Donald Trump Calls for 50% US Military Spending Hike, Targets Defense Firms

Trump's Defense Spending Proposal

• 🎯 Donald Trump announced a call to increase the US defense budget by 50% to $1.5 trillion by 2027.
• 🚀 This ambitious goal aims to build a "dream military" in response to an unstable geopolitical landscape.
• ⚠️ Trump also vowed to crack down on US defense firms, specifically Raytheon, threatening to cut business if they don't prioritize investment in new manufacturing plants over shareholder payouts.

Housing Market Concerns

• 🏠 Trump plans to address the housing crisis by proposing measures to stop large institutional investors, like Blackstone, from buying single-family homes.
• 📈 This initiative aims to combat rising rental and buying costs, which have been exacerbated by Wall Street firms becoming major landlords.

China's AI Startup IPOs

• 💡 China's tech sector is undergoing a crucial test with several AI and chipmaking startups going public in Hong Kong.
• 📈 Jipu AI (ZDE.AI) made its market debut as the first major generative AI startup from China to go public, raising over half a billion US dollars.
• 🇨🇳 Chinese authorities are fast-tracking these listings to bolster the domestic tech ecosystem and compete with American AI giants like OpenAI and Nvidia.
• 🔬 Despite hurdles like export bans and limited access to computing power, Chinese firms like Deepseek are demonstrating capabilities that rival Silicon Valley's offerings.

Market Overview

• 📉 Markets in East Asia, including Tokyo's Nikkei, saw shares mostly lower.
• 🇪🇺 European markets also opened lower or flat, with lingering concerns over geopolitical risks and past threats, such as Trump's stance on Greenland.