
FT News Briefing
US dealmaking slides in 2025
Feb 10, 2025
China's new tariffs on $14 billion of U.S. goods are shaping a challenging landscape for Wall Street. Mergers and acquisitions have hit a decade-low, with a significant decline in corporate transactions amid political unpredictability. Meanwhile, French President Macron is pushing forward with a €109 billion investment in artificial intelligence. In the tech world, firms like MicroStrategy are pioneering a trend of companies adding Bitcoin to their corporate assets, aiming to boost their market value despite its volatility.
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Quick takeaways
- China's retaliatory tariffs on $14 billion of US goods exacerbate existing trade tensions, further destabilizing the US dealmaking environment in 2025.
- MicroStrategy's strategy of accumulating Bitcoin has sparked interest among diverse companies seeking to enhance stock valuations despite the associated risks.
Deep dives
China's New Tariffs and Trade Tensions
China has implemented new tariffs on approximately $14 billion worth of U.S. goods, targeting sectors like energy exports and farm equipment with levies ranging from 10 to 15 percent. This retaliation is in response to President Trump's recently enacted tariffs and reflects the continuing trade tensions between the two countries. Market expectations for a favorable trade deal had been high, mirroring past agreements with other nations, but have since diminished due to the lack of negotiations. Trump's comments indicate no urgency to resolve the issues, which may lead to further escalations in trade barriers.
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