Drew Angerer / Getty Images Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. JPMorgan Chase announced a sudden increase in investments in critical U.S. industries, such as energy and defense, noting the firm will increase its previous 10-year $1 trillion commitment by 50%, to $1.5 trillion. This initiative will begin with a $10 billion investment primarily into select American companies to help enhance growth, spur innovation and accelerate strategic man ...

Joining us now is Tony Sage. He is CEO and executive chair of Critical Metals. Uh Tony, welcome to Power Lunch.I'm glad you're here. Let's start with with Greenland. Um when do you expect that operations actually digging critical minerals out of the ground in Greenland.When will that start. >> We hope to start construction in the third quarter next year. Um, we've done a hell of a lot of work uh since we took over the project about 12 months ago.Uh, before that, uh, it was owned by a single individual. Uh, ...

Trade Policy and Economic Security - The discussion emphasizes the importance of tariffs as a matter of national security and a signature policy of the President, suggesting that the Supreme Court is unlikely to overrule it [2][4][32] - The trade deficit with China has reportedly decreased by 25%, indicating progress in rebalancing trade [3] - The use of emergency powers to address trade issues, particularly concerning rare earth minerals, is highlighted as crucial for maintaining manufacturing capabilities in the US and globally [4][32] Government Shutdown and Economic Impact - The ongoing government shutdown, now in its 35th day, is tied for the longest in history, with centrist Democrats signaling a potential willingness to negotiate [13][20] - The shutdown is affecting the economy, with concerns about airport delays and public sentiment potentially blaming Democrats if travel disruptions occur during peak times [20][16] New York's Economic Status - New York is losing its status as the financial capital of the US, with significant capital and jobs moving to states like Texas and Florida [23][24] - The potential election of a socialist mayor in New York could lead to reduced federal funding, as the administration may exercise discretion in allocating resources based on state governance [29][30][31] Healthcare Reform Discussions - The Secretary calls for bipartisan cooperation to reopen the government before discussing healthcare reform, indicating that negotiations cannot proceed while the government is shut down [19][17] - The rising costs associated with the Affordable Care Act are noted, with a need for a plan to address these issues once the government is operational again [18][19]

Core Viewpoint - A major U.S. steelmaker, Cleveland-Cliffs, is initiating plans to boost domestic production of rare earth minerals in response to China's trade restrictions, aligning with U.S. government efforts to enhance material independence [1][5][6]. Company Strategy - Cleveland-Cliffs is refocusing on its upstream mining assets to capitalize on the growing importance of rare earths, as stated by CEO Lourenco Goncalves [2]. - The company has identified two sites in Michigan and Minnesota with significant potential for rare earth mineralization based on geological surveys [4]. Market Context - The move by Cleveland-Cliffs is in line with the Trump administration's strategy to diversify sourcing of critical metals, which are essential for various technologies, including electronics and defense systems [5][6]. - The company aims to contribute to American manufacturing's independence from foreign sources for essential minerals [7]. Industry Implications - The U.S. government is actively seeking to address trade imbalances with China, particularly concerning rare earths, which have become a focal point in the ongoing trade dispute [9][10]. - Recent threats from the Trump administration to impose significant tariffs on China highlight the escalating tensions surrounding rare earth mineral exports [14].

Core Viewpoint - Cleveland-Cliffs reported third-quarter earnings with a net loss and a revenue drop, yet the stock surged by 24.5% due to investor interest in new developments related to critical minerals and a significant memorandum of understanding (MOU) with a global steel producer [1][3][4]. Financial Performance - The company reported revenue of $4.7 billion, which missed estimates by $200 million [3]. - A net loss was recorded, indicating challenges in the current financial performance [6]. Strategic Developments - CEO Lourenco Goncalves emphasized strong demand from the automotive sector, which is more profitable for the company [3]. - A new MOU with a major global steel producer was disclosed, described as "highly accretive" to shareholders, although details were limited [3][4]. Mining Operations Focus - The company is refocusing on its upstream mining assets due to the renewed importance of rare earths, with indications of potential rare earth minerals at two domestic mining sites [4]. - While the rare earth mineral discovery is speculative, it has generated significant market interest [5]. Investor Considerations - Investors are advised to focus on the steel business rather than the rare earths hype, as the mining operations are primarily to support steelmaking [5]. - Updates regarding the MOU are expected to have a more substantial impact on shareholder value than the rare earths exploration [5].

Core Viewpoint - The current market concerns are more focused on trade tensions, particularly between the US and China, rather than the government shutdown, with recent developments around rare earth mineral restrictions escalating tensions [1]. Trade Relations - China is attempting to frame its actions as a response to US provocations, despite claims that the US is not to blame for the current situation [2]. - The conflict is characterized as a broader issue of China versus the world, not just a US-China problem, with international allies coordinating a unified response [3]. Economic Impact - The US has various levers to counteract China's actions, indicating that both sides possess significant economic leverage over each other [4][6]. - There is a desire to avoid damaging either economy, but the US is committed to asserting its sovereignty in trade matters [5]. Strategic Industries - The investment boom in the US is partly driven by a need to reshore strategic industries, including pharmaceuticals, semiconductors, shipbuilding, steel, and rare earths, which have been neglected in past administrations [7][8]. - The COVID-19 pandemic served as a catalyst for bringing back these industries, highlighting the importance of self-sufficiency in critical sectors [7]. Diplomatic Engagement - High-level communications between US and Chinese officials are ongoing, with efforts to maintain dialogue and prevent escalation [9][10]. - The relationship between the leaders of the US and China is seen as a stabilizing factor, contributing to the avoidance of further escalation in trade tensions [11]. Market Reactions - The stock market's performance is linked to economic policies rather than solely to trade negotiations, with the implication that strong measures against China will be taken if deemed necessary for economic health [12].

Market Overview - European stocks are expected to open higher, rebounding after touching a two-week low in the previous trading session, with the U.K.'s FTSE index projected to rise by 0.37%, Germany's DAX by 0.4%, France's CAC 40 by 1.72%, and Italy's FTSE MIB by 0.6% [1] Trade Relations - Positive sentiment in the market follows a period of decline due to concerns over a potential new trade dispute between the U.S. and China, with President Trump threatening new tariff increases in response to China's export controls on rare earth minerals [2] - Trump also criticized China for not purchasing soybeans, labeling it an "economically hostile act," and hinted at possible retaliatory measures, including a cooking oil embargo [3] Political Developments - France's political landscape is under scrutiny as Prime Minister Sebastien Lecornu announced the suspension of a controversial pension reform until after the 2027 election, a significant move that has garnered support from the Socialist party [4] Global Economic Discussions - Investors are keenly observing the IMF and World Bank annual meetings in Washington, which will address critical global issues such as the economy, poverty eradication, and economic development [5]

Core Insights - U.S. rare-earths stocks have surged due to China's export restrictions, with MP Materials and USA Rare Earth seeing significant gains of over 20% [2][3][6] - China's new regulations require government approval for exports of rare-earth technologies valued at 0.1% or more, raising concerns about demand and driving up prices [3][4] - The volatility in U.S.-China trade relations has led to increased interest in rare earth stocks, with MP Materials shares rising nearly 500% this year and USA Rare Earth shares tripling [5][6] Company Performance - MP Materials and USA Rare Earth have experienced substantial stock price increases, reflecting heightened investor interest amid trade tensions [2][4] - The recent climb in stock prices is attributed to China's restrictions on rare-earth exports, which are critical for high-tech industries [3][4] - MP Materials shares had a nearly 500% increase year-to-date, while USA Rare Earth shares had tripled, indicating strong market performance [5]

Group 1 - The US-China trade tensions appear to be easing, with President Trump expressing a positive outlook on social media, stating that the USA wants to help China [1] - This optimistic tone contrasts sharply with Trump's previous threats of imposing 100% tariffs on Chinese imports, which prompted a strong response from Beijing [1] - China's recent export restrictions on rare earth minerals have reignited concerns about a potential trade war, with China asserting that it does not desire a tariff war but is prepared for one [2] Group 2 - Attention is focused on the upcoming meeting between President Trump and President Xi in South Korea, which could either advance trade discussions or lead to a stalemate [3] - US Treasury Secretary Scott Bessant confirmed that the meeting is still scheduled, which has positively influenced stock market performance amid previous volatility [3]

Core Viewpoint - China's dominance in rare earth materials poses a significant threat to Western supply chains, prompting calls for the U.S. to establish a strategic reserve of these metals [1][2]. Group 1: Strategic Reserve Proposal - Jeremy Siegel emphasizes the need for a rare earth strategic reserve, criticizing the U.S. for allowing China to monopolize 90% of the refining process [2]. - The U.S. has previously established strategic reserves, such as the Strategic Petroleum Reserve in 1975, highlighting the importance of securing critical resources [3]. Group 2: Trade Conflict and Market Impact - The intensification of the U.S.-China trade war, marked by President Trump's threats of "massive tariffs," has led to a significant market downturn, erasing $2 trillion in value [2]. - Siegel expresses confidence that the trade conflict will be resolved before the November 1 deadline, suggesting that Trump's statements are part of a negotiation strategy [4][5]. Group 3: Market Recovery Outlook - Following the trade talks, the market is expected to rebound, with the S&P 500 showing early signs of recovery, regaining about 40% of its losses from the previous Friday [6]. - Siegel predicts that once the trade issues are resolved, the market could continue to reach new highs, supported by positive economic indicators [6].