Anti-Clickbait News Summaries for January 31, 2025
Hugging Face develops Open-R1 as fully open-source alternative to Deepseek-R1
Hi, itβs Jack and The Signals.Doctor team with your daily news summaries π
The Markets:
Futures Highlights
Markets show mild to moderate gains in equities, while energy commodities are mixed. Crude Oil remains nearly flat, and Natural Gas posts a solid uptick.
π΄ Crude Oil: 72.72 (β0.01 | β0.01%)
π’ Natural Gas: 3.0960 (+0.0490 | +1.61%)
π’ Gold: 2847.20 (+2.00 | +0.07%)
π’ Dow: 45214.00 (+159.00 | +0.35%)
π’ S&P 500: 6126.50 (+27.25 | +0.45%)
π’ Nasdaq 100: 21787.25 (+162.50 | +0.75%)
βͺ Russell 2000: 2316.20 (β0.10 | β0.00%)
Forex & Bonds
Forex pairs remain relatively stable, with the dollar gaining slightly on the euro. Treasury yields dip, signaling modest bond price increases.
π΄ EUR/USD: 1.0375 (β0.0015 | β0.14%)
π’ USD/JPY: 154.61 (+0.32 | +0.21%)
βͺ GBP/USD: 1.2415 (β0.0001 | β0.00%)
π’ BTC/USD: 104132.60 (+168.90 | +0.16%)
π΄ 5-Year Treasury: 4.311 (β0.046 | β1.06%)
π΄ 10-Year Treasury: 4.512 (β0.043 | β0.94%)
π΄ 30-Year Treasury: 4.758 (β0.032 | β0.67%)
Major News (Biggest Winners β Biggest Losers)
Tech names dominate todayβs biggest moves, with Tesla leading gains. Microsoft sees the largest decline following recent announcements.
π’ TSLA: +2.87%
π’ GOOGL: +2.79%
π’ GOOG: +2.76%
π’ V: +2.13%
π’ DECK: +1.92%
π’ AJG: +1.68%
π’ META: +1.55%
π’ INTC: +1.32%
π’ NVDA: +0.77%
π’ BOOT: +0.62%
π’ PPG: +0.30%
π΄ AAPL: β0.74%
π΄ AMZN: β1.03%
π΄ TEAM: β1.61%
π΄ HPE: β2.17%
π΄ MSFT: β6.18%
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The Daily News Podcast
Events Affecting The Markets Today & Beyond
Most Impactful News Summaries
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Today:
On Friday, January 31, 2025, several events are scheduled that could influence the U.S. stock market:
Economic Data Releases:
Personal Income and Outlays Report (December 2024): The Bureau of Economic Analysis (BEA) will release data on personal income, consumer spending, and the Personal Consumption Expenditures (PCE) price index at 8:30 AM Eastern Time. The PCE index is the Federal Reserve's preferred measure of inflation. Analysts anticipate a 0.3% increase for December, translating to a 2.6% annual riseβthe highest since May 2024. The core PCE index, excluding food and energy, is expected to rise by 0.2%, maintaining a 2.8% year-over-year increase for the third consecutive month. These figures are crucial as they influence Federal Reserve policy decisions.
Employment Cost Index (Fourth Quarter 2024): The Bureau of Labor Statistics (BLS) will publish the Employment Cost Index (ECI) for Q4 2024 at 8:30 AM Eastern Time. The ECI measures the growth of employee compensation, including wages and benefits, and is a key indicator of labor cost trends. Rising employment costs can signal increasing wage pressures, potentially impacting inflation and corporate profit margins.
Corporate Earnings Reports:
Several major companies are scheduled to report their fourth-quarter earnings today:
Exxon Mobil: Analysts expect Exxon Mobil to report a significant decline in Q4 earnings, with a projected earnings per share (EPS) of $1.55, down from $3.09 the previous year. Despite an anticipated 12% increase in revenue to $101.9 billion, profits are expected to decrease by 50%. Investors will focus on Exxon's capital spending plans and developments in its Guyana operations, which are central to its production growth strategy.
Chevron: Chevron is also expected to report a decline in Q4 earnings, with a projected EPS of $2.11, down from $4.09 the previous year. Revenue is anticipated to rise by 8% to $58.6 billion, but profits are expected to fall by 48%. Investors will be attentive to Chevron's capital expenditure plans and any updates on its legal dispute with Exxon over Hess's acquisition, which could affect its operations in Guyana.
Policy Announcements:
No major policy announcements are scheduled for today. However, investors remain attentive to potential developments, especially concerning recent discussions about tariffs. On Thursday, President Trump announced forthcoming tariffs on Canada and Mexico, which affected market sentiment. Any further details or clarifications today could influence market movements.
Other Notable Events:
Market Reactions to Previous Earnings: The market is still digesting earnings reports from major companies released earlier this week, including Apple's record earnings despite a slight decline in iPhone revenue. Apple's performance often has a broad impact on market sentiment.
International Developments: The Japanese yen is set for its best monthly performance since 2018, driven by expectations of continued rate hikes by the Bank of Japan. This development reflects the divergence in monetary policies between Japan and other major economies and could influence currency markets and international trade dynamics.
Most Impactful News Summaries:
Canadian businesses brace for potential U.S. tariffs as they explore new strategies
Canadian businesses are preparing for potential 25% tariffs on goods from the U.S., announced by President Trump. Companies like Apricotton and Eatable are exploring options to mitigate costs, including sourcing products from other countries and adjusting pricing strategies.
The uncertainty surrounding the tariffs has led many firms to run extensive scenarios to assess their supply chains. Kinaxis reports a surge in planning similar to early COVID-19 days, particularly in industries like automotive and food.
Some businesses are considering partnerships in the U.S. to avoid tariffs. Eatable's owner is looking into local production, while Apricotton may adjust shipping methods or absorb some tariff costs to maintain U.S. market access.
Small businesses brace for price hikes as new tariffs take effect
Small businesses are concerned about rising prices due to new tariffs proposed by Trump. Starting February 1, a 25% tariff on goods from Canada and Mexico, and a potential 10% tariff on Chinese goods, could increase costs for imported products.
Business owners are adjusting their strategies in response. Some are placing advanced orders or seeking new suppliers, while others are waiting to see how the tariffs will affect their operations.
One owner plans to introduce a "Trump tariff fee" to inform customers about rising costs. The uncertainty surrounding these tariffs has left many small businesses anxious about their future.
Source: https://finance.yahoo.com/news/trump-tariff-fee-small-businesses-090901096.html
Foreign investment in developing economies declines for second year, UN report shows
Foreign direct investment (FDI) in developing countries fell 2% in 2024, marking a second year of decline, according to the UN Trade and Development report. This decline is attributed to a sharp 31% drop in international project finance.
Asia and Latin America experienced FDI decreases, with developing Asia down 7% and Latin America down 9%. In contrast, Africa saw an 84% increase in FDI, largely due to a major project in Egypt.
Global FDI rose 11% overall, but excluding certain European economies, it actually fell 8%. The report highlights the need for countries to diversify their investment strategies to support sustainable development amid ongoing geopolitical tensions and economic uncertainty.
Startups show signs of resilience with profitable years and rising valuations
Swedish startup Voi reported its first profitable year, improving its position for a potential IPO. Norwegian robotics firm 1X acquired Kind Humanoid, while French health insurer Alan generated about $525 million in revenue, aiming for profitability by 2026.
Nuclear startup Helion raised $425 million, increasing its valuation to $5.245 billion. TravelPerk closed a $200 million funding round, nearly doubling its valuation to $2.7 billion. French quantum computing startup Alice & Bob secured $104 million in Series B funding.
Despite challenges, some data suggests 2025 may see fewer startup closures compared to previous years. AngelList CEO Avlok Kohli noted that the number of funded companies remains relatively high.
GitLab reports strong growth with AI-powered DevSecOps platform
GitLab Inc. has reported significant success with its AI-powered DevSecOps platform. The company now has over 40 million registered users, including more than half of the Fortune 100 companies.
This marks a notable increase in user engagement and corporate adoption compared to previous years. GitLab's focus on integrating AI into its services has contributed to this growth.
The company's advancements in AI technology have positioned it as a leader in the software development sector. This development highlights GitLab's evolving role in the industry.
BOJ governor signals continued rate hikes if economic forecasts hold
Bank of Japan Governor Kazuo Ueda stated that the central bank will maintain loose monetary policy to support inflation moving toward its 2% target. Recent inflation increases are mainly due to rising food and fuel costs.
Ueda noted that underlying inflation is still below 2% and emphasized the need for wage growth alongside price increases. The BOJ raised short-term interest rates to 0.5% last week, marking a shift from its previous stimulus measures.
The central bank aims to adjust monetary support based on economic and price developments. Ueda's comments reflect a cautious approach to managing inflation while ensuring economic stability.
AI executives predict commoditization of language models in 2025 with rise of new agents
Executives from major AI labs predict that large language models (LLMs) will become commoditized in 2025 due to advancements in next-generation AI agents and open-source alternatives. The recent launch of DeepSeek's R1 model has intensified this trend.
DeepSeek's R1 model claims to match OpenAI's offerings in cost and performance, leading to a significant drop in Nvidia's stock value. This shift indicates a growing belief that LLMs will be less differentiated and more widely available.
The focus is now shifting from LLMs to AI agents that can perform tasks autonomously. Companies like OpenAI and Anthropic are developing these agents, which aim to streamline user interactions with technology, moving beyond traditional web navigation.
Record demand for euro zone government bonds reaches 810 billion euros in January
Euro zone governments experienced record demand for bond sales in January, with over 810 billion euros sought for 73 billion euros issued. This demand exceeded supply by 11 times, driven by rising bond yields and investor interest.
Benchmark 10-year bond yields reached multi-month highs, influenced by concerns over funding needs. The increase in yields, along with collapsing swap spreads, made bonds more appealing to investors, particularly in Germany and France.
Despite the strong demand, some analysts caution against overinterpretation, noting that hedge funds may inflate their demand figures. However, long-term investor interest has significantly increased, indicating a robust market for euro zone government debt.
Trump's tariff threats boost interest in U.S. natural gas contracts
President Donald Trump's strategy to boost U.S. natural gas exports is gaining interest from countries like India, Kuwait, and Japan. Talks about securing U.S. gas contracts have intensified since his election victory in November.
Trump has threatened tariffs on nations that do not increase their liquefied natural gas (LNG) purchases from the U.S. This approach marks a shift from competitive pricing to politically driven trade, which may deter some buyers, particularly in China.
U.S. LNG exports have surged since 2017, positioning the country as a leading supplier. Global demand for natural gas is at an all-time high, with expectations of a 12% increase in consumption by 2030.
Source: https://au.finance.yahoo.com/news/specter-trump-tariffs-spurs-interest-100000671.html
Global military spending nearly doubles since the early 1990s
Global military spending has nearly doubled since the early 1990s, rising from about $1.3 billion in 1993 to nearly $2.4 billion in 2023. The largest increases occurred in Asia and Oceania, which saw a 277 percent rise.
In 2023, the Americas remained the highest spending region at $967 billion. European military spending also increased significantly, largely due to the ongoing war in Ukraine.
The United States led global defense spending in 2023 at $916 billion, followed by China, Russia, India, and Saudi Arabia. Ukraine emerged as the eighth largest military spender, with $64.8 billion.
Source: https://www.zerohedge.com/geopolitical/global-military-spending-has-almost-doubled-early-90s
Synaptics partners with Broadcom to boost edge AI and IoT solutions
Synaptics Incorporated has entered a licensing agreement with Broadcom to enhance its edge AI strategy. This partnership aims to improve Internet of Things (IoT) connectivity and wireless solutions, marking a significant step in Synaptics' development efforts.
The agreement comes amid concerns in the U.S. about technology competition, particularly in AI. The government is focused on keeping technology within its borders to maintain dominance, especially against competitors like China.
Recent developments include allegations from OpenAI that competitors are using its work to advance their AI tools. Microsoft is investigating these claims, highlighting ongoing tensions in the AI sector and the impact of U.S. export controls.
Source: https://ca.finance.yahoo.com/news/synaptics-incorporated-syna-accelerates-edge-021625197.html
Trump's Mars mission faces hurdles with earliest launch in 2029
President Trumpβs goal to send astronauts to Mars faces significant challenges. Orbital dynamics indicate that a mission could not occur until at least 2029, with only two launch windows available during his presidency.
SpaceXβs Starship may be the only spacecraft ready for an uncrewed mission in 2026. If successful, astronauts could potentially depart for Mars in late 2028, just before Trumpβs term ends.
Human missions to Mars require advancements in life support, medical care, and other technologies. These developments are crucial for ensuring astronaut health during the long journey and isolation from Earth.
Source: https://www.nytimes.com/interactive/2025/01/30/science/mars-landing-trump.html
BigBear.ai secures contract with U.S. Navy to enhance AI solutions for defense
BigBear.ai Holdings, Inc. has secured a prime contract with the U.S. Navy to provide artificial intelligence solutions. This contract marks a significant expansion of the company's role in national security and defense.
The U.S. government is focused on keeping technology, especially in AI, within its borders. Recent concerns have arisen about competitors, including those in China, using U.S. innovations to advance their own AI capabilities.
Microsoft is investigating potential unauthorized use of OpenAI's data by competitors. This situation highlights ongoing challenges in maintaining U.S. technological dominance amid rising competition in the AI sector.
Source: https://ca.finance.yahoo.com/news/bigbear-ai-holdings-inc-bbai-021554154.html
Nasdaq 100 marks 40 years with focus on cryptocurrency's potential impact
The Nasdaq 100 is marking its 40th anniversary, with discussions about the potential impact of cryptocurrency on future gains. Experts suggest that crypto companies could drive significant growth, similar to how technology stocks have performed.
Bitcoin is currently trading around $104,000, and the crypto ETF market is expanding rapidly. BlackRock's iShares Bitcoin Trust ETF, launched in January 2024, has already gathered over $58 billion in assets.
Nasdaq President Nelson Griggs highlighted the importance of regulatory clarity for the growth of the crypto sector. This clarity could help develop a more structured market around digital currencies.
Elon Musk admits Tesla's Hardware 3 needs upgrade for full self-driving capabilities
Elon Musk recently admitted that Tesla vehicles with Hardware 3 will require an upgrade to support unsupervised self-driving software. This marks a shift from his previous claims that all Tesla cars had the necessary hardware for full autonomy.
Musk's acknowledgment comes after nearly nine years of promises regarding self-driving capabilities. Tesla's Hardware 3, used in cars sold from 2019 to 2023, is now deemed insufficient for the latest software developments.
Tesla has since moved to Hardware 4 and plans to launch a pilot program in Austin this June. Musk stated that 2025 could be a pivotal year for Tesla's self-driving ambitions.
Source: https://techcrunch.com/2025/01/30/elon-musk-reveals-elon-musk-was-wrong-about-full-self-driving/
Hugging Face develops Open-R1 as fully open-source alternative to Deepseek-R1
Hugging Face is developing Open-R1, a fully open-source alternative to the Deepseek-R1 generative AI model. This new model aims to provide complete transparency, unlike Deepseek-R1, which has some closed components.
The Deepseek-R1 model has gained popularity for its unrestricted commercial use. However, parts of it are not fully open-source. Open-R1 seeks to address this limitation.
The goal of Open-R1 is to facilitate the creation of generative AI models without the need to share data with other parties. This could enhance privacy and control for developers.
Rubio defends Trump's Greenland proposal citing security risks from China
U.S. Secretary of State Marco Rubio stated that President Trump's proposal to buy Greenland is serious, not a joke. He highlighted concerns about China potentially establishing military resources on the island, which could threaten U.S. security.
Rubio emphasized the strategic importance of Arctic shipping routes for American energy exports and mentioned Greenland's potential for critical minerals. He also expressed worries about Chinese operations in Greenland similar to those in Panama.
In response, a Chinese embassy spokesman dismissed Rubio's claims as unfounded. Meanwhile, Danish Prime Minister Mette Frederiksen is seeking European support against Trump's Greenland proposal.
AI search engines challenge Googleβs dominance as privacy concerns rise
AI search engines are competing with Google, which still holds about 90% of the market share in 2025. Users like tech columnist Jason Aten are increasingly turning to AI tools like ChatGPT for specific queries, but most still prefer Google for general searches.
Despite the rise of AI competitors, Google's search ad revenue continues to grow. New players like Perplexity are exploring ways to incorporate ads without compromising user experience, focusing on sponsored questions rather than answers.
Concerns about privacy and security are also emerging, particularly with foreign AI chatbots. The U.S. National Security Council is investigating a Chinese AI app, reflecting ongoing scrutiny of data privacy in the tech landscape.
Source: https://www.marketplace.org/2025/01/30/generative-ai-search-engine-artificial-intelligence/
OpenAI offers free access to reasoning model on Copilot in response to Deepseek's rise
OpenAI has made its reasoning model, o1, free for all users of Copilot, following the rise of the Chinese AI app Deepseek. This change allows users to access the "Think Deeper" feature without needing a subscription or specialized hardware.
The "Think Deeper" feature gives the AI more time to process requests, improving its ability to handle complex topics. OpenAI claims o1 can solve 83% of International Mathematics Olympiad problems, compared to just 13% for the non-reasoning model.
This move appears to be a response to Deepseek's recent popularity and claims of matching o1's performance. Deepseek is currently facing privacy issues, which may influence users' choices.
Source: https://lifehacker.com/tech/openai-think-deeper-model-free-copilot
Solar energy set to lead U.S. power growth in 2025 as natural gas output declines
Solar energy is set to be the fastest-growing power source in the U.S. in 2025, according to the Energy Information Administration (EIA). Solar capacity nearly doubled from 2023 to 2024, with an expected addition of 26 gigawatts this year.
As solar generation increases, natural gas output is projected to decline by 3% in 2025 and 1% in 2026. This shift marks a significant change in the energy mix, with renewables surpassing coal for the first time in 2024.
Despite President Trump's focus on fossil fuels, the solar industry remains optimistic. The Solar Energy Industries Association aims to expand energy storage by 700 gigawatts by 2030, supported by easing trade restrictions and the Inflation Reduction Act.
Blackstone maintains confidence in A.I. data centers despite DeepSeek insights
Blackstone remains confident in the future of data centers for A.I. despite new insights from Chinese start-up DeepSeek. The firm believes that demand for physical infrastructure will continue, even as the nature of that demand may evolve.
DeepSeek challenges the idea that A.I. systems need extensive power and investment. However, Blackstone's president, Jonathan Gray, emphasized the ongoing importance of data centers during a recent earnings call.
Blackstone has actively expanded its data center investments, acquiring QTS for $10 billion in 2021 and leading a $16 billion deal for AirTrunk last year.
Source: https://www.nytimes.com/2025/01/30/business/blackstone-ai-quarterly-report-deepseek.html
Elon Musk announces driverless ride-hailing service launch in Austin by June 2025
Tesla CEO Elon Musk announced a paid ride-hailing service using driverless vehicles will launch in Austin by June 2025. This service aims to generate interest amid Tesla's flat automotive sales, though details about its operational limits remain unclear.
In related news, GM plans to save up to $1 billion by ending its Cruise robotaxi program. Cruise's CEO mentioned that retention offers have been extended to key engineers as the company awaits board approval for future plans.
Boom Supersonic successfully tested its XB-1 plane, achieving supersonic flight for about four minutes over California. This marks a significant step forward for the startup in developing faster air travel.
Binarly launches updated platform to support post-quantum compliance readiness
Binarly has launched an updated version of its Transparency Platform, v2.7, which includes new features for Post-Quantum Cryptography (PQC) compliance. This update helps organizations prepare for upcoming NIST standards related to quantum computing.
The platform now offers tools for discovering and assessing cryptographic assets, allowing companies to identify outdated or insecure algorithms. This aims to streamline the transition to PQC standards and improve regulatory compliance.
With these enhancements, Binarly's platform also supports better software supply chain transparency and vulnerability management. The company focuses on securing firmware and software supply chains for various enterprises.
Scientists create gene-edited mouse with two male parents in breakthrough study
Scientists have successfully created a gene-edited mouse with two male parents that has survived to adulthood. This achievement marks a significant advancement in genetics, as previous attempts to produce bi-paternal mice had failed.
Researchers from the Chinese Academy of Sciences and Sun Yat-sen University modified 20 key genes to overcome barriers to unisexual reproduction. This allowed some embryos to develop into live mice, improving the stability of pluripotent stem cells.
Despite this progress, challenges remain. Only a small percentage of embryos developed into healthy mice, and those that did faced various health issues. Scientists are now looking to apply these techniques to larger animals, like monkeys, for further research.
Source: https://bgr.com/science/scientists-used-gene-editing-to-create-a-mouse-with-two-male-parents/
U.S. government files lawsuit to block Hewlett Packard Enterprise's acquisition of Juniper Networks
The U.S. Justice Department has filed a lawsuit to block Hewlett Packard Enterprise's $14 billion acquisition of Juniper Networks. This marks the first antitrust action during President Trump's second term.
The government argues that the deal could harm competition in the technology market, ending a rivalry that has led to lower prices for major buyers.
This move contrasts with expectations of a more lenient approach to corporate mergers under the Trump administration, suggesting a possible continuity in antitrust enforcement between the current and previous administrations.
Source: https://www.nytimes.com/2025/01/30/business/dealbook/hpe-juniper-deal-blocked.html
CATL highlights rise of affordable Chinese electric intelligent vehicles in global market
Chinese electric vehicles are now being referred to as "EIVs," or Electric Intelligent Vehicles, according to CATL's co-chairman. This new term highlights their affordability and advanced technology compared to traditional gas-powered cars.
In 2024, global EV sales reached 17.1 million, with Chinese vehicles making up over 64% of that total. China experienced a 40% growth in EV sales, while European sales fell by 3% after Germany ended subsidies.
CATL and competitors like BYD are investing heavily in advanced technologies, including AI and driver assistance systems. CATL recently introduced its Bedrock Chassis, claiming it will set a new standard for intelligent vehicle design.
Source: https://electrek.co/2025/01/30/catl-says-chinese-eivs-surging-as-affordable-smart-ev-options/
Trump administration shifts cryptocurrency regulation with new guidelines and agency oversight
The Trump administration is shifting its approach to cryptocurrency regulation, aiming for clearer guidelines after the departure of SEC Chair Gary Gensler. His strict enforcement policies faced criticism for lacking clarity, leaving the industry uncertain.
Trump's executive order promotes blockchain and stablecoins, reversing previous SEC guidance that complicated banks' involvement with crypto. The SEC's new leadership under Paul Atkins is expected to develop a framework for digital assets, potentially easing regulatory burdens.
Multiple agencies, including the SEC, CFTC, and FinCEN, will oversee crypto regulations. The focus will be on defining digital assets and establishing guidelines for transactions, while state-level regulations will also play a role in shaping the industry.
Chevron and GE Vernova team up to build natural gas power plants for U.S. data centers
Chevron, Engine No. 1, and GE Vernova are partnering to build natural gas power plants in the U.S. These plants will be located near data centers to support rising electricity needs driven by AI development.
The project aims to deliver up to 4 gigawatts of power, helping to alleviate pressure on the existing energy grid. Completion is expected by 2027, with plans for future expansions.
This collaboration comes amid concerns about AI competition, particularly following the launch of a new AI chatbot by Chinese startup DeepSeek, which has affected tech and energy stocks.