Oil Earnings, Tariffs & Slowing GDP – What It Means for You 🚨📊

Money Masters' Market Kickoff Week 6

February 03, 2025

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Dear Money Master,

Markets are buzzing with mixed oil earnings, as Exxon outperforms while Chevron struggles. Google trims costs, GDP growth slows, and Bitcoin reacts to new U.S. tariffs. Speaking of tariffs, we're diving in again to break down the latest trade measures and their impact. 🚨📊

📰 Your Daily Financial Digest - February 3rd, 2025

🌍 Economics & Finance:

  1. Commerzbank Reports Record Profits and Launches Buyback 💰
    The German lender beat forecasts with a 20% net profit increase in 2024, reaching €2.68 billion. It plans a €400 million share buyback and a dividend hike to €0.65 per share. Read More

  2. Bitcoin Drops Below $97,000 After Trump’s Tariffs ⚠️
    Cryptos tumbled after Trump imposed tariffs on Canada, Mexico, and China. Bitcoin slid 7% to $93,768, while Ether plunged 20%, marking its lowest level since November. Read More

  3. U.S. GDP Growth Slows to 2.3% in Q4, Below Expectations 📉
    Economic growth cooled in the final quarter of 2024, with GDP rising 2.3%—slightly below the 2.5% forecast. Consumer spending remained strong at 4.2%, but weak trade and investment dragged down overall growth. Read More

  4. Euro Zone Inflation Rises to 2.5% in January, Above Expectations 📊
    Euro zone inflation accelerated as energy prices surged 1.8% year-over-year, pushing overall inflation to 2.5%. Core inflation remained stuck at 2.7%, raising questions about the ECB’s rate-cut path. Read More

💻 Technology:

  1. Nvidia Showcases AI Model for Audio Innovation 🎙️
    Nvidia has unveiled a groundbreaking AI model capable of modifying human voices and generating original sounds, expanding possibilities for gaming, entertainment, and accessibility tools. Read More

  2. Google Offers Voluntary Buyouts Ahead of Expected Layoffs 🤖
    Google’s Platforms & Devices unit, home to Android, Chrome, Pixel, and Fitbit teams, is offering voluntary buyouts to U.S. employees as part of cost-cutting efforts. The move comes amid rising AI investments and potential hardware cost hikes from new tariffs. Read More

💹Earnings:

  1. Exxon Mobil Beats Q4 Estimates Despite Oil Price Drop ⛽
    The oil giant posted a $7.39 billion profit, surpassing expectations. U.S. crude production hit 1.47 million barrels per day, but refining profits collapsed 90% year-over-year. Read More

  2. Chevron’s Refining Business Turns to Loss, Shares Drop 📉
    Weak margins drove Chevron’s refining unit to a $248 million loss—the first since 2020. CEO Mike Wirth warned the downturn is likely to continue into 2025. Read More

  3. Novartis Reports Strong Q4 on Drug Sales Growth 💊
    The pharma giant saw a 16% increase in net sales, reaching $13.2 billion, beating estimates. Blockbuster drugs Entresto and Cosentyx fueled growth, offsetting looming patent expirations. Read More

  4. Samsung’s Q4 Profit Drops, AI Demand Still Strong 🤖
    Operating profit fell nearly 30% quarter-over-quarter, despite 12% year-over-year revenue growth. Samsung plans to expand AI-driven premium smartphones to counter chip market weakness. Read More

🔍 Deep Dive: What Are the New Tariffs?💵

Even though we've discussed tariffs in recent weeks, today we break down the newly imposed tariffs and their impact on consumers, businesses, and the economy. 🚨

🔹 Canada 🇨🇦 - 25% tariff on all imports (except energy) + 10% tariff on energy products and oil exports

🔹 Mexico 🇲🇽 - 25% tariff on all imports, including energy exports

🔹 China 🇨🇳 - 10% tariff on all imports (on top of existing tariffs of up to 25%)

📌 Additional Details:

  • Effective February 4 at 12:01 AM EST – Goods already in transit before this time are exempt.

  • E-commerce imports under $800 (Section 321 customs de minimis) will now face tariffs. (Temu & Shien)

  • No set end date – The tariffs remain in effect indefinitely unless revoked.

  • Retaliation clause – If Canada, Mexico, or China impose counter-tariffs, the U.S. could increase these rates further.

How Will This Affect Consumers?

📈 Higher Prices on Everyday Goods

  • Electronics, toys, and clothing from China could see price hikes as companies pass costs to consumers.

  • Food prices may rise—47% of U.S. vegetable imports and 42% of prepared foods come from Canada and Mexico. Expect higher prices on avocados, bananas, and processed foods.

  • Gas prices may increase, as Canada supplies 40% of U.S. crude oil imports. Tariffs on energy could raise fuel costs for businesses and consumers.

🏭 Impact on U.S. Manufacturing

  • Some industries may benefit from reduced foreign competition, but many rely on imported materials (like steel and aluminum).

  • Higher material costs could lead to job losses in sectors that depend on low-cost imports.

🌍 Trade War Risks

  • If China retaliates, U.S. exports could suffer, hurting industries like agriculture and tech.

  • Global supply chain disruptions could impact everything from auto parts to home appliances.

Why Were These Tariffs Imposed?

The White House claims the tariffs will:

  • Reduce illegal immigration by pressuring Mexico to strengthen border control.

  • Combat the fentanyl crisis by restricting supply chains.

  • Lower the U.S. trade deficit and boost domestic manufacturing jobs.

The Bottom Line

These tariffs are far-reaching and indefinite, affecting consumers, businesses, and the broader economy. Whether they achieve their intended goals or trigger a prolonged trade war remains to be seen. For now, expect price hikes, market volatility, and potential retaliation from U.S. trading partners. 🚨

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Disclaimer: This information is for educational purposes only and should not be construed as financial advice. Always conduct your own research or consult with a financial advisor before making investment decisions.