Daily News Round Up
Wednesday, 04 Jun 2025
- Easing Trade Tensions and Optimism for U.S.-China Dialogue are Driving Risk Appetite. Despite continued tariff implementation (including a doubling of steel and aluminum tariffs), market sentiment has improved due to speculation surrounding a potential call between President Trump and President Xi Jinping to restart trade negotiations. This has spurred a rally in Asian markets and the S&P 500, with Deutsche Bank raising its year-end target to 6,550 (FMP). The ‘TACO’ (Trump Always Cuts Off) tenet — the belief that Trump eventually relents on trade threats — is gaining traction (Forbes).
- U.S. Economic Growth is Slowing, but the Labor Market Remains Resilient. The OECD forecasts U.S. economic growth to decelerate to 1.6% in 2025 and 1.5% in 2026 (Fast Company), largely due to Trump’s tariffs. However, strong May performance for the S&P 500 (its best since 1990) suggests near-term momentum (Seeking Alpha), and the labor market remains relatively stable, as indicated by forthcoming jobs data and slowing tech sector layoffs (Seeking Alpha).
- Sector Performance is Diverging with Energy and AI-Related Sectors Showing Promise. The energy sector is attracting interest driven by a projected shortfall in data center power capacity due to AI expansion, with Morgan Stanley highlighting specific stocks like EQT and Energy Transfer (FMP). Conversely, small-cap stocks are expected to continue underperforming large caps (Market Watch), while defensive sectors like consumer staples and healthcare are favored due to trade-related inflation risks (FMP).
- Financial Sector Faces a Mixed Landscape with Regulatory Shifts and Earnings Surprises. Wells Fargo’s asset cap removal by the Federal Reserve is a positive catalyst for expansion, but regulatory scrutiny will remain (FMP). Bank of America received a credit rating confirmation from Fitch (FMP), and Hewlett Packard Enterprise reported a Q2 earnings beat driven by AI server demand (FMP), while the Federal Reserve’s SOMA net income is declining (PYMNTS).
- Global Growth Forecasts are Being Revised Downward Amidst Persistent Trade Uncertainty. The OECD downgraded its global growth projections to 2.9% for both 2025 and 2026 (FMP), fueled by escalating trade tensions and rising tariffs. Concerns extend beyond simple tariff impacts, with growing discussion around strategic control of global supply chains by the U.S. and China (NYTimes). This uncertainty is weighing on the outlook for emerging market economies and may necessitate further diversification of investor portfolios.
What happened yesterday?
Macro
Commodity Prices: Gold prices remained steady on Wednesday, with spot gold at $3,353.71 an ounce and August futures at $3,377.72. A potential meeting between U.S. President Donald Trump and Chinese President Xi Jinping, expected to occur later this week, sparked limited rotation into risk assets and speculation of resuming tariff negotiations. However, heightened tensions in Eastern Europe and the Middle East, including double tariffs on steel and aluminum and failed U.S.-Iran nuclear negotiations, sustained demand for gold as a safe-haven asset. The U.S. dollar is currently weaker. Safe-haven allocation to gold remains strong despite improved risk appetite. (FMP)
Commodity Prices: Oil prices edged lower in Asian trade on Wednesday, with Brent crude dropping 0.3% to $65.46 per barrel and West Texas Intermediate (WTI) slipping 0.3% to $63.22, paring Tuesday’s 2% gain which brought both benchmarks to two-week highs. Concerns about rising OPEC+ output and U.S.-China tariff tensions overshadowed supply fears linked to Canadian wildfires in Alberta and stalled Iran-U.S. negotiations. Speculation exists of renewed U.S.-China trade talks between President Trump and President Xi this week, following accusations that China violated a prior tariff agreement. The OECD revised its global growth projection downward due to the prolonged U.S. trade war. Geopolitical risk supports short-term prices, while demand-side fears and output growth suppress long-term upside. (FMP)
Economic Growth: Barclays has raised its year-end S&P 500 price target to 6,050 from 5,900. The S&P 500 surged 6.2% in May 2025 after President Trump signaled a more moderate stance on tariffs. Barclays maintains its 2025 EPS estimate at $262, and forecasts a 2026 EPS of $285, representing an 8.8% year-over-year growth. With the index near 5,970, a move to 6,050 represents a 1.32% upside. Currently, the S&P 500 trades around 19x forward EPS, and a move to 20x could justify the 6,050 target. Barclays suggests rotating into equity positions if the S&P 500 consolidates in the 5,900–6,000 range and recommends favoring companies with strong free cash flow. (FMP)
Economic Growth: The S&P 500 rose more than 6% in May, its best performance since 1990, and historically this predicts a positive 12 months. Nine of the index’s 11 sectors are projecting earnings growth, with technology standing out. (Seeking Alpha)
Economic Growth: U.S. economic growth will slow to 1.6% this year from 2.8% last year as President Donald Trump’s erratic trade wars disrupt global commerce, drive up costs and leave businesses and consumers paralyzed by uncertainty.The Organization for Economic Cooperation and Development forecast Tuesday that the U.S. economy—the world’s largest—will slow further to just 1.5% in 2026. Trump’s policies have raised average U.S. tariff rates from around 2.5% when he returned to the White House to 15.4%, highest since 1938, according to the OECD. (Fast Company)
Economic Growth: Small caps will likely continue to lag their large-cap peers in the U.S., even if worries about the economy ease. (Market Watch)
Inflation: Cook expressed concern Tuesday with the progress on inflation, saying recent lower readings could reverse. (CNBC)
Inflation: Our financial adviser says we’re still on track. Still, it’s hard not to look for ways to cut back. (WSJ)
Interest Rates: The Federal Reserve’s System Open Market Account (SOMA) saw its net income decline for the second year in a row in 2024 and could see another drop in 2025, the New York Federal Reserve said in a report released Tuesday (June 3). The losses slowed in 2024, with SOMA net income being negative $74. (PYMNTS)
International relations: Asian stocks generally rose on Wednesday, fueled by optimism regarding a potential call between U.S. President Trump and Chinese President Xi Jinping to revive trade negotiations. South Korea’s KOSPI rallied over 2% following Lee Jae-myung’s victory in Tuesday’s presidential election. The ASX 200 in Australia climbed despite weaker-than-expected Q1 GDP data. Key Chinese market indices saw gains: the Shanghai Shenzhen CSI 300 rose 0.5%, the Shanghai Composite increased by 0.3%, and the Hang Seng gained 0.6%. U.S. steel and aluminum tariffs were raised to 50% by Trump, causing S&P 500 Futures to fall 0.1%. Investors are anticipating a permanent tariff rollback following a May agreement to temporarily cut duties. (FMP)
International relations: Global GDP growth was downgraded to 2.9% for 2025 and 2.9% for 2026, down from previous estimates of 3.1% and 3.0% respectively. Benchmark oil prices have decreased from above $90/barrel to the mid-$80s. Commodity prices, overall, have retreated roughly 8% over the past quarter. Soybean and corn futures are down 5-7%. Industrial metals like copper and nickel have seen slight pullbacks. The Economics Calendar API provides a live feed of upcoming releases, including GDP revisions and PMI prints. Defensive sectors like consumer staples and healthcare are recommended due to trade tensions risking inflation. Emerging market economies heavily dependent on exports could underperform. Investors are advised to diversify exposure, use data-driven alerts, consider inflation-protected securities (TIPS), and monitor the Commodities API for shifts in oil, metals, and agricultural prices. (FMP)
International relations: Deutsche Bank raised its S&P 500 target to 6,550, up from 6,150, implying a nearly 10% upside from the Monday closing level of 5,935.94. The bank also increased its S&P 500 earnings per share (EPS) forecast to $267, up from $240, citing reduced trade tariff impact estimated at one-third of previous assumptions. Despite this, strategists warned of potential volatility due to ongoing U.S.-China trade disputes, with Donald Trump accusing China of violating a detente. Market reactions included gold prices surging to a three-week high, Treasury yields ticking higher, and the U.S. dollar weakening. The S&P 500 still closed up 0.4% on Monday. (FMP)
International relations: It’s hard to know if Trump’s comments on Xi Jinping suggest the world’s two biggest economies are getting any closer to a deal on tariffs. (Barrons)
International relations: Markets today hold near highs as traders await ADP jobs data, Fed Beige Book insight, and updates on U.S.–China trade tensions. (FXEmpire)
International relations: The UK’s exemption from a doubling of duties on most US steel and aluminium imports is dependent on the ratification of May’s trade pact between the two countries, the White House has warned. (Skynews)
International relations: Germany’s stock market performance outpaced many global peers through May, as a bullish outlook for the country’s fiscal expansion offset fears of economic pressure from global trade tensions. Concerns stemming from the proposed US tariffs on most countries sent the DAX down to a near 2% year-to-date loss by April 9 from a gain of over 16% in mid-March. (Seeking Alpha)
International relations: Traders eye US services PMI and ADP data as sentiment toward the DAX hinges on Fed rate cues and EU tariff negotiations. (FXEmpire)
International relations: Asian currencies consolidate against the dollar in the morning session, but may be buoyed by Tuesday’s strong U.S. job openings data. (WSJ)
International relations: Instead of battling over tariffs, Washington and Beijing have turned to a potentially far more harmful strategy: flexing their control over global supply chains. (NYTimes)
International relations: Cuba said it would begin to offer additional mobile internet data plans at a sharply reduced price for students after an initial rate hike prompted outrage across an island already reeling from soaring inflation and shortages of basic goods. (Reuters)
International relations: The Deutsche Bank group rationale for stock gains reflects a growing consensus on Wall Street to not take Trump at face value on tariffs considering he has repeatedly backed down from his harshest trade posturing. That has led to the diffusion of the “TACO” tenet for investors, short for “Trump always backs down. (Forbes)
Investor Sentiment: Stock and stock fund allocations increased 0.2 percentage points to 64.3%. Bond and bond fund allocations decreased 0.1 percentage points to 16.1%. (Seeking Alpha)
Labour: Investors may likely dismiss the upcoming May jobs report this Friday, despite potential job losses in the government sector. Technology sector job cuts are slowing, while healthcare and financials continue their growth; JPMorgan and Citi are among the bank stocks to watch. (Seeking Alpha)
Market Sentiment: I remain cautious on the S&P 500 due to high valuations, persistent trade policy volatility, and restrictive Fed policy. Recent earnings growth and a precarious tariff truce have fueled the market recovery, but risks from unresolved trade disputes and legal uncertainties remain high. (Seeking Alpha)
Policy: Fed chair Jerome Powell resisted pressure from President Donald Trump recently to lower interest rates, citing employment and price stability as a priority. (CNBC)
Policy: CNBC’s Jim Cramer said President Donald Trump’s actions bring out short sellers and lead investors to make misguided market moves. “When you examine the market’s mistakes, they share a common theme: the president’s distorting pretty much everything, especially with his tariffs and his jingoistic approach to the rest of the world, and it’s continually confounding traders and investors alike,” he said. (CNBC)
Policy: The U.S. economy remains solid, but tariff-driven uncertainty is complicating the Federal Reserve’s efforts to balance price stability and maximum employment, Federal Reserve Governor Lisa D. Cook said Tuesday (June 3). (PYMNTS)
Policy: The OECD’s forecast projects a slowdown in U.S. economic growth due to tariffs, with GDP growth at 1.5% in 2026 and inflation reaching 3.9% by the end of 2025. (Fox Business)
Trade: U.S. President Donald Trump’s 50% tariffs on most imported steel and aluminum went into effect on Wednesday, an increase from previous 25% rate that had been in place. (Fox Business)
Trade: Steel and aluminium exports to the U.S. face a 50% tariff from June 4. Steel producers in Europe, including major exporters in Germany and Sweden, now face a big hit from the increased duties. (CNBC)
Trade: Ongoing uncertainty about US trade policy has become a dominant theme in financial markets, triggering a bond market sell-off. Stocks initially cratered in April following Trump’s announcement of tariffs on nearly all global trading partners, but have mostly recovered as implementation was paused. (Seeking Alpha)
Trade: With a legal challenge to most of its current tariffs, the Trump administration is exploring different mechanisms to impose trade restrictions. (Barrons)
Trade: He initially announced the move last Friday while visiting a U.S. Steel factory in Pennsylvania. (Barrons)
Trade: The White House said Tuesday that President Donald Trump has signed an executive order to double tariffs on imported steel and aluminum to 50% from 25%. (Market Watch)
Trade: Despite the unanimous ruling from the Court of International Trade, the Supreme Court will likely decide whether the International Emergency Economic Powers Act empowers President Trump to levy global tariffs. As this process will take time to play out, economic uncertainty will persist for the foreseeable future. (Forbes)
Industry
Aviation: A group representing major U.S. and global aeropsace companies on Tuesday warned new tariffs on imported commercial aircraft, jet engines and parts could put air safety and the supply chain at risk or have unintended consequences. (Reuters)
Consumer Goods: Kenvue Chief Executive Thibaut Mongon said the consumer continues to be under pressure. (Market Watch)
Energy: Morgan Stanley forecasts a 45 gigawatt shortfall in U.S. data center power capacity by 2028 due to rapid AI infrastructure growth. Natural gas and nuclear are expected to bridge this gap, with “time to power”—speed of electricity delivery—becoming a valuable service. Texas’s Senate Bill 6 aims to streamline approvals for new power projects, potentially benefiting Vistra Corp., NRG Energy, ExxonMobil, and Energy Transfer. Energy Transfer’s “Stargate” pipeline is another key project, potentially reducing gas transport bottlenecks. Top stock picks identified include EQT Corporation, Energy Transfer, Williams Companies, Sempra, Vistra Corp., Berkshire Hathaway Energy, ExxonMobil, Cummins Inc., Public Service Enterprise Group, AES Corporation, NextEra Energy, Vertiv Holdings, and Public Service Enterprise Group. Companies involved in generation, midstream infrastructure, and data-center equipment are expected to gain significant market share. (FMP)
Logistics: U.S. logistics costs were flat as a share of GDP last year as the industry healed from pandemic disruption, a report says. (WSJ)
Semiconductors: Generative AI’s return on investment remains uncertain across many sectors, but software development is seeing significant AI-powered code generation strides. Startup Cursor recently raised $900 million at a $10 billion valuation, while Windsurf, creator of Codeium, is in talks for a $3 billion acquisition by OpenAI. Microsoft’s GitHub Copilot, launched in 2021, generated over $500 million last year and is the dominant player. Companies including OpenAI, Google, Microsoft, and Anthropic are all developing new code generation products. Investors and founders see a limited opportunity to establish AI coding solutions, though many depend on foundational models from larger companies, impacting profitability. (FMP)
Semiconductors: Research firm Counterpoint cut growth expectations for global smartphone shipments in 2025 to 1.9% on Wednesday, down from its earlier forecast of 4.2%, citing uncertainties surrounding U.S. tariffs. (Reuters)
Corporate
AMC Entertainment: AMC Entertainment will increase pre-movie advertisements starting July 1, partnering with National CineMedia to introduce a “platinum spot” before each showing. National CineMedia’s stock rose 4.8% on the announcement, while AMC shares slipped 3.2%. This move aims to diversify revenue and offset financial pressure resulting from rising costs (film acquisition fees, staffing, maintenance) and shifting consumer behavior. AMC will receive a portion of ad revenue. The company plans to monitor metrics like revenue per theater screen, cash burn, operating margin, and same-store revenue growth using the Ratios (TTM) API, as well as track credit health and risk scores via the Company Rating API. (FMP)
Arbor Realty Trust, Inc.: On June 3, 2025, Director Green William C purchased 13,821 shares of Arbor Realty Trust (NYSE: ABR) at $9.45 per share, increasing his total ownership to 192,618 shares. Prior to this, on May 30, 2025, Arbor Realty Trust closed an $802 million build-to-rent loan securitization, issuing $683 million in investment grade-rated notes and retaining $119 million and $41 million of those notes. The securitization has a $50 million capacity for acquiring additional loans over 180 days. Arbor Realty Trust’s financial metrics include a P/E ratio of 7.79, a price-to-sales ratio of 3.80, an enterprise value to sales ratio of 3.76, an earnings yield of 12.84%, and a debt-to-equity ratio of 0.10. (FMP)
Bank of America Corporation: Fitch Ratings reaffirmed Bank of America Corporation (NYSE: BAC) Long-Term Issuer Default Rating (IDR) at AA− and Short-Term IDR at F1+ on June 3, 2025. Bank of America, N.A.’s IDRs were also maintained at AA and F1+, respectively, with a stable outlook. Key drivers include a Viability Rating (VR) of aa−, market leadership in mortgages, credit cards, and investment banking, and a diversified business mix. Bank of America maintains a double leverage below 120 percent and ample high-quality liquid assets (HQLA). Net charge-offs declined to 0.5 percent of loans in Q1 2025, driven by improvements in commercial real estate (CRE) office loans. Fitch expects net charge-off ratios to remain modest. The analysis suggests monitoring BofA’s financial ratios, credit ratings, and ESG scores, benchmarking against peer banks, and utilizing Financial Modeling Prep (FMP) APIs for data. (FMP)
BlackRock (NYSE: BLK): Texas Comptroller Glenn Hegar removed BlackRock (NYSE: BLK) from its list of companies boycotting the energy industry on Tuesday, following BlackRock’s withdrawal from the Net Zero Asset Managers initiative and reduced support for environmental shareholder resolutions. Hegar cited BlackRock’s backing of the Texas Stock Exchange as a positive step. BlackRock manages over $400 billion in corporations, local governments, energy infrastructure, and other private assets in Texas. BlackRock and other European asset managers were added to the boycott list in 2022, under a law passed in 2021 responding to ESG investment priorities. The removal will ease business dealings between Texas state agencies and BlackRock and may strengthen the firm’s position in a lawsuit filed by Texas Attorney General Ken Paxton. (FMP)
Boeing (NYSE: BA): Boeing (NYSE: BA) is Bernstein’s top pick in Global Aerospace & Defense, with a $249 price target, based on improving fundamentals and production momentum. The 737 MAX line is nearing 38 jets per month and is projected to reach 42 per month by year-end and 47 per month six months thereafter. The 787 Dreamliner production is set to hit 7 jets per month soon. Bernstein notes Boeing’s valuation multiple is below pre-737 MAX grounding and pandemic levels, with a current P/E (TTM) of 13.5x versus 18-20x pre-grounding and an EV/EBITDA of 7.8x versus ~10x in 2019. Operating margin improved from 0.2% in Q1 2022 to 4.7% in Q1 2025. The company secured the F-47 program contract and reported no accounting charges in Q1 2025. Operating cash flow in Q1 2025 reached $1.2 billion, up from negative cash flow in mid-2023. (FMP)
Caterpillar Inc: Caterpillar Inc. (NYSE:CAT) received a “Buy” rating from Bank of America Securities on June 3, 2025, maintaining a bullish outlook influenced by a durable U.S. economy and global momentum. The stock price was $349.40 on that date. Currently, the stock price has increased by $4.73, representing a 1.37% rise. Daily trading volume is 2,613,068 shares. The stock has fluctuated between $344.92 and $350.83 today, with a 52-week range of $267.30 to $418.50. Its market capitalization is approximately $164.33 billion. To celebrate its 100th anniversary, a limited-edition boot collection has been launched. (FMP)
Dollar Tree, Inc.: Dollar Tree, Inc. (NASDAQ: DLTR) operates over 8,000 stores under the Dollar Tree and Family Dollar brands. The average price target for the stock increased from $85.50 last quarter to $90.33 last month, but remains below last year’s $94.88. Barclays analyst Karen Short set a price target of $140. The company’s upcoming earnings report on June 4, 2025, projects earnings of $1.19 per share on revenue of $4.53 billion, a 13% decline in earnings and a 41% drop in sales compared to the previous year. Dollar Tree plans to divest Family Dollar for over $1 billion, and expand its Multi-Price Strategy to increase its customer base. (FMP)
Hewlett Packard Enterprise: Hewlett Packard Enterprise (HPE) reported Q2 revenue of $7.63 billion, exceeding the consensus estimate of $7.45 billion, and adjusted EPS of 38 cents, surpassing the expected 32 cents. Server revenue grew by 5.7% to $4.06 billion, and hybrid cloud sales reached $1.45 billion. The company experienced a $1.36 billion impairment on legacy software. HPE tightened its full-year revenue forecast to 7%-9% growth, down from the previous 7%-11% forecast. AI-optimized ProLiant server revenue benefited from strong NVIDIA GPU demand. HPE previously beat estimates by 5 cents in Q3 2024, 2 cents in Q4 2024, matched estimates in Q1 2025, and beat by 6 cents in Q2 2025. (FMP)
JPMorgan Chase: Andy O’Brien, the global head of loan capital strategy at JPMorgan Chase , is set to retire at the end of 2025 after 40 years at the largest U.S. lender, according to an internal memo seen by Reuters on Tuesday. (Reuters)
Nvidia: Nvidia and other chip makers were among the biggest gainers. (WSJ)
Nvidia / Alphabet / Tesla / Apple / Microsoft / Meta / Amazon: The U.S. tech sector experienced a significant surge in May, with the Nasdaq 100 index rising 8.8%, its strongest monthly gain since November 2023. Europe’s STOXX Europe 600 Technology Index increased by a more modest 7.8%. Key drivers included easing U.S.-China trade tensions, accelerating AI investments, robust U.S. macroeconomic data, and a rebound in crypto-linked equities. Nvidia (NVDA) soared 24.1% during the month, boosted by a strategic AI alliance with Saudi Arabia and first-quarter earnings exceeding expectations, while Alphabet (GOOGL) gained over 8%. Tesla (TSLA) rose 0.4% in May, but had already increased by 46% since April, due to plans for AI-powered robotaxis. “The Magnificent 7” – Apple, Microsoft, Nvidia, Meta, Amazon, Tesla, and Alphabet – collectively increased by 13.4%, the best monthly performance since May 2023. Hardware led sector gains with an 11% rise, while IT services remained the weakest year-to-date despite a modest rebound. Despite the gains, trade policy risks remain, including reinstated tariffs and existing export controls on semiconductors, along with a fragile U.S.-China détente. (FMP)
Tesla Inc: Tesla aims for “near-zero China dependence” for its 4680 cells and a “China reliance approaching 0%.” China controls roughly 80% of global lithium-ion cell manufacturing and an even larger share of key materials. Tesla is piloting novel processes to refine spodumene ore, and plans to produce high-nickel NCA and iron-phosphate (LFP) cathodes domestically. Tesla’s Dry Battery Electrode (DBE) process is 5-6 times faster than traditional wet methods, potentially increasing throughput by more than 80%. Piper Sandler expects DBE to begin scaling by late 2025. Lithium prices spiked 50% in late 2023. Tesla is commissioning approximately 10 GWh of domestic LFP capacity, representing about 25% of the 40 GWh needed for U.S. Megapack production. Tesla’s head start could deliver a 12-18 month cost-curve advantage over competitors. (FMP)
Tesla Inc: Tesla’s new-car deliveries in Britain fell to 1,758 units in May 2025, a decrease from 3,244 units in May 2024, representing a 45% decline. Overall UK new-car registrations rose 4.3% to 144,098 units in May, with BEV sales increasing by 28% year-on-year. BYD’s UK sales doubled to 1,388 units in May. Despite the May slump, Tesla remains the top-selling battery electric vehicle (BEV) brand in the UK year-to-date (YTD) for 2025. (FMP)
Venus Concept Inc: Venus Concept Inc. (NASDAQ:VERO), a medical aesthetic technology company, has a Return on Invested Capital (ROIC) of 174.86% and a Weighted Average Cost of Capital (WACC) of 17.20%, resulting in a ROIC to WACC ratio of 10.16. Plus Therapeutics demonstrates superior capital efficiency with a ROIC of 263.26% and a WACC of 5.96%, yielding a ROIC to WACC ratio of 44.18. NeuroBo Pharmaceuticals exhibits a negative ROIC of -574.82% against a WACC of 5.00%, producing a ROIC to WACC ratio of -114.95. ThermoGenesis Holdings and Exicure also have negative ROIC to WACC ratios. Acutus Medical’s ROIC is -0.24% with a WACC of 16.09%, resulting in a ROIC to WACC ratio of -0.01. (FMP)
Wells Fargo: The Federal Reserve has lifted the $1.95 trillion asset cap on Wells Fargo, enabling the bank to expand its balance sheet and resume lending activities. The asset cap, imposed in 2018, limited deposit growth, hindered trading and balance sheet usage, and forced strategic trade-offs, including reducing lines of business. Wells Fargo intends to focus on expanding commercial deposits; reinforcing trading and capital markets; and selective asset purchases, including residential mortgages and commercial real estate pools. Key metrics to monitor include Return on Assets (ROA), Net Interest Margin (NIM), and the Efficiency Ratio. Management is expected to pursue incremental rather than aggressive growth, and regulatory scrutiny remains. Investors can track progress via SEC filings and the Ratios (TTM) API, looking for improved NIM and ROA. (FMP)
Wells Fargo: The U.S. Federal Reserve announced on Tuesday that Wells Fargo will no longer have to operate under a $1.95 trillion asset cap the regulator imposed on the bank in 2018 following its long-running sales practices scandal. (Reuters)
Xpeng Inc / Huawei: Xpeng Inc (NYSE: XPEV, HK: 9868) shares rose in Hong Kong trade on Wednesday following a strategic cooperation announcement with Huawei. Xpeng’s Hong Kong shares surged to HK$80.45, closing up 2.9% at HK$79.10, exceeding the Hang Seng index’s 0.8% gain. Year-to-date in 2025, Xpeng shares have increased by 76%. The partnership involves incorporating Huawei’s heads-up display (HUD) technology into Xpeng vehicles. Xpeng launched a mass-market car in 2024 and an updated flagship X9 in April. (FMP)
