Microsoft Ends Year as Most Valuable Publicly Traded Company

Microsoft Corporation has ended the year as the most valuable publicly traded company for the first time since 2002. Its position at the top of the markets is a remarkable turnaround for the company which has spent the past years behind other major technology firms such as Apple (which it ironically helped to save in 1999 with a $150 million investment).

Microsoft’s resurgence is often attributed to the leadership of Microsoft CEO Satya Nadella, who took over from Steve Ballmer. Nadella moved the focus on Microsoft to its cloud computing offerings, which allow companies to launch software on online servers to be accessible anywhere. It was a major break from Microsoft’s previous focus on its operating system Windows. Nadella’s efforts paid off, however, as Azure, Microsoft’s main cloud computing offering, now ranks second to Amazon Web Services and continues to post strong growth numbers.

Microsoft continues to face strong competition from Apple, Amazon, and Alphabet (parent of Google), and with that the number one spot could change hands several times in the coming year.

No End in Sight for Federal Government Shutdown

The government shutdown resulting from disagreement over the funding of a border wall continues into 2019 with no end in sight.

The shutdown began on December 22 after President Trump and Democrats failed to find agreement on funding the president’s signature campaign promise, a border wall across much, if not all, the US-Mexican border. Trump had asked Senate Minority Leader Chuck Schumer (D-NY) and incoming House Speaker Nancy Pelosi (D-CA) for $5 billion in funding for such a wall, which they have refused to support. With Trump in opposition to any spending bill that funds the government without wall funding, Republicans have been unwilling to support any spending bill without it. While Republicans hold the House until January 3, 2019, Senate Democrats have blocked measures that include wall funding as such bills need 60 votes to pass. Republicans hold a 51-49 majority in the Senate. While Republicans will gain net two seats in the coming Congress in the Senate, there will be still enough Democrats to block funding. In addition, the incoming Democratic majority in the House will also not be supportive of Trump’s requested funding.

Shutdowns lead to the suspension of numerous federal government services and the furloughing of government employees. The effects of this shutdown have been mitigated by two spending bills passed right before the main government funding resolutions expired. This money is expected to run out for many agencies, such as the Smithsonian, at the beginning of 2019.

Services deemed essential, such as those related to the military, continue to be funded.

Former US President George H.W. Dies at 94

Former US President George H.W. Bush died Friday night at 94. Born in 1924, he served as a Navy pilot during World War II, a US Congressman from Texas, Vice President under Ronald Reagan, and as President from 1989 to 1993.

Major Earthquake Strikes Anchorage, Alaska

A magnitude 7.0 earthquake shook Alaska’s largest city Anchorage on Friday, triggering a tsunami warning while residents recovered from the violent shaking. The tsunami warning has since been lifted. The earthquake was followed by a 5.7 aftershock.

The earthquake’s reported damage so far has included  broken windows, cracks in buildings, and damaged roadways, including a highway collapse. No deaths have yet been reported.

Alaska is no stranger to earthquakes. Alaska experiences more large earthquakes than all other US states combined and has on average more than 40000 each year. It experienced a magnitude 7.9 near Kodiak Island back in January.

Democratic Takeover of House will Cause Trump Problems, Senate Remains GOP

Democrats took forty seats in the House of Representatives this November, which will give them party a majority of seats in the chamber for the first times since 2011. Republicans, however, managed to increase their majority in the Senate by two seats, picking up four seats by defeating incumbent Democrats in states President Trump won in 2016 and losing two seats, one in Arizona and one in Nevada. Democrats will have 235 seats in the House to Republican's 200 when the new Congress begins January 3, while Republicans will have a 53-47 majority in the Senate.

This will cause some new issues for Trump and his party. With the Republicans now lacking full control of Congress, pushing through their favored legislation will become far more difficult. In addition, House Democrats have promised to launch a series of investigations into Trump, which could include searches into the extent of his contacts with Russian nationals, his handling of the firing of then-FBI Director James Comey in 2017, and allegations into whether Trump has personally enriched himself through his office.

Even with this, Republicans have maintained considerable power through expanding their Senate majority. Trump and Senate Majority Leader Mitch McConnell (R-KY) have made confirming Trump’s judicial nominees to federal courts a priority. With two more members in the next Congress, pushing through Trump’s picks will likely become less laborious for the GOP, which successfully fought to confirm now Justice Brett Kavanaugh to the court this year. 

Senate leadership will remain in the next Congress, with the exception of Sen. John Thune (R-SD) taking over for Sen. John Cornyn (R-TX) as Senate majority whip. The Republican House leader will be Kevin McCarthy (R-CA), while Democrats have yet to choose the speaker, but it is believed former Speaker and current House Democratic leader Nancy Pelosi (D-CA) has the best chance.