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Biden Blocks $14B Nippon Steel Deal

U.S. President Joe Biden has made the decision to block a $14 billion acquisition of U.S. Steel (NYSE: X) by Japan’s Nippon Steel, citing potential national security risks.

In his statement, Biden framed the decision as necessary to preserve the nation’s ability to independently maintain critical infrastructure and production capabilities.

“It is my solemn responsibility as president to ensure that, now and long into the future, America has a strong domestically owned and operated steel industry that can continue to power our national sources of strength at home and abroad,” Biden said.

You can read more on the matter here.

What’s going on?

• Canadian PM’s Absence Fuels Leadership Crisis as Party Members Call for Exit (theDeepDive)

• South Korea’s impeached leader avoids arrest as presidential guard and supporters block police (Globe)

• British Columbia Begins Taxing Home Flippers Up To 20% (theDeepDive)

• How China Is Building More Nuclear Power Than Anyone Else in the World (Bloomberg)

• Biden Moves to Permanently Ban Offshore Oil Drilling (theDeepDive)

• Canada aims to become a major player in rare earth mining for chips and batteries (Techspot)

• Swedish Ex-Defense Chief, Former NATO Skeptic, Urges Article 4 Talks Over Baltic Threats (theDeepDive)

• Founder of Canadian anti-Israel group resigns citing lack of acceptance 'as a non-Palestinian' (NP)

• Inside the $150 Million Scandal That Shuttered Canada’s Clean Tech Agency (theDeepDive)

• US surgeon general urges cancer warnings for alcoholic drinks (Reuters)

• Canada’s Healthcare Wait Times Reach Record Highs in 2024, Fraser Institute Reports (theDeepDive)

What’s the latest?

• Politics: Rep. Mike Johnson faces a critical vote to retain his role as Speaker of the House in the 119th Congress, needing near-unanimous Republican support due to the GOP's slim 219-215 majority. With 434 members potentially voting, Johnson can only afford to lose one Republican vote, but Rep. Thomas Massie has already stated he will not back him. Johnson, first elected Speaker on October 25, 2023, was the fourth nominee after Kevin McCarthy’s ousting.

• Auto: General Motors sold over 2.7 million vehicles in 2024, up 4.3% from 2023 but below its 2019 total of 2.9 million units. Ford sold 2.08 million vehicles in 2024, up from under 2 million in 2023, with electrified vehicle sales increasing 38.3% year-over-year, making up 13.7% of total sales. Both companies achieved their best U.S. sales since 2019.

• Crypto: BlackRock's iShares Bitcoin Trust ETF (IBIT) saw $333 million in outflows on Thursday, marking its largest withdrawal since launch and part of a three-day streak of outflows. The ETF, with over $53 billion in assets, contributed to Bitcoin's 2024 peak of $108,315 in December. U.S. Bitcoin ETFs experienced net outflows of $2 billion since Dec. 19, while Bitcoin futures open interest dropped nearly 20%. Bitcoin traded at $96,465 on Friday, 11% below its record high.

• Nippon Steel: President Joe Biden blocked Nippon Steel's $14.1 billion acquisition of United States Steel Corp., citing national security risks and the need for a domestically controlled steel industry. US Steel's shares dropped 5.5% following the announcement. The decision, supported by the United Steelworkers union, mandates the companies formally abandon the deal within 30 days. Biden emphasized the importance of a strong U.S.-owned steel sector for infrastructure, defense, and supply chain resilience.

• China Stocks: China's CSI 300 fell 1.18% to 3,775.16, while Hong Kong's Hang Seng rose 0.42%. South Korea's Kospi surged 1.79% to 2,441.92, led by SK Hynix (+6.25%), despite political turmoil. The Dow dropped 0.36% to 42,392.27, the S&P 500 fell 0.22% to 5,868.55, and the Nasdaq declined 0.16% to 19,280.79, marking a five-day losing streak. Tesla slumped 6%, and Apple declined 2.6%, weighing on U.S. markets.

Volkswagen invests in Patriot Battery Metals

The stock market and stuff

• Biden Blocks $14B Nippon Steel Takeover of U.S. Steel Over National Security Concerns (theDeepDive)

• Stellantis, VW Drop After Losing US Electric-Car Subsidy (Bloomberg)

• Morgan Stanley Joins Wall Street Exodus from Net-Zero Banking Alliance (theDeepDive)

• US energy markets on edge as ‘polar vortex’ set to deliver deep freeze (FT)

• Morgan Stanley Mulls Retail Crypto Push Through E-Trade (theDeepDive)

In the juniors

• Cerence AI spikes on collab with Nvidia to advance LLMs (SA)

• Carebook Tech To Be Acquired At 122% Premium In All-Cash Deal (theDeepDive)

• Eminent Gold Provides Drilling Update on Hot Springs Range Project (JMN)

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