Morgan Stanley to Increase Sale of Loans Tied to Musk’s X Amid Strong Demand

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Morgan Stanley, leading a group of banks, is set to increase the sale of loans linked to Elon Musk’s social media platform X, following stronger-than-expected demand from investors, according to Bloomberg News on Tuesday. Initially, the banks had planned to sell around $3 billion in loans, but the revised target now stands at up to $5.5 billion, reflecting investor interest that exceeded expectations.

In November, reports indicated that Musk’s rising political influence and connections to former President Donald Trump played a role in improving prospects for the platform, which helped banks manage the debt sale without incurring heavy losses. Morgan Stanley, along with other financial institutions like Bank of America and Barclays, provided Musk with loans in 2022 to support his $44 billion acquisition of X, formerly known as Twitter.

Typically, banks sell such loans to investors shortly after a deal is finalized, but the process has been more challenging in the case of X. Despite this, the latest demand suggests a more favorable outcome for the banks involved.

Trump Plans Oil Tariffs by Feb. 18, May Lower Rate for Canada

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U.S. President Donald Trump announced on Friday that his administration plans to impose tariffs on oil and gas imports by February 18, with a potential reduction in the levy for Canadian crude. While Trump did not specify which countries would be targeted, he suggested that the tariff on Canadian oil might be set at 10%, down from the previously mentioned 25%.

The U.S. imports approximately 4 million barrels of oil per day from Canada, with about 70% refined in the Midwest. Analysts and industry leaders have warned that tariffs on imported oil could disrupt supply chains, lower fuel production, and drive up consumer prices. Many U.S. refiners, including Valero and Phillips 66, depend on heavier crude grades from Canada and Mexico, which their facilities are designed to process.

Phillips 66 has indicated that the tariffs could initially divert Canadian oil away from the U.S. market, while Valero, the country’s second-largest refiner, has been preparing contingency plans. HF Sinclair and Par Pacific Holdings, which also have significant exposure to Canadian crude, are closely monitoring developments.

Industry experts are awaiting further details on Trump’s tariff strategy, particularly its impact on U.S. refining operations and fuel prices.

US DOJ Sues to Block Hewlett Packard Enterprise’s $14 Billion Juniper Deal

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The U.S. Department of Justice (DOJ) has filed a lawsuit to block Hewlett Packard Enterprise’s (HPE) $14 billion acquisition of Juniper Networks, arguing that the deal would reduce competition in the networking equipment market. According to the complaint, the merger would result in just two companies—HPE and Cisco Systems—controlling more than 70% of the U.S. market for networking gear.

Shares of both HPE and Juniper Networks fell by about 2% following the announcement. This antitrust lawsuit is the first to be filed under the current administration.

In response, the companies argue that the deal will not harm competition, claiming that it would bring together two complementary networking solutions that can better compete with established global players. They also pointed to Juniper’s innovations, which have driven HPE to lower its prices and invest more in innovation.

The DOJ’s complaint specifically noted that Juniper’s competitive pressures have forced HPE to offer discounts and develop new features to maintain market relevance. The companies are prepared to defend the merger in court, with pretrial and trial proceedings expected to take place over the next eight months, before the deal’s walk-away date in October.

While the DOJ moves forward with its challenge, both the UK’s Competition and Markets Authority and the European Union have already approved the acquisition.