Your top stories today:

1. Trump taps Elon Musk’s jet-setting pal to buy Greenland.

2. U.S mortgage rates breach 7%.

3. China hits 5% GDP target, but tariffs threaten growth.

4. ByteDance calling U.S. bluff on TikTok ban.

5. Palantir looking to invest in Shield AI.

6. Banks hand $100 billion to shareholders.

Market Pulse

🗓️ Economic Calendar

🔥 Top Stories

1. Trump taps Elon Musk’s jet-setting pal to buy Greenland ✈️

⏳️ The deets in 30 seconds:

• Trump has chosen Ken Howery as ambassador to Denmark.

  • He’s a PayPal Mafia member and Elon Musk’s confidant.

  • Served as Trump’s ambassador to Sweden for 16 months.

• Howery’s primary task? Brokering the U.S. purchase of Greenland, an autonomous Danish territory.

• Howery is a close ally of Musk and a key figure in the Silicon Valley GOP donor circuit.

• Critics question if Howery’s private-sector expertise aligns with the geopolitical complexities of Arctic diplomacy.

  • Denmark and Greenland’s leaders have repeatedly rejected any sale.

💡 How it benefits the US:

• No immediate changes for Greenland or Denmark; leaders have stated the island isn’t for sale.

• Greenland’s untapped natural resources, including rare earth minerals, remain a strategic focus for superpowers.

• U.S. may strengthen its Arctic military presence regardless of the purchase.

• Taxpayer money could fund future American initiatives in Greenland, impacting federal budgets.

• Political polarization intensifies as Silicon Valley’s GOP donors align with Trump policies.

🔮 Industry prediction:

Silicon Valley’s tech titans are pivoting from innovation to geopolitics—think of it as PayPal meets Game of Risk. 

Key Players:

• 🎯 Leading: U.S. Arctic initiatives, Denmark’s diplomacy, Silicon Valley GOP.

• ⚡️ Making Moves: Rare earth miners, Arctic defense contractors.

• 👥 Worth Watching: China and Russia’s Arctic strategies.

Timeline:

• Q1 2025: Arctic military discussions heat up.

• Q2-Q3 2025: Greenland resource partnerships explored.

• 2026+: Long-term Arctic dominance becomes key in U.S. foreign policy.

⚡️ The bottom line: 

Trump’s Greenland ambitions put Howery on the world stage, mixing Silicon Valley party vibes with global geopolitics—a cocktail as unexpected as Arctic margaritas.

2. U.S mortgage rates breach 7% 🏠

⏳️ The deets in 30 seconds:

• 30-year fixed mortgage rates hit 7.04%, the first time since May 2024.

• High rates and costs are fueling the worst home sales slump since 1995.

• 10-year Treasury yields and inflation are driving mortgage rate volatility.

• Temporary rate dips in 2024 sparked fleeting optimism, but rates bounced back.

• Spring 2025 home-buying season faces grim prospects due to rate hikes.

  • Surveys show 70% of buyers won’t accept rates above 5.49%.

💡 How it impacts you:

• Higher rates mean more expensive mortgages – expect to pay hundreds of thousands more over 30 years.

• First-time buyers face tougher affordability hurdles, delaying homeownership dreams.

• Sellers with older low-rate mortgages are reluctant to sell, limiting supply.

• Fewer home sales can slow renovations and real-estate services, hitting related industries.

🔮 Industry prediction:

Mortgage volatility will persist as inflation and Treasury yields duel, keeping rates around 7% or higher through spring, dimming housing market recovery hopes.

Key Players:

• 💡 Leading: Freddie Mac, Mortgage Bankers Association

• 🔄 Following: Homebuilders, Insurance firms

• 🔬 Waiting: Potential buyers, sidelined sellers

Timeline:

• Near-term: Spring 2025 sees sluggish sales.

• Mid-term: Inventory climbs but prices remain sticky.

• Long-term: Mortgage rates depend on inflation trends and fiscal policy shifts.

⚡ The bottom line:

Mortgage rates breach 7%, acting like a stubborn Netflix buffer wheel for home buyers while inflation and bond yields steer the housing market’s unpredictable ride.

3. China hits 5% GDP target, but tariffs threaten growth 🃈

⏳️ The deets in 30 seconds:

• China’s GDP rose 5% in 2024, surpassing the 4.9% forecast, aided by late-year stimulus and export surges.

  • However, citizens doubt these claims and feel they’re in a recession.

• Industrial production jumped 6.2% in December, despite persistent deflation.

• Retail sales rose 3.8% in Q4, thanks to subsidies for appliances, cars, and equipment.

• Property investment plummeted 10.6% in 2024, marking the worst contraction since 1987.

• The urban jobless rate edged up to 5.1% in December from 5% in November.

• China faces headwinds as Trump threatens tariffs up to 60%, endangering its export-driven growth.

💡 How it impacts you:

• Subsidy-driven retail sales growth may spur more affordable home goods and electronics.

• Potential tariffs on Chinese goods could increase prices for US consumers and disrupt global supply chains.

• Economic slowdown in China could affect demand for global commodities, impacting prices for oil and metals.

• Job market strain could mean fewer opportunities for multinational corporations operating in China.

• Rising yuan strength may impact currency exchange rates and travel costs for global tourists.

🔮 Industry prediction:

China’s economy may shift gears, prioritizing domestic consumption as external pressures like tariffs tighten—think of it as switching from a turbocharged export engine to a hybrid domestic-demand model.

Key Players:

• 📢 Leading: Major exporters (Huawei, Alibaba, Tencent)

• ⚡ Following: Global commodity producers

• 🔎 Watching: Consumer electronics firms reliant on Chinese production

Timeline:

• Q1: Tariff uncertainty hits export orders.

• Mid-2024: Subsidies boost domestic demand.

• Year-end: Trade policy reshapes global supply chains.

⚡ The bottom line:

China’s 5% GDP growth is the turbo boost, but Trump’s tariff threats are the potholes ahead for the world’s factory floor.

4. ByteDance calling U.S. bluff on TikTok ban 🛑 

The deets in 30 seconds:

• ByteDance has refused to sell TikTok despite mounting U.S. pressure, and now politicians are wavering.

• TikTok CEO Shou Chew will attend Donald Trump’s inauguration amid last-ditch efforts to avoid a U.S. ban.

• Senate Democratic leader Chuck Schumer claims more time is needed to find an American buyer.

• Incoming National Security Adviser Mike Waltz suggests measures will be taken to prevent TikTok from going dark.

• Lawmakers are scrambling to extend TikTok’s timeline, with opposition citing national security risks.

💡 How it impacts you:

• Content creators risk losing livelihoods as TikTok’s U.S. operations face shutdown.

• Users might lose access to a key entertainment and social platform overnight.

• National security debates over app privacy and data handling take center stage.

• Potential delays could create uncertainty for TikTok’s millions of American users.

• Tech competition shifts as rivals like Meta might benefit from TikTok’s absence.

🔮 Industry prediction:

TikTok’s survival in the U.S. hinges on Trump’s deal-making theatrics. If saved, expect a broader push for tighter regulations across all social platforms.

Who's Moving:

• 🏃‍♀️ Leading: TikTok, Meta, U.S. lawmakers.

• 🚶‍♂️ Following: Oracle, Google, Apple.

• ⌛ Waiting: Smaller platforms like Triller, BeReal.

What's Next:

• Now: TikTok faces shutdown unless ByteDance divests.

• 6 Months: Regulatory debates intensify on foreign apps.

• 1 Year: New compliance frameworks reshape the U.S. social media landscape.

⚡ The bottom line:

Trump’s TikTok gambit is part Shark Tank, part West Wing, as America’s most viral app fights to stay relevant—literally.

5. Palantir eyes $5 billion drone bet 🚁

⏳️ The deets in 30 seconds:

• Shield AI, a San Diego drone maker, is raising hundreds of millions from Palantir and Lockheed Martin.

  • The potential deal values Shield AI at $5 billion.

  • Shield AI builds autonomous drones, fighter jets, and other systems for U.S. and Ukrainian governments.

• The alliance strengthens Shield AI’s ties to major defense players: $158B-valued Palantir and $115B-valued Lockheed Martin.

• Founded in 2015 by Ryan and Brandon Tseng, the company operates in Dallas, D.C., and Abu Dhabi.

• Other investors include ARK Invest and Riot Ventures, reflecting a growing appetite for venture-backed defense startups.

💡 How it impacts you:

• Strengthened Defense Tech: Shield AI’s partnerships could accelerate autonomous systems adoption in defense.

• Investor Confidence: High valuations signal lucrative opportunities in gov-tech contracts for private companies.

• Global Implications: More advanced drones and AI systems could shift battlefield dynamics, especially in Ukraine.

• Economic Spillover: Expanding startups in defense tech may boost job markets in key U.S. regions.

• Tech Innovation: Cross-pollination between startups and giants like Palantir could spur next-gen software breakthroughs.

🔮 Industry prediction:

Autonomous defense systems are becoming Silicon Valley’s next moonshot, with VC-backed startups positioning themselves as indispensable players in government modernization.

Who’s Moving:

• 🏃‍♂️ Leading: Anduril, Shield AI, Palantir.

• 👣 Following: Saronic, Teal Drones.

• ⌛ Waiting: Legacy aerospace firms without AI-first strategies.

What’s Next:

• Now: Shield AI cements relationships with government clients.

• 6 Months: Market expands as funding pours into defense tech.

• 1 Year: Competing firms shift focus to autonomous systems for edge in global markets.

⚡ The bottom line:

Defense startups like Shield AI are turning government contracts into Silicon Valley’s latest gold rush—autonomy is the name of the game.

6. Banks hand $100 billion to shareholders 💸

⏳️ The deets in 30 seconds:

• Six largest US banks paid over $100 billion to shareholders in 2024, the highest since 2021.

  • This includes dividends and share buybacks, marking a sharp rise in payouts post-pandemic.

• Citigroup announced a $20 billion buyback plan, its most significant move to satisfy investors.

• JPMorgan plans additional buybacks, citing excess capital and limited near-term investment opportunities.

• Goldman Sachs CEO expects regulatory relief, freeing banks to return more capital to shareholders.

• Basel III Endgame rules, requiring banks to hold more capital, are likely to see easing under the Trump administration.

💡 How it impacts you:

• Bank stocks could see higher value due to increased buybacks and dividends.

• Investors gain larger stakes in banks through share repurchases.

• Potential easing of capital rules may lead to more accessible loans and credit for consumers.

• If you hold ETFs or mutual funds with major banks, dividends may increase your returns.

🔮 Industry prediction:

Regulatory rollbacks are about to make Wall Street feel like it’s on a permanent vacation. Banks are poised to deploy more capital into shareholder pockets, reshaping the post-pandemic financial landscape into a dividend-rich era.

Who's Moving:

• 💪 Leading: JPMorgan, Goldman Sachs, Citigroup

• ⚡️ Making Moves: Bank of America, Wells Fargo

• 💬 Worth Watching: Regional banks adapting to eased rules

Timeline:

• Q1 2025: New regulatory proposals debated.

• Mid-2025: Basel III Endgame rules eased or repealed.

• 2H 2025: Surge in capital returns and lending growth.

⚡ The bottom line:

Wall Street’s banks just handed out $100 billion like Oprah’s favorite things—and 2025 could bring an encore with lighter regulation and stronger shareholder confidence.

🗞️ Speed Reads

🤖 AI & Tech

Following Google, Microsoft now bundles AI features into Microsoft 365 and raises prices.

A Reddit user thinks OpenAI may have ‘broken out’ and crossed the last threshold of criticality to self improve.

MIT released an explainer on GenAI’s environmental impact.

Mark Cuban is ready to fund a TikTok alternative built on Bluesky’s AT Protocol.

iPhone 17 could get an updated Face ID.

💼 Startup & Business

Nelly raises $51M to digitize medical practices in Europe.

Mira Murati starts hiring for her startup.

Amazon lays off about 200 employees in its Fashion and Fitness stores division.

Microsoft lays off employees in security, experiences, sales, and gaming - separate from cuts targeting underperforming employees.

Starship’s 7th test flight loses communication with the upper stage of the rocket.

🇺🇸 U.S Politics

Official portraits of Trump and Vance released.

Trump’s ‘energy Tsar’ says fossil fuel imperative for US to lead AI race.

While Biden warns of an oligarchy, Trump’s inauguration will be attended by billionaires.

🌏️ Global Affairs (non-US)

China’s population falls for a third straight year.

Japan’s tourism hits all-time high due to weak currency.

India’s economy projected to grow by 6.7% by World Bank.

💫 Mind Candy

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