Hello Capitalists,

President Trump is the new “Man Of Steel” at his Pennsylvania rally, Warren Buffet’s latest investment strategy is being copied, Poland goes MAGA, Russia is reeling after Ukraine’s daring attack and the US Senate goes to work on the “Big Beautiful Bill”

Let’s break it down for you:

Trump just gave the US steel industry a huge opportunity

President Trump’s recent decision to double steel tariffs is shaking things up big time in the U.S. steel industry, and its got major implications for jobs, prices, and global trade.

• Tariff Hike Announced: At a Pennsylvania rally, Trump revealed plans to raise tariffs on steel imports from 25% to 50%, aiming to bolster the U.S. steel industry.

• Stock Market Surge: Steel companies saw massive gains—Cleveland-Cliffs soared 22–25% in premarket trading, Steel Dynamics jumped over 13%, and Nucor climbed more than 12%.

• ETF Boost: The VanEck Steel ETF (SLX) rose over 3%, reflecting broader market enthusiasm for domestic steel producers.

• Trade Tensions Rise: The tariff increase has sparked criticism from global partners, with Europe warning it “undermines” trade negotiations and threatening countermeasures.

• Economic Impact: Higher tariffs could secure U.S. steel jobs but may raise costs for consumers and businesses reliant on imported steel.

• Policy Context: This move builds on Trump’s earlier tariff policies, which have already reduced U.S. steel imports by 35% from 2014 to 2024.

Warren Buffet started picking up US treasuries and now the market is following his lead

Warren Buffett is playing it safe with his money right now and now investors are following his lead and flocking to short-term Treasury bets.

• Investors are favoring short-term Treasuries: Fixed-income folks are sticking to short-term Treasury bills to avoid the ups and downs of longer-term bonds, which are seeing a lot of volatility right now.

• Buffett’s big move: Warren Buffett’s Berkshire Hathaway has doubled down, now owning a whopping 5% of the entire short-term T-bill market, showing his confidence in these safer bets.

• Why the caution?: Bond yields and prices are fluctuating, especially for longer maturities, due to concerns about inflation, government spending, and upcoming tariffs.

• Stable yields in short-term bonds: Short and mid-term Treasuries, like the 3-month T-bill yielding over 4.3%, are less volatile, making them a hot pick for investors in 2025.

• ETF popularity surges: Ultra-short bond ETFs, like iShares 0-3 Month Treasury Bond ETF (SGOV), are raking in billions, with over $25 billion in investor flows this year.

• Economic signals: The rush to short-term bonds suggests investors are bracing for uncertainty, possibly due to fears of inflation or a potential economic slowdown.

Poland follows America’s lead and elects Trump-backed candidate

The recent presidential election in Poland is a game-changer, not just for Poland but for Europe and beyond, because it signals a potential shift in the region’s political vibe. A nationalist candidate backed by none other than U.S. President Donald Trump has snagged the presidency, which will shake things up for Poland’s pro-EU government and its ties with neighbors like Ukraine.

• Nawrocki’s Narrow Win: Karol Nawrocki, a nationalist historian backed by the Law and Justice (PiS) party, won Poland’s presidency with 50.89% of the vote, just edging out Warsaw’s liberal mayor, Rafał Trzaskowski, who got 49.11%. It was a super tight race

• Trump’s Influence: Nawrocki got a major boost from Trump, who met him at the White House and sent U.S. Homeland Security Secretary Kristi Noem to rally support at a conservative conference in Poland. This shows Trump’s clout reaching across the Atlantic.

• Setback for Tusk’s Agenda: The win is a headache for Prime Minister Donald Tusk’s pro-EU government, as Nawrocki’s likely to use his veto power to block Tusk’s reforms, just like the outgoing president did.

• Eurosceptic Vibes: Nawrocki’s victory fuels the eurosceptic, “Poland first” movement, which could strain ties with the EU and align Poland more with nationalist leaders like Hungary’s Viktor Orban.

• Ukraine in the Mix: While Nawrocki supports aid to Ukraine, he’s against its NATO membership and has echoed Trump’s gripes about Ukraine’s gratitude, which could complicate Poland’s role in the region.

• Deep Political Divide: The close race highlights Poland’s split between nationalist and liberal visions, with Nawrocki’s supporters waving U.S. flags and pushing traditional values, while Trzaskowski’s camp champions EU integration and progressive policies.

Ukraine’s Mission Impossible sneak attack on Russia shocks the world

On June 1, 2025, Ukraine pulled off a massive drone attack deep inside Russian territory, hitting strategic air bases and shaking things up big time. This isn’t just another strike; it’s a loud statement that Ukraine can hit hard and far, exposing cracks in Russia’s defenses and rattling Putin’s confidence.

• Audacious Attack Hits Deep: Ukraine’s “Operation Spiderweb” targeted over 40 Russian strategic bombers at air bases like Belaya in Siberia, nearly 3,000 miles from Ukraine, showing their drones can strike far beyond the front lines.

• Massive Damage Inflicted: The strikes reportedly caused over $2 billion in damage, with some estimates suggesting up to $7 billion, destroying key aircraft like Tu-95 and Tu-22M3 bombers critical for Russia’s long-range attacks.

• Clever Covert Tactics: Drones were smuggled into Russia inside trucks disguised as cargo, like modular homes, and launched remotely near air bases, catching Russian defenses off guard in a spy-thriller-style operation.

• Blow to Putin’s Pride: Western analysts call this a major humiliation for Putin, showing his forces are vulnerable despite recent battlefield gains, with some comparing it to Russia’s “Pearl Harbor.”

• Peace Talks Complicated: The attack, timed just before peace talks in Istanbul, dims hopes for diplomacy, as Russia may retaliate by bombing Ukrainian civilians, while both sides remain far apart on ceasefire terms.

• Long-Term Planning Pays Off: Ukraine’s President Zelenskyy revealed the operation took 18 months to plan, highlighting their strategic patience and ability to execute complex, high-impact missions.

The Senate takes up the “Big, Beautiful Bill” with $3.9 trillion in tax-cuts on the table

The massive $3.9 trillion tax-cut bill tied to President Trump’s “Big Beautiful Bill” is now in the Senate’s hands. This isn’t just some boring policy talk—it could affect your wallet, your taxes, and even the broader economy.

• Senate’s Turn to Tweak: The Senate is starting closed-door talks to revise Trump’s $3.9 trillion tax-cut bill, which barely passed the House by a single vote (215-214). Expect significant changes as senators hash it out.

• Business Tax Cuts in Focus: Senate Finance Chairman Mike Crapo wants to make temporary business tax cuts from the House bill permanent, which could be a big win for companies but a sticking point in negotiations.

• Medicaid and Food Stamps Debate: Some Republican senators are uneasy about the House bill’s new Medicaid co-pays and state cost-sharing for Medicaid and food stamps, which could face pushback or softening in the Senate.

• Debt Limit Concerns: The bill’s tied to raising the U.S. debt limit, raising fears of a potential payment default if the Senate’s revisions drag on too long.

• SALT Deduction Changes: The House raised the state and local tax (SALT) deduction cap to $40,000, but the Senate might adjust this further, impacting taxpayers in high-tax states.

• Economic Implications: With the bill funding border control and cutting programs like Medicaid, the Senate’s final version could affect everything from consumer prices to federal spending priorities.

Markets have a case of the jitters over the Trump-China negotiations

President Trump’s 90 day trade tariff truce with China’s President Xi Jinping is holding for the moment, but a lot of how things will play out depend on the call between the two leaders.

• Trade Truce Trouble: The U.S. and China agreed to a 90-day pause on their sky-high tariffs last month, but now both sides are accusing each other of breaking the deal, making things shaky again.

• Waiting on Xi: Trump is holding off on trade talks with other countries until he can speak with Xi Jinping, which could be a make-or-break moment for U.S.-China trade relations.

• Tariff Tensions: Trump announced plans to double steel and aluminum tariffs to 50%, which has China ready to hit back with “strong measures” to protect its interests.

• Market Jitters: The uncertainty is making markets nervous—U.S. and European stocks dipped, while the FTSE 100 in the UK saw a slight uptick as investors flock to gold for safety.

• Legal Limbo: Trump’s tariffs are facing legal challenges; a federal court briefly blocked them, calling the method “unlawful,” but an appeals court let them stay for now, with a Supreme Court fight possible.

• Global Ripple Effects: The delay in the Trump-Xi call is stalling trade negotiations worldwide, impacting deals with nations like India and the EU, as everyone watches what happens next.