Tag: Trump

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Trump’s U.S. Bitcoin reserve plan falls short of expectations

National U.S. crypto reserve

The cryptocurrency market faced a significant downturn following the announcement of President Donald Trump’s U.S. Bitcoin reserve plan

The initiative aimed to position the United States as a global digital asset leader fell short of market expectations, triggering a wave of selloffs.

Bitcoin, the flagship cryptocurrency, experienced a 3% drop, trading at $87,586.86 before dipping further to $84,688.13. Other major cryptocurrencies, including Ethereum, XRP, and Solana, also saw declines, with Cardano’s ADA token suffering a sharp 13% drop.

The market’s reaction underscores the gap between investor hopes and the plan’s immediate implications.

The executive order established a strategic bitcoin reserve funded exclusively by assets seized in criminal and civil proceedings. While this approach ensures no taxpayer burden, it disappointed investors who anticipated direct government purchases to bolster Bitcoin’s value.

White House Crypto and AI Czar David Sacks emphasised the reserve’s role as a ‘digital Fort Knox’, but the lack of immediate buy pressure dampened market sentiment.

The broader economic context also played a role. Weakness in equities and ongoing tariff concerns added to the uncertainty, compounding the market’s reaction.

Analysts noted that while the reserve plan is a step toward legitimising cryptocurrencies, its short-term impact on prices was underwhelming.

Despite the initial disappointment, the strategic reserve could have long-term benefits. By centralising and securing digital assets, the U.S. government aims to strengthen its position in the global financial system.

However, for now, the market remains volatile, reflecting the challenges of balancing innovation with investor expectations.

As the crypto landscape evolves, the success of such initiatives will depend on their ability to deliver tangible value to both the market and the broader economy.

Will the U.S. government create a strategic crypto reserve by directly buying the digital asset and holding it as a national reserve?

At this moment in time, only Trump has that ‘key’.

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Global markets slide into chaos as Trump pushes his ‘America First Agenda’

U.S. tariffs

Global markets have been thrown into turmoil following the announcement of sweeping tariffs by U.S. President Donald Trump

U.S. tariffs, which include a 25% levy on imports from Canada and Mexico and a 10% increase on Chinese goods, have sparked fears of a global trade war. Retaliatory measures from Canada and China have only added to the uncertainty, sending shockwaves through financial markets worldwide.

The FTSE 100, London’s blue-chip index, fell by 1.3%, marking its steepest decline since October last year. Across the Atlantic, Wall Street saw significant losses, with the S&P 500 dropping 1.6% and the Dow Jones Industrial Average falling 1.7%. European markets were not spared, as Germany’s DAX and France’s CAC 40 plunged by 3.5% and 2.1%.

Investors are increasingly concerned about the long-term implications of these tariffs. The measures threaten to disrupt global supply chains, inflate costs, and dampen economic growth. Analysts warn that prolonged trade tensions could push the global economy closer to a recession.

The tariffs have also had a notable impact on currency markets. The U.S. dollar weakened against major currencies, with the pound rising to a six-week high of $1.27. Meanwhile, safe-haven assets like gold saw a surge in demand, with prices climbing above $2,900 per ounce.

Oil markets were not immune to the fallout, as Brent crude futures dropped to a three-month low of $70.65 per barrel. The decline reflects growing concerns over reduced demand amid escalating trade tensions.

As the world braces for further economic uncertainty, the focus now shifts to how global leaders will navigate these turbulent waters.

The stakes are high, and the path forward remains uncertain.

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Trump’s tariffs tumble markets!

Stocks go red!

Trump’s tariffs have created fresh concern and new volatility in the markets forcing a stock market reversal.

The tariffs, which include a 25% duty on imports from Mexico and Canada, as well as a 10% levy on Chinese goods, have led to significant market volatility.

Investors remain cautious as they assess the long-term implications of these trade restrictions. The tariffs are expected to raise inflation in the U.S. and could potentially lead to a severe market correction.

It’s a complex situation with far-reaching consequences for global trade and the economy.

The S&P 500 retreated on Monday, extending February’s rout and turning red for the year after President Donald Trump’s confirmation of forthcoming tariffs.

The S&P 500 index fell to end at 5849, marking its worst day since December 2024 and bringing its year-to-date performance to a loss of about 0.5%.

The Dow Jones Industrial Average dropped 649 points to finish at 43191. The Nasdaq Composite slid to close at 18350, weighed down by Nvidia’s decline of more than 8%.

Stocks took a notable leg down in the afternoon following President Trump’s reiteration that 25% levies on imports from Mexico and Canada would go into effect on Tuesday 5th March 2025, dashing investors’ hopes of a last-minute deal to avert the full tariffs on the two U.S. allies.

All three indexes traded in positive territory earlier in the day, with the Dow rising nearly 200 points at session highs.

China retaliated with reciprocal tariffs of 15% on some U.S. goods due to take effect 10th. March 2025.

Is the world order being dramatically upended?

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Trump announces strategic crypto reserve to including Bitcoin – Solana – XRP – Cardano and Ethereum

Crypto reserve

President Donald Trump has announced the creation of a ‘strategic crypto reserve’ that will include Bitcoin, Ethereum, XRP, Solana, and Cardano.

This move aims to position the United States as the ‘crypto capital of the world’ and has already led to significant price increases for these cryptocurrencies.

The announcement was made on Truth Social, where Trump emphasised the importance of elevating the crypto industry after what he described as years of corrupt attacks by the previous administration.

This is the first time Trump has specified his support for a crypto ‘reserve’ versus a ‘stockpile’.

Many crypto investors feel strongly that a crypto reserve should hold only Bitcoin, while some reject the idea of a reserve holding digital assets altogether.

Cryptocurrencies instantly rallied after President Donald Trump announced the creation of a strategic crypto reserve.

Crypto coins have since lost some of those initial gains.

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Tesla’s market cap falls below $1 trillion

Tesla

Tesla shares sank 8% on Tuesday 25th February 2025 and have now lost most of their gains that followed President Donald Trump’s election victory in November 2024.

The stock has plunged 25% this year, while the Nasdaq is down 1.5%.

It was also reported on that the company’s long-awaited upgrade of its partially automated driving system in China left owners unimpressed.

Tesla 3-month chart as of 25th February 2025

Tesla 3-month chart as of 25th February 2025

Bump to slump?

The ‘Trump Bump’ – a term referring to the surge in stocks and other assets, such as cryptocurrency, following Donald Trump’s election and inauguration seems to have plateaued.

This is most evident in Tesla shares, which plummeted Tuesday 25th February 2025, wiping out most of the post-election gains linked to CEO Elon Musk’s association with Trump.

Concerns about Tesla pertain to the company’s and Musk’s significant amount of time spent in Washington, D.C.

Investors are increasingly worried about impact of Trump’s tariffs on the economy. A U.S. Conference Board survey indicated pessimism regarding job availability, business conditions, and future income, along with heightened expectations for inflation in 2025.

The 10-year Treasury yield, considered an indicator of growth expectations, declined on this news. Stocks continued to fall. If this trend does not reverse soon, we could be facing a ‘Trump Slump.’

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S&P 500 hits new record high

S&P 500 record

The S&P 500 closed at a record high Tuesday 18th February 2025 after investors shook off headwinds on the global trade and inflation

The S&P 500 index gained 0.24% to close at a record of 6129 on 18th February 2025. The Nasdaq Composite closed up at 20041 while the Dow Jones Industrial Average added finished the day at 44556.

S&P 500 hits new record high to close at 6129 as of 18th February 2025
S&P 500 hits new record high to close at 6129 as of 18th February 2025

The energy sector was the top performer in the S&P 500, increasing by 1.9%. Halliburton and Valero Energy spearheaded the gains. Technology stocks also gained.

The general consensus is that the market is still trying to break out of the consolidation it’s been in since early December. This week we see retail earnings, but news on Trumps tariffs could continue to be a wild card for the markets.

Wall Street is coming off a winning week. The Dow Jones gained around 0.6% last week, while the S&P 500 advanced 1.5%. The Nasdaq rose 2.6%.

Much of last week’s gains occurred later in the week after President Donald Trump’s proposal for reciprocal tariffs on countries that impose levies on U.S. goods reassured investors who were concerned that the tariffs would be more severe.

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Waning enthusiasm around Trump – AI and crypto

Lack of enthusiasm

As we progress through 2025, it’s evident that the initial excitement surrounding Donald Trump’s election win, artificial intelligence (AI), and cryptocurrency has begun to wane – but for how long?

Investors and the general public seem to be growing more cautious, reflecting a shift in sentiment towards these once highly anticipated topics.

Trump’s tariffs

In the realm of politics, Trump’s influence on the stock market has been notably erratic. His tariff threats and new policies have created uncertainty and volatility, leading investors to react negatively. Trump’s riviera suggestion for the Gaza strip, his interest in Canada and fixation for Greenland ownership have all tilted ‘standard’ political logic.

Recent announcements of additional tariffs on steel and aluminum imports have only heightened concerns, causing stock market fluctuations and dampening investor enthusiasm. The initial optimism that Trump’s policies would bolster the economy has been replaced by a more cautious outlook.

AI

Artificial intelligence, once hailed as the technological revolution of the century, is also experiencing a cooling of enthusiasm. While AI continues to make strides in various industries, the initial hype has given way to a more measured perspective.

Investors are now more wary of the long-term potential and the substantial investments required to develop AI technologies. Companies like DeepSeek, which have claimed cost efficiencies, are causing big tech firms to reevaluate their spending on AI projects, leading to a more tempered approach.

Crypto

Cryptocurrency, too, has seen mixed sentiments. Despite ongoing enthusiasm from dedicated supporters, the market’s volatility and regulatory challenges have tempered the initial excitement.

The dramatic price swings and uncertain regulatory landscape have made investors more cautious. While there are still significant investments and innovations in the crypto space, the euphoria that once surrounded it has subdued.

The excitement around Trump, AI, and cryptocurrency is not as fervent as it once was. The reality of market volatility, regulatory challenges, and the substantial investments required has led to a more cautious and measured approach.

As we move forward, it will be interesting to see how these areas evolve and whether they regain the heightened enthusiasm they once enjoyed.

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Tariff Man – Trumps tariffs take affect – markets fall!

U.S. Tariffs

U.S. President Donald Trump’s tariffs have moved from threat to reality.

U.S. President Donald Trump launched a series of tariffs on Saturday. U.S. imports from Mexico and Canada will face a 25% duty, while those from China will be subject to a 10% tariff. Energy resources from Canada will face a lower 10% tariff.

Canada’s Prime Minister Justin Trudeau announced on the same day retaliatory tariffs of 25% against $155 billion in U.S. goods. Industry leaders in the U.S. have expressed concern over those tariffs.

They cap off a wild start to the new year during which a new U.S. president entered the White House and a new Chinese artificial intelligence player, DeepSeek upended the industry.

Indices at new highs

Something else that was new in January: the highest-ever closing level for the S&P 500, Dow Jones and new FTSE 100 highs were enjoyed too.

With tariffs now in effect and the possibility of a trade war looming markets may struggle to new heights in the short term.

Even Big Tech earnings and the jobs numbers coming out this week, typically market-moving reports, are likely to play second fiddle to policy developments.

Markets react

Markets are already responding to the news. Prices of oil and gold, which typically rise during periods of volatility, have increased, but Bitcoin is trading lower. It remains uncertain whether these will be a temporary shock or a sustained trend.

China’s factory activity experienced slower growth in January 2025 compared to December 2024 and is expected to be adversely affected as U.S. companies seek to reduce their dependence on Chinese imports.

Trump’s current tariffs may be targeted, but it’s hard to see any country or sector escaping the tariff turmoil.

The EU is also in line for a tariff attack and maybe the UK after.

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Fed holds rates steady – calculates a less confident view on inflation

Federal Reserve

The Federal Reserve maintained its key interest rate on Wednesday 29th January 2025, reversing a recent trend of policy easing as it assesses the likely turbulent political and economic landscape ahead.

As expected, the Federal Open Market Committee (FOMC) left its borrowing rate unchanged in a range between 4.25% and 4.50%.

The decision followed three consecutive cuts since 2024 and marked the first Federal Reserve meeting since frequent Fed critic Donald Trump assumed the presidency last week. He almost immediately expressed his intention for the central bank to cut rates.

The post-meeting statement scattered a few clues about the reasoning behind the decision to hold rates steady. It offered a more optimistic view on the U.S. labour market while losing a key and telling reference from the December 2024 statement that inflation ‘has made progress toward’ the Fed’s 2% inflation goal.

Statement

Text appearing for the first time in the new statement is in red and underlined. Black text appears in both statements.

Text appearing for the first time in the new statement is in red and underlined. Black text appears in both statements.

The decision comes against a volatile political backdrop.

In just over a week, Trump has disrupted Washington’s policy and norms by signing hundreds of orders aimed at implementing an aggressive agenda.

The U.S. president has endorsed tariffs instruments of economic and foreign policy, authorised a wave of deportations for those crossing the border illegally, and a series of deregulatory initiatives.

Trump spoke of his confidence that he will bring down inflation and said he would ‘demand’ that interest rate be lowered ‘immediately.’

Although the president lacks authority over Fed beyond nominating board members, Trump’s statement indicated a potentially contentious relationship with policymakers, similar to his first term.

Inflation has moved down sharply from the 40-year peak it hit in mid-2022, but the Fed’s 2% goal has remained elusive.

In fact, the central bank’s preferred pricing gauge showed headline inflation ticked higher to 2.4% in November, the highest since July, while the core measure excluding food and energy held at 2.8%.

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Trump’s SEC prepares new ‘crypto task force’ to regulate the industry

Crypto regulation

On 21st January 2025, the U.S. Securities and Exchange Commission (SEC) announced the formation of a new cryptocurrency task force under the leadership of President Donald Trump.

This initiative marks a significant shift in the regulatory landscape for digital assets, aiming to provide a comprehensive and clear framework for the industry.

Task force

The task force, led by Commissioner Hester Peirce, also known as ‘Crypto Mom,’ is designed to address the regulatory challenges that have plagued the crypto industry for years.

The primary objectives of the task force include drawing clear regulatory lines, providing realistic paths to registration, crafting sensible disclosure frameworks, and deploying enforcement resources judiciously.

This approach contrasts sharply with the previous administration’s reliance on enforcement actions, which often left the industry in a state of confusion and uncertainty.

The announcement has generated a wave of optimism among crypto enthusiasts and investors. The price of Bitcoin, for instance, saw a notable increase following the news, reflecting the market’s positive reception.

But before this announcement, Bitcoin was already in an upward trajectory following the positive news swirling around Trump after he won the U.S. election.

Industry leaders are hopeful that the new regulatory environment will foster innovation while protecting investors and maintaining market integrity.

Commodity Futures Trading Commission

One of the key aspects of the task force’s mandate is to collaborate with other government agencies, Congress, and international bodies to ensure a cohesive regulatory approach.

This includes working closely with the Commodity Futures Trading Commission (CFTC) and other federal departments to harmonize regulations and provide technical assistance to Congress as it considers changes to the existing legal framework.

The task force’s formation is seen as a pivotal moment for the crypto industry, signalling a more welcoming and structured regulatory environment. As the task force begins its work, the industry eagerly anticipates the development of clear and practical guidelines that will support the growth and maturation of the digital asset market.

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Trump announces massive U.S. AI investment backed by Oracle, OpenAI and Softbank

U.S. AI investment

President Donald Trump announced a joint venture with OpenAI, Oracle and Softbank to invest billions of dollars in artificial intelligence infrastructure in the U.S.

The project, dubbed Stargate, was unveiled at the White House by Trump, Softbank CEO Masayoshi Son, OpenAI CEO Sam Altman and Oracle co-founder Larry Ellison.

The executives committed to invest an initial $100 billion and up to $500 billion over the next four years in the project, which will be set up as a separate company.

Softbank’s Son had reportedly already promised a four-year, $100-billion investment when he recently visited then-President-elect Trump at his Mar-a-Lago resort.

And this new AI investment is over and above the investments from the likes of Microsoft, Google, Apple, Anthropic and many others already in progress.

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Why is Trump so fixated with Greenland?

The island of Greenalnd

Donald Trump’s fascination with Greenland has been a topic of intrigue and speculation since his first term in office.

His renewed interest in acquiring the world’s largest island has raised eyebrows and sparked debates about the underlying motivations and implications of such a move.

Greenland, a semi-autonomous territory of Denmark, holds significant strategic and economic value. Its location in the Arctic makes it a key player in global geopolitics, especially as ‘climate change’ could potentially open up new shipping routes and access to untapped natural resources.

The island is rich in rare earth minerals, oil, and natural gas, which are becoming increasingly accessible due to the melting ice caps. These resources are crucial for advanced technologies and the clean energy economy, making Greenland a highly coveted asset.

Critical minerals

Critical minerals refer to a subset of materials considered essential to the energy transition. These minerals, which tend to have a high risk of supply chain disruption, include metals such as copper, lithium, nickel, cobalt and rare earth elements.

Critical minerals and rare earth elements are vital components in emerging green technologies, such as wind turbines and electric vehicles, energy storage technologies and national security applications.

China is the undisputed leader of the critical minerals supply chain, accounting for roughly 60% of the world’s production of rare earth minerals and materials. U.S. officials have previously warned that this poses a strategic challenge amid the pivot to low-carbon energy sources

Jakob Kløve Keiding, senior consultant at the Geological Survey of Denmark and Greenland (GEUS), reportedly said a 2023 survey of Greenland’s resource potential evaluated a total of some 38 raw materials on the island, the vast majority of which have a relatively high or moderate potential.

These materials include the rare earth metals graphite, niobium, platinum group metals, molybdenum, tantalum and titanium.

A lot of independent state surveys are pointing to Greenland and its natural shelf boundaries as potentially hosting 20% to 25% of the last remaining extractable resources on the planet. Now, if that’s right, that’s an enormous opportunity for Greenland.”

Not just about money, it’s also about strategic benefits and ‘national’ security

Trump’s interest in Greenland is not solely driven by its natural resources. The island’s strategic military importance cannot be overlooked. Greenland hosts the U.S.’ northernmost military base, the Pituffik Space Base, which plays a critical role in ballistic missile early warning systems and space operations.

Control over Greenland would enhance the U.S.’ ability to monitor and respond to potential threats from adversaries, solidifying its position in the Arctic region.

And… it’s personal too

Beyond the strategic and economic factors, there are also personal and political motivations behind Trump’s fixation with Greenland.

Some experts suggest that Trump’s desire to acquire Greenland is fueled by his ambition to leave a lasting legacy and be remembered as a transformative leader. The idea of adding a vast, resource-rich territory to the United States’ portfolio aligns with his ‘America First’ agenda and his penchant for grandiose projects.

However, Trump’s pursuit of Greenland has not been without controversy. The Danish government and Greenland’s leadership have firmly rejected the idea of selling the island.

Greenland’s Prime Minister Múte Egede has emphasised the island’s desire for independence and self-determination, stating that Greenland is not for sale and that its future should be decided by its people. This stance reflects the broader sentiment among Greenlanders, who are wary of foreign exploitation and committed to preserving their unique cultural and environmental heritage.

Donald Trump’s fixation with Greenland is a complex interplay of strategic, economic, and personal factors.

While the island’s vast natural resources and strategic military importance make it an attractive target, the political and ethical implications of such a move cannot be ignored. As the debate continues, it remains to be seen whether Trump’s ambitions will materialize or if Greenland will maintain its autonomy and chart its own path in the Arctic region.

Rare earth minerals

Greenland is home to a variety of rare earth minerals, which are crucial for many modern technologies. Some of the key rare earth minerals found in Greenland include:

  • Yttrium
  • Scandium
  • Neodymium
  • Dysprosium
  • Terbium
  • Europium
  • Gadolinium
  • Holmium
  • Erbium
  • Thulium
  • Ytterbium
  • Lutetium
  • Copper
  • Gold
  • Zinc
  • Titanium
  • Lead
  • Silver
  • Platinum
  • Palladium
  • Rhodium
  • Nickel
  • Cobalt
  • Lithium

Some of these minerals are essential for the production of permanent magnets used in electric vehicles (EVs) and wind turbines. Others are more obvious.

Greenland’s rich mineral resources make it a significant player in the global supply of rare earth elements.

Greenland ‘mini’ history lesson

Greenland history of ownership is a captivating narrative of exploration colonization, and strategic significance. The island, the largest has been inhabited for millennia, with the known settlers arriving around 2500 BC. These early inhabitants were succeeded by several other groups migrating from continental North America.

The first formal claim Greenland can be traced to the late10th century when Erik the Red, a Norse, settled on the island after being banished from Iceland. He named it ‘Greenland’ to attract settlers, and small Norse communities established themselves along the coast. These settlements endured for centuries, despite the Arctic conditions and the encroaching cold of the Little Ice Age.

In the 18th century, Denmark-Norway began to reassert its influence over. In 1721, a missionary expedition led by Hans Egede marked the beginning of Denmark colonisation efforts. Greenland was formally incorporated into the Danish Kingdom in 1953, transitioning a colony to overseas county.

During World, Greenland became more closely connected to the U.S. due to Denmark’s occupation by Nazi Germany. After the war, Denmark reasserted its control, and in 1979 Greenland was granted home rule, allowing it to govern its affairs. Denmark retained control over defence and foreign policy.

Today, an autonomous territory within the Kingdom of Denmark, with increasing self-governance. It manages its domestic matters, including education health, natural resources, while Denmark oversees defense and foreign affairs.

Greenland’s strategic importance has it as a subject of interest for various global powers throughout history, and its unique position continues to shape its political and economic landscape.

Though a part of the continent of North America, Greenland has been politically and culturally associated with Europe (specifically Denmark and Norway)

See Wikipedia for more information.

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Melania and Donald Trump launch their own cryptocurrency meme coins

Crypto

Melania Trump has launched a meme coin called ‘Melania’

The meme coin was announced on the eve of Donald Trump’s inauguration as president of the United States.

It comes days after President-elect Donald Trump launched his own meme coin, ‘Official Trump.’

In a disclaimer on the meme coin’s official website, potential buyers are told that Melania memes ‘are digital collectibles intended to function as an expression of support for and engagement with the values embodied by the symbol MELANIA. and the associated artwork, and are not intended to be, or to be the subject of, an investment opportunity, investment contract, or security of any type.’

On the Trump token’s website, the cryptocurrency – depicted with an image of Trump raising his fist in the air – is marketed as ‘a piece of history,’ while Trump himself is branded ‘the crypto president.’

Bitcoin hit a new all-time high overnight after the Trumps each launched their own meme coins in the past few days.

The flagship cryptocurrency was up and touching $107,000 in early Monday trade.

Trump launched the ‘Official Trump‘ meme coin Friday (17th January 2025), which has risen to a $10.6 billion market cap and surged more than 659%, according to data from CoinGecko and Coinbase (as of 20th January 2025) – and has trimmed back since. 

Melania Meme has hit a $1.3 billion market cap and 14% price increase since its launch Sunday night (19th January 2025). It has attracted $7.3 billion in trading volumes over that day, compared to the Trump meme’s $31 billion. But has since trimmed back.

Meme coins are considered the riskiest corner of the already risky cryptocurrency market.

But the Trumps’ coin launches are giving traders confidence that the incoming administration will be positive for the industry.

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Meta boss bows to Trump re-aligning with their ‘free speech’ mandate

AI

Mark Zuckerberg’s recent actions seem to be driven by a mix of strategic business decisions and political pragmatism.

As Trump prepares to retake the White House, Zuckerberg has made several changes at Meta, including scaling back content moderation and fact-checking, and moving safety teams to Texas. These moves appear to align with Trump’s stance on free expression and reducing censorship.

Additionally, Zuckerberg and other tech leaders are likely seeking to build a favorable relationship with the incoming administration to navigate potential regulatory challenges and maintain their business interests. It’s a complex dance of power and influence, with both sides looking to benefit from the alliance.

Recalibrating for Trump

Zuckerberg, who has been summoned to Washington eight times to testify before congressional committees during the last two administrations, wants to be perceived as someone who can work with Trump and the Republican Party, it would appear.

Though Meta’s content-policy updates caught many of its employees and fact-checking partners off-guard, a small group of executives were formulating the plans in the aftermath of the U.S. election results. By the New Year – managers had reportedly begun planning the public announcements of its policy change.

It has been noted that Meta typically undergoes major ‘recalibrations’ after power changes hand. Meta adjusts its policies to best suit its business model and reputational needs based on the political landscape.

Does the company remain true to its original founding principles, whatever they are – or does it ‘cozy up’ with power to re-position itself to benefit politically? Let’s put some more money in the Trump inauguration pot.

Nothing new here then – but go watch the video of Zuckerberg’s announcement.

Does it may you cringe – or is it just me?

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How is AI regulation likely to affect stock markets in 2025?

AI regulation

As we head into 2025, the landscape of artificial intelligence (AI) regulation is poised to undergo significant changes, and these shifts are likely to have a profound impact on the stock markets.

The introduction of new regulations, particularly in regions like the European Union and the United States, will create both challenges and opportunities for investors.

One of the most anticipated regulatory developments is the European Union’s AI Act, which aims to set a global standard for AI regulation. This act is expected to impose stringent requirements on AI systems, particularly those used in high-risk sectors such as healthcare, finance, and law enforcement.

Companies operating in these sectors will need to invest heavily in compliance, which could lead to increased operational costs and potentially affect their profitability. As a result, stocks of companies heavily reliant on AI technologies may experience volatility as investors react to these new regulations.

In the United States, the political landscape is also shifting, with the incoming administration expected to take a more hands-on approach to AI regulation. President-elect Donald Trump has appointed Elon Musk to co-lead a new ‘Department of Government Efficiency – DOGE‘, which will focus on nascent technologies like AI. Musk’s influence and experience in the AI field could lead to more favourable policies for AI development, but it could also result in increased scrutiny and regulation of AI applications. Musk’s AI vision differs to that of Mark Zuckerberg’s for instance.

This dual approach of promoting innovation while ensuring safety and ethical use of AI could create a dynamic and unpredictable market environment.

The impact of AI regulation on the stock markets will not be uniform across all sectors. While companies in high-risk sectors may face challenges, those in industries like healthcare and finance could benefit from AI’s transformative potential.

For example, AI-driven innovations in healthcare, such as predictive diagnostics and personalised treatment plans, have the potential to revolutionize patient care and reduce costs. Companies that successfully integrate AI into their operations and comply with regulatory requirements could see their stock prices rise as investors recognize the long-term value of these advancements.

However, the regulatory landscape is not without its risks. Companies that fail to adapt to new regulations or face compliance issues may see their stock prices suffer. Additionally, the rapid pace of technological change means that regulations may struggle to keep up, leading to potential legal and financial uncertainties for companies operating in the AI arena.

AI regulation in 2025 is likely to create a complex and dynamic environment for the stock markets. While new regulations will pose challenges for some companies, they will also open up opportunities for those that can navigate the regulatory landscape successfully.

Investors will need to stay informed and agile, as the impact of AI regulation on the stock markets will be both significant and multifaceted.

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Tesla shares climb to record high – boosted by Trump election victory

Tesla EV

Tesla shares soared to an all-time high on Wednesday exceeding their previous record set in 2021, driven by a post-election rally and heightened enthusiasm Wall Street for Elon Musk’s electric vehicle company.

The stock increased to an intraday high of $415, exceeding its previous peak by 50 cents and closed above its highest finish of $409.97 recorded on 4th November 2021.

Tesla’s market has increased reportedly increased by around 69% this year, with nearly all of those gains occurring after Trump’s election victory early last month. The stock’s 38% rally in represented its monthly performance since January 2023 and ranks as the 10th best on record.

Reportedly according to Federal Election Commission filings, Musk invested $277 million into a pro-Trump campaign effort and transformed his support for the Republican nominee into a full-time job in the lead-up to the election. He financed an operation in swing states to register voters and utilised his social media platform, to promote his chosen candidate, often disseminating misinformation.

The world’s wealthiest individual, whose net worth has increased to over $360 billion, is poised to head the Trump administration’s ‘Department of Government Efficiency,’ DOGE – together with former Republican presidential candidate Vivek Ramaswamy.

The newly formed DOGE will be tasked with culling government bureaucracy by streamlining and junking departments.

Musk’s role may grant him authority over the budgets and staffing of federal agencies, well as the capability to advocate for the removal of inconvenient regulations. During a Tesla earnings call in October, Musk reportedly stated intention to leverage his influence with Trump to create ‘Federal approval for autonomous vehicles.’ At present, approvals are at the state level.

Is business now openly running he U.S. government?

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Bitcoin breaks the $100,000 barrier

In a historic moment for the cryptocurrency world, Bitcoin has finally breached the $100,000 mark.

This milestone, reached on 5th December 2024, signifies a notable triumph for Bitcoin enthusiasts and investors who have endured the market’s volatility over the years.

The cryptocurrency value surge past $100,000 followed Donald Trump’s election as President of the United States. Trump’s favorable stance on crypto and his commitment to deregulate the sector are believed to have enhanced investor confidence. The momentum was further increased by his decision to nominate Paul Atkins, a recognized proponent of cryptocurrency, as the new chairman of the Securities and Exchange Commission (SEC).

Since the creation of the first Bitcoin ETF there have been massive inflows invested in this asset helping to push Bitcoin ever higher.

Bitcoin’s ascent to $100,000 has been tumultuous. Beginning the year at approximately $38,505, the cryptocurrency has experienced an impressive 155% increase to date. The surge was especially notable in the fortnight after Trump’s victory, with Bitcoin’s value soaring by about 45%.

Bitcoin’s ascent has triggered a ripple effect throughout the wider cryptocurrency market, now valued at a combined $3.78 trillion. This upsurge has reinforced Bitcoin’s preeminence in the digital asset arena and garnered considerable interest from institutional investors.

Despite the festive atmosphere, some analysts warn that Bitcoin’s well-known volatility is still worrisome. Although numerous investors have realized significant profits, the asset’s high-risk profile may not be appropriate for all. Nevertheless, the prevailing mood within the cryptocurrency community is one of optimism, fueled by the expectation that the incoming administration will create a regulatory climate more conducive to digital assets.

Bitcoin’s record-breaking streak continues, signaling a bright future for the renowned cryptocurrency. Its evolution from a peer-to-peer electronic cash system to a trillion-dollar asset highlights the revolutionary impact of blockchain technology.

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U.S. stocks have a November to remember as Dow touches 45,000

High Dow

On Friday 29th November 2024, the Dow Jones reached a new record high, closing at 44,910 points after breaching 45,000 temporarily

This formed part of a wider market surge that led the S&P 500 and Nasdaq Composite to also hit record peaks. It concluded a remarkable month for the stock market, marked by the Dow achieving its most substantial monthly gain of the year, all thanks to Trump winning the U.S. election.

In November, the S&P 500 experienced a 5.73% rise, and the Dow Jones Industrial Average recorded a notable 7.54% increase, both marking their most robust monthly performances for the year. Concurrently, the Nasdaq Composite enjoyed a 6.21% surge, its largest monthly gain since May.

Recently, a host of factors have pumped up investors’ sentiment for stocks. 

The presidential election concluded with Donald Trump decisively securing the presidency. This eliminated any uncertainty, which is often disliked by investors. Additionally, Trump’s support for the stock market, tax cuts, cryptocurrency, and deregulation is well-received by investors.

The U.S. economy expanded at an annualised rate of 2.8% in the third quarter. Although the gross domestic product is projected to grow by 1.31% in the fourth quarter, this still signifies an expansion, countering concerns of a potential recession hitting the U.S. economy.

Even a slowing growth rate can have its advantages. It provides the U.S. Federal Reserve with greater motivation to implement a second rate cut this year at its December 2024 meeting, potentially boosting economic activity.

Moreover, the seasonal strength of stocks in November 2024 has infused investors with a sense of optimism.

Entering December 2024, it’s challenging to disregard the current bull market, given the favourable conditions.

U.S. stocks are experiencing a robust year-end rally, partly due to short sellers being compelled to purchase stocks to close their positions as the year concludes.

This surge of buying could propel the S&P 500 to reach 6,300, suggesting a 5% increase for December 2024 and a 32.1% rise throughout 2024, surpassing the 24.2% gain seen in 2023.

Additionally, there’s the significant boost in cryptocurrency values, often referred to as the ‘Trump pump,’ – and this too is currently underway.

Dow Jones one-day chart as of 29th November 2024

Dow Jones one-day chart as of 29th November 2024
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Securities and Exchange Commission Chair Gary Gensler’s resignation is good news for crypto

Bitcoin

Bitcoin reaches a new record high, nearing the $100,000 mark as the cryptocurrency rally marches on.

Other altcoins are rallying too, basking in the aftermath of the SEC resignation news.

Gary Gensler, Chair of the Securities and Exchange Commission, will step down on 20th January 2025 (Trumps inauguration day), an announcement made by the SEC on Thursday 21st November 2024, which clears the path for President-elect Donald Trump to appoint a more crypto friendly successor.

During Gensler’s tenure, the SEC engaged in numerous high-profile conflicts with the cryptocurrency industry, including a lawsuit against Grayscale over Bitcoin ETFs – a case Grayscale won, leading to a significant influx of capital into these funds since their inception in January.

The SEC has also pursued legal action against several major digital asset firms concerning their crypto dealings, such as Coinbase, with varying outcomes.

Additionally, the SEC has been in conflict with Tesla CEO Elon Musk, particularly regarding his acquisition of the social media company Twitter, now known as X, for $44 billion in 2022. The commission is currently seeking sanctions against Musk for failing to appear for court-mandated testimony related to this matter.

Under Gensler’s leadership, the SEC has scrutinised Musk’s adherence to a previous settlement that mandated a securities lawyer review certain Tesla-related social media posts before they were published.

Musk, a vocal critic of the SEC who supported Trump’s election campaign with his time and a donation of at least $130 million and campaigned alongside him, is poised to join the incoming administration as a co-leader of the newly proposed Department of Government Efficiency (DOGE).

With Gensler’s impending departure and the upcoming expiration of the terms for two other commissioners, Trump will have the chance to significantly influence the future composition of the SEC.

A green light for crypto investors, but a worry (maybe) for the retail trader long-term?

Bitcoin one-day chart as of 22nd November 2024 (09:49am GMT) – Snapshot

Bitcoin one-day chart as of 22nd November 2024 (09:49am GMT)

Bitcoin one-year chart as of 22nd November 2024 (09:51am GMT) – Snapshot

Bitcoin one-year chart as of 22nd November 2024 (09:51am GMT)
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Trump rumour to relax U.S. vehicle self-driving rules pushes Tesla stock higher

Autonomous driving

Tesla shares enjoyed a Trump pump on Monday 18th November 2024 after reports that President-elect Donald Trump’s team intend to prioritise a federal framework for regulating autonomous vehicles within the U.S. Department of Transportation.

Elon Musk was a prominent advocate in the business sector for Trump’s re-election campaign leading up to this month’s elections.

Recently, Trump appointed Musk and former Republican presidential candidate Vivek Ramaswamy to head the newly established Department of Government Efficiency.

Tesla 5-year share price chart

Tesla 5-year share price chart

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Trump U.S. election win drives gold price down and Crypto up!

Gold prices have fallen to near a two-month low as the dollar strengthens in the wake of Donald Trump’s election victory last week.

This downturn has halted the bullion’s rally, which had achieved a series of record highs over the past year. Gold has seen a decline in six of the seven most recent trading sessions following Trump’s win, interrupting its streak of record-breaking milestones over the last twelve months.

On the other hand, Crypto has relished the Trump pump with Bitcoin and many altcoins setting new all-time highs!

Gold price charts – 3 month and one-year snapshot as of: 15th November 2024 (08:10 GMT)

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Trump announces the new ‘Department of Government Efficiency’- DOGE – Dogecoin climbs over 150% on the news

DOGE

The purchase of Meme coins is often viewed as indicators of retail interest and the willingness to take risks in the cryptocurrency market. Increased activity in meme coins typically signals that retail investors are engaging and are inclined to speculate more aggressively on the risk spectrum.

Trump initially proposed the concept of an efficiency commission in September 2024. Since that time, Musk -who has previously referred to himself as the ‘Dogefather’ – is known for making public statements about the meme coin that affect its value, has posted on his social media platform X, referring to the commission as the ‘Department of Government Efficiency’ or ‘D.O.G.E.‘

Dogecoin’s relevance surged in 2021 due to Elon Musk’s endorsement and the continuous hype on social media, which became a significant catalyst for the cryptocurrency. In May of that year, Musk’s tweets propelled Dogecoin to its peak value around 67 cents, according to market analysis. However, his reference to Dogecoin as ‘a hustle’, caused its value to plummet.

Recently, Dogecoin’s value increased following the post-election announcement by President-elect Donald Trump about the establishment of the ‘Department of Government Efficiency‘, which he acronymized as ‘DOGE’ in his statement.

Elon Musk, CEO of Tesla, and Vivek Ramaswamy, the former Republican presidential candidate and co-founder of Strive Asset Management, have been appointed to lead this department.

According to Trump’s statement, their role will be instrumental in his administration’s efforts to dismantle government bureaucracy, reduce unnecessary regulations, eliminate wasteful spending, and reorganise federal agencies.

It’s time for D.O.G.E.

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Bitcoin breaks $82,000 with billions bet on it reaching $90,000

Bitcoin

Bitcoin has achieved a new all-time high, surpassing $82,000, and has continued to climb.

This suggests that investors are confident the world’s leading cryptocurrency will gain even more, following U.S. elections that resulted in a significant number of pro-crypto candidates being elected.

During his campaign, President-elect Donald Trump vowed to make the United States the ‘crypto capital of the world.’

Trump reportedly committed to several initiatives for the crypto community, such as creating a national cryptocurrency reserve using $16 billion in Bitcoin accumulated by the U.S. government from asset seizures and from reducing interest rates.

Generally, an easing of monetary policy aligns with an increase in cryptocurrency prices, as it lowers the cost of borrowing money.

The Fed recently lowered U.S. interest rates for the second time this year.

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U.S. stocks just keep hitting new highs!

U.S. stocks up!

The U.S. stock market sunbathed in another day of records on Friday 8th November 2024.

The Dow and S&P 500 recorded their best week in a year after Trump’s election win.

The Dow Jones Industrial Average rose 259.65 points to close at 43,988.99 and broke the 44,000 barrier in intraday trading. The Dow Jones traded above 44,000 for the first time ever during the session.

The S&P 500 closed at 5,995.54, after briefly trading above 6,000 – a first for the S&P 500.

The tech-heavy Nasdaq Composite slowed at 19,286.78 but set an intraday record high as well.

Dow Jones one-year chart as of: 8th November 2024

Dow Jones one-year chart as of: 8th November 2024

S&P 500 one-year chart as of: 8th November 2024

S&P 500 one-year chart as of: 8th November 2024
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Oops I did it again! Trump wins 2024 U.S. presidential election – emphatically defeating Harris

Trump wins 2024 U.S. election

After losing the re-election to President Joe Biden in 2020, Donald Trump, the 45th president, has now been elected as the 47th.

Trump’s victory sets several historic records. At the age of 78, he becomes the oldest individual to win a U.S. presidential election. He is the first president to serve two nonconsecutive terms since Grover Cleveland 132 years ago, and his win comes from what is likely the costliest presidential race in history.

Also, he is reportedly the first president, whether in office or former, to have been convicted of crimes. He is also the first president to be impeached twice and then reclaim the presidency. Additionally, he is the first to assume office while actively facing criminal charges in both federal and state courts.

This victory for Trump prevents Vice President Harris from achieving what would have been a historic feat: becoming the first female president of the United States.

As Trump secures win stock markets react positively as Dow and S&P 500 futures rise to touch new all-time highs!

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Elon Musk predicts ‘hardship,’ economic turmoil and a stock market crash if Trump wins

U.S. presidential election

Elon Musk, the billionaire entrepreneur and CEO of Tesla and SpaceX, has recently made headlines in the U.S. with his stark predictions about the potential economic fallout if Donald Trump wins the upcoming presidential election.

This is unusual, as you are more likely to hear these proposals in a crisis, when desperate times demand desperate measures, but not leading up to a presential election and especially not from an opposition vying to take control of the U.S. presidency.

Musk’s comments have sparked widespread debate and concern, as he foresees significant economic turmoil and a stock market crash in the event of a Trump victory.

Musk’s predictions are deep-rooted in his belief that Trump’s proposed economic policies, including drastic cuts to federal spending and mass deportations, will lead to severe short-term economic disruptions.

Musk emphasised the need to reduce government spending to live within the country’s means, even if it involves temporary hardship.

He reportedly argued that such measures are necessary for long-term prosperity but acknowledged that they would likely cause an initial severe overreaction in the economy

Comments Elon Musk made

Billionaire Musk, Trump’s would-be government budget-cutting and ‘efficiency’ adviser, also says there will be “no special cases” and “no exceptions” when he starts slashing federal spending after Trump takes office.

With just a week until the presidential election, Donald Trump’s ally and influential economic adviser Elon Musk is warning people to expect economic chaos, a crashing stock market and financial “hardship” – albeit only “temporary” – if Trump wins.

“We have to reduce spending to live within our means,” Musk said. “That necessarily involves some temporary hardship, but it will ensure long-term prosperity.” 

Describing government spending as “a room full of targets,” Musk said: “Like, you can’t miss. Fire in any direction and you’re going to hit a target.”

He reportedly said, “I think once the election takes place we’ll immediately begin looking at where to take the most immediate action.”

And he reportedly added, “obviously a lot of people who are taking advantage of the government are going to be upset about that. I’ll probably need a lot of security.” 

“Everyone,” he reportedly said, will be taking a “haircut.”

The Tesla CEO went further and agreed with a supporter who predicted “an initial severe overreaction in the economy” and that “Markets will tumble.” 

“Sounds about right,” Musk replied.

Trump has already reportedly said he wants Musk to head up a commission of government efficiency. Trump says the billionaire tech entrepreneur would be his “Secretary of Budget-Cutting,” implying a possible Cabinet position.

Musk himself has described his new role as running a “Department of Government Efficiency,” though he admits the title is an inside joke – the acronym spells DOGE, the name of a cryptocurrency.

Musk speech highlights

One of the key points Musk highlighted is the potential impact of Trump’s policies on the stock market. He agreed with a social media post suggesting that the combination of mass deportations and significant government spending cuts would lead to a sharp decline in market values.

Musk’s agreement with this assessment has raised alarms among investors and economists, who fear that such a scenario could trigger a financial crisis.

Musk’s concerns are not without precedent. The stock market is highly sensitive to political and economic uncertainties, and drastic policy changes can lead to volatility and investor panic.

The prospect of mass deportations, in particular, could disrupt labour markets and consumer spending, further exacerbating economic instability. Additionally, significant cuts to federal spending could lead to job losses and reduced public services, compounding the economic challenges.

Unusual comments leading up to an election

Musk reportedly told supporters that the measures were needed because of the crisis of the skyrocketing federal debt.

This is not the usual picture when a politician and his campaign promise austerity, hardship, deep budget cuts, a likely economic “overreaction” and a slump in the stock market.

You usually hear these things proposed in a crisis, when desperate times supposedly demand desperate measures.

Are desperate times coming, maybe they are already here?

Optimism

Despite the grim outlook, Musk remains optimistic about the long-term benefits of these policies. He believes that once the initial shock subsides, the economy will recover and emerge stronger and more sustainable.

However, this perspective is not universally shared. Many economists argue that the risks associated with such drastic measures outweigh the potential benefits, and that a more balanced approach is needed to address the country’s economic challenges.

Musk’s predictions have also drawn criticism from those who view them as politically motivated. As a prominent supporter of Trump, Musk’s comments have been interpreted by some as an attempt to rally support for the former president’s economic agenda. Critics argue that Musk’s focus on austerity measures and government efficiency overlooks the broader social and economic implications of such policies.

Conclusion

Elon Musk’s predictions of economic hardship and a stock market crash if Trump wins the election have sparked significant debate and concern.

While Musk believes that these measures are necessary for long-term prosperity, the potential short-term disruptions and risks cannot be ignored. As the election approaches, investors and policymakers will be closely watching the developments and preparing for the potential economic fallout.

Whether Musk’s predictions come to pass remains to be seen, but his comments have undoubtedly added to the uncertainty and complexity of the current economic landscape and the never-ending ‘commentary surrounding the U.S. election.