December 07, 2025 Edition
This is a weekly free look of our premium Kedrosky Daily email. If you're not already a subscriber, sign up for a five-day preview.
Two Graphs
Microsoft's capex-to-sales ratio has surged to 25% by 2025, dramatically outpacing Exxon Mobil's 10%, highlighting a significant shift where a tech giant now invests a much larger share of sales in capital expenditures than an energy giant.
U.S. passport issuance surged dramatically after 2007, peaking at around 24 million annually by the early 2020s—almost five times higher than the rates seen in the late 1990s.
Headlines
Drug-Boat Attack Survivors Waved as U.S. Aircraft Flew By, Video Shows (WSJ) … California’s ‘Teacher Village’ Model Spreads as Housing Costs Soar (WSJ) … How Netflix stole Warner Bros from David Ellison (FT) … Why One Man Is Fighting for Our Right to Control Our Garage Door Openers (NY Times) … Giving Money Directly to Children Is an Idea the Right and Left Could Love (NY Times) … Angst Turns to Anger in Hollywood as Netflix Hooks Warner Bros. (NY Times) … Apple Rocked by Executive Departures, With Chip Chief at Risk of Leaving Next (Bloomberg) … The Big Read. Crypto’s rocky year (FT) … A Thanksgiving Dealmaking Sprint Helped Netflix Win Warner Bros. (Bloomberg)
The Idea
Mentions: Changes in geopolitics are significantly altering global trade relationships
Trade Partners Shift Alliances
Recent trends indicate a significant shift towards countries increasing trade with geopolitical partners while reducing reliance on rivals. This has the potential to reshape global supply chains and create new economic clusters. Businesses heavily dependent on current international supply chains should reassess their strategies to mitigate risks and capture new opportunities over the next 12 to 24 months.
Related reading:
Freight Waves: McKinsey: Geopolitical partners trading more with one another, less with rivals
FT: Strategic interdependence is rewiring the global economy