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Trump Shifts Ukraine Strategy Amid NATO Pullback

The US has signaled its intention to step back from its long-held role as Europe’s principal security guarantor after Defense Secretary Pete Hegseth explained that Washington no longer considers it sustainable to shoulder the bulk of Europe’s defense responsibilities, particularly with regard to the ongoing war in Ukraine.

“We want, like you, a sovereign and prosperous Ukraine. But we must start by recognizing that returning to Ukraine’s pre-2014 borders is an unrealistic objective. Chasing this illusionary goal will only prolong the war and cause more suffering,” Hegseth said.

Instead, the priority is to pursue a “durable peace” backed by robust but predominantly European security guarantees.

You can read more on the matter here.

What’s going on?

• Canada Vows to Fight US Metal Tariffs (theDeepDive)

• Trump complains about Canada — but new data shows spike in U.S. drugs and guns coming north (CBC)

• US House Bill Introduced: Color Greenland “Red, White, and Blueland” (theDeepDive)

• Ottawa eyeing new ways to ban export of horses for slaughter in Japan (Globe)

• Study Examines Vision Loss Reports in Patients Taking GLP-1 Drugs (theDeepDive)

• U.S. investors, Big Pharma race to find new medicines in China (CNBC)

• Acting DEA Chief Says Cannabis Review Is Not Dead—Yet—as Successor Looms (theDeepDive)

• Europe reels after Donald Trump announces US-Russia talks on Ukraine (FT)

• Trump Tariffs After Tariffs: 25% On Steel And Aluminum On Top Of Initial 25% Generic Dues (theDeepDive)

• Canadian Tire Says Unemployment ‘Biggest Concern’ About Tariffs (Bloomberg)

What’s the latest?

• Elon: Elon Musk offered $97.4 billion to acquire OpenAI but will withdraw the bid if the company halts its plan to convert into a for-profit entity. His legal team stated that if OpenAI continues its transition, it must be sold at fair market value. OpenAI CEO Sam Altman rejected the offer, reaffirming that the company is not for sale. Musk, who co-founded OpenAI in 2015, has clashed with Altman over its direction since leaving the board in 2018.

• Auto: Honda, Nissan, and Mitsubishi have ended talks on business integration, abandoning plans for a joint holding company. Nissan CEO Makoto Uchida rejected making Nissan a subsidiary of Honda, stating it would not realize Nissan’s full potential. Nissan reported a sharp profit decline, with April-December earnings plunging to $33 million from $2.1 billion last year, and projected $519 million in losses for the fiscal year. Despite ending integration talks, the companies will continue collaborating on electric vehicles and smart cars.

• Brookfield: Brookfield Corp. reported Q4 net income of $432 million, down from $699 million a year earlier, with earnings per share dropping from 42 cents to 25 cents. Revenue fell to $19.43 billion, down from $24.52 billion. However, distributable earnings rose to $1.61 billion ($1.01 per share) from $1.31 billion (83 cents per share). The company also raised its quarterly dividend to 9 cents per share, up from 8 cents.

• Telus: Telus Corp. reported Q4 net income of $358 million (24 cents per share), up from $288 million (20 cents per share) a year earlier. Revenue rose to $5.38 billion, compared to $5.20 billion last year. Adjusted earnings reached 25 cents per share, exceeding analyst expectations of 22 cents.

• Reddit: Reddit shares dropped 7% after missing Wall Street's Q4 user estimate of 103.1 million, reporting 101.7 million daily active uniques instead. Despite this, revenue grew 71% to $428 million, beating analyst expectations of $405 million, while net income quadrupled to $71 million (36 cents per share). CEO Steve Huffman attributed user growth "volatility" to a Google search algorithm change, which has since stabilized. Analysts remain mixed, with some recommending buying the dip while others cite risks like high valuation and dependence on Google traffic.

A gold run on the Bank of England

The stock market and stuff

• First Quantum Says Hearing On Cobre Panama Postponed To February 2026 (theDeepDive)

• Inside Amazon’s Messy Push to Bring Everyone Back to the Office (WSJ)

• Reddit Sees Q4 2024 Revenue Jump 71%, But Shares Crash On Tepid Guidance (theDeepDive)

• Elliott builds £3.8bn stake in BP and seeks big asset sales (FT)

• Kinross Gold Reports $1.42B Sales, $275.6M Net Earnings In Q4 2024 (theDeepDive)

In the juniors

• i-80 Gold Revised PEA Outlines $271 Million NPV For Cove Project (theDeepDive)

• Gold Spinout & Premium Buyback: $180M Deal Funds Future? | Michelle DeCecco – Lithium Chile (theDeepDive)

• New Gold Guides To 345,000 Ounce Production Midpoint In 2025 (theDeepDive)

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