While the new president elect of the US is hard to miss, the big news of the month of January did not come from the White House, but from China While the new
administration can be compared to a barking dog, owning a good public relations department, the arrival of a new artificial intelligence software from China called “
stunned investors across the globe Unlike ChatGPT, which is a closed source AI, only accessible through their creators’ servers, DeepSeek gives the user complete control as it
is an open source software Consequently, the number of unanswered questions about market implications from that new software model went through the roof and several
industry groups and sectors witnessed extraordinary volatility From the mid month highs, the US Semiconductor Index dropped 14 10 Crude Oil fell 8 67 Uranium
dropped 12 24 and Natural Gas crashed a stunning 31 63 Obviously, there was a hidden agenda in the artificial intelligence trade Investors expected a sharp increase in
energy demand, especially from data centers, that is now strongly questioned by the market Apollo Management expected growth in data, calculated by Zettabytes of data,
to more than double from 2024 to 2028 with data center power demand to increase 160 through the rest of the decade If those expectations will be wrong remains to be
seen By the end of January, semiconductors were able to recover 4 08 of the losses, Uranium recovered by around 5 00 while Crude Oil and Natural Gas did not rebound
at all Out of the ashes of increased volatility, we saw a surprising result European Equity Markets are outperforming the US, despite a relatively weak Euro Regardless of
being blamed for the lack of growth, lack of innovation and high regulations, European equities are currently doing very well Meanwhile in the US, of all the chaos that Donald
Trump’s second term is visiting upon America, nothing compares to DOGE With the blessing of the Trump administration, DOGE has been going through every part of the U S
federal government, looking for payments to cancel, programs to suspend, and employees to fire or place on leave Over the last weeks, DOGE has moved so fast, and often so
secretively, that nobody can quite seem to figure out what it’s doing The whole thing is shrouded in a fog of chaos, with accusations and counteraccusations of illegality flying
thick and fast The new administration is trying to implement the promises made to electors, such as deportations, tariffs and government spending cuts Unfortunately, the
market did not like tariffs at all, and Mr Trump scaled back his plans on bogus arguments As previously mentioned here, one big promise of the new US President are tax cuts
Those need to be financed The government has only two options Cut spending and raise tariffs There is no other way around The market now eagerly awaits the new
budget For now, we have seen neither substantial spending cuts, nor substantial tariff hikes The barking has been loud, but no biting has been recorded The big spending
cuts in the US budget have not been addressed, the big tariff hikes promised have not been implemented Finally, most voters for Trump want lower prices, across the board
How the administration will achieve this remains elusive The energy market is much more complex than the US President thinks For the time being, it looks like the most
powerful and rich are profiting from the new administration History tells us that unbridled greed for money and power can plunge a once great nation into ruin.
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