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Tech billionaire Elon Musk has spent at least $270 million to support Donald Trump’s bid for the US presidency, making him the largest political donor in the country, according to new federal filings.

Record-breaking political contributions

Data from the nonprofit OpenSecrets reveals that Musk’s contributions have surpassed any single political donor’s spending since 2010, setting a new record. Musk, a vocal supporter of Trump, played a key role in funding various aspects of his presidential campaign, including financing door-knocking operations and making appearances at rallies. 

In recognition of his financial support, Musk has secured a cost-cutting advisory role in Trump’s incoming administration. His efforts have been crucial in helping Trump navigate the electoral race and build momentum.

Surpassing previous top donor Tim Mellon

Musk’s $270 million contribution in the 2024 election cycle eclipsed the previous record set by Tim Mellon, the top Republican donor in recent years, who contributed close to $200 million. According to filings with the Federal Election Commission, Musk donated $238 million to America PAC, a political action committee he founded to support Trump. Additionally, $20 million went to RBG PAC, which aimed to soften Trump’s stance on abortion through targeted advertising.

Close ties between Musk and Trump

Musk has consistently supported Trump, even inviting the former president to witness a SpaceX rocket launch in Texas. The relationship between the two has deepened, with Trump selecting Musk to lead the newly created Department of Government Efficiency (DOGE). Together, they have promised to implement substantial federal spending cuts.

Potential conflict of interest concerns

Musk’s new role raises concerns over potential conflicts of interest, given that his companies interact with both US and foreign governments in various ways. This connection has fuelled debates about the potential for undue influence over policy decisions.

In addition to Musk’s prominent role, Trump has nominated several Musk allies for positions in his administration. These include investor David Sacks, who will serve as the AI and crypto czar, and billionaire astronaut Jared Isaacman, who has worked closely with SpaceX and will head Nasa.

Other key donors poised for roles in Trump administration

Several major donors who contributed generously during the final stages of the campaign are set to secure positions in the new administration, pending Senate confirmation.

-Howard Lutnick, CEO of Cantor Fitzgerald LP and nominated for Commerce Secretary, donated nearly $5 million to super PACs supporting Trump.

-Jeffrey Sprecher, founder of Intercontinental Exchange, whose wife Kelly Loeffler is tapped to head the Small Business Administration, contributed $1 million.

-Linda McMahon, selected to lead the Education Department, also gave $1 million, according to FEC filings for donations made from mid-October to Election Day.

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RBI MPC meeting highlights: The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 6.5%, Governor Shaktikanta Das announced on Friday, December 6, 2024. This makes it the 11th consecutive time the repo rate has remained unchanged at 6.5%. Meanwhile, the RBI cut the cash reserve ratio (CRR) by 50 basis points to 4%.

This comes at a time when India’s inflation surged to 6.2% in October 2024, breaching the RBI’s tolerance limit and gross domestic product (GDP) growth slowed down to 5.4% for the July-September quarter.

It may also be the final MPC with Governor Das at the helm as his term ends this month. However, it is unknown if he will continue in office or not since he got an extension in 2021 after being appointed in December 2018.

The MPC decision announcement and press conference has been concluded.

The RBI decided to keep the repo rate unchanged at 6.5%, making it the 11th consecutive time the repo rate has remained unchanged.

Meanwhile, the cash reserve ratio (CRR) has been cut by 50 basis points to 4%.

This came as a balancing act when India’s inflation surged to 6.2% in October 2024, breaching the RBI’s tolerance limit and gross domestic product (GDP) growth slowed down to 5.4% for the July-September quarter.

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The market regulator on Thursday restrained Mishtann Foods from raising any public funds for seven years over alleged gross misrepresentation of financial statements. 

Further, the managing director and several other directors have been restricted from accessing the securities market until further orders. 

The Securities and Exchange Board of India (Sebi) pointed out that almost all sale and purchase transactions of Mishtann Foods Ltd (MFL) since FY20 were prima facie found to be fictitious. 

The company has also been directed to bring back the proceeds from its rights issue in April, amounting to Rs 49.82 crore, which were allegedly misutilised or diverted through group entities to the promoters and directors of the company.

Mishtann has also been instructed to appoint a new audit committee to oversee related-party transactions. 

The public shareholding in the company stood at more than 50 per cent, with over 4.23 lakh shareholders at the end of the September quarter. The number of public shareholders in 2018 was only 516.

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Auto components manufacturer Samvardhana Motherson Ltd. has announced the acquisition of a 95% stake in Japan-based Atsumitec in an all cash deal worth $57 million.

In an exchange filing on Friday, December 6, Samvardhana Motherson said that the deal is likely to be completed by the first quarter of the next financial year.

As part of the deal, a Special Purpose Company (SPC) incorporated by Atsumitec, will first acquire 51.99% stake from existing shareholders with a minimum threshold of 48.02% to be procured.

As of date, the SPC has already acquired 31.75% out of the 51.99% stake from existing shareholders. In case the minimum threshold is not achieved, the deal will not move forward, Samvardhana Motherson said.

Post this, Samvardhana Motherson will acquire the shares from the SPC post required regulatory approvals. This is likely to be completed by the fourth quarter of the current financial year. The deal will make Samvardhana Motherson the largest stakeholder in Atsumitec and also give it consolidation rights and the ability to reconstitute the board of Atsumitec.

Atsumitec will also launch a buyback of shares of Honda Motors. Post this, Samvardhana Motherson will hold a 95% stake in the target entity, while Honda Motors will hold the remaining stake.

On the day of the buyback, Samvardhana Motherson will buy another 49% stake in Atsumitec Indonesia from Honda Motor.

Atsumitec is engaged in the production of high precision machined components, including gear shifters, chassis and transmission parts for four-wheelers and two-wheelers. It has nine facilities across seven countries, including Japan, China, US, Mexico, Thailand, Indonesia and Vietnam.

The acquisition will help Samvardhana Motherson expand its share of the business with Japanese Original Equipment Manufacturers (OEMs). It will also help the company diversify its portfolio by entering into new product lines and new geographies like Vietnam for the two-wheeler segment.

Samvardhana Motherson will also get access to global metal and machining capabilities post the deal.

The deal will require a merger control clearance from the merger control authorities of Japan.

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Nomura expects the Reserve Bank of India (RBI) to begin an aggressive rate-cutting cycle, with the first cut likely to be announced on the RBI policy date of December 6.

Aurodeep Nandi, India Economist at Nomura, expects RBI to announce a 25 basis points repo rate cut and a 50 basis points Cash Reserve Ratio (CRR) cut on December 6 to address the economic slowdown and infuse liquidity.

Nandi explained that these steps aim to address India’s cyclical economic slowdown.

“When your forward looking (inflation) forecast is pretty well anchored at 4-4.5%, and the GDP print that we got of 5.4% is pretty shocking when India’s trend growth is 6-7%. That is not normal. This means that not only does the RBI need to downgrade its GDP forecast for FY25 which is at 7.2% currently, but also reassess its confidence on the growth cycle. This is the time to do the rate cut, because monetary policy has to be forward looking,” he said.

The repo rate cut would tackle the ongoing demand slowdown, while the CRR cut is expected to inject durable liquidity into the system following significant forex interventions.

Nomura has downgraded its GDP growth forecast for 2024-25 (FY25) to 6% and 2025-26 (FY26) to 5.9%, citing multiple headwinds.

Urban demand has weakened post-pandemic, and the RBI’s macroprudential tightening has slowed credit growth, further impacting consumption.

Global uncertainties, including potential US trade and immigration policies, add to the challenges.

However, rural demand could offer some relief, supported by favourable monsoons.

Private capital expenditure remains muted, and Nandi emphasised the need for a ramp-up in government spending to support economic activity.

While fiscal constraints are less of an issue now, delays in executing capex plans could result in a shortfall of ₹1 trillion from the government’s FY25 target of ₹11.1 trillion.

Despite these challenges, Nandi noted that overall capex this year is still expected to exceed last year’s levels, although slightly below the budgeted 3.4% of GDP.

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