♪ ANNOUNCER: NEWSMAKERS AND MARKET MOVERS. THIS IS "THE PULSE." JOUMANNA: GOOD MORNING AND WELCOME TO "THE PULSE," I’M JOUMANN OF A BERSETCHE. LET’S BRING IN ALEC BIEBER.WE’VE SEEN A JUMP IN THE P. M. I.HIGHER THAN FORECAST. TALK TO US THROUGH THESE NUMBERS. >> THE NUMBERS ARE AFFIRMING WE’RE CONTINUING TO GROW IN THE EURO ZONE BUT THE TAKEAWAY IN TODAY’S NUMBERS IS WHEN YOU LOOK AT THE MANUFACTURING SECTOR, ESPECIALLY IN GERMANY AND NOW THE P.M. I. INDICATOR JUMPED TO ABOVE 50, THE NUMBER THAT INDICATES GR ...

Market Overview - The stock market experienced significant volatility, with the S&P 500 falling 2.6% before recovering some losses on Friday [1] - Bitcoin and gold also saw dramatic fluctuations, with Bitcoin dropping around 20% and gold falling approximately 7% before regaining some value [1] Gold Market Insights - Gold prices have risen to just under $5,000, marking a 14% increase year-to-date, with expectations for further price increases [4] - JPMorgan analysts predict gold prices could reach $6,300 per ounce by year-end, representing a potential 25% increase driven by demand from central banks and investors [5] - Factors contributing to gold's rise include geopolitical instability, the debasement of fiat currencies, and concerns over debt levels [5] Volatility and Investment Sentiment - The recent price movements in gold reflect a level of volatility that diminishes its traditional role as a stable store of value [6] - The price action in gold has mirrored that of stocks, leading some investors to adopt a wait-and-see approach while others took the opportunity to buy during dips [7] - The contrasting performance of stocks and gold highlights the challenges faced by safe-haven assets in current economic and political conditions [10]

Core Insights - The market has experienced a significant downturn, with over $10 trillion in market value lost from gold and silver in just three days, indicating a major episode of wealth destruction in modern metals [2][3] - Spot gold prices fell below $4,500 per ounce, a decline of nearly $1,000 in three trading days, while silver dropped below $72, marking a nearly 40% loss from recent highs [3] - The decline in gold and silver market capitalization was approximately $7.4 trillion for gold and $2.7 trillion for silver, surpassing the total market value of the cryptocurrency market [3] Market Dynamics - The sudden market movements occurred without a clear catalyst, raising concerns about liquidity, monetary policy, and the role of traditional safe-haven assets [4] - The Federal Reserve's anticipated balance-sheet contraction, as indicated by incoming Fed Chair Kevin Warsh, is contributing to market repricing, suggesting reduced liquidity for various asset classes [5] Impact on Crypto Market - The cryptocurrency market has also been affected, losing over $430 billion in market value within four days, reflecting fears of a liquidity-driven unwind across asset classes [6] - Both Bitcoin and Ethereum have experienced significant declines, with overall crypto sentiment deteriorating rapidly [6]

Group 1 - The U.S. federal debt has surpassed $38.5 trillion, raising concerns about the sustainability of government spending and interest payments [2][4] - Elon Musk emphasizes that the only way to address the debt crisis is through advancements in AI and robotics to stimulate economic growth [1][3] - The One Big Beautiful Bill Act (OBBBA) is projected to add $4.1 trillion to the national debt by fiscal 2034, increasing the deficit by 1.1% of GDP [5][6] Group 2 - Experts, including Ray Dalio, warn of a "debt death spiral" where the government must borrow to pay interest, creating a self-perpetuating cycle [8] - The Federal Reserve Bank of Minneapolis indicates that inflation has significantly eroded the dollar's purchasing power, with $100 in 2025 equating to $12.05 in 1970 [11] - Central banks are acquiring gold as a diversifier, with Dalio suggesting individuals allocate 10% to 15% of their portfolios to gold [13][14] Group 3 - Musk advises individuals to invest in physical assets like homes or stocks of companies with strong products rather than holding cash during high inflation [18][26] - The S&P CoreLogic Case-Shiller U.S. National Home Price Index has increased by 47% over the past five years, highlighting real estate as a hedge against inflation [19] - Alternative assets, such as art, are gaining attention for their potential to appreciate over time and provide portfolio diversification [35][36]

Core Viewpoint - The increasing national debt in the U.S. is a significant concern, with experts warning of potential economic strain and a "debt death spiral" if growth does not improve [1][4]. Group 1: National Debt Concerns - U.S. national debt has surged from $7 trillion to over $38 trillion in the last 15 years, with projections indicating it could reach the low 40s in the coming decade if current trends continue [3][5]. - The reliance on foreign buyers for debt financing is diminishing, which could lead to Americans bearing a larger burden of the debt [2][6]. - Experts like Jamie Dimon and Ray Dalio emphasize that the current debt levels are unsustainable and could lead to currency erosion and inflation [4][5]. Group 2: Economic Growth and Adjustments - Solomon warns that without stronger economic growth, the U.S. may face a painful adjustment period [3]. - The need for aggressive fiscal stimulus has become entrenched in the U.S. economy, making it challenging to cut spending [2]. - The Committee for a Responsible Federal Budget estimates that new legislation could add over $5.5 trillion to the national debt by 2034 [7]. Group 3: Investment Strategies Amid Economic Uncertainty - Experts recommend diversifying investments, particularly into gold, which is viewed as a safe haven during economic turmoil [8][9]. - Real estate is also highlighted as a protective asset class during inflationary periods, with property values and rental income typically rising [12][13]. - Alternative investments, such as art, are gaining attention for their potential to provide unique portfolio diversification and returns [22][24].

Market Overview - Asian shares have continued to decline, with Tokyo's Nikkei 225 down 0.7% to 52,603.44, while South Korea's Kospi fell 0.5% to 4,862.17, and Hong Kong's Hang Seng slipped 0.2% to 26,435.20 [4][6] - The S&P 500 futures rose 0.3% and Dow Jones Industrial Average futures increased by 0.2% after significant losses on Wall Street [2] Gold Market - Gold prices reached a record high, surpassing $4,800 for the first time, with a 1.7% increase as investors sought safe-haven assets amid uncertainty [2] U.S. Economic Policy - President Trump announced plans to impose 10% tariffs on several European countries starting in February, in addition to a 15% tariff from an unratified trade agreement with the EU [7] - The S&P 500 experienced a 2.1% drop to 6,796.86, marking its steepest decline since October, while the Dow Jones fell 1.8% to 48,488.59 [8] Company Performance - Nvidia's stock fell by 4.4%, and Apple dropped 3.5%, with other sectors such as retail, banking, and industrial companies also facing losses [9] Interest Rates and Oil Prices - The Federal Reserve is expected to maintain its benchmark interest rate in the upcoming policy meeting, while Japan's central bank will conclude its monetary policy meeting soon [10] - U.S. benchmark crude oil prices decreased by 56 cents to $59.80 per barrel, and Brent crude fell by 70 cents to $64.22 per barrel [10]

Core Insights - U.S. oil companies, particularly Chevron, ExxonMobil, and ConocoPhillips, are showing increased interest in Venezuela's oil sector due to the country's vast heavy crude reserves and potential for investment recovery [1][2][3][4]. Group 1: U.S. Companies and Venezuela - Major U.S. oil firms like Chevron, ExxonMobil, and ConocoPhillips are exploring opportunities in Venezuela, with Chevron already having a presence in the country [1]. - The potential for U.S. companies to recover previously expropriated assets in Venezuela is a significant factor driving interest [1][2]. - Trump indicated that U.S. oil companies are eager to invest in Venezuela's oil infrastructure, which is in need of repair [4][5]. Group 2: Market Reactions - On January 5, shares of Chevron surged by 5.3%, reflecting the market's positive response to the potential for increased U.S. involvement in Venezuela [3]. - Other energy stocks also saw gains, with ConocoPhillips rising 2.6% and ExxonMobil climbing 2.3%, while Valero Energy experienced a notable 9.3% increase [2]. Group 3: Economic Potential - Venezuela is estimated to hold the world's largest proven oil reserves, totaling approximately 303 billion barrels, valued at over $17 trillion at current crude prices [4]. - The scale of investment opportunities in Venezuela's oil sector is attracting attention across the energy industry, with Trump stating that U.S. companies are keen to invest [3][4].

Group 1 - Tether has launched "Scudo," a new unit of account for Tether Gold, facilitating fractional transactions and making gold payments easier [1] - One Scudo is equivalent to one thousandth of a troy ounce of gold or the equivalent amount of XAUT, simplifying asset pricing [1] - Users can transact in whole or partial Scudo units, enhancing the practicality of using gold as a medium of exchange for daily transactions [1] Group 2 - Gold reached an all-time high of $4,058.98 per ounce in October 2025, with Bitcoin also hitting a new high of $125,556 [2] - As of January 6, 2026, gold has reclaimed a price of $4,491 per ounce, maintaining its momentum from previous highs [3] - The rising gold prices and instability in the cryptocurrency market have positioned stablecoins and gold as attractive value stores for investors [4]

Group 1: Market Performance of Precious Metals - In 2025, gold, silver, and copper all experienced significant price increases simultaneously, marking the first occurrence in 45 years [3] - Gold prices rose by 69% to $4,331.90 per ounce, while silver surged by 157% to $72.25 per ounce, reaching a record high of $83.62 on December 28 [4] - Copper prices increased by 42% to $5.52 per pound, with a peak of $5.86 earlier in the trading session [6] Group 2: Mining Stocks and ETFs - Precious metals mining stocks, particularly gold miner ETFs GDX and GDXJ, saw extraordinary gains of 163.9% and 177.3% year-to-date as of Christmas Eve [8] - The performance of these mining stocks significantly outpaced the S&P 500's 17.9% increase, reflecting improved market psychology [8] Group 3: Factors Driving Gold Prices - Gold's price surge was attributed to safe haven demand due to geopolitical tensions, a weaker US dollar, central bank buying, and robust gold-backed ETF inflows [12] - Structural supply constraints have hindered the ability to meet demand for gold, silver, and copper without recycling [13] Group 4: BRICS and Gold's Role - The BRICS countries are moving away from the US dollar for international transactions, with gold becoming integral to their new settlement mechanism [14] - A pilot program for a gold-backed settlement "Unit" was launched within the BRICS+ bloc to facilitate trade without relying on the dollar [13][14] Group 5: Silver Market Dynamics - The silver market has faced supply deficits for five consecutive years, with mine production falling to 813 million ounces [22] - Silver futures trading volume has approached that of gold, indicating a shift in market dynamics and increasing importance of silver as an investment asset [23][24] Group 6: Copper Market Insights - Copper is experiencing its largest annual price increase since the 2008 financial crisis, driven by fears of global shortages and supply chain uncertainties [33] - Demand for copper is expected to surge due to electrification and decarbonization efforts, particularly in data centers, which could increase copper demand by 30% next year [41][44] Group 7: M&A Activity in Mining Sector - The mining sector has seen significant M&A activity, with mining and metals accounting for approximately 37% of public deal activity in Canada as of September 30, 2025 [48] - High prices for gold, copper, and silver have driven a "buy vs. build" mentality among major producers, leading to increased M&A transactions [49] Group 8: Future Outlook for Mining - The demand for critical minerals is surging, with projections indicating that copper demand could double by 2035, leading to significant supply shortfalls [45] - The current wave of M&A in the mining sector is expected to continue, as companies seek to secure future resources amid rising prices and depleting reserves [55]

Market Overview - U.S. stocks opened higher, driven by technology and energy sectors, with the S&P 500 rising 0.6%, Nasdaq composite increasing by 0.7%, and Dow gaining 330 points or 0.7% [1] - Asian shares experienced a rally, particularly in tech-related stocks, following modest gains on Wall Street [2] - European markets also showed positive movement, with Germany's DAX up 0.8%, CAC 40 in Paris up 0.3%, and Britain's FTSE 100 edging up 0.2% [3] Oil and Energy Sector - U.S. crude oil prices initially rose by 1% after the capture of Venezuelan President Nicolás Maduro but later traded lower at $56.96 per barrel [1][3] - Analysts suggest that Venezuela's oil production, currently at about 1.1 million barrels per day, could potentially double or triple with significant investments [4] - Chevron and ConocoPhillips shares surged following President Trump's proposal for U.S. oil companies to assist in rebuilding Venezuela's oil industry [1] Precious Metals - Gold prices increased by 2.4% and silver surged by 7.6%, reflecting a safe-haven demand amid geopolitical tensions [1][5] - The price of gold rose by 2.7% and silver jumped by 6.6% as traders sought safety in precious metals following the U.S. military operation [5] Technology Sector - Major tech companies like Nvidia and Intel saw their shares rise as the CES trade show commenced in Las Vegas [1] - The Nikkei 225 index in Tokyo surged by 3% to its highest close since October 31, indicating strong investor confidence in the tech sector [6] Economic Indicators - Upcoming U.S. economic updates will include reports on the services sector and consumer sentiment, which are crucial for understanding the economic outlook for 2026 [9][10] - The S&P 500 and Dow experienced slight gains at the start of the new year, while the Nasdaq composite faced pressure from declines in major companies like Microsoft and Tesla [11]