US President Donald Trump said Wednesday he will not involve himself in the ongoing battle between Netflix and Paramount Skydance over the proposed acquisition of Warner Bros. Discovery, reversing his earlier statements suggesting he might weigh in.

“I haven’t been involved,” Trump told NBC News. “I must say, I guess I’m considered to be a very strong president. I’ve been called by both sides. It’s the two sides, but I’ve decided I shouldn’t be involved. The Justice Department will handle it.”

According to Reuters, the conflict centers on Netflix’s $82.7 billion bid to acquire Warner Bros. Discovery, including its film studios, HBO, and the HBO Max streaming service.

Paramount Skydance is pursuing a competing, hostile offer, citing a potentially smoother regulatory path.

The rivalry escalated after Warner Bros. repeatedly rejected Paramount’s bids, leaving the Ellison-run company, led by David Ellison—the son of Oracle co-founder and Trump ally Larry Ellison—to push harder for control.

Trump acknowledged the competition in his interview, noting the divide between the bidders.

“There’s a theory that one of the companies is too big and it shouldn’t be allowed to do it, and the other company is saying something else,” he said. “They’re beating the hell out of each other—and there’ll be a winner.”

Donald Trump now says he won’t involve himself in the fight between Netflix and Paramount for Warner Bros.

“I’ve been called by both sides… but I’ve decided I shouldn’t be involved. The Justice Department will handle it.”

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(Source: @NBCNews) pic.twitter.com/pQZ2FKcNIG

— DiscussingFilm (@DiscussingFilm) February 5, 2026

Donald Trump Steps Back From Netflix-Warner Merger

Last December, Trump had signaled he would weigh in on whether the Netflix-Warner deal should proceed, citing concerns about market concentration.

“They have a very big market share. When they have Warner Bros., that share goes up a lot,” he said at the time. He added that he would consult economists before making a decision.

Netflix’s co-CEO, Ted Sarandos, defended the acquisition before the Senate Judiciary subcommittee on Antitrust, stating the merger would increase competition rather than reduce it.

Lawmakers pressed Netflix on consolidation, labor impacts, and political bias concerns, but Sarandos emphasized that Netflix’s programming serves “all, left, right and center” with no political agenda, NBC News reported.

Trump’s decision to stay out could benefit Netflix, which already has an agreement in place with Warner Bros. Discovery.

The Justice Department’s Antitrust Division, along with regulators abroad including the European Commission, will review the proposed deal. Warner Bros. shareholders could vote on the acquisition as early as March.

Trump has also attracted attention for personal investments related to the deal, having disclosed in January that he purchased up to $2 million in Netflix and Warner Bros. Discovery bonds shortly after Netflix’s offer was announced. The White House maintains that there is no conflict of interest.

Originally published on vcpost.com

Mortgage rates ticked higher this week, mortgage buyer Freddie Mac said Thursday.

Freddie Mac’s latest Primary Mortgage Market Survey, released Thursday, showed the average rate on the benchmark 30-year fixed mortgage increased to 6.11% from last week’s reading of 6.10%. 

The average rate on a 30-year loan was 6.89% a year ago.

HOME DELISTINGS SURGE AS SELLERS STRUGGLE TO GET THEIR PRICE

“For the last several weeks, the 30-year fixed-rate mortgage has remained at its lowest level in years,” said Sam Khater, Freddie Mac’s chief economist. “The combination of improving affordability and availability of homes to purchase is a positive sign for buyers and sellers heading into the spring home sales season.”

The average rate on a 15-year fixed mortgage rose to 5.5% from last week’s reading of 5.49%.

THE MARKETS WHERE HOMEBUYERS MAY FINALLY GET SOME RELIEF IN 2026, REALTOR.COM SAYS

Realtor.com Senior Economist Anthony Smith noted that the 30-year fixed mortgage rate was little changed and ticked marginally higher from the last reading after the Federal Reserve left interest rates unchanged and President Donald Trump nominated former Fed Governor Kevin Warsh as the next Fed chairman.

“The Freddie Mac 30-year fixed mortgage rate held steady this week at 6.11%, up 1 basis point from the previous reading. While the Fed held rates steady at its January meeting, the nomination of Kevin Warsh as the next Federal Reserve chair has re-centered attention on the importance of policy credibility and investor expectations,” Smith said.

HOMEBUILDERS REPORTEDLY DEVELOPING ‘TRUMP HOMES’ PROGRAM TO IMPROVE AFFORDABILITY

“Mortgage rates are not directly set by the Fed but instead reflect long-term yields, which respond to shifting economic signals, market sentiment and perceived risks. If investors grow uncertain about the Fed’s intentions or begin to question its independence, long-term yields can rise even during a rate-cutting cycle,” Smith said. “That paradox underscores the risk of mixing political objectives with monetary policy.

“For housing, that means aggressive calls for rate cuts may not lower mortgage rates unless market confidence in the Fed’s inflation-fighting credibility remains intact.”

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Smith also said home affordability benefits from low inflation and a stable labor market, coupled with wage growth to boost household purchasing power.

“Whether buying a first home, relocating or moving up, American families need both stable prices and steady income growth. A Fed that is seen as credibly delivering on its dual mandate of price stability and maximum employment is the most durable path to better housing affordability over time,” he added.

Eurozone inflation fell below the European Central Bank’s target in January and is expected to remain under that 2% mark over the next two years.

However, a weaker dollar and increased imports of lower-priced Chinese goods could push inflation even lower than policymakers expect, and persuade them to restart a series of interest-rate cuts the ECB halted in June.

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This article was written by

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

SBI PSU Fund managed by SBI Mutual Fund offered the highest CAGR in the last three years and five years respectively among all the equity mutual funds, an analysis by ETMutualFunds showed. In the last three years, the fund gave a CAGR of 32.14% and around 28.74% in the last five years (Source: ACE MF).

Launched in July 2010, the fund is not given any rating by Morningstar and Value Research. For this fund, according to Value Research, each category must have a minimum of 10 funds for it to be rated, which is not the case for the PSU category as there are five funds. As per Morningstar, this category is a non rateable category fund.

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Based on the trailing returns, the fund has outperformed its category average in the last three and five years whereas in the last 10 years, it failed to outperform its benchmark. As in the last three years and five years, the fund gave 32.14% and 28.74% respectively, the category average was 30.60% and 27.94% respectively. Since its inception, the fund has delivered a CAGR of 8.35%. Note, the data for the benchmark BSE PSU TRI was not available to compare the performance of the fund.

On the basis of daily rolling returns, the fund has delivered a CAGR of 15.23% in the last five years, 8.27% in the last seven years, and 7.79% in the last 10 years.

A monthly SIP made in the fund since its inception would have been Rs 59.25 lakh with an XIRR of 13.67%. A lump sum investment of Rs 1 lakh made in the fund since its inception would have been Rs 3.48 lakh with a CAGR of 8.34%.

How does the fund house decode the performance?

PSU stocks have been strong performers, both on an absolute basis and relative to the broader market post 2020, due to an earnings revival and valuation re rating and this tailwind clearly aided our fund’s performance, Rohit Shimpi, Fund Manager, SBI PSU Fund shared with ETMutualFunds.Top contributors for the fund over the last five years have been our holdings in PSU banks and financial institutions, industrials including defence, utilities including electric utilities, energy and metals. These stocks were aided by improvement in asset quality of PSU banks, growth in defence and power, and a positive commodity cycle impacting metals.

Our fund’s strategy has not changed significantly over time, however in mid 2024, we did feel that certain pockets within PSUs were seeing exuberance, and we realigned the portfolio towards large cap stocks within the PSU space. Overall, while being highly stock specific, we remain more positive on large cap stocks within the PSU space at this point in time, Shimpi further said.

What experts say on SBI PSU Fund

According to an expert, with the fund comfortably outperforming its category average, this strong performance marks a sharp improvement over its long term historical returns and reflects the powerful rally seen in public sector stocks in recent years.

Abhishek Bhilwaria, BhilwariaMF (AMFI registered MFD), shared with ETMutualFunds that the primary drivers of this performance have been favourable macroeconomic conditions for PSUs and focused portfolio positioning. The government led reforms, balance sheet clean ups in public sector banks, higher capital expenditure and policy support for infrastructure, defence and energy companies have significantly improved earnings visibility across the sector.

“In addition, the fund has maintained high exposure to core PSU segments such as financial services, energy and power, which have been among the biggest beneficiaries of the economic cycle.”

He further said that the fund has also benefited from a concentrated portfolio approach, with its top holdings accounting for over half of its assets and stocks such as State Bank of India, Bharat Electronics and NTPC have delivered strong returns and played a major role in boosting overall fund performance, and a measured allocation to mid cap PSUs further enhanced returns during periods of market momentum.

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As per the last available portfolio data, the top 10 stock holding of the fund is SBI with an allocation of 17.80%, followed by NTPC of around 7.70%, and Bank of Maharashtra with an allocation of 3.65%.

Based on the sectoral allocation, the fund holds 30.05% in banks, 13.49% in power, and 13.33% in crude oil. Around 12.32% is allocated to capital goods, 8.53% to gas transmission, and 6.30% to mining.

So has the fund benefited more from stock selection or sector trends? Bhilwaria said that the SBI PSU Fund has benefited more from broad sector trends, with stock selection acting as a differentiating factor rather than the primary driver and the re rating of the PSU sector as a whole has been the foundation of the fund’s strong returns.

“Improved asset quality in PSU banks, sustained government spending on infrastructure and defence, and renewed investor confidence in public sector enterprises lifted the entire category. This is evident from the fact that average PSU funds have also delivered strong multi year returns, indicating that the rally was sector wide.”

However, SBI PSU Fund’s ability to consistently rank at the top of the category stems from its concentrated exposure to high conviction names and its willingness to take calculated bets across market capitalisations. By overweighting leaders such as SBI and Bharat Electronics and maintaining exposure to select mid cap PSUs, the fund was able to capture incremental gains over peers.

The fund holds 97.12% in equity, 0.08% in debt, and 2.80% in others. Based on market capitalisation, the fund holds 68.95% in large caps, 21.21% in mid caps, 2.89% in others, and 6.96% in small caps.

Should one focus on this sector now post Budget 2026?

Bhilwaria said that following the Union Budget 2026, the outlook for PSU funds has turned more cautious in the near term. PSU bank stocks corrected sharply after the budget due to the absence of fresh capital infusion announcements and profit booking after a strong pre budget rally and this highlights the sensitivity of PSU stocks to policy signals and market expectations.

“That said, the longer term structural story remains intact. The government’s continued emphasis on capital expenditure, particularly in power, defence, railways and infrastructure, supports earnings growth for several PSU companies. As a result, PSU funds may still offer opportunities, but a selective and disciplined approach is essential rather than aggressive lump sum allocations.”

And lastly, given their very high risk profile, sectoral and thematic funds such as PSU funds should form only a small part of an investor’s portfolio. Most experts recommend limiting exposure to a single sector fund to around 10% of the overall portfolio.

He further said that these funds should be treated as satellite investments, while the core portfolio remains anchored in diversified equity funds and investors whose PSU allocation has increased significantly due to past rallies may also consider rebalancing to manage risk.

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Key risk ratios and investment style

The PE and PBV ratio of this fund were recorded at 19.66 times and 3.12 times respectively whereas the dividend yield ratio was recorded at 2.39% as of December 2025.

ETMutualFunds analysed the other key ratios of the fund over a three year period. Based on the last three years, the scheme has offered a Treynor ratio of 2.15 and an alpha of 0.18. The Sortino ratio of the scheme was recorded at 0.82. The return due to net selectivity was recorded at 0.12 and return due to improper diversification was recorded at 0.05 in the last three years.

The investment style of the fund is to invest in growth oriented stocks across large cap market capitalisations.

Others in PSU basket

Apart from SBI PSU Fund, there are three other actively managed funds in the category which have completed three years of existence in the industry. Invesco India PSU Equity Fund gave 31.74%, Aditya Birla SL PSU Equity Fund gave 29.49%, and ICICI Prudential PSU Equity Fund gave 29.03% in the last three years.

Post seeing strong performance by these funds, what is the outlook of these funds? The expert said that the outlook for the PSU sector in early 2026 is one of selective long term opportunity combined with near term volatility. Fundamentally, many PSUs are in a stronger position than in previous cycles, with healthier balance sheets, improved governance and steady cash flows and several companies continue to offer attractive dividend yields and benefit from government backed order visibility.

“However, market sentiment has become more discerning. Much of the valuation re rating seen over the past few years is already priced in, particularly in PSU banks. Budget related uncertainty, evolving governance reforms and ambitious disinvestment targets have added to short term fluctuations. As a result, broad based sector rallies may be limited going forward.”

He further said that for PSU funds, this suggests a phase of consolidation rather than runaway gains. Performance is likely to be driven by stock specific fundamentals rather than pure sector momentum. Investors should approach PSU funds with a medium to long term horizon, an ability to tolerate volatility and a clear understanding that returns may be uneven, and a selective and measured exposure remains the most prudent strategy in the current environment.

One should always consider risk appetite, investment horizon, and goals before making any investment decisions.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

If you have any mutual fund queries, message ET Mutual Funds on Facebook or Twitter. We will get it answered by our panel of experts. Do share your questions at ETMFqueries@timesinternet.in along with your age, risk profile, and Twitter handle.