Donald Trump has introduced significant tariffs on America’s top three trading partners: 25% on imports from Canada and Mexico, and 10% on Chinese goods. This decision, made just days into his new administration, is expected to disrupt global trade, raise prices, and create uncertainty for businesses. Trump’s actions, which are more extreme than previous tariffs, aim to generate revenue and encourage domestic manufacturing, but will likely burden US consumers and harm integrated supply chains, especially in industries like auto manufacturing. Retaliatory tariffs from Canada, Mexico, and China are already in motion, and Trump’s broader plans could lead to further trade conflicts, including with Europe.

The best investment advice could be "A diversified portfolio can have the same returns as a concentrated one, with less risk." Diversification, a concept popularised by Harry Markowitz in the 1950s, has long been key to managing investment risk. While it’s easier than ever to diversify through global assets, index funds, and a mix of asset classes, true diversification is becoming harder to achieve. As correlations between different assets rise, investments that once moved independently now tend to fluctuate together, reducing the benefits of diversification. This has made diversification across both geographies and asset classes less effective, leading investors to seek more niche options.

In 1865, William Stanley Jevons warned that as coal became harder to extract, efficiency gains would only lead to more consumption, accelerating its depletion. This idea, known as Jevons paradox, suggests that improvements in efficiency can increase demand for resources. Recently, tech leaders like Satya Nadella have applied this logic to AI, believing that more efficient AI will drive up demand for data centres and related infrastructure. However, rebound effects are not always large enough to offset efficiency savings. For AI, the impact will depend on demand, and with only 5% of American firms using AI, the rebound effect may not be as significant as in the past with coal or lighting. While Nadella’s optimism is understandable, the Jevons paradox may not fully explain AI’s future growth.

Elon Musk’s social-media company, X (formerly Twitter), has expanded its lawsuit, now including major brands like Nestlé, Abbott Laboratories, Colgate-Palmolive, Lego, Pinterest, Tyson Foods, and Shell. The lawsuit claims these companies, along with the World Federation of Advertisers (WFA), violated antitrust laws by conspiring to withhold billions of dollars in advertising from the platform.
X initially filed the lawsuit in August 2024, targeting other brands like Mars, CVS Health, and Twitch. The lawsuit stems from concerns raised by the WFA in 2022 regarding Twitter’s compliance with brand safety standards after Musk’s purchase of the platform and his relaxation of content moderation. Advertisers pulled back on spending due to worries about the site’s content and internal instability.
In response, X has shifted focus to alternative revenue streams like subscriptions and digital payments, but ad revenue remains crucial. Musk’s aggressive stance on the matter includes public remarks telling brands that pulled ads to “go f— yourself”. Despite the legal dispute, some brands are reconsidering their stance on ad spending as the political and social climate evolves.

A new stock exchange, the Texas Stock Exchange (TXSE), has filed for regulatory approval to begin listing companies in early 2026. Backed by investors like BlackRock, Citadel Securities, and Charles Schwab, TXSE has raised $160 million. While the exchange describes itself as apolitical, its pro-business stance aligns with the Trump administration's backlash against regulations and cultural pressures on businesses. TXSE aims to offer a lower-cost, CEO-friendly alternative to existing exchanges like the NYSE and Nasdaq, appealing to companies frustrated with regulatory uncertainty. The exchange plans to leverage Texas’ pro-business reputation, with its headquarters in Dallas. However, attracting significant trading volume will be challenging.

President Trump dismissed Rohit Chopra as director of the Consumer Financial Protection Bureau (CFPB) nearly two weeks after his inauguration, following pressure from bankers. Chopra confirmed his removal in a letter posted on X and wished the agency success in advancing economic liberty. Until a replacement is named, his deputy, Zixta Martinez, will serve as acting director. Chopra, known for his aggressive regulatory stance, introduced rules limiting overdraft fees and banning medical debt from credit reports, and took enforcement actions against major banks. His dismissal was welcomed by Republicans, but Democrats, like Senator Elizabeth Warren, called for a replacement who would continue his work.

The Bank of England is expected to cut UK interest rates from 4.75% to 4.5% on Thursday, with further cuts anticipated in 2025. This comes amid global scrutiny of central banks, particularly US President Donald Trump’s criticism of the Federal Reserve. While Chancellor Rachel Reeves faces blame for the UK’s economic slowdown, attention may shift to the Bank if rates remain high. Inflation is still above the Bank's target, and while some economists forecast easing pressures, many agree that current rates are too high and damaging to the economy.

The UK collectible toy market is now worth £510m, with manga, anime, and video game-based figures driving growth. While collectible toys have long been popular, a new wave has emerged, largely influenced by China and Japan, and catering to adult fans. Streaming platforms like Netflix and Crunchyroll have helped anime reach mainstream UK audiences, boosting demand for related merchandise. Shops, including Japanese brands Bandai Namco and Chinese chains like MiniSo and Pop Mart, are thriving. Events like Comic Con have also popularised these toys, leading to a rise in "kidult" toys, with sales reaching £1bn last year. Collecting is increasingly seen as a cultural activity, with dedicated spaces and communities emerging for fans.

"DYOR" – Do Your Own Research – is a common Gen Z phrase used when their beliefs are challenged. A recent report suggested many Gen Zers in the UK support dictatorship, a finding that, while concerning, seems predictable given the rise of authoritarian ideas among young people, especially during the pandemic. Influenced by figures like Jordan Peterson and Andrew Tate, many young people, particularly boys, are turning to TikTok, where the algorithm promotes traditional gender roles and anti-woke content.
A survey showed 52% of Gen Z believe the UK would be better with a strong leader who bypasses parliament, while 33% favour army rule. With TikTok becoming their main news source, young people are exposed to a stream of simplistic, populist ideas. This generation faces insecurity from austerity, Covid, and the cost of living crisis, leading many to seek radical change. Globally, young people are increasingly supporting right-wing populism.
To counter this, the left must make a passionate case for democracy, focusing on solidarity and economic justice. The fight for democracy is growing, and it’s time for the left to engage emotionally and authentically to appeal to young people. DYOR.

The rise of overnight trading is being driven by retail investors using apps like Robinhood, who developed a taste for after-hours trading during the pandemic. This trend has caught the attention of traditional exchanges and professionals, including the NYSE, which is considering extending its trading hours, as well as 24X, a new exchange aiming for near 24-hour trading. While some firms and investors welcome the shift, concerns remain about system complexities, risks of volatility, and how regulators will handle overnight prices. Despite these challenges, big names like Charles Schwab are expanding overnight trading offerings, reflecting growing demand, particularly from Asian investors. The future of 24-hour trading, though, remains uncertain as it could significantly alter market dynamics and require substantial operational changes.