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Us equity futures are slightly lower with yields flat and the dollar lower as traders appear exhausted at the end of a rollercoaster week full of headlines on trade tariffs and rumors on Ukraine peace efforts, as well as a slew of earnings and further proof inflation isn’t going away. As of 8:00am ET, S&P futures were down 0.2%, a modest retreat from Thursday’s near-record close; Nasdaq futures were also lower as Palo Alto Networks fell 6.1% in premarket while Airbnb jumped after beating expectations. Mag 7 are mostly flat to slightly lower, with the exception of TSLA’s +1.6% gain pre-market (GOOGL -0.2%, AMZN little changed, AAPL -0.2%, MSFT -0.2%, META -0.3%, NVDA -0.1% and TSLA +1.6%). Luxury stocks were a bright spot in Europe as Hermès rallied to a record after its holiday-season sales surged. Meanwhile, the China rally continues as a broader index of Chinese stocks trading in Hong Kong closed at a three-year high, as the nation’s growing AI capabilities bolster investor optimism over the market’s outlook. Yields are 1-2bp lower while the USD extends its losses on hopes that Trump’s tariff approach poses less of an upside risk to inflation. Commodities are mixed: energy and ags are higher, base metals are lower. The House Budget Committee advanced a budget resolution yesterday, a major first step towards Trump’s legislative agenda. Today, key macro focus will be the latest Retail Sales, which consensus expects to decline 0.2% MoM but the control group to rise by 0.3% MoM.

In premarket trading, Chinese stocks listed in the US rallied as a potential meeting between the nation’s top leaders and Alibaba co-founder Jack Ma bolstered confidence that Beijing could adopt a more supportive stance toward the private sector. Intel shares jumped 1.9%, putting the chipmaker’s stock on track for its biggest weekly gain on record. The stock has rallied more than 26% this week on reports of the US government possibly getting involved with a plan involving both Intel and TSMC. Here are some other notable premarket movers.

• Airbnb shares jump 14% after the home-rental company reported fourth-quarter results that beat expectations and gave an outlook that is seen as positive. Baird upgraded their recommendation on the stock to outperform, noting the “strong finish” to the year.
• Applied Materials shares fall 4.8% after the semiconductor equipment maker forecast second quarter net sales that fell short of the average analyst estimate. Analysts note that China restrictions were impacting the company’s sales forecast.
• Coinbase Global shares are 1.6% lower after the crypto exchange operator reported total revenue for the fourth quarter that beat estimates, with the company’s results powered by a rally in digital assets linked to President Donald Trump’s reelection.
• Moderna shares fall 4.6% after the drugmaker recorded another quarterly loss, aided by an unexpected charge for a canceled manufacturing contract.
• Nu Skin shares gain 24% after the beauty and wellness company issued a stronger-than-anticipated profit outlook for the year. Its fourth-quarter revenue also topped analysts’ expectations, though its annual sales forecast fell short.
• SoundHound AI, Serve Robotics and Nano-X Imaging shares tumble in premarket trading after Nvidia filed a 13F indicating that the chipmaker exited its stakes in the companies. Meanwhile, WeRide ADRs surge 107% and Nebius Group shares are up 6.1% after Nvidia revealed positions in the companies
• Palo Alto Networks shares fall 5.1% after the network security solutions company forecast third quarter adjusted EPS that came in lower than Wall Street’s expectations.
• Roku shares jump 15% after the streaming-video platform company reported fourth-quarter results that beat expectations. Analysts note that platform revenues in the quarter were very strong.
• Twilio shares drop 11% after the software firm’s first-quarter forecast fell short of estimates. Investors were disappointed that there wasn’t a guidance upgrade following a strong showing at a recent investor day. However, analysts were broadly positive on the update and raised their targets on the stock on hopes of further AI-fueled growth.
• Wynn Resorts shares rise 1.5% after the casino operator reported fourth-quarter adjusted earnings per share that beat consensus estimates. Analysts highlighted the company’s strong performances in Macau and Las Vegas.

After President Donald Trump proposed reciprocal tariffs on US trading partners, investors are taking some comfort from speculation that negotiations may blunt their eventual impact. Meanwhile, strategists at Bank of America Corp. said faster inflation in the US could actually prove positive for markets because it will force Trump to adopt less severe tariffs.

Wednesday’s hotter-than-forecast consumer price index reading prompted a brief pullback in stocks and bonds, but the price pressures are a “blessing in disguise,” BofA’s Michael Hartnett said in a note. They mean “Trump must go small not big on tariffs and immigration in coming months to avoid fanning a second wave of inflation.”

“The volume of news stories on tariffs has risen as you would expect, but the impact of those stories on the dollar is declining,” said Michael Metcalfe, head of macro strategy at State Street Global Markets. “In part, this likely reflects the fact that asset managers already have a significant overweight in the dollar and if anything in 2025 have been trimming positions.”

The work required to propose reciprocal levies will occur on a country-by-country basis and could take until April to complete, said Howard Lutnick, Trump’s nominee to lead the Commerce Department. The comments followed news that Trump had ordered his administration to consider reciprocal tariffs on numerous trading partners.

“The fact that Trump didn’t explicitly target Europe yesterday and left an April deadline to negotiate with him brings some relief,” said Karen Georges, a fund manager at Ecofi in Paris.

In Europe, the Stoxx 50 holds near record levels as speculation grows that new tariffs threatened by US President Trump could mainly be intended as a negotiating tool. Basic resources is Europe’s best-performing sub-group as iron ore prices briefly spiked to four-month highs after a powerful cyclone narrowly missed hitting the world’s main export hub in Australia. Corporate earnings are also playing a role with Hermes leading a rally in luxury stocks after its sales surged in the fourth quarter. Another drop in European natural gas prices provides a further tailwind as concerns about refilling storage sites have eased, while prospects for peace talks between Russia and Ukraine have emerged. Here are the most notable European movers:

• Hermès shares rise as much as 5% to a record high after the French maker of luxury goods saw 4Q sales beat expectations, with analysts pointing to strength across all divisions and geographies.
• Ubisoft shares edge higher by 0.7% as the video-game maker reported 3Q results and said its cost savings plan is tracking ahead of schedule.
• Huhtamaki shares rise as much as 7% to the highest level since July after the Finnish consumer packaging firm’s fourth-quarter earnings beat estimates.
• Tomra shares rise as much as 12% to a two-year high after the maker of recycling equipment reports fourth-quarter revenue growth, with Jefferies pointing to strength in its recycling and food units in particular.
• Norsk Hydro shares rise as much as 2%, erasing an earlier decline. Morgan Stanley called the Norwegian metals company’s Ebitda a small beat if costs from one-offs were excluded.
• Auto and pharmaceutical stocks underperform after US President Donald Trump ordered his administration to consider imposing reciprocal tariffs on numerous trading partners to rebalance trade relations.
• Fresenius Medical Care shares drop as much as 6.9% after US kidney dialysis peer DaVita reported 4Q results and gave an outlook for 2025 adjusted EPS that fell short of what analysts expected.
• Umicore shares slide as much as 7.2% after the Belgium-based specialty chemicals firm posted a miss on half-year revenues.
• CVC Capital shares fell 2% after the company said it remains “cautious” on the near-term outlook.
• 1&1 and its parent United Internet slump after reporting Ebitda well below estimates amid frustrated hopes for compensation payments related to a network outage in May.
• Wood Group shares drop as much as 33%, the most since November, after the UK energy engineer said a review by Deloitte identified material weaknesses and failures.

Earlier in the session, Asian stocks rose, headed for a third day of gains as a rally in Chinese tech shares resumed. Signs of a delay in US President Donald Trump’s tariffs also helped lift sentiment. The MSCI Asia Pacific Index rose as much as 0.7%, with Alibaba and Tencent among the biggest contributors. The regional benchmark was set to cap its fifth-straight weekly advance. A gauge of Chinese tech shares in Hong Kong rebounded more than 5% after profit-taking pressure emerged in the previous session. A broader index of Chinese stocks trading in Hong Kong closed at a three-year high, as the nation’s growing capabilities in artificial intelligence bolster investor optimism over the market’s outlook. Traders are also looking forward to further government stimulus from the Two Sessions coming up in March.

In FX, the Bloomberg Dollar Spot Index is down ~0.2% after its largest one-day fall since Jan. 20 on Thursday.  The Bloomberg Dollar Spot Index has dropped about 2.5% from February’s high as investors wind back bets that Trump is determined to ramp up global tariffs as part of his “America First” policy.  Elsewhere in currencies, the yen rose, while the pound hit its highest level against the dollar this year. The euro fluctuated after data showed unexpected growth in the euro area economy in the final quarter of 2024.

• NZD/USD rallied by 0.6% to 0.5711, leading G-10 gains against the dollar; New Zealand’s manufacturing industry expanded for the first time in almost two years
• GBP/USD rose as much as 0.2% to 1.2596, a fresh year-to-date high
• EUR/USD up 0.2% to 1.0488, marking a fourth day of gains; Euro-area economy managed to eke out growth at the end of last year after all

In rates, treasuries climb, outperforming peers, with US 10-year yields falling less than 1 bps to 4.52%.  US long-end yields are ~1bp cheaper, 2-year sector marginally richer on the day, steepening 2s10s curve by ~1.5bp, 5s30s by ~1bp; 10-year is little changed around 4.535%, with bunds and gilts relatively cheaper by 1bp and 3bp. Long-dated dollar swap spreads extended this week’s sharp widening move, reaching least inverted level in more than a year; 30-year tenor touched -68.3bp, ended Thursday at -69.5bp. European bond yields rise, with UK and German 10-year borrowing costs adding 1-2 bps each.

In commodities, oil prices advance, with WTI rising 0.3% to $71.50 a barrel. Spot gold adds $10 to around $2,938/oz, and near a record high, on track for a seventh week of gains — its longest run since August 2020. The precious metal has gained this year, powered by haven demand, setting successive records with potential to line up a test of $3,000 an ounce. Bitcoin rises 0.6% to just above $97,000.

The US economic data calendar includes January retail sales and import/export price index (8:30am), January industrial production (9:15am) and December business inventories (10am). Fed speaker slate includes Dallas Fed President Logan at 3pm.

Market snapshot

• S&P 500 futures little changed at 6,139.25
• STOXX Europe 600 up 0.1% to 554.36
• MXAP up 0.8% to 187.88
• MXAPJ up 1.1% to 593.07
• Nikkei down 0.8% to 39,149.43
• Topix down 0.2% to 2,759.21
• Hang Seng Index up 3.7% to 22,620.33
• Shanghai Composite up 0.4% to 3,346.72
• Sensex down 0.2% to 75,961.87
• Australia S&P/ASX 200 up 0.2% to 8,555.81
• Kospi up 0.3% to 2,591.05
• German 10Y yield little changed at 2.43%
• Euro up 0.2% to $1.0484
• Brent Futures up 0.5% to $75.39/bbl
• Gold spot up 0.3% to $2,937.79
• US Dollar Index down 0.42% to 106.86

Top Overnight News

• US President Trump signed an executive order to establish a Make America Healthy Again Commission and is scheduled to sign executive orders on Friday at 13:00EST/18:00GMT.
• President JD Vance said Thursday that the U.S. would hit Moscow with sanctions and potentially military action if Russian President Vladimir Putin won’t agree to a peace deal with Ukraine that guarantees Kyiv’s long-term independence. Vance said option of sending U.S. troops to Ukraine if Moscow fails to negotiate in good faith remain “on the table.” WSJ
• US Treasury Secretary Bessent said if tariffs create inflation, it would be a one-time slight increase, while he also commented that he was barred from looking at payment systems for a few days: Fox Business.
• US judge ordered the Trump administration to restore funds for foreign aid programs: Politico.
• US State Department said the plane carrying US Secretary of State Rubio to Munich experienced a mechanical issue and was forced to turn around.
• The Pentagon is preparing a list of potential cost cuts ahead of the DOGE teams arrival; some military sections are generating lists of weapons they have wanted to cancel but couldn’t get political approval to do so: WSJ
• TikTok was restored to Apple and Google’s app stores following assurances from the DOJ that the US ban won’t be enforced for now. BBG
• Apple will overhaul its phones in China with AI features by the middle of this year, people familiar said. BBG
• China’s PBOC signaled potential policy changes to meet growing external challenges, pledging to keep supporting the yuan as trade frictions weigh on the currency. WSJ
• Chinese President Xi will chair a symposium focused on boosting the country’s private sector and prominent business leaders will be in attendance, including Alibaba’s Jack Ma. RTRS
• Taiwan’s president has pledged to boost investments in and purchases from the US in response to Trump’s global tariff threats and pressure on Taiwan’s semiconductor industry. The US trade deficit with Taiwan widened by $26.1bn to $73.9bn last year driven by demand for AI chips. FT
• Trump and Modi agree to work on a trade deal to resolve White House concerns about tariffs and other restrictions. WaPo
• The euro-area economy managed to eke out growth at the end of last year after all. Eurostat revised up its initial estimate to show GDP increased 0.1% in the fourth quarter. BBG
• The pentagon is preparing cost-cutting ideas (including scrapping/reducing certain weapons systems) as they wait for DOGE people to come to the Dept. of Defense, which could be as soon as today. WSJ

A more detailed look at global markets courtesy of Newsquawk

APAC stocks were mostly higher following the positive handover from Wall St, where yields declined following the latest PPI data and stocks benefitted despite US President Trump’s reciprocal tariff plan, as the delayed implementation provided optimism regarding negotiations. ASX 200 touched a record high with the index led by strength in gold miners, tech and some defensive sectors. Nikkei 225 bucked the trend and was pressured by recent currency strength although Sony, Nissan and Honda were among the biggest gainers in the index post-earnings. Hang Seng and Shanghai Comp were positive with continued strong momentum in Hong Kong amid a tech surge, although the gains in the mainland were only modest despite the PBoC’s recent policy implementation pledges, while this week’s open market operations resulted in a net weekly drain of around CNY 575bln.

Top Asian News

• Chinese Foreign Minister Wang said in a meeting with UK PM Starmer that China and the UK need to strengthen strategic communication and mutual trust, while they need to strengthen cooperation in climate change, AI, and green development. Wang also stated in a meeting with the UK Foreign Secretary that both sides will seek cooperation in financial services, clean energy and AI, while they reached a consensus on a roadmap for bilateral exchanges and cooperation. Furthermore, Wang stated that preparations are underway for dialogues on economy, trade, health, and industry.
• US President Trump said the TikTok deadline could be extended and he hopes to make a deal on TikTok, while they will make it worthwhile for China to approve the TikTok sale. It was separately reported that TikTok’s CEO plans more streamlining as talks with the Trump team continue and it is working with a ‘key person’ in the Trump administration on the US ban issue.
• Japan’s lower house voted to approve government nominee Junko Koeda for the BoJ board.

European bourses (Stoxx 600 U/C) began the session mostly lower, despite a stronger session in APAC trade overnight; though sentiment gradually improved as the morning progressed, to display a mixed picture thus far. Some modest pressure was seen in the complex after the Ukrainian President Zelensky said he does not think that the US has a plan for peace in Ukraine yet. European sectors are mixed, and aside from the top performer, the breadth of the market is fairly narrow. Basic Resources finds itself right at the top of the pile, lifted by gains in metals prices, given the positive risk tone in APAC trade overnight; particularly in China. Consumer Products follows behind, with the sector buoyed by strength in Luxury names after both Hermes (+3.5%) and Moncler (+1%) reported strong results.

Top European News

• EU is cutting back tech rules to boost AI investment, according to the bloc’s digital chief cited by FT.

FX

• USD has extended on yesterday’s selling pressure which was seen in response to President Trump’s reciprocal tariff memorandum in which he pledged to impose levies on “every country” that America has a trade deficit with and took aim at countries using VAT against the US. US Retail Sales is due alongside, Industrial Production and Fed’s Logan. DXY down as low as 106.82 (matching the January 18th low) vs. Thursday’s 107.79 peak.
• EUR/USD is up for a fifth session in a row and ventured as high as 1.0486 vs. the sub 1.03 levels seen at the start of the week. Optimism has been spurred by recent trade developments and how thus far, the worst case scenario of immediate and far-reaching tariffs on the EU has been avoided. If EUR/USD is able to clear 1.05, the YTD peak from January 27th sits at 1.0532. The Single-currency did dip a touch off best levels following remarks via Ukrainian President Zelensky said he does not think that the US has a plan for peace in Ukraine yet.
• JPY is marginally firmer in what has been a choppy week for USD/JPY. Currently trading within a tight 152.39-153.15 range.
• Cable has printed a fresh YTD peak in the wake of the softer USD with a current session high at 1.2594. For UK-specific drivers, strength was also observed yesterday on account of a better-than-expected outturn for UK GDP. Next upside target for Cable comes via the 30th December high at 1.2607.
• Antipodeans are both firmer vs. the broadly weaker USD. AUD/USD has printed a fresh YTD peak at 0.6340 with the next upside target coming via the 17th December high at 0.6377.
• PBoC set USD/CNY mid-point at 7.1706 vs exp. 7.2739 (prev. 7.1719).
• SNB Governing Board Member Tschudin said maintaining price stability is the most important task for the SNB and inflation can be outside the 0-2% target temporarily with the medium-term development more important. She also stated SNB’s policy toolbox includes the use of foreign exchange interventions and that negative interest rates remain an important policy instrument if needed.

Fixed Income

• USTs, and the complex generally, have been pulling back from yesterday’s 109-01 peak but haven’t fallen significantly thus far with the current low just a handful of ticks below at 108-26. Import/Export prices, Retail Sales and Fed’s Logan are on the docket for today; alongside some other Tier 2 US data. Continued bearish action brings into play support a 108-10 and then 108-04 before the figure.
• Bunds are softer directionally in-fitting with the above as the macro focus points are broadly the same, but does find itself under slightly more pressure than its US peer. Pressure which, while over 20 ticks at most, is relatively modest in the context of recent sessions. EZ GDP Flash Estimate Q/Q was revised a touch higher, but ultimately had little impact on German paper. Today we await updates on Trump tariffs and US data.
• Gilts are underperforming modestly, tested the 93.00 mark to the downside vs. a 93.50 peak on Thursday which itself was getting close to Monday’s 93.71 WTD peak. Technically, if the pressure continues then we look to lows from earlier in the week between 92.86-31. On the flip side, after the mentioned WTD peak last Friday’s best was 93.87 and then a gap until 94.35 from the prior day.
• Most recently, benchmarks have been lifting off worst, but still remain in the red, as some of the commentary from the Munich conference is less constructive on a Ukraine-Russia breakthrough.

Commodities

• Crude is firmer, but only very modestly with action contained to slim USD 0.50/bbl parameters throughout the European morning. On the geopolitical front for the Middle-East to see if the hostage release proceeds as planned on Saturday. On that, Axios’ Ravid cited an Israeli official saying “It seems that the crisis has been postponed until next week”.
• Elsewhere, US VP Vance, said the option of sending US troops to Ukraine if Russia fails to negotiate in good faith remains “on the table”, a remark the WSJ highlights is much tougher than the Defence Secretary earlier in the week who said the US wouldn’t pledge troops. WTI and Brent currently find themselves holding in the middle of USD 71.26-74/bbl and USD 74.96-75.56/bbl parameters.
• As it stands, and reflecting the ongoing progress towards a ceasefire and potential resumption of flows following that, March TTF is under continued pressure and below the EUR 50/MW mark and approaching lows from end-January when TTF was sub EUR 48/MW. No real reaction seen just yet from the latest Zelensky, Kremlin & US remarks around today’s meeting between the US and Ukraine.
• Gold likely continues to benefit from front-loading action, exacerbating haven appeal, as Trump continues to make tariff announcements. At a USD 2938/oz peak which is just shy of Tuesday’s USD 2942/oz WTD best.
• Base metals are firmer and benefitting from the delayed implementation of Trump’s latest tariff updates. A delay which provides hope for deals and/or exemptions to be made in the days/weeks ahead

Geopolitics: Ukraine

• US Defence Secretary Hegseth says the shape of Ukrainian borders remains to be seen. Hegseth says cannot make an assumption that US presence in Europe will last forever.
• “Moscow says that Russian officials will not attend the Munich Security Conference because Russia has not been invited to the event, in contrast to what Trump said about meetings with Ukrainian and Russian officials.”, via journalist Elster
• Ukraine President Zelensky says discussion with US President Trump was good and positive; adds that he does not think that the US has a plan for peace in Ukraine yet. Says he does not know about meeting with Russian side at the Munich conference; there will be talks with Russia after positions agreed with allies. Says as many as 3k North Korean troops could be deployed additionally to the Kursk front. Says he does not know about meeting with Russian side at the Munich conference; there will be talks with Russia after positions agreed with allies.
• US VP Vance is using the threat of sanctions and military action to push Russian President Putin into a Ukraine deal, according to WSJ. VP Vance says there are economic and military tools of leverage available to the US to use against Putin. President Trump is approaching negotiations openly, stating that everything is on the table to reach a deal. There is a deal that is going to come out of this that’s going to shock a lot of people.
• US VP Vance says will discuss the Ukraine conflict and how to bring it to a negotiated settlement.
• Ukraine finished work on draft minerals agreement and handed it over to the US side, via Reuters citing a delegation source; US side asked for time until later in the afternoon to work on it.
• Ukrainian President Zelenskiy and US Vice-President Vance meeting in Munich has been postponed to 16:00 GMT, according to Reuters citing sources
• US President Trump said officials from the US and Russia are to meet in Munich on Friday and Ukraine is also invited. Trump also stated that he had a good conversation with Russian President Putin the other day, while he added that the US is working with Ukrainian President Zelensky and that Russian Putin wants to make a deal but later commented that it is too soon to say what will happen in negotiations on Ukraine.
• Ukrainian President Zelensky’s advisor said Ukraine does not plan talks with the Russian side at the Munich conference, while the adviser stated the US, Europe, and Ukraine need a common position before engaging in talks with Russia.

Geopolitics: Other

• Turkish President Erdogan says there are now signs of a ceasefire in Gaza despite the agreement.
• Chinese Defence Ministry said Australia deliberately provoked China in the South China Sea on February 11th and has spread false narratives, while it is “invading and breaking into the homes of others”. It also stated that Australia must strictly restrain the actions of its front-line naval and air forces and avoid stirring up trouble in the South China Sea, as well as warned that Australia would only harm others and itself.

US Event Calendar

• 08:30: Jan. Retail Sales Advance MoM, est. -0.2%, prior 0.4%
  • Jan. Retail Sales Ex Auto MoM, est. 0.3%, prior 0.4%
  • Jan. Retail Sales Control Group, est. 0.3%, prior 0.7%
• 08:30: Jan. Import Price Index MoM, est. 0.4%, prior 0.1%
  • Jan. Import Price Index YoY, est. 1.9%, prior 2.2%
  • Jan. Export Price Index MoM, est. 0.3%, prior 0.3%
  • Jan. Export Price Index YoY, est. 1.4%, prior 1.8%
• 09:15: Jan. Industrial Production MoM, est. 0.3%, prior 0.9%
  • Jan. Capacity Utilization, est. 77.7%, prior 77.6%
  • Jan. Manufacturing (SIC) Production, est. 0.1%, prior 0.6%
• 10:00: Dec. Business Inventories, est. -0.1%, prior 0.1%

DB’s Jim Reid concludes the overnight wrap

May I be the first to wish many of you a happy Valentine’s Day this morning. How are my wife and I celebrating this most romantic of days? Well she’s going to a spa weekend in Bath with some friends and I’m babysitting, or what some people refer to as “parenting”. Wish me luck.

It was a love-in for markets yesterday with bonds and equities rallying following better-than-expected inflation data and news that details on reciprocal tariffs would not come before April. This led to a revival of hopes that the Fed would still cut rates this year, particularly after the more hawkish fears post the upside surprise in the CPI report the previous day. That meant the 10yr Treasury yield fell -9.5bps to 4.53%, whilst the US 2yr inflation swap (-2.1bps) also fell back a bit, coming off its highest level in almost two years. And with investors becoming more relaxed on inflation again, the S&P 500 was up +1.04%, closing less than 0.1% beneath its all-time high last month.

The stock rally gathered more steam after Trump’s press conference unveiling reciprocal tariff plans which was light on immediate specifics. Specifically, the President ordered “to investigate the harm to the United States from any non-reciprocal trade arrangements adopted by any trading partners” and propose remedies. In determining of reciprocal tariffs against individual trading partners, Trump’s memo also mentioned countries’ use of non-trade barriers and VAT taxes. Such a country-by-country process should inevitably take some time and Commerce Secretary nominee Lutnick said that investigations would complete by April 1 and remedies could be implemented immediately after. In the meantime, questions whether this tariff threat will be used as a negotiating tool are likely to linger. Separately, Trump said that tariffs on cars above the reciprocal tariffs would also be coming soon. Still, the combination of limited tariff news and lower yields led to the broad dollar index (-0.83%) falling to its lowest since mid-December.

So this did little to derail the bond rally that had emerged earlier after the release of the US PPI inflation data for January. On the face of it, the headlines weren’t overly positive, as PPI came in at +0.4% for the month (vs. +0.3% expected). However, the components of the PPI such as healthcare and air fares that feed into PCE (which is the Fed’s preferred measure of inflation) came in softly. So that led US Treasuries to rally across the curve, because the view was that this unwound some of the upside surprise we got from the CPI the previous day. As a result, futures raised the likelihood of a rate cut by the Fed’s June meeting to 45%, up from 37% the previous day, even if that’s still lower than the 58% probability before CPI.

All-in-all, this backdrop proved to be pretty favourable for US equities, with the S&P 500 (+1.04%) closing just -0.06% beneath its record high from January 23. The advance was led by the Magnificent 7, which surged +1.85%. But the rally broadened amid the limited news on tariffs, with all 11 major S&P 500 sector groups higher on the day and the small cap Russell 2000 up +1.17%. The gains were also helped by the supportive macro backdrop, as the initial weekly jobless claims fell to 213k in the week ending February 8 (vs. 216k expected), which pushed the 4-week moving average down to 216k. Moreover, the continuing claims for the week ending February 1 fell back to 1.850m (vs. 1.882m expected).

Otherwise yesterday, financial assets were still reacting to the developments around Ukraine, given President Trump had said that negotiations would open with Russia. So that led to a fresh outperformance for European equities, with the STOXX 600 (+1.09%) and the DAX (+2.09%) both powering forward to new records. Indeed, the DAX’s advance already leaves it up +13.58% for the year, cementing its position as the best performing major equity index of 2025. And in Ukraine itself, the country’s dollar bonds continued to surge yesterday, with the 10yr yield coming down to a near three year low of 12.56%. Watch out for headlines on this from the annual Munich security conference that starts today.

Elsewhere in Europe, there was some better-than-expected data from the UK yesterday, as Q4 GDP unexpectedly grew by +0.1% (vs. -0.1% expected). So that led investors to dial back the likelihood of another rate cut at the Bank of England’s next meeting in March, with the probability of a cut now down to 17%, from around 25% before the data. Nevertheless, gilts moved in line with the broader rally across the continent, with yields on 10yr bunds (-5.9bps), OATs (-8.5bps), BTPs (-7.0bps) and gilts (-5.3bps) all experiencing a decent decline on the day. The moves were further supported by declines in European natural gas futures (-3.77%), which fell after Bloomberg reported that Germany had called for exemptions from the EU’s targets for storage filling. In fact, natural gas futures are now down -12.5% from their 2-year high on Monday.

Those overnight gains on Wall Street are also echoing across Asian equity markets with the Hang Seng (+2.24%) leading gains, and getting closer to topping its near three year highs back in October. Elsewhere, the CSI (+0.70%) and the Shanghai Composite (+0.25%) are also edging higher as enthusiasm around DeepSeek continues to buoy Chinese technology shares. Meanwhile, the KOSPI (+0.48%) and the S&P/ASX 200 (+0.31%) are also trading in positive territory while the Nikkei (-0.61%) is bucking the regional trend. S&P 500 and NASDAQ 100 futures are both trading around a tenth of a percent higher.

Early morning data showed that South Korea’s unemployment rate hit 2.9% in January, easing from its three-year high of 3.7% the month before (3.2% expected). However, much of this was due to the government front loading a jobs support program so the underlying picture is less healthy. In FX, the Japanese yen (+0.10%) is strengthening for the second consecutive session trading at 152.65 against the dollar following President Trump’s decision to postpone the implementation of reciprocal tariffs.

To the day ahead now, and there are several US data releases, including retail sales, industrial production and capacity utilization for January. Otherwise, we’ll hear from the Fed’s Logan. And the Munich Security Conference will get underway.

Days after Democrats threatened to shut down the government in response to Elon Musk and DOGE shutting down the government – planning to deprive House Speaker Mike Johnson of a few Democrat votes to override GOP hardliner holdouts to avoid an upcoming government shutdown, the joke’s on them. 

On Thursday, hard-line conservatives and House Republican leadership reached a last-minute agreement on the party’s budget resolution, smoothing the path for the measure to advance out of committee and setting the stage for a broader push on former President Donald J. Trump’s legislative priorities.

The deal, brokered shortly before a key committee vote, allows Representative Jodey Arrington (R-TX) and the chairman of the Budget Committee, to adjust spending caps and tax provisions within the framework. If approved, the resolution would unlock the budget reconciliation process, which Republicans aim to use to push Trump’s policies forward without Democratic support.

“This is it. We declare victory,” Representative Andy Harris (R-MD) and chair of the House Freedom Caucus, said following the agreement. “We have a bill that delivers meaningful deficit reduction, funds the border, and advances the president’s tax policy. It all happens here.“

A Balancing Act on Spending and Taxes

The budget resolution, released by Arrington on Wednesday, outlines at least $1.5 trillion in spending cuts across government programs, with a target of $2 trillion in deficit reduction. It also sets a $4.5 trillion cap on the deficit impact of extending Trump’s 2017 tax cuts while allocating $300 billion in additional funding for border security and defense.

Negotiations in recent weeks had focused on bridging differences between fiscal conservatives demanding deeper spending reductions and members of the tax-writing Ways and Means Committee, who sought a higher cap to accommodate Trump’s tax agenda. The agreement allows Arrington to adjust the spending floor and tax cap based on final deficit reduction figures, potentially increasing the tax cut allowance to $5 trillion if additional savings are found elsewhere.

“This budget put forward by the chairman is a giant step forward to reduce spending, the primary driver of the inflation, and the expansion of the government largesse that is strangling the future of our children and grandchildren” said Rep. Chip Roy (R-TX), signaling his support for the measure after expressing skepticism earlier in the week, adding “I am proud of what the chairman has put forward.”

Hard-Liners Move Toward Support

The deal appears to have won over key conservative holdouts on the House Budget Committee. Rep. Ralph Norman (R-SC), a member of the Freedom Caucus, had voiced opposition to the resolution on Wednesday, citing concerns over Medicaid work requirements and block grants. By Thursday, he expressed optimism about its chances of passing out of committee.

Republicans can afford to lose only two votes on the committee to advance the resolution, assuming all Democrats oppose it. The manager’s amendment could also secure support from Rep. Jason Smith (R-MO) and chair of the Ways and Means Committee, who had pushed for a higher tax cap.

“Let me just say that a 10-year extension of President Trump’s expiring provisions is over $4.7 trillion, according to [the Congressional Budget Office],” Smith said earlier this week. “Anything less would be saying that President Trump is wrong on tax policy.”

Intel shares are on track for their strongest weekly gain on record, based on Bloomberg trading data dating back to 1982. Investor enthusiasm surged after Vice President JD Vance, speaking at an AI summit in Paris on Tuesday, noted the Trump administration would boost domestic chip production. Momentum continued on Wednesday after a report from Robert W. Baird analysts suggested that the Trump team is working to broker a joint venture between Intel and TSMC.

On Tuesday, at the AI summit in Paris, VP Vance told the audience: “The Trump administration will ensure that the most powerful AI systems are built in the U.S. with American-designed and manufactured chips.”

One day later, that was followed by a note via Robert W. Baird analysts claiming that the Trump team was pushing Intel and TSMC to form a joint chip production venture. 

“There are discussions from the Asia supply chain that the U.S. government will get involved in potentially the following: TSMC would send engineers to Intel’s 3nm/2nm fab, applying the company’s know-how to ensure that the fab and subsequent manufacturing projects from Intel become viable,” Baird’s Tristan Gerra told clients. 

Gerra said, “The fab could be spun off into a new entity jointly owned by TSMC and Intel, and run by TSMC. The new entity would receive U.S. Chip Act funding.”

“While there is no confirmation and potential completion of this project could be lengthy, we think this move makes sense,” she noted. 

On a separate note, Goldman’s Bruce Lu, Toshiya Hari, and others provided clients on Friday with a closer look at the JV rumors involving Intel and TSMC: 

Media has speculated that TSMC and Intel (covered by Toshiya Hari) may be forming a joint venture to enhance U.S. chip manufacturing capabilities or that Intel may be considering spinning off its semiconductor fabrication unit to create a collaborative venture with TSMC with TSMC providing technical expertise and engineers to support advanced chip production at Intel’s fabs.

At a glance: Fundamentally, the strategic merit for a potential JV seems unclear as TSMC and Intel operate under different business models and different tool sets which would likely require extra investment e.g. for purchasing/retiring equipment. For Intel and TSMC, even when looking at comparable technology nodes, some processes and equipment used are different. Also, Intel’s equipment is generally for older process nodes, which is not the primary area of focus for capacity expansion for TSMC (i.e. TSMC’s spending currently is mostly for its N2 expansion).

Additionally, TSMC’s business strategy has been to remain independent and avoid entering into JVs that could compromise its neutral status with other clients. More importantly, TSMC’s advanced nodes technology is its own property with proprietary processes, and is a key competitive advantage. Sharing this technology with a direct competitor like Intel could undermine its market position. Additionally, TSMC has historically been very cautious about sharing its intellectual property with other companies, especially with those in direct competition within the semiconductor space. Therefore, a technology transfer agreement between TSMC and Intel would seem uncharacteristic of TSMC’s strategy.

Another outstanding issue is potential anti-trust implications of any TSMC/Intel partnership/JV given the dominant market positions of the two companies. However, to note, Intel and UMC announced a foundry collaboration in January 2024, the two companies will jointly develop a 12nm process platform. UMC will be leveraging Intel’s existing equipment in Intel’s existing fabs, with mass production timeline expected to begin in 2027 (see also: Intel/UMC new foundry collaboration; we view it as a positive strategic move for both companies, 26 January 2024).

The JV rumors have been more than enough to spark buying panic in beaten-down Intel shares. 

There’s a tweet for that. 

Intel becoming a meme stonk?

— zerohedge (@zerohedge) February 13, 2025

Intel may log one of the best weeks on record if gains hold through Friday’s close. 

Here’s Tom’s Hardware’s take on the rumors:

Ongoing geopolitical turmoil, coupled with Intel’s financial and execution struggles, have generated various rumors surrounding the blue giant. In this case, significant technological and business hurdles — ranging from differences in tooling process recipes at Intel and TSMC to TSMC’s lack of incentive to aid a competitor — cast doubt on the feasibility of such a partnership.

. . . 

Walmart has secured its position as America’s “price discount juggernaut” retailer as the Biden-Harris inflation storm sparked a scramble by big box retailers, supermarket retail chains, and discount chains into a value war to retain consumer market share. 

As previously noted, Walmart has emerged as the clear winner in the “trade-down phenomenon” that continues today as more affluent shoppers gravitate to the retail giant, and a new Goldman report shows this trend is only gaining pace. 

Goldman’s Kate McShane, Mark Jordan, and others used retail data from HundredX, including a household income breakdown and Net Purchase Intent trends, to show that Walmart has continued to gain market share of upper-income households, while other retailers, including Costco and Target, have marginally increased their share of lower-income households relative to the industry over the last year. 

“In our view, the share shift among income cohorts is likely due in part to upper-income consumers seeking out convenience, everyday value, and a comprehensive assortment through Walmart, which over-indexes to lower-income consumers relative to COST and TGT,” McShane told clients. 

The analysts add more color on the shifting consumer trends:

However, over the course of the last year, certain companies have increased their customer share of lower-income households relative to the industry average. In Jan ’24, TGT’s share was -5.4% lower than the industry, but it is now -3.0% lower in Jan ’25. Similarly, COST’s share in Jan ’24 was -7.7% lower than the industry, but it is now only -4.9% lower. In comparison, Walmart’s share of lower-income consumers relative to the industry has been decreasing: in Jan ’24, the company’s share was +9.0% higher than the industry but is now only +5.5% higher. More of Walmart’s customer base has been shifting towards upper-income households, where share was -9.0% lower than the industry in Jan ’24, but it is now only -5.5% lower. In general, trends point towards companies such as COST and TGT increasing their lower-income audience share, while Walmart is shifting towards increasing its upper-income audience share.

The analysts noted that price discounts and free delivery of goods likely led to a growing share of upper-income shoppers trading down to Walmart:

In 3Q, WMT saw higher engagement across income cohorts, with upper-income households continuing to account for the majority of share gains. In our view, this is likely due in part to WMT’s expanded convenience offerings (e.g., free delivery through Walmart+ on $35+ orders, curbside pick up), store remodels, more comprehensive assortment through Marketplace, and a continued focus on every day value, with our pricing studies showing that Walmart US grocery prices remain ~11% below peers, on average.

Here’s the income breakdown of shoppers at each of the retail giants:

The takeaway is that the multi-year inflation storm has transformed the nation’s consumers into Walmart shoppers—yet another sign that living standards continue to erode due to horrible decision-making by elected and unelected elites in the DC swamp. This has even impacted wealthy consumers who must trade down to Walmart. The financial misery DC folks have inflicted on all consumers has unified the nation, and many are thrilled with DOGE disrupting the swamp. It’s called payback.

By Tsvetana Paraskova of OilPrice.com

Elliott Management is pushing for major asset sales at BP to address the undervalued shares of the UK-based supermajor after the U.S. activist investor built a stake of nearly 5% worth about $4.75 billion (3.8 billion British pounds), the Financial Times reported on Thursday, quoting sources familiar with the matter.

News of Elliott’s recently-built stake in BP, which now makes it the third-largest shareholder, broke this weekend, pushing BP’s shares soaring on Monday.

On Tuesday, BP’s stock fell as the company reported earnings below expectations. The fourth-quarter profit missed the analyst consensus estimate and was the lowest quarterly profit since the fourth quarter of 2020 when the pandemic was hitting global oil demand. BP attributed the lower earnings to weaker realized refining margins, as well as higher impact from turnaround activity, seasonally lower customer volumes, and fuel margins.

In the Q4 earnings release, BP also teased a fundamental reset of strategy as it seeks to push up its stock performance and regain investor trust.

“Building on the actions taken in the past 12 months, we now plan to fundamentally reset our strategy and drive further improvements in performance, all in service of growing cash flow and returns,” BP’s chief executive Murray Auchincloss said in a statement.

BP’s leadership will communicate its new strategy, which “will be a new direction for bp”, at a Capital Markets Update on February 26, Auchincloss added.

Analysts and investors expect even more cuts to the low-carbon business and a pledge to boost oil and gas production at the capital markets day later this month.

The pressure became more intense after reports emerged that Elliott Management had bought a stake in BP and would be pushing for changes in strategy, or even for board reshuffles.

This week, Elliott took aim at another large oil company—it demands changes at U.S. refiner Phillips 66 after amassing a $2.5 billion stake.

Tesla is testing a couple of new security measures in a pilot program to prevent cable theft by metal scrappers at its Supercharger stations across the country.

BREAKING: Tesla has started installing new anti-theft devices on Supercharger cables.

Called DyeDefender, these are stainless steel hose barriers filled with pressurized, blue-staining dye that explodes when someone attempts to cut the cable.

Will these be installed everywhere… pic.twitter.com/NOEbEhqT8H

— Drive Tesla 🇨🇦 (@DriveTeslaca) February 12, 2025

EV blog Electrek reports Tesla is testing a new wrap around the cable that sprays blue dye everywhere if punctured. 

First, it is currently testing a new wrap around the cable. It has been spotted at a Tesla Supercharger in Seattle, Washington (Reddit):

First, it is currently testing a new wrap around the cable. It has been spotted at a Tesla Supercharger in Seattle, Washington (Reddit):

The second security measure is to engrave the copper wiring with “Property of Tesla” so scrap metal yards can notify local police about cable theft.  

Supercharger cables will also have “Property of Tesla” engraved from our Buffalo NY factory, so recycling companies shouldn’t accept them and notify us. It’s a scalable, cost-effective solution that doesn’t impact service operations & customer experience.

As long as the scrapyards and recycling facilities are willing to enforce this, it could help deter thieves from stealing the cables if they are not able to sell them.

Last summer, a series of Tesla Superchargers and Electrify America stations were hit by thieves. 

Thieves In Seattle Targeting EV Charging Stations Has Reached “Epidemic Proportions” https://t.co/rBHoty852L

— zerohedge (@zerohedge) July 3, 2024

Thieves have also targeted catalytic converters on vehicles, copper wire and pipe, light poles, and anything containing base metals.

Authored by Liz Heflin via Remix News,

Retired Russian Armed Forces Intelligence Colonel Anatoly Matviychuk has come out swinging in the lead-up to the Munich Security Conference, saying the U.S. has compromising information on Zelensky that will force him to compromise, namely, that he has possibly embezzled large amounts of money from the funds sent to Ukraine for its defense against Russia. 

In an interview with MK, the retired colonel said that President Trump “has long had a grudge against Zelensky,” since the head of the Kyiv regime supported his persecution and passed on compromising information about him to the previous U.S. administration under Biden.

“Today, Trump is skillfully dealing with everyone who once spoke out against him,” Matviychuk noted.

“Among them are Zelensky and Yermak. I am sure that Trump has more than enough dirt on them.”

These may have to do with the embezzlement of money. 

“It is not surprising that it has now become clear that about 100 billion dollars have sunk into oblivion,” the intelligence officer noted.

“I believe that in fact the U.S. knows very well where these billions ended up…”

Matviychuk claims the money ended up in Zelensky’s Spanish, Italian and British real estate. However, he also went after Zelensky’s wife. 

“In addition, the million-dollar expenses of the First Lady of Ukraine, Elena Zelenskaya, in European boutiques have been well calculated,” the expert added.

Matviychuk added that Zelensky has also opened himself up to accusations of prolonging the conflict and numerous war crimes.

This is not the first time someone has claimed Zelensky has enriched himself from U.S. taxpayer money sent for his country’s defense against Russia. 

The Organized Crime and Corruption Reporting Project found that Zelenskyy and his partners owned a network of offshore companies dating back to 2012 in the British Virgin Islands, Cyprus and Belize.

The documents also revealed that before Zelenskyy became president in 2019, he gave his stake in an offshore company to a business partner but made an arrangement that the offshore company would continue paying dividends to a company Zelenskyy’s wife owned, the reporting project said.

In response, USA Today offered up its own “fact check,” stating:

“The Pandora Papers – secret records obtained by the International Consortium of Investigative Journalists – highlight information about Zelenskyy’s overseas dealings. However, the papers don’t reveal the exact amount Zelenskyy or his wife have in overseas accounts. Sullivan said none of the assets claimed in the social media post were in the papers.”

USA Today also cites a 2022 Forbes piece that estimated Zelensky’s real estate portfolio at some $4 million after reports that he purchased his parents an $8 million mansion — although USA Today said the claims about an $8 million mansion were false. Nor did the magazine find any proof to back up claims that Zelensky owned three private jets or five luxury yachts. The original Instagram post targeted by USA Today reportedly stating that Zelenky owned “a 35 million dollar home in Florida and has $1.2 billion in an overseas bank account” is no longer available. 

Despite no hard evidence of embezzlement, allegations have continued non-stop, with many saying that now that Donald Trump is in office, a real audit will uncover the truth. 

Tucker Carlson headlined a recent episode of his podcast by claiming “Ukrainian military is selling American weapons systems on the black market, including to drug cartels on the (American) border.” 

His guest U.S. Col. Daniel Davis said that Zelensky had even recently made a point of denying such allegations, and “the media just reports what he says.” The colonel then added that this has been “an open secret for almost the duration of (the war).”

Read more here…

In Brazil, it is common for shoppers to use a card that works both as a debit card and a credit card, with most credit cards also accepting the option to pay in installments. 

Data by a Statista Consumer Insights survey shows that a high 72 percent of online respondents aged between 18 and 64 years old said that they owned a credit card in 2024.

As Statista’s Anna Fleck shows in the chart below, credit card ownership is also high in Canada, at 68 percent.

 

You will find more infographics at Statista

Surveys on the topic have found that one of the top reasons Canadians carry credit cards is for their rewards programs. Canada is considered to have one of the highest credit card penetration densities of the world, with many Canadians owning either one or two of the payment cards.

It is one of the few countries with more credit cards than debit cards.

In the U.S., 49 percent of respondents said they owned a credit card last year, versus 42 percent in China and just 38 percent in the Netherlands.

By Alex Kimani of OilPrice.com

Freight rates to ship Russian urals from Baltic ports to India jumped 20% in February to $7 million to $8 million per voyage after the Biden administration imposed harsher sanctions on Russian crude. 

Russia’s provisional February loading plan for western ports was revised up by 19% to 1.9 million barrels per day, Reuters calculations showed early this month. Russian refineries are processing more crude oil in the hope of boosting fuel exports after the Biden administration imposed fresh sanctions on Russian crude. The sanctions have targeted Surgutneftgas and Gazprom Neft, two Russian oil firms that handle 25% of Russian oil exports. The two companies shipped an average of 970,000 bbls a day in 2024. 

“We have to utilize oil processing as much as we can in order to use (the sanctioned) oil,” a Russian industry source said.

Middlemen who supply Russian oil have stopped offering cargoes after the latest U.S. sanctions, Bharat Petroleum CFO has revealed. Bharat Petroleum and other Indian state refiners buy Russian oil in the spot market, mainly from traders.

“We have not received any new offers for the March window (delivery). Traders are asking us to wait. We are waiting to get offers,” Vetsa Ramakrishna Gupta told Reuters. 

“We are not expecting the similar number of cargoes that we used to get in the months of December and January,” he added.

The Indian government is considering extra energy imports from the United States, as Prime Minister Narendra Modi visits the country and a scheduled meeting with U.S. President Donald Trump. Modi is set to hold bilateral talks with Trump.

Meanwhile, India’s oil demand growth is estimated to have exceeded China’s for the first time in 2024, and is expected to do so again in 2025. According to Kang Wu, global head of macro and oil demand research at SPGCI, India’s oil demand in the current year grew by 180,000 barrels per day, surpassing China’s growth at 148,000 bpd. India’s oil demand is expected to increase by 3.2% Y/Y in 2025 compared to a 1.7% clip by China. 

“Make no mistake, President Trump will not allow anyone to turn Uncle Sam into ‘Uncle Sucker,'” US Defense Secretary Pete Hegseth told a press conference at NATO headquarters in Brussels. Sky News and others subsequently declared, now NATO gets the MAGA treatment…

Hegseth brought a message saying “we must make NATO great again” and called on European allies to do “far more for Europe’s defense” – such as ramping up defense spending to 5% of GDP in line with Trump policy. The Pentagon chief laid out that he’s been given “clear mission” from the Commander-in-Chief to “achieve peace through strength as well as put America first”.

This is being done, he explained, by “reviving the warrior ethos, rebuilding our military and re-establishing deterrence”.

“NATO should pursue these goals as well,” Hegseth added. “NATO is a great alliance, the most successful defence alliance in history. But to endure for the future, our partners must do far more for Europe’s defense.”

When asked about US military funding for Ukraine moving forward, Hegseth responded: “I think it would be fair to say that things like future funding, either less or more, could be on the table in negotiations.”

The day prior he shocked European partners by declaring that there will be no future admission of Ukraine into NATO. Commenting on follow-up questions regarding Trump’s commitment to NATO, one UK correspondent observed the following:

[Mark] Stone says Hegseth’s messaging was “so clear”, particularly when asked if America was still committed to article five, which states that an attack on one NATO nation is effectively treated as an attack on all of NATO.

“He was quite clear that, yes, America is a NATO member and article five stands,” Stone explains.

“I think that will be very encouraging for anyone who is under any confusion about that yesterday.”

U.S. Defense Secretary Pete Hegseth:

Values are important. But you can’t shoot values.pic.twitter.com/p83lXrBc0C

— Clash Report (@clashreport) February 13, 2025

Indeed Hegseth rejected accusations that the US stance is undermining NATO security and stability. “NATO is a great alliance, the most successful defense alliance in history, but to endure for the future our partners must do far more for Europe’s defense. We must make NATO great again,” he said during the presser from Brussels.

His reference to not allowing the United States to be a sucker came at the very end of the remarks:

Hegseth says at the end of Eisenhower’s presidency, he was concerned Europe was not shouldering enough of its own defense, “nearly making, in Eisenhower’s words, a sucker out of Uncle Sam”.

He finishes by saying Trump “will not allow anyone to turn Uncle Sam into Uncle Sucker”.

Realism… is not a concession to Putin, but an acknowledgement of reality on the ground…

🇺🇸🇺🇦 “I think realism is an important part of the conversation that hasn’t existed enough.”

Secretary Hegseth explains that it’s time to leave the beautiful Delululand, and realize that anyone who thinks that Ukraine will be going back to the 2014 borders is crazy. pic.twitter.com/aBROCU1avh

— DD Geopolitics (@DD_Geopolitics) February 13, 2025

Clearly, MAGA has put Europe on notice, and it’s evident to all particularly when it comes to rapidly moving forward with diplomatic engagement with Putin and negotiations to settle the war.

Hegseth just dropped the mic at the NATO summit…

Secretary of Defense Pete Hegseth just dropped the mic at the NATO Summit

“Make no mistake, President Trump will not allow anyone to turn Uncle Sam into Uncle Sucker.”
pic.twitter.com/uH8lV4wnKh

— George (@BehizyTweets) February 13, 2025