Good Morning! Stocks officially lost all of their post-election gains, with tariffs spooking investors. Canada’s PM Trudeau blamed Trump for starting a trade war, while Commerce Secretary Lutnick hinted at a possible trade compromise.

DOGE is targeting federal contracts with consulting firms like McKinsey, Bain, and BCG. KKR plans to raise $1.5 billion through a stock offering, and Walgreens is nearing a $10 billion deal to go private.

Plus: Goldman is cutting 3% to 5% of its workforce (targeting VPs), Sweetgreen is rolling out fries nationwide, FTX’s CEO is up for a $41 million bonus, and why your grocery bill is about to go up.

Invest in leading private credit funds – earn up to 11% yield with Heron Finance.

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BlackRock 🤝 Panama Canal

BlackRock just pulled off one of its biggest infrastructure deals yet, leading a $23 billion acquisition of two major ports at the Panama Canal. The firm is taking over Balboa (Pacific side) and Cristóbal (Atlantic side) from Hong Kong-based CK Hutchison, as Trump ramps up pressure on Chinese influence in the region.

The Panama Canal, a 50-mile waterway connecting the Atlantic and Pacific Oceans, is one of the most critical trade routes in the world. The two ports BlackRock is acquiring don’t control the canal itself, but they sit at both entrances, making them vital for global trade.

Trump has recently claimed, “China is running the Panama Canal, and we’re taking it back.” This deal may be BlackRock’s way of aligning with U.S. efforts to regain influence over strategic infrastructure.

Beyond the Panama Canal, the deal is even bigger. BlackRock’s 90% stake in Panama Ports Company (PPC) comes with control over 43 ports across 23 countries, solidifying its role as a dominant force in global trade logistics.

The remaining 10% stake in PPC will stay with PSA International, a Singapore-based port operator backed by its sovereign wealth fund. CK Hutchison, which has operated these ports since 1997, will walk away with a $19 billion windfall from the sale.

This move follows Panama’s exit from China’s Belt and Road Initiative (BRI)—the first Latin American country to do so. U.S. officials have long seen Chinese-controlled ports as a security risk, and BlackRock’s takeover could ease tensions in Washington. The firm has already briefed the Trump administration and Congress, likely smoothing any regulatory hurdles.

While the Panama Canal Authority (ACP) remains in full control of the waterway itself, the canal is a massive moneymaker, generating nearly $5 billion in profits in 2024 alone.

Takeaway: For Trump, this deal checks a lot of boxes—a major foreign asset shifting from a Hong Kong-based company to an American-led group, just as he pushes for tighter control over trade routes. While he’s even floated military action in Panama, BlackRock may have just handed him a cleaner solution.

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Earn Income from Leading Private Credit Funds

It's been said that investing legend Warren Buffett's #1 rule is: “Don’t lose money.”

And if you don’t want to lose money, investing in private credit might just be able to help, especially in a volatile market.

Here's why…

Heron Finance’s private credit portfolio has had 0 down months since the start of 2023. Not many assets can say that. 

In fact, since January 2023, the largest high-yield bond and real estate ETFs all suffered from five or more down months. Although past performance does not guarantee future returns, for investors looking for stable passive income, Heron’s Personalized Private Credit portfolio delivers consistent returns.

How does Heron do it?

Heron builds you a personalized portfolio with exposure to the world’s largest private credit funds from Ares, Apollo, and more – targeting up to 11% yield after fees.

And when it comes to fees, Heron gives investors access to the lowest share class for all of the funds on its platform, which in most cases saves you 0.85% annually compared to directly investing in funds.

_HEADLINES

Top Reads

• Trump ‘bump’ disappears as the S&P 500 is now negative since the election (CNBC)

• Lutnick says Trump tariff with Canada, Mexico likely ends with meeting in the middle (Fox)

• Walgreens on verge of being sold to a private-equity firm for $10B (NYP)

• President Trump's speech to Congress pumps inflation fight from eggs to energy (Fox)

• Sweetgreen adds fries to menu at restaurants nationwide (Axios)

• KKR aims to raise $1.5 billion in 3-year convertible stock offering (YF)

• DOGE cost cuts zero in on top U.S. consulting firm contracts (Inc)

• Goldman Sachs rolls out suite of downside protection ETFs as market volatility picks up (CNBC)

• No, the economy probably isn't in Q1 freefall (Axios)

• California orders nearly 100,000 workers to return to office (BB)

• Goldman moves up annual job cuts targets 3% to 5% of staff (BB)

• TikTok parent ByteDance valuation rises in latest share buyback (YF)

• FTX CEO who led model bankruptcy is up for $41M bonus (BB)

• Judge opens door to possible bidding war for Paramount as it scrambles to close $8B Skydance merger (NYP)

• Trump admin plans to sell hundreds of government properties (Fox)

• Pay soars at Barclays and HSBC after end of UK banker bonus cap (Guardian)

• Your grocery bill is about to go up (LI)

_{CAPITAL PULSE}

Markets Rundown

Tariffs Spark Volatility as Stocks Slide and Bonds Climb

On Tuesday, equity markets stumbled in a choppy session as new U.S. tariffs—25% on Canada and Mexico imports (except 10% on Canadian oil and gas) and an additional 10% on China—took effect, dragging sectors like financials  and industrials down hardest.

Globally, Asia slumped after China slapped 10%-15% tariffs on U.S. agricultural products, stoking fears of a widening trade spat, while Europe faltered, with automakers hit worst.

The U.S. dollar softened against major currencies, and WTI oil dipped as OPEC plans April output hikes amid tariff pressures on Canadian crude. 

Bond yields ticked up, with the 10-year Treasury at 4.21%, though still down 60 basis points from January’s peak, reflecting risk-off sentiment and slower growth bets—boosting investment-grade bonds nearly 3% year-to-date. 

Canada fired back with 25% tariffs on C$30 billion of U.S. goods (plus C$125 billion in 21 days), a minor sting to the U.S.’s $29 trillion GDP, while Mexico gears up for its own retaliation by weekend.

Markets now see two to three Fed rate cuts in 2025, targeting a 3.5%-4.0% Fed funds rate, as PCE inflation (at 2.5% in January) edges toward the Fed’s 2% goal, hinting at a shift to neutral policy—though tariff-driven inflation risks and currency swings could complicate the outlook.

Movers & Shakers

• (+) Okta ($OKTA) +24% after strong earnings and guidance beat.

• (+) GitLab ($GTLB) +12% because the software company posted Q4 earnings.

• (–) Best Buy ($BBY) -13% after the CEO warns of price increase tariffs.

Private Dealmaking

• Honeywell bought Sundyne for $2.16 billion

• Jamf acquired Identity Automation for $215 million

• Callio Therapeutics, an antibody-drug developer, raised $187 million

• Odeko, a supply chain software provider, raised $126 million

• Aescape, a therapy devices maker, raised $83 million

• Mews, a hotel management SaaS, raised $75 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{BOOK OF THE DAY}

99% Perspiration

“Genius is one percent inspiration and ninety-nine percent perspiration.” This phrase, arguably Thomas Edison’s most famous quote, has been drilled into the minds of generations of Americans.

A fairly straightforward iteration of the idea that innovation, discovery, and ingenuity are the result of drive and grit above all, it has also come to represent much darker myths: that hard work always leads to success and that achievement is the product of individuals and not communities. In this model, those who come out on top are there because they earned it, and everyone else needs to buckle down, glove up, and, maybe one day, they’ll get there too. 

As the wealth gap widens, communities crumble, and Americans work more for less, Adam Chandler raises the question: What happens when perspiration isn’t enough? To answer it, he crisscrosses the country interviewing mayors, teachers, generals, pastors, construction workers, and entrepreneurs, to reveal just how untenable relying on “perspiration” as a strategy has truly become.

He also delves into America’s past to reveal how our government, education system, and culture at large have woven the idea of meritocracy deep into the fabric of American society and how some of history’s most famous so-called bootstrappers really built their wealth.

From George Washington to Seattle, Washington, Jay Gatsby to Bill Gates, 99% Perspiration unpacks the misguided obsession with hard work that has come to define both the American dream and nightmare, offering insight into how we got here and hope for where we may go.

“An enlightening and entertaining interrogation of the myth of American self-reliance and the idea of hard work as destiny.”

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Made in the USA

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Wall Street’s Secret Weapon—Personalized

Wish you had your own personal investment analyst who could analyze stocks, assess market news, and inform you about hidden opportunities–instantly? 

Welcome to Bigdata.com, the market intelligence platform used by Wall Street’s biggest institutions and asset managers (you can get started for free right now):

• Custom Watchlists: Monitor and manage every aspect of your portfolio.

• Deep Data Access: 20+ years of financial data, estimates, and 200K+ sentiment scores.

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• Emerging Opportunities: Track startups, funding rounds, M&A, and IPOs.

• Corporate Intelligence: Analyze news, earnings calls, and executive commentary for deeper insights.

Power your investments with better data–get started with Bigdata.com for free.

_{DAILY ACUMEN}

Networking

Your next big career break might not come from your inner circle but from someone you barely know—those weak ties like acquaintances who orbit different social worlds.

A robust support network isn’t just about family or friends; it’s a mix of mentors, colleagues, and even distant contacts who can unlock doors to new opportunities.

Think of it like a web: the more nodes you connect to—especially across diverse groups—the stronger and more useful it becomes.

Mathematical ideas, like the “small-world” effect, show that anyone you need might be just a few handshakes away, but the trick is actually tapping into it.

Whether it’s chatting up a stranger at an event or linking two unrelated circles yourself, building and using these ties can fast-track your goals—because a network’s only as good as what you make of it.

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Short Squeez Picks

• A guide to taking better breaks at work

• Gen-Z doesn’t know how to act in bars

• 10 ways managers accidentally destroy team morale

• Diet tips for a sharper brain and memory

• Why the loudest people at work aren’t always the most confident

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Memes of the Day