CNBC Daily Open: Trump’s cuts continue sweeping through the US government, and even the penny is not spared

It’s been just over three weeks into the second term of U.S. President Donald Trump, and the flurry of announcements from the White House shows no sign of abating.

The administration is set to pause enforcement of the Foreign Corrupt Practices Act,  President Trump has removed the director of the government ethics office, and (gasp!) even the humble penny is not spared, with Trump ordering a halt to penny production. 

For investors, the dismantling of ethics regulations would definitely raise questions. How would U.S. companies now conduct themselves, especially in markets where corruption is more rampant? Will more brown envelopes be slipped under tables, all in the name of retaining or winning business? Will the rule of law be superseded by the amount of business brought in by a company?

There are no straight answers to these questions, but expect to hear experts and economists’ two cents in the coming days.

Well, at least when the penny is still around. 

— Lim Hui Jie

Altman declines $97.4 billion offer for OpenAI by Musk-led investors
Tesla CEO Elon Musk is leading a group of investors in offering to buy control of OpenAI for $97.4 billion, CNBC confirmed. The offer is for the nonprofit that oversees the artificial intelligence startup behind ChatGPT. However, OpenAI CEO Sam Altman wrote on a post on X, “no thank you but we will buy twitter for $9.74 billion if you want.” Musk then replied to the OpenAI chief on X calling him a “swindler.” 

Steel stocks surge on Trump’s tariffs 
Steel and aluminum stocks surged Monday after U.S. President Donald Trump said he will impose 25% duties on all imports of the metals into the U.S. The aluminum tariff would add nearly 30 cents per pound to prices, not including transportation and other costs, according to JPMorgan. The bank expects domestic production of aluminum to increase as a result of the tariffs.

Trump to pause enforcement of Foreign Corrupt Practices Act
Trump is set to sign an executive order directing the Department of Justice to pause enforcing a nearly half-century-old law that prohibits American companies and foreign firms from bribing officials of foreign governments to obtain or retain business. The pause in criminal prosecutions will be implemented to avoid putting U.S. businesses at an economic disadvantage to foreign competitors.

Markets shrug off tariff fears
U.S. stocks rose on Monday, powered by major tech names and as traders looked past the latest U.S. tariff threat from President Donald Trump. The Dow Jones Industrial Average added 0.38%, led by a 4.8% gain in McDonald’s. The S&P 500 gained 0.67%, and the Nasdaq Composite climbed 0.98%. European stocks closed at a record high, with the pan-European Stoxx 600 up 0.58% at a record high of 545.92 points and with all sectors in the green.

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Traders lower rate cut expectations
Investors are lowering their expectations even further for interest rate cuts out of the Fed this year, as they grow more concerned about tariffs and the effect they could have on inflation. Economists have warned that a wide-scale trade war could significantly raise prices, and consumers appear to be worried as well. 

What the end of the penny means for the economy, your piggy bank, and the way America prices items

President Donald Trump has ordered the Treasury to stop minting new pennies, which could have an impact on prices, cash consumers, and those coins still under your couch cushions.

Experts predict a mild inflationary impact, as more prices are rounded to the nearest five cents. People at the bottom of the economic ladder will probably feel any penny pinch the most, as they are either unbanked or unable to access debit or credit cards or a digital wallet. 

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