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(Reuters) – U.S. search engine startup Perplexity AI submitted a bid on Saturday to TikTok’s Chinese parent ByteDance for Perplexity to merge with TikTok U.S., a source familiar with the company’s plans told Reuters.

TikTok faces a U.S. ban starting on Sunday if it does not cut ties with ByteDance, although President-elect Donald Trump said on Saturday he would likely give the short-video social-media platform a 90-day reprieve on Monday.

CNBC first reported the offer.

Perplexity would merge with TikTok U.S. and create a new entity by combining the merged company with other partners, the person said.

The new structure proposed by Perplexity would allow for most of ByteDance’s existing investors to retain their equity stakes and would bring more video to Perplexity, the source said, requesting anonymity because the matter is confidential.

TikTok did not immediately respond to requests for comment.

Perplexity AI believes its bid may succeed since the proposal is a merger rather than a sale, the person said.

Perplexity AI’s search tools enable users to get fast answers to questions, with sources and citations. It is powered by large language models that can sum up and generate information, from OpenAI to Meta Platforms (NASDAQ:META)’ open-source model Llama.

TikTok, which has captivated nearly half of all Americans, powered small businesses and shaped online culture, said on Friday it will go dark in the U.S. on Sunday unless President Joe Biden’s administration provides assurances to companies such as Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOGL) that they will not face enforcement actions when a ban takes effect.

(This story has been corrected to remove the reference to New Capital Partners (WA:CPAP), which is not involved in the offer, from the source’s statement in paragraph 4)

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(Reuters) – U.S. President-elect Donald Trump on Saturday said he would “most likely” give TikTok a 90-day reprieve from a potential ban in the United States after he takes office on Monday.

“The 90-day extension is something that will be most likely done, because it’s appropriate,” he told NBC in an interview. “If I decide to do that, I’ll probably announce it on Monday.”

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By Dan Levine and Mike Spector

(Reuters) – Robert F. Kennedy Jr. played an instrumental role in organizing mass litigation against drugmaker Merck (NS:PROR) over its Gardasil vaccine, a strategy that faces its first test in a Los Angeles court next week, according to two attorneys close to the case and court filings.

Kennedy, who ended his own presidential campaign last year to endorse Donald Trump, awaits confirmation as U.S. Health and Human Services (HHS) Secretary. The role would give him direct authority over a special vaccine court that compensates injuries.     

Details of the Gardasil litigation show how Kennedy took action beyond sowing doubt about the safety and efficacy of vaccines in the court of public opinion and helped build a case against the pharmaceutical industry before judges and juries.

Kennedy, a longtime plaintiffs’ lawyer, became involved in the Gardasil litigation in 2018 in collaboration with Robert Krakow, an attorney specializing in vaccine injury cases, Krakow said.

Under U.S. law, such cases must first be filed with the special vaccine court run by HHS that aims to address claims quickly, but caps compensation and limits vaccine makers’ liability.

    That process had discouraged top lawyers who represent hundreds or thousands of plaintiffs in liability lawsuits with the potential to reap millions, and sometimes billions, of dollars in company payouts.

    Krakow saw grounds to sue Merck directly over its human papillomavirus shot Gardasil after handling some injury claims in vaccine court. He believed there was also evidence that Merck had fraudulently advertised Gardasil as safe, overstating its benefits while concealing knowledge of dangerous side effects.

    Kennedy championed that strategy among a network of influential lawyers who had taken on major corporations over other products, Krakow said.

    “He was a galvanizing force,” Krakow told Reuters. Kennedy’s presence in Gardasil strategy meetings helped pique the interest of lawyers whom Krakow would have been unable to recruit on his own, he said.

Kennedy did not respond to requests for comment on the Gardasil litigation and has not indicated whether he would change vaccine compensation as health secretary. It is not clear whether Kennedy would earn any fees off the Gardasil cases, as would be customary.

    Merck did not comment on Kennedy’s role in the litigation, which it said had no merit.

    Gardasil is recommended as a routine immunization for 11 and 12-year-olds by the U.S. Centers for Disease Control and Prevention to prevent cervical and other cancers caused by the virus. Nearly 160 million doses were distributed in the U.S. through the end of 2022, federal data show.

“An overwhelming body of scientific evidence, including more than 20 years of research and development, continues to support the safety and efficacy profiles of our HPV vaccines,” Merck said in a statement to Reuters. “We remain committed to vigorously defending against these claims in the upcoming trial.”

‘BOBBY TAUGHT US’

Michael Baum is one of the high-profile lawyers persuaded by Kennedy to pursue Gardasil cases. The two became friends as neighbors in the wealthy Malibu community outside Los Angeles, and were already collaborating on a lawsuit over Monsanto (NYSE:MON)’s weed killer Roundup, Baum said. The case eventually won a $289 million verdict that was later reduced.

    Baum was initially unaware that vaccine claims could be pursued outside the government-run compensation system through traditional lawsuits.

    “It’s an expensive, daunting thing for lawyers and experts to go up against a large vaccine manufacturer,” Baum told Reuters. “Bobby taught us.”    

    The first trial is set to begin on Jan. 21 in a state court in Los Angeles, a day after Trump’s inauguration. Jennifer Robi, 30, was vaccinated with Gardasil as a teenager and claims the shot led to impaired mobility that confined her to a wheelchair.

    The vaccine court denied Robi’s compensation claim in 2015 because the alleged injury had not been shown to be linked to Gardasil.

Robi sued Merck in 2016 and included fraud among the claims. Kennedy, Baum and several other plaintiffs’ lawyers began representing her in 2018. They have since incorporated a similar fraud claim into other Gardasil lawsuits, court filings show.

Roughly 200 Gardasil lawsuits have been consolidated into a multi-district proceeding before a North Carolina judge since 2022. Kennedy is an attorney of record in some of those cases.

    Despite their long-standing alliance, Baum and colleagues asked the Los Angeles judge to forbid mentioning Kennedy’s name in front of jurors.

    Kennedy is “not presently” an active attorney in the lawsuit, they wrote to the court in November, and his association with Trump “risks inciting potentially strong political opinions or biases.”

    The judge ruled that Merck’s defense team can inquire about Kennedy’s relationship to one of Robi’s expert witnesses, a former employee of the nonprofit organization he founded, Children’s Health Defense. The judge said the questioning can only refer to him in that context, and as “Mr. Kennedy,” not his full name.

As HHS Secretary, Kennedy could remove individual vaccines from the vaccine court. Plaintiffs’ lawyers could then sue manufacturers directly and pursue a wider set of claims from the outset, said Dorit Reiss, a professor at UC Law San Francisco.

    Such heightened risk could lead vaccine makers to raise prices or pull a product off the market, said John Grabenstein, a consultant and former Merck vaccine distribution executive who is not involved in the Gardasil litigation.

    Krakow opposes removing any vaccines from the special court, which he says helps consumers with minor injuries who don’t have the capacity to sue drugmakers. He said he emailed Kennedy a week after the November presidential election to discuss more modest reforms of the system.

    Kennedy’s response: “Let’s talk about it after Jan. 20.”

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By Inti Landauro and Andres Gonzalez

MADRID (Reuters) – State-owned investment fund SEPI has proposed to replace Telefonica (NYSE:TEF)’s Chief Executive Jose Maria Alvarez-Pallete, who has led the company since 2016, a source with knowledge of the matter told Reuters on Saturday.

The candidate to replace Alvarez-Pallete is Marc Murtra, currently executive chairman of defence company Indra, whose largest shareholder is SEPI, the source said.

The change would be decided in a board meeting to be held sooner rather than later, another source with knowledge of the matter told Reuters. Shareholders would have to ratify any board decision in a general assembly.

Both sources confirmed an earlier report by news website El Confidencial.

The current term of Alvarez-Pallete was due for renewal this year at the annual general shareholders assembly.

Under Murtra, Indra, which is 28% owned by the Spanish government, has focused on its defence and aerospace business to benefit from European countries’ increased military budgets following heightening world tensions.

Telefonica declined to comment and no one at Indra was immediately available for comment.

The Spanish government bought a 10% stake worth about 2.3 billion euros ($2.36 billion) in Telefonica through SEPI in May 2024 to counterbalance the acquisition of a similar stake by Saudi Arabia’s STC in late 2023.

On May 8, after having reached a 7% stake in the company, the government requested a seat on Telefonica’s board and proposed Carlos Ocana, a former industry ministry cabinet chief, to represent the government’s interests.

Over the past years, Telefonica, like rivals in Europe, has faced a squeeze on profitability from fierce competition and the need for hefty investment in infrastructure for the 5G next-generation mobile technology.

It has been selling stakes in more mature businesses such as submarine cables or mobile masts and smaller operations in Latin America to fund 5G and optic fibre.

($1 = 0.9736 euros)

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(Reuters) – TikTok CEO Shou Zi Chew said on Friday he wants to thank U.S. President-elect Donald Trump for his commitment to work with the company and find a solution that keeps the app available in the United States.

The company has until Sunday, Jan. 19, to cut ties with its China-based parent ByteDance or shut down its U.S. operation to resolve concerns it posed a threat to national security.

Supreme Court justices upheld a ban on Friday in a unanimous decision and a White House statement suggested Biden would not take any action to save TikTok before the deadline.

Trump said on Friday the decision on the future of the TikTok app will be up to him, but did not provide any detail about what steps he would take. Media reports have said that he was considering an executive order that would suspend the enforcement of the TikTok sale-or-ban law for 60 to 90 days.

Trump also said he and Chinese President Xi Jinping discussed issues including TikTok in a phone call on Friday.

Chew plans to attend the U.S. presidential inauguration on Jan. 20 and sit among high-profile guests invited by Trump, a source told Reuters.

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Investing.com – While US Treasury yields are expected to fall over the rest of 2025, the yield curve could nonetheless continue to steepen, according to analysts at Capital Economics.

Benchmark 10-year US government bond yields recently touched multi-month highs as investors fretted over the outlook for potential Federal Reserve interest rate cuts this year.

After slashing borrowing costs by a full percentage point in 2024, policymakers have signaled that they will take a careful approach to future drawdowns, especially as uncertainty looms over the policies of the incoming administration of President-elect Donald Trump. Economists have warned that Trump’s plans, particularly his threat to impose sweeping import tariffs on allies and adversaries alike, could place renewed upward pressure on inflation — and subsequently bolster the case for the Fed to roll out more rate cuts slowly, if at all.

But these worries were somewhat assuaged on Wednesday thanks to the December reading of consumer price growth. The data showed that while headline consumer prices in the US rose as expected in December, the underlying measure stripping out volatile items like food and fuel had increased at a slower-than-anticipated rate.

Bets that the Fed would opt to roll out a couple of rate cuts by the end of the year were boosted after the publication of the figures on Wednesday, and remained in play despite other solid economic indicators later in the week.

Treasury yields, which tend to move inversely to prices, dropped in response.

“The sell-off in Treasury yields has gone into reverse in the back half of this week,” the Capital Economics analysts said in a note to clients on Friday.

But they noted the trend was concentrated mainly at the long-end of the yield curve. This has led to a “significant” steepening in the curve, the analysts said, adding that this “suggests to us that near-term expectations for monetary policy — which in principle should directly affect the yields of short-dated bonds — haven’t been in the driver’s seat lately.”

This so-called “bear steepening”, in which long-end yields rise by more than short-end ones, has left the bond market in a “bit of an unusual place” compared to previous Fed easing cycles.

They argued that the next moves in bonds could be determined by two key questions: What was causing long-end yields to rise so sharply in the first place, and how likely is it to resume?

One possible explanation could revolve rising Treasury term premia — the compensation investors require for bearing the risk that interest rates may shift over the life of a bond — as investors gear up for potential volatility during the Trump administration, the analysts said.

Still, while they flagged that much seems to depend on how Trump’s policies progress over the next few years, “all signs seem, to us, to point to slightly lower yields.”

Their forecast is for the 10-year Treasury yield to end 2025 at 4.50%, about 10 basis points below its current level, while the declines at the front-end of the curve are seen being “more pronounced.”

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Investing.com — Tech stocks have wobbled into the start of the new year, but the US software sector remains inexpensive and is set to ride the third major tech cycle as consumer and enterprise AI adoption grows more rapidly, analysts from BofA said in a recent note. 

“The US Software (ETR:SOWGn) sector is not inexpensive after rallying 59% in 2023 and 23% in 2024,” BofA said in a recent note, pointing to numerous tailwinds including the unfolding Agentic AI wage, which is AI that can perform tasks taking initiative without constant human oversight, that will likely play a big role in the next leg of growth for software companies. 

Five Key US Software Trends for 2025

Enterprise AI pilots move to production: Demand for AI solutions will increase significantly as companies transition from pilot projects to full-scale implementations, driving substantial investment in software that supports enterprise AI capabilities.
Software companies provide quantitative commentary on AI adoption and monetization: Qualitative commentary on increased AI adoption from firms during 1H25 earnings is expected to evolve into quantitative indications of incremental revenue in the second half of the year before monetization becomes meaningful in 2026-27.
AI software spend cannibalizes low-priority IT projects: Companies are expected to prioritize spending on investments in AI over less critical IT initiatives.
Agentic AI and SLM (NASDAQ:SLM) development gain momentum: Agentic AI and small language model solutions are expected to gain momentum amid rising demand for automation to improve operational efficiency.
DevSecOps productivity accelerates as low/no-code apps proliferate: The increasing availability of low-code and no-code platforms will empower more teams to manage IT development , security and operations functions to enhance productivity across various departments.

Three Secular Themes for 2025

Agentic AI offerings become the key differentiator for software solutions: As competition intensifies, software providers that integrate Agentic AI capabilities may increasingly capture market share from the $12 trillion US Services industry.
Enterprise IT budgets accelerate in 2025/2026 as small business IT spending remains constrained through 1H25: Larger enterprises are expected to increase their IT investments significantly, while small business spending is likely to remain constrained amid macro headwinds.
Sustained cloud migration drives revenue growth acceleration as optimization headwinds ease: the ongoing migrating to cloud-based solutions, will drive up operational efficiencies and cost savings, bolstering revenue growth for cloud service providers.

Top 10 Software Companies to Own for 2025

CRM and Infrastructure subsectors are most favorably position to ride the positive trends and secular backdrop, BofA said, highlighting its list of top 10 buys for 2025 that includes Salesforce Inc (NYSE:CRM), HubSpot Inc (NYSE:HUBS), Microsoft Corporation (NASDAQ:MSFT), ServiceNow Inc (NYSE:NOW), Datadog Inc (NASDAQ:DDOG), Gitlab Inc (NASDAQ:GTLB), Global-E Online Ltd (NASDAQ:GLBE), Five9 Inc (NASDAQ:FIVN), Monday .Com Ltd (NASDAQ:MNDY), Asana Inc (NYSE:ASAN).

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Investing.com — As artificial intelligence transitions from digital interfaces to physical applications, Tesla Inc (NASDAQ:TSLA) is looking at a rapidly expanding frontier, embodied AI.

Morgan Stanley (NYSE:MS) analyst said buzz around Tesla was less about EVs and more about its innovations in robotics and AI. While concerns over the EV market’s headwinds, including competitive pressure from China and potential margin compression, loom large, the focus is shifting to Tesla’s full self-driving (FSD) advancements, robotaxi milestones, and humanoid robots like Optimus.

Morgan Stanley noted Tesla’s humanoid robot, Optimus, could become one of Tesla’s most valuable ventures, despite its absence from current valuation models.

Analysts view this as a broader trend within the “embodied AI” space, encompassing machines capable of navigating and interacting with the physical world—ranging from drones and autonomous vehicles to humanoid robots.

Though key components such as actuators, sensors, rare earth magnets, and energy storage systems are often sourced from global suppliers, including many in China. As the adoption of embodied AI grows, supply chain security and resilience are becoming critical concerns.

Tesla’s integration of hardware and AI capabilities gives it a potential edge in addressing the supply chain bottlenecks and manufacturing challenges that plague the robotics industry. Analysts suggest Tesla’s expertise in vertical integration and its ties with SpaceX and xAI, a company founded by CEO Elon Musk, could position it as a leader in this domain.

Moreover, Musk’s influence on policy discussions around autonomous vehicles could accelerate regulatory frameworks, enabling faster adoption of AI-powered technologies like robotaxis.

Tesla’s embodied AI ventures could redefine its growth trajectory. Analysts are revising models to incorporate the potential revenue streams from AI-driven industries, including autonomous ridesharing and intelligent robotics.

“Tesla’s role in helping to ‘fill the void’ of next gen manufacturing and supply chain will be an increasingly consequential driver of growth and shareholder value, in our opinion,” Morgan Stanley analysts said.

While Tesla remains synonymous with EVs, its AI ambitions may signal a new chapter for the company, one where robots, not cars, take center stage.

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(Reuters) – TikTok buzzed with nervous anticipation across the U.S. on Saturday as a looming federal ban threatened to sever access to the Chinese-owned app that has captivated nearly half of all Americans, powered small businesses and shaped online culture.

The company said late Friday that it will go dark in the United States on Sunday unless President Joe Biden’s administration provides assurances to companies like Apple (NASDAQ:AAPL) and Google that they will not face enforcement actions when a ban takes effect.

The ban would be enacted under a law signed by President Joe Biden in April and mark the first U.S. shutdown of a major social media app — with TikTok boasting about 170 million domestic users and an estimated $20 billion in 2025 revenue.

The platform has until Sunday to cut ties with its China-based parent ByteDance or shut down its U.S. operation to resolve concerns it posed a threat to national security.

Supreme Court justices upheld the ban on Friday in a unanimous decision and a White House statement suggested Biden would not take any action to save TikTok before the deadline.

Without a decision by Biden to formally invoke a 90-day delay in the deadline, companies providing services to TikTok or hosting the app could face legal liability. It is not clear if TikTok’s business partners, including Apple, Alphabet (NASDAQ:GOOGL)’s Google and Oracle (NYSE:ORCL), will continue doing business with it before Trump is inaugurated on Monday.

Uncertainty over the app’s future had sent users – mostly made up of younger people – scrambling to alternatives including China-based RedNote. Rivals Meta (NASDAQ:META) and Snap had also seen their shares rise this month ahead of the ban, as investors bet on an influx of users and ad dollars.

Marketing firms reliant on TikTok have rushed to prepare contingency plans this week in what one executive described as a “hair on fire” moment after months of conventional wisdom saying that a solution would materialize to keep the app running.

There have been signs that TikTok could make a comeback under incoming U.S. President Donald Trump, who wants to pursue a “political resolution” of the issue and had last month urged the Supreme Court to pause implementation of the ban.

Trump said on Friday the decision on the future of the TikTok app will be up to him, but he did not provide any detail about what steps he would take. Media reports have said that he was considering an executive order that would suspend the enforcement of the TikTok sale-or-ban law for 60 to 90 days.

TikTok CEO Shou Zi Chew plans to attend the U.S. presidential inauguration on Jan. 20 and sit among high-profile guests invited by Trump, a source told Reuters.

Suitors including former Los Angeles Dodgers owner Frank McCourt have expressed interest in the fast-growing business that analysts estimate could be worth as much as $50 billion. Media reports say Beijing has also held talks about selling TikTok’s U.S. operations to billionaire and Trump ally Elon Musk, though the company has denied that.

Privately held ByteDance is about 60% owned by institutional investors such as BlackRock (NYSE:BLK) and General Atlantic, while its founders and employees own 20% each. It has more than 7,000 employees in the U.S.

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Investing.com – Emerging market stocks have underperformed for a fourth straight year, bringing the cumulative lag to their developed market peers since 2019 to 45%, according to analysts at JPMorgan.

They added that the MSCI Emerging Markets index, which tracks large- and mid-cap names across 24 countries, has reversed all of its jump logged in September sparked by a raft of stimulus measures from the Chinese government aimed at reviving sluggish activity in the world’s second-largest economy.

As a result, emerging market equities are “staying cheap” on most valuation, and are “under-owned”, the analysts said in a note to clients.

Still, possible upside for these stocks could come from news that US President-elect Donald Trump’s plans for sweeping new import tariffs are more benign than previously thought, the analysts argued. The unveiling of more aggressive stimulus moves from Beijing may add further support, they said.

While they acknowledged the potential for a squeeze higher in these stocks if either of these two events come to pass, they flagged that they do not believe this is not a moment to “close your eyes and buy” emerging market stocks “regardless of what news comes in.”

Uncertainty surrounds Trump’s trade plans in particular, with the former and future president have threatened to slap levies on allies and adversaries alike — include tariffs of 10% to 60% on goods from China, the world’s biggest emerging market.

They predicted that Trump will likely focus on executive actions when he returns to the White House later this month, and home in on issues like trade, geopolitics and immigration rather than his domestic agenda. Trump, they added, might also be “more to inclined to start forcefully” and potential dial back his actions later “in case of concessions, rather than the other way around.”

Meanwhile, they flagged that hopes for additional Chinese stimulus are “unlikely” before there is more clarity around Trump’s tariffs, noting that China may want to retain policy options to counter any adverse impact from the duties.

As a result, the analysts said are maintaining an “underweight” position on emerging market stocks.

“We have been advising through [the fourth quarter] to fade the [emerging market] bounce, and stay [underweight] [emerging market versus developed market] equities for the time being,” the analysts wrote. “Fading” refers to an investment strategy that goes against prevailing market trends.

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