😲Salesforce Cuts 1,000 Jobs

🌞Good morning. It's Tuesday, Feb. 4, and we're covering, Trump Orders Creation Of U.S. Sovereign Wealth Fund, Eyes TikTok Ownership, Meta May Halt AI Projects Deemed Too Dangerous For Release, Trump Pauses Tariffs On Mexico And Canada, But China Faces Immediate Penalties, and much more. First time reading? Sign up to get this newsletter: Sign up here. 

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MARKETS

Cryptocurrency Prices by Market Cap

• The global cryptocurrency market cap today is $3.24 Trillion, a 5.36% increase in the last 24 hours.

• The total crypto market volume over the last 24 hours is $243.77B, which makes a 21.29% decrease.

• The total volume in Defi is currently $16.21B, 6.65% of the total crypto market 24-hours.

• The volume of all stablecoins is now $228.05B, which is 93.55% of the total market 24-hour volume.

• Bitcoin’s dominance is currently 60.77%, an increase of 0.05% over the day.

MicroStrategy Halts Weekly Bitcoin Purchases Ahead Of Earnings Report

MicroStrategy paused its weekly Bitcoin purchases last week, ending a 12-week streak, ahead of its earnings release on February 5, 2025. The company holds 471,107 Bitcoin, having acquired 218,887 BTC since November 2024. The pause is likely due to the company's blackout period before earnings reports, which prevents insider trading. Last week, MicroStrategy raised $250 million through a preferred share offering to fund more Bitcoin acquisitions, later increasing the amount to $500 million. (Read Deeper)

BUSINESS & FINANCE

Trump Orders Creation Of U.S. Sovereign Wealth Fund, Eyes TikTok Ownership

President Donald Trump signed an executive order directing the creation of a U.S. sovereign wealth fund, aiming to allow the government to profit from investments, including a potential 50% ownership stake in TikTok if an American buyer is found. The move comes amid ongoing efforts to force ByteDance, TikTok’s China-based owner, to divest its U.S. operations due to security concerns. Trump likened the initiative to sovereign wealth funds in other nations and expressed aspirations for the U.S. fund to surpass Saudi Arabia’s $1.2 trillion fund.

Takeaway: Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick are tasked with developing the fund's structure, which will require congressional approval. The proposed fund could invest in national security ventures and other industries like vaccine production. Several investors, including Perplexity AI, have expressed interest in acquiring TikTok. Perplexity's proposal would allow the U.S. government to own up to 50% of a combined entity, valued at $300 billion for an eventual public offering. (Read Deeper)

Palantir Warns Against DeepSeek AI, Projects Strong 2025 Growth

Palantir has warned its clients, especially in the U.S. government, to avoid using AI models from the Chinese startup DeepSeek due to national security concerns. U.S. officials, including NASA, have already prohibited the use of DeepSeek's technology. Palantir expects the expansion of tariffs under President Trump to drive more demand for its supply-chain analytics.

Takeaway: Palantir forecasted strong 2025 revenue, projecting between $3.74 billion and $3.76 billion, well above Wall Street's estimates. This includes a 54% growth in commercial revenue from U.S. companies. Palantir’s AI platform, AIP, has been in demand from businesses using AI for testing and evaluation. The company reported strong Q4 earnings, surpassing expectations with 14 cents per share. (Read Deeper)

TECHNOLOGY & SCIENCE

Meta May Halt AI Projects Deemed Too Dangerous For Release

Meta has released a new policy document, the Frontier AI Framework, outlining its approach to managing the risks of advanced AI systems. The company identified two categories of risky AI: "high-risk" systems, which could aid in cyber or biological attacks, and "critical-risk" systems, which pose potentially catastrophic threats with no viable mitigation strategies. Meta plans to restrict internal access to high-risk systems until safety measures are implemented and will halt development of critical-risk systems until dangers are resolved.

Why It Matters: This cautious approach aims to balance innovation and safety as Meta faces criticism for its open AI release strategy, particularly after reports that its Llama models were misused by a U.S. adversary. Meta's stance contrasts with Chinese AI firm DeepSeek, which has fewer safeguards on its AI systems. (Read Deeper)

Salesforce Cuts 1,000 Jobs While Expanding AI Salesforce Team

Salesforce is cutting over 1,000 jobs, even as it ramps up hiring for salespeople to promote its new artificial intelligence products. The job cuts, which affect an unspecified portion of the company's workforce, come amid Salesforce’s focus on improving profit margins, especially after activist investor pressure in 2023. The company had about 73,000 employees as of January 2024.

Takeaway: Despite the layoffs, Salesforce is expanding its sales force to sell AI agent products as part of its strategy to scale its business. The company's focus remains on maintaining efficiency while investing in growth, balancing new AI product offerings with profitability goals. Salesforce is also expected to report its fourth-quarter earnings in February. (Read Deeper)

AROUND DE WORLD & POLITICS

Trump Pauses Tariffs On Mexico And Canada, But China Faces Immediate Penalties

President Donald Trump has announced a 30-day pause on planned tariffs against Mexico and Canada in exchange for commitments to strengthen border security and combat drug smuggling. Canada agreed to deploy new technology and personnel along its U.S. border and intensify efforts against organized crime and fentanyl trafficking. Mexico will reinforce its northern border with 10,000 National Guard members and enhance drug enforcement efforts. The U.S. tariffs on China are set to take effect at 12:01 a.m. ET on Tuesday.

Takeaway: The temporary agreements with Canada and Mexico have averted a potential trade war, providing a boost to the Canadian dollar and U.S. stock futures. However, concerns persist that tariffs could disrupt supply chains and damage economic growth. rump has warned of further tariff hikes if China does not address fentanyl trafficking to the U.S. (Read Deeper)

Musk Announces DOGE Shutting Down Treasury Payments To Federal Contractors

Elon Musk's "DOGE team," a group focused on improving government efficiency, has begun halting certain U.S. government payments, including those to a Lutheran charity. Musk claims the team is rooting out corruption and waste in government financial systems. This has raised questions about Musk's access to sensitive Treasury systems, as reports suggest he has been granted full access to these systems by Treasury Secretary Scott Bessent. Musk has also criticized the U.S. Agency for International Development (USAID) and called it a "criminal organization" after his team was denied access to their systems.

Takeaway: Elon Musk's team is targeting billions in government payments, including Social Security, Medicare, and contractor disbursements, and has already stopped payments from the Department of Health and Human Services to Lutheran Family Services. Musk's actions are part of a broader effort to cut costs and modernize government processes, an initiative supported by President Trump. (Read Deeper)

ENTERTAINMENT & SPORTS

Chelsea Climbs To Top Four with Hard-Fought Win Against West Ham

Chelsea secured a 2-1 win over West Ham, moving back into the Premier League’s top four. Despite falling behind 1-0 after a mistake by Levi Colwill allowed Jarrod Bowen to score, Chelsea equalized in the second half with a goal from Pedro Neto. A deflected cross from Cole Palmer gave Chelsea the lead. The victory lifted Chelsea to fourth place, two points ahead of Manchester City and Newcastle. (Read Deeper)

Grammys Deliver Historic Beyoncé Win At 2025 Ceremony

It sounds like the 2025 Grammy Awards were an unforgettable celebration of music, with standout moments that made history. Beyoncé's long-awaited win for Album of the Year was the emotional peak of the night, a victory that felt both personal and symbolic for fans and the music industry. Her graciousness in accepting the award while dedicating it to Linda Martell added to the heartfelt atmosphere of the evening. (Read Deeper)

PODCAST(WHAT WE ARE LISTENING TO)

• The concept of a national Bitcoin reserve has been a topic of discussion among policymakers and financial experts. Proponents argue that such a reserve could enhance the U.S.'s strategic position in the global digital economy. (Listen)

EXTRA BREVITI

• Apple raised concerns on Monday over the first adult content app to appear on iPhones in the European Union, calling it a threat to consumer trust and safety. (Read Deeper)

• In response to U.S. President Donald Trump's recent tariffs on Chinese goods, China announced it will impose its own tariffs on American energy imports. (Read More)

• El Salvador has entered into an unprecedented deal with the U.S. under the Trump administration, agreeing to house violent U.S. criminals and deportees of any nationality. (Read More)

• OpenAI continues to expand its global presence, announcing a major partnership with South Korea’s Kakao. (Read More)