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Trump Weekly: Trump weighs stake in Intel, candidates for Fed Chair

Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Trump with this weekly recap compiled by The Fly:

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STAKE IN INTEL: The Trump administration is in talks to have the U.S. government potentially take a stake in Intel (INTC) to support the company’s effort to expand domestic manufacturing, people familiar with the plan told Bloomberg’s Ryan Gould, Josh Wingrove and Liana Baker. The plans stem from the meeting this week between President Trump and CEO Lip-Bu Tan, noted the report, thought the size of the potential stake is not clear, added Bloomberg.

PHARMA TARIFF: The announcement by President Donald Trump’s administration of the results of a probe into pharmaceutical imports and new sector-specific tariffs are likely “weeks away,” which would be later than initially promised, reported Reuters, citing official and industry sources. Publicly traded large cap drugmakers include AstraZeneca (AZN), Bristol Myers (BMY), Eli Lilly (LLY), GSK (GSK), Johnson & Johnson (JNJ), Merck (MRK), Novartis (NVS), Pfizer (PFE), Roche (RHHBY) and Sanofi (SNY).

CHIP SALES REVENUE: Nvidia (NVDA) and AMD (AMD) have agreed to pay 15% of their revenue from chip sales to China to the U.S. government, Hadriana Lowenkron and Michael Sasso of Bloomberg report, citing a person familiar with the matter. This will be part of a deal with the Trump admin to secure their licenses to export. The revenues will be related to Nvidia’s sales of H20 chips and AMD’s sales of MI308 in China, the person added.

NEW DEAL: Donald Trump may allow Nvidia to sell a more advanced AI chip in China, Michael Acton, Demetri Sevastopulo, Tim Bradshaw, and Myles McCormick of The Financial Times report. Recently, Nvidia CEO Jensen Huang and President Trump entered a deal that involves the U.S. taking 15% of the Chinese sales of H20 chips. Now, Trump plans to discuss a new deal that would allow Nvidia to sell chips to China based on its latest Blackwell platform, with modification.

Meanwhile, Beijing has told local companies to not use Nvidia’s H20 processors, especially for government-related purposes, Mackenzie Hawkins and Ian King of Bloomberg report, citing people familiar with the matter. Chinese authorities have sent notices discouraging the use of the semiconductors, but have not outright banned the use of H20 chips, the sources added.

DATA ACCESS FEES: Top fintech and crypto executives are urging the Trump administration to block U.S. banks from charging fees for access to customer data, arguing that the proposed fees would “cripple” innovation and “may cause small businesses and financial tools to shut down entirely,” Bloomberg’s Paige Smith reports. Klarna (KLAR), Robinhood (HOOD), and Gemini are among a list of companies, investors, and lobbying groups that signed a letter to President Trump arguing against the fees.

“We urge you to use the full power of your office and the broader administration to prevent the largest institutions from raising new barriers to financial freedom,” they said in the letter. “We cannot allow the most powerful, entrenched banks to close the door on a more open and modern financial system.” JPMorgan (JPM) and PNC (PNC) plan to charge fees for access to customer account information, viewing data aggregators as freeloaders who access data without paying.

CANADIAN BOYCOTT: After President Trump initiated a series of trade battles with Canada, many in the country stopped placing orders for American-made spirits and pulled U.S. liquor brands off the shelves, Laura Cooper and Vipal Monga of The Wall Street Journal report. Now, six months later, the hit to the U.S. alcohol industry is coming into view. The Distilled Spirits Council estimates exports of U.S. distilled spirits to Canada in the first six months of the year are down 62% compared to the same period in 2024. Similarly, American wine exports to Canada were down about 67%. Publicly traded beer and spirits makers include AB InBev (BUD), Molson Coors (TAP), Constellation Brands (STZ), Diageo (DEO), Heineken (HEINY) and Boston Beer (SAM).

FED CHAIR: The Trump administration is considering 11 candidates to replace Federal Reserve Chairman Jerome Powell when his term ends in May, including Jefferies (JEF) Chief Market Strategist David Zervos, former Fed Governor Larry Lindsey, and BlackRock (BLK) chief investment officer for global fixed income Rick Rieder, according to CNBC’s Steve Liesman, citing two unnamed administration officials.

FED CHAIR PICK: President Trump said he would announce his Fed chair pick “a little bit early,” sometime within the next week perhaps. Amid his constant push for cuts and his decision to announce his pick early to form a “shadow Fed,” along with Treasury Secretary Bessent’s comments today that the Fed should lower rates by -150 bps to -175 bps have helped support the futures. The implied September contract is now pricing in -26.5 bps in cuts with October at -43 bps and December at -63.3 bps.

TARIFFS: President Donald Trump stated in a post to Truth Social, “Trillions of Dollars are being taken in on Tariffs, which has been incredible for our Country, its Stock Market, its General Wealth, and just about everything else. It has been proven, that even at this late stage, Tariffs have not caused Inflation, or any other problems for Country, other than massive amounts of CASH pouring into our Treasury’s coffers. Also, it has been shown that, for the most part, Consumers aren’t even paying these Tariffs, it is mostly Companies and Governments, many of them Foreign, picking up the tabs. But David Solomon and Goldman Sachs refuse to give credit where credit is due. They made a bad prediction a long time ago on both the Market repercussion and the Tariffs themselves, and they were wrong, just like they are wrong about so much else. I think that David should go out and get himself a new Economist or, maybe, he ought to just focus on being a DJ, and not bother running a major Financial Institution.”

APPARENT IPO: Shares of Fannie Mae (FNMA) and Freddie Mac (FMCC) moved higher after President Trump over the weekend posted a picture on social media of an alleged initial public offering on the New York Stock Exchange of a company called “The Great American Mortgage Corporation.” The post followed reporting last week that the Trump administration is weighing an IPO of the government sponsored entries.

Keefe Bruyette keeps Underperform ratings on both Fannie Mae and Freddie Mac after the Wall Street Journal reported on Friday that the Trump administration is planning to do an initial public offering of both later this year. The firm finds “very unlikely” that an IPO can be done by the end of 2025. There are numerous factors to address before an IPO, including the current minimum capital, which is roughly 4.25% of assets for both companies and results in estimated run-rate returns on equity of 7%-9%, the analyst tells investors in a research note. Keefe believes investors won’t be willing to buy shares of companies with such low ROEs. In order for Fannie and Freddie to generate low-teens ROEs, the capital rules have to be changed to remove the buffers and take capital levels back closer to the statutory minimum of 2.5%, contends the firm.

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