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| Hey Chedd-heads! Feeling brie-lliant today? Here's a deal you can't resist. Down below, there's a muenster of an ad, for our friends at The AI Report, that's just begging for a click. Believe it or not, for each of you who clicks it, Cheddar earns $1—that's one whole dollar, or enough to purchase roughly 20 pounds of American Cheddar on the commodities market. If you like reading Need2Know, please consider clicking to support us. | Fontiago, as we all know, is a combination of Fontina and Asiago, pairing the sweetness of the former with the tanginess of the latter. It's ideal for pizzas, pasta, polentas, or focaccias. Meanwhile today's cheddlines include a sovereign wealth fund! So, that's yer cheese pun! | Today's Cheddlines you Need2Know | | Invest all of your money in reasonably high-quality opportunities. #NotFinancialAdvice | —Matt Davis, Need2Know Chedditor | P.S. What's a special government employee, when it's at home? Find out on our gram. | | Quote of the Day | | ❝ | | | We're looking at the assets of our legacy industries and showing how we can position them for innovation and growth in the future | | | | — Susan Bourgeois |
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| | Should You Check Your 401 (k) today? | 👍🏽 | Hell, yes. You're welcome. | | | | President Donald Trump signed an executive order Tuesday that lays the groundwork for the United States to develop its first-ever federal sovereign wealth fund, which he said could buy TikTok. Trump's negotiation tactics revolve around finding an American buyer for TikTok. He contends that the U.S. should consider taking a sizable stake in the company. | Sovereign wealth funds are state-owned investment vehicles that manage a mixture of assets such as stocks, bonds, and real estate. Generally funded by surplus reserves, the U.S., running on a budget deficit, would be an unconventional entrant into this market. | Despite this, Trump remains optimistic about the potential size of the U.S. fund, ambitiously hoping to surpass Saudi Arabia's massive wealth fund one day. Globally, there are over 90 sovereign wealth funds managing more than $8 trillion in assets. The U.S. itself is home to more than 20 at the state level, including major ones in Alaska, New Mexico, and Texas, which are primarily fueled by mineral and energy proceeds. | The charge to lay the foundation for this new fund has been given to Treasury Secretary Scott Bessent and Howard Lutnick, the President's nominee for Commerce Secretary. A plan, including investment strategies and governance models, is to be developed within 90 days, as per the order. This aggressive timetable aims to have the fund operational within 12 months, and it will likely require congressional approval…at least if you believe in the U.S. Constitution, which is pretty clear about such things. | The idea of a federal sovereign wealth fund isn't completely new; former President Biden's administration had toyed with the concept for national security investments, though he took no tangible actions during his tenure. The recent developments around TikTok — which was on the brink of a U.S. ban under a law pushed through by Congress and upheld by the Supreme Court — have added pressure and opportunity. Trump's halt on the law's enforcement offers ByteDance a grace period to strike a deal. Various potential buyers including tech giants and billionaires have shown interest. | If Trump's administration navigates this path successfully, the U.S. government could find itself in an unprecedented position of part-ownership in one of the world's fastest-growing social media platforms. When you use a word like "unprecedented" around the U.S. government it can sometimes be a sign that one needs to be careful. | Mr. Lutnick said leveraging the scale of the U.S. government's business could generate value for American citizens, suggesting that such ventures could benefit the public financially. Moreover, a successful sovereign wealth fund could play a role in investments like vaccine production, adding a profitable edge to national security. That's assuming we still believe in vaccines by then, of course. | Twitter has already suggested a few candidates to manage the fund. |  | Adam Deermount @ADeermount |  |
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Who should manage the sovereign wealth fund? I'll go first: | |  | | | 9:30 PM • Feb 3, 2025 | | | | | | 3.93K Likes 197 Retweets | 78 Replies |
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| | | Your friendly AI discussion awaits—and Cheddar's future cheese stash thanks you! 🐁🧀 | There's a reason 400,000 professionals read this daily. | | Join The AI Report, trusted by 400,000+ professionals at Google, Microsoft, and OpenAI. Get daily insights, tools, and strategies to master practical AI skills that drive results. | Sign up now for free and work smarter, not harder. | | | | MarketWatch's Rob Schroeder noted that the administration's tariff threats against Mexico and Canada were ultimately put on hold this week after both countries agreed to certain concessions. "As soon as this tariff threat went through, they did strike a deal," Schroeder said. "Mexico said they would put more troops on the southern border...and they paused for one month the tariffs that were going to affect Mexican goods. The same with Canada as we saw just a few hours later."
Schroeder also noted that the concessions made by Canada were relatively minor. "Similarly, a 30-day pause of measures related to the border," he said. The situation with China, however, is different. The administration's tariffs on Chinese goods went into effect as planned, and China has retaliated with tariffs of its own. "10% on Chinese goods across the board," Schroeder said. "China did retaliate on targeted U.S. goods. The latest we hear from the White House is that a call between President Trump and President Xi is in the works. It's being arranged."
Schroeder said it's too early to declare winners and losers in the administration's tariff battles. "We do have another month to go here. I would expect, though, that these kinds of deadlines keep occurring, keep getting put on the calendar, keep getting renegotiated," he said.
Schroeder also questioned whether the administration's tariff threats were simply a bluff. "It's an interesting strategy to go right up until the 11th hour and ask for these things," he said. "I don't know who was bluffing, who was blinking and so on. But I do think that President Trump did get results of some kind." | | | From @cheddar | | cheddar |  |
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| | | | | I lived in New Orleans for 18 months between 2010 and 2011 reporting on law enforcement corruption, and one thing I did not see was the potential for a thriving economic future in Louisiana. I did eat a lot of crawfish and go to some incredible live music performances, however. One of my abiding memories was going to the "shrimp and petroleum festival" in Morgan City during the BP Deepwater Horizon spill aftermath. In a piece of remarkably understated irony, the oil company sponsored the day care. | We met with Susan Bourgeois, Louisiana Economic Development Secretary, who clearly knows a lot more about economic development than I do. She expressed optimism about Louisiana's economic future, highlighting the state's preparedness for the Super Bowl on Sunday, and Meta's recent announcement of a major investment. | New Orleans is well-prepared to host its 11th Super Bowl, citing the city's experience, culture, and infrastructure as key factors. "We throw a great party here in New Orleans," she said. "The city is ready. The state is ready, and we are really looking forward to the 150 million eyes that will be on the game."
The Super Bowl is expected to generate significant economic activity, but Bourgeois stressed that the state is also using the event to showcase Louisiana's opportunities to a broader audience. "It's not just about the tourist dollars that are here today," she said. "It's about using this kind of attention to show everything that Louisiana has to offer."
Meta plans to build its largest-ever AI facility in Louisiana. The $10 billion investment is a major vote of confidence in the state, Bourgeois said. "It says that Louisiana is positioned to win on that front. It says that Meta has confidence in our people and our education systems to stand up a workforce for them."
The Meta investment is part of a broader push by Louisiana to attract tech companies and promote innovation. Bourgeois said the state is launching an innovation brand to highlight its assets and attract more investment. "We're looking at the assets of our legacy industries and showing how we can position them for innovation and growth in the future," she said.
Bourgeois acknowledged that something called "climate change" is a concern for businesses but emphasized that Louisiana has invested billions of dollars in coastal restoration and levee projects. "Louisiana has spent 20 years and billions of dollars protecting against disasters," she said. | The state only averages one hurricane every three years, and it's now been 20 years since Hurricane Katrina.
"Louisiana is open for business," she said. "We have a lot to offer companies, and we're committed to creating a welcoming environment for them." | Laissez les bon temps rouler! | | | | | Bitcoin's price has been fluctuating wildly, especially in response to macroeconomic news, such as President Trump's tariffs. The fragrantly named Thomas Perfumo, global economist at Kraken, talked with us about the outlook for the currency. | "As crypto becomes increasingly mainstream, becomes a more legitimate asset class, it also comes with the double-edged sword, which is that it's increasingly correlated with the macro economy," Perfumo said. "So you have to treat crypto — Bitcoin, Ether, etc. — as a risk asset that has high beta to the macro economy. And again, we're not immune from these kinds of macroeconomic shocks."
Despite the volatility, Perfumo is optimistic about the future of crypto, especially under the Trump administration. He believes that the administration is taking a more pro-crypto stance, which could lead to more regulatory clarity and innovation. He also believes that the creation of a strategic Bitcoin reserve could be a major catalyst for the industry.
He said Bitcoin may even be superior to gold in some ways.
"I think for a lot of people, they view Bitcoin as functionally serving the same purpose as gold, in my opinion, in a superior manner because it's more highly divisible, it's more mobile, it's 24/7, 365 over the Internet," he said. Although you can't melt Bitcoin down and turn it into a nice pair of earrings, can you?
| | | | | Breakfast enthusiasts and late-night diners face a rude awakening as they roll into their local Waffle House, the venerable institution of American comfort food. A newly implemented 50-cent surcharge per egg has hit the menu. | Waffle House explains that it is a direct result of egg prices "more than doubling since the summer of 2023." | Donald Trump made a campaign promise to "immediately bring prices down" on his first day in office. Instead, egg prices have spiked. December saw the average price for a dozen eggs in the U.S. reach $4.15, a substantial climb, though not yet breaching the $4.82 peak seen two years ago. With the recent bird flu outbreak showing no signs of abating and with Easter on the horizon, the U.S. Department of Agriculture predicts egg prices will continue to rise, by as much as 20% this year. | Waffle House, known for its budget-friendly menu, has made the grim decision to implement its egg surcharge effective immediately, affecting all items on the menu that include eggs. For example, the chain's two-egg breakfast, previously priced at a modest $7.75, will now feel the brunt of these agricultural woes at $8.75. | In a statement, the company expressed hope that the price hikes would be a temporary scramble but acknowledged an inability to predict when this shortage might end. Waffle House has also committed to monitoring egg prices and promised to adjust or remove the surcharge as the market allows. | Behind these soaring prices is the devastating bird flu outbreak that has forced the culling of millions of chickens monthly, profoundly impacting supply. The urgency has been underscored by reports of the first U.S. human fatality linked to bird flu in Louisiana, with the Centers for Disease Control and Prevention confirming 67 human infections in the country since 2024. | H5N1 bird flu has not only affected poultry but has also been spreading among wild birds, cattle, and other animals. Public health officials highlight the danger of such widespread activity, increasing the risk of exposure and infection to humans, though such cases remain relatively rare. | Waffle House, headquartered in Georgia, operates over 1,900 locations across 25 states. As the situation unfolds, health officials are stressing vigilance and precautionary measures for individuals in contact with sick or dead birds, advising the use of respiratory and eye protection, as well as gloves when dealing with poultry. | I must say, this story has really put me off my chicken. | | | | Want more Cheddar? Watch us! | Search "Cheddar" on Samsung, YouTube TV, and most other streaming platforms. | N2K is the tip of of the cheeseberg for financial news, interviews, and more. | |
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