Good Morning! Private equity is back on top after two years of trailing private credit. Chick-fil-A is using drone footage to revamp its drive-thrus, and Meta is weighing a Texas incorporation.

NYC office demand is back to pre-pandemic levels, and luxury real estate sales are poised for a 2025 rebound. Meanwhile, Walgreens just made history for the wrong reasons—suspending its dividend for the first time in 92 years. And more American workers now have two jobs.

Plus: 'No buy 2025' movement is gaining traction, an inside look at SoftBank’s WeWork flop, and why even knowing the future doesn’t help short-term traders.

Turn your phone into passive income—invest in Mode Mobile before it goes public.

_{SQUEEZ OF THE DAY}

Trade War 2.0

Over the weekend, President Trump escalated trade tensions by imposing sweeping tariffs on Canada, Mexico, and China, triggering market turmoil and global backlash. Justified under the International Emergency Economic Powers Act (IEEPA)—a first for tariffs—the move is expected to face legal challenges but will have immediate economic consequences.

Effective February 4, a 25% tariff applies to all Canadian and Mexican goods, except for Canadian energy, which is capped at 10%. Chinese imports face an additional 10% tax. The White House says the tariffs will remain until the border crisis is resolved.

Canada responded with 25% tariffs on $155 billion in U.S. goods, including beer, bourbon, fruits, clothing, and appliances, and is considering adding critical minerals, a potential blow to U.S. manufacturers. Mexico is preparing countermeasures, and China has filed a WTO lawsuit while weighing further action.

Industries most affected? U.S. automakers, who rely on cross-border supply chains, now face higher production costs, giving an edge to foreign competitors like Toyota and Hyundai. Food and housing costs are also set to rise - $85 billion in food imports are now tariffed, and one-third of U.S. lumber comes from Canada, threatening new home construction costs.

Trump also threatened EU tariffs and hinted at raising China’s tariffs to 60%, though no timeline has been given.

Markets reacted sharply: Dow futures dropped over 650 points, and oil and gasoline prices surged, signaling expectations of inflationary pressure.

Takeaway: It seems like a full-blown trade war is back, and Wall Street, corporate execs, and global leaders are all on edge. Trump’s unprecedented use of executive power is likely to face legal challenges, but they won’t come fast enough to prevent immediate economic fallout. Expect higher prices, corporate cost-cutting, and more uncertainty ahead.

_{PRESENTED BY MODE MOBILE}

Buffett's Famous ‘Phone Rule’ Could Make This Company Soar

Warren Buffett famously said that "If you don't find a way to make money while you sleep, you will work until you die."

But what if your phone could do it for you?

That's exactly what Mode Mobile has created - technology that turns idle phone time into passive income. With 45M+ users already earning a staggering $325M+, their EarnPhone is being called the Uber of smartphones.

With 32,481% revenue growth, they were named the fastest-growing software company in 2023 by Deloitte, and with 7 billion smartphones worldwide their market could be significantly larger than Uber’s.

They’ve just secured their Nasdaq stock ticker $MODE, and you now have a limited time to invest in their pre-IPO offering at $0.26/share.

Invest now at $0.26/share and earn up to 100% bonus shares.

_HEADLINES

Top Reads

• Private equity returns overtook private credit in latest quarterly data (YF)

• Chick-fil-A’s quest to make fast food faster (WSJ)

• New York City office demand is finally back to normal (CNBC)

• Meta mulls moving to Texas (WSJ)

• New inflation reading reinforces Fed’s go-slow strategy (YF)

• OpenAI introduces research agent (TC)

• LVMH watch and jewelry CEOs see luxury sales picking up in 2025 (CNBC)

• Walgreens shares drop 10% after company suspends quarterly dividend (YF)

• Gen Z is already burning out (BI)

• Palantir CEO says DeepSeek shows U.S. needs 'all-country effort' in AI (CNBC)

• Trump's AI czar flags report questioning DeepSeek's cost of AI (Fox)

• The new AI trade emerging after DeepSeek shock (Axios)

• 'No buy 2025' gains traction (WSJ)

• Blackstone sees trillions from the rich flowing into private markets (YF)

• Will 2025 finally mark the end of the IPO drought? (CNBC)

• Wall Street is booming but banks are in a lending rut (WSJ)

• How SoftBank bet and lost billions on WeWork (NYP)

• More Americans take on a second job or side hustle (WP)

_{CAPITAL PULSE}

Markets Rundown

Stocks Slide as Tariff Concerns Weigh on Markets; Inflation Meets Expectations, Bond Yields Rise

U.S. equity markets ended lower on Friday as news of impending tariffs dampened investor sentiment.

The White House announced a 25% tariff on imports from Canada and Mexico and a 10% tariff on Chinese goods, effective February 1, with uncertainty around potential exemptions.

In response, the S&P 500 declined by 0.5%, and the Dow fell 0.8%, while bond yields moved higher, with the 10-year Treasury yield climbing to 4.57%.

Meanwhile, inflation data aligned with expectations, as the core PCE index rose 0.2% in December and 2.8% year-over-year, signaling continued moderation toward the Fed’s 2% target.

Markets are pricing in two rate cuts for 2025, though the pace of easing may remain gradual amid economic strength and trade uncertainty.

On the corporate front, Apple reported strong earnings, driven by robust Mac and iPad sales.

Overseas, Asian and European markets mostly traded higher, with Europe benefiting from lower-than-expected inflation in Germany and France.

The economic impact of tariffs remains a key focus, particularly for industries like energy and autos, where potential price increases could fuel inflationary pressures.

Movers & Shakers

• (+) Atlassian ($TEAM) +15% after the software company beat earnings on software growth.

• (–) Walgreens Boots Alliance ($WBA) -10% because the pharmacy chain will suspend its quarterly dividend.

• (–) Deckers Outdoor ($DECK) -21% after the Ugg and Hoka footwear maker’s guidance fell short of Wall Street’s expectations.

Private Dealmaking

• ElevenLabs, an AI voice synthesis startup, raised $180 million at $3.3 billion valuation

• Welltower acquired NorthStar Healthcare Income for $900 million

• Databank, a data center operator, raised $250 million

• Rad AI, an AI tools maker, raised $60 million

• Motif, an architecture design software developer, raised $46 million

• Finout, a cloud cost management startup, raised $40 million

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

_{NEIGHBORHOOD WATCH}

Real Estate Digest

For the past two and a half years, the 30-year fixed-rate mortgage has hovered between 6% and 7%. With rates staying relatively steady week over week, December saw home sales surpass expectations, signaling steady demand from buyers as new inventory gradually enters the market.

Latest News

• How Is the Luxury Market for Homes Performing in NYC

• Single Women Own Millions More Homes than Single Men in the US- and the Gap is Only Growing

• Ultra Wealthy Travelers Are Splurging on Luxury Rental Apartments in NYC

New Listings

• 70 Little W St Apt: 32A New York, NY: 6 Bed /  5 Bath - $6,495,000

• 221 Monroe Dr West Palm Beach, FL: 6 Bed / 5.5 Bath - $9,800,000

• 165 Strongs Ln Water Mill, NY: 7 Bed / 8.5 Bath - $9,995,000 

• 21 The Bishops Ave London, United Kingdom: 8 Bed / 7 Bath - $10,882,287 

• Quinta Da Marinha Villa Cascais, Lisboa, Portugal: 6 Bed / 7 Bath -  $7,165,244

Fill out this form to get personalized support for buying, selling, renting, or investing in real estate.

_{BOOK OF THE DAY}

Some Future Day

In this groundbreaking book, celebrated professor, entrepreneur, author, and podcaster Marc Beckman explores the transformative power of artificial intelligence (AI) and how it’s poised to enhance and transform all aspects of society—revolutionizing our careers, enriching our family lives, and bringing our communities closer together.

From business and advertising, to medicine, to warfare, to politics—Beckman meticulously explores the different areas where we’ll soon feel AI’s transformative impact. But that’s only half of it. Throughout this book, he also provides the specific steps readers can take now to make sure these coming changes work for them.

From the workplace to the home, AI is poised to reshape the way we approach our professional and personal lives. Beckman uses this book to make the case that AI will free up valuable time and energy, allowing individuals to focus on more creative and meaningful work, but also that AI will create possibilities for engagement that were unthinkable just a generation ago.

He shows that with AI as our co-pilot, we’ll unlock new opportunities for growth, innovation, and collaboration—all of which will lead to more fulfilling and rewarding careers. Beckman illustrates how AI will strengthen family bonds and improve the quality of our home lives too, changing everything from how we educate our kids to how we stay connected on social media.

And as AI becomes more integrated into our cities and towns, it will play a crucial role in fostering a sense of community and belonging; through AI-powered platforms, Beckman shows how we will collaborate on projects, share resources, and support one another in times of need.

“This cutting-edge guide not only shows how AI is transforming our careers, lives, businesses, and more, but also provides easy, actionable steps to make AI work for us.”

_{DAILY VISUAL}

Fewer Unicorns Founded When Interest Rates Are Higher for Longer

_{PRESENTED BY ELF LABS}

Limited Access: Invest in the Future of Entertainment & AI

Investment Opportunity: Elf Labs, Inc.

Industry: Entertainment & Technology

Investment Terms: Equity Offering | Share Price: $2.00 | Minimum Investment: $974.00

Why Invest?

• Iconic Intellectual Property: Elf Labs owns over 100 trademarks and 400 international copyrights, including reimagined versions of classic characters like Snow White, Cinderella, and Sleeping Beauty.

• Next-Gen Technology: The company is developing immersive experiences using proprietary augmented reality (AR) and virtual reality (VR) technologies, enabling high-fidelity 3D content accessible without headsets.

• Proven Leadership: The management team boasts a track record of generating over $6 billion in licensing transactions, with products featured in major retailers.

Use of Funds: Proceeds will be allocated to content production, technology development, and expanding licensing opportunities in the $2 trillion entertainment and merchandise market.

Risks: As with any early-stage company, investments carry risks, including market competition, technological development challenges, and the need for successful execution of business strategies.

Note: The round closes on February 12th.

_{DAILY ACUMEN}

Good Life

Living a good life isn’t about waiting for big milestones or chasing external success—it’s about making small, intentional choices every day that reflect our deepest values.

Too often, we get caught in routines and obligations that don’t align with who we truly are, neglecting our happiness, dreams, and well-being in the process.

But fulfillment comes from identifying what matters most to us—love, creativity, health, connection—and making space for those priorities in our daily lives.

A meaningful life is built moment by moment, through simple actions like a heartfelt conversation, a moment of self-care, or progress toward a passion project.

Instead of dwelling on past regrets or comparing ourselves to others, we can focus on what we can do today to create a life that feels true to who we are.

By honoring our values and embracing each day with intention, we ensure that life doesn’t just pass us by—we truly live it.

_{ENLIGHTENMENT}

Short Squeez Picks

• Why knowing the future doesn’t help short-term traders

• Georgetown neuroscientist’s tips for a happier year

• What to wear to a job interview, according to hiring experts

• 21 super effective habits of highly successful people

• 3 easy ways to build your job interview confidence

_{MEME-A-PALOOZA}

Memes of the Day