Daily News Round Up
Monday, 19 May 2025
- Trade tensions eased, driving a market rally, but underlying economic concerns persist. A temporary truce in the U.S.-China trade war sparked a significant market rebound, with the Dow and S&P 500 posting weekly gains. However, the potential for renewed tariffs remains, as Treasury Secretary Bessent signaled readiness to impose levies if negotiations falter. The focus now shifts to upcoming economic data, including the U.S. purchasing managers’ index, to gauge the true impact of these trade dynamics on the global economy (WSJ).
- Concerns about U.S. fiscal health are escalating, highlighted by Moody’s downgrade. Moody’s downgraded the U.S. sovereign credit rating from Aaa to Aa1, citing rising debt and persistent deficits (FMP). This downgrade, following similar actions by S&P and Fitch, underscores the risks associated with the nation’s fiscal trajectory and could potentially raise borrowing costs, impacting both corporate and government financing needs. The downgrade’s impact on markets has been muted so far, but the long-term implications remain a key concern (WSJ).
- The AI sector continues to drive investment and innovation, particularly with Nvidia at the forefront. Nvidia is actively expanding its AI offerings through strategic investments, licensing deals (NVLink Fusion), and new hardware releases (Blackwell GPU series) (FMP). Furthermore, companies like Anthropic are securing substantial funding ($2.5 billion credit line) and seeing rapid revenue growth, demonstrating the continued momentum and investor appetite for AI-driven technologies. This activity contrasts with broader macroeconomic uncertainty (CNBC).
- Disappointing economic data signals slowing growth and rising consumer pessimism. The University of Michigan’s Consumer Sentiment Index fell to a near three-year low in May, reflecting concerns about inflation and financial pressures (Fox Business). Additionally, mixed Chinese economic data—exceeding industrial production but underperforming retail sales—adds to global growth concerns. These trends suggest potential headwinds for corporate earnings and may warrant a more cautious approach to cyclical sectors.
- Corporate earnings remain a focal point, with specific sectors facing unique challenges. Several companies released or are preparing to release earnings reports, with investors closely monitoring key performance indicators. Apple’s Services division is facing pressure from legal challenges and AI competition (FMP). Furthermore, concerns about AI-driven data center spending are impacting valuations for companies like GDS and VNET (FMP), while Novavax received conditional FDA approval for its COVID-19 vaccine (FMP).
What happened over the weekend?
Macro
Economic Growth: Kotok in his latest email to clients walks through an estimate of just how much tariffs will take a bite out of corporate earnings. (Market Watch)
Economic Growth: Mohamed El-Erian, the former chief executive of bond giant Pimco and Allianz’s chief economic adviser, said the era of U.S. exceptionalism isn’t conclusively over. (Market Watch)
Economic Growth: President Trump’s move to defuse an ugly trade war with China not only sparked a massive stock-market rally, but also drove down the chances of recession — for now. (Market Watch)
Economic Growth: Tariffs. Inflation. Economic chaos. (Forbes)
Inflation: DAX outlook hinges on Eurozone inflation and ECB policy signals; lower inflation may lift sentiment, while a spike could hit stocks. (FXEmpire)
Inflation: The University of Michigan’s Consumer Sentiment Index fell again in May after economists expected a modest increase. Consumer sentiment is at its lowest level in nearly three years. (Fox Business)
Inflation: Consumer gloom is not quite at historic levels — but it’s awfully close. Households are worried about inflation, about their own pressured finances as incomes and purchasing power weakens. (PYMNTS)
Inflation: Wall Street rallied this week, buoyed by renewed trade optimism, cooler inflation data, and strength in semiconductor stocks. (Schaeffers Research)
Interest Rates: Bigger US bank balance sheets did not translate to strong loan growth in the first quarter as the industry took a cautious approach to deploying fresh assets. Total assets on an aggregate basis for US commercial banks, savings banks, and savings and loan associations, excluding nondepository trusts and companies with a foreign banking organization charter, were $24.538 trillion as of March 31. (Seeking Alpha)
Interest Rates: Equities reacted jubilantly to Trump’s trade agreement with China. They should have paid closer attention to U.S. government yields. (Barrons)
International relations: Asian stocks declined sharply on Monday, triggered by Moody’s downgrade of the U.S. sovereign credit rating from Aaa and mixed Chinese economic data. S&P 500 Futures fell 0.8% in early Asia hours. Industrial production in April rose, exceeding expectations, while retail sales growth underperformed forecasts. Fixed asset investment also lagged estimates. The Shanghai Composite declined by -0.1%, the CSI 300 by -0.4%, the Hang Seng by -0.6%, the Nikkei 225 by -0.3%, the TOPIX by -0.1%, and the KOSPI by -0.7%. The ASX 200 remained flat. Declining stocks outnumbered advancing stocks by a ratio of 3:1. VIX futures climbed. Asian 10-year government bond yields drifted lower. The Reserve Bank of Australia (RBA) is expected to cut rates by 25 basis points on Tuesday. (FMP)
International relations: Most Asian currencies were largely unchanged on Monday following Moody’s downgrade of the U.S. Aaa sovereign credit rating. The U.S. Dollar Index fell by 0.3%. China’s April industrial output rose by 1.2%, exceeding expectations, but retail sales undershot forecasts. The Japanese yen edged up amid speculation the Bank of Japan might tighten policy. The Thai baht and Indonesian rupiah were near flat, the Malaysian ringgit slipped marginally, the Korean won drifted lower, and the Taiwan dollar was constrained. ING strategists noted that a recent tariff “ceasefire” could renew activity in coming months, but April’s data suggests a moderation in China’s post-pandemic rebound. Traders can use FMP’s Forex Daily API and Economics Calendar API. (FMP)
International relations: European Commission warned a further rise in tariffs would inflict more damage on the bloc’s economy but also that increased spending on defense could lift activity. (WSJ)
International relations: The stock market has fully recovered from its April lows, making it a good time for investors over-concentrated in U.S. stocks to consider a more balanced portfolio. International equities makes sense, according to ETF experts, despite President Trump’s global trade war. (CNBC)
International relations: ‘Anywhere But U.S.A.’ poses questions: Are U.S. markets in a long and painful decline, or was American exceptionalism overdone? (WSJ)
International relations: Wall Street on Friday notched its best week in over a month, with sentiment almost single-handedly being lifted by a surprise U.S. and China trade deal. (Seeking Alpha)
International relations: The decision to ratchet back sky-high tariffs offered both countries a brief respite—and left tremendous uncertainty about what is next. (Barrons)
International relations: Wall Street’s main indexes were set to end the week on a high note, thanks to a temporary truce in the U.S.-China trade war. Stocks bounced back earlier in the week, with strong rallies on Monday and Tuesday after the U.S. and China agreed to pause their trade war for 90 days. (Seeking Alpha)
International relations: The Dow and S&P 500 finished the week in positive territory for 2025 after tariff de-escalation and President Trump’s Middle East tour ignited investor optimism. (WSJ)
Market Sentiment: Equity markets have rebounded sharply over the last month, completely erasing the losses from a deep plunge in the markets over the first two weeks of April. However, even as equities have staged this huge rebound, several major Wall Street firms have cut S&P 500 earnings estimates for 2025. (Seeking Alpha)
Market Sentiment: The market staged a strong 4-week rally as tariff worries eased, with investors rotating out of safe havens into risk assets like stocks. Tech and Consumer Discretionary sectors led gains, fueled by money flowing out of Healthcare, Real Estate, and defensive stocks. (Seeking Alpha)
Policy: A Republican House proposal extends 2017 individual and corporate tax rate cuts through 2032 and introduces a 5% excise tax on remittances sent abroad by non-U.S. citizens. The plan is estimated to increase the national debt by $36.2 trillion over the next ten years. It includes adjustments to state and local tax (SALT) deductions for high-income filers and phasing out clean-energy credits after 2025. Western Union (WU) could experience a 40-60 basis point net-margin erosion, while Remitly (RELY) may see growth forecasts trimmed by up to 8% next year. A House floor vote is scheduled before May 26, 2025. (FMP)
Policy: Moody’s Investors Service downgraded the United States’ sovereign credit rating from Aaa to Aa1 on Friday, citing concerns over a $36 trillion debt burden and persistent fiscal deficits. This is the first downgrade since 1919, with S&P having cut the U.S. rating in 2011 and Fitch following in 2023. The U.S. now holds an Aa1 rating with a “stable” outlook. Moody’s noted the failure of successive administrations and Congress to address widening deficits and rising interest costs. The downgrade occurs as Donald Trump advocates for renewed tax cuts ahead of a potential 2025 re-election bid, and while not altering U.S. Treasuries’ safe haven status, it may raise U.S. borrowing costs and add volatility to global bond and currency markets. (FMP)
Policy: Bessent dismisses U.S. debt downgrade, more retail earnings, Tesla’s Chinese deliveries, and more news to start your day. (Barrons)
Policy: Why the bond market may not have priced in underlying risks. Why the independence of the Fed is a key concern for the bond market. (Seeking Alpha)
Policy: Moody’s downgrading the US long-term debt could be the warning that further downgrades are likely if the key assumptions fail to hold. Specifically, Moody’s warns about the Fed’s independence, the government’s checks and balances, and the role of the US dollar as a reserve currency. (Seeking Alpha)
Policy: The dollar weakened and most Treasury yields rose in early Asian trade after Moody’s Ratings on Friday lowered the U.S.’ credit rating to Aa1 from AAA. (WSJ)
Policy: Special purpose acquisition companies (SPACs) are making a comeback under the Trump administration. SPACs, otherwise known as blank-check companies, were once a popular, though controversial, way for companies to go public. (PYMNTS)
Policy: Moody’s cited the potential extension of President Donald Trump’s 2017 Tax Cuts and Jobs Act, which could add around $4 trillion to the deficit over the next decade. (Barrons)
Policy: Moody’s downgraded the U.S. credit rating due to rising debt and deficits, but maintains a stable outlook thanks to economic strengths and dollar dominance. China’s slow rare earth export approvals are raising supply chain fears for global manufacturers, with U.S. companies like Tesla and Lockheed Martin expressing concern. (Seeking Alpha)
Policy: Moody’s downgraded US credit to Aa1, echoing past S&P and Fitch actions, but market reactions remain unpredictable. Historical downgrades show stocks typically struggle, the dollar strengthens, and rates fluctuate, but no consistent pattern emerges. (Seeking Alpha)
Policy: Moody’s downgrade of US sovereign debt reflects a decade-long fiscal deterioration, with debt and interest burdens projected to worsen dramatically by 2035. The downgrade is fully justified, as current fiscal proposals fail to address unsustainable deficits and rising interest costs, bringing the US closer to a debt spiral. (Seeking Alpha)
Policy: Moody’s downgraded the US credit rating due to rising federal debt and interest costs. It was the last triple-A rating the US had after being downgraded previously by other agencies. (Business Insider)
Policy: Rising deficits and budget chaos finally caught up with the U.S. credit rating Friday when Moody’s Investor Service downgraded the government, stripping its last triple-A rating. (Market Watch)
Policy: The Federal Reserve plans to cut its workforce by about 10% “over the next couple of years” amid a periodic review of its staffing levels, Federal Reserve Chair Jerome Powell told Fed staff in a memo obtained by PYMNTS. (PYMNTS)
Policy: Financial ratings firm Moody’s Ratings downgraded the U.S. government’s credit ratings Friday, citing its rising debt and interest in a move that underscores a ballooning federal budget deficit, making it the last of the big three firms to downgrade the government’s credit. (Forbes)
Policy: Moody’s Ratings downgraded the U.S. credit rating by one notch, from a pristine Aaa to Aa1, citing persistent and rising government debt as causing the move. (Fox Business)
Policy: Moody’s was the last among major ratings agencies to keep a top, triple-A rating for US sovereign debt, though it had lowered its outlook in late 2023 due to wider fiscal deficit and higher interest payments. (New York Post)
Policy: On Friday, the agency changed its outlook on the U.S. to “stable” from “negative.” (Huffington Post)
Policy: Moody’s downgrades United States credit rating on increase in government debt (CNBC)
Policy: Moody’s Ratings downgraded the U.S. government on Friday, citing large fiscal deficits and rising interest costs. (WSJ)
Policy: Trump, who appointed Powell in 2017, has warred with him for years as Powell has made monetary decisions Trump has disagreed with. In recent weeks, Trump has attacked Powell and accused him of being too slow to lower interest rates. (Forbes)
Policy: The Federal Reserve plans to shrink its workforce by about 10% over the coming years, bringing the U.S. central bank in line with President Donald Trump’s broader efforts to streamline the federal government, according to a memo that Fed Chairman Jerome Powell sent to staff on Friday. (Reuters)
Policy: The Federal Reserve is planning to reduce its workforce by 10% over the next few years, according to a memo by Fed Chair Jerome Powell sent to employees on Friday. (Fox Business)
Policy: The staff cuts could result in more than 2,000 fewer jobs at the U.S. central bank. (CNBC)
Trade: President Donald Trump will impose tariffs at the rate he threatened last month on trading partners that do not negotiate in “good faith” on deals, Treasury Secretary Scott Bessent said in television interviews on Sunday. (Reuters)
Trade: U.S. Treasury Secretary Scott Bessent warned Sunday that some of America’s trading partners could soon face a sharp hike in tariff rates, and dismissed Moody’s downgrade of the U.S. government’s credit rating. (Market Watch)
Trade: Focus shifts to how tariffs and the uncertainty surrounding them affect the global economy, with the U.S. purchasing managers’ index on manufacturing and services activity due this week. (WSJ)
Trade: Talks with Japan, South Korea and the European Union have bogged down over auto tariffs and the U.S. reneging on past deals. (WSJ)
Trade: At least five companies from mainland China or Hong Kong are planning IPOs, dual listings, or share placements in Singapore in the next 12 to 18 months, four sources said, as Chinese firms look to expand in Southeast Asia amid global trade tensions. (Reuters)
Trade: It was in both the U.S. and China’s interests to end what was effectively a trade embargo between the world’s two rival superpowers. After the shock and horror of seemingly losing sway over White House economic policy, equities rejoiced in the President’s hasty retreat on tariffs and the China trade war. (Seeking Alpha)
Trade: As tariffs disrupt the supply of cars, “we’re in a situation where dealers, once again, have the leverage,” says one car expert. (Market Watch)
Trade: While in the United Arab Emirates on Friday, U.S. President Donald Trump talked about his plans for tariffs. Here’s what he said, and where his taxes on imports stand now. (Market Watch)
Trade: Washington may be looking to strike trade policies before moving to more pro-growth policies. Two scenarios could play out, where things proceed smoothly or in a more fractious manor. (Seeking Alpha)
Industry
Artificial Intelligence: Earlier this week, Anthropic received a $2.5 billion, five-year revolving credit line. Annualized revenue reached $2 billion in the first quarter, the company confirmed, more than doubling from a $1 billion rate in the prior period. (CNBC)
Aviation: Polish customs officers seized a truck in Koroszczyn carrying 5 metric tons of tires for civilian Boeing aircraft, originating from Spain and destined for Azerbaijan, via Belarus and Russia—a route and cargo prohibited by EU sanctions related to Russia’s 2022 invasion of Ukraine. The cargo was falsely declared as car and bus tires. Criminal fiscal proceedings have been launched. Boeing holds a BBB+ corporate rating and reported $12 billion in cash and equivalents in its latest quarter, with $70 billion in total debt against $150 billion in assets. (FMP)
Healthcare: UnitedHealth faces a crisis, signaling sector-wide challenges and a possible regulatory inflection point. Tech stocks remain highly sensitive to global headlines and tariffs, with AI-driven growth tempered by macroeconomic uncertainty and ongoing trade negotiations. (Seeking Alpha)
Robotics: Industrial robots have been around for decades. They’re often used on manufacturing lines, where they perform automated tasks. (Market Watch)
Semiconductors: Nvidia is negotiating a stake in PsiQuantum, a photonic-qubit quantum computing startup, in a $750 million funding round led by BlackRock, valuing PsiQuantum at $6 billion pre-money. Nvidia holds over $40 billion in cash and equivalents and allocates approximately 28% of its revenue to R&D, double the industry median. The quantum computing sector is projected to exceed $10 billion by 2028. PsiQuantum utilizes photonic qubits fabricated on conventional semiconductor lines and has partnerships with GlobalFoundries and government grants in the U.S. and Australia. (FMP)
Semiconductors: India is emerging as a strategic chip production hub due to shifting trade dynamics and government incentives. Infineon signed an MoU with CDIL and NXP is in talks with Tata Electronics. The government’s $2.7 billion incentive program supports electronics components with revenue-linked and capex support. Foxconn plans a 300-acre facility. Capital-equipment imports for semiconductor manufacturing have surged, and data from FMP indicates India’s semiconductor sector currently trades at a discount versus global peers. U.S.-China tensions and reciprocal levies are prompting diversification, with India offering relatively lower tariffs. (FMP)
Semiconductors: Nvidia will ship a downgraded AI processor to China within months, based on its previous-generation Hopper architecture and lacking high-bandwidth memory (HBM), to comply with U.S. export restrictions. A modified, HBM-free Blackwell chip is planned for 2025. This strategy aims to maintain Nvidia’s approximately 14 percent revenue share in China, which represented a key growth driver in 2024. Major Chinese AI companies like Bytedance, Alibaba, and Baidu will transition from H20 chips to these compliant variants. Nvidia holds over $40 billion in cash and equivalents and maintains a AAA corporate rating. Over the next 12-18 months, advancements from local competitors like Huawei could challenge Nvidia’s dual-tier product approach. (FMP)
Semiconductors: NVIDIA and Foxconn, with support from the Taiwan government, are building an AI factory supercomputer featuring 10,000 NVIDIA Blackwell GPUs, delivered through Foxconn’s Big Innovation Company as an NVIDIA Cloud Partner. The Taiwan National Science and Technology Council will provide cloud access to the supercomputer. TSMC researchers will utilize the platform to accelerate chip design and materials science. NVIDIA holds a AAA corporate rating and has over $40 billion in cash and equivalents. The partnership aims to establish an “AI factory” model and strengthen Taiwan’s regional competitiveness. (FMP)
Semiconductors: Qualcomm is reentering the data center CPU market with custom Arm-based processors designed to integrate with Nvidia’s Blackwell and Grace-series GPUs, leveraging designs from the early 2010s and talent acquired in 2021. Qualcomm has a letter of understanding with Saudi AI firm Humain and is in discussions with Meta Platforms. The move aims to diversify CPU supply, optimize AI workloads, and potentially expand data center deployments in the Middle East and Asia. Qualcomm holds a strong investment-grade rating and over $15 billion in cash and equivalents. The company dedicates nearly 20% of its trailing-twelve-month revenue to R&D. (FMP)
Semiconductors: NVIDIA unveiled new AI hardware and software at Computex in Taipei, including the Blackwell GPU series and NVLink Fusion, which reduces inter-GPU communication latency by up to 30% and enables sub-200 microsecond inter-GPU communication. A new “small-form” AI supercomputer, powered by Blackwell GPUs and NVLink Fusion, delivers sub-50 ms response times for real-time generative AI tasks. New AI agent software leverages Blackwell inference for robotics applications, performing tasks in milliseconds. NVIDIA announced “Constellation,” a Taiwan manufacturing facility in partnership with Foxconn, to produce Blackwell GPUs and custom AI accelerators, aiming to shorten chip delivery timelines and accelerate prototyping. Analysts can use Sector P/E Ratio and Company Rating APIs from FinancialModelingPrep to track market valuations and creditworthiness related to NVIDIA’s investments and R&D spend. (FMP)
Semiconductors: NVIDIA has made NVLink Fusion, an interconnect technology, available for licensing to other chip designers, offering speeds up to 2 TB/s for cross-chip bandwidth. Marvell and MediaTek have committed to integrating Fusion into their next-generation AI accelerators. The technology builds on the original NVLink standard used in NVIDIA’s GB200, which combines two Blackwell GPUs and a Grace CPU. NVIDIA anticipates licensing revenue from Fusion will boost recurring income streams and believes widespread adoption could establish NVLink as the de facto standard for high-performance AI clusters. Fusion licensing is expected to roll out later in the current year. (FMP)
Technology: Google’s developer summit unveiled four key pillars for the Android ecosystem, impacting roughly three billion active devices. These include advanced personalization powered by Gemini Live, with sub-200 ms inference latency, adaptive theming, and Project Astra/Mariner trials expected later in the year. Gemini will expand to Smart TVs, Waymo Robotaxis (boosting fleet utilization), and Wear OS devices, offering voice-first notifications and health summaries (e.g., alerting users to a resting heart rate above 80 bpm). Android 16 will feature a Material 3 Expressive UI with a Live Updates widget, customizable home screen (fonts, colors, and icon shapes), and motion-based feedback. Security enhancements include on-device phishing filters, a Find Hub utilizing ultra-wideband and Bluetooth 5.2 for locating lost items, and Advanced Protection mode for high-risk users. BMO Capital Markets analysts see these changes as catalysts for increased engagement, faster hardware upgrades, and potential valuation increases, suggesting examination of Sector P/E Ratio and ETF Sector Weighting APIs for technology sector analysis. (FMP)
Trade: Corporate supply chain decision-makers have dealt with a rapidly shifting US tariffs landscape during the first four-and-a-half months of 2025. At the sector level, there was a marked divergence in the development of tariff negativity. (Seeking Alpha)
Venture Capital: The public market debut of eToro on Wednesday and Hinge Health’s expected IPO next week are giving startup investors signs of hope. After an extended drought, the IPO market appeared poised to open up early this year until President Donald Trump’s tariffs announcement in April sent stocks plummeting. (CNBC)
Corporate
Alibaba Group: Alibaba’s stock fell 3.8% to HK$118.60 in Hong Kong trade, driven by reports that the Trump administration is reviewing its AI partnership with Apple due to concerns over Chinese data laws and censorship. This decline caused the Hang Seng to drop 0.2%. Alibaba’s cloud division reported disappointing March-quarter earnings, raising concerns about delayed profitability and competitive pressures. Currently, Alibaba trades at a trailing P/E of 21.4, a modest premium to its sector average. Investors are advised to monitor intraday volume surges and liquidity via FMP’s Market – Most Active API to identify optimal trading points amidst volatility. (FMP)
Alphabet Inc / NVIDIA / AMD: D.A. Davidson suggests Alphabet’s breakup could increase per-share value to $243 currently and $300 with broader TPU commercialization, citing a uniform 16x earnings multiple versus cloud peers trading near 25x. Bank of America raised NVIDIA’s price target to $160 and AMD’s to $130, based on multi-year “sovereign AI” deals potentially generating $3-$5 billion annually for each vendor. NVIDIA’s initial Phase 1 involves 18,000 Blackwell GPUs, costing approximately $700 million, with plans to scale to hundreds of thousands over five years. AMD anticipates revenue growth from CPUs, GPUs, and ROCm software beginning in 2026 through similar projects. (FMP)
Apple Inc: A U.S. injunction issued on April 30 threatens up to 60% of Apple’s Services revenue, which is tied to in-app purchases. Safari search volume has declined year-over-year for the first time in over two decades due to the rise of AI alternatives like Bing AI and ChatGPT. Apple’s Services margins increased from 60.8% in FY 18 to 75.4% in H1 FY 25, driven by App Store commissions and Google’s traffic-acquisition costs, with these two lines accounting for up to 60% of Services revenue. Investors can monitor Services vs. hardware revenue splits and key metrics through provided APIs. Apple currently trades at a premium reflecting Services growth, and potential re-rating risks exist. Key watchpoints for investors include the App Store appeal decision, Safari search-share updates, and Q3 Services guidance. (FMP)
Apple Inc / Alibaba: Apple’s planned integration of Alibaba’s AI services into iPhones in China is facing scrutiny from the White House and Congress due to data sharing, censorship, and bolstering Chinese AI capabilities. The partnership would see Alibaba power on-device AI features for iPhones sold in China, leveraging its large language models for localized support and content filtering. China is Apple’s second-largest market by revenue. The deal could enhance Alibaba’s model training with iPhone-derived data and extend China’s censorship regime. Apple’s Q3 earnings are expected late in July, and investors are advised to monitor them for updates on China strategy. Potential outcomes include approval with conditions (like data segregation) or a block or delay, potentially forcing Apple to seek alternative AI partners. (FMP)
Berkshire Hathaway: By Jeremy Schwartz, CFA Key Takeaways At his 60th Berkshire Hathaway annual meeting, and final as CEO, Warren Buffett emphasized patience, trust and long-term ownership, and highlighted his $20 billion stake in Japanese trading houses as a model for enduring value. (ETF Trends)
GDS / VNET: UBS analysts suggest market concerns about AI-driven data center spending in China are overdone, noting a 40-60% valuation correction since February. GDS and VNET now trade at pre-DeepSeek AI levels. UBS maintains a “Buy” rating for GDS with a price target of $45 and for VNET with a target of $12.80. VNET’s wholesale segment is projected to achieve 56% EBITDA growth through 2026. Potential data center REIT launches for GDS are cited as a possible catalyst. UBS recommends revisiting entry points for GDS and VNET and utilizing FMP APIs to model potential upside over a 5-to-10-year horizon. Risks include potential AI demand slowdown, regulatory hurdles related to U.S. export controls and broader macroeconomic uncertainties. (FMP)
JPMorgan Chase: JPMorgan Chase’s top brass will take center stage at its investor day on Monday, with tariffs and a succession plan once again in focus. (Reuters)
Microsoft Corp: Microsoft is developing an “agentic web” where AI agents interoperate using the Model Context Protocol (MCP), initially developed by Anthropic and supported by Google. This framework aims to allow AI agents to invoke each other’s capabilities, similar to web service APIs. Microsoft intends to preview memory-management libraries at Build 2025, offering encryption-by-default for user data. Microsoft holds a AA+ corporate rating, maintains over $130 billion in cash and equivalents, and dedicates roughly 18% of its trailing-twelve-month revenue to research and development (R&D), exceeding the average for the tech sector. (FMP)
Novavax: The FDA granted conditional approval to Novavax’s COVID-19 vaccine for adults over 65 and individuals aged 12+ with high-risk conditions. This approval, which missed an April 1 target, utilizes a protein-based formulation, differing from mRNA vaccines. Novavax shares jumped in reaction. The vaccine’s efficacy will be compared in ongoing head-to-head studies against mRNA vaccines. Novavax must update its strain composition for the next immunization cycle. (FMP)
Nvidia Corp / Target / Ralph Lauren / TJX: CNBC’s Jim Cramer on Friday walked investors through next week’s market action, honing in on a keynote speech from Nvidia’s Jensen Huang and earnings from retail names including Target, Ralph Lauren and TJX. He struck an optimistic tone about the market’s capacity to secure gains — as long as trade tensions don’t worsen between the U.S. and China. (CNBC)
Tesla Inc: Tesla has amended its bylaws to require shareholders holding at least 3% of outstanding shares—approximately 97 million shares, representing a $34 billion market value—to initiate derivative lawsuits. This change follows a new Texas corporate law permitting ownership thresholds up to 3% to limit litigation. Previously, when incorporated in Delaware, any shareholder, including Richard Tornetta who held nine shares in a 2018 suit concerning Elon Musk’s $56 billion compensation package, could file a derivative suit. Tesla currently maintains an AA- corporate rating and ended the last quarter with over $25 billion in cash and equivalents. (FMP)
Tesla Inc: Morgan Stanley analysts warn that fulfilling U.S. ambitions in physical AI over the next five years relies on sustained partnerships with Chinese firms, deeming full decoupling “extraordinarily difficult.” China holds a leading role in precision components, robotics, and semiconductor packaging, complementing U.S. strengths in AI algorithms. Despite easing tariff tensions following Geneva talks, U.S. consumers and OEMs will continue seeking Chinese EV and robotics technology. Tesla (NASDAQ:TSLA) is identified as uniquely positioned to integrate Chinese manufacturing, leveraging its Gigafactories to absorb Chinese-made battery cells and Powerwall modules, and distributing Chinese-designed components to American consumers. Pilot collaborations in robotics automation are underway at Fremont and Shanghai plants. Analysts use the Ratios (TTM) and Company Rating APIs to monitor Tesla’s financial resilience and credit-rating changes related to U.S.-China dynamics. Building or upgrading factories for physical AI deployment necessitates strong balance sheets and credit access. (FMP)
Trip.com Group Limited: Trip.com Group Limited (NASDAQ:TCOM) is a leading travel service provider expected to release its first-quarter 2025 earnings on May 19. Analysts project earnings per share (EPS) of $0.86 and revenue of $13.8 billion. Last quarter, TCOM reported an adjusted EPS of $0.60, exceeding the estimated $0.52, with a 23% year-over-year increase in net revenue. Projected quarterly revenue is expected to increase to $13.82 billion from $11.9 billion a year earlier. Earnings per share is projected to decrease from $6 to $5.57 year-over-year. Key financial metrics include a P/E ratio of 19.14, a price-to-sales ratio of 5.78, an enterprise value to sales ratio of 5.58, an enterprise value to operating cash flow ratio of 871.81, a debt-to-equity ratio of 0.28, and a current ratio of 1.51. (FMP)
UBS: UBS is in talks to compensate some clients for losses after they were sold complex foreign-exchange derivatives that wiped out much of their investments when U.S. President Donald Trump’s tariffs sparked wild moves in currencies, sources familiar with the matter said. (Reuters)
