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Welcome to today’s edition of Cash Nut, your daily dose of finance, politics, and culture served with a twist of wit and insight. Whether you're chasing market trends or need a conversation starter over coffee, we’ve got you covered. Let’s dive in! ☕✨

🥓 Business Nuts

Smithfield Foods Wants to Bring Home the IPO Bacon

💡 Can this meaty debut satisfy investor appetite, or are we frying hope in a cooling pan?

Smithfield Foods, the iconic maker of Farmland bacon and Farmer John sausages, is preparing to hit the Nasdaq as the first IPO of 2025 under the ticker "SFD". After spending a decade under the Hong Kong-based WH Group, Smithfield aims to raise funds and regain its place in the U.S. financial market.

What Happened:
The Virginia-born meatpacking giant plans to sell 20% of its shares, with a potential valuation of $5.38 billion. In a sizzling comeback, Smithfield turned its finances around in 2024, reporting $581 million in net income on $10.19 billion in sales, compared to a $2 million loss in 2023.

Proceeds will fund automation, infrastructure upgrades, and capacity expansion, making this IPO not just a market splash but also an operational boost. Morgan Stanley, Goldman Sachs, and BofA Securities are leading the charge, ensuring this bacon doesn’t burn.

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🔨 Politics & Deals

Biden Blocks Nippon Steel Deal; Trump Prepares for Office

💥 A $14.9 billion steel deal sparks lawsuits, labor debates, and bipartisan resistance.

In a dramatic move, President Biden blocked Nippon Steel’s $14.9 billion bid to acquire US Steel, citing national security and supply chain concerns. This decision, announced on January 3, 2025, has set the stage for legal fireworks and political theatrics as President-elect Trump doubles down on his opposition to the deal.

What Happened:
Labor unions and Rust Belt workers rallied against the merger, fearing foreign control over a vital industry. Nippon Steel and US Steel have fired back with two lawsuits:

1. Constitutional Challenge: A case filed in the D.C. Circuit Court, alleging political interference.

2. Antitrust Complaint: Claims of a coordinated effort by Cleveland-Cliffs and United Steelworkers to sabotage the merger.

Nippon Steel pledged $2.7 billion in U.S. facility investments and a decade-long commitment to maintaining domestic capacity. But even with these promises, bipartisan opposition underscores the rising importance of economic nationalism in Washington.

🗞️ Other News

🚗 NYC’s Congestion Pricing System Gets Tested

New York City launched its congestion pricing system, charging drivers up to $9 during peak hours to enter Lower Manhattan. Early reviews show eased traffic in downtown areas, but critics say the system hits low-income commuters hardest.

🎥 Disney + Hulu + Fubo = Streaming Giant

Disney has merged Hulu + Live TV with Fubo, creating North America’s second-largest internet pay-TV provider. This bold move resolves legal disputes with Venu Sports and consolidates Disney’s position in the streaming market.

📈 Treasury Yields Surge to Record Highs

U.S. Treasury yields climbed to their highest levels since late 2023, as markets prepare for a wave of government debt auctions. Analysts warn of potential volatility as the new administration grapples with fiscal challenges.

🍔 McDonald’s Adjusts DEI Policies

McDonald’s announced plans to scale back its diversity, equity, and inclusion (DEI) initiatives, aligning with the Supreme Court’s 2023 affirmative action ruling. Critics argue this reflects broader corporate rollbacks post-ruling.

🏦 Michael Barr Resigns from Federal Reserve

Federal Reserve Vice Chair Michael Barr stepped down ahead of President-elect Trump’s inauguration. Barr’s exit is seen as an effort to avoid clashes with the new administration over potential changes in banking regulations.

⚡ Pentagon Escalates Tensions with China

The Pentagon labeled Tencent and other Chinese firms as collaborators with China's military. This designation adds to escalating U.S.-China tensions as trade and technology policies continue to dominate geopolitical discussions.

🎬 Amazon Prime Video to Stream Melania Trump Documentary

Amazon Prime Video has licensed a documentary about Melania Trump, coinciding with Jeff Bezos’ $1 million pledge to Trump’s inaugural fund. The move has sparked debates about the platform's political affiliations.

📉 Alcohol Stocks Slide on Cancer Concerns

Major beverage stocks plummeted following alarming research linking alcohol to cancer risks. The report could lead to stricter regulations, further pressuring the already struggling industry.

Together with Masterworks

Billionaires wanted it, but 66,930 everyday investors got it first

When incredibly valuable assets come up for sale, it's typically the wealthiest people that end up taking home an amazing investment. But not always…

One platform is taking on the billionaires at their own game, buying up and securitizing some of the most prized blue-chip artworks for its investors.

It's called Masterworks. Their nearly $1 billion collection includes works by greats like Banksy, Picasso, and Basquiat. When Masterworks sells a painting – like the 23 it's already sold – investors reap their portion of the net proceeds.

In just the last few years, Masterworks investors have realized net annualized returns like +17.6%, +17.8%, and +21.5% (from 3 illustrative sales held longer than one year).

📊 Market Morsels

• MicroStrategy: Bought 1,070 BTC for $101 million and announced plans to raise $2 billion via preferred stock.

• Lucid Motors ($LCID): Delivered 10.2K vehicles in 2024, meeting targets despite stock declining 28% annually amid slower EV adoption.

• Saudi Aramco: Raised prices for Asian buyers for the first time in three months, signaling a cautiously optimistic outlook in energy markets.

💡 What Else We’re Reading

• 🗽 Trump Wants Canada to Be the 51st State: In an ambitious move, Trump has floated the idea of U.S.-Canada unification, drawing both skepticism and intrigue.

• 📚 The Textbook That Helped Benjamin Franklin Pass Math: A fascinating look at history’s hidden gems.

• 🍁 Justin Trudeau Resigns as Prime Minister: The Canadian leader steps down, leaving behind a legacy of political challenges and progressive policies.

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