🙅♂️🇺🇸 Biden Blocks US Steel Takeover
Happy Sunday,
I hope your New Year is going well. I went to a PowerPoint party on New Years Eve. That’s where everyone had to bring a slideshow about something 2024/2025 related and present it after dinner. It was a small group of us.
Yours truly created a PowerPoint about Pokemon, so I didn’t understand the assignment (lol), but still I had a great time, and more importantly — all the guests found it hilarious.
This week, the stock market will be closed on Thursday, January 9th to remember Jimmy Carter. This is called the National Day of Mourning. We have some great YouTube videos on the horizon so I hope you check out the channel when you get a chance.
- Humphrey & Rickie
Market Report
Biden Sends Mixed Signals to Japan In His Final Days as President
The Biden administration recently blocked Nippon Steel's $14.1 billion takeover of United States Steel, citing national security concerns. This decision has sparked fresh uncertainty for the American steel industry and strained relations between the US and Japan, a key diplomatic ally.
The announcement has led to a drop in US Steel's share price and prompted both companies to declare their intention to challenge the decision, claiming it violates due process and the law.
US Steel may now need to explore other options, including potential legal action, considering alternative buyers, or remaining a standalone company.
The decision is seen as a major victory for the United Steelworkers union, which had strongly opposed the deal. However, it also sends a message that no US ally or industry is immune to potential national security investigations, potentially impacting future foreign acquisitions of US assets.
In the same week as this decision, the US State Department approved a potential $3.64 billion sale of air-to-air missiles to Japan to demonstrate a strong commitment to improving the security of a major ally in the Indo-Pacific region.
Talk about contradictory actions…
Biden to Ban New Oil Drilling In US Atlantic, Pacific Waters
The Biden administration is sure making use of these last few days in the White House. The administration is also set to announce a ban on new offshore oil and gas development across approximately 625 million acres of US coastal territory, including the Atlantic and Pacific waters and the eastern Gulf of Mexico.
This move aims to permanently protect coastal waters and communities from fossil fuel development and oil spill risks. However, Biden is keeping the central and western portions of the Gulf of Mexico open for new leasing, which currently provide about 14% of US oil and gas output.
The decision could complicate President-elect Donald Trump's plans to boost domestic oil and gas production.
While environmental groups have praised the move as aligning with public interest in limiting offshore drilling, the oil industry and Trump's transition team have criticized it, arguing it will limit US energy capabilities and potentially lead to higher gas prices.
Big Banks Flee Climate Coalition Formed to Reduce Carbon Emissions
Major US banks are withdrawing from the United Nations-backed Net-Zero Banking Alliance (NZBA), a climate coalition formed during the pandemic to align banking activities with net-zero greenhouse gas emissions by 2050.
Morgan Stanley, Citigroup, and Bank of America recently announced their exit, following earlier withdrawals by Wells Fargo and Goldman Sachs. JPMorgan Chase, the largest US bank and the only major one remaining in the coalition, is also considering leaving.
This exodus reflects a broader retreat from ESG initiatives ahead of the second Trump administration. Conservative groups and activists have been pressuring companies to abandon ESG efforts, with President-elect Donald Trump expected to roll back related regulations.
Big Number
🎉 Want to see what I invest in?
I just launched my brand new paid Whop community, Critical Wealth. Join to see:
✅ My Portfolio + Buys & Sells
✅ Access to exclusive videos (2 per month not seen on YouTube)
✅ Investing Questions Answered
✅ Membership in a community of like minded investors
If you’re looking for an engaged community, I’m building one of the best communities in personal finance and investing, and for less than a dollar a day you can support the channel and get access to a private community with other like minded investors.
Overcome the Sunday Scaries
In Case You Missed It