December Inflation Report
The December 2025 inflation report held steady at 2.7% annually, matching November’s rate and meeting economists’ expectations. Morgan Stanley’s chief economist noted that the report doesn’t give the Federal Reserve what it needs to cut rates later this month. Investors are placing a 95% probability that rates will be held steady. Tariff pass-through to consumers has been more muted than expected as businesses absorbed some costs.
Source: U.S. Bureau of Labor Statistics, Morgan Stanley
Leisure Focused Carrier
This past weekend, Allegiant Airlines announced an agreement to acquire Sun Country Airlines for $1.5 billion, including debt. Focus will be on the “vacationer” vs the “business” traveler. They may only fly a route on Thursdays and Sundays (classic “long weekend” days). They shift their entire fleet to follow the sun—flying heavily to Florida in the winter and to national parks or northern lakes in the summer. They expect to close the deal, pending approval, in the second of 2026. Once combined, the airline will operate under the Allegiant name.
Source: Wall Street Journal
Betting On Home Prices?
On January 5, 2026, Polymarket partnered with Parcl (a real estate data firm) to launch specific markets for home prices. You can now bet on the median home values in most major cities, although states such as Tennessee, New York, New Jersey, Maryland, and Nevada have limited or blocked prediction markets. Contracts mature monthly and are related to median home price values, not actual home prices.
Source: Wall Street Journal
AI Energy Demand Angst Growing
Sixty-seven million people in a 13-state region stretching from New Jersey to Kentucky get their power from a market operated by nonprofit PJM. Included in that region is Northern Virginia’s “Data Center Alley”. Consumers are furious about the rate increases. Amazon, Alphabet and Microsoft, have fought against building their own power sources or go dark during demand surges. With demand growth estimated at 4.8% a year, on average, for the next decade, rolling blackouts may be in consumers’ near future.
Source: Wall Street Journal
Delivery Drones Are Coming
Walmart just announced the expansion of its drone delivery service aiming to bring roughly 40 million Americans into its flight range this year. Amazon is also testing its Prime Air service in California, Texas, and the UK. Walmart says “Whether it’s a last-minute ingredient for dinner, a must-have charger for a phone, or a late-night essential for a busy family, the strong adoption we’ve seen confirms that this is the future of convenience.” The consumer demand for convenience apparently has no bounds.
Source: New York Times
Nasty Flu Season
There have been at least 15 million flu cases this season, according to the latest estimates from the Center for Disease Control and Prevention. This year, outpatient visits for flu-like symptoms reached the highest recorded level since the agency began tracking cases more than 30 years ago. Blame is being placed on a new strain of influenza which began spreading after strains were chosen for this year’s vaccine. Research has shown, though, that the current vaccine still offers protection against severe illness.
Source: Bloomberg, Center for Disease Control and Prevention
90th Anniversary
January 12th marked the 90th anniversary of Amelia Earhart’s solo flight from Honolulu to Oakland, the first of its kind. The flight took 18 hours and 15 minutes covering 2,408 miles, in a Lockheed Vega 5C Special. She disappeared, some say mysteriously, in 1937 in an attempt to fly around the world.
Source: Britannica
