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TECH TODAY

U.S. Teens: Teens lose faith in big tech.

Zuckerberg Flexes: Mark shrugs off DeepSeek and pledges to spend hundreds of billions on building AI.

Another Tesla Claim: Musk claims Tesla will launch a driverless vehicle in Austin by June. Will this Musk claim come true?

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TODAY’S HEADLINE NEWS 👀

UPS Cuts Ties with Amazon Stock Tanks

UPS is walking away from Amazon. Over the next 18 months, it will phase out more than half its business with the eCommerce giant, slashing a relationship that made up 12% of its revenue.

The move hits hard. UPS expects 2025 revenue to drop to $89 billion, well below Wall Street’s $95 billion estimate. Shares plummeted 14% to their lowest point since 2020.

CEO Carol Tomé made it clear, Amazon was big, but not profitable enough. “Amazon is our largest customer, but it’s not our most profitable customer,” she said. UPS will shift focus to higher margin sectors like healthcare, small businesses, and international shipping.

To offset the loss, UPS is cutting labor hours, downsizing its fleet, and streamlining operations, moves expected to save $1 billion. It also ended its SurePost partnership with USPS, taking last mile delivery in house.

Analysts were surprised by how fast UPS is moving. “The speed of the glide down is five times faster than our initial efforts,” said CFO Brian Dykes.

UPS beat earnings expectations last quarter, posting $1.72 billion in profit. But with Amazon scaling up its own delivery network, UPS is betting that shedding low margin business now, will pay off later.

Levi’s Goes Big on Data And Jeans

Levi’s knew baggy jeans were trending with young shoppers. But data showed everyone wanted them so Levi’s listened to the data.

In 2020, Levi’s teamed up with Google Cloud, pulling purchase trends from 110 countries and 50,000 stores. Machine learning crunched the numbers. The surprise was Roomier fits weren’t just for Gen Z men, older shoppers, and longtime 501 fans wanted baggy too.

Armed with this insight, Levi’s doubled down on loose fits, launched marketing like “Live Loose,” and stocked up on product. Sales followed, baggy styles jumped 15% last quarter. Even Levi’s digital chief, once a slim fit guy, is now going wide leg.

For years, Levi’s had data but no clear picture. Now, Google tools help predict trends, manage stock, and guide design. The result has been a 172-year old brand using AI to stay ahead, and keep customers in jeans that fit the moment.

Trump’s Tariff Threats Rattle U.S. Oil Industry

Trump’s plan to slap 25% tariffs on Mexican and Canadian imports could throw U.S. refineries into chaos and drive up gas prices. The U.S. produces plenty of oil, but refineries rely on heavier crude from Canada and Mexico to make gasoline and diesel.

If Trump follows through, Midwest gas prices could jump 15 to 20 cents per gallon. Refiners may struggle to find substitutes, and production cuts could follow. The American Petroleum Institute is urging exemptions, warning tariffs would undercut energy affordability.

Oil companies are already feeling the squeeze. Exxon reported $7.61 billion in fourth quarter profits, barely up from last year. Chevron’s profits surged 43% but missed Wall Street expectations. Refiners like Valero are bracing for disruption, with contingency plans in place.

Trump hinted oil could be exempt. But for now, the industry waits nervously, watching, and preparing for a mess.

Trump’s Tariff Shake Mexico’s Manufacturing Boom

Mexico has become the go to factory floor for companies looking to cut costs and avoid China. Big names like Adidas, Samsung, Honda, and Volvo have set up shop, drawn by cheap labor, proximity to the U.S., and favorable trade deals.

But Trump’s latest threat, a 25% tariff on all imports from Mexico and Canada, has businesses scrambling. Japan’s Toyota, which has invested heavily in Mexico, now faces uncertainty. Chinese firms like BYD and Lenovo, hoping to sidestep U.S. - China tariffs, could get caught in the crossfire.

For many, moving production to the U.S. isn’t realistic. Costs are high, labor is scarce, and supply chains are already built. Some companies may shift a few operations stateside, but most will wait and see.

Global trade is changing, shaped by U.S.- China tensions. Whether Trump’s tariffs happen or not, businesses will be forced to adapt.

THIS WEEK IN BUSINESS NEWS

Southwest Airlines Turns a Profit Sees Strong Demand

Southwest Airlines bounced back. The carrier posted a $261 million profit in the fourth quarter, a sharp turnaround from last year’s $252 million loss. Earnings hit 56 cents a share, beating analyst expectations of 46 cents. Revenue climbed to $6.93 billion, just shy of projections.

CEO Bob Jordan said strategic improvements are kicking in faster than expected but acknowledged there’s still work to do. Demand remains strong, with revenue per available seat mile expected to rise 5% to 7% in early 2025.

Southwest also launched a $750 million accelerated buyback as part of its $2.5 billion repurchase plan.

The upbeat results mirror Delta’s recent report, holiday travel demand soared, and airlines see no signs of slowing.

Shell’s Profit Drops But Investors See Silver Lining

Shell’s earnings took a hit. Adjusted profit fell to $3.66 billion, missing the $4.1 billion analysts expected and plunging from $6.03 billion last quarter. Weak oil prices and refining margins dragged results down.

Still, the market shrugged. Cash flow surged past expectations, hitting $54.68 billion for the year, Shell’s second best ever. The company kept its $3.5 billion share buyback intact and raised its dividend by 4%. Shares climbed 1.3% in London trading.

Debt increased by $3.6 billion due to LNG pipeline costs, but net debt ended the year nearly $5 billion lower. Capital spending is set to drop in 2025, fueling hopes of more buybacks.

Production guidance edged up. Shell expects gas output between 930,000 and 990,000 barrels a day in early 2025, up from 905,000 last quarter. Oil and gas extraction is forecast between 1.75 million and 1.95 million barrels daily.

Full year profit landed at $16.79 billion, down from $20.28 billion in 2023. The big picture seems to be lower earnings, but plenty of cash. Enough to keep investors patient for now.

Michael Dell’s Bank Expands to Advise Tech Founders

Michael Dell wants better advice for tech founders. BDT & MSD, the merchant bank he helps lead, is expanding its reach, hiring top Goldman Sachs banker Ryan Nolan to co-lead its technology practice. Nolan, close to OpenAI, has worked on major tech deals, including VMware’s $69 billion sale to Broadcom.

BDT & MSD specializes in advising founder led businesses, investing in them through a fund backed by other business owners. It emerged from a 2023 merger between Byron Trott’s BDT and MSD Partners, which traces its roots to Dell’s family office.

The firm has been pulling top tech founders into its network, including Canva’s Mel Perkins, Airbnb’s Joe Gebbia, and Stripe’s John Collison. Its pitch: advice, capital, and a way to diversify wealth. It plans to launch a new fund targeting high growth, founder led tech firms, with Dell and other prominent backers expected to invest.

With Nolan and former Kleiner Perkins investor Juliet de Baubigny now leading the tech arm, BDT & MSD is positioning itself as the go to partner for tech moguls looking beyond Wall Street.

Billionaire Clash Over Soho House Buyout

Soho House is still a hot ticket for the ultra rich. Once the go to club for power brokers, its rapid expansion dulled its exclusivity. Now, billionaire Dan Loeb is fighting a buyout bid backed by fellow tycoon Ron Burkle.

Loeb’s hedge fund, Third Point, revealed a nearly 10% stake in Soho House, calling the $1.7 billion deal a “sweetheart” arrangement. In a letter to the board, Loeb argued the sale process lacked transparency and failed to secure the best price for shareholders.

Founded in London in 1995, Soho House became a celebrity magnet, its New York outpost gaining fame after a Sex and the City cameo. The club swelled to 42 locations, but overcrowding and soaring memberships have hurt its appeal.

Burkle, who has chaired the company since acquiring a majority stake in 2012, led a $9 a share buyout offer, well above market value. But Loeb wants the board to seek higher bidders, arguing members would benefit from a more visionary owner.

Shares of Soho House jumped 11% after Loeb’s challenge. The battle for the club’s future is just getting started.

Frontier Lures Bid For Spirit Airlines But Spirit Isn’t biting

Frontier Airlines has already failed to acquire Spirit once. Sprint, which filed for bankruptcy in November, rejected Frontier’s latest offer, saying it was too risky and worse than previous discussions. Frontier is now appealing to Spirit’s bondholders, arguing a merger would be better than Spirit trying to recover alone.

Frontier’s leadership warned that Spirit’s bankruptcy plan would leave it heavily in debt and unprofitable. Spirit, however, insists it will emerge from Chapter 11 as planned and sees no reason to delay.

A court hearing on Spirit’s restructuring plan is set for Feb. 13. Under that plan, creditors would get $840 million in secured notes and full ownership of the airline. Frontier’s counteroffer includes $400 million in notes and a 19% stake in a merged airline it claims would be far more valuable.

The budget airline sector is struggling, squeezed by larger carriers offering cheap fares and an engine defect grounding planes. Spirit is cutting costs, including 200 job cuts, while Frontier is eyeing a potential regulatory shift under a Trump administration to push its deal through.

Frontier shares rose 5.9% Wednesday, while Spirit stock jumped 21.9% in over the counter trading.

Levi Strauss Issues Revenue Drop Warning

Levi Strauss warned of a revenue drop in 2024 despite a rebound in its wholesale business. Shares fell 7% in after hours trading.

The company expects full year revenue to decline 1% to 2%, missing Wall Street’s forecast of 3.6% growth. Adjusted earnings are projected at $1.20 to $1.25 per share, below the expected $1.37.

Fourth quarter results beat expectations. Net income rose to $183 million, or 46 cents per share, up from $127 million a year ago. Revenue jumped 12% to $1.84 billion, driven by strong U.S. growth. Wholesale sales climbed 6.7%, and direct to consumer sales surged 19%.

CEO Michelle Gass is shifting focus to direct sales, with the company looking to sell its struggling Dockers brand. CFO Harmit Singh said Levi is benefiting from lower costs and manageable inflation.

Tariffs on Chinese and Mexican imports pose little risk, with Levi sourcing just 5% of goods from Mexico and less than 1% from China.

Energy And Service More Important Than Tesla’s Cars

Tesla profits edged up 3%, driven by energy and service growth, but auto revenue slipped. Net income fell 71% due to a tax benefit last year.

Sales rebounded in Q4 after heavy discounts, but full year deliveries dipped 1%, Tesla’s first annual decline in over a decade.

Energy revenue doubled to $3 billion, helping offset price cuts on vehicles. Regulatory credit sales jumped 60% to $692 million. Operating margin dropped to 6.2% from 8.2%.

Musk juggles Tesla, politics, and AI. Investors though bet on cheaper EVs in 2025 and self driving tech. Wall Street is watching his ties to Trump as EV tax credits and tariffs loom on the political horizon.

In A Struggling Logistics Market C.H. Robinson Shines

C.H. Robinson’s profit surged for a third straight quarter as efficiency gains outweighed a sluggish freight market. The company reported $149.3 million in profit, or $1.22 per share, up from $31 million a year ago.

Revenue dipped 1% to $4.18 billion, missing analyst expectations, as weak trucking rates offset growth in ocean freight. Still, the freight broker’s stock is up 30% over the past year, driven by CEO Dave Bozeman’s focus on lean operations.

Bozeman credited rising profits to cost-cutting and automation. The company cut headcount by 10%, boosting productivity 30% over two years. AI driven systems now save up to 500 hours daily on manual processing.

Despite a freight recession, C.H. Robinson used dynamic pricing to keep customer costs down while maintaining margins. “Our productivity gains are permanent,” Bozeman said.

GM Braces And Has Plans For Trump’s Tariffs

General Motors isn’t hitting the panic button just yet. As President Trump threatens 25% tariffs on Canadian and Mexican imports starting February 1, GM executives are watching closely but holding off on major moves.

“We’re prepared but won’t act unless tariffs become permanent,” CFO Paul Jacobson said Monday.

Tariffs would hurt General Motors. GM produced nearly 900,000 vehicles in Mexico last year, including the Chevy Silverado and GMC Sierra, key profit drivers. CEO Mary Barra said the company could shift production back to U.S. plants or redirect trucks from Canada and Mexico to other markets if needed.

Despite challenges, GM’s North American operations remain a bright spot, driving nearly all of its $6 billion profit in 2024, down from $10.1 billion in 2023. EV production is growing but missed targets, with 189,000 units built versus a 200,000 goal.

Shares fell 10% Tuesday on tariff fears. Analysts warn trade policy could hurt demand and profits. GM, however, remains optimistic about its diverse vehicle lineup and plans to pay $14,500 bonuses to 46,000 UAW workers, a nod to its strong U.S. performance.

For now, GM is staying steady, ready to adapt as the political winds shift.

Vail Resorts Under Fire As Investors Demand Overhaul

Vail Resorts is facing heat. Late Apex Partners, its largest shareholder, blasted the company’s performance in a scathing letter, calling the last five years “unacceptable.”

The firm wants sweeping changes sush as the ousting of CEO Kirsten Lynch, CFO Angela Korch, and Executive Chairman Rob Katz, slashing the dividend by 80%, and hiring a proven leader. “Vail is fixable, but the board must act now,” Late Apex declared.

Vail’s struggles are mounting. Season pass sales are down. A ski patrol strike at Park City left customers fuming. Meanwhile, competitors multi resort passes are cutting into Vail’s Epic Pass dominance.

Shares rose 2% Monday to $170 but remain 23% lower this year and 54% off their 2021 peak. Vail hasn’t commented. Investors are waiting, and watching.

Smithfield Foods Faces Scrutiny Under Chinese Ownership

Smithfield Foods, under Chinese control for over a decade, is pitching itself as America’s pork powerhouse. But its future may hinge on U.S. - China trade relations, now at a crossroads under former President Trump’s policies.

The company returned to the U.S. stock market Tuesday, trading under the Nasdaq ticker SFD. Its IPO priced shares at $20, raising $522 million and valuing the pork giant at $8 billion.

Founded in 1936 in Virginia, Smithfield is America’s top pork processor and hog producer. But since WH Group, a Hong Kong based company, acquired it for $4.7 billion in 2013, critics have questioned foreign ownership of key U.S. agricultural assets.

Smithfield CEO Shane Smith insists the company remains deeply American, despite WH Group keeping a 90% stake. “We’re an American company, American management team, and made in America,” Smith said.

China has boosted Smithfield’s bottom line, with strong demand for parts Americans overlook, pigs’ heads and feet. WH Group’s know how even improved processing methods, fetching premium export prices. But trade tensions loom large, with potential tariffs threatening U.S. pork exports.

Meanwhile, lawmakers grow uneasy about Chinese control over U.S. farmland. Smithfield recently sold off 40,000 acres, reducing its holdings to 85,000 acres tiny compared to total U.S. farmland.

Facing pressure from excess hog supplies and immigration related wage hikes, Smithfield is turning to automation and plant upgrades. Packaged meats, already 58% of its sales, are a key growth area, offering steadier profits than raw pork.

With profits still strong despite industry challenges, Smithfield is banking on its U.S. roots and a revamped focus to keep its edge even as geopolitical crosswinds swirl.

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.

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

Fed Paused Rate Cuts Amid Inflation Risks and Trump’s Pressure

The Federal Reserve held interest rates steady Wednesday, keeping them at 4.25 to 4.5 percent. Chair Jerome Powell said the economy is strong and inflation remains uncertain. The central bank sees no rush to cut further.

Since September, the Fed has lowered rates by a full percentage point over three meetings. Powell signaled more cuts could come but made it clear there is no urgency. Growth is steady, the labor market is solid, and inflation is still in check.

"We do not need to be in a hurry to adjust our policy stance," Powell said.

The Fed is walking a fine line. It wants to bring inflation down without weakening the job market. Cut too fast, and inflation could stay high. Cut too slow, and businesses could struggle. Powell said the risks remain balanced.

Bond yields are rising. Investors expect stronger growth and persistent inflation. Powell noted this makes financial conditions tighter, helping the Fed’s efforts to slow inflation.

Markets are watching. President Trump’s second term agenda could shake the economy. He promises tariffs, mass deportations, and a manufacturing revival. These policies could fuel inflation or slow growth. Powell refused to comment on them, saying the Fed will react only once policies are clear.

Trump did not hold back. He attacked Powell and the Fed on social media, blaming them for inflation. He promised to cut rates himself, by boosting energy production, slashing regulations, and reshaping trade.

Inflation remains the key concern. Last month, data showed price pressures easing. But the Fed remains cautious. In December, officials cut their 2025 rate projections in half. Some feared Trump’s policies could push prices higher.

The central bank will watch how businesses and consumers react. If inflation expectations rise, the Fed may delay cuts. During Trump’s first term, trade tensions led the Fed to lower rates. This time, inflation is not below target, so the response may be different.

Powell tried to calm inflation fears. Consumer expectations remain steady, he said. Short term worries exist, but long term outlooks have not shifted.

Trump’s team disputes inflation concerns. Treasury Secretary Scott Bessent argues tariffs won’t raise prices. A stronger dollar, he says, will offset costs. Foreign manufacturers may lower prices to stay competitive.

Trump insists inflation will fall under his policies. He vows oil prices will drop, forcing the Fed to cut rates. He wants action now.

Powell stands firm. The Fed remains independent, he said. No politics, just data. For now, that means holding steady.

FINANCE

Corporate America Retreats from Tying DEI to Executive Pay

Big companies are scaling back diversity, equity, and inclusion (DEI) goals in executive compensation. Twenty nine S&P 500 firms dropped DEI from pay metrics in 2024, up from 20 last year, says advisory firm WTW. Meanwhile, only 26 companies added such goals, down sharply from 81.

The trend comes as conservative activists, energized by the 2023 Supreme Court ruling against affirmative action, push back on DEI. President Trump’s return has added pressure, with orders to dismantle DEI programs in federal agencies and scrutinize diversity policies at corporations.

Prudential Financial scrapped DEI linked incentives, citing progress in diversity since adding them in 2018. FirstEnergy reduced DEI’s weight in bonuses, prioritizing operational targets. Companies like Becton Dickinson and Accenture are shifting DEI goals from financial metrics to broader language or personal performance targets.

Still, 57% of S&P 500 firms tied executive pay to DEI in 2023, a slight dip from 58%. But with proxy season looming, more companies may drop these metrics entirely.

Costco, facing criticism from activists, defended its DEI linked bonuses, calling them integral to its business. Shareholders backed the stance, rejecting anti DEI proposals by 98%.

For now, many firms rethink DEI ties but maintain the commitment. “It’s not about abandoning DEI,” said Ryan Colucci of CAP. “It’s about managing it thoughtfully without unnecessary risk.”

POLITICS

Trump’s Second Week In Second Term Shake-Ups and Legal Battles

Already sending out ICE agent to find immigrants in the U.S. illegally, Trump is ruffling feathers and pushing legal boundaries. Here is some of just today’s activities:

Federal Workforce Purge
Trump wants fewer federal workers. On Tuesday, his administration gave two million employees a choice, resign now and get paid through September. The deadline is Feb. 6. Critics call it a loyalty test. Given one of his top advisors is Elon Musk one can assume this directive was designed by Musk since its that same tactic he took after acquiring Twitter, now X.com.

Milley Targeted
Defense Secretary Pete Hegseth stripped Gen. Mark Milley of his security detail and clearance. The Pentagon says an inspector general probe is coming. Trump loyalists have long viewed Milley as a political enemy.

Federal Money Freeze
A D.C. judge blocked Trump’s attempt to freeze trillions in grants and loans. The administration says it’s about cutting “woke” programs. But Medicaid and other services are already disrupted, leaving millions in limbo.

Trumps second term is off to a stormy start. Check back for tomorrows forecast 🤷 

Trump Wields Tariff’s As A Global Hammer 🔨

President Trump wasted no time flexing his trade war muscles. In his first week, he issued tariff threats to nations worldwide. Stop drugs, take back deportees, end wars, or pay the price.

His favorite weapon has been tariffs. Colombia was hit with a 25% tariff ultimatum for refusing deported migrants, which doubled to 50% in hours. By nightfall, Colombian President Gustavo Petro caved. Trump’s message was and still is comply, or suffer economic pain.

Trump also threatened Canada, Mexico, and China with tariffs unless they curbed drugs and migration. Even Denmark wasn’t spared, cede Greenland or face levies. Russia, end the Ukraine war, or else.

Critics call his moves unprecedented. “Tariffs could now be a tool for anything,” said trade lawyer Ted Murphy. Even free trade pacts offer no immunity, Trump leans on sweeping powers like the International Emergency Economic Powers Act to bypass the usual trade playbook.

Foreign leaders scramble to counter. Europe’s top diplomat, Kaja Kallas, urged unity, warning of Trump’s “transactional” policies.

Still, Trump’s tariffs aren’t just sticks, they’re statements. The Board is set, battles loom, and global trade braces for his hardball tactics, sans diplomacy.

THE GRIND FACTORY ⚙️

UNIQUELY INTERESTING

💡 Epiphany Moments

In-N-Out a burger love story. Once upon a time, in the golden land of California, a tiny burger stand popped up in 1948. Harry and Esther Snyder, a duo as iconic as fries and a milkshake, set up shop in Baldwin Park. Their humble kingdom? A 100 square foot drive thru, California’s very first.

Harry, the food wizard, personally handpicked fresh ingredients at the market each day, while Esther, the numbers queen, kept the books in check from their cozy home nearby. But Harry wasn’t just about flipping patties, he was an innovator. He built a magical two way speaker box, letting customers order burgers without stepping out of their cars, a concept as futuristic then as flying cars are now.

That little speaker, and a whole lot of fresh, never-frozen goodness, helped In-N-Out live up to its name. Over the years, the Snyders’ devotion to quality, simplicity, and happy customers turned their tiny stand into a legendary West Coast obsession. The secret? No freezers, no microwaves, just fresh ingredients, loyal fans, and the kind of burgers that make people write love letters.

And so, In-N-Out wasn’t just a burger joint, it became a California rite of passage, a cult, a craving, and a love story in every bite.

 🍎 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.

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