📈 Markets Defy Tariffs

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Good morning & Happy Monday!

U.S. equity futures are rebounding as President Trump's announcement of a 25% tariff on steel and aluminum imports shakes up the market. Also, President Trump suggests that the U.S. may have less debt than previously thought due to potential fraud. Meanwhile, in Japan, Metaplanet Inc.'s strategic move into Bitcoin has led to a staggering 4,800% increase in their stock value over the past year.

Grab your Flat White and let's get into it! ☕️👇️

Markets

📈 US Futures Rise as Trump announces Steel Tariffs
U.S. equity futures climbed Monday, recovering from Friday’s losses sparked by President Donald Trump’s plan to impose a 25% tariff on steel and aluminum imports. S&P 500 and Nasdaq 100 futures rose at least 0.3%, while steelmakers like U.S. Steel and Alcoa surged 15% and 5% in premarket trading. European markets edged higher despite mining stock declines, while Asian shares posted their steepest drop in a week. Trump’s tariff plans, set to apply to all countries, added to market uncertainty ahead of Fed Chair Jerome Powell’s congressional testimony.

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⁉️ Trump says US may have less debt than thought because of fraud
President Donald Trump suggested Sunday that the U.S. Treasury’s $36 trillion debt load might be overstated due to possible fraud. Speaking aboard Air Force One, Trump said officials reviewing payment records for wasteful spending are now examining Treasury debt payments. “There could be a problem... maybe we have less debt than we thought,” he remarked, hinting at potential fraud. It remains unclear whether he referred to debt service or other Treasury payments.

🍙 Japan’s Microstrategy is up 4,800%
President Donald Trump’s pro-crypto stance is driving a Bitcoin boom in Japan, where one company, Metaplanet Inc., has seen its shares skyrocket 4,800% in the past year. The hotelier's pivot to stockpiling Bitcoin has delivered massive returns, making it Japan's top-performing stock and a global standout. Bitcoin hit a record $109,241 on Jan. 20, during Trump’s second-term inauguration, though it has since pulled back amid trade policy uncertainties.

🛢️ BP shares surge on report Elliott had built a stake in the company
Activist investor Elliott Investment Management has taken a stake in BP, pushing for changes to boost shareholder value, according to reports. While the size of the stake remains undisclosed, Bloomberg called it “significant,” and BP shares jumped over 7% in Monday’s London trading. Elliott views BP as undervalued, with its £69 billion market cap trailing far behind Shell’s £161 billion. BP has been streamlining, recently announcing plans to sell a German refinery to cut costs by $2 billion by 2026.

Quick Links

• Nippon Steel Slumps After Trump Suggests US Steel Investment.

• Who actually owns US debt?

• Private Equity and 401(k)s Aren’t a Great Match.

• How to Invest for a Post-AGI World?

• Vanguard’s S&P 500 Fund Is About to Become World’s Largest ETF.

• Trump pauses tariffs on small packages from China.

• OpenAI CEO Sam Altman admits that AI’s benefits may not be widely distributed.

• TSMC tempers outlook on quake loss as AI concerns persist.

• Should You Invest in a 401(k) Without Matching?

• I’ve Held “Too Much” Cash.

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