In partnership with

TECH TODAY

Nvidia: Drops $600 billion on threat from DeepSeek

Quartz Intelligence Newsroom: Publishing AI generated articles under its title Quartz Intelligence Newsroom a confluence of aggregated articles.

Waymo: Lobbyist activity by the autonomous auto company is San Francisco reached new heights in 2024.

Modernize your marketing with AdQuick

AdQuick unlocks the benefits of Out Of Home (OOH) advertising in a way no one else has. Approaching the problem with eyes to performance, created for marketers with the engineering excellence you’ve come to expect for the internet.

Marketers agree OOH is one of the best ways for building brand awareness, reaching new customers, and reinforcing your brand message. It’s just been difficult to scale. But with AdQuick, you can easily plan, deploy and measure campaigns just as easily as digital ads, making them a no-brainer to add to your team’s toolbox.

Learn more now.

TODAY’S HEADLINE NEWS 👀

Chip Stocks Dive China’s DeepSeek Shakes Up AI Race

Global chip stocks tumbled Monday after Chinese AI firm DeepSeek revealed it could build competitive AI models using lower grade chips. The announcement raises doubts about the massive spending on cutting edge hardware from Nvidia and other tech giants.

DeepSeek’s R1 model, rivaling OpenAI’s o1-mini, was trained with a fraction of the resources typically required. The company disclosed it spent $5.6 million training its model, compared to estimates of $100 million to $1 billion for similar U.S. models.

The news rattled markets. Nvidia shares plunged 15%, Micron dropped 10%, and AMD slid 6%. AI heavy Nasdaq shed over 3%, while power companies reliant on AI data centers also took hits, GE Vernova sank 20%, and Vistra fell 27%. European and Asian chipmakers weren’t spared, with ASML and Tokyo Electron losing billions in market value.

“DeepSeek’s success signals a threat to Western dominance in AI,” said AJ Bell’s Russ Mould. Investors fear lower cost AI models could upend the demand for advanced chips.

The announcement also underscores rising tensions in the U.S. China AI race. Despite U.S. export curbs on high end chips, DeepSeek’s achievements suggest the gap is narrowing.

“This could shift the economics of AI entirely,” said XTB’s Kathleen Brooks. “If China is catching up this fast, U.S. tech might lose its edge.”

With cheaper AI models emerging, the balance of power in tech is at stake, and Wall Street is feeling the tremors.

Canadian Pacific Kansas City Reach Deal Avert Strike

Canadian Pacific Kansas City (CPKC) struck a tentative four year deal with Unifor, avoiding a potential strike by 1,200 workers. The agreement follows a vote by most Unifor members in favor of walkouts if no deal was reached by Jan. 29.

Unifor, Canada’s largest private sector union, represents mechanics, laborers, diesel attendants, and support staff. CPKC will reveal details after ratification.

The timing is crucial as CPKC prepares to report fourth quarter earnings on Jan. 29. The company posted a 6% revenue rise to C$3.55 billion and C$837 million in profit last quarter.

Meanwhile, Canadian National Railway faces a strike threat from the International Brotherhood of Electrical Workers, which issued a 72 hour notice. CN downplayed the risk, stating, “Operations will continue seamlessly.”

CN recently finalized a similar four year deal with Unifor, granting 3% annual wage increases to over 3,000 rail workers. Last summer, a Teamsters led rail shutdown was resolved only after government intervention.

Canada’s railways remain a battleground for labor negotiations, with supply chains hanging in the balance.

Colombia A Nearshoring Haven Faces Trump’s Wrath

Colombia was quietly becoming a refuge for multinational brands seeking stability amid global turmoil. Nearshoring, the trend of moving production closer to the U.S., had fueled $7.6 billion in foreign investment since 2018. Over 40% came from American companies, drawn to Colombia’s proximity, skilled workforce, and logistical advantages.

Then Sunday happened.

President Trump, angered by Colombia’s refusal to accept U.S. deportation flights, announced 25% tariffs on Colombian imports. Hours later, a deal was struck, and Colombia would accept all deported immigrants, and the tariffs were "held in reserve." For now, trade continues, but the episode underscored the unpredictability of global commerce under Trump’s tariff heavy strategy.

MedSource Labs, a Minnesota based medical equipment firm, typifies the nearshoring trend. CEO Todd Fagley, a triathlete and veteran of supply chain battles, moved production to Colombia in 2022. Rising costs in China, pandemic disruptions, and volatile tariffs made Colombia’s Cartagena, a port city with a weeklong shipping time to the U.S., a strategic choice.

MedSource’s Cartagena factory, workers like Mariselis Pajaro, who once earned $100 a month sewing, now make three times as much. Her family built a brick home and escaped poverty’s grip. For Fagley, the costs of producing in Colombia are within 10% of China’s, but the resilience and proximity outweigh the difference.

Yet, as global tensions rise, droughts crippling the Panama Canal, and missiles closing the Suez, Trump’s unpredictable tariffs loom large. Still, Fagley remains pragmatic. “What matters most are patients and supply chain security,” he texted after Sunday’s showdown.

In an insecure world, Colombia offered stability. But under Trump, no trade route is entirely safe.

Bird Flu Drives Egg Prices Higher More Hikes Expected

Eggs are vanishing from shelves, prices are soaring.

In early January, shoppers in Ozark, Mo., were stunned to find empty shelves where egg cartons once sat. Across the U.S., grocery stores face shortages of this staple protein as bird flu ravages poultry farms.

Since 2022, the H5N1 virus has killed or infected 136 million birds. In the last three months alone, 30 million egg laying hens, 10% of the U.S. supply, were culled to stop the spread. Wholesale egg prices have skyrocketed, hitting $7 a dozen, up from $2.25 last fall.

Farmers are struggling. It takes months to rebuild flocks, and hatcheries can’t meet demand for chicks. Some orders may not be filled until 2026. Meanwhile, bakers and shoppers scramble, driving hours for deals or facing purchase limits.

The situation is dire. Industry experts warn it could take six months or more for the market to stabilize if the outbreaks stop. Vaccine efforts face hurdles, from mismatched strains to trade barriers.

Until then, empty shelves and rising costs are here to stay.

U.S. Home Sales In 2024 Lowest In 30 Years

U.S. existing home sales fell in 2024 to the lowest levels since 1995. High mortgage rates, between 6% and 8% since late 2022, priced out many buyers. Home prices, taxes, and insurance costs climbed, compounding the affordability crisis.

Sales dropped 0.7% to 4.06 million, marking the second consecutive year of historic lows. That’s a third fewer sales than the boom of 2021, when cheap loans fueled demand. Inventory remains tight as homeowners with low rates refuse to sell, pushing the median home price in December to $404,400, up 6% year over year.

“The market lacks momentum,” said Rick Palacios Jr. of John Burns Research & Consulting. “As long as mortgage rates hover at 7%, optimism is hard to find.” Rates briefly surpassed 7% last week, unsettling buyers and sellers alike.

Some, like Heather and David Baxter in Morgantown, W.Va., are moving forward despite the high rates. They locked in at 6.5%, betting on future refinancing opportunities. “If rates drop, we’ll refinance,” Heather said.

Experts predict slight improvement in 2025 as inventory grows. But for now, the housing market remains a tough sell.

THIS WEEK IN BUSINESS NEWS

LOS ANGELES FIRES

Firefighters Make Progress On Fires North Of Los Angeles

SPORTS

NFL 2025 Super Bowl Is Set

The two teams to reach the Super Bowl are the Kansas City Chiefs and Philadelphia Eagles. Kansas City defeated the Buffalo Bills 32 to 23 and The Philadelphia defeated Washington Commanders 55 to 23. 🏈

Next up: Super Bowl LIX on Sunday February 9, 2025 

💰️ Smart Money Matters 💰️ 

Culture Corner

Bill Gates Wide Ranging Interview U.S. China And Regrets

Microsoft co-founder Bill Gates sat down with WSJ Editor in Chief Emma Tucker for a candid discussion about his life, philanthropy, and global issues.

Signs of Autism in Childhood
Gates reflected on his childhood, noting he likely would’ve been diagnosed as being on the autism spectrum today. While deeply focused on math and science, his parents worried about his social skills, sending him to therapy and the school where he met Microsoft co-founder Paul Allen.

Support for Spending Reform With Limits
Gates praised Trump’s Department of Government Efficiency (DOGE) initiative, led by Elon Musk, to reduce federal expenditures. However, he cautioned against cutting critical programs, particularly those funding global health efforts like HIV treatments.

On U.S.- China Relations
Gates emphasized the need for cooperation between the two superpowers to tackle global challenges like pandemics and climate change. He warned of a 10–15% chance of a natural pandemic in the next four years and said current preparedness is lacking.

Regret Over Epstein Ties
Gates called his meetings with Jeffrey Epstein a "huge mistake," admitting he was naïve to think it would help his philanthropic efforts. “In retrospect, I was foolish,” he said, adding he’s now more cautious about relationships.

Still Connected to Microsoft
Though focused on philanthropy, Gates maintains a close relationship with Microsoft and CEO Satya Nadella, spending 15% of his time on product reviews. Despite his tech background, Gates admitted he’s “not a big phone user,” much to his youngest daughter’s dismay.

With his memoir Source Code set for release next month, Gates offers new insights into his journey from childhood to building one of the world’s most influential companies.

ECONOMY

U. S. Agriculture On Edge Over Trump Tariff’s

U.S. agriculture braces for impact as Trump tariffs loom. Grain and pork exports to China, Mexico, and the EU are on shaky ground as traders dust off their 2018 playbook. Futures for corn, soybeans, and wheat fell sharply Wednesday after Trump floated tariff threats on China and the EU by Feb. 1, alongside already promised levies on Mexico and Canada.

Russia, the world’s top wheat exporter, is also in Trump’s crosshairs, though it doesn’t buy U.S. goods. On Truth Social, Trump tied tariffs to ending the Ukraine war. Markets took note grain futures turned volatile, with corn down 1.5%, soybeans 1.4%, and wheat 1.1%.

Jason Britt of Central States Commodities says Trump’s strategy is classic: big threats as bargaining chips. Others, like Naomi Blohm of Total Farm Marketing, believe tariffs are inevitable, viewing Trump’s moves as signals for backdoor talks.

China, the top buyer of U.S. soybeans, remains the biggest question mark. High level Chinese attendance at Trump’s inauguration hints at possible dealmaking, but no clarity has emerged.

If tariffs land, expect market chaos. For now, traders remain jittery, watching Trump’s next move with caution and bracing for volatility. Grain and livestock futures may feel the fallout long before February rolls in.

FINANCE

CFO Optimism For 2025 Runs High

With elections behind them and 2025 ahead, CFOs are eyeing brighter days. Deloitte’s Q4 CFO Signals Survey shows optimism climbing sharply. Seventy two percent of finance leaders now expect the North American economy to improve within a year, up from 19% last quarter. Confidence in Europe is also rising, with 37% forecasting better conditions, a notable rebound.

Revenue and earnings projections reflect this shift. CFOs predict a 10.8% revenue boost in 2025, compared to just 2.4% last quarter. Earnings estimates jumped to 7.6%, up from 2.1%. Risk appetite is back to with as 67% say it’s a good time to take risks, a dramatic leap from 12% in Q3.

Capital spending is set to surge, with organizations planning an 8.7% increase, fueled by record cash reserves and lower interest rates. While 46% of CFOs plan to hold cash, 44% aim to invest in new ventures, and 43% are eyeing acquisitions, buoyed by expectations of relaxed antitrust policies under the new administration.

Tech and talent dominate internal priorities. Generative AI deployment and agility concerns top worries at 51%. Wage growth, projected at 7.3%, signals tightening labor markets. CFOs plan to link pay to performance, promote from within, and rework benefits to manage costs. Upskilling and automation rank high for 2025 workforce strategies.

Despite rising optimism, challenges loom. CFOs remain wary of economic risks, geopolitical tensions, and market volatility. Yet, as Steve Gallucci of Deloitte notes, finance leaders are balancing growth opportunities with caution, positioning their firms for long term success. The survey, conducted in November, included 200 CFOs from companies with over $1 billion in revenue.

POLITICS

Senate Confirms Scott Bessent as Treasury Secretary

The Senate voted 68-29 on Monday to confirm Scott Bessent as Treasury secretary, placing the billionaire hedge fund manager at the helm of President Trump’s economic agenda. With plans to push tax cuts, tariffs, and deregulation, Bessent will play a pivotal role in shaping Trump’s “America First” vision.

Bessent, the first openly gay Treasury secretary, brings financial market expertise but no government experience. During his confirmation hearing, he revealed past barriers to public service due to his sexual orientation. He steps into the role with strong bipartisan support, including 16 Democratic votes.

His priorities include addressing the debt limit, revamping Treasury’s policies, and taking a hard line on China’s trade commitments. He’s also tasked with studying Trump’s proposed “External Revenue Service” and reviewing global tax practices that could harm American interests.

The departure from the Biden administration’s focus on equity and climate is stark. Bessent plans to end remote work at Treasury and close programs tied to those initiatives.

One immediate challenge will be managing federal finances if Congress stalls on the debt ceiling, with potential default looming this summer. Bessent will also oversee changes at the IRS, whose commissioner resigned on Trump’s inauguration day.

Facing scrutiny over his tax practices, Bessent defended his compliance with the law and vowed to resolve any conflicts. Despite this, he promised a new “economic golden age” under Trump’s second term, aiming to deliver jobs, prosperity, and growth for all Americans.

THE GRIND FACTORY ⚙️

UNIQUELY INTERESTING

💡 Epiphany Moments

Starbucks began in 1971, as small shop in Seattle's Pike Place Market. Three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker sold high quality coffee beans, tea, and spices. It became a local favorite, known for its focus on quality.

In 1982, Howard Schultz joined the company. A trip to Italy inspired him when he saw coffeehouses as gathering places and imagined Starbucks becoming more than just a seller of beans. By 1987, with investors’ help, Schultz bought the company and set his vision in motion.

Starbucks grew quickly, transforming into a coffeehouse chain. Espresso drinks, lattes, and cappuccinos became staples. Stores opened across the U.S., then the world. Starbucks became a global phenomenon with thousands of locations.

Innovation followed soon thereafter. New drinks, food, and mobile ordering kept customers coming back. Starbucks also embraced social responsibility, ethical sourcing, sustainability, and community engagement became part of its brand.

Today, Starbucks is more than coffee. It’s a cultural icon, a meeting place, and a symbol of modern life. Built on quality, customer experience, and constant evolution, Starbucks became a brand the world recognizes and loves.

 🍎 One Smart Apple

Sun Microsystems was born on February 24, 1982, the brainchild of four innovators, Scott McNealy, Vinod Khosla, Andy Bechtolsheim, and Bill Joy. The idea for the company came from Bechtolsheim’s project at Stanford University, where he built the Sun-1, a powerful workstation running Unix operating system with advanced graphics capabilities.

The name “Sun” stood for Stanford University Network, a nod to its academic origins. From its start Sun Microsystems made waves with groundbreaking ideas, carving out a niche in network computing. They pioneered technologies like the Java programming language and the Network File System (NFS), reshaping how systems communicated.

Sun’s rise was swift, and widely exposed in the business press. Their high performance workstations and servers became staples across industries, known for reliability and speed. By the early 2000s, the company had solidified its place as a tech titan.

All good stories have a good ending. In 2010, Oracle Corporation acquired Sun Microsystems for $7.4 billion, folding its legacy into Oracle’s operations. It was the culmination of decades of innovation that was born from collaboration and vision. 🍏 

 HEALTH & LONGEVITY •ᴗ• This Week For A Long Life

Want To Live To 100+ Luck And Genes Will Help But Lifestyle Rules

When 100 year old Helen Reichert lit a cigarette, she quipped that her doctors, who told her to quit, were all dead. And yet, she wasn’t. She lived nearly a decade longer, proving centenarians don’t always follow the rules. Don’t let her story fool you though because for most of us, lifestyle is the key to longevity. Cigarettes won’t help us live longer, frankly, its just the opposite.

To hit 80 or 90, healthy habits matter, eat well, exercise, sleep enough, manage stress, build relationships, and skip the smokes, opioids, and binge drinking. A study of U.S. veterans showed these behaviors could add 24 years, putting you in your 80s, a solid win, but not centenarian status.

Hitting 100, now that’s where genetics swoop in. Research shows your DNA takes the wheel past 90. Genes like APOE2 and FOXO3 can shield against diseases like Alzheimer’s and keep cells spry. Centenarians fate often come down to carrying these rare “lottery” genes, countering unhealthy habits that would sink the rest of us. And to test fate could prove fatal.

Still, these genes are rare, occurring in less than 1% of the population, and the same slim odds as making it to 100. So unless you’ve got a golden genetic ticket, stick to healthy living. For most, it’s the surest path to more candles on the cake 🎂 

And no, lighting one won’t help. Leave the cigarettes to Helen.

 🚀 ADVERTISE WITH US (reply to this email to learn more)

Turn Anonymous Website Visitors Into Customers With Our AI BDR

Stop letting anonymous site traffic slip away. Our AI BDR Ava identifies individuals on your website without them providing any contact information and autonomously enrolls them into multi-channel sequences.

She operates within the Artisan platform, which consolidates every tool you need for outbound:

• 300M+ High-Quality B2B Prospects, including E-Commerce and Local Business Leads

• Automated Lead Enrichment With 10+ Data Sources

• Full Email Deliverability Management

• Multi-Channel Outreach Across Email & LinkedIn

• Human-Level Personalization

• Convert warm leads into your next customers.

Hire Ava to slash costs & boost productivity.

We value your voice and encourage you to connect with us. Follow us on social media to stay updated, or reply directly to this email. We read every message. Your feedback keeps us going, so please let us know how we’re doing.

The Grind may earn an affiliate fee if you purchase books, products, or services through our links.