📈 Tariff's Hidden Cost

Plus: Trump's Intel Boost

Author

Journals GG
February 12, 2025

Good morning!

In today’s newsletter, we dive into the market’s cautious pause ahead of a crucial inflation report, SoftBank’s unexpected multi-billion-dollar loss, and Intel’s surge after a push for U.S.-made AI chips.

Also, today’s edition is brought to you by BOXABL - who just announced their brand new $20,000 house!

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

BOXABL Announces New $20,000 House

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And they’re just getting started. BOXABL just announced a new $20,000 house called Baby Box. It’s a turnkey home designed for affordability, flexibility, and versatility.

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**Disclosure: This is a paid advertisement for Boxabl’s Regulation A offering. Please read the offering circular here. This is a message from Boxabl. Reservations represents a non-binding indication of interest to purchase a Casita. A reservation does not require purchase of a Casita and there is no assurance of how many will result in actual purchases. 

Markets

🛑 futures stall as key inflation report looms
US stock futures remain steady as investors brace for January's inflation report, a key indicator for the Federal Reserve's next moves on interest rates. The Consumer Price Index (CPI), set to drop Wednesday at 8:30 a.m. ET, is expected to show a 0.3% monthly rise, slightly cooling from December's 0.4% gain. Excluding food and gas, prices are forecast to have climbed 3.1% year-over-year.

📉 SoftBank posts surprise loss of $2.4 billion
SoftBank Group posted a surprise quarterly loss as its Vision Funds slid into the red, missing revenue estimates. The Vision Fund segment reported a 309.93 billion yen loss, driven by drops in Coupang’s share price and a 3.3% dip in private company investments. Vision Fund 2’s fair value fell 3.7%, with losses from Ola Electric and AutoStore offsetting gains in Swiggy’s stock after its November 2024 IPO.

🇺🇸 Intel Stock Jumps as VP Vance Says AI Chips Will Be Made in US
Intel shares surged nearly 7% Tuesday after VP JD Vance highlighted the Trump administration’s push for U.S.-manufactured AI chips. Speaking at the AI Action Summit in Paris, Vance emphasized prioritizing American-made chips to secure the country’s AI edge. The policy could boost Intel’s struggling foundry business, which lost $13.4 billion in 2024 but remains critical to domestic chip production. Despite the rally, Intel shares are still down over 50% in the past year.

🚧 How Trump's Metal Tariffs Could Eliminate 75x More US Jobs Than They Save
President Donald Trump imposed a 25% tariff on steel and aluminum imports Monday, reviving a strategy last used in 2018. While the previous tariffs bolstered jobs for metal producers, they strained manufacturers relying on metal for production. Economists predict the new tariffs could have a similar mixed impact on the labor market.

💰️ Does Warren Buffett Know Something That Wall Street Doesn't?
Berkshire Hathaway has been steadily increasing its stake in Sirius XM (SIRI), a stock largely ignored by the market. Trading at just 8.5 times forward earnings, Sirius stands out as a legal monopoly, holding the only satellite-radio license from the FCC. In 2024, Berkshire ramped up its position, recently adding 2.3 million shares for $54 million, bringing its stake to 35%. Sirius now represents 1% of Berkshire’s $300 billion portfolio, ranking as its 15th-largest holding.

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