Good Morning! Hope everyone had a great weekend and is staying warm. Biden officially nixed Nippon’s attempt to acquire U.S. Steel after over a year of regulatory limbo. Meanwhile, Microsoft is gearing up for a massive $80 billion investment in data centers this year.

NYC rolled out its congestion pricing yesterday, meaning it now costs $9 to drive south of 60th Street during peak hours. SouthStreet completed its $2 billion merger with Independent Bank, and economists think there could be a wave of regional bank consolidations in 2025.

Private equity firms still hold over $500 billion in dry powder, Rivian hit its 2024 production target early, and Amazon’s NFL streaming saw a 13% ratings boost last year.

Seize the opportunity to participate in the data boom and invest in Mode Mobile today. Earn up to 100% bonus shares with your investment.

_{SQUEEZ OF THE DAY}

Elon Musk 🤝 Italy

It’s looking like Elon Musk’s gamble to support Donald Trump in last year’s election is already paying off, with his companies set to reap big rewards when Trump retakes the White House in two weeks. 

According to a new report, SpaceX is close to bagging a €1.5 billion ($1.6 billion) deal with Italy to secure government telecommunications, a groundbreaking project that would make it the largest such initiative in Europe.

Italy’s Intelligence Services and Defense Ministry greenlit a five-year project for SpaceX to provide encrypted communications, including military connectivity in the Mediterranean and emergency satellite services. 

This deal not only boosts Musk’s and SpaceX’s bottom line but also strengthens Musk’s influence. And behind the scenes? Italian Prime Minister Giorgia Meloni, a Trump supporter and friend of Musk, recently visited Mar-a-Lago. A few months ago, Musk even addressed rumors of an affair with Meloni.

If Trump pushes Musk’s tech as essential for national security and global competitiveness, the stage is set for a flood of federal deals. Cybersecurity is climbing the priority ladder globally, and Starlink’s potential as a global telecom powerhouse could send SpaceX’s valuation skyrocketing (already valued at $350 billion as of last month).

Adding to Musk’s momentum, United Airlines announced that all its flights will offer Starlink Wi-Fi services starting this spring, marking another milestone in the service’s widening reach.

Takeaway: SpaceX’s satellite internet service, Starlink, continues its global expansion, already connecting more than 4 million users across 100+ countries. With Trump’s potential second term, Musk’s ventures—SpaceX, Starlink, and Tesla—are primed to become the backbone of national security and commercial innovation. For investors, this could be the perfect moment to go all-in - and bet against Musk at your own peril.

_{PRESENTED BY MODE MOBILE}

The ‘Digital Oil’ Boom

$42 billion. That’s how much Facebook makes off American users’ data annually, and that’s just one... 

Almost all of today’s tech giants make money from their users’ data. No wonder data has been called the new oil. But Mode Mobile turned the data boom on its head, creating an opportunity for investors.

Mode’s software turns smartphones into passive income generators, paying users for their data. And by helping users earn and save $325M+, Mode has earned $60M+ in revenue.

Their 32,481% revenue growth made them Deloitte’s #1-ranked software company on its 2023 fastest-growing companies list. And Mode’s not stopping there, that’s why they recently reserved the Nasdaq ticker $MODE.

Don’t miss your chance to tap into the data boom. Earn up to 100% bonus shares by investing in Mode now.

_HEADLINES

Top Reads

• Biden blocks U.S.-Nippon Steel takeover (CNN)

• Congestion pricing begins in NYC in a test for the model's viability (NPR)

• SouthStreet completes $2 billion merger with Independent Bank (Axios)

• Amazon's NFL bet is paying off (FOS)

• Elon Musk’s Starlink to launch on United Airlines flights by spring (CNN)

• Microsoft to spend $80 billion on AI data centers this year (YF)

• Private equity’s 2025 dry powder countdown (WSJ)

• Rivian meets 2024 vehicle production target (CNBC)

• US auto sales surged in 2024 (YF)

• From M&A to AI how CFOs are mapping out the year ahead (WSJ)

• Tesla’s car business really isn’t in the drivers seat (WSJ)

• Wall Street has racked up blockbuster returns but 2025 could change everything (CNN)

• Silicon Valley is coming to Washington D.C. (Axios)

_{CAPITAL PULSE}

Markets Rundown

NASDAQ Leads Stocks Higher

Equity markets rebounded on Friday, breaking their recent losing streak, with small-cap stocks outperforming mid- and large-cap peers. Consumer discretionary and technology stocks led the charge, reflecting a renewed risk-on tone across sectors.

Overseas, Asian markets declined on ongoing growth concerns in China, while European markets were lower, weighed down by automotive stocks as stricter U.S. tax credit rules disqualified certain EV models.

The U.S. dollar softened against major currencies, while commodities saw mixed performance, with WTI oil rising and gold edging lower.

Manufacturing Reading Beats Estimates

The Institute for Supply Management (ISM) Manufacturing PMI climbed to 49.3 in December, exceeding expectations of 48.4. Although the reading remains in contraction territory, it shows a steady improvement from October's low of 46.5. Services PMI, which covers a larger share of the economy, continues to reflect expansion.

These metrics support the narrative of resilient economic growth and provide further evidence of a potential soft landing for the U.S. economy.

Bond Yields Edge Higher

The 10-year Treasury yield rose to 4.60%, extending its upward trend from the September low by over 90 basis points (0.9%). Markets have adjusted expectations for Fed rate cuts in 2025, now anticipating only one cut as disinflation slows and labor markets stay resilient.

With the fed funds rate around 4.5% and core PCE inflation at 2.8%, there is scope for rates to decline to a neutral range of 3.5% to 4% over time.

Lower rates would reduce borrowing costs for consumers and businesses, providing a supportive backdrop for economic growth.

Movers & Shakers

• (+) Rivian Automotive ($RIVN) +24% after announcing better-than-expected EV deliveries.

• (+) Chewy ($CHWY) +6% after Wolfe Research upgraded the pet retailer.

• (–) U.S. Steel ($X) 7% after Biden blocks Japan’s Nippon from taking over US Steel.

Private Dealmaking

• SJSemi, a Chinese foundry, raised $700 million

• Hindustan Unilever in advanced talks to buy Minimalist for $350 million

• Later, an influencer marketing firm, bought Mavely for $250 million

• Swave Photonics, a holographic display startup, raised $28 million

• Rembrand, a virtual product placement startup, raised $23 million

• Apheris, a federated computing company, raised $20.8 million

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

_{BOOK OF THE DAY}

Deep Utopia

Bostrom’s previous book, Superintelligence: Paths, Dangers, Strategies sparked a global conversation on AI that continues to this day. That book, which became a surprise New York Times bestseller, focused on what might happen if AI development goes wrong.

But what if things go right? Suppose we develop superintelligence safely and ethically, and that we make good use of the almost magical powers this technology would unlock.

We would transition into an era in which human labor becomes obsolete—a “post-instrumental” condition in which human efforts are not needed for any practical purpose. Furthermore, human nature itself becomes fully malleable.

The challenge we confront here is not technological but philosophical and spiritual. In such a “solved world”, what is the point of human existence? What gives meaning to life? What would we do and experience?

Deep Utopia—a work that is again decades ahead of its time—takes the reader who is able to follow on a journey into the heart of some of the profoundest questions before us, questions we didn’t even know to ask. It shows us a glimpse of a different kind of existence, which might be ours in the future.

“This is a wondrous book. It is mind-expanding. It is poetic. It is moving. It is funny. The writing is superb. Every page is full of ideas.”

_{DAILY VISUAL}

CEO Shuffle

_{PRESENTED BY OPTIFINO}

Nearly 50% Of Americans Don’t Have This

Life insurance–leaving millions of loved ones exposed in the event of tragedy.

But the gift of life insurance does more than just shield your family from financial uncertainty: It’s one of the most tax-advantaged assets protected by the IRS.

When set up correctly, life insurance can…

• Compound wealth capital gains deferred

• Secure tax-free retirement income

• Create liquidity for real estate investments

• Reduce or eliminate your estate tax

• Cover long-term care

Give the ultimate gift to your family and speak to an expert at Optifino today.*

_{DAILY ACUMEN}

Overwhelmed

Feeling overwhelmed? Modern life piles on countless demands, from constant notifications to work and personal responsibilities, leaving many of us drained. You're not alone in this struggle.

The root of overwhelm lies in juggling too much—our brains simply can't multitask effectively. Constant distractions from screens and societal pressures only add to the chaos. Even tasks that seem minor can accumulate, making it hard to stay focused or productive.

Overwhelm often triggers stress, mental fatigue, and even physical consequences like joint stiffness or increased risk of chronic health issues. It can sap decision-making abilities, willpower, and emotional control, leading to procrastination and self-doubt.

But recovery is possible! Small, intentional actions can help. Prioritize rest and meaningful breaks, reconnect with loved ones, or try simple movements to stay active. Avoid productivity myths—focus instead on realistic expectations and achievable tasks.

Remember, overcoming overwhelm starts with one step: ask yourself, "What’s the best decision I can make right now?" Sometimes, it's as simple as starting with the smallest task.

_{ENLIGHTENMENT}

Short Squeez Picks

• 4 listening skills leaders need to master

• 5 strategies to reduce negative thinking

• Is it better to work out before or after work?

• 6 ways to turn today’s managers into tomorrow’s leaders

• How to leave your comfort zone

_{MEME-A-PALOOZA}

Memes of the Day