Key Takeaways
- Trump’s 25% tariffs on Canada and Mexico are causing significant market shifts, especially impacting the auto, mining, and chipmaking industries. There’s uncertainty over the specifics and timing of the tariffs, which is shaking global markets.
- Microsoft and OpenAI are investigating whether a group linked to DeepSeek accessed OpenAI data via its API in violation of terms. This has raised concerns about data security and compliance with API usage.
- Costco is raising hourly wages for employees, with top earners set to reach over $30 by 2026 and entry-level workers making $20. This wage hike comes amid ongoing union contract talks and highlights the company’s efforts to address worker compensation.
- The US SEC has given initial approval for a combined Bitcoin and Ether ETF from Bitwise Asset Management, providing a new way for investors to gain exposure to both cryptocurrencies.
- Mexico has warned that the new tariffs on goods from Canada and Mexico could increase costs for U.S. consumers and jeopardize the USMCA trade deal, calling the move a strategic mistake that could disrupt North American trade.
IPO’s in the week
- Smithfield Foods, a leading U.S. provider of packaged meats and fresh pork, is set to go public on the Nasdaq under the ticker SFD. The IPO, launching on January 28, 2025, will offer 34.8 million shares at $20.00 each, strengthening its global position in the protein market.
- Drugs Made In America Acquisition Corp., a Cayman Islands-based blank check company, is set to go public on the Nasdaq under the ticker DMAAU. The IPO, launching on January 28, 2025, will offer 20 million shares at $10.00 each, targeting future mergers and acquisitions.
- FG Merger II Corp., a SPAC formed for business combinations, is set to go public on the Nasdaq under the ticker FGMCU. The IPO, launching on January 29, 2025, will offer 8 million shares at $10.00 each.
- Stellar V Capital Corp., a blank check company, is set to go public on the Nasdaq under the ticker SVCCU. The IPO, launching on January 30, 2025, will offer 15 million shares at $10.00 each, targeting future mergers and acquisitions.
- Cloudastructure, a leader in cloud video surveillance since 2003, specializes in AI-driven security solutions. The company is set to go public on the Nasdaq under the ticker CSAI on January 30, 2025, offering 1,701,338 shares at $6.00 each.
- Beta Bionics, a medical technology company focused on advanced diabetes treatment, is set to go public on the Nasdaq under the ticker BBNX. The IPO, launching on January 30, 2025, will offer 10 million shares at $17.00 each.
- Metsera, a clinical-stage biotechnology company focused on developing ultra-long-acting hormone therapies for obesity and related diseases, is set to go public on the Nasdaq under the ticker MTSR. The IPO, launching on January 31, 2025, will offer 17,187,500 shares at $18.00 each.
- Maze Therapeutics, a San Francisco-based biotechnology company focused on precision medicines and genetic research, is set to go public on the Nasdaq under the ticker MAZE. The IPO, launching on January 31, 2025, will offer 7,800,000 shares at $16.00 each.
- Infinity Natural Resources, an energy company focused on hydrocarbon acquisition, development, and production in the Appalachian Basin, is set to go public on the NYSE under the ticker INR. The IPO, launching on January 31, 2025, will offer 13,250,000 shares at $20.00 each.
Markets this week
- Trump’s tariff announcement sent the Mexican peso down 1.1% and the Canadian dollar falling as much as 1.2%, shaking currency markets.
- Microsoft and OpenAI are investigating whether a group linked to DeepSeek improperly accessed OpenAI data via its API, potentially violating terms.
- Apple’s forecast of modest sales growth reassured investors after holiday results showed weakness in China and iPhone sales.
- Costco is raising hourly wages, with top earners reaching over $30 by 2026 and entry-level pay rising to $20, amid ongoing union contract talks.
- Trump’s 25% tariffs on Canada and Mexico are set to impact global markets, particularly autos, mining, and chipmaking, with uncertainty remaining over the details and timing.
- AstraZeneca scrapped its £450 million investment in a UK vaccine hub in Liverpool due to funding disputes with the Labour government.
- X CEO Linda Yaccarino and CFO Mahmoud Reza Banki met with investors at Morgan Stanley regarding a $3 billion debt sale.
- The US SEC gave initial approval to a combined Bitcoin and Ether ETF from Bitwise Asset Management, offering balanced exposure to both cryptocurrencies, weighted by market cap.
Politics Weekly
- Trump signed 25% tariffs on Canada and Mexico and 10% on China, including energy products from Canada, with a clause for further increases if retaliated against.
- Trump’s federal funding freeze sparked uncertainty before being overturned, foreshadowing future budget battles under his administration’s conservative agenda.
- U.S. officials are investigating whether Chinese AI startup DeepSeek acquired restricted Nvidia chips through third parties in Singapore, bypassing U.S. trade restrictions.
- German conservative leader Friedrich Merz faced a major setback in his chancellor bid as his tough migration proposal, backed by the far-right, failed in parliament.
- TikTok influencer Jackeline Vera shifted from gossip to warning about ICE raids, using videos and maps to track sightings and help followers avoid deportation.
- Trump’s envoy Richard Grenell reset U.S.-Venezuela ties, securing the release of six Americans and Venezuela’s agreement to accept deportees.
- Mexico warned Trump that 25% tariffs on its goods would raise costs for U.S. consumers and jeopardize the USMCA trade deal, calling it a strategic mistake.
- Israel’s High Court upheld a ban on UNRWA, disrupting aid efforts in Gaza and leaving workers scrambling to replace vital services.
- Trump announced U.S. airstrikes in Somalia targeting an ISIS cell and a commander but did not specify identities or casualty numbers.
- Protesters in Serbia’s Novi Sad blocked Danube bridges, marking three months since a fatal railway accident and demonstrating against President Aleksandar Vucic.
- Russia is willing to aid Syria’s reconstruction while negotiating to retain two key military bases, a senior adviser to Moscow said.
- Putin is gaining allies in Europe as nationalism rises in Slovakia, Austria, and Croatia, challenging support for Ukraine amid Trump’s push for peace.
- Erdogan seeks Trump’s support to shape the Middle East, with Turkey eyeing billions in rebuilding contracts in Syria and the region.
Technology Advancements this week
- The S&P 500 hits a record high, but its momentum is now tested by upcoming Fed signals and earnings reports from the “Magnificent 7” tech giants. This week’s events could challenge the rally’s strength as the tech leaders face lofty valuations.
- Norway’s $1.8 trillion sovereign wealth fund gained 13% from a surge in U.S. tech stocks. Despite benefiting from the tech boom, it fell short of its self-imposed return target.
- The U.S. is investigating whether DeepSeek obtained Nvidia chips from companies in Singapore. Nvidia insists that customers comply with legal requirements, as Singapore represents about 20% of its revenue.
- Nvidia CEO Jensen Huang is set to meet former President Trump at the White House on Friday. This marks their first meeting, following concerns over a new Chinese AI model.
- Apple has canceled plans for Mac-connected augmented reality glasses, as its headset group struggles to move forward after the Vision Pro. The canceled device would have competed with Meta’s upcoming AR glasses.
- Meta is considering reincorporating its business outside of Delaware, though it will not move its headquarters from California. The company has been incorporated in Delaware since 2004.
- New York City has accused Uber and Lyft of spreading “disinformation” about a proposed driver pay hike. The companies lobbied drivers and riders against the new rules, with a hearing scheduled for February 5.
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