Apr 24, 2025

Today, I came across news about Indonesia being urged to cut gas subsidies to boost green hydrogen competitiveness. It was also mentioned that insurers and pensions are increasingly involved in infrastructure lending, with institutional investors taking on more debt. However, hidden risks were identified that could impact the transition to renewables and lead to higher costs for companies. On a global scale, data centers are expected to see a significant rise in electricity demand by 2030, emphasizing the importance of market-based principles for local wind energy growth.

In a separate report, a strategist named Thomas Kee suggested that a significant correction is necessary for the S&P 500 to reach fair value. Kee’s indicator has indicated a potential market meltdown, with the S&P 500 still far from its bottom. He emphasized the need to assess true risks and return to historical norms, which could result in a 40% drop in the S&P 500. Kee also mentioned the Fed’s reduction of its balance sheet as a catalyst for returning market multiples to fair value.

Furthermore, insights were shared about Trump’s future tariffs, which are expected to target goods like semiconductors, pharmaceuticals, and critical minerals. The administration’s detailed list of exemptions and categories of goods indicated potential tariff actions under Section 232 of the 1962 Trade Expansion Act. These tariffs, if implemented, could have a significant impact on imports and the overall US tariff rate. It appears that various sectors are facing challenges and uncertainties that could shape future economic developments.

In other news, Trump is continuing the global trade war with impending tariffs on the horizon. Boeing recently sold most of its digital aviation business to a private equity firm for $10.55 billion amid challenging times for the company. Thoma Bravo, the private equity firm, suggested ways for Boeing to raise capital, including selling profitable tech assets. Despite tariff disruptions affecting major mergers, Boeing’s stock price rose during the process, leading to Thoma Bravo’s acquisition.

Lastly, Gold futures reached a new intraday record, exceeding $3,500 per ounce, benefiting from the impact of the trade war on the dollar. Barrick Gold agreed to sell its stake in the Donlin Gold mining project for $1 billion to John Paulson and Novagold. Paulson anticipates continued central bank gold purchases due to geopolitical instability. Cantor is also planning to launch a “multibillion-dollar bitcoin acquisition vehicle” in collaboration with SoftBank, Tether, and Bitfinex, focusing on public listings of software companies.

Stay Well!