In his inauguration speech, President Donald Trump reignited America’s space ambitions with a bold declaration: a mission to Mars.

Promising to plant the Stars and Stripes on the Red Planet, Trump’s vision to invigorate the US space industry and redefine the nation’s role as a leader in extraterrestrial exploration sent share prices of companies like Rocket Lab USA, Intuitive Machines, and Redwire soaring on Wednesday.

Rocket Lab USA was up by more than 28% at 10:34 am, Intuitive Machines was higher by 18.79%, and Redwire was up by 28.5%.

“Above all, my message to Americans today is that it is time for us to once again act with courage, vigor, and the vitality of history’s greatest civilization,” said Trump in a speech from the Capitol.

We will pursue our manifest destiny into the stars, launching American astronauts to plant the Stars and Stripes on the planet Mars.

Potential options for Trump to fulfill his Mars ambition

Trump has a range of options to achieve his Mars mission, including NASA’s Artemis program or a stronger reliance on private enterprises.

According to sources cited by Reuters, NASA’s Artemis program, which was initially focused on returning humans to the moon, will now target Mars as a key milestone.

The program comes with a hefty price tag though, estimated at $100 billion and this traditional government-led approach, while ambitious, faces scrutiny over cost and timeline.

Alternatively, Trump could lean into NASA’s growing partnerships with private space companies.

Firms like SpaceX have already demonstrated success in providing cost-effective solutions for space exploration.

The space giant owned by Elon Musk is poised to play a central role in America’s Mars ambitions.

The company’s valuation has skyrocketed to $350 billion, making it the world’s most valuable private enterprise.

While everyday investors can’t buy SpaceX shares directly, indirect exposure is available through investment trusts like the Scottish Mortgage Investment Trust and Baillie Gifford US Growth Trust, which count SpaceX as a top holding.

According to McKinsey, the global space economy will be worth a massive $1.8trn by 2035, up from $630bn in 2023.

Invezz takes a look at the prospects of the space stocks that were soaring on Tuesday:

Rocket Lab USA (RKLB)

Rocket Lab, known for its specialization in small satellite launches, is gaining traction among investors with its share price up by a whopping 518% in the last year.

Though it is a relatively new entrant to public markets via a SPAC, the company is actively broadening its capabilities, including plans for larger satellite launches and expanding into complementary areas like satellite manufacturing and component production.

Its ultimate aim is to offer an end-to-end solution—designing satellites, facilitating their launch, and providing ongoing monitoring and maintenance in orbit.

Though the space sector comes with inherent risks, Rocket Lab shows promise as a strong contender for investors seeking exposure to the space economy within a diversified portfolio.

Despite being a young and loss-making company, its rapid revenue growth—forecasted at 77% year-over-year to $434 million in 2024—positions it as a potential leader in the sector.

Intuitive Machines (LUNR)

Intuitive Machines has emerged as a standout player in lunar exploration with its stock surging by a massive 698% in the last year.

In February 2024, the company became the first private enterprise to land a spacecraft on the Moon, securing a $4.8 billion NASA contract for a Moon-to-Earth communication system.

The stock carries risks as a loss-making business but the company’s anticipated revenue growth—525% from 2023 to 2026—suggests substantial upside potential.

Redwire (RDW)

As a supplier of advanced space components, Redwire has positioned itself as a key player in the commercial space ecosystem with its share price soaring by 588% in the last year.

It reported a 9.6% revenue increase in the third quarter of 2024, reaching $68.6 million.

The company also revealed strategic growth initiatives, including the acquisition of Harith Systems, anticipated to boost both revenue and capabilities in national security missions.

The full-year revenue forecast was reaffirmed at $310 million, indicating a 27% growth rate.

Analysts say despite operating with a moderate level of debt, Redwire has demonstrated significant market traction.

They anticipate sales growth in the current year, which could further fuel the stock’s upward trajectory.

Additionally, the company is expected to turn profitable this year, potentially marking a pivotal moment for Redwire’s financial health. 

ETFs for diversified exposure to space investment

For investors hesitant to bet on individual companies, space-focused ETFs offer diversified exposure to the burgeoning industry.

Popular options include Procure Space (UFO)- a leading space-focused ETF, ARK Space Exploration and Innovation (ARKX), known for its innovative tech focus, and SPDR S&P Kensho Final Frontiers (ROKT) which targets frontier space technologies.

These ETFs provide a balanced approach, allowing investors to capture the growth potential of the space sector while mitigating the risks of betting on a single firm.

Challenges on the horizon

Despite the excitement surrounding Trump’s Mars vision, significant challenges remain.

Critics warn that elements of the Trump agenda, including potential tariffs and immigration restrictions, could disrupt industries critical to the space economy, such as construction and manufacturing.

Moreover, the commercial space sector itself is fraught with risks.

Young companies like Rocket Lab and Intuitive Machines, while promising, remain unproven in the long term.

Space exploration involves high costs, technological challenges, and the possibility of failure, making it a risky bet for investors.

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Canada’s inflation rate fell to 1.8% in December, a surprising drop.

This decrease is largely due to a sales tax break introduced mid-month, which reduced the cost of goods like alcohol, restaurant meals, and children’s clothing.

Most analysts had expected a slight dip to around 1.9%, so this drop reinforces the positive trend in the economy.

Monthly, the consumer price index (CPI) fell by 0.4%, reflecting the impact of the sales tax relief.

This is the first time in months that inflation hasn’t been linked to increased consumer spending.

For example, the price of alcohol in stores dropped 1.3% in December, after rising 1.9% in November.

Restaurant food prices also fell by 1.6%, following a 3.4% increase the month before.

The government plans to extend the sales tax break, which was originally set to end in mid-February.

This will provide consumers with an extra month of relief from high costs in January, rather than just 18 days in December.

The tax relief has reduced the cost of about 10% of the items in the CPI basket, helping ease the financial strain on households.

The steady decline in prices, which has remained at or below the Bank of Canada’s 2% target since August, has allowed the bank to lower its key policy rate by 175 basis points, bringing it to 3.25%.

A further drop in inflation in December could lead the central bank to cut rates again next week. However, Bank of Canada Governor Tiff Macklem mentioned last month that future rate cuts would be gradual.

The central bank’s preferred core inflation measures, CPI-median and CPI-trim, also saw a slight decrease.

The bank already lowered its rate by 175 basis points to 3.25%, and analysts expect a 25 basis point reduction at the next meeting on January 29.

While the Canadian dollar dropped 0.90% against the US dollar, experts remain cautious due to mixed financial signals in the market.

Economists like Andrew Grantham from CIBC Capital Markets suggest that inflation is influenced by both long-term and temporary factors.

As Canada faces ongoing economic challenges, balancing fiscal policy, inflation, and consumer sentiment will be key to the country’s growth.

The government’s sales tax relief will help consumers, but maintaining a stable economy will require solid policy and effective management amid global uncertainties.

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Just two years ago, Pakistan was on the brink of economic collapse. Inflation soared to 38%, foreign reserves dwindled to cover just two weeks of essential imports, and GDP growth stagnated at 0.2%.

The country narrowly avoided default with a $7 billion IMF bailout that came with stringent conditions, including tax reforms and subsidy cuts.

Now, in a remarkable turnaround, Pakistan has not only stabilized its economy but is charting a course for sustainable growth through bold reforms and ambitious partnerships.

What can other developing nations learn from Pakistan’s transformation?

How did Pakistan manage to recover?

In 2024, Pakistan launched “Uraan Pakistan,” an ambitious economic transformation plan.

The initiative aimed for export-led growth of 6% GDP by 2028, focusing on sectors like agriculture, energy, IT, textiles, and pharmaceuticals.

Furthermore, the government took some measures to stabilize the nation’s economy.

Tightening fiscal policies, curbing inflation through monetary interventions, and modernizing tax collection were the most effective ones.

The results were immediate.

By early 2025, inflation had dropped to 4.1%, foreign exchange reserves had improved to cover over two months of imports, and goods exports grew by 7.1%.

The IT sector became a standout performer, expanding by 28% year-on-year.

Foreign direct investment (FDI) also surged by 20% in the first half of the fiscal year, indicating renewed confidence in Pakistan’s economic prospects.

The reform-oriented budget introduced in mid-2024 further strengthened recovery efforts.

By targeting under-taxed sectors like agriculture, real estate, and trade, Pakistan aimed to raise Rs13 trillion in revenue, a 40% increase from the previous year.

Modernizing the Federal Board of Revenue (FBR) played a crucial role in streamlining tax administration and enhancing compliance.

A $20 billion partnership with the World Bank

Pakistan’s recovery efforts received a significant boost through a $20 billion, ten-year funding package from the World Bank.

This “Country Partnership Framework” (CPF), the largest in Pakistan’s history, will target critical areas for sustainable development.

The main focus areas will be improving education, expanding access to clean energy, addressing child malnutrition, and building climate resilience.

The World Bank’s focus is not just on funding but also on attracting private investment.

By prioritizing sectors such as energy, digital infrastructure, and agriculture, the initiative seeks to stimulate long-term economic growth.

This aligns with Pakistan’s goal of creating a resilient, self-reliant economy.

The government’s collaboration with the World Bank also integrates sustainability into its broader development framework.

This effort contributes to global goals, such as the United Nations Sustainable Development Goals (SDGs), while addressing pressing local challenges like poverty alleviation and clean energy adoption.

Potential risks remaining

Despite its progress, Pakistan’s path to economic recovery is far from smooth.

Structural inefficiencies in tax collection remain a significant issue.

The country’s tax-to-GDP ratio lags behind other developing nations, and external debt servicing consumes nearly half of annual revenues.

Reforms to state-owned enterprises (SOEs) have been slow, and the energy sector continues to drain public resources.

Political instability is another persistent challenge. Large-scale protests, particularly following the arrest of former Prime Minister Imran Khan, have created uncertainty for investors.

This instability has historically hampered Pakistan’s ability to attract long-term foreign capital.

Moreover, while the government has taken steps to modernize its economy, not everyone is convinced yet.

The World Bank has warned that Pakistan’s inconsistent track record on reforms could delay the realization of new investments.

Building trust and demonstrating sustained progress will be key to overcoming these challenges.

Why Pakistan could be an emerging investment opportunity

Despite the obstacles, Pakistan is emerging as a promising destination for investment.

The country’s focus on renewable energy, IT, and export-driven industries positions it as a competitive player in South Asia.

The success of initiatives like the Roshan Digital Account, which attracted $9 billion in inflows, highlights the growing confidence of overseas Pakistanis in the country’s financial systems.

Special Economic Zones (SEZs) under the China-Pakistan Economic Corridor (CPEC) offer unique opportunities for businesses.

These zones, combined with public-private partnerships, have already drawn interest from global firms like Samsung, Aramco, and BYD. Pakistan’s improving sovereign credit ratings—upgraded by all three major agencies in 2024—further enhance its appeal.

Pakistan’s IT sector, which grew by 28% in 2024, is ripe for venture capital and tech innovation.

The agricultural sector, historically underutilized, could benefit from modernization and technology-driven efficiency.

Renewable energy, supported by World Bank funding, presents opportunities as Pakistan transitions to a cleaner energy future.

The country’s youthful workforce and abundant natural resources add to its potential. With over 60% of the population under 30, Pakistan has a demographic edge that few countries can match.

What’s next for the nation

Pakistan’s recovery offers valuable lessons for other developing nations. It shows that even in the face of near collapse, bold reforms and strategic partnerships can pave the way for economic revival.

However, sustaining this momentum will require consistent policies, political stability, and a commitment to addressing structural challenges.

As Pakistan takes its next steps, the focus will likely be on ensuring long-term resilience.

Whether through attracting foreign investment, modernizing its economy, or addressing climate challenges, the country is positioning itself as an emerging hub for innovation and growth in South Asia.

The coming years will determine whether this transformation is a fleeting success or a sustained breakthrough.

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US President Donald Trump escalated his trade rhetoric on Tuesday, promising tariffs against the European Union (EU) and reiterating his intention to impose a 10% duty on Chinese imports.

These threats come just a day after his inauguration. On Tuesday, he also announced implementing 25% tariffs on Canada and Mexico unless those nations take steps to combat illegal migration and fentanyl trafficking.

Trump during his election campaign pledged sweeping tariffs against several nations, including levies of 60% on Chinese products.

Why Trump wants tariffs on EU and China

Trump cited the ongoing crisis of fentanyl trafficking as a key justification for new trade measures.

He accused China of facilitating the flow of fentanyl precursors into the US via Canada and Mexico, which has contributed to a devastating opioid epidemic.

“The European Union is very, very bad to us,” Trump said during remarks at the White House, emphasising the need to address the EU’s trade surplus with the US.

He added, “So they’re going to be in for tariffs. It’s the only way … you’re going to get fairness.”

White House trade adviser Peter Navarro defended the administration’s approach in an interview with CNBC.

He highlighted the human toll of fentanyl overdoses, which claim approximately 300 American lives daily, as the driving force behind the tariff threats.

“The reason why [Trump’s] considering 25, 25 and 10 [percent tariffs on Canada, Mexico, and China] is because of the human cost,” Navarro explained.

Trump also signed a broad trade memorandum on Monday, ordering federal agencies to complete a detailed review of persistent US trade deficits, unfair trade practices, and currency manipulation.

The memo sets an April 1 deadline for recommendations on remedies, which could include a “global supplemental tariff” and revisions to the de minimis duty-free exemption for low-value imports often linked to illicit goods.

Reaction to Trump’s tariff threats

Canada and Mexico responded cautiously to Trump’s threats.

Mexican President Claudia Sheinbaum stressed her nation’s sovereignty and independence in addressing U.S. demands. “We will respond step by step,” Sheinbaum said, adding that the U.S.-Mexico-Canada Agreement (USMCA) is not up for renegotiation until 2026.

Canadian Prime Minister Justin Trudeau has pledged to respond firmly to potential U.S. tariffs, stating, “If the [US] president decides to move forward with tariffs, Canada will respond, and all options are on the table.”

Reports suggest Ottawa is preparing counter-tariffs valued at billions of dollars in retaliation.

Chinese Vice Premier Ding Xuexiang cautioned against the consequences of a trade war, emphasising that “there are no winners” in such conflicts.

Speaking at the World Economic Forum in Davos, Switzerland, Ding stated, “Protectionism leads nowhere. A trade war has no winners,” according to an official English translation.

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Donald Trump has returned to the White House under a cloud of controversy after launching a multibillion-dollar cryptocurrency venture involving personal meme coins, $TRUMP and $MELANIA.

Speaking to reporters on Tuesday, President Donald Trump briefly addressed the TRUMP memecoin, which debuted on January 17, just days before his inauguration.

“I don’t know much about it other than I launched it,” Trump remarked. “I heard it was very successful. I haven’t checked.”

The move has some pro-crypto takers who see the development as a game-changer for the industry.

“The fact that a president is doing this brings some sort of legitimacy to the space, and I think just means that the industry is moving ahead in a way it hasn’t for the last 10 years,” said Paul Howard, senior director at crypto market-maker Wincent

However, ethics officials and presidential experts have largely condemned the move, citing conflicts of interest that could damage public trust in the presidency.

“There are shameful and major conflicts of interest with respect to his family business benefiting from his cryptocurrency policies,” said James Thurber, the founder and former director of the Center for Congressional and Presidential Studies.

Trump “does not seem to worry about the public interest with respect to cryptocurrency”, added Thurber.

“He seems to be driven by profit and wanting to be a major part of the billionaire class in the US.”

The coins debuted just days before Trump’s inauguration, with $TRUMP launched on Friday and $MELANIA following on Sunday.

$TRUMP a setup to help the Prez profit from crypto: ethics experts

Walter Shaub, former director of the US Office of Government Ethics, criticized Trump’s actions as a fundamental threat to ethical governance.

“America voted for corruption, and Trump is wasting no time delivering it,” said Walter Shaub, the former director of the US Office of Government Ethics, who served under former presidents Barack Obama and Trump.

“What was once a government ethics program, made partly of laws and partly of norms, is a smoldering crater,” he said.

Much of the concern stems from the intertwined interests of Trump’s administration and his business ventures.

CIC Digital LLC, an affiliate of the Trump Organization, and Fight Fight Fight LLC, co-owned by CIC Digital, collectively hold 80% of the tokens, which means that Trump-linked businesses could have gained $8 billion worth of crypto over the weekend.

Similarly, $MELANIA is offered by MKT World LLC, a firm Melania Trump incorporated in 2021.

Critics argue this setup allows the Trumps to profit from industries they simultaneously regulate, with potential national security implications.

The Securities and Exchange Commission (SEC) on Tuesday already took its first step towards reducing regulatory barriers for the cryptocurrency industry by launching a “crypto task force” to create a clear and comprehensive regulatory framework for crypto assets.

Legal fallout looms for TRUMP meme coin?

Legal experts foresee lawsuits on the horizon.

Preston Byrne, a cryptocurrency-focused attorney, predicted a 90% chance of legal action within two weeks, citing the likelihood of financial losses and regulatory scrutiny.

Despite their initial market boom, with the TRUMP memecoin hitting a market cap of $13 billion during its peak over the weekend, both tokens have been quite volatile ever since.

TRUMP’s market cap has fallen to approximately $8 billion, with the token currently trading around $42.

Additionally, watchdog groups like the Project on Government Oversight raised alarms over the lack of oversight in Trump’s crypto ventures.

“Besides being a blatant financial conflict of interest, this deepens Trump’s engagement in a sector with significant national security risks,” said Danielle Brian, the group’s executive director.

Nic Carter, a prominent crypto investor, highlighted another danger: foreign influence. “Personal meme coins open the door for foreign actors, including sanctioned individuals, to gain leverage over US leaders,” he said.

Democratic lawmakers, including Representative Maxine Waters, have called for greater transparency and accountability.

“Anyone globally, even individuals sanctioned by the US, can now trade and profit off of $TRUMP through unregulated platforms,” Waters warned.

Meme coins: fad or financial risk?

While meme coins like $TRUMP and $MELANIA are marketed as fun, non-investment assets, their extreme volatility and speculative nature worry critics.

Carol Alexander, a finance professor at the University of Sussex, likened the coins to fan tokens that rise and fall with public sentiment.

However, even fans acknowledge the risks.

Both tokens lost value during Trump’s inaugural events, though their combined valuation remained above $9 billion.

Such dramatic fluctuations underscore the precarious nature of meme coins as financial assets.

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