I’m back! Fresh from my trip to Davos I’m jumping right into it. Deepseek’s AI models are spraying tech stocks this morning. The Chinese AI lab has been releasing new models in recent weeksand they are cheaper than Rival Openai.
Deepseek’s models are open source, which means they are available to anyone who wants to use them for free. This is a challenge for Openai, which keeps its flagship models proprietary, and charges premium prices for them.
In a paper released last Monday, Deepseek revealed a new flagship AI model called the R1 that shows a new level of “reasoning” — and it’s left most of America’s top industry researchers amazed.
Hit Deepseek No. 1 in the Apple App Store’s Top Free Apps Chart day later.
It’s the latest disruption in AI, and markets are feeling the shock with it Nvidia down more than 10% premarket on Monday.
Meanwhile, in today’s newsletter, we’re focusing on investor hype over the new administration has some wondering if People are getting ahead of themselves.
What’s on deck?
Markets: Multistrat hedge funds I just can’t leave Manhattan.
Technical: VC Twitter has found a new love – LinkedIn.
Business: Breakfast isn’t getting any cheaper anytime soon Thanks to the price of eggs.
But first, take out the gates.
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The big story
Can it last?
Getty Images; Bi
There is a lot of uncertainty with the new administration. How investors feel about Donald Trump’s pro-business agenda is not one of them.
Stocks hit record highs during the president’s first week in office, and there is much hope that this is just the beginning. Trump’s consistent message of deregistration and low corporate taxes has investors excited about the resulting growth potential.
However, some in the market are not so convinced.
Business Insider’s Jennifer Sor has a story on how investors may be wearing trump-tinted glasses that hide some real risks.
Much of the concern stems from persistently high interest rates, worries that were pushed aside last week as investors focused on Trump’s pro-growth agenda. And while the aggressiveness of Trump’s tariff policy remains unclear, many believe it will eventually push inflation higher, further dampening the prospect of a stimulus rate cut.
While the market has chosen to look past elevated rates, the ever-important 10-year Treasury yield crawled up 13 basis points over the four-day week.
Reuters/Lucas Jackson
The US market has the benefit of somewhat being the only game in town, though.
European economies are in a much weaker position than the US, which drives the future earnings potential of companies there. And the threat of more rules makes them even less attractive.
China’s economy, meanwhile, is trying to make a comeback. It is also one of Trump’s biggest foreign targets. And while there’s always a chance for reconciliation, it’s a risky bet.
However, the US stock market is heavily focused on mega-cap tech names, which some see as a looming risk. Albert Edvard, a famous bearish strategist, shared three charts that illustrate What are the hardest things?writes BI -in Will Edwards.
But investors seem willing to keep betting on the U.S. Meanwhile, with only one term to implement his plan, Trump has no time to waste.
That means businesses (and the people who invest in them) will just have to brace themselves for a bumpy ride. BI’s John L. Dorman, Brent D. Griffiths and Bryan Metzger have a breakdown of it all Shockwaves Trump has already sent through corporate America During his first week.
News brief
Main headlines
- The Trump White House threatened tariffs on Colombia, then reversed course after striking a deal.
- Why Solana can be e Big winner of the meme-Coin frenzy.
- Inside Davos: Pictures from the World Economic Forum, where world leaders and executions go to network and party.
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Trump and Musk are at odds again. This time on the Prime Minister of the United Kingdom.
3 things in the markets
1. New York City is still the center of the hedge fund universe. Despite the interest in sunny places like Miami, regulatory filings reveal most portfolio managers in multistrategy hedge funds work from the big apple. This includes funds such as Balyasny, Citadel and Point72, which are headquartered elsewhere.
2. Within the routine and leadership style of a Citadel partner. Micah Nance leads a team of nine analysts and associates covering approximately 150 technology and media companies from the Hedge Fund’s Dallas office. He spoke to Bi about his 13 years of rising through the ranks at the high-profile firm, how he manages his time, and some career advice.
3 Here come Crypto hires. The market and regulators are getting behind digital assets again. As a result, both Fintechs and traditional finance firms are staff up.
3 things in technology
1. Zuckermoon is over. The flawed CEO was on the cusp of being cool after his big makeover and “boy’s wife.” But he’s lost brownie points by a few since taking hits on Meta’s fact-checking system, writes BI’s Katie Notopoulos. Comments Section – And even the thought of AI – is ruthless.
2. Humming around the voice he. The technique isn’t new, but investors are excited about its broad use cases and rapid recent sophistication. BI spoke to investors about the untapped opportunities they see In the sector, from real-time audio transcriptions to the generation of synthetic voices.
3. VC Twitter takes LinkedIn. Although X remains the platform of choice for venture capitalists, they are starting to post more on LinkedIn. VCS told BI that they see better ROI on their job postings in the workplace, and that it’s where business can actually be done.
3 things in business
1. Free eggs are not in sight. Bird flu isn’t going anywhere, and it’s supply limiting. Meanwhile, an increase in consumer “egg quoting” is driving demand. A push to treat chickens better is not cheap, or it is all reflected in the current egg prices.
2. Eli Lilly Weight Loss Miracles. Maker Mounjaro and Zepbound hopes to close the gap with competition Ozempica Novo Nordisk – and take things a step further. Eli Lilly’s obesity chief teased a pill to rival Ozempic and a triple “King Kong” injection to mimic bariatric surgery. Last dream: a once-a-year weight loss shot.
3. Gen Z is already fed up with work – and it’s not about laziness. Less than a third of young American workers felt engaged in their jobs last year, a report from Gallup found. The younger generation has wasted no time in taking a transactional view of work, wrote BI’s Aki Ito. However, with low engagement costing businesses $9 trillion annually worldwide, Employers should step it up.
In other news
What is happening now
The Insider Today team: Dan DeFrancesco, Deputy Editor and Anchor, New York. Grace Lett, editor, Chicago. Ella Hopkins, Associate Editor, London. Hallam Bullock, Senior Editor, London. Amanda Yen, associate editor, New York. Elizabeth Casolo, friend, in agoicago. Lisa Ryan, executive editor, New York.