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Nippon Steel Doubles Down on $14.1-B US Steel Pursuit

Nippon Steel remains resolute in its aim to acquire US Steel (NYSE: X) despite encountering political resistance and shifting statements from the White House.

Nippon Steel President Tadashi Imai, speaking in Tokyo, addressed President Donald Trump’s recent suggestion that Nippon Steel might opt to invest in US Steel instead.

“The starting point for our discussions with the US government will be this merger agreement,” he said. “From there, we will discuss with the US administration on how we can get President Trump to approve of the deal.”

The $14.1 billion takeover attempt was blocked by former President Joe Biden in early January, citing national security concerns. Trump has echoed similar reservations.

You can read more on the matter here.

What’s going on?

• Fetterman Launches Petition Drive for Federal Marijuana Legalization (theDeepDive)

• U.S. research funding cuts change landscape for Canadian universities, researchers (Globe)

• Make Copper Great Again? Trump Admin Mulls Tariffs On Copper (theDeepDive)

• Donald Trump announces US ‘gold card’ visa scheme (FT)

• High Energy Costs Force Irving Paper to Slash Operations by 50% (theDeepDive)

• US New-Home Sales Drop to Three-Month Low on Rates, Storms (Bloomberg)

• UK Hits Russia With New Sanctions as Trump Signals Relief (theDeepDive)

• U.S. and Ukraine Reach Minerals Deal, but Details Remain Unresolved (WSJ)

• Bank of Canada Warns Tariffs Would Slash Growth, Push Inflation Higher (theDeepDive)

• Supreme Court of Canada says it is moving away from social-media platform X (Globe)

• Tariff Tantrum: Trump Targets Canada’s Digital Tax (theDeepDive)

What’s the latest?

• Super Micro: Super Micro Computer shares surged 19% after filing delayed financial results by Nasdaq’s deadline, reporting fiscal 2024 sales of $14.99 billion (up from $7.12 billion) and net income of $1.15 billion (up from $640 million). The company identified material weaknesses in internal controls and plans to strengthen IT systems and hire more accounting staff. Despite regaining Nasdaq compliance, risks remain, including litigation, lower credit ratings, and reputational harm. Shares remain volatile, down 48% year-over-year, with a 12% drop following the latest filing.

• Amazon: Amazon announced "Alexa+," a generative AI-powered upgrade to its voice assistant, launching next month for $19.99/month (free for Prime members). The overhaul includes new capabilities like booking reservations, organizing documents, and personalized recommendations, leveraging Amazon’s Nova AI models and third-party models like Anthropic’s. Alexa, historically unprofitable, has cost Amazon billions, and the subscription model aims to offset AI development expenses. The move follows increased competition from ChatGPT and other AI assistants, as Amazon works to make Alexa a viable business.

• Market: Canada’s S&P/TSX composite index rose 208.80 points to 25,412.78, driven by gains in technology and base metals. In the U.S., the Dow Jones climbed 156.12 points to 43,777.28, while the S&P 500 and Nasdaq gained 49.93 and 242.60 points, respectively. The Canadian dollar fell to 69.70 cents US, while gold rose to US$2,930.20 an ounce, and copper increased to US$4.62 per pound. Crude oil edged up to US$69.11 per barrel, while natural gas dropped to US$3.99 per mmBTU.

• Bank of Nova Scotia: Bank of Nova Scotia is shifting its focus from international markets to North America, prioritizing Canada, the U.S., and Mexico. CEO Scott Thomson emphasized capital redeployment, including a nearly 15% stake in KeyCorp and consolidation of assets in Latin America. The bank beat analysts' expectations in its latest quarterly results and is preparing for a "higher for longer" interest rate environment, with a projected U.S. terminal rate of 3.5% by 2026. Scotia is also bracing for potential tariff impacts and higher loan loss provisions but remains optimistic about future growth.

• Mortgage: Mortgage interest rates dropped to a two-month low of 6.88%, but total mortgage applications fell 1.2% from the previous week, according to the Mortgage Bankers Association. Refinance applications declined 4% but remained 45% higher than a year ago, with FHA refinance applications rising 8%. Purchase mortgage applications stayed flat week-over-week but were up 3% from last year. Analysts attribute the rate drop to lower Treasury yields and expectations of slower global economic growth.

Will DOGE make America great again?

The stock market and stuff

• Stellantis Sees 70% Profit Plunge in 2024 As It Searches For A New CEO (theDeepDive)

• Rout wipes $800bn from crypto market as bitcoin slump deepens (FT)

• BP cuts renewable investment and boosts oil and gas in strategy shift (Reuters)

• Copper Surges in US as Trump Launches Probe Into Metal Imports (Bloomberg)

• Microsoft Data Center Pullback Sparks Wall Street Jitters Over AI Spending (theDeepDive)

In the juniors

• Golden Cariboo Hits 0.99 g/t Gold Over 237 Metres At Halo Zone (theDeepDive)

• West Point Gold Resumes Maiden Resource Drill Program at Gold Chain and Appoints Conrad Nest as New Independent Director (JMN)

• Rua Gold Drills 3.8 g/t Gold, 11.9% Antimony Over 2.0 Metres At Auld Creek (theDeepDive)

FULL DISCLOSURE: Cytophage Technologies is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Cytophage Technologies. The author has been compensated to cover Cytophage Technologies on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.