The Morning Edge: Trump Unveils "Gold Card" Visa Program

US President Donald Trump unveiled plans on Wednesday for a $5 million "gold card" visa program, positioning it as a dual solution to attract top global talent and chip away at the nation’s mounting debt. Set to launch in about two weeks, the initiative would replace the existing EB−5 visa, which requires a minimum investment of $800,000 for permanent residency. The move reflects Trump’s broader strategy to overhaul immigration policies while addressing economic challenges, though critics may question its accessibility and impact on middle-class Americans.

The proposed program mirrors "golden visa" schemes in countries like Greece, Malta, and the UAE, where wealthy individuals gain residency or citizenship in exchange for significant economic contributions. While such programmes have bolstered investment and economic growth in other nations, the US version could face scrutiny over its potential to exacerbate wealth inequality. As the global competition for high-net-worth individuals intensifies, Trump’s gold card initiative underscores the growing intersection of immigration policy and economic strategy, with implications for domestic and international markets.

Data
Sales of new US single-family homes fell more than expected in January, dropping 10.5% to a seasonally adjusted annual rate of 657,000 units, as high mortgage rates continued to deter potential buyers. The Commerce Department’s report, released Wednesday, also attributed the decline to severe winter weather and snowstorms that disrupted activity across much of the country. This follows recent data showing weaker retail sales and cooling job growth, signalling a broader slowdown in economic activity early in the first quarter. While December’s sales pace was revised higher to 734,000 units, the January slump underscores ongoing challenges in the housing market amid elevated borrowing costs and economic uncertainty.

Markets
Overnight
US stock indices ended mixed on Wednesday as fresh tariff threats and political developments weighed on sentiment. The House of Representatives narrowly passed President Trump’s $4.5 trillion tax-cut plan, sending it to the Senate. At the same time, Nvidia surged 3.7% in after-hours trading after beating quarterly revenue and earnings estimates. However, investor scepticism persists over US tech firms' massive investments in AI infrastructure amid slow returns and competition from breakthroughs by China’s DeepSeek, keeping markets cautious. 

US Treasury yields fell for the sixth straight session on Wednesday, pressured by renewed tariff uncertainties after President Donald Trump’s comments on potential duties against the European Union. The 10-year yield dropped 4.6 basis points to 4.252%, its lowest in over two months. The 2-year yield, which tracks Federal Reserve rate expectations, declined 2 basis points to 4.076%, leaving the 2-year to 10-year yield curve—a key economic indicator—positive at 17.4 basis points, reflecting cautious optimism amid ongoing trade and inflation concerns.

The US dollar edged higher on Wednesday, pulling further away from recent 11-week lows as investors weighed the economic outlook and potential tariff impacts following President Donald Trump’s latest comments. The greenback had stumbled on Tuesday after a sharp drop in consumer confidence added to concerns about the economy’s resilience and persistent inflation, pushing Treasury yields lower. The dollar index rose 0.21% to 106.46, while the euro fell 0.26% to $1.0486, reflecting cautious optimism amid ongoing economic and policy uncertainties.

Brent crude Oil prices fell to a two-month low on Wednesday, pressured by an unexpected rise in US crude stockpiles and growing optimism over a potential Ukraine-Russia peace deal. US crude settled 0.45% lower at $68.62 per barrel, reflecting concerns over weakening demand and easing geopolitical risks. The combination of oversupply and diplomatic progress weighed heavily on market sentiment.

 

 
Day’s Ledger
Economy

• US October-December 2nd GDP estimate 
• US January Advance Report on Core Durable Goods
• US Weekly Unemployment Insurance Claims Report

Companies

• Capital Infra Trust to consider dividend
• KSB Ltd to announce December quarter earnings
• Sanofi India to announce December quarter earnings
• Schaeffler India to announce December quarter earnings

Policy

• Finance Minister Sitharaman, Road Transport Minister Gadkari, Commerce Minister Goyal to speak at Business Standard Event
• European Central Bank to release accounts of its last monetary policy discussions
• US Federal Reserve Bank of Richmond Thomas Barkin speaks
• US Federal Reserve Governor Michelle Bowman speaks
• US President Donald Trump hosts UK Prime Minister Keir Starmer at the White House

Tickers

• ADANI GREEN ENERGY arm wins 1,250 MW pumped hydro storage project from Uttar Pradesh Power Corp
• AXIS BANK plans to sell NBFC business for up to $1 billion
• COFORGE board to consider stock split on March 4
• KPI GREEN signs MoU with Madhya Pradesh government to develop 1.8 GW renewable projects
• RAILTEL Corporation bags ₹1.11 billion signalling and telecom contract from South Central Railway
• TATA POWER signs MoU to develop 5,000 MW renewable projects in Assam with ₹300 bilion investment
• TATA STEEL infuses ₹107.27billion into T Steel Holdings for debt repayment, UK restructuring\
• ULTRATECH CEMENT to enter wires and cables segment, announces share swap ratio for acquisition of Kesoram Industries
• UTKARSH SMALL FINANCE BANK has approved raising funds up to ₹7.50 billion via QIP
• WIPRO commits $200 million to Wipro Ventures

Must Read

• NCLT asks RCAP lenders to complete all procedural issues by Mar 12
• EPFO likely to reduce interest rate for 2024-25 in Friday board meeting
• 90% Indians have no discretionary spending power: Blume Ventures Report
• Bharti Airtel in talks with Tata Group to combine DTH biz of Bharti Telemedia, Tata Play
• EU seeks duty sops on cars, wine and whiskey, says India ‘relatively closed’
• India must double renewable capacity additions to meet 2030 clean-energy targets, report says
• DeepSeek cuts off-peak pricing for developers by up to 75%
• Donald Trump threatens to impose 25% tariffs on EU goods
• Trump to End Chevron License in Venezuela in Blow to Maduro

Daily Mantra
Do the difficult things while they are easy, and do the great things while they are small. A journey of a thousand miles must begin with a single step.