The Trade War Explodes, Google Unleashes New AI Chip, and Circle Business Model

Money Masters' Market Movers 15

April 09, 2025

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Dear Money Master,

The trade war just went nuclear. The U.S. has imposed 104% tariffs on Chinese imports, and China hit back with 84% retaliatory tariffs, sending shockwaves through global markets. 📉 Bond yields are spiking, stocks are sliding, and safe havens suddenly aren’t so safe.

In other news, mortgage demand jumped 20% as rates briefly fell, Google launched its most powerful AI chip, the EU rolled out a bold AI strategy, and Delta and Walgreens both beat earnings expectations, while RPM missed. Meanwhile, Google’s DeepMind spinoff Isomorphic secured $600M to fuel AI drug discovery.

Our Deep Dive this week zooms in on Circle, the fintech behind USDC. With $1.6B in revenue from stablecoin reserves, it’s aiming for an IPO — but may pause amid turbulent markets. We break down how Circle really makes money, and why going public now could be risky. 🪙📉

📰 Your Daily Financial Digest - April 9th, 2025

🌍 Economics & Finance:

  1. China Fires Back with 84% Tariffs on U.S. Goods 🔥
    Beijing's new levies take effect April 10, nearly tripling current rates in response to Trump’s 104% duties. The tit-for-tat move risks freezing U.S.-China trade flows. Read More

  2. Treasury Yields Surge as Trade Fears Shake Bond Markets 📈
    The 10-year yield soared to 4.45%, defying recession norms as bond demand slumped. Investors fear foreign holders may be dumping U.S. Treasuries. Read More

  3. Mortgage Demand Soars 20% as Rates Dip to October Lows 🏠
    Refinancing applications spiked 35% while purchase loans rose 9%, as 30-year mortgage rates dropped to 6.61%, prompting a surge in high-value loan activity. Read More

💻 Technology:

  1. Google DeepMind’s Spinoff Aims to Cure All Diseases with AI 🧬
    Isomorphic Labs raised $600M to supercharge AI drug discovery with AlphaFold3, and sealed pharma deals worth nearly $3B with Eli Lilly and Novartis. Read More

  2. EU Launches ‘AI Continent’ Plan to Rival U.S. and China 🤖
    Europe unveiled a sweeping initiative with gigafactories, AI labs, and support centers to boost innovation while softening regulatory burdens for startups. Read More

  3. Google Unveils ‘Ironwood,’ Its Most Powerful AI Inference Chip Yet 💡
    The 7th-gen TPU boasts 4,614 TFLOPs, 192GB RAM per chip, and two cluster options, optimized to run AI models at massive scale for Google Cloud customers. Read More

💹Earnings:

  1. Walgreens Beats Earnings as It Prepares to Go Private 💊
    Q2 revenue of $38.6B and 63 cents EPS topped estimates, even as a $2.85B loss and legal costs weighed on cash flow ahead of its $10B buyout. Read More

  2. Delta Posts Surprise Profit but Cuts Capacity Outlook ✈️
    Delta reported $0.46 EPS and $14B revenue, beating forecasts, but flagged economic concerns and tariff risks as reasons to scale back 2025 flight expansion. Read More

  3. RPM International Slides on Weak Q3 and Weather Woes 🎨
    EPS missed at $0.35 on $1.48B in revenue as wildfires and extreme cold hit project demand; shares fell 4% and outlook remains below expectations. Read More

🔍 Deep Dive: How Circle Makes Billions from USDC—and Why Market Turmoil Could Stall Its IPO 🪙📉

Circle is one of the few companies still aiming for an IPO in 2025 — and it’s doing so on the back of USDC, a stablecoin pegged 1:1 to the U.S. dollar 💵. But how does that turn into billions in revenue?

Here’s how: every time someone buys 1 USDC, they give Circle $1. That dollar doesn’t sit idle — Circle invests most of it in short-term U.S. Treasuries and interest-bearing cash equivalents 📈. The yield on those reserves? That’s Circle’s profit. In 2024, this “float model” generated over $1.68 billion, with 99% of it coming from reserve interest alone. Meanwhile, users enjoy crypto-speed payments without volatility — a big win for fintech, e-commerce, and cross-border transfers 🌍.

But despite those fundamentals, Circle may delay its IPO. Why? Because timing matters as much as the business ⏳.

Going public through an IPO (Initial Public Offering) lets companies raise capital by selling shares on the stock market 📊. But when markets are shaky — as they are now, with rising yields, geopolitical tension, and tariff-driven selloffs — investors are cautious. Demand drops. Valuations fall 💔.

For Circle, that means one of two tradeoffs: raise less money, or issue more shares, which leads to greater dilution for existing shareholders. Either outcome weakens its position post-IPO.

Circle already took a $44M hit from its failed 2022 SPAC deal. Now, while it files again under ticker CRCL, market watchers say it may hit pause. Because in public markets, a poorly timed debut can leave lasting scars — even for a $1.6B revenue giant 🚫💸.

Big Tech Has Spent Billions Acquiring AI Smart Home Startups

The pattern is clear: when innovative companies successfully integrate AI into everyday products, tech giants pay billions to acquire them.

Google paid $3.2B for Nest.
Amazon spent $1.2B on Ring.
Generac spent $770M on EcoBee.

Now, a new AI-powered smart home company is following their exact path to acquisition—but is still available to everyday investors at just $1.90 per share.

With proprietary technology that connects window coverings to all major AI ecosystems, this startup has achieved what big tech wants most: seamless AI integration into daily home life.

Over 10 patents, 200% year-over-year growth, and a forecast to 5x revenue this year — this company is moving fast to seize the smart home opportunity.

The acquisition pattern is predictable. The opportunity to get in before it happens is not.

Past performance is not indicative of future results. Email may contain forward-looking statements. See US Offering for details. Informational purposes only.

To your financial empowerment, The Money Masters Team

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DISCLAIMER: This information is for educational purposes only and does not constitute financial advice. The publisher does not accept any responsibility for any losses incurred as a result of actions taken based on the information provided. Always conduct your own research or consult with a financial advisor before making any investment decisions.