Key Takeaways
- President Donald Trump has called for a one-year 10% cap on credit card interest rates, effective January 20, 2026, directly challenging the banking industry's significant revenue streams and igniting debate over consumer credit access.
- BHP (BHP) executives are warning of a "structural deficit" in copper supply by 2030, driven by burgeoning demand from AI data centers, electric vehicles, and renewable energy, necessitating a substantial 40% increase in global production capacity.
- In a shift from previous concerns, prominent Chinese figures in generative AI now suggest that China is unlikely to surpass the US in the artificial intelligence race anytime soon, citing US chip restrictions and divergent development strategies.
President Donald Trump has announced a demand for a one-year cap on credit card interest rates at 10%, set to take effect on January 20, 2026. This move, communicated via his Truth Social platform, aims to prevent the American public from being "ripped off" by credit card companies, which he claims have been charging rates as high as 20% to 30% or more. The banking industry, including major players like American Express (AXP), Capital One Financial (COF), JPMorgan (JPM), Citigroup (C), and Bank of America (BAC), did not immediately comment on the proposal.
While Trump did not detail how this cap would be enforced, the initiative targets a significant revenue source for lenders, which the Bank Policy Institute has previously warned could harm consumers' access to credit by making bank cards less viable. The call echoes prior bipartisan legislative efforts in Congress, with Senators Bernie Sanders and Josh Hawley, along with Representatives Alexandria Ocasio-Cortez and Anna Paulina Luna, having introduced similar proposals to cap interest rates. This action fulfills a campaign pledge from the 2024 election.
Meanwhile, the global commodities market is bracing for a significant copper shortage. Brandon Craig, President of BHP Americas (BHP), has issued a stark warning that the world faces a "structural deficit" in copper supply around 2030, potentially extending to 2035. This impending shortfall is primarily driven by escalating demand from AI data centers, electric vehicles, renewable energy infrastructure, and general manufacturing.
The mining industry will need to boost its production capacity by approximately 40%, equating to an additional 10 million tons of copper over the next decade, to meet the anticipated demand. Copper demand is projected to grow by up to 70% by 2050. The International Energy Agency (IEA) corroborates these concerns, forecasting a 30% deficit by 2035 and noting that AI data centers alone could consume between 250,000 and 550,000 metric tons annually by 2030, representing up to 2% of global demand. Supply-side challenges, including declining ore grades, limited new discoveries, and lengthy permitting processes, are exacerbating the issue. Copper prices have recently surged to record highs, with the London Metal Exchange seeing prices reach $11,952 per metric ton and UBS (UBS) forecasting a rise to $12,000/mt by Q1 2026 and $13,000/mt by the end of 2027.
In the rapidly evolving field of artificial intelligence, prominent Chinese figures in generative AI have expressed a tempered outlook, indicating they do not foresee China eclipsing the United States in the AI race anytime soon. This perspective comes despite earlier warnings from Nvidia (NVDA) CEO Jensen Huang in late 2025, who had suggested that US export restrictions could cause the US to lose ground to China.
However, other analyses from late 2024 highlight that China lags several years behind the US in generative AI, primarily due to US chip restrictions, high development costs, and governmental content censorship. Experts also point to fundamental differences in AI development strategies, with US companies often focused on achieving artificial general intelligence (AGI), while China prioritizes the practical application of AI in industrial production, manufacturing, and medicine to boost economic output. Chinese tech giants like Baidu (BIDU) and Tencent (TCEHY) have developed their own AI chatbots, but they are generally considered to be inferior to their American counterparts.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.