Prof G Markets Who Wins in the U.S.-EU “Deal”? Wall Street Turns Bullish on Nike & Anthropic’s $150B Valuation
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Jul 29, 2025 A deep dive into the recent U.S.-EU trade deal reveals mixed market reactions and raises questions about its true benefits. Wall Street is buzzing with newfound optimism for Nike, thanks to impressive stock upgrades. The conversation then shifts to Anthropic's soaring valuation, sparked by controversial investments from the UAE, highlighting the ethical dilemmas facing Silicon Valley. The tension between profit and principles is scrutinized as major tech firms grapple with inconsistencies in their missions.
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Skepticism Over 'Historic' Trade Deal
- The U.S.-EU trade deal announced as historic is essentially a framework with no signed contracts or clear timelines. - Such trade deal announcements under Trump often result in press releases without actual enforcement or fulfillment.
Trade Deal Favors U.S. but Costs Rise
- The EU-U.S. deal appears asymmetrically favorable to the U.S., with tariffs mostly impacting American households through higher prices. - Europe's internal divisions and reliance on the U.S. military umbrella factor into their trade negotiation stance.
Turning Point for Nike's Performance
- Nike has been struggling with inventory, tariffs, and bad demand but new management is refocusing on core sports products. - Wall Street analysts have started upgrading Nike, reflecting optimism about its turnaround and recovery.