuation in October, when bitcoin reached an all-time high of more than $125,000.

Kalshi filed with federal regulators on Tuesday to seek approval to offer leverage on event contracts, a practice already common on Wall Street for stocks and futures. The filing with the Commodity Futures Trading Commission, the federal regulator for event contracts, comes from Kalshi Klear, the company's internal clearing house. Kalshi already provides leverage on its perpetual futures contracts but has yet to receive the same approval for its prediction markets, where all event contracts on regulated U.S. exchanges are currently entirely collateralized. A Kalshi spokesperson told CNBC the company would avoid offering margin on its sports event contracts as well as its culture and mention markets, and said marginable contracts, if approved, would be accessible only to self-clearing members with direct relationships to Kalshi Klear that meet certain capital requirements. Kalshi also said it is seeking a system in which capital requirements to obtain leverage increase as event contracts near their expiry date, a change it says would make longer-dated prediction markets more attractive to institutional traders.