Morning Bid: Trump’s visible hand

Market Overview - Global investors are navigating a turbulent market influenced by geopolitical events, particularly statements from the U.S. president, leading to a decline in Wall Street after reaching record highs [1] - Asian stocks are also trading down, while oil prices have stabilized following a sharp drop due to U.S. plans to purchase sanctioned Venezuelan crude [1] Defense Sector - U.S. President Donald Trump has proposed a more than 50% increase in the defense budget by 2027, raising it to $1.5 trillion from the $901 billion approved for 2026, which would require congressional approval [2][7] - Trump has threatened to prevent defense contractors from paying dividends or buying back shares unless they increase weapons production, indicating a shift in defense spending priorities [2] Technology Sector - Samsung Electronics anticipates a three-fold increase in fourth-quarter operating profit compared to the previous year, driven by tight supply and heightened demand for artificial intelligence-driven memory chips [3] - Nvidia is now requiring full upfront payment from Chinese customers for its H200 artificial intelligence chips, reflecting concerns over regulatory approvals from Beijing [4] Media and Entertainment - Warner Bros Discovery's board has rejected Paramount Skydance's $108.4 billion hostile bid, labeling it a risky leveraged buyout that investors should avoid [3] Energy Sector - The U.S. administration's new energy strategy, termed the 'Donroe Doctrine', aims to assert dominance in the Western Hemisphere, potentially impacting U.S. oil companies as unintended casualties [5]