Podcast Summary: Squawk on the Street – The DOJ’s Powell Probe, Trump Slams Exxon Mobil, Apple-Gemini AI Connection

Date: January 12, 2026
Hosts: Carl Quintanilla, Jim Cramer, David Faber (CNBC)
Episode Theme:
A volatile start to the week as the market digests news of a Department of Justice probe into Fed Chair Jerome Powell, President Trump’s tough stance on Exxon Mobil and credit card companies, and big tech developments including Apple’s AI moves. The hosts discuss the implications for Federal Reserve independence, corporate America’s tightrope in a politicized environment, and shifting sector dynamics.

Main Topics & Detailed Breakdown

1. Markets React to DOJ’s Criminal Investigation into Fed Chair Powell

• Key Segment: [00:59 – 10:35]
• Powell confirms DOJ served grand jury subpoenas. The probe relates to his testimony about Federal Reserve building renovations, but Powell calls it a pretext for White House pressure on rates.
• Threat to Fed independence:
  • Jim Cramer: “This is a matter… where, when you get in the job, you better go with the program… you have to stand up for yourself. You stand up for yourself, then who knows what could happen?” [04:56]
• Long-term implications:
  • Concerns that this sets a precedent where future Fed officials could fear criminal prosecution for acting independently.
  • David Faber: “This is not necessarily as much about Powell as it really could be about his successor… the idea that they are not expected then to perhaps show that real independence.” [04:19]
• Bonds take it in stride:
  • Cramer notes solid fundamentals but worries the criminalization narrative could invert market consensus.

2. Bank Stocks, Credit Card Rate Cap, and Trump’s Regulatory Pressure

• Key Segment: [10:35 – 14:16, 32:01 – 36:44]
• Trump calls for 10% cap on credit card rates.
  • Market-negative for Capital One, Citi, Synchrony, and peers.
  • Cramer: “We know that they lose 3 to 5% on credit cards… How many companies would issue credit cards knowing with a cap of 10%? The answer is none.” [12:26]
• Cap’s effect on lending:
  • Would likely cause companies to halt new credit, undermining consumer spending.
  • David Faber: “The incentives would be to stop lending.” [14:16]
• Corporate response fears:
  • Cramer: “It gets personal very quickly. And a lot of these executives… are just not used to that.” [32:01]
• Board-level dilemma:
  • Cramer: “It becomes a real issue as a board-level issue that perhaps we have to take a stand on the president. Look, with the law firms that rolled over, I think they probably regret it…” [35:29]
• MasterCard/Visa angle: Not direct lenders, but subject to public pressure.

3. Trump’s Public Scolding of ExxonMobil (Darren Woods) and Broader Corporate Critique

• Key Segment: [11:20, 30:05 – 32:46]
• Trump threatens to keep ExxonMobil out of Venezuelan oil market after Woods criticized redevelopment terms.
  • Trump audio clip: “I didn’t like Exxon response. You know, we have so many that want it. I’d probably be inclined to keep Exxon out. I didn’t like their response. They’re playing too cute.” [31:24]
• Lesson for CEOs:
  • Cramer: “You got to keep your mouth shut when the President calls in all the bankers… Just don’t take them on, find another way.” [32:01]
• Cramer’s advice: Play along, keep your head down, and wait for a new administration.

4. Warner Bros-Paramount-Netflix M&A Saga and Legal Tactics

• Key Segment: [14:16 – 19:20]
• Paramount sues Warner Bros board in Delaware, escalates bid war for assets.
• No higher bid from Paramount: Paramount is pressuring but not offering more cash; uncertainty remains until a potential shareholder vote.
• David Faber: “They’ve chosen not to because they feel that $30 a share, all cash for the entire company, is superior in value and certainty. And certainty becomes an important component here overall.” [18:30]
• Overarching pattern: Hostile bid environments and competing corporate interests flourish under the current administration’s perceived antitrust leniency—unless the President personally objects.

5. Tech Titans: Apple, Gemini, and Walmart’s Digital Ambitions

• Key Segment: [24:38 – 27:47, 46:18 – 47:41]
• Apple’s services business outperforms; stock rebounds.
  • Cramer: “Apple having much better than expected service revenue... We’ve got a statement on the tape today saying it’s actually pretty good.” [27:26]
• Apple adopts Gemini (Google’s AI) as foundation model for its AI push:
  • Cramer: “Gemini is the winner—it looks like Apple foundation models can be built on Gemini… They did a fair look and decided Google is the best. So it’s really fabulous for Gemini and I would argue it is also really good for Apple.” [46:18]
• Walmart partners with Gemini for AI-driven commerce, challenging Amazon:
  • “Walmart also added to the NASDAQ 100… it just reminds you that there is going to be an economic component, commerce component to ChatGPT and Gemini that actually is... going to be very valuable for the customers.” [24:54]
  • Walmart’s e-commerce/delivery leaps seen as a direct threat to Amazon.

6. Healthcare Sector Update (JP Morgan Health Care Conference)

• Key Segment: [21:19 – 22:55]
• Competition in diabetes and vaccine sectors: Novo Nordisk (vs. Lilly), Medtronic, and Pfizer highlighted.
• Political pressure on pharma prices—from Trump again—with possible impacts on McKesson and others.
• Cramer: “President trying to get prices down and do direct… it might be bad for McKesson... it’s going to be oncology as you mentioned. No real breakthroughs that I see so far.” [22:17]

7. AI and the Evolving Job Market

• Key Segment: [39:05 – 41:14]
• 2025 marked the end of a historically strong job market.
• AI’s double-edged sword: Employers hesitant to hire as AI boosts productivity, though layoffs not yet apparent.
• Faber: “The willingness of employers to hire, whether it is going to mitigate their needs for new employees, not necessarily result in layoffs, but simply a lack of new hiring as they see current employees with the tools of AI are able to do more and be more efficient.” [40:15]

8. Macro Trends: Market Rotation, Gold, and Capital Flows

• Key Segment: [28:21 – 29:21, 42:24 – 43:42]
• Capital rotating into healthcare this week; previous leaders like banks under pressure.
• Gold continues six-month stretch of outperformance vs. S&P.
• Cramer on investment strategy: Keep an eye on sectors not currently targeted by the president—“If you don’t think about what the President’s going to do before you buy, he’s more important than Goldman Sachs.” [42:58]

Notable Quotes & Memorable Moments

• On Fed Independence:

  • Jim Cramer: “Only a hack would want the job now… If you stand up for yourself, then who knows what could happen?” [04:56]

• On Corporate Risk Under Trump:

  • “It gets personal very quickly. And a lot of these executives… are just not used to that.” [32:01]
  • “You want to keep your head down. Do you want to roll over? That seems to be the best way to do it. You figure that he’s not going to be president forever and you roll over.” [34:44]

• On the 10% Credit Card Cap:

  • “If you decide, listen, the banks can’t lend, what would the country look like… minus 10%. So let’s remember there is some consequence to the economy when you do, when you say something like that.” [12:26]

• On Exxon and Speaking Out:

  • Carl: “So your advice to corporates is just to sort of roll over.”
  • Cramer: “Exactly. Work with other people, administration, who are a little bit closer to the ground. You can’t really roll over here because it would be the end of consumer spend because these guys just would rather not issue credit cards since they lose 3 to 5%.” [32:46-32:59]

• On Apple-Gemini AI Deal:

  • “Gemini is the winner… Apple foundation models can be built on Gemini… They did a fair look and they decided Google is the best. So it’s really fabulous for Gemini and I would argue it is also really good for Apple.” [46:18]

Key Timestamps for Segments

| Time | Segment | |------------|------------------------------------------------------------------------| | 00:59 | Start of market coverage; DOJ-Powell probe context | | 02:05 | Powell’s response to probe (narrated by Jim) | | 04:19 | Independence of Fed; impact on successor | | 10:35 | Discussion shifts: Credit card cap, bank stocks, Trump vs. Exxon | | 14:16 | Warner Bros vs Paramount/Netflix deal drama | | 21:19 | Health Care Conference: vaccines, oncology, political risk | | 24:38 | Walmart-Gemini partnership, retail AI competition | | 27:26 | Apple Services surprise, Gemini as Apple’s foundation model | | 31:24 | Trump: “I didn’t like Exxon response… playing too cute.” | | 32:01 | Corporate responses, Board dilemmas in navigating administration | | 39:05 | Job market, AI’s impact | | 42:24 | Global rotation, Gold, international markets | | 46:18 | More on Apple-Gemini, return on Apple Services, implications |

Final Thoughts

This episode is a fast-moving narrative on the convergence of White House power, market strategy, and business risk. The DOJ’s probe into Powell is seen as a harbinger of lasting political interference in monetary policy, raising existential questions for Fed independence. The administration’s antagonistic approach toward credit card companies and Exxon Mobil signals a new normal of personalizing regulatory risk. Meanwhile, tech pivots—especially the Apple-Gemini partnership—showcase ongoing sector disruption and opportunity, framed against persistent questions about the AI-driven economy and the future of the job market.

Overall tone: Wry, incredulous at times, with a deep concern for the growing overlap between politics and markets, and a focus on tactical investment pivots in a changing regime.