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Monthly Review - December 2025

In brief

Markets
The corporate battle for Warner Bros Discovery.
Monetary policy
Divided US Fed cuts rates.
Technology
European Commission fines Elon Musk's X.

The markets

December Calendar

-0.1%

S&P 500

-0.9%

HSI

1.6%*

SET 50

0.9%*

TOPIX

2.3%

CSI 300

2.7%

STI

-0.5%

Nasdaq

0.5%**

PSEI

1.6%*

JCI

Source: Bloomberg 31.12.2025, returns in local currency
* 30.12.2025
** 29.12.2025

Top stories

Drama continues at Warner Brothers
Markets

Drama continues at Warner Brothers

Towards the end of last year, Warner Bros Discovery (WBD), know for productions such as the Harry Potter series, announced it was putting itself up for sale. In early December they revealed the planned sale of its movie studio and HBO streaming service to Netflix for $83 billion1. Paramount Skydance, owner of brands including MTV and CBS, then launched a $108 billion hostile takeover bid2. WBD's board urged shareholders to reject the Paramount offer, citing significant risks. They believe the Netflix offer involves a clearer funding structure and less regulatory risk, as well as superior value for shareholders. Paramount is owned by David Ellison, son of Oracle tech billionaire and President Trump supporter Larry Ellison.

All change at dividend Fed
Monetary policy

All change at dividend Fed

The Federal Reserve (Fed) voted 9–3 in favour of cutting rates by 25 basis points at its December meeting, the central bank's third cut of the year3. However, the split decision underscored uncertainty about the economic outlook, with inflation remaining sticky even as the labour market shows signs of softening. The Fed's “dot plot” continued to point to just one rate cut in 2026 and another in 2027. Fed Chair Jerome Powell will step down at the end of his second term in May 2026, with President Donald Trump expected to announce his successor early in the new year.

European Commission targets X
Technology

European Commission targets X

The European Commission has fined Elon Musk's social media platform X, formerly Twitter, €120 billion for multiple violations of the EU's Digital Services Act4. While the law came into force in 2022, this is the first enforcement action, which has angered the platform's billionaire owner and could complicate relations with the Trump administration. The Commission cited a lack of transparency around the platform's advertising and a “deceptive” blue tick verification system that automatically awards verified status to X premium subscribers. Other alleged breaches remain under investigation, including concerns about the algorithms used to promote and amplify content on the platform.

EU scraps 2035 combustion engine ban
Responsible investing

EU scraps 2035 combustion engine ban

Bowing to intense lobbying from carmakers, especially in Germany and Italy, the EU scrapped its landmark 2035 ban on combustion engine vehicles. It introduced new rules that make it easier for car manufacturers to achieve their 2030 carbon emission targets by averaging out their reductions between 2030 and 2032. The 2030 emissions reduction target for vans has also been reduced from 50% to 40%5. Environmental groups condemned the changes, while countries such as Sweden and Spain emphasised that the move sends the wrong message and creates uncertainty in the market, handing China an even greater lead in the EV race.

On the radar

Illustration of an orange radar

Despite unprecedented market shocks and tariff-related volatility, major benchmark indices hit a series of fresh all-time highs in 2025, with the AI spending boom sparking an investment frenzy. Will the AI hype keep growing in 2026, or will it deflate?

As a broad-based economic slowdown appears to be taking hold in the world's second-largest economy, what levers does Beijing have at its disposal to restore consumer and investor confidence in the new year?

The war in Ukraine rumbles on, with both sides incurring casualties. Despite ongoing military clashes, diplomatic efforts led by the US to broker a peace deal have fostered a cautious optimism. Can there be a lasting peace between Russia and Ukraine?

Source: AXA IM, as at 31 December 2025

The company information mentioned (if any) is for informational purposes only and should not be construed as investment advice, a recommendation or solicitation.

  • Source: The New York Times, as of 5 December, 2025
  • Source: BBC, as of 18 December, 2025
  • Source: CNBC, as of 10 December, 2025
  • Source: The Guardian, as of 5 December, 2025
  • Source: Financial Times, as of 16 December, 2025
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