The Trump administration has struck a deal with ByteDance, lifting political restrictions on the company in exchange for "stabilizing" its status in the US. The White House is prioritizing short-term political gains (avoiding a TikTok ban) over a long-term strategy of containing Beijing. The deal opens the floodgates for Chinese expansion: ByteDance plans a $14 billion purchase of Nvidia chips and the global scaling of its AI models.
Financial Times
Riyadh is radically revising the Neom project, abandoning the futuristic ambitions of "The Line" in favor of pragmatic development and data centers. The pivot is driven by liquidity shortages and the need to finance the 2034 World Cup. Prince Mohammed bin Salman is redirecting resources toward aggressive AI development, attempting to turn the kingdom into a global player in this market.
The second killing of a civilian by federal agents in a month has caused a rift within the Republican Party. GOP governors are criticizing federal tactics, fearing destabilization in their own states. The situation demonstrates the limits of Trump's power vertical: regional elites are beginning to sabotage the center for the sake of their own political survival.
Despite the mass adoption of AI, human resources remain the key factor in economic growth. Ruchir Sharma points out that demographic constraints are becoming the main drag on GDP. Investors should reassess valuations of companies betting solely on automation, as in the long run, the winners will be those who integrate AI into human-centric processes.
Chinese tech giants are finding ways to bypass sanctions, planning purchases of Nvidia chips worth billions of dollars. This underscores the inefficiency of US export controls: American corporations are interested in the Chinese market. For regulators, this is a challenge: either tighten controls and risk the revenues of their leaders, or accept the leakage of technology.
The Wall Street Journal
Senate Democrats are blocking DHS funding in response to the killing of Alex Pretty, creating the threat of a shutdown. The politicization of the budget process has reached its peak; Democrats are ready for escalation. For markets, this means a risk of volatility and a potential blow to the US credit rating.
Trump's new package of tax breaks proposes incentives at the cost of ballooning the budget deficit to $2 trillion. Equity markets may get a short-term doping effect, but the debt market is under attack. An increasing deficit will fuel inflation and force the Fed to keep rates high for longer than expected.
The collapse of Intel shares marks the failure of the "national champions" strategy: subsidies do not replace management efficiency. The market is repricing the risk that government money merely masks uncompetitiveness. Capital is fleeing to more agile players (Nvidia, AMD), ignoring political preferences.
The success of "Zootopia 2" signals Disney's recovery through the exploitation of proven IP. Demand for entertainment is concentrating around known franchises, reducing appetite for original projects. This is a stabilizing factor for shareholders, but it points to an idea crisis in Hollywood.
Solos' lawsuit against Meta and EssilorLuxottica opens a new front in the battle for wearables. This is an attempt to redistribute the market during a growth phase. A successful lawsuit could brake Meta's expansion. For investors, this is a reminder of intellectual property risks in the AR/VR sector.
The Globe and Mail
The escalation of violence in Minneapolis is creating pressure on Ottawa. The killing of a US citizen by Border Patrol agents is fueling anti-American sentiment in Canada. The risk lies in an uncontrolled flow of refugees and a hardening of the border, which threatens supply chains under the USMCA.
Rising food prices in Canada have become a structural problem: beef and coffee have surged by more than 60%. This testifies to the destruction of supply chains and climate costs. "Tax holidays" provide only a temporary effect, masking the purchasing power crisis.
The FBI Director's visit to Canada indicates the integration of a security agenda. The creation of the agency to fight financial crime (CFCA) is proceeding under Washington's curation. For the banking sector, this means rising compliance costs, and politically, a partial loss of sovereignty in enforcement.
A weak Canadian dollar and low company valuations are turning Canada into a target for foreign capital. Bank of America notes growing interest in acquisitions. For investors, this is a chance for M&A gains, but for the state, it is a risk of losing industrial potential and its tax base.
Canada's forestry industry is experiencing a historic structural decline due to falling demand and trade barriers. The "resource curse" is exacerbated by the lack of an industrial alternative. Bankruptcies will hit regional budgets, widening the gap between metropolises and the provinces.
The New York Post
Storm "Fern" left a million people without power and cancelled 12,000 flights, exposing the wear and tear on US energy grids. The system has no safety margin. Economic damage from logistics downtime will run into the billions. For politicians, this is a crisis case: the inability to provide basic services undermines trust.
The hype around Vertical Aerospace's "air taxi" masks enormous barriers. Announcements of a launch by 2028 look like an attempt to attract capital against a backdrop of stagnation. Implementation requires a redesign of airspace, which is unrealistic within the stated timeframes given New York's bureaucracy.
Alex Pretty, killed by agents, had a gun permit, which shifts the narrative to a "constitutional" level and mobilizes conservatives against federal agencies. For the Trump administration, this is a dangerous turn: DHS actions are perceived as a threat to the Second Amendment, raising the risk of clashes.
Meghan Markle's court proceedings have turned into a media asset that generates content. The victimization strategy keeps the brand alive, but audience fatigue is growing. This is a signal for media: betting on scandal content brings traffic, but carries reputational risks and has a short shelf life.
The victory of family animation over technocratic blockbusters reflects a demand for positive escapism amidst a gloomy news agenda. The market is reorienting toward "comfort" content. For investors, it is safer to invest in franchises with a "good" message than in complex dramas.