Tesla’s vehicle sales in Europe plummeted by 49% in April 2025, marking the fourth consecutive month of decline.
Despite an overall 27.8% rise in battery-electric vehicle sales, Tesla struggled to maintain its foothold in the region.
The drop in sales has been attributed to increasing competition from Chinese automakers, a shift in consumer preferences towards hybrid vehicles, and growing backlash against CEO Elon Musk’s political affiliations.
Tesla’s market share in Europe nearly halved, falling from 1.3% to 0.7%. The company’s aging lineup, particularly the Model Y, has failed to attract new buyers, while rivals such as BYD have overtaken Tesla in European EV sales for the first time.
Additionally, European carmakers are cutting costs and adapting to U.S. tariffs on auto imports, further intensifying competition. Chinese EV manufacturers are also cutting EV prices.
While Tesla faces challenges in Europe, the broader EV market continues to expand, driven by government incentives and stricter emission targets.
However, unless Tesla refreshes its lineup and rebuilds consumer trust, its dominance in the European market may continue to erode.
The company’s future remains uncertain as it navigates political controversies and shifting market dynamics
April 2025 marked a watershed moment in the European electric vehicle (EV) market as BYD outsold Tesla for the first time ever.
According to JATO Dynamics, BYD registered 7,231 battery-electric vehicles, narrowly surpassing Tesla’s 7,165 registrations.
This shift comes despite EU-imposed tariffs on Chinese-made EVs, which were expected to hinder BYD’s growth. However, the company’s aggressive expansion strategy and diversified lineup – including plug-in hybrids – helped it navigate trade barriers and maintain momentum.
Tesla, on the other hand, has faced declining sales, with its European registrations dropping 49% year-over-year. Production delays, protests against CEO Elon Musk, and consumer hesitation over new Model Y trims have contributed to the slump.
BYD’s success signals a changing landscape in Europe’s EV market. With its Hungarian production plant set to open soon, the company is poised for further growth.
Presumably now, Tesla must reassess its strategy to regain dominance in a market it once ruled.
As competition intensifies, European consumers will benefit from greater EV choices, potentially driving further innovation in the industry
Bitcoin has once again shattered records, reaching a new all-time high of $111,544 during early trading hours on 22nd May 2025
The world’s largest cryptocurrency has surged nearly 50% since April, fueled by growing substantial institutional interest and macroeconomic shifts.
The rally follows a period of volatility earlier in the year, when Bitcoin dipped below $75,000 amid concerns over U.S. trade policies and global economic uncertainty.
However, renewed investor confidence, coupled with ETF inflows and regulatory optimism, has propelled Bitcoin past its previous peak of $109,800 set just a day earlier.
Analysts attribute the surge to weak demand for government bonds, prompting investors to seek alternative assets.
Additionally, corporate treasury allocations into Bitcoin have increased, with public companies now holding 15% of all Bitcoin in circulation.
With Bitcoin’s momentum showing no signs of slowing, experts predict the next psychological milestone could be $120,000.
Bitcoin one-day chart 22nd May 2025
Bitcoin one-day chart 22nd May 2025
As institutional adoption continues to rise, Bitcoin’s role as a hedge against inflation and economic instability is becoming more pronounced.
Will Bitcoin maintain its upward trajectory, or is a correction on the horizon?
A 50% climb in around a month is a substantial increase – it has room to give… and it most likely will.
Palantir Technologies has officially joined the ranks of the top 10 most valuable U.S. tech companies, marking a significant milestone in its growth trajectory.
The data analytics and artificial intelligence firm saw its stock surge 8%, pushing its market valuation to $281 billion, surpassing Salesforce.
Founded in 2003 by Peter Thiel and CEO Alex Karp, Palantir has long been known for its government contracts and defense-related software solutions.
Its recent success is largely attributed to a booming government business, which grew 45% last quarter, including a $178 million contract with the U.S. Army.
Despite its impressive market cap, Palantir remains a relatively small player in terms of revenue compared to its peers. Investors are paying a premium for its stock, which currently trades at 520 times trailing earnings, far exceeding industry averages.
Analysts have raised concerns about its valuation, questioning whether its rapid rise is sustainable in the long term.
Palantir’s ascent reflects the growing influence of AI-driven data analytics in both commercial and governmental sectors.
As it continues to expand, the company faces the challenge of proving its financial fundamentals can support its lofty valuation.
As global trade tensions escalate, many investors and analysts are questioning whether markets are too complacent about the long-term effects of tariffs on corporate earnings.
While some argue that businesses have adapted to protectionist policies, others warn that the S&P 500’s earnings growth could face significant headwinds.
Tariffs: A hidden threat to profit margins
Tariffs increase costs for companies reliant on imported goods and materials. Businesses must either absorb these costs, pass them on to consumers, or find alternative suppliers – each option presenting challenges.
According to Goldman Sachs, an additional 5% tariff could reduce S&P 500 earnings by 1-2%.
A 100% tariff would equate to around 10-20% reduction in the S&P 500 – and that’s correction territory.
Retailers and manufacturers are particularly vulnerable
Companies like Best Buy, Walmart, and Target rely on imports, and higher tariffs could suppress profit margins or lead to higher consumer prices, potentially dampening demand.
Market sentiment vs. economic reality
Despite concerns, Wall Street has remained relatively optimistic. A recent 90-day tariff pause between the U.S. and China has boosted investor confidence, leading firms like Goldman Sachs and Yardeni Research to raise their S&P 500 targets.
This optimism may be short-lived if tariffs resume or escalate
Sector-specific risks
Certain industries are more exposed than others
Technology: Supply chain disruptions and higher costs for components could reduce profit margins.
Consumer Discretionary: Higher prices on imported goods could weaken consumer spending.
Industrials: Increased costs for raw materials could slow growth and investment.
The bigger picture: long-term economic impact
Beyond immediate earnings concerns, tariffs could stifle innovation, reduce global competitiveness, and slow economic growth.
Citi analysts estimate that aggressive tariffs could cut S&P 500 earnings growth by 2-3%.
A false sense of security?
While markets have bounced back from initial tariff shocks, the long-term effects remain uncertain.
Investors should closely monitor trade policies, sector-specific risks, and corporate earnings reports to assess whether the S&P 500’s growth trajectory is truly secure – or dangerously fragile.
Time will tell – but the S&P 500 is vulnerable to pressure right now!
Trump Secures Over $1.4 Trillion in Landmark Middle East Trade Agreements
President Donald Trump’s recent visit to the Middle East has resulted in a wave of economic agreements totaling over $1.4 trillion, marking one of the largest trade expansions between the region and the United States.
With a focus on investment, defence, and technology, Trump’s approach has emphasised strengthening economic ties rather than engaging in broader geopolitical discussions.
Qatar: aviation and defence take centre stage
One of the most eye-catching deals came from Qatar, where Qatar Airways finalised a $96 billion agreement to purchase 210 Boeing jets – the largest Boeing order in history.
This commitment not only bolsters Qatar’s aviation industry but also solidifies Boeing’s future as a leader in global aerospace manufacturing.
Additionally, Qatar has pledged $243.5 billion toward investments in quantum technology and defence systems, reinforcing the country’s push toward technological advancement.
Defence agreements also played a role, with Qatar signing a $1 billion deal for cutting-edge drone defence technology and a $2 billion contract for advanced remotely piloted aircraft.
These acquisitions align with the country’s long-term strategic vision of modernising its military capabilities.
Saudi Arabia: the biggest beneficiary
Saudi Arabia emerged as the biggest beneficiary of Trump’s visit, securing $600 billion in investment commitments across multiple sectors.
The kingdom allocated $142 billion toward military equipment and services, ensuring continued collaboration between U.S. defence contractors and Saudi leadership.
This agreement spans air defence systems, next-generation fighter jets, and cybersecurity infrastructure, strengthening Saudi Arabia’s military.
Beyond defence, Saudi Arabia also inked deals in AI infrastructure, energy projects, and technology investments, positioning itself as a hub for digital transformation.
By incorporating AI-driven solutions into its economy, the kingdom aims to enhance productivity and accelerate its shift toward a diversified financial landscape.
United Arab Emirates: AI
United Arab Emirates secured $200 billion in deals, featuring a 10-square-mile AI campus in Abu Dhabi and a $14.5 billion aircraft investment by Etihad Airways
Strategic impact
Trump’s visit signifies a shift in U.S. foreign policy, focusing heavily on economic partnerships rather than traditional diplomatic negotiations.
By securing these agreements, the administration aims to strengthen American industries, bolster employment, and ensure a steady flow of investment into the U.S. economy.
While critics may argue that the deals lack a geopolitical dimension, the sheer scale of $1.4 trillion in transactions underscores Trump’s intent to foster long-term financial alliances.
The coming months will determine whether these agreements yield sustainable benefits or spark concerns over economic dependencies.
Donald Trump’s Middle East tour has reportedly resulted in over $1.4 trillion in investment pledges. His deals span multiple sectors, including defence, aviation, artificial intelligence, and energy.
Deal summary
Saudi Arabia committed $600 billion in investments, including a $142 billion defence partnership and AI infrastructure deals.
Qatar signed $243 billion in agreements, including a $96 billion Boeing aircraft purchase.
United Arab Emirates secured $200 billion in deals, featuring a 10-square-mile AI campus in Abu Dhabi and a $14.5 billion aircraft investment by Etihad Airways.
Trump’s tour has been framed as a push for foreign investment to boost U.S. manufacturing while Gulf states aim to accelerate AI development and diversify their economies
In its first sales forecast, Nintendo said it expects to sell 15 million Switch 2 units in the fiscal year ending March 2026.
The new console is due to go on sale in the U.S. June 2025.
Revenue and profit plunged in the fourth quarter, the Japanese video game company said, although this was largely expected as Nintendo fans await the Switch 2 launch.
The Switch 2 will start at $449.99 in the U.S. and has improved features compared with its predecessor.
Saudi Arabia is making bold moves in artificial intelligence with a major acquisition from Nvidia.
The tech giant will be sending more than 18,000 of its latest GB300 Blackwell AI chips to Saudi-based company Humain, in a deal that marks a significant step toward the nation’s ambitions to become a global AI powerhouse.
The announcement was made by Nvidia CEO Jensen Huang during the Saudi-U.S. Investment Forum in Riyadh, as part of a White House-led trip that included President Donald Trump and other top CEOs.
Humain, backed by Saudi Arabia’s Public Investment Fund, plans to use the chips to develop large-scale AI models and establish cutting-edge data centers.
The chips will be deployed in a 500-megawatt facility, making it one of the largest AI computing projects in the region. Nvidia’s Blackwell AI chips are among the most advanced in the industry, used in training sophisticated AI models and powering data-intensive applications.
Saudi Arabia’s investment in AI technology aligns with its long-term vision of transforming its economy beyond traditional industries. With plans to expand its data infrastructure and deploy several hundred thousand Nvidia GPUs in the future, the country is positioning itself as a major AI hub in the Middle East.
As AI continues to shape global industries, Saudi Arabia’s investment signals a broader shift in how nations are competing for dominance in the AI revolution.
Nvidia’s involvement underscores the strategic importance of AI chips, not just in business, but in international relations as well.
The U.S. stock market surged as investors cheered a breakthrough in trade negotiations between Washington and Beijing.
The rollback of tariffs, announced as part of a new trade agreement, sent the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite soaring.
The deal, which slashes ‘reciprocal’ tariffs on both sides, is seen as a major de-escalation in the ongoing trade war that has rattled global markets for years.
Wall Street’s Reaction
Markets responded with enthusiasm as the Dow Jones Industrial Average jumped over 1,000 points, while the S&P 500 climbed more than 2.5%, and the Nasdaq surged by nearly 3%.
Investors had been wary of prolonged trade tensions, which had weighed heavily on corporate earnings and economic growth.
The tariff rollback signals a potential thaw in relations, boosting confidence across sectors, particularly in technology, retail, and manufacturing.
Tariff rollback
Under the agreement, U.S. tariffs on Chinese imports will be reduced from 145% to 30%, while China’s tariffs on American goods will drop from 125% to 10%. The reductions will be in effect for 90 days, allowing both nations to continue negotiations on a broader trade framework.
Treasury Secretary Scott Bessent emphasised that neither side wants a complete decoupling, and the rollback is intended to restore trade flows disrupted by years of economic brinkmanship.
China’s perspective: A strategic victory?
While the U.S. markets celebrated, China views the deal as a significant win. Beijing has sought relief from the steep tariffs imposed by Washington, which had strained its export-driven economy.
The agreement not only reduces financial pressure on Chinese manufacturers but also positions China as a key player in shaping future trade policies.
Some analysts argue that Beijing successfully leveraged its economic resilience to push Washington toward concessions, reinforcing its global influence.
Looking ahead
Despite the optimism, uncertainties remain. The 90-day window for negotiations suggests that further trade disputes could arise if talks stall. But will the U.S. allow that after the stock market turmoil Trump’s tariffs originally created?
Additionally, Federal Reserve Chair Jerome Powell cautioned that while sentiment has improved, the economic impact of previous tariffs has yet to fully materialise. Investors will be watching closely for signs of sustained progress, as any setbacks could trigger renewed volatility.
For now, Wall Street is basking in the relief of a tariff truce, with hopes that this momentum will lead to a more stable and predictable trade environment.
Whether this marks the beginning of a lasting resolution or just a temporary reprieve remains to be seen.
It is most likely now a platform for the U.S. to benefit from generally lower tariffs in the future.
There will again be cheap goods on U.S. shelves in time for Christmas.
In a surprising breakthrough, the United States and China have agreed to suspend most tariffs on each other’s goods for 90 days, marking a significant step toward easing trade tensions between the world’s two largest economies.
Following high-stakes negotiations in Geneva, representatives from both nations announced that reciprocal tariffs would be slashed from 125% to 10%, significantly lowering trade barriers.
However, the U.S. will continue imposing 20% tariffs on Chinese imports related to fentanyl, meaning total tariffs on Chinese goods will settle at 30%.
The agreement signals a temporary thaw in what has been a long-standing economic standoff between Washington and Beijing. U.S. Treasury Secretary Scott Bessent, who played a leading role in the discussions, described the talks as ‘very productive’, crediting the location for fostering an atmosphere of cooperation.
While this move could provide immediate relief for businesses and consumers impacted by trade restrictions, analysts caution that the 90-day suspension may not translate into a long-term solution.
Some experts speculate that ongoing trade negotiations could lead to further reductions, while others warn that unresolved tensions could lead to reinstated tariffs if agreements stall.
For now, the deal presents an opportunity for renewed dialogue, leaving global markets optimistic about future relations between the two economic powerhouses.
How the next three months unfold will determine whether this development is a stepping stone to broader reforms or simply a temporary reprieve in a complex trade dispute.
I expect Trump, having instigated the ‘tariff’ upheaval, will happily hang on to this ‘deal’ with China to avoid any further stock market turmoil.
What really just happened? The markets seem to be rewarding a situation that was artificially created and then ‘fixed’.
Aren’t we simply back where we were before the Trump tariff onslaught or is this really a ‘promise’ for better ‘deals’ to come?
The U.S. economy is showing cracks as multiple indicators suggest that growth may be slowing.
With GDP shrinking by 0.3% in the first quarter of 2025, concerns about an impending recession have intensified among analysts and investors.
A key driver of this economic downturn is the ongoing trade uncertainty, which has prompted businesses to stock up on imports before new tariffs take effect.
While some experts argue this is a temporary setback, others caution that prolonged trade conflicts could stifle growth for months to come.
Resilient labour market
Despite these concerns, the labour market has remained resilient, with unemployment hovering at 4.2%. However, signs of strain are emerging – job openings have declined, and layoffs have picked up in certain industries.
If hiring slows further, consumer spending could weaken, adding pressure to the economy.
Inflation remains another point of concern. Rising costs of goods and services have strained household budgets, leading to reduced discretionary spending.
The Federal Reserve, which has maintained high interest rates, is carefully assessing whether policy adjustments are needed to prevent a sharper downturn.
On Wall Street, sentiment is divided. Goldman Sachs estimates a 45% probability of a recession, while J P Morgan suggests the likelihood could be as high as 60%.
Some economists believe strategic trade deals and government intervention could avert a full-blown recession, but the margin for error is slim.
Does it really matter if there is to be a recession – it will likely be short lived. It will not please the U.S. President Donald Trump.
While uncertainty clouds the future, one thing is clear – the U.S. economy is at a pivotal moment. Whether policymakers can stabilise growth or if the nation is headed towards a deeper slowdown will depend on the next few quarters and the outcome of Trump’s tariffs.
Tudor Investment Corporation
Paul Tudor Jones, the founder of Tudor Investment Corporation, recently shared his outlook on the U.S. economy, and his perspective isn’t exactly optimistic.
He believes that U.S. stocks are likely to hit new lows before the end of the year, even if President Trump dials back tariffs on Chinese imports.
Jones pointed out that the combination of high tariffs and the Federal Reserve’s reluctance to cut interest rates is putting significant pressure on the stock market.
He reportedly noted that even if Trump reduced tariffs to 50% or 40%, it would still amount to one of the largest tax increases since the 1960s, potentially slowing economic growth.
The billionaire investor also warned that unless the Fed adopts a more dovish stance and aggressively cuts rates, the market is likely to continue its downward trajectory.
He reportedly emphasised that the current economic conditions – marked by trade uncertainty and tight monetary policy – are not favourable for a stock market recovery.
Interestingly, Jones also expressed concerns about artificial intelligence, stating that AI poses an imminent threat to humanity within our lifetime.
The index closed 1.47% higher on the final day of the streak on Friday 2nd May 2025, reflecting investor optimism amid shifting global economic conditions.
This historic run comes as China and the U.S. signal the potential of renewed trade discussions, easing concerns over tariffs and supply chain disruptions.
Additionally, a strong U.S. jobs report has bolstered confidence, with employment figures exceeding expectations. The rally has been broad-based, with technology, financial, and industrial stocks leading the charge.
Despite the impressive streak, analysts warn of potential volatility ahead. While the S&P 500 has demonstrated resilience, market corrections often follow extended periods of gains.
S&P 500 all-time chart as of 5th May 2025 – 9-day consecutive run record
S&P 500 all-time chart as of 5th May 2025 – 9-day consecutive run record
Investors are now watching for signs of consolidation or further momentum and that is down to Trump’s tariffs and the Fed’s interest rate decision.
The FTSE 100 has made history, recording 15 consecutive days of gains—its longest winning streak since its inception in 1984.
The index closed at 8,596.35 points, marking a 1.17% rise on the final day of the streak.
This remarkable run comes amid the potential of easing trade tensions between the U.S. and China, with signs that tariff negotiations may commence.
Investors have responded positively, driving up stock prices across multiple sectors. Financial stocks, including Barclays and HSBC, have surged following strong earnings reports, while industrial and mining stocks – such as Rolls-Royce and Rio Tinto – have rebounded.
Despite the impressive streak, analysts caution that uncertainty remains. The FTSE 100 has yet to reclaim its record high from March 2025, and concerns over global trade policies could limit further gains.
However, the index has still outperformed expectations, rising 4.9% over six months and 5.1% over the past year.
FTSE 100 one-month chart
FTSE 100 one-month chart
As investors celebrate this milestone, the question remains: can the FTSE 100 sustain its momentum, or is a market correction on the horizon?
Either way, this winning streak has cemented its place in financial history.
Dividend investing is a strategy that allows investors to generate consistent income while benefiting from long-term capital appreciation.
By purchasing shares in companies that regularly distribute a portion of their profits to shareholders, investors can create a reliable stream of passive income.
This approach is particularly attractive for those seeking financial stability, retirees looking for steady cash flow, or anyone aiming to reinvest dividends for compounded growth.
One of the key advantages of dividend investing is its ability to provide returns even during market downturns.
While stock prices fluctuate, dividend payments remain relatively stable, offering a cushion against volatility. Additionally, companies that consistently pay dividends often have strong financials, making them more resilient in economic downturns.
For investors looking to maximize their returns, selecting high-yield dividend stocks is crucial.
Here are five strong dividend-paying stocks to consider
Aviva Plc – With a dividend yield of around 7%, Aviva remains a solid choice for income-focused investors.
Legal & General – Offering around an impressive 8% yield, this financial services company is known for its consistent payouts.
Phoenix Group – A standout in the insurance sector, Phoenix Group boasts around a 10% dividend yield.
M&G – With around a 10% yield, M&G provides strong returns for dividend investors.
BP Plc – A reliable energy sector pick, BP offers a 6% dividend yield.
Dividend investing is a powerful tool for wealth creation, offering both stability and growth potential.
By carefully selecting high-yield stocks, investors can build a portfolio that generates passive income while benefiting from long-term market appreciation.
Dividend investing is a powerful strategy for building wealth over time by generating passive income.
By holding shares in companies that consistently pay dividends, investors can benefit from regular payouts while also potentially enjoying capital appreciation.
Why Dividend Investing Works
Steady Income Stream – Dividend-paying stocks provide regular income, which can be reinvested to compound wealth over time.
Portfolio Stability – Companies that pay dividends are often well-established, helping to reduce volatility.
Inflation Protection – Some dividends grow over time, helping investors maintain purchasing power.
Tax Advantages – Depending on tax laws, dividends may be taxed at a lower rate than ordinary income.
Choosing Dividend Stocks
Investors typically look for companies with…
Consistent dividend payments
Low payout ratios (ensuring sustainability)
Strong financials and earnings growth
Dividend yield that balances risk and return
The Long-Term Benefit
By reinvesting dividends, investors can take advantage of compounding returns, where earnings generate additional earnings. Over decades, where earnings generate additional earnings.
Over decades, this strategy can build substantial wealth.
Remember to carefully do your own research. The dividend stocks listed here are NOT recommendations.
HSBC, Europe’s largest lender, has posted better-than-expected results for the first quarter of 2025, demonstrating resilience despite global economic challenges.
The bank reported a pre-tax profit of $9.48 billion, surpassing analyst estimates of $7.83 billion. Revenue for the quarter stood at $17.65 billion, reflecting a 15% decline compared to the previous year.
HSBC’s pre-tax profit for Q1 2025 was $9.48 billion, which represents a 25% decline compared to the same quarter last year when it reported $12.65 billion.
However, compared to the previous quarter, pre-tax profit surged by nearly 317%.
A key highlight of HSBC’s earnings announcement was its $3 billion share buyback program, which the bank intends to complete before its interim results later this year.
This move signals confidence in its financial position and commitment to returning value to shareholders.
Despite the strong performance, HSBC warned of heightened macroeconomic uncertainty, citing protectionist trade policies as a factor negatively impacting consumer and business sentiment.
However, the bank remains optimistic about its restructuring efforts, which are expected to drive cost savings and operational efficiency.
HSBC’s wealth business and corporate banking segments were standout performers, contributing significantly to its earnings growth.
CEO Georges Elhedery emphasised the bank’s strategic discipline and ability to navigate market volatility.
Global markets have shown resilience in the past three days, rebounding from recent downturns as technology stocks rally amid cautious optimism.
The boost in investor confidence follows strong earnings reports from major tech firms, highlighting their ability to weather economic uncertainty.
However, lingering concerns about international trade tensions raise questions about how sustainable this recovery truly is.
Technology stocks have led the charge, with companies in artificial intelligence, cloud computing, and semiconductor production posting better-than-expected growth figures.
Investors have flocked to these sectors, hoping that innovation will drive forward profitability even amid broader market volatility.
This renewed enthusiasm has helped offset concerns over ongoing global trade disputes, which have led to tariffs and economic slowdowns in key sectors such as manufacturing and consumer goods.
Yet, beneath this recovery, risks persist. Geopolitical uncertainties, including unresolved trade negotiations between major economies, continue to cast a shadow over financial markets.
Inflationary pressures, alongside tightening monetary policies by central banks, also threaten to cool investor enthusiasm. Analysts warn that without concrete progress on trade agreements; the rebound may be short-lived.
As investors weigh the competing forces of technological optimism and trade anxieties, the market remains in a delicate balance.
The question remains: Is this recovery a sign of renewed growth, or merely a temporary respite before further economic turbulence?
With the next wave of financial reports and policy decisions on the horizon, market makers will be closely monitoring whether the tech sector’s momentum can sustain broader economic confidence – or whether trade headwinds will ultimately pull markets back into uncertainty again.
Tech gains ground again
Stocks jumped Thursday 24th April 2024 thanks to strong gains in Mega Cap tech names.
The S&P 500 ended up 2.03%, while the tech-heavy Nasdaq Composite added 2.74%.
The S&P 500 index was able to exit correction territory, ending at least 10% above its recent low set in the wake of President Donald Trump’s 2nd April 2025 ‘liberation day’ tariffs.
For the S&P 500 to maintain its rapid exit from correction territory – it now has to witness Trump’s tariff walk-back and the ‘cooling’ of a potential Fed fight.
Trump seems to be the first to have ‘blinked’ on his self-imposed tariffs suggesting the tariffs are too high and will not go any higher – thy are high enough!
China has reportedly said there are no ‘ongoing’ trade talks?
The Dow Jones Industrial Average lagged the other two indexes but still added 1.23% and retook the 40,000 for the first time since 15th April 2025.
Japan’s Nikkei 225 up almost 2% and leading gains.
Alphabet shares climb after better than expected results
Alphabet reported stronger-than-expected first-quarter growth on Thursday 24th April 2025.
Alphabet’s search and advertising units are still showing strong growth despite AI competition heating up, according to its first-quarter earnings report.
The company’s overall revenue grew 12% year-on-year, higher than the 10% Wall Street expected.
Shares rose more than 5% in after-hours trading.
However, Alphabet reportedly indicated to expect ‘slight headwind’ to ads business this year.
Intel also posts results beat, but warns of tariff impact
Intel reported first-quarter results on 24th April 2025 that beat analysts’ estimates but also reportedly issued disappointing guidance.
Second-quarter revenue will come in below estimates due to elevated uncertainty driven by the macro environment, the company warned.
Intel was reported saying that President Donald Trump’s tariffs and retaliation from other countries had increased the likelihood of a U.S. recession.
Big tech gains drive markets but the uncertainty surrounding Trump’s tariffs remain.
Norway’s sovereign wealth fund, the largest in the world, has reported a first-quarter loss of $40 billion, largely due to a downturn in the technology sector.
The fund, managed by Norges Bank Investment Management (NBIM), saw its value drop to 18.53 trillion kroner by the end of March 2025, with 70% of its investments in equities, which recorded a 1.6% loss.
CEO Nicolai Tangen attributed the decline to significant market fluctuations, particularly in tech stocks, which have faced recent sell-offs. The fund holds major stakes in Meta, Alphabet, Amazon, Nvidia, Tesla, and Microsoft, all of which have experienced volatility.
Additionally, currency movements played a role, with the Norwegian krone strengthening against key currencies, contributing to an 879 billion kroner (around $84.5 billion) decrease in the fund’s value.
Despite the losses, NBIM maintains a diversified portfolio, with fixed-income investments returning 1.6% and unlisted real estate yielding 2.4% gains.
British fintech giant Revolut has achieved a major financial milestone, reporting £1.1 billion ($1.5 billion) in net profit for 2024, marking a 149% increase from the previous year.
The company’s revenue also saw significant growth, surging 72% to £3.1 billion, driven by a combination of subscription services, wealth management, and interest income.
One of the standout contributors to this success was Revolut’s wealth unit, which includes stock trading, boasting a 298% jump in revenue. The firm’s loan book also expanded 86% to £979 million, further strengthening its financial position.
This growth comes at a pivotal moment for Revolut, as it prepares to launch its UK bank later this year after securing a banking licence in 2024.
Once fully operational, the bank will enable Revolut to offer traditional financial services, including loans, overdrafts, and mortgages, enhancing its appeal as a primary banking option.
Revolut’s UK CEO has emphasised that securing full banking authorisation is a crucial step toward global expansion and an eventual IPO.
As the company continues to evolve, it faces stiff competition from established players such as Monzo and Starling, both of whom secured banking licences years earlier.
Revolut’s remarkable financial performance signals its ambitions to become a dominant force in banking – a fintech powerhouse redefining modern finance.
About Revolut
Revolut is a British fintech company that provides digital banking services, including currency exchange, stock trading, cryptocurrency transactions, and personal finance management.
The name ‘Revolut’ suggests a revolution in financial services, aiming to simplify and modernise banking through technology.
Founded in 2015 by Nikolay Storonsky and Vlad Yatsenko, Revolut started as a platform offering fee-free foreign exchange and has since expanded into a global financial super app.
It operates in multiple countries and serves millions of customers, offering both free and subscription-based banking services.
Tesla has been making headlines with a series of major developments, from financial setbacks to strategic shifts by CEO Elon Musk.
The electric vehicle giant recently reported a 20% drop in automotive revenue, a significant decline that has raised concerns among investors.
Meanwhile, Musk has announced that he will bespending much less time on the Department of Government Efficiency (DOGE), a move that could signal a renewed focus on Tesla.
Additionally, Tesla’s ambitious Optimus humanoid robot project has hit a roadblock due to China’s restrictions on rare earth materials, further complicating the company’s future plans.
Tesla’s Revenue Decline
Tesla’s first-quarter earnings report revealed a 20% drop in automotive revenue, with total revenue sliding 9% year-on-year.
The company attributed the decline to factory retooling for a refreshed Model Y, lower average selling prices, and increased sales incentives.
Net income plummeted 71%, reflecting the broader challenges Tesla faces in a competitive EV market.
Tesla 3 month share price chart 2025
The company has refrained from promising growth this year, stating that it will revisit its 2025 guidance in its Q2 update.
Musk’s Shift Away from DOGE
Elon Musk’s involvement in the Department of Government Efficiency (DOGE) has been a controversial topic, with critics arguing that his political commitments have distracted him from Tesla’s operations.
However, Musk has now confirmed that his time allocation to DOGE will drop significantly, allowing him to focus more on Tesla.
He stated that he will likely spend only one or two days per week on government matters, a shift that could reassure investors concerned about his divided attention.
Reports of his popularity in recent U.S. polls suggest he is out of favour with the American people and is now low in people’s opinion around the world because of his contentious DOGE role.
Optimus Robots and China’s Rare Earth Restrictions
Tesla’s Optimus humanoid robots, which Musk has touted as a revolutionary step toward automation, have encountered a major obstacle due to China’s export restrictions on rare earth materials.
The restrictions, imposed as part of an escalating trade war, have disrupted Tesla’s supply chain, particularly affecting the rare earth magnets used in Optimus actuators.
Musk has expressed hope that Tesla will secure an export licence, but the uncertainty surrounding the restrictions could delay production.
Looking Ahead
Tesla is navigating a challenging landscape, balancing financial setbacks, Musk’s shifting priorities, and geopolitical hurdles.
While the company remains a leader in EV innovation, its ability to adapt to market pressures and geopolitical challenges will be crucial in determining its future success.
Investors and industry watchers will be closely monitoring Tesla’s next moves as it works to regain momentum.
Gold extended a blistering rally to rise above $3,500 an ounce for the first time, as concern that President Donald Trump could fire Federal Reserve Chair Jerome Powell triggered a flight from U.S. stocks, bonds and the dollar.
This public rebuke of JeromePowell comes on top of geopolitical risks, trade tensions and concerns over economic stability – all enflamed by Trump’s tariff onslaught.
Gold hits new all-time high!
Gold has reached an unprecedented milestone, soaring to $3,500 per ounce for the first time, as political and economic uncertainty surrounding President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell shakes global markets.
Investors have flocked to gold as a safe-haven asset, seeking refuge from the volatility triggered by Trump’s public demands for immediate interest rate cuts and threats to dismiss Powell.
Gold’s rapid ascent has been supported by a combination of trade tensions, tariff uncertainties, and geopolitical risks. Its ascent this year suggests that markets have less confidence in the U.S. than ever.
Dollar plummets as gold hits new all-time high!
The U.S. dollar has plummeted to its lowest level since 2023, further fueling gold’s meteoric rise.
Concerns over the Federal Reserve’s independence have eroded confidence in U.S. assets, prompting a flight to bullion-backed exchange-traded funds and central-bank purchases.
Market analysts are divided on whether gold’s rally will sustain its momentum. While some predict further gains, citing the metal’s enduring appeal as a hedge against economic instability, others caution that the recent surge may lead to a temporary pullback.
Regardless, gold’s historic climb underscores its status as a reliable store of value in times of turmoil, solidifying its position as the ultimate safe-haven asset.
Gold has seen a significant rise in 2025
On 1st January 2025, gold was priced at $2,623 per ounce. As of 21st April, 2025, gold has surged to $3,373.70 per ounce.
This marks an increase of $750.70 per ounce, or approximately 29% in just a few months.
One-year gold chart
Gold one-year chart
In April 2024, gold was priced at approximately $2,284 per ounce. As of April 2025, gold has surged to $3,373.70 per ounce. This marks an increase of $1,089.70 per ounce, or roughly 48% in just one year.
The stock market experienced another sharp Trump tariff related downturn Wednesday 16th April 2025, driven by a tech-heavy sell-off continuing to rattle investors.
The Nasdaq Composite plunged by 3%, while the Dow Jones Industrial Average shed nearly 700 points, marking one of the most significant declines in recent months.
Concerns over tariffs and inflation were amplified by Federal Reserve Chair Jerome Powell’s remarks about the tariff uncertainty, which highlighted the challenging economic landscape.
Tech stocks bore the brunt of the sell-off, with semiconductor companies like Nvidia and AMD leading the decline. Nvidia’s announcement of a $5.5 billion quarterly charge related to export restrictions on its chips to China added to the sector’s woes.
Powell’s comments on tariffs exacerbated market fears, as he warned of potential stagflation—a scenario where inflation rises while economic growth slows.
This sentiment was echoed across trading floors, with investors grappling with the implications of ongoing trade tensions and restrictive policies.
As the market inches closer to bear territory, the focus remains on navigating these turbulent times.
The sell-off underscores the fragility of investor confidence and the pivotal role of technology in shaping market dynamics
On Monday 14th April 2025, the stock market experienced a notable mini rally, driven by the tech sector’s resurgence following a weekend announcement of a temporary tariff pause.
Major tech companies like Apple, Nvidia, and Amazon saw significant gains, with Apple shares surging by 7.5%. The Nasdaq Composite, heavily weighted with tech stocks, climbed 1.9%, while the S&P 500 rose 1.5%.
This rally marked a stark contrast to the volatility of the previous week, where tariff uncertainties had sent shockwaves through the market.
The tariff pause, although temporary and restricted to 20%, helped to alleviate immediate concerns about rising costs for consumers and businesses.
Importers were spared from choosing between absorbing higher expenses or passing them on to customers. This relief was particularly impactful for companies reliant on Chinese manufacturing, as the exemptions covered a wide range of tech products.
Market analysts noted that the rally was not just a reaction to the tariff news but also a reflection of the tech sector’s resilience.
Despite facing challenges earlier in the year, tech companies have continued to innovate and adapt, maintaining their position as a driving force in the U.S. and world economies.
However, the rally’s sustainability remains uncertain. The administration’s mixed messages about future tariffs have left investors cautious.
While Monday’s gains were encouraging, the broader market continues to grapple with the unpredictability of trade policies.
Is this a fair ‘take’ on the last weeks tariff turmoil?
President Trump’s tariffs have left a significant mark on global trade and financial markets, creating waves that continue to shape global economic dynamics.
The tariffs, initially aimed at reducing the U.S. trade deficit and protecting domestic industries, triggered a rollercoaster ride for stock markets and strained international relations.
Highs to lows
The Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 experienced sharp declines following the announcement of sweeping tariffs. At their lowest points, the Dow fell to 37226, the Nasdaq dropped to 15266, and the S&P 500 sank to 4956.
These figures marked significant losses, with trillions of dollars wiped off the market in just a few days.
The volatility was exacerbated by fears of a global trade war and the uncertainty surrounding the tariffs’ implementation.
Tariff turmoil and 90 day pause
In response to the market turmoil, President Trump announced a 90-day pause on most tariffs, providing temporary relief to investors and businesses. This decision led to a rebound in stock markets, with indices recovering some of their losses.
However, the relief was short-lived, as tensions with China escalated. While tariffs on many trading partners were paused, China’s tariff rate was increased to a staggering 125%.
This move further strained U.S.-China relations and added pressure on industries reliant on Chinese imports.
Tech garners favour
The tech sector, heavily dependent on global supply chains, was among the hardest hit. Tariffs on components like microchips and finished products such as smartphones and computers disrupted production and increased costs.
Companies faced challenges in maintaining profitability and passing on the increased costs to consumers. The eventual reduction and cancellation of some tariffs provided a lifeline to the tech industry, allowing businesses to stabilize operations and reduce prices.
However, the uncertainty surrounding trade policies continued to pose challenges for the sector.
Market turmoil?
Was this the ultimate in market ‘management’ as President Trump posted on his social media platform, Truth Social, that it was a ‘great time to buy’ just hours before announcing the 90-day tariff pause.?
This statement, made at 9:37 am., came shortly before the announcement, which caused stock markets to surge significantly. The timing of his post raised eyebrows and sparked discussions about potential insider trading concerns
China retaliates
China’s response to the tariffs was swift and retaliatory. Beijing imposed its own tariffs on U.S. imports, raising rates to 125%. This retaliation targeted key U.S. industries, including agriculture and technology, further escalating the trade conflict.
The Chinese yuan also hit its lowest level against the dollar since the global financial crisis. These measures highlighted the deepening economic rift between the world’s two largest economies.
The effects of President Trump’s tariffs underscore the complexities of modern trade policies. While intended to protect domestic industries, the tariffs created significant economic disruptions, both domestically and globally.
The stock market volatility, strained international relations, and challenges faced by industries like technology illustrate the far-reaching consequences of such policies.
As the world continues to navigate the aftermath of these tariffs, the importance of balanced and strategic trade policies becomes increasingly evident.
Markets moved up, unsurprisingly, after Trump announced the tech tariff adjustment
Over the weekend, President Trump reportedly made several statements about tariffs on tech products, creating some confusion.
Initially, it was announced that smartphones, computers, and other electronics would be temporarily excluded from the steep tariffs.
However, Trump later clarified that these products were not entirely exempt but had been moved to a different ‘tariff bucket.’ He reportedly stated that they would still face a 20% tariff as part of broader measures targeting Chinese goods.
Trump also hinted at upcoming tariffs on semiconductors and the entire electronics supply chain, emphasising the need for the U.S. to produce more of these components domestically.
President Trump reportedly described this as part of a ‘National Security Tariff Investigation’. These announcements have left tech companies and investors uncertain about the long-term implications for the industry.
Tariffs are like a spider’s web cast over the world with the spider, crawling around collecting from its prey.
Trump’s tariffs continue to ‘infect’ world trade, and they will be here for a while yet.
Do you believe in the ‘collective unconscious’, a universal mind to which all humanity is connected?
In the context of the financial world, the stock market is based on unwavering fundamental mathematics… numbers. However, is often driven by sentiment, instinct, hopes and fears.
They both function in a similar manner.
In other words, it is essentially a sentiment tracker.
This was very evident in the stock market movement during ‘normal’ trading hours immediately preceding U.S. President Donald Trump’s tariff plan unveiling, contrasted with extended trading.
Investors had time to digest the sheer weight of the heavy tariffs on countries across the globe – we then witnessed an instant stock reversal after almost ‘normal’ trading before.
The point
Trump hinted at leniency on tariffs days before revealing his true intentions. However, that sense of mercy was absent, as the tariffs were sweeping and severe.
To describe Trump’s plan as a seismic shift in the economic and financial order might be understatement.
It will take time for tariff price changes to filter into the economy, but the stock market, reflecting the collective unconscious of investors, registered this shock instantly – just minutes after a stock climb.
The stock market is no stranger to volatility, and recent events have left investors grappling with uncertainty.
However, for those who embrace a contrarian mindset, the current wave of pessimism might just be the golden opportunity they’ve been waiting for.
Historically, extreme market pessimism has often preceded significant rebounds. The contrarian philosophy – buying when others are selling – rests on the belief that markets tend to overreact to negative news.
This overreaction creates opportunities for savvy investors to capitalise on undervalued assets.
Recent market turbulence, fueled by concerns over global trade policies and economic slowdowns, has pushed sentiment to new lows. Yet, history suggests that such moments of despair often mark the beginning of recovery.
For instance, during similar periods of heightened pessimism, indices like the S&P 500 have shown remarkable gains in subsequent months.
The last time stock investors were so pessimistic was in October 2023, and then the S&P 500 rose 19% over the next three months
While risks remain, including the potential for prolonged economic challenges, the contrarian approach offers a glimmer of hope. By focusing on long-term fundamentals and resisting the urge to follow the herd, investors may find themselves well-positioned to benefit from the market’s eventual rebound.
In the end, the key lies in patience and perspective. As the saying goes, ‘Fortune favours the bold’ – and in the world of investing, boldness often means going against the grain.
Some of the strangest locations affected by Trump’s tariffs include an uninhabited island near Antarctica?
U.S. President Donald Trump’s ‘reciprocal tariffs‘ hit major trading partners around the world, but some tiny islands and remote locations were also unlikely targets.
These ‘odd’ choices have cast doubt on the validity of the calculation used to fire off these tariff salvos.
President Donald Trump set a baseline tariff rate of 10% across the board, with a raft of levies affecting over 180 countries.
