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
Despite the heavy tariffs imposed by former U.S. President Donald Trump, China’s industrial sector has demonstrated remarkable resilience.
In April 2025, industrial profits rose by 3%, marking the second consecutive month of growth.
This increase was largely driven by Beijing’s strategic policy measures, which cushioned the impact of the tariffs and supported private enterprises.
In the first four months of 2025 China’s industrial profits rose 1.4%, according to data released on 27th May 2025.
Trump’s administration had levied tariffs as high as 145% on Chinese imports, prompting Beijing to retaliate with its own trade restrictions.
However, rather than crippling China’s manufacturing sector, these tariffs led to a shift in trade dynamics. Chinese exporters successfully found alternative markets, particularly in Southeast Asia and Europe, mitigating the losses from reduced U.S. trade.
It isn’t unusual for businesses to weather and absorb such tariffs but more usually, the consumer bears the brunt and pays some, if not all, of the increased costs.
High-tech manufacturing and equipment production saw notable gains, with profits in these sectors rising by 9% in the first four months of the year.
Additionally, government subsidies for consumer electronics and appliances helped boost domestic demand, further stabilising industrial growth.
While state-owned enterprises reportedly faced challenges, private firms and foreign-invested businesses saw profits improve.
Analysts suggest that China’s ability to adapt to external shocks underscores the resilience of its industrial economy, even in the face of aggressive trade policies
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.
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.
U.S. President Donald Trump has definitely brought a lot of shock in the first 100 days of his presidency, smashing trade links, alliances, and even his own government, but it can hardly be said to have left anybody truly in ‘awe’.
Donald Trump’s first 100 days in office during his second term have been a whirlwind of activity, marked by bold moves and significant controversy.
His poll rating is the lowest of any President of recent times for the first 100 days. It currently sits at around 41% (a CNN poll result suggests).
How does it compare?
Harry S. Truman, hit a rock-bottom approval rating of 22% in 1952. Other presidents like Richard Nixon and George W. Bush also dipped below 25%. But these were during their terms and not in the first 100 days.
His administration has focused heavily on reshaping trade policies, imposing tariffs that have disrupted global markets and strained relationships with long-standing allies.
Despite his claims of progress, no major trade deals have been finalised, leaving many questioning the effectiveness of his approach.
Legal challenges
Domestically, Trump’s policies have faced significant legal challenges, with numerous lawsuits filed against his administration. His stance on immigration and energy has sparked heated debates, reflecting the polarising nature of his decisions.
Trump’s ‘drill-baby-drill’ mantra has not had the desire reaction – oil prices has fallen with U.S. oil below $65 a barrel.
The automotive industry, for instance, has grappled with regulatory uncertainty and additional costs due to his tariffs, prompting him to soften some measures in response to industry concerns.
Internationally, Trump’s actions have raised concerns about U.S. credibility and stability. His hostile stance toward traditional allies, such as Canada, the EU and NATO, has left multi-decade relationships in tatters.
Meanwhile, his administration’s handling of the ongoing war in Ukraine and trade negotiations with China has drawn criticism for its lack of tangible results.
Despite these challenges, Trump remains confident in his vision for America. He has claimed progress in tariff negotiations with India, suggesting that a trade deal may be on the horizon.
No deals… yet
There has not been a single trade deal concluded with Trump’s administration – despite him reportedly claiming to have done ‘200 deals’ with only 195 countries in the world.
China is still striking a defiant tone on trade, and the war in Ukraine rages on. The president has also been forced to walk back on his “reciprocal tariffs.”
However, his administration’s approach has left many wondering whether his first 100 days will be remembered for their impact or their controversy.
As the dust settles, the world watches closely to see how Trump’s policies will shape the future of the United States and its role on the global stage.
Trump may have wanted his first 100 days to be historic, and they were – but for all the wrong reasons.
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.
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 was smashed for a second day Friday 4th April 2025 after China retaliated with new tariffs on U.S. goods, sparking fears President Donald Trump has ignited a global trade war that will lead to a global recession.
Stock market damage
The Dow Jones Industrial Average dropped 2,231.07 points, or 5.5%, to 38,314.86 on Friday 4th April 2025, the biggest decline since June 2020 during the Covid-19 pandemic.
This follows a 1,679-point decline on Thursday 3rd April 2025 and marks the first time ever that it has shed more than 1,500 points on consecutive days.
The S&P 500 collapsed 5.97% to 5,074.08, the biggest decline since March 2020. The benchmark shed 4.84% on Thursday 3rd April 2025 and is now down more than 17% off its recent high.
The Nasdaq Composite, home to many well-known tech companies that sell to China and manufacture there as well, dropped 5.8%, to 15,587.79.
This follows a nearly 6% drop on Thursday 3rd April 2025 and takes the index down by 22% from its December 2024 record – pushing it into a bear market.
The selling was wide ranging with only 14 members of the S&P 500 higher on the day. Major market indexes closed at their lows of the session.
China’s commerce ministry said the country will impose a 34% levy on all U.S. products, disappointing investors who had hoped countries would negotiate with Trump before retaliating.
Technology stocks led the massive rout Friday
Apple shares slumped 7%, bringing its loss for the week to 13%.
Nvidia dropped 7% during the session.
Tesla fell 10%.
All three companies have large exposure to China and are among the hardest hit from Beijing’s retaliatory tariffs.
The bull market is dead, and it was destroyed by self-inflicted wounds!
OpenAI on Monday 31st March 2025 announced it had closed its $40 billion funding round, the most ever raised by a private tech company.
The deal values OpenAI at $300 billion, including the new capital.
The round includes $30 billion from SoftBank and $10 billion from a syndicate of investors.
OpenAI is now more valuable than Chevron.
The generative AI market is projected to exceed $1 trillion in revenue within the next decade. Companies such as Google, Amazon, Anthropic, and Perplexity are rapidly unveiling new products and features as competition to develop ‘AI agents’ intensifies.
Gold has reached a historic milestone, breaking the $3,000 per ounce barrier for the first time in history
This remarkable surge reflects a confluence of global economic uncertainties, geopolitical tensions, and shifting investor sentiment.
The rally has been fueled by a variety of factors. Central banks worldwide have significantly increased their gold reserves, seeking a hedge against inflation and a safeguard from potential economic sanctions.
This trend gained momentum following the freezing of Russian central bank assets in 2022, which underscored the vulnerabilities of holding reserves in foreign currencies.
Additionally, escalating trade tensions and fears of a global recession have driven investors toward safe-haven assets like gold. The U.S. administration’s aggressive tariff policies have amplified market volatility, prompting a flight to stability.
Gold-backed exchange-traded funds (ETFs) have also seen substantial inflows, further bolstering demand.
The psychological significance of crossing the $3,000 mark cannot be understated. It signals a shift in market dynamics, with gold outperforming many traditional asset classes.
Analysts predict that, barring a dramatic change in economic conditions, the upward trajectory may continue, potentially reaching new highs in the coming months.
This milestone underscores gold’s enduring appeal as a store of value in turbulent times, cementing its status as a cornerstone of global financial markets.
While some experts predict gold could reach $3,500 by the third quarter of 2025, others are more optimistic about the $4,000 mark being attainable in the near future.
The UK economy faced an unexpected contraction of 0.1% in January, marking a surprising downturn following a 0.4% growth in December 2024
This decline, reported by the Office for National Statistics (ONS), has raised concerns about the nation’s economic trajectory, particularly as the government prioritizes boosting growth.
The contraction was primarily attributed to a slowdown in manufacturing, alongside weak performances in oil and gas extraction and construction.
The ONS noted that while the economy shrank in January 2025, the broader three-month period still showed modest growth of 0.2%. But never-the-less, it remains one of weak growth.
Interestingly, the services sector provided a glimmer of hope, driven by robust retail activity, especially in food stores, as consumers opted to eat and drink at home more frequently. This sector’s resilience partially offset the declines in other areas.
The timing of this economic dip is particularly significant, as it precedes the Chancellor’s Spring Statement, where even more government spending cuts are expected to be outlined.
Chancellor Rachel Reeves acknowledged the challenges and reportedly commented that the global economic landscape has shifted, and the UK is feeling the repercussions. She reiterated the government’s commitment to accelerating efforts to stimulate growth and reform public services.
However, the unexpected contraction has sparked criticism from opposition parties, who have labeled the government’s policies as ineffective in fostering sustainable economic growth.
The Shadow Chancellor reportedly described the government as a ‘growth killer,’ citing high taxes and restrictive employment legislation as barriers to business confidence and therefore growth.
As the UK navigates these economic headwinds, the focus will remain on the Chancellor’s upcoming measures and their potential to steer the economy back on track.
The January figures serve as a stark reminder of the fragile state of the UK economy and the challenges that lie ahead.
The Elon Musk-led Department of Government Efficiency claims to be streamlining the federal government’s spending
But it has so far sown confusion, with the Trump administration attempting to rehire employees it had previously fired.
DOGE presents a distorted reflection of the current state of the U.S. economy. U.S. President Trump has implemented a series of policies to try to stimulate effect, frequently modifying them mid-course, resulting in collateral damage within the country’s own borders.
U.S. markets have been on a downward trend and were significantly impacted on. Tesla shares have lost some 50% since Trump’s election. Consumers are also boycotting Tesla vehicles.
Tariffs, according to Trump, are meant to protect U.S. businesses and punish trade partners. But so far, it seems that the world’s biggest economy is the one suffering.
Dismal day in the markets
U.S. stocks experienced a rout Monday 10th March 2025 as fears of a recession gripped investors. The S&P 500 dropped 2.7%, the Dow Jones Industrial Average lost 2.08% and the Nasdaq Composite sank 4% in its worst session since September 2022.
The White House downplayed the market slump, saying it’s not as ‘meaningful’ as business activity (what does that mean exactly)?
Asia markets also retreated Tuesday 11th March 2025. Japan’s Nikkei 225 fell around 1% amid a weaker-than-expected showing for its fourth-quarter gross domestic product (GDP).
Tesla’s sell-off on Wall Street intensified on Monday, with shares of the electric vehicle maker plunging a whopping 15%, marking their worst trading day on the market since September 2020
On Friday, Tesla wrapped up a seventh straight week of losses, its longest losing streak since debuting on the Nasdaq in 2010. The stock has fallen every week since CEO Elon Musk went to Washington, D.C., to take on a major role in the Trump ‘2’ White House.
Since peaking at $479.86 on 17th December 2024 Tesla shares have lost more than 50% of their value, wiping out upward of $800 billion in market cap. Monday 10th March 2025 marked the stock’s seventh worst day on record.
Tesla 3 month share chart as of close 10th March 2025 – down a total of 50% and 15% in one day
Tesla 3 month share chart as of close 10th March 2025 – down a total of 50% and 15% in one day
Tesla led a broader slump in U.S. equities, with the Nasdaq tumbling almost 4%, its steepest decline since 2022.
During an interview on Monday 10th March 2025, Musk was reportedly asked how he manages to run his businesses while fulfilling his role in the Trump White House. He reportedly said he’s doing so –‘with great difficulty’.
In addition to Tesla’s troubles, Musk’s social network X experienced several outages throughout the day on Monday 10th March 2025, and his company SpaceX is investigating two explosions in a row that occurred during test flights of its massive Starship rocket.
Elon Musk is also reported as saying that he expects to remain in the Trump administration for another year. He posted on X that ‘It will be fine long-term’, referencing Tesla’s steep stock price decline.
The cryptocurrency market faced a significant downturn following the announcement of President Donald Trump’s U.S. Bitcoin reserve plan
The initiative aimed to position the United States as a global digital asset leader fell short of market expectations, triggering a wave of selloffs.
Bitcoin, the flagship cryptocurrency, experienced a 3% drop, trading at $87,586.86 before dipping further to $84,688.13. Other major cryptocurrencies, including Ethereum, XRP, and Solana, also saw declines, with Cardano’s ADA token suffering a sharp 13% drop.
The market’s reaction underscores the gap between investor hopes and the plan’s immediate implications.
The executive order established a strategic bitcoin reserve funded exclusively by assets seized in criminal and civil proceedings. While this approach ensures no taxpayer burden, it disappointed investors who anticipated direct government purchases to bolster Bitcoin’s value.
White House Crypto and AI Czar David Sacks emphasised the reserve’s role as a ‘digital Fort Knox’, but the lack of immediate buy pressure dampened market sentiment.
The broader economic context also played a role. Weakness in equities and ongoing tariff concerns added to the uncertainty, compounding the market’s reaction.
Analysts noted that while the reserve plan is a step toward legitimising cryptocurrencies, its short-term impact on prices was underwhelming.
Despite the initial disappointment, the strategic reserve could have long-term benefits. By centralising and securing digital assets, the U.S. government aims to strengthen its position in the global financial system.
However, for now, the market remains volatile, reflecting the challenges of balancing innovation with investor expectations.
As the crypto landscape evolves, the success of such initiatives will depend on their ability to deliver tangible value to both the market and the broader economy.
Will the U.S. government create a strategic crypto reserve by directly buying the digital asset and holding it as a national reserve?
At this moment in time, only Trump has that ‘key’.
Global markets have been thrown into turmoil following the announcement of sweeping tariffs by U.S. President Donald Trump
U.S. tariffs, which include a 25% levy on imports from Canada and Mexico and a 10% increase on Chinese goods, have sparked fears of a global trade war. Retaliatory measures from Canada and China have only added to the uncertainty, sending shockwaves through financial markets worldwide.
The FTSE 100, London’s blue-chip index, fell by 1.3%, marking its steepest decline since October last year. Across the Atlantic, Wall Street saw significant losses, with the S&P 500 dropping 1.6% and the Dow Jones Industrial Average falling 1.7%. European markets were not spared, as Germany’s DAX and France’s CAC 40 plunged by 3.5% and 2.1%.
Investors are increasingly concerned about the long-term implications of these tariffs. The measures threaten to disrupt global supply chains, inflate costs, and dampen economic growth. Analysts warn that prolonged trade tensions could push the global economy closer to a recession.
The tariffs have also had a notable impact on currency markets. The U.S. dollar weakened against major currencies, with the pound rising to a six-week high of $1.27. Meanwhile, safe-haven assets like gold saw a surge in demand, with prices climbing above $2,900 per ounce.
Oil markets were not immune to the fallout, as Brent crude futures dropped to a three-month low of $70.65 per barrel. The decline reflects growing concerns over reduced demand amid escalating trade tensions.
As the world braces for further economic uncertainty, the focus now shifts to how global leaders will navigate these turbulent waters.
The stakes are high, and the path forward remains uncertain.
Trump’s tariffs have created fresh concern and new volatility in the markets forcing a stock market reversal.
The tariffs, which include a 25% duty on imports from Mexico and Canada, as well as a 10% levy on Chinese goods, have led to significant market volatility.
Investors remain cautious as they assess the long-term implications of these trade restrictions. The tariffs are expected to raise inflation in the U.S. and could potentially lead to a severe market correction.
It’s a complex situation with far-reaching consequences for global trade and the economy.
The S&P 500 retreated on Monday, extending February’s rout and turning red for the year after President Donald Trump’s confirmation of forthcoming tariffs.
The S&P 500 index fell to end at 5849, marking its worst day since December 2024 and bringing its year-to-date performance to a loss of about 0.5%.
The Dow Jones Industrial Average dropped 649 points to finish at 43191. The Nasdaq Composite slid to close at 18350, weighed down by Nvidia’s decline of more than 8%.
Stocks took a notable leg down in the afternoon following President Trump’s reiteration that 25% levies on imports from Mexico and Canada would go into effect on Tuesday 5th March 2025, dashing investors’ hopes of a last-minute deal to avert the full tariffs on the two U.S. allies.
All three indexes traded in positive territory earlier in the day, with the Dow rising nearly 200 points at session highs.
China retaliated with reciprocal tariffs of 15% on some U.S. goods due to take effect 10th. March 2025.
President Donald Trump has announced the creation of a ‘strategic crypto reserve’ that will include Bitcoin, Ethereum, XRP, Solana, and Cardano.
This move aims to position the United States as the ‘crypto capital of the world’ and has already led to significant price increases for these cryptocurrencies.
The announcement was made on Truth Social, where Trump emphasised the importance of elevating the crypto industry after what he described as years of corrupt attacks by the previous administration.
This is the first time Trump has specified his support for a crypto ‘reserve’ versus a ‘stockpile’.
Many crypto investors feel strongly that a crypto reserve should hold only Bitcoin, while some reject the idea of a reserve holding digital assets altogether.
Cryptocurrencies instantly rallied after President Donald Trump announced the creation of a strategic crypto reserve.
Crypto coins have since lost some of those initial gains.
Rolls-Royce’s share price surged by 15% following the announcement of its impressive full-year earnings and positive outlook.
The British aerospace giant reported a 57% increase in operating profit, reaching £2.46 billion for 2024. This exceeded analyst expectations and was driven by strong performance in its jet engine and power systems divisions.
In addition to the robust earnings, Rolls-Royce reinstated its dividend, proposing a 6 pence per share payout, and launched a £1 billion share buyback program.
The company also upgraded its mid-term guidance, projecting operating profit to rise to between £3.6 billion and £3.9 billion.
The market reacted positively to these developments, with Rolls-Royce’s stock hitting a new 52-week high.
Rolls-Royce one-year chart (as of 28th February 2025 09:50 GMT)
Rolls-Royce one-year chart (as of 28th February 2025 09:50 GMT)
The company’s CFO, Helen McCabe, highlighted the significant progress made in their multi-year transformation journey, emphasising the expanding earnings potential and improving balance sheet.
This week has seen a decline in Bitcoin with the digital asset hitting a 3-month low, reversing gains that followed the election of U.S. President Donald Trump.
Bitcoin was trading at about $78,700 in trading in Asia, down 5.5% on the day and about 25% lower than an all-time high from December 2024.
Bitcoin 3-month chart as of 28th February 2025 (08:45 GMT)
Bitcoin 3-month chart as of 28th February 2025 (08:45 GMT)
Bitcoin slips
Bitcoin had enjoyed a surge in prices following Trump’s election victory in November 2024, with Trump having posed himself as a pro-crypto candidate during his campaign.
However, prices have slipped as investors turn-away from assets perceived to be too risky given the weakness in global equity markets and amid uncertainty surrounding the new President’s tariff policy and resolutions to the Russia-Ukraine and Israel-Gaza wars.
Investor sentiment was also soured by news that Bybit, a major cryptocurrency exchange, suffered a $1.5 billion hack in what’s estimated to be the largest crypto heist in history.
The Federal Reserve’s favourite recession indicator, the inverted yield curve, is flashing a danger sign once again.
This occurs when the U.S. yield on the 10-year Treasury note falls below that of the 3-month note. Historically, this has been a reliable predictor of economic downturns, with a strong track record over a 12-18-month timeframe.
The New York Fed closely monitors this indicator and provides monthly updates on the probability of a recession occurring within the next 12 months.
As of January 2025, the probability was just 23%, but this is expected to change significantly due to the recent inversion in the coming months.
The inversion suggests that investors are becoming more risk-averse and are anticipating a slowdown in economic activity.
While the yield curve inversion has a strong forecasting history, it is not perfect, and there is no certainty that growth will turn negative this time around
The escalating AI competition between the U.S. and China has taken a new turn with the emergence of DeepSeek, a Chinese AI startup that has introduced a low-cost AI model capable of rivaling the performance of OpenAI’s models.
This development has significant implications for data centres and the broader technology sector.
The rise of DeepSeek
DeepSeek’s recent breakthrough involves the development of two AI models, V3 and R1, which have been created at a fraction of the cost compared to their Western counterparts.
The total training cost for these models is estimated at around $6 million, significantly lower than the billions spent by major U.S. tech firms. This has challenged the prevailing assumption that developing large AI models requires massive financial investments and access to cutting-edge hardware.
Impact on data centres
The introduction of cost-effective AI models like those developed by DeepSeek could lead to a shift in how data centers operate.
Traditional AI models require substantial computational power and energy, leading to high operational costs for data centers. DeepSeek’s models, which are less energy-intensive, could reduce these costs and make AI technology more accessible to a wider range of businesses and organizations.
Technological advancements
DeepSeek’s success also highlights the potential for innovation in AI without relying on the most advanced hardware.
This could encourage other companies to explore alternative approaches to AI development, fostering a more diverse and competitive landscape. Additionally, the open-source nature of DeepSeek’s models promotes collaborative innovation, allowing developers worldwide to customise and improve upon these models2.
Competitive dynamics
The competition between DeepSeek and OpenAI underscores the broader U.S.-China rivalry in the AI space. While DeepSeek’s models pose a limited immediate threat to well-funded U.S. AI labs, they demonstrate China’s growing capabilities in AI innovation.
This competition could drive both countries to invest more in AI research and development, leading to faster technological advancements and more robust AI applications.
Broader implications
The rise of DeepSeek and similar Chinese and other AI startups could have far-reaching implications for the global technology sector.
As AI becomes increasingly integrated into various industries, the ability to develop and deploy AI models efficiently will be crucial.
Data centres will need to adapt to these changes, potentially investing in more energy-efficient infrastructure and exploring new ways to support AI workloads.
Where from here?
DeepSeek’s emergence as a significant player in the AI race highlights the dynamic nature of technological competition between the U.S. and China.
While the immediate impact on data centres and technology may be limited, the long-term implications could be profound.
As AI continues to evolve, the ability to innovate cost-effectively and collaborate across borders will be key to driving progress and maintaining competitiveness in the global technology landscape.
