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The story Donald Trump tells about himselfand to himselfhas always been one of domination. It runs through the canonical texts of his personal mythology. In The Art of the Deal, he filled page after page with examples of his hard-nosed negotiating tactics. On The Apprentice, he lorded over a boardroom full of supplicants competing for his approval. And at his campaign rallies, he routinely regales crowds with tales of strong-arming various world leaders in the Oval Office.

This image of Trump has always been dubious. Those boardroom scenes were, after all, reality-TV contrivances; those stories in his book were, by his own ghostwriters account, exaggerated in many cases to make Trump appear savvier than he was. And theres been ample reporting to suggest that many of the world leaders with whom Trump interacted as president saw him more as an easily manipulated mark than as a domineering statesman to be feared.

The truth is that Trump, for all of his tough-guy posturing, spent most of his career failing to push people around and bend them to his will.

That is, until he started dealing with Republican politicians.

For nearly a decade now, Trump has demonstrated a remarkable ability to make congressional Republicans do what he wants. He threatens them. He bullies them. He extracts from them theatrical displays of devotionand if they cross him, he makes them pay. If there is one arena of American power in which Trump has been able to actually be the merciless alpha he played on TVand there may, indeed, be only oneit is Republican politics. His influence was on full display this week, when he derailed a bipartisan border-security bill reportedly because he wants to campaign on the immigration crisis this year.

David Frum: The GOPs true priority

Sam Nunberg, a former adviser to Trump, has observed this dynamic with some amusement. Its funny, he told me in a recent phone interview. In the business world and in the entertainment world, I dont think Donald was able to intimidate people as much.

He pointed to Trumps salary negotiations with NBC during Trumps Apprentice years. Jeff Zucker, who ran the network at the time, has said that Trump once came to him demanding a raise. At the time, Trump was making $40,000 an episode, but he wanted to make as much as the entire cast of Friends combined: $6 million an episode. Zucker countered with $60,000. When Trump balked, Zucker said hed find someone else to host the show. The next day, according to Zucker, Trumps lawyer called to accept the $60,000. (A spokesperson for the Trump campaign did not respond to a request for comment.)

Contrast that with the power Trump wields on Capitol Hillhow he can kill a bill or tank a speakership bid with a single post on social media; how high-ranking congressmen are so desperate for his approval that theyll task staffers to sort through packs of Starbursts and pick out just the pinks and reds so Trump can be presented with his favorite flavors.

I just remember that thered be a lot of stuff that didnt go his way, Nunberg told me, referring to Trumps business career. But he has all these senators in the fetal position! They do whatever he wants.

Why exactly congressional Republicans have proved so much more pliable than anyone else Trump has contended with is a matter of interpretation. One explanation is that Trump has simply achieved much more success in politics than he ever did, relatively speaking, in New York City real estate or on network TV. For all of his tabloid omnipresence, Trump never had anything like the presidential bully pulpit.

From the January/February 2024 issue: Loyalists, lapdogs, and cronies

It stands to reason that [when] the president and leader of your party is pushing for something thats whats going to happen, a former chief of staff to a Republican senator, who requested anonymity in order to candidly describe former colleagues thinking, told me. Take away the office and put him back in a business setting, where facts and core principles matter, and it doesnt surprise me that it wasnt as easy.

But, of course, Trump is not the president anymoreand there is also something unique about the sway he continues to have over Republicans on Capitol Hill. In his previous life, Trump had viewers, readers, fansbut he never commanded a movement that could end the careers of the people on the other side of the negotiating table.

And Trumpwhose animal instinct for weakness is one of his defining traitsseemed to intuit something early on about the psychology of the Republicans he would one day reign over.

Nunberg told me about a speech he drafted for Trump in 2015 that included this line about the Republican establishment: Theyre good at keeping their jobs, not their promises. When Trump read it, he chuckled. Its so true, he said, according to Nunberg. Thats all they care about. (Nunberg was eventually fired from Trumps 2016 campaign.)

This ethos of job preservation at all costs is not a strictly partisan phenomenon in Washingtonnor is it new. As I reported in my recent biography of Mitt Romney, the Utah senator was surprised, when he arrived in Congress, by the enormous psychic currency his colleagues attached to their positions. One senator told Romney that his first consideration when voting on any bill should be Will this help me win reelection?

From the November 2023 issue: What Mitt Romney saw in the Senate

But the Republican Party of 2015 was uniquely vulnerable to a hostile takeover by someone like Trump. Riven by years of infighting and ideological incoherence, and plagued by a growing misalignment between its base and its political class, the GOP was effectively one big institutional power vacuum. The litmus tests kept changing. The formula for getting reelected was obsolete. Republicans with solidly conservative records, such as House Majority Leader Eric Cantor, were getting taken out in primaries by obscure Tea Party upstarts.

To many elected Republicans, it probably felt like an answer to their prayers when a strongman finally parachuted in and started telling them what to do. Maybe his orders were reckless and contradictory. But as long as you did your best to look like you were obeying, you could expect to keep winning your primaries.

As for Trump, its easy to see the ongoing appeal of this arrangement. The Apprentice was canceled long ago, and the Manhattan-real-estate war stories have worn thin. Republicans in Congress might be the only ostensibly powerful people in America who will allow him to boss them around, humiliate them, and assert unbridled dominance over them. Theyve made the myth true. How could he possibly walk away now?

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CNBC Daily Open: A Fed rate cut might not be festive enough

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CNBC Daily Open: A Fed rate cut might not be festive enough

An eagle sculpture stands on the facade of the Marriner S. Eccles Federal Reserve building in Washington, D.C., U.S., on Friday, Nov. 18, 2016.

Andrew Harrer | Bloomberg | Getty Images

On Wednesday stateside, the U.S. Federal Reserve is widely expected to lower its benchmark interest rates by a quarter percentage point to a range of 3.5%-3.75%.

However, given that traders are all but certain that the cut will happen — an 87.6% chance, to be exact, according to the CME FedWatch tool — the news is likely already priced into stocks by the market.

That means any whiff of restraint could weigh on equities. In fact, the talk in the markets is that the Fed might deliver a “hawkish cut”: lower rates while suggesting it could be a while before it cuts again.

The “dot plot,” or a projection of where Fed officials think interest rates will end up over the next few years, will be the clearest signal of any hawkishness. Investors will also parse Chair Jerome Powell’s press conference and central bankers’ estimates for U.S. economic growth and inflation to gauge the Fed’s future rate path.

In other words, the Fed could rein in market sentiment even if it cuts rates. Perhaps end-of-year festivities might be muted this year.

What you need to know today

And finally…

Researchers inside a lab at the Shenzhen Synthetic Biology Infrastructure facility in Shenzhen, China, on Wednesday, Nov. 26, 2025.

Bloomberg | Bloomberg | Getty Images

U.S.-China AI talent race heats up

When it comes to brain power, “America’s edge is deteriorating dangerously,” Chris Miller, author of the book “Chip War: The Fight for the World’s Most Critical Technology,” told a U.S. Senate Foreign Relations subcommittee last week. It’s a lead that’s “fragile and much smaller” than its advantage in AI chips, he said.

Part of the difference comes from the sheer scale, especially as education levels rise in China. Its population is four times that of the U.S., and the same goes for the volume of science, technology, engineering and mathematics graduates. In 2020, China produced 3.57 million STEM graduates, the most of any country, and far outpacing the 820,000 in the U.S.

— Evelyn Cheng

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CEO of South Korean online retail giant Coupang resigns over data breach

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CEO of South Korean online retail giant Coupang resigns over data breach

Park Dae-jun, CEO of South Korean online retail giant Coupang has resigned, three weeks after the company became aware of a massive data breach that affected nearly 34 million customers.

Coupang

The CEO of South Korean online retail giant Coupang Corp. resigned Wednesday, three weeks after the company became aware of a massive data breach that affected nearly 34 million customers.

Coupang said CEO Park Dae-jun resigned due to the data breach incident — which was revealed on Nov. 18 — according to a Google translation of the statement in Korean.

“I am deeply sorry for disappointing the public with the recent personal information incident,” Park said, adding, “I feel a deep sense of responsibility for the outbreak and the subsequent recovery process, and I have decided to step down from all positions.”

Following his resignation, parent company Coupang Inc. appointed Harold Rogers, the Chief Administrative Officer and General Counsel, as interim CEO.

Coupang said that Rogers plans to “focus on alleviating customer anxiety caused by the personal information leak” and to stabilize the organisation.

Park, who joined the company in 2012, became Coupang’s sole CEO in May, after the company transitioned away from a dual-CEO system.

According to Coupang, he was responsible for the company’s innovative new business and regional infrastructure development, and led projects to expand sales channels for small and medium enterprises, among others.

South Korean companies are known for being “very, very cost-efficient,” which may have led to neglecting areas like cybersecurity, Peter Kim, managing director at KB Securities, told CNBC’s “Squawk Box Asia” Wednesday.

“I think the core issue here is that we’ve had a number of other breaches, not just Coupang, but previously, telecom companies in Korea,” Kim added. “I understand some data companies consider Korea to be [the] top three or four most breached on a data, on an IT security basis in the world.”

Coupang breach a ‘double-edged sword’ for Chinese rivals due to security concerns: KB Securities

South Korean companies have been hit by cybersecurity breaches before, including an April incident at mobile carrier SK Telecom that affected 23.24 million people. The country previously saw one of its largest cybersecurity incidents in 2011, when attackers stole over 35 million user details from internet platforms Nate and Cyworld.

Nate is one of the most popular search engines in South Korea, while Cyworld was one of the country’s largest social networking sites in the early 2000s.

Prime Minister Kim Min-seok reportedly said Wednesday that strict action would be taken against the company if violations of the law were found, according to South Korean media outlet Yonhap.

Police also raided the Coupang headquarters for a second day on Wednesday, continuing their investigation into the data breach.

Yonhap also reported, citing sources, that the police search warrant “specifies a Chinese national who formerly worked for Coupang as a suspect on charges of breaching the information and communications network and leaking confidential data.”

Last week, South Korean President Lee Jae Myung called for increased penalties on data breaches, saying that the Coupang data breach had served as a wake-up call.

— CNBC’s Chery Kang contributed to this report.

How Coupang grew into South Korea's biggest online retailer

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Connecticut can’t take action against Kalshi for now, judge rules

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Connecticut can’t take action against Kalshi for now, judge rules

A US judge has granted prediction markets platform Kalshi a temporary reprieve from enforcement after the state of Connecticut sent it a cease and desist order last week for allegedly conducting unlicensed gambling.

The Connecticut Department of Consumer Protection (DCP) sent Kalshi, along with Robinhood and Crypto.com, cease and desist orders on Dec. 2, accusing them of “conducting unlicensed online gambling, more specifically sports wagering, in Connecticut through its online sports event contracts.”

Kalshi sued the DCP a day later, arguing its event contracts “are lawful under federal law” and its platform was subject to the Commodity Futures Trading Commission’s “exclusive jurisdiction,” and filed a motion on Friday to temporarily stop the DCP’s action.

An excerpt from Kalshi’s preliminary injunction motion arguing that the DCP’s action violates federal commodities laws. Source: CourtListener

Connecticut federal court judge Vernon Oliver said in an order on Monday that the DCP must “refrain from taking enforcement action against Kalshi” as the court considers the company’s bid to temporarily stop the regulator.

The order adds that the DCP should file a response to the company by Jan. 9 and Kalshi should file further support for its motion by Jan. 30, with oral arguments for the case to be held in mid-February.

Kalshi does battle with multiple US states

Kalshi is a federally regulated designated contract maker under the CFTC and, in January, began offering contracts nationally that allow bets on the outcome of events such as sports and politics.

Related: How prediction markets raise insider trading and credit risks

Its platform has become hugely popular this year and saw a record $4.54 billion monthly trading volume in November, attracting billions in investments, with Kalshi closing a $1 billion funding round earlier this month at a valuation of $11 billion.

However, multiple US state regulators have taken issue with Kalshi’s offerings, which have led to the company being embroiled in lawsuits over whether it is subject to state-level gambling laws.