NEW YORK, May 1 (Reuters) - Hedge fund Third Point owns

a "meaningful" stake in U.S. Steel and expects a planned

takeover deal to move ahead, and also sees opportunities in the

credit markets as investors adjust to policies imposed by the

Trump administration.

Billionaire investor Daniel Loeb told investors in a letter

seen by Reuters that the firm believes U.S. Steel "will complete

a planned merger with Nippon Steel ( NISTF ) based on the industrial logic

of the combination."

The deal had been scuttled earlier in the year but President

Donald Trump last month ordered a new national security review,

raising hopes some kind of deal may still be worked out.