How Will Trump Handle International Relations?
US President Donald Trump plans sweeping foreign policy changes as he begins his second term. He has said he aims to acquire Greenland, resolve the Russia-Ukraine war and redefine NATO’s mission, Reuters has outlined; he has also threatened to seize the Panama Canal and impose 25% tariffs on Canada and Mexico. It is also thought likely that he will once again take the US out of the Paris Agreement.
Will Perplexity AI Save TikTok?
The artificial intelligence (AI) start-up has reportedly offered to merge with TikTok in the US. The deal would allow ByteDance investors to retain equity stakes, and would be a chance to boost video content in Perplexity’s AI search engine, CNBC reported. ByteDance has previously resisted selling TikTok, but may consider the merger which, according to one source, would be valued at over $50bn.
$MELANIA Outdoes $TRUMP
Bitcoin hit a record $109,340 ahead of the presidential inauguration on Monday, before retreating to $107,530. Meanwhile, Trump has launched his own memecoin, $TRUMP, which saw its market cap exceed $14bn over the weekend. However, it dropped after the launch of $MELANIA by Melania Trump, whose coin quickly reached an $8.5bn market cap, according to the Financial Times.
EU EVs: Poised for Rebound?
Electric vehicle (EV) sales in Europe are set to rebound in 2025, driven by a surge in new models and stricter emissions rules, analyst Matthias Schmidt told the Financial Times. Sales in western Europe, including the UK, are forecast to rise 40% to 2.7 million vehicles, with EVs projected to reach 22% of the market. However, profits may face pressure from regulatory costs and discounting, following last year’s slowdown.
Broadcom’s Plans for VMware
Broadcom [AVGO] bought VMware for $69bn in 2023. Now, CEO Hock Tan is positioning VMware as the leading alternative for companies wary of entrusting all their data to US cloud providers: “The key thing in AI is you use your [own] data, you train your data . . . so you keep your data on [your own] premises,” he said in an interview with the Financial Times. Two weeks ago, OPTO covered AVGO stock alongside two other chip stocks to watch in 2025.
Musk Speaks Out on China’s X Ban
Elon Musk has criticized a lack of reciprocity in US-China tech relations, after President-elect Donald Trump signaled a reprieve for TikTok in the US. Musk has cultivated a good relationship with China, which is a key market for Tesla [TSLA]; he said on X that he opposed the TikTok ban, but that “the current situation where TikTok is allowed to operate in America, but X is not allowed to operate in China is unbalanced”.
This Week’s Biggest Earnings: Did Netflix Have a Good Q4?
Earnings season is in full swing. While many of the major tech stocks don’t report until next week, OPTO has identified a few reports that you could look out for this week. Netflix’s [NFLX] foray into live sports is expected to boost subscriber numbers, while Procter & Gamble [PG] is ramping up marketing on Chinese social media platform Douyin to boost flagging sales.
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