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Getty Images Survey Monday Is the creation of an American sovereign wealth fund a good idea? Take the survey here and don't forget to share your thoughts in the WSB comments section . A new fund Calls are increasing for the U.S.
to set up a sovereign wealth fund, or an investment arm of the federal government. Republican presidential contender Donald Trump announced support for such an initiative last week during a speech to the Economic Club of New York. The Biden administration has also reportedly been working on a similar plan in recent months, which is being spearheaded by National Security Advisor Jake Sullivan and deputy Daleep Singh, whose role centers around international economics.
Where would it invest? Funds would be allocated to national development projects, like infrastructure and manufacturing hubs. It could also help in areas that are seen as critical for national security , like supply chain minerals, defense capabilities or nuclear fusion projects. The U.
S. already has a dozen or so state-level sovereign wealth funds, like the Alaska Permanent Fund, and could invest in traditional sectors like stocks, bonds, private equity and real estate. However, there are scant details about where the money would come from at the federal level.
Trump has said he would source cash from "tariffs and other intelligent things," while White House officials are looking at several additional streams. The fund's creation would also require an act of Congress (one can imagine the hurdles that will be present there) and the proposal can get even more controversial if funding was sourced through appropriations bills or new debt issuance. Quotes: "It would be great to see America join this party and instead of having debt, have savings," said hedge fund manager John Paulson, adding that over time it could become bigger than any rival funds.
"At best you've got to grade that one as incomplete because it's not fully fleshed out," countered former Treasury Secretary Larry Summers. "It's one thing if you're Norway or the Emirates that has this huge natural resource that's going to run out, but we've got a big trade and budget deficit." Take the WSB survey.
Antitrust showdown The Justice Department's second antitrust trial against Google ( GOOG , GOOGL ) will begin today in Virginia, where the search giant will defend itself against claims that it illegally operates a monopoly in the advertising market. The DOJ is seeking, at minimum, the divestiture of the Google Ad Manager platform. The trial comes a little over a month after a landmark court ruling on Google's search monopoly .
In other Big Tech news, Apple ( AAPL ) is set to unveil the new iPhone 16 , which will feature a next-generation chip developed by Arm’s ( ARM ) latest design architecture. On the economy Treasury Secretary Janet Yellen has said recent economic data signaled that the U.S.
economy is pulling off a soft landing , but noted there are "downside risks" to employment. "So what I see when I look at the economy is very strong growth deep into a recovery, with the economy operating basically at full employment," Yellen said at the Texas Tribune Festival, adding that there were "no red lights flashing." Her statements followed last week's jobs data and renewed growth fears, triggering the S&P 500's worst weekly selloff since the 2023 regional banking crisis.
( 18 comments ) Not taking 'no' Alimentation Couche-Tard ( ATD:CA ) has informed Seven & i ( OTCPK:SVNDY ) that it’s still interested in pursuing an acquisition after the 7-Eleven store owner rejected its initial bid. The Canadian operator of Circle K convenience stores may even be willing to raise its offer price after its initial proposal was said to be too low and didn't factor in regulatory hurdles . Couche-Tard prefers a friendly takeover, but it reportedly hasn’t excluded the possibility of presenting its offer directly to Seven & i shareholders.
( 10 comments ) Today's Markets In Asia, Japan -0.5% . Hong Kong -1.
4% . China -1.1% .
India +0.4% . In Europe, at midday, London +0.
7% . Paris +0.7% .
Frankfurt +0.7% . Futures at 7:00, Dow +0.
7% . S&P +0.7% .
Nasdaq +0.8% . Crude +0.
9% to $68.30. Gold flat at $2,524.
20. Bitcoin +1.4% to $55,373.
Ten-year Treasury Yield +3 bps to 3.75%. Today's Economic Calendar 10:00 AM Wholesale Inventories (Preliminary) 3:00 PM Consumer Credit Companies reporting earnings today » What else is happening.
.. SA Asks: Which defense stock is the best long-term investment? Big Lots ( BIG ) files for bankruptcy, sells business to Nexus Capita l.
Norfolk Southern ( NSC ) CEO faces probe for alleged misconduct . Boeing ( BA ) labor contract to boost wages by 25% over four years . On the way.
.. U.
S. to propose new bank capital rule changes . 'One, maybe two' years left to turn Volkswagen brand around .
Gulf of Mexico oil drilling faces threat from ruling on endangered species . Dell Technologies ( DELL ), Palantir ( PLTR ) set to join S&P 500 ( SP500 ). DirecTV files FCC complaint accusing Disney ( DIS ) of stifling competition .
Unpacking the differences between multifamily and office CRE outlooks ..
