TMTB Morning Wrap

Good morning. Futures -1.8% as Trump threatened Tariffs on Europe regarding Greenland sparking a fresh wrinkle to the “Trade war" which many assumed was already in the read-view mirror. Others also pointing to Japanese yields spiking as investors grow anxious about upcoming election and potential impact on fiscal policy (h/t VK). Asia mainly down overnight: : TPX -0.84%, NKY -1.11%, Hang Seng -0.29%, HSCEI -0.43%, SHCOMP -0.01%, Shenzhen -0.83%, Taiwan TAIEX +0.38%, Korea KOSPI -0.39%. Treasuries mixed; 2-year yields are about unchanged while 10 and 30-year yields spike 6 and 10bp (DANISH PENSION FUND AKADEMIKERPENSION TO EXIT US TREASURIES). Warsh has moved to clear pole position on the Fed with prediction markets having him at 60%+. Trump is at Davos this week.

Let’s get to it…

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OAI/NOW: OpenAI and ServiceNow Strike Deal to Put AI Agents in Business Software

WSJ:

OpenAI and ServiceNow said they signed a three-year deal that will integrate the ChatGPT-maker’s AI models into ServiceNow’s business software.

The deal depends on customers using OpenAI’s models within ServiceNow, and also includes a revenue commitment from ServiceNow to OpenAI. More specific terms weren’t disclosed.

“Enterprises want OpenAI intelligence applied directly into ServiceNow workflows,” said Brad Lightcap, OpenAI’s chief operating officer. “Looking ahead, customers are especially interested in agentic and multimodal experiences, so they can work with AI like a true teammate inside ServiceNow.”

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APP -7%: Short report out…tends to always happen in blackout periods.

Full report here…really feels sloppy and overall, none of the points raised look meaningfully new or impairing,…my advice - just throw it into your favorite LLM and ask questions.

TMTB chat thread on it here

SahmCapital recaps: