Anti-Clickbait News Summaries for January 20, 2025
Donald Trump begins second term as president with $4 trillion investment forecast
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The Markets:
Futures Highlights
Energy futures pulled back slightly while equity indices ended higher, led by small caps. Gold also ticked lower.
🔴 Crude Oil: 76.43 (−0.96 | −1.24%)
🔴 Natural Gas: 3.8520 (−0.0960 | −2.43%)
🔴 Gold: 2725.80 (−22.90 | −0.83%)
🟢 Dow: 43862.00 (+167.00 | +0.38%)
🟢 S&P 500: 6055.25 (+21.75 | +0.36%)
🟢 Nasdaq 100: 21683.00 (+88.25 | +0.41%)
🟢 Russell 2000: 2315.40 (+28.50 | +1.25%)
Forex & Bonds
The euro and pound strengthened against the dollar, while Treasury yields inched upward. Bitcoin extended its rally above the six-figure mark.
🟢 EUR/USD: 1.0389 (+0.0122 | +1.18%)
🔴 USD/JPY: 155.82 (−0.44 | −0.28%)
🟢 GBP/USD: 1.2286 (+0.0124 | +1.02%)
🟢 BTC/USD: 103682.00 (+1528.30 | +1.50%)
🟢 5-Year Treasury: 4.414 (+0.018 | +0.41%)
🟢 10-Year Treasury: 4.609 (+0.003 | +0.07%)
🟢 30-Year Treasury: 4.845 (+0.001 | +0.02%)
Major News
Semiconductor stocks outperformed, with Intel leading gains. Novo Nordisk was the biggest loser of the day.
🟢 INTC: +9.25%
🟢 SLB: +6.06%
🟢 COIN: +4.92%
🟢 HOOD: +4.49%
🟢 NVDA: +3.10%
🟢 TSLA: +3.06%
🟢 JPM: +1.92%
🟢 NFLX: +1.87%
🟢 GOOG: +1.62%
🟢 GOOGL: +1.60%
🟢 SCHW: +1.19%
🟢 MRNA: +0.89%
🟢 AAPL: +0.75%
🟢 WMT: +0.70%
🟢 META: +0.24%
🔴 NVO: −5.27%
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The Daily News Podcast
Events Affecting The Markets Today
The News Summaries
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Today:
Today, Monday, January 20, 2025, is significant for the U.S. stock market due to the following events:
1. Martin Luther King Jr. Day: This federal holiday honors the civil rights leader Martin Luther King Jr. As a result, U.S. stock exchanges, including the New York Stock Exchange and NASDAQ, are closed today. MarketWatch
2. Presidential Inauguration: Donald Trump is being inaugurated today as the 47th President of the United States, marking his second, non-consecutive term. This event is historically significant and may influence market sentiment. Financial Times
3. Anticipated Executive Actions: President Trump is expected to sign several executive orders immediately after his inauguration, potentially affecting taxes, tariffs, and immigration policies. These actions could have implications for various market sectors. Reuters
4. Global Market Movements: In anticipation of the U.S. inauguration, Asian and European markets have shown positive movements. Asian shares rose, with Japan's Nikkei 225 increasing by 1.2%, and European benchmarks saw modest gains. Additionally, Bitcoin reached a record high above $109,000. AP News
5. Upcoming Corporate Earnings: While no earnings reports are scheduled for today due to the market holiday, the week ahead includes significant fourth-quarter earnings releases from major companies such as Netflix, United Airlines, Johnson & Johnson, Procter & Gamble, and American Express. These reports will be closely watched by investors. Barron's
In summary, while the U.S. stock market is closed today in observance of Martin Luther King Jr. Day, the presidential inauguration and anticipated executive actions are key events that may influence market dynamics in the coming days.
The News Summaries:
US officials to receive briefing on AI super agents ahead of Trump inauguration
U.S. government officials will receive a private briefing on advancements in artificial intelligence, specifically "super agents," from OpenAI's Sam Altman. This meeting is scheduled for January 30, coinciding with Donald Trump’s inauguration.
The briefing will cover AI developments, including chatbots capable of complex tasks like programming and long-term planning. OpenAI aims to demonstrate how these technologies can enhance productivity and economic growth.
Altman emphasized that while significant progress has been made, the company has not yet developed artificial general intelligence. He urged caution regarding expectations for immediate breakthroughs.
Source: https://ca.finance.yahoo.com/news/trump-officials-receive-secret-briefing-152906733.html
Trump plans to release records on Kennedy and King assassinations for transparency
Donald Trump plans to release records on the assassinations of John F. Kennedy, Robert F. Kennedy, and Martin Luther King Jr. after his inauguration. He aims to improve government transparency and restore public confidence.
Trump stated that this release is part of a broader effort to address the over-classification of government documents. He mentioned that other documents of public interest would also be declassified.
The assassinations have long been surrounded by controversy and conspiracy theories. Each event is seen as a significant moment in American history during the 1960s.
Source: https://www.nytimes.com/2025/01/20/us/politics/trump-kennedy-mlk-assassinations-records-release.html
Biden leaves office after Equal Rights Amendment push as Trump prepares for inauguration
President Biden is leaving office today after attempting to affirm the Equal Rights Amendment, which aims to guarantee equal rights regardless of sex. This amendment has faced challenges since its introduction a century ago and has not been fully ratified.
In a preemptive move, Biden pardoned Anthony Fauci, who led the U.S. COVID response, amid concerns about potential actions from the incoming administration. Donald Trump is set to be inaugurated today and may issue executive orders on immigration and other policies.
A ceasefire between Israel and Hamas is underway, with Israel releasing 90 Palestinian prisoners and Hamas returning three Israeli hostages. This is part of a broader agreement that could see more hostages exchanged in the coming weeks.
Source: https://reason.com/2025/01/20/do-you-feel-equal-yet/
Trump's proposed tariffs could raise prices on everyday goods and major purchases
President-Elect Donald Trump plans to raise tariffs on all imported goods, which could lead to higher prices for U.S. consumers. A 25% tariff on goods from Canada and Mexico and a 10% increase on Chinese imports are expected.
Imported items like food, electronics, clothing, and vehicles may see significant price hikes. Companies such as Walmart and AutoZone have indicated they will pass these costs onto consumers.
Tariffs on raw materials could also raise construction costs, impacting housing markets. Overall, the proposed tariffs could affect a wide range of products and services in the U.S. economy.
Source: https://www.courant.com/2025/01/20/what-could-get-more-expensive-under-trumps-tariffs/
Google launches Deep Research AI tool to enhance online research experience
Google has introduced Deep Research, a new AI tool designed to improve online research. Unlike traditional search engines, Deep Research allows users to specify sources and outlines, providing more reliable and relevant information without the clutter of ads or irrelevant results.
This tool streamlines the research process by compiling information into coherent articles, saving users time and effort. It is particularly beneficial for professionals like journalists and researchers who need credible sources for their work.
Deep Research is part of Google's Gemini family and is available through a subscription that also includes other Google services. Users find it offers better value compared to similar AI products from competitors.
Source: https://www.digitaltrends.com/computing/google-gemini-deep-research-ai-tool-internet-search/
Tech leaders align with Trump as regulation concerns grow
Tech executives, including Mark Zuckerberg and Elon Musk, are aligning closely with President Donald Trump as he begins his new term. This shift suggests a potential for increased influence over tech regulation, raising concerns about corruption and favoritism.
The crypto industry is reportedly investing heavily to gain favorable treatment from the government. An executive order may prioritize crypto, potentially leading to less regulation and increased risks for consumers.
Additionally, tech companies are seeking to expand their roles in military contracts, with significant investments in defense technology. This could lead to a shift in government spending away from traditional contractors, benefiting companies like SpaceX and Anduril.
Source: https://www.theverge.com/2025/1/20/24346317/trump-gangster-tech-regulation-corruption-grift
Trump's planned tariffs threaten Canadian mining and manufacturing sectors
Donald Trump is set to take office and plans to impose 25% tariffs on imports from Canada and Mexico. This poses a significant threat to Canadian companies, as 70% of their exports go to the U.S.
The Desjardins Group report highlights that sectors like primary metals, food and beverage, and chemicals are most vulnerable to these tariffs. In contrast, the auto and aerospace industries may be exempt due to their importance to U.S. supply.
Certain Canadian products, such as fertilizers and critical minerals, are likely to be exempt as the U.S. relies heavily on Canadian imports. However, other sectors may face economic slowdowns due to the tariffs' broader impacts.
Source: https://financialpost.com/news/who-donald-trump-tariffs-would-hurt-most
Financial experts recommend money moves for upper-middle class on Trump's inauguration day
Trump's inauguration day has arrived, prompting financial experts to suggest money moves for the upper-middle class. They recommend diversifying assets outside the U.S. financial systems to mitigate potential economic volatility.
Experts advise establishing accounts in stable foreign banks to protect funds from domestic instability. This strategy aims to ensure asset security amid uncertainties in U.S. policies and banking.
Additionally, estate planning is highlighted as a key focus. With potential tax cuts set to expire in 2025, individuals are encouraged to utilize the current high estate tax exemption to transfer wealth to heirs effectively.
Source: https://ca.finance.yahoo.com/news/trump-economy-begins-3-money-140107977.html
Mike Johnson calls mass deportations a small investment for national safety
House Speaker Mike Johnson stated that President-elect Donald Trump's mass deportation plan is a "small investment" for national safety. He emphasized the need to address illegal immigration and crime, rejecting claims that the plan would cost trillions.
Trump's plan aims to deport millions of undocumented immigrants, focusing on those with criminal records. Critics warn of significant economic impacts, including potential labor shortages in industries like meat production, and high costs associated with the deportation efforts.
As Trump prepares for his inauguration, he plans to implement mass deportations and other immigration policies immediately. Major cities, including New York and Los Angeles, are expected to see immigration raids.
Source: https://www.newsweek.com/immigration-mass-deportations-mike-johnson-small-investment-2017587
WeRide executive highlights China's advantage in robotaxi development over U.S. firms
Chinese robotaxi companies, like WeRide, are gaining an advantage over U.S. firms due to China's booming electric vehicle (EV) industry. WeRide's CFO highlighted access to affordable technology and a strong local supply chain as key benefits for developing autonomous vehicles.
China's EV market has rapidly expanded, with local automakers offering low-cost electric cars packed with advanced technology. In contrast, U.S. companies face challenges, including General Motors' recent decision to shut down its robotaxi division, Cruise.
WeRide has been testing autonomous vehicles in California but does not plan to offer public services in the U.S. due to new regulations. The company is focused on research and development while monitoring U.S. policies closely.
Source: https://www.businessinsider.com/china-crucial-advantage-in-the-robotaxi-race-weride-exec-says-2025-1
Investors brace for uncertainty as Trump prepares for second term
Donald Trump’s second term presents uncertainty for investors, as they weigh the potential for deregulation and tax cuts against possible protectionist policies that could raise costs and inflation. His approach may blend various personas, complicating economic predictions.
Trump inherits a strong economy with low inflation but faces challenges like a high national debt and global conflicts. He plans to modify Biden's policies on several issues, though he may encounter resistance in Congress and legal hurdles.
Elon Musk, now a close advisor, will influence Trump's agenda through a new efficiency commission aimed at government reform. This initiative may face significant opposition from established bureaucratic structures.
Source: https://ca.finance.yahoo.com/news/the-yahoo-finance-guide-to-trump-20-110012241.html
UMass Amherst and Ernest Pharmaceuticals to launch cancer treatment trials in 2027
Researchers from UMass Amherst and Ernest Pharmaceuticals plan to start clinical trials for a new cancer treatment in 2027. The treatment uses non-toxic bacteria to deliver drugs directly into tumors, aiming to reduce side effects compared to traditional chemotherapy.
The BacID system has shown promise in pre-clinical trials. It uses genetically engineered bacteria that target cancer cells and release therapeutic drugs upon activation by aspirin. This method could allow for higher drug concentrations in tumors while protecting healthy tissues.
The therapy has been in development for over a decade and is designed to be safer than previous methods. In animal studies, the bacteria effectively targeted tumors without affecting healthy cells, suggesting potential for treating high-mortality cancers like liver and ovarian cancer.
Microsoft tests new AI search feature for Windows 11 to compete with Google and OpenAI
Microsoft is testing a new AI search feature for Windows 11, aiming to compete with Google and OpenAI. This feature uses semantic indexing to improve file searches and is currently available only to users with the latest Windows 11 laptops.
The AI search requires Copilot Plus PCs, limiting access for many users with older devices. Unlike the previous Recall feature, this new search tool addresses privacy concerns and supports multiple languages and file types.
Additional updates for Copilot Plus include a "Refine" writing tool and performance enhancements. These developments mark a shift in Microsoft's approach to AI search, differentiating it from existing models by Google and OpenAI.
Trump's inauguration signals new era for cryptocurrency in the US
Donald Trump will be inaugurated as President of the United States on Monday, with cryptocurrency playing a notable role in his political comeback. Bitcoin surged from $75,000 to a record $108,135 since his election in November 2024.
Trump has made several promises to the crypto community, including the creation of a national Bitcoin reserve. His initial actions regarding this proposal will be closely watched, as they could impact Bitcoin's market stability.
He also aims to position the U.S. as a global leader in crypto mining and has expressed intentions to commute the sentence of Ross Ulbricht, founder of the Silk Road. The crypto community is actively advocating for Ulbricht's release following Trump's victory.
Source: https://qz.com/donald-trump-inauguration-bitcoin-cryptocurrency-1851736370
Nvidia announces advancements in humanoid robots at CES 2025
Nvidia CEO Jensen Huang announced at CES 2025 that humanoid robots will be more advanced and available sooner than expected. The global humanoid robot market, valued at $1 billion to $2.5 billion in 2024, is projected to grow to $38 billion by 2035.
Nvidia is increasing its involvement in humanoid robotics, launching Project GR00T, which enables robots to understand language and mimic human movements. The company is providing technology to major players in the humanoid robot industry.
Market forecasts have significantly improved, with estimates suggesting the humanoid robot market could reach $59.2 billion by 2029. Nvidia's technology is central to the development of these robots, positioning the company as a key player in this emerging market.
Donald Trump begins second term as president with $4 trillion investment forecast
Donald Trump was inaugurated today, marking the start of his second nonconsecutive term as president. His previous presidency saw significant stock market gains, and analysts expect a similar trend as corporate investments are anticipated to rise.
While artificial intelligence is expected to grow, a major focus will be on share repurchase activity. Trump's tax policies, particularly the corporate tax rate reduction, are likely to encourage companies to buy back their stock, potentially exceeding $4 trillion during his term.
S&P 500 companies have already engaged in substantial buybacks, totaling over $7 trillion in the past decade. Trump's presidency is expected to further boost this trend, benefiting major corporations and impacting their earnings per share positively.
EU braces for economic shifts as Trump takes office
Europe is preparing for economic challenges as Donald Trump begins his presidency. His proposed tariffs, particularly on cars, could significantly impact the EU, especially Germany's automotive industry, which is already facing difficulties.
Trump's administration may push for increased US oil and gas imports to Europe, following the halt of Russian gas supplies. This could strengthen the US's position in global energy markets and influence pricing.
The EU faces potential inflation due to a trade war and rising import costs. A weaker euro could make imports more expensive, while higher energy prices may further strain the economy.
Markets focus on Trump's inauguration and key economic data this week
Markets are focused on Donald Trump's inauguration this week, with investors watching for his policy announcements on tax cuts and tariffs. These actions could influence market trends, following a recent positive sentiment driven by cooling inflation and strong data from China.
Key economic data will be released, including manufacturing and services PMIs from Germany and France, which remain in contraction. The UK also reports declining manufacturing activity, while services show continued growth. The US earnings season begins with Netflix reporting strong results.
The Bank of Japan is expected to raise interest rates, while China's central bank is likely to keep rates unchanged. China's economy grew by 5% in 2024, supported by stimulus measures. These developments may impact global market trends.
Oxfam reports surge in billionaire wealth as first trillionaires loom
Oxfam's annual report reveals that billionaire wealth increased from $13 trillion to $15 trillion in 2024, marking a significant rise. The report highlights that 60% of this wealth comes from inheritance and connections, rather than individual achievement.
The richest 1% now own nearly 45% of global wealth, while 44% of people live below the World Bank poverty line. Oxfam predicts the emergence of at least five trillionaires within a decade, with Elon Musk potentially leading this trend.
Oxfam calls for changes in global economic rules to address wealth inequality. They urge governments to ensure that the top 10% do not earn more than the bottom 40% and advocate for stricter regulations on monopolies and fair tax policies.
Investors prepare for Trump's second term as markets show signs of recovery
Investors are preparing for Donald Trump's second term as U.S. President, with the S&P 500 recovering some losses from the past weeks. Markets ended the first week of 2025 on a positive note, with gains in both U.S. and Asian markets.
China is prioritizing the stability of its currency, the yuan, which has weakened over 3% against the U.S. dollar. The country kept its benchmark lending rates unchanged, indicating a focus on currency stability over economic growth.
Chinese investments in the U.S. have significantly declined, dropping from nearly $47 billion in 2017 to just $1.66 billion in 2023. Analysts expect this trend to continue during Trump's presidency due to differing ideologies.
Source: https://www.cnbc.com/2025/01/20/cnbc-daily-open-investors-are-gearing-up-for-trump-2point0.html
Trump returns to White House as U.S. president, plans swift executive actions
Donald Trump is set to be sworn in as U.S. president on January 20, marking his return to the White House after a tumultuous previous term. His inauguration will take place indoors at the U.S. Capitol due to extreme cold, a first in 40 years.
Trump plans to sign numerous executive orders on his first day, including strict immigration measures and potential rollbacks of environmental regulations. He aims to pardon many individuals charged in connection with the January 6 attack and has promised to reshape the federal government.
This inauguration follows a campaign characterized by political violence and controversy. Trump, who won the popular vote by over 2 million, will lead with Republican majorities in Congress and has appointed loyalists to key positions, diverging from his previous approach.
Growing global electricity demand drives renewed interest in coal
A recent report highlights the growing global demand for coal, which reached a peak in 2024. Despite efforts to reduce coal use, countries like China and India are increasing their coal consumption significantly, driven by rising electricity needs.
In the U.S., coal production has faced challenges due to government policies aimed at reducing its use. However, surging electricity demand, particularly from industries and data centers, is reviving interest in coal as a key energy source.
Experts suggest that the U.S. should focus on developing advanced coal technologies to improve efficiency and reduce emissions. This approach could help address the anticipated increase in power demand and potential blackouts in the coming years.
Source: https://www.bostonherald.com/2025/01/20/peng-growing-electricity-demand-calls-for-coal/
Donald Trump sworn in for second term at age 78 tying record for oldest president
Donald Trump was sworn in for his second term at age 78, tying Joe Biden as the oldest person to assume the presidency. Biden, who is 82, became the oldest president when he took office in 2021.
Trump is the first president to serve two non-consecutive terms since Grover Cleveland. He is also the first U.S. president with a felony conviction, having been found guilty of falsifying business records.
JD Vance, at 40, will become the third youngest vice president and the first with facial hair in nearly a century.
Source: https://www.yahoo.com/news/donald-trump-oldest-president-sworn-050051314.html
Chinese investments in the U.S. drop sharply as analysts predict continued decline under Trump administration
Chinese investments in the U.S. have sharply declined since Donald Trump's first term, dropping from $46.86 billion in 2017 to just $860 million in the first half of 2024. Analysts expect this trend to continue under Trump's upcoming administration.
Regulatory changes in both the U.S. and China have contributed to this decline. Chinese companies are now focusing on smaller joint ventures and greenfield investments rather than large acquisitions, as seen with EVE Energy's partnership with Cummins.
U.S. states are increasingly cautious about Chinese investments, with over 20 states implementing new restrictions. Trump's administration may use tariffs to influence Chinese investment, but significant changes are unlikely to occur quickly.
Source: https://www.cnbc.com/2025/01/20/chinese-investment-in-the-us-isnt-likely-to-pick-up-under-trump.html
Nvidia CEO highlights growth potential in autonomous vehicles and AI chips
Nvidia CEO Jensen Huang announced significant growth potential for the company, particularly in the autonomous vehicle sector. Major car brands are adopting Nvidia's Drive platform, which includes advanced chips for self-driving technology, potentially leading to $5 billion in automotive revenue by fiscal 2026.
Currently, Nvidia's data center segment generates 88% of its revenue, with new Blackwell GPUs expected to enhance AI capabilities significantly. Demand for these chips is high, and sales are projected to grow rapidly, outpacing previous generations.
Nvidia's stock has increased by 830% since early 2023, raising its market value to $3.3 trillion. Despite this surge, analysts suggest the stock may still be undervalued, with potential for further growth amid emerging competition in the chip market.