Category: Business

A major diabetes technology company has successfully launched on the stock market, generating significant investor interest on Thursday.

MiniMed, which operates as the diabetes-focused division of medical device corporation Medtronic, announced it successfully completed its initial public stock offering in the United States, bringing in $560 million from investors.

The public offering marks a significant milestone for the diabetes technology sector, as MiniMed transitions from being a subsidiary to operating as an independent publicly-traded entity.

Clothing retailer Gap Inc. became the latest major company to sound the alarm about import tariff impacts, projecting annual earnings below Wall Street expectations and causing its stock to tumble 7% in after-hours trading Thursday.

The retailer behind Old Navy and Gap stores said its yearly financial projections don’t factor in recent Supreme Court decisions regarding tariffs under the 1977 International Emergency Economic Powers Act or temporary duties implemented by President Donald Trump.

“Changes in global tariff rates in 2025 had a substantial impact on our profits,” Gap’s Chief Financial Officer Katrina O’Connell stated during an earnings conference call.

The company anticipates a 200-basis-point hit to its current quarter’s gross profit margins due to U.S. import duties.

Industry analyst Sky Canaves from eMarketer explained the broader challenge: “U.S. trade policy uncertainty is the single biggest force behind the sector-wide pressure.”

Canaves added: “The latest threats to bring tariffs back to the pre-ruling levels are sowing unease about apparel companies’ ability to absorb or pass on the costs.”

Gap isn’t alone in facing these challenges. Competitors American Eagle and Abercrombie & Fitch, along with footwear company Steve Madden, have similarly reported tariff-related pressures affecting their profit margins and business strategies.

According to Gap’s 2024 annual filing, roughly 46% of the company’s merchandise comes from Southeast Asian nations including Vietnam and Indonesia, regions that faced duties last year. The retailer has been working to diversify its supply chain and has increased prices on certain items like denim to counter the tariff effects.

The company, famous for its jeans and casual wear, projects annual adjusted earnings between $2.20 and $2.35 per share, mostly falling short of the $2.32 average analyst prediction compiled by LSEG.

Despite the challenges, Gap announced a $1 billion stock buyback initiative.

During the holiday shopping period, Gap’s same-store sales increased 3%, slightly missing the anticipated 3.08% growth as consumers, especially those with lower incomes, hunted for deals and postponed discretionary purchases.

Following industry trends, Gap has significantly boosted its advertising investments to draw customers. The company plans to spend approximately $650 million on capital expenditures for the full year, up from $470 million in 2025.

The Athleta brand continued struggling with declining sales for the fifth consecutive quarter as management works on a turnaround strategy.

Gap reported quarterly revenue of $4.24 billion, meeting analyst expectations, though earnings per share came up one cent short of projections.

The private equity company that controls Dunkin’ is exploring the possibility of taking the coffee chain’s parent company public in a move that could generate approximately $2 billion, according to a Bloomberg News report published Thursday.

Roark Capital is evaluating an initial public offering for Inspire Brands, which operates Dunkin’ along with other restaurant chains, sources familiar with the discussions told Bloomberg. The potential stock market debut could happen as early as this year if the company moves forward with the plan.

The report could not be independently confirmed by Reuters at the time of publication.

Federal aviation officials are pushing for more dramatic reductions in daily flight operations at Chicago’s O’Hare International Airport this summer, according to industry sources who spoke with Reuters on Thursday.

The Federal Aviation Administration initially proposed limiting daily operations to 2,800 flights last week, representing a decrease from the planned 3,080 summer flights but still higher than last summer’s 2,680 operations. However, sources indicate the agency now wants to cap daily flights at approximately 2,500, though this figure remains under negotiation.

Aviation officials conducted their first schedule reduction meeting on Wednesday with top executives from United Airlines, American Airlines, and other major carriers. Another session is planned for next week, with the FAA emphasizing that additional cuts are necessary to prevent operational disruptions.

The proposed summer schedules would establish 2026 as O’Hare’s most congested season on record. Agency officials stated last week that the “increase is significant and would stress the runway, terminal, and air traffic control systems.”

Representatives from the FAA, United, and American all refused to provide comments regarding the ongoing discussions.

United Airlines has scheduled 780 daily flights from O’Hare for this month, a substantial jump from the 541 average daily operations last year. The carrier announced plans to boost its mainline departures by 20% compared to the previous summer.

American Airlines revealed in December its intention to introduce 100 additional daily departures to more than 75 destinations from O’Hare in preparation for spring break travel. This represents a 30% surge in spring departures versus 2025, with daily operations climbing from 484 last summer to 526 this summer.

In internal communications this week, American criticized United’s “reckless” scheduling approach at O’Hare, warning it would result in “long taxi times, extensive tarmac delays, missed customer connections, disrupted crew sequencing and cascading disruptions across the system.”

United responded last week by expressing appreciation for the FAA and Transportation Department’s coordination efforts, stating they share “their commitment to running a safe and reliable operation” at O’Hare.

The flight reduction plan targets the summer travel period, which begins March 29 and continues through October 25.

A Missouri judge has granted preliminary approval to a massive $7.25 billion class action settlement aimed at resolving cancer claims against Roundup weedkiller, but the agreement contains several mechanisms designed to discourage plaintiffs from rejecting the deal.

The settlement structure includes financial penalties for attorneys whose clients opt out in large numbers, plus a provision allowing Bayer to reduce the total payout if too many people walk away from the agreement.

Under the terms, lawyers who represent more than 25 clients who reject the settlement will lose their eligibility for any legal fees from the case. Additionally, if more than 650 plaintiffs opt out, Bayer can subtract up to $400 million from the overall settlement fund.

Judge Timothy Boyer in St. Louis provided the preliminary approval on Wednesday for the deal covering thousands of current and potential future claims that allege the popular herbicide causes cancer.

Bayer, which owns Roundup manufacturer Monsanto, retains the authority to cancel the entire agreement if what it considers an “excessive” number of plaintiffs choose to opt out, though the company has not publicly defined that threshold.

Attorney Christopher Seeger, who participated in settlement negotiations, defended the fee restrictions. “The whole concept of class action (legal) fees is you’re providing a common benefit to everyone,” Seeger explained. When class members opt out, they’re “exposing the deal to risk – and that should be taken into account.”

The opt-out process itself has drawn criticism for its complexity. Plaintiffs must meet 11 separate requirements by June 4, including providing wet-ink signatures, government photo identification, and sworn statements.

Attorney Asim Badaruzzaman, who was not involved in the settlement negotiations, described the process as a “confusing maze” that “appears designed to trap cancer patients” in the settlement.

Bayer currently faces approximately 65,000 claims in state and federal courts alleging that Roundup exposure led to non-Hodgkin lymphoma. The company stated in a February 17 announcement that it agreed to the settlement “solely to contain the litigation.”

The pharmaceutical giant maintains that extensive research spanning decades demonstrates Roundup and its primary component glyphosate pose no danger to human health. While Bayer has won several recent court battles, plaintiffs have also secured significant victories, including a $2.1 billion Georgia jury award in 2025 and a $332 million California verdict in 2023.

Settlement amounts vary based on multiple criteria. According to plaintiffs’ attorneys, a younger individual with aggressive non-Hodgkin lymphoma who used Roundup professionally could expect approximately $165,000, while someone first diagnosed at age 78 or older would receive around $10,000.

The agreement requires plaintiffs’ lawyers to make their “best efforts” to recommend the settlement to clients while maintaining their “independent judgment” in providing legal advice.

One factor supporting acceptance of the settlement is an upcoming Supreme Court review that could significantly restrict future litigation. The high court will hear Bayer’s argument in April that federal regulations override state law claims regarding Roundup labeling requirements.

Seeger acknowledged that despite lawyers’ efforts to highlight the settlement’s benefits, some clients will inevitably say, “I want more, I want my day in court.” However, he expressed confidence that an “overwhelming” majority of plaintiffs will choose the guaranteed settlement payment over the uncertainty of individual litigation.

The final approval hearing is scheduled for July 9, when Judge Boyer will also review the legal fee application from settlement negotiators. The total amount designated for attorney compensation has not been disclosed in the public version of the agreement.

The U.S. Treasury Department may reveal new strategies as early as Thursday aimed at combating escalating energy costs, with potential intervention in oil futures trading among the options being considered, according to a senior White House official.

Energy prices have surged since conflict with Iran began over the weekend, as the expanding hostilities have caused disruptions to oil supplies throughout the Middle East region.

Industry experts are weighing in on the potential effectiveness of such unprecedented government action in commodity markets.

John Paisie, President of Stratas Advisors, explained the potential impact: “It could dampen speculation with traders knowing that the U.S. government is taking the opposite side – which should moderate the spike in oil prices – but it does not solve the disruption to physical supply, which is significant with the closure of the Strait of Hormuz, and there is no spare capacity outside of the Gulf.”

Paisie added: “Ultimately, if substantial oil volumes are kept off the market, financial manipulation is not going to work. Traders will continue betting on the oil price going higher – because the price should be higher.”

Phil Flynn, Senior Analyst with Price Futures Group, described the approach as innovative: “This is a very novel, think-outside-the-box move. Instead of using physical barrels to try to ease market concerns you can use futures to sell the front end of the curve and buy the back end.”

Flynn noted the unusual nature of Treasury involvement: “The Treasury’s traditional role focuses on fiscal policy, debt management, and occasional interventions in currency markets through mechanisms like the Exchange Stabilization Fund, but not in commodities like oil.”

Tony Sycamore, IG Market Analyst, expressed skepticism about long-term effectiveness: “If they go ahead and try to influence futures contracts themselves (deliverable futures contracts at that), it might create a short-term pause or spook some speculative longs, but I’d be surprised if it moves the needle meaningfully beyond a day or two.”

Sycamore emphasized market fundamentals: “The oil market is deep, global, and driven by real supply/demand fundamentals – especially with tanker traffic already choked in the Strait and trying to avoid the genuine threat of Iranian drone and other strikes. A bit of Treasury jawboning or symbolic action is unlikely to unlock or change that.”

Ed Meir, Marex Analyst, raised concerns about the risks involved: “I’m not sure what they have in mind, but if they intend to sell futures to bring prices lower, this is a big gamble and will also be an unprecedented interference in the crude oil markets.”

Meir questioned the strategy’s sustainability: “The question that comes immediately to mind is what happens if prices continue to move higher and go against a potential Treasury short position? Will they use the SPR oil to deliver against their short or just continue to post margin and ride out their position?”

Two subsidiaries of pharmaceutical giant Johnson & Johnson have reached a $65 million settlement agreement to resolve allegations that they artificially inflated prices for a heart medication by preventing generic alternatives from reaching the market.

The proposed settlement between Actelion Pharmaceuticals and Janssen Research & Development was submitted Wednesday to a federal court in Maryland, though it still requires judicial approval to move forward.

Health insurance plans, including the Government Employees Health Association and other organizations that covered Tracleer prescriptions for their members, filed the lawsuit claiming the drug manufacturers intentionally stalled generic competition for the medication.

Tracleer serves as an oral therapy for pulmonary artery hypertension, generating billions in revenue for Actelion before Johnson & Johnson acquired the company in 2017. Janssen operates as another division within the Johnson & Johnson corporate structure.

Company representatives have not yet provided a response to requests for comment regarding the settlement.

Sharon Robertson, representing the plaintiffs as lead counsel, stated the agreement will deliver “meaningful relief” to the group of third-party insurance providers who purchased both brand-name Tracleer and its generic equivalent across nearly ten years.

While agreeing to the financial settlement, the defendant companies have maintained their innocence and rejected any admission of wrongdoing. The original legal challenge was initiated in 2018.

According to the lawsuit, the pharmaceutical companies prevented competitors from obtaining necessary Tracleer samples, which “effectively blocked competitors from bringing a competing generic product to market for a period of time.”

The settlement encompasses Tracleer transactions across 31 states, Washington D.C., and Puerto Rico spanning from December 2015 through September 2024.

Legal representatives for the plaintiffs indicated they will request approximately one-third of the total settlement amount, roughly $21 million, to cover attorney fees and litigation costs.

The legal case is formally titled Government Employees Health Association v. Actelion Pharmaceuticals Ltd et al, filed in the U.S. District Court for the District of Maryland under case number 1:18-cv-03560-GLR.

America’s postal system faces a looming financial crisis that could leave it unable to pay workers or suppliers by February 2027, according to the nation’s top postal official.

Postmaster General David Steiner issued the stark warning during a recent interview with The Associated Press, explaining that the agency needs Congress to remove a borrowing restriction that has limited the Postal Service since 1990.

“How long are employees going to work and vendors going to show up if we’re not paying them?” Steiner questioned during Wednesday’s interview.

Steiner is set to appear before congressional lawmakers this month to discuss the agency’s mounting financial troubles and advocate for changes to what he describes as restrictive regulations. The borrowing ceiling currently stands at $15 billion and has remained unchanged for more than three decades.

Operating as an independent federal agency, the Postal Service relies primarily on stamp sales and service fees for funding rather than direct government appropriations. Steiner argues this creates an unfair burden, requiring universal delivery six days weekly without the financial backing other government services receive.

“We have to have a conversation with the American public,” Steiner explained. “If you want us to deliver everywhere, every day, we’ll do it. That’s not a problem. But who is going to pay for it?”

The current postmaster general, who previously served as CEO of America’s largest waste management company and sat on FedEx’s board of directors, assumed leadership of the struggling agency last July. He believes increasing the borrowing authority represents the most immediate solution lawmakers could provide.

“That will buy us the time to make the fixes we need to make, and we can sail on down the road,” he stated.

Steiner has proposed expanding revenue streams, particularly through increased last-mile delivery partnerships. This service involves transporting packages from local distribution facilities to customers’ doorsteps, representing the most labor-intensive portion of the shipping process.

Financial records show the USPS recorded $9 billion in losses during fiscal year 2025, despite generating an additional $916 million in operating revenue – a 1.2% increase largely attributed to its Ground Advantage shipping program. The previous fiscal year saw slightly higher losses at $9.5 billion.

Beyond borrowing capacity, Steiner advocates for pricing authority that would allow the agency to set stamp costs high enough to offset operational losses. He calculates that increasing first-class stamp prices from the current 78 cents to 95 cents would resolve the service’s financial difficulties. For perspective, first-class stamps cost 47 cents just ten years ago.

However, an independent oversight body created by Congress prevents such pricing adjustments, according to Steiner.

“If the Postal Regulatory Commission adopted our pricing model, problem solved,” he remarked, noting that profitable package delivery operations could then support traditional mail services.

Steiner and other postal officials have also requested reforms to pension and retirement healthcare obligations, including permission to invest funds in instruments beyond Treasury bills.

Previous postmaster generals have spent the past twenty years requesting similar regulatory and legislative changes from Congress. While lawmakers did pass the Postal Service Reform Act in 2022, eliminating requirements to prepay retiree health benefits, other operational restrictions remained in place.

The agency has watched mail volume collapse dramatically, dropping from approximately 220 billion pieces annually to roughly 110 billion today as digital communication and online bill paying have become standard.

“Take those 110 billion and put a 78-cent stamp on them. That’s $86 billion of revenue that evaporated in 15 years,” Steiner calculated. “If either FedEx or UPS lost $86 billion of revenue, they would have no revenue.”

Rather than receiving assistance, Steiner argues that regulators and Congress have instead imposed expensive new requirements on the postal system.

“I like to say we sort of got thrown overboard on a ship into the cold water, right? And instead of throwing us a life preserver, we get thrown an anchor,” he said.

Congressional representatives who oversee postal operations did not respond to requests for comment Thursday.

Steiner admitted he underestimated the severity of the agency’s cash flow problems before accepting the position last year.

“Interestingly, I’m not sure some of the people at the Postal Service realized how dramatic it was,” he acknowledged.

Officials from both the United States and Mexico announced Thursday that bilateral trade negotiations will commence March 16, setting the stage for an upcoming comprehensive evaluation of the trade agreement that has significantly influenced both nations’ economic landscapes and maintained commercial stability amid President Trump’s fluctuating tariff strategies.

These bilateral discussions will precede the formal review of the United States-Mexico-Canada Agreement (USMCA) scheduled for later this year. The USMCA represents the most recent iteration of North American free trade pacts that originated in the early 1990s and have deeply connected the economic systems of all three nations.

While the USMCA has shielded Mexico from many of Trump’s protectionist policies by covering numerous Mexican products under free trade provisions, several items remain unprotected. Medium and heavy-duty trucks currently face a 25% tariff, while steel, aluminum and copper are subject to a 50% duty. Mexican tomatoes carry a 17% tariff.

Mexico’s Economy Secretary Marcelo Ebrard announced on X that the initial round of bilateral discussions was coordinated with U.S. Trade Representative Jamieson Greer. Ebrard indicated the talks would focus on origin requirements, production enhancement, supply chain protection and economic integration to strengthen competitiveness against other global regions.

According to Greer’s office, following the opening discussions, both nations plan to “meet regularly thereafter.”

The relationship between the three USMCA member countries has faced challenges over the past year due to Trump’s protectionist approach, creating uncertainty among markets and investors. Ebrard and fellow Mexican officials have made frequent trips to Washington for meetings with American counterparts in efforts to mitigate tariff concerns.

Additionally, Mexico and Canada are conducting separate discussions to enhance trade and security cooperation in preparation for the USMCA’s six-year review.

Federal banking authorities made clear Thursday that financial institutions will not be required to maintain extra capital reserves when working with digital securities built on blockchain technology, emphasizing their regulatory approach remains neutral toward different technologies.

The Federal Reserve, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency released updated guidance stating they will treat tokenized securities the same as conventional securities regarding bank capital requirements.

The regulatory agencies explained they issued this clarification because of growing bank interest in handling ownership rights through tokenized securities.

“The technologies used to issue and transact in a security do not generally impact its capital treatment,” the agencies stated in their announcement.

Following President Donald Trump’s supportive cryptocurrency policies and his administration’s efforts toward favorable regulations, the digital currency sector experienced significant growth last year. This momentum led companies such as Robinhood, Kraken, and Gemini to introduce tokenized stock products in European markets.

Industry advocates argue that tokenized shares — digital instruments based on blockchain that mirror traditional stocks — have the potential to transform stock markets. These instruments would enable round-the-clock trading and immediate settlement, potentially increasing market liquidity while lowering transaction fees.

Several companies have created experimental stock tokens using blockchain technology — software functioning as a distributed digital record system — though most tokenized shares connect to publicly traded companies through third-party issuers. Major firms including BlackRock and Franklin Templeton have also developed tokenized treasury offerings.

Thousands of shoppers across the United States encountered technical problems while trying to use Amazon’s website on Thursday afternoon, according to outage tracking service Downdetector.com.

By 3:26 p.m. Eastern Time, more than 20,300 people had reported difficulties accessing the popular online retailer’s services. Downdetector monitors service disruptions by gathering reports from multiple sources, though the platform notes that actual user impact numbers could differ from reported figures.

Social media users complained about various technical issues, including problems signing into their accounts, completing purchases during checkout, and navigating through product listings on Amazon’s platform.

An Amazon company representative acknowledged the widespread problems, stating: “We’re sorry that some customers may be experiencing issues while shopping. We appreciate customers’ patience as we work to resolve the issue.”

The online retail giant has not provided additional details about what caused the service interruption or when full functionality would be restored.

OMAHA, Neb. — For the first time in nearly two years, investment giant Berkshire Hathaway has returned to purchasing its own stock, while the company’s new chief executive Greg Abel voiced approval of Kraft Heinz’s choice to delay dividing into two separate entities.

Abel made a television appearance on CNBC Thursday, just days after publishing his inaugural shareholder letter since assuming leadership of Berkshire from investment icon Warren Buffett this past January. The company also filed an uncommon notification with federal securities regulators confirming it had started repurchasing shares on Wednesday, marking the first such activity since May 2024.

Last autumn when Kraft initially revealed its corporate division strategy, both Abel and Buffett raised objections due to the expenses and ongoing challenges facing certain product lines. Abel stated he supported new Kraft chief executive Steve Cahillane’s choice to postpone the separation.

“For Steve to come in and say we’re pausing it, there’s opportunities within Kraft Heinz to fix things and get the business back on track and then he’ll evaluate things. We thought that was absolutely the right approach,” Abel said.

During his CNBC interview, Abel emphasized Berkshire’s unchanged philosophy regarding share repurchases. The Nebraska-headquartered conglomerate plans to continue using portions of its massive $373.3 billion cash reserve to buy back stock when Abel and Buffett determine shares are undervalued compared to market prices. The company’s Class A stock rose over 2% Thursday, reaching $745,451.75 per share.

Abel revealed Thursday that he invested his entire $15.3 million salary for 2026 into Berkshire shares this week, pledging to maintain this practice throughout his tenure as CEO to ensure his financial interests match those of shareholders.

“As CEO, I absolutely obviously believe in Berkshire with — with the transition from Warren. And I inherited a company that has an incredible foundation. I believe in its — you know, future, the opportunities that exist there,” Abel said.

In his shareholder correspondence released last Saturday, Abel committed to maintaining the operational approach Buffett has employed over six decades. The two executives maintain regular communication as Buffett retains his chairman role and continues daily office attendance to seek new investment opportunities.

Abel confirmed this continuity includes avoiding dividend payments, as both leaders believe reinvesting company cash generates superior shareholder returns compared to distributing dividends.

The investment powerhouse controls numerous subsidiaries, including insurance companies such as Geico, the BNSF railway system, recognizable brands like Dairy Queen, multiple utility companies, and various manufacturing, retail and service enterprises including private jet company NetJets.

Beast Industries has terminated a video editor from their team this week after prediction market platform Kalshi leveled insider trading allegations against the employee.

According to Kalshi’s announcement last month, a platform user had wagered approximately $4,000 on streaming markets connected to MrBeast content with “near-perfect” results. The company discovered this user was actually a Beast Industries employee who “likely had access to material non-public information.” As a result, Kalshi imposed a two-year ban on the editor, issued a $20,000 fine, and notified federal regulatory agencies.

A representative from Beast Industries, the company established by Jimmy Donaldson, stated that the approximately 500-employee organization maintains “no tolerance for this behavior” and has launched an independent review. Company president and CEO Jeff Housenbold revealed to CNBC that he had implemented restrictions months earlier preventing MrBeast staff and Beast Games contestants from trading, referencing Donaldson’s hit Amazon Prime reality competition series.

This situation draws YouTube’s largest channel, known for Donaldson’s elaborate stunt-based content featuring substantial cash prizes, into ongoing discussions about prediction market regulation and whether such platforms constitute gambling. Kalshi operates as one of multiple popular services enabling users to bet on potential event outcomes, with wagering options spanning from Super Bowl entertainment to international political developments.

The Beast Industries representative urged Kalshi and similar platforms to share their investigative results more transparently. Housenbold, who formerly served on Caesars Entertainment’s board of directors, described prediction markets as “ripe for abuse” during CNBC’s “Squawk Box” program last week. He noted these platforms strongly resemble gambling operations, emphasizing that government officials must make the final classification decision.

Federal oversight of prediction markets currently falls under the Commodity Futures Trading Commission rather than state gambling regulatory bodies. Industry critics argue both prediction market operators and regulators should strengthen measures preventing insider trading violations.

“You could be a third-party cameraman on set and know what the first song in the rehearsal is for a singer. You can be the person reviewing a script and knowing what the end result is,” Housenbold explained. “There’s so much information out there and it’s asymmetric and people are taking advantage of that.”

SAN FRANCISCO (AP) — Tesla CEO Elon Musk took the witness stand Thursday in a San Francisco courtroom, standing by his controversial statements made before his $44 billion acquisition of Twitter in 2022. The billionaire faces accusations from investors who claim his public comments deliberately misled them and resulted in significant financial losses.

The legal battle stems from a class-action suit filed shortly before Musk’s takeover of the social media platform, which he later rebranded as X. The deal was finalized in October 2022, half a year after Musk initially agreed to purchase the struggling company at $54.20 per share.

Shareholders who sold their Twitter stock between May 13 and October 4, 2022, are represented in the lawsuit. They argue that Musk intentionally violated federal securities regulations through strategic moves designed to lower the company’s share value, hoping to either abandon the purchase entirely or negotiate a reduced price.

During his second day of testimony, Musk maintained his position that Twitter harbored significantly more fraudulent and spam accounts than the company’s official disclosure of 5 percent in regulatory documents.

The issue of automated accounts and fake profiles on Twitter predated Musk’s acquisition negotiations. In 2021, the company agreed to pay $809.5 million to resolve allegations that it had inflated its user growth statistics and monthly active user counts. Twitter had also regularly reported its bot estimates to the Securities and Exchange Commission over multiple years, acknowledging that their calculations could potentially underestimate the actual figures.

However, Musk and certain independent analysts contend the actual percentage was far greater, reaching at least 20 percent. During his testimony, Musk described claiming the bot percentage was at minimum this level as equivalent to “saying the grass is green or the sky is blue.”

NEW YORK — Investment banking giant Morgan Stanley is eliminating approximately 2,500 positions as the financial industry continues widespread workforce reductions this year.

The job cuts represent about 3% of Morgan Stanley’s total staff and are happening throughout the investment banking operation, according to a source familiar with the situation who spoke anonymously since the company isn’t publicly discussing the reductions.

Similar to other financial firms, Morgan Stanley expanded rapidly during the coronavirus pandemic, growing from 60,000 workers in 2019 to 82,000 by the close of 2022. The firm employed 83,000 people at the end of 2025.

Already in the first two months of this year, tens of thousands of positions have been eliminated across various industries, with many affecting white-collar workers. Financial companies haven’t escaped this trend.

Both Citigroup and BlackRock have reportedly reduced their employee numbers, and last week financial technology firm Block — parent company of Cash App and Square — announced plans to eliminate 40% of its staff. Although Block founder Jack Dorsey attributed the cuts to artificial intelligence-driven productivity improvements, industry analysts pointed out that Block had essentially tripled its workforce between 2019 and 2025, expanding from 3,800 to 12,000 employees.

Morgan Stanley’s workforce reduction won’t affect the company’s financial advisors, though the firm is reducing support staff within its lucrative wealth management operations.

The Wall Street Journal initially broke the story about Morgan Stanley’s layoffs on Thursday.

The streaming service Netflix announced Thursday its purchase of InterPositive, an artificial intelligence technology company for filmmaking established by Oscar-winning actor and director Ben Affleck.

The companies did not reveal how much Netflix paid for the acquisition.

Entertainment companies are increasingly embracing artificial intelligence for creating content and developing stories, marking a significant shift from Hollywood’s previous worries about AI threatening creative positions and copyright protections.

Disney made headlines recently when it revealed plans to let OpenAI incorporate characters from Star Wars, Pixar and Marvel properties into the company’s Sora AI video creation platform.

Netflix Chief Content Officer Bela Bajaria emphasized the company’s philosophy on AI integration: “We believe new tools should expand creative freedom, not constrain it or replace the work of writers, directors, actors, and crews.”

This marks Netflix’s first major acquisition since withdrawing from the competitive bidding process for Warner Bros Discovery’s studio and streaming properties, which ultimately went to Paramount Skydance.

The “Argo” director and star established InterPositive in 2022, developing artificial intelligence systems that can comprehend visual storytelling principles and maintain editorial continuity while adhering to filmmaking standards despite production obstacles like missing footage or poor lighting conditions.

Affleck explained his company’s approach to responsible AI development: “We also built in restraints to protect creative intent, so the tools are designed for responsible exploration while keeping creative decisions in the hands of artists.”

As part of the deal, Affleck will take on a senior advisory role at Netflix.

Berkshire Hathaway announced Thursday that the investment giant has started purchasing its own shares again after nearly two years without buybacks, marking a significant move by new CEO Greg Abel who took over from Warren Buffett in January.

The company initiated the share repurchases on Wednesday, ending a drought that lasted since May 2024.

These buybacks could help the Omaha-based conglomerate deploy some of its massive $373.3 billion cash reserve that accumulated while Buffett had difficulty finding attractive investment opportunities.

In a show of personal confidence, Abel revealed he purchased 21 Class A shares on Wednesday for approximately $14.6 million, using the after-tax proceeds from his $25 million annual salary. The 63-year-old executive now holds 249 Class A shares valued at roughly $182 million and indicated he intends to make similar investments going forward.

During his inaugural television interview as CEO on CNBC from New York, Abel confirmed he discussed both the corporate buybacks and his personal stock purchases with Buffett beforehand.

These announcements could help address investor worries that Berkshire has been overly conservative with its capital allocation, while demonstrating Abel’s deeper financial commitment to the trillion-dollar enterprise.

Buffett, now 95, continues as chairman and maintains virtually his entire wealth in Berkshire shares. Abel previously received $870 million in 2022 when he sold his 1% ownership in Berkshire Hathaway Energy back to the parent company.

Berkshire stock climbed 1.5% during morning trading Thursday. However, through Wednesday’s close, the shares had underperformed the S&P 500 by more than 30 percentage points over the 10 months since Buffett’s surprise announcement of stepping down as CEO.

The conglomerate’s vast holdings encompass Geico insurance, BNSF railway, numerous industrial and manufacturing operations, consumer brands like Duracell and Fruit of the Loom, plus a $297.8 billion stock portfolio dominated by Apple shares.

Abel explained to CNBC that the company repurchases stock when management believes the true worth of shares surpasses their trading price, generating long-term shareholder value.

“With the transition of leadership,” Abel noted, it was crucial to announce the resumption of buybacks. While Berkshire typically reports repurchases quarterly, Abel characterized this disclosure as a special one-time communication.

CFRA Research analyst Cathy Seifert called the buybacks a “positive signal” following Monday’s sharp stock decline – the worst single-day drop since Buffett’s departure announcement.

“For that near-term positive to be sustained, we’ll have to see improvement in Berkshire’s underlying fundamentals,” she said.

Abel emphasized that increasing his personal stake helps synchronize his interests with shareholders for the long haul. He expressed his intention to serve as CEO for two decades.

Berkshire stands apart from most major corporations by not offering equity compensation or stock option programs.

“The whole idea is: our shareholders are owners, use their after-tax dollars to buy Berkshire, I’ll do the same,” Abel said. “No one else in corporate America does this.”

The company maintains its policy of not paying dividends, with Abel stating none are planned for the foreseeable future.

Abel also addressed escalating legal battles involving Berkshire subsidiary PacifiCorp over September 2020 Oregon wildfires, where plaintiffs allege the utility failed to deactivate power lines.

PacifiCorp confronts $50 billion in potential liability beyond already settled cases, prompting S&P Global to warn Monday of a possible downgrade to junk bond status.

Abel stated that “any time we’re responsible for something, we’re willing to take absolute responsibility,” but emphasized PacifiCorp must resist covering damages from lightning-caused fires.

“We’re sorry, absolutely, that these people’s lives have been impacted,” Abel said. “We feel for them. But that’s not the utility’s responsibility to take on those costs and obligations. So that’s where we’re drawing the line.”

Delta Airlines unveiled sweeping changes to its executive leadership structure Thursday, repositioning key executives as the airline prepares for the departure of a veteran operations leader.

The airline announced that Chief Financial Officer Dan Janki will transition to the role of chief operating officer, while Peter Carter receives a promotion to president. These organizational shifts become effective April 1.

The leadership transition stems from the upcoming retirement of John Laughter, who has overseen Delta’s daily operations and its TechOps maintenance division. Laughter will continue with the airline until April 30.

CEO Ed Bastian praised Laughter’s contributions, noting he played a crucial role in rebuilding the TechOps division following Delta’s 2005 bankruptcy proceedings, managed the integration with Northwest Airlines, and navigated the company’s operations during the COVID-19 pandemic.

In his new position, Janki will oversee significant operational areas including flight operations, cabin service, booking systems, customer support, and safety protocols. Erik Snell, currently serving as chief customer experience officer, will step into Janki’s former finance position.

Carter’s expanded presidential role will encompass enterprise strategy alongside his existing oversight of global policy, legal affairs, Delta’s international operations, property management, and sustainability initiatives.

Additional executive moves include Alain Bellemare taking on the chairman role for Delta TechOps, while Chief Marketing Officer Alicia Tillman will be leaving the company. Ranjan Goswami will expand his duties as chief marketing and product officer.

Bastian emphasized that these organizational changes demonstrate Delta’s leadership capabilities and commitment to developing executives who will lead the airline’s future growth.

These adjustments continue reshaping Delta’s senior management team following the retirement of President Glen Hauenstein last month, who had developed the airline’s premium-focused business approach.

Despite the executive changes, Bastian has stated publicly that he has no retirement plans and expects to continue leading Delta for years to come.

A leading cryptocurrency trading platform has reached a massive $25 billion valuation after securing investment from the parent company of the New York Stock Exchange, according to an announcement Thursday.

OKX, which ranks among the world’s top cryptocurrency exchanges, received the minority investment from Intercontinental Exchange (ICE), demonstrating how established Wall Street firms are rapidly building digital currency capabilities as cryptocurrencies become increasingly integrated into traditional finance.

The partnership includes several strategic components that will benefit both organizations. ICE plans to license cryptocurrency pricing data from OKX and create federally regulated futures contracts based on that information. Meanwhile, OKX will distribute ICE’s U.S. futures and tokenized equity markets to its global user base of over 120 million people.

This investment represents ICE’s continued expansion into digital assets, following its recent stake in Polymarket, currently the world’s biggest prediction market platform. The company previously invested early in Coinbase, another major cryptocurrency exchange.

Industry experts suggest the cryptocurrency sector may be approaching a significant turning point that could signal the end of the recent market downturn, particularly after President Donald Trump expressed support for the Clarity Act legislation earlier this week.

However, OKX Global Managing Partner Haider Rafique expressed some concerns about regulatory timing. “There was a time window to get Clarity done. It’s looking more and more challenging as time goes by and we get closer to midterms. Maybe we should have accepted the market structure bill and then pushed amendments later on,” Rafique told Reuters.

The cryptocurrency industry achieved another milestone this week when rival exchange Kraken’s banking division became the first U.S. digital asset bank to access the Federal Reserve’s payment system through a limited-purpose account. This development marks a significant victory for an industry that has spent years seeking access to the Fed’s extensive payment infrastructure.

Rafique indicated OKX may pursue similar banking capabilities in the future. “I think it’s very likely we will go in that direction in the future, and I hope it doesn’t take us six years to do it,” he said.

The OKX valuation significantly exceeds recent market newcomers Bullish and Gemini, highlighting the premium investors place on established cryptocurrency platforms. As part of the agreement, ICE will receive a board seat at OKX, though financial terms of the investment were not disclosed.

WASHINGTON, March 5 – A senior Federal Reserve official warned Tuesday that ongoing inflation concerns combined with robust employment figures could force the central bank to reconsider its policy approach, especially as international tensions threaten to drive consumer costs even higher.

Tom Barkin, who leads the Richmond Federal Reserve, told Bloomberg Television that recent economic indicators suggest a notable change from conditions that previously supported rate reductions. “The sense that the risks of the labor market were up while the risk to inflation were down” guided previous Fed rate cuts, Barkin explained. “The data that’s come in over the last couple months suggests it has moved in the other direction.”

Looking ahead to upcoming economic reports, Barkin expressed particular concern about inflation trends that show little sign of cooling. “With the PCE numbers that we’re expecting next week, you’ve got a couple months of relatively high inflation. That certainly puts pause to any conclusion that we’re done fighting this,” he stated, referencing the anticipated Personal Consumption Expenditures report that economists expect will show inflation remaining roughly one percentage point higher than the Fed’s 2% goal.

Recent Middle East unrest has prompted investors to seek financial shelter, sparking fresh discussion about which investments truly provide security during uncertain times.

The decision has become more complex as conventional safe investments are acting erratically. Gold prices have fluctuated dramatically while the U.S. dollar – which lost favor over the past year – has made a comeback.

Here’s how popular safe-haven options are performing:

U.S. DOLLAR SHOWS STRENGTH

Among protective investments, the American dollar has likely delivered the strongest performance this week.

The dollar index, measuring the U.S. currency against six international counterparts, has risen 1.5%. The greenback has even strengthened against the Swiss franc and Japanese yen, currencies that usually excel during market uncertainty.

This performance stands out because the dollar weakened when stocks dropped during last April’s trade disputes, casting doubt on its protective qualities.

Flow data indicates demand centers on short-term dollar cash rather than other dollar-denominated investments.

America’s position as a net energy exporter means crises that push benchmark Brent crude oil above $80 per barrel should provide support.

“The dollar has some safe-haven characteristics, but it is context specific,” said James Lord, Morgan Stanley’s head of FX strategy.

However, this won’t always hold true, he noted, as U.S. policy uncertainty has weakened the currency’s protective appeal.

GOVERNMENT BONDS LOSE APPEAL

Government bonds have failed to draw the protective investment flows usually seen during geopolitical disruptions, with traders focusing more on inflation expectations than defensive characteristics.

Budget concerns, including Germany’s easing of debt restrictions and broader anxieties about increased government borrowing, have overshadowed safe-haven attraction.

German 10-year bond yields, the eurozone standard, have climbed 14 basis points this week.

“Germany is a flight-to-quality kind of investment, but you don’t really want to be playing around at the long end of the bull market if they’re raising more debt,” said Bryn Jones, Rathbones’ head of fixed income.

GOLD MAINTAINS CREDIBILITY

Gold’s reputation as a protective investment remains strong, evidenced by its 240% increase this decade.

The precious metal has shown volatility, dropping significantly Tuesday. Experts believe this occurred partly because investors sold well-performing assets to offset losses elsewhere, as Middle East conflict concerns damaged market confidence.

This shouldn’t undermine gold’s protective status, which stays solid given inflation concerns, geopolitical tensions, and high debt levels, analysts say.

State Street reported gold remains under-represented in portfolios, with gold exchange-traded fund allocations below 1% of global fund assets, under the 5-10% range they recommend for strategic allocation.

“As a base case, $6,000 is more likely than $4,000 this year, and we’re just above $5,000,” said Aakash Doshi, State Street Investment Management’s head of gold strategy. “That’s a clear point to make.”

TRADITIONAL CURRENCY REFUGES TESTED

The Swiss franc and Japanese yen, historically considered currency shelters, have declined 1.2% and 0.8% this week.

“The one that looks relatively attractive from a valuation perspective is still probably the Japanese yen. It stands out to me as one that can provide protection in this environment,” said Justin Onuekwusi, chief investment officer at St. James’s Place.

Political uncertainty has added risk to the yen’s outlook following reports that Japanese Prime Minister Sanae Takaichi has expressed concerns about additional interest rate increases.

Meanwhile, experts warn the franc’s potential gains may be limited, given the Swiss National Bank’s warning that it’s prepared to intervene against excessive strength.

“Elevated SNB intervention risks would likely diminish its haven attributes during the current shock,” said Goldman Sachs strategist Teresa Alves.

DEFENSIVE STOCKS DISAPPOINT

Stocks typically struggle during market stress, though certain defensive sectors like utilities or consumer staples usually see smaller losses.

This pattern hasn’t emerged this time.

The S&P utilities and consumer staples sectors have dropped 1% and 2.8% respectively this week, while the S&P 500 remains unchanged. In Europe, utilities fell 3% and consumer staples declined 4.5% compared to the STOXX 600’s 3% drop.

This partly reflects their previous strong performance. One major investment trend, at least before the conflict began, involved purchasing “hard assets” like infrastructure and industrial companies.

More generally, defensive value stocks have outperformed growth stocks, with some achieving strong results.

“When you’re investing in the classically defensive sectors at the level of current interest rates, you have to be much more disciplined about relative prices,” said James Bristow, portfolio manager at Templeton Global Investments.

“I own shares in Pepsi, for example, … (it) isn’t the highest quality company, but the starting point was very low … that’s a different margin of safety from if you’re buying shares in, say, Nestle.”

WASHINGTON — Weekly unemployment benefit applications across the United States held steady last week, maintaining the same level as the prior week and signaling that job cuts continue at historically minimal rates.

Applications for unemployment assistance during the week that concluded February 28 remained at 213,000, matching the previous week’s total, according to Thursday’s Labor Department data. Economic experts polled by FactSet had predicted 215,000 new claims would be filed.

Weekly unemployment applications serve as an indicator of layoff activity nationwide and provide near real-time insight into employment market conditions.

Earlier this month, Labor Department figures showed American businesses created an unexpectedly robust 130,000 positions in January while the jobless rate dropped from 4.4% to 4.3%. Nevertheless, government adjustments slashed 2024-2025 employment numbers by hundreds of thousands, bringing last year’s job creation total down to merely 181,000. This represents roughly one-third of the initially reported 584,000 and marks the poorest performance since 2020’s pandemic year.

February employment statistics will be released by the government on Friday.

Although weekly job cuts have stayed within a historically modest range of 200,000 to 250,000 over recent years, several prominent corporations have declared workforce reductions lately, including UPS, Amazon, Dow and the Washington Post in recent weeks.

The Labor Department also disclosed recently that available positions dropped in December to their lowest point in over five years.

Currently, America’s employment landscape appears trapped in what economic analysts describe as a “low-hire, low-fire” condition that has maintained unemployment at historically minimal levels while making it difficult for jobless individuals to secure new employment.

Information from the past year has generally shown a job market where recruitment has clearly decelerated, hampered by uncertainty driven by President Donald Trump’s tariffs and the continuing impact of elevated interest rates the Federal Reserve implemented in 2022 and 2023 to control pandemic-related inflation spikes.

Economic experts remain divided on whether January’s better-than-anticipated job growth represents an isolated occurrence or potentially signals the beginning of employment market recovery, which might prompt the Fed to postpone additional reductions to its benchmark interest rate.

Certain Fed officials have specifically contended that last year’s sluggish hiring demonstrates that borrowing expenses are hampering growth and discouraging business expansion. Consistent improvement in hiring could challenge this perspective.

Thursday’s Labor Department data revealed that the four-week rolling average of unemployment claims, which eliminates some weekly fluctuations, decreased by 4,750 to 215,750.

The overall count of Americans seeking jobless benefits for the prior week ending February 21 increased by 46,000 to 1.87 million, according to government figures.

Delaware workers are seeing mixed signals in the job market as new unemployment benefit filings held steady last week, while nationwide layoffs saw a dramatic decrease in February, according to federal data released Thursday.

The Labor Department reported that first-time unemployment benefit applications remained at 213,000 for the week ending February 28, matching the previous week’s seasonally adjusted figure. Economic forecasters had anticipated claims would reach 215,000.

Employment conditions are showing signs of recovery following last year’s challenges, which analysts attributed to economic uncertainty created by former President Trump’s widespread tariff policies implemented through emergency powers legislation.

After the Supreme Court overturned those import duties, Trump responded by implementing a 10% worldwide tariff, later announcing plans to increase it to 15%.

The Federal Reserve’s latest Beige Book assessment released Wednesday indicated that employment levels were “generally stable in recent weeks as seven of the twelve districts reported no change in hiring.” The report also noted that “contacts in several districts cited rising nonlabor input costs, softer demand, or uncertainty about overall economic conditions as reasons for flat or lower employment levels.”

Economic analysts remain hopeful that job market conditions will strengthen throughout the year as tax reduction measures boost consumer spending.

Data from Challenger, Gray & Christmas, an international job placement company, revealed that American companies announced 48,307 position eliminations in February, representing a 55% decrease from January and a 72% drop compared to the same period last year. While hiring intentions jumped 140% from the previous month, they remained 63% below February of last year.

Limited hiring activity means workers who lose their positions may face extended periods without employment.

The report showed that 1.868 million people continued receiving unemployment assistance beyond their first week of benefits during the week ending February 21, an increase of 46,000 from the prior period.

Recent college graduates don’t appear in unemployment claims statistics since their limited employment history makes them ineligible for jobless benefits. These weekly figures won’t influence Friday’s February jobs report since they fall outside the survey period.

Economic experts predict February will show an increase of 59,000 nonfarm jobs following January’s gain of 130,000 positions, with the unemployment rate expected to remain at 4.3%.

A Colorado aerospace company announced Thursday it has secured $550 million in new investment, bringing its total valuation to $8 billion as financial backers increasingly focus on defense and space technology amid rising global tensions.

Sierra Space completed what it calls a Series C funding round, driven by growing investor interest in national security assets and commercial space infrastructure development. The space industry is experiencing increased capital investment, particularly for companies holding government contracts and demonstrated manufacturing capabilities.

LuminArx Capital Management spearheaded the investment round, joined by previous investors General Atlantic, Coatue, Moore Strategic Ventures, and Andalusian Private Capital, according to the company’s announcement.

Based in Louisville, Colorado, Sierra Space has established itself as a major provider of satellite technology, space transport systems, and defense equipment for U.S. national security agencies. The company previously completed a $290 million Series B funding round in 2023, which established its value at $5.3 billion.

Company officials say the new funding will boost manufacturing capabilities and advance technology development for defense and intelligence operations.

“As we scale, our priority remains strengthening national security capabilities while delivering the discipline, reliability, and performance our government and commercial partners depend on,” CEO Dan Jablonsky exclusively told Reuters.

Government agencies increasingly rely on space-based technology for intelligence collection, secure communications, and other essential defense operations as they pursue enhanced resilience and immediate data access.

Sierra Space has secured major government agreements, including a $450 million contract to construct more than four satellites for a national security client and a Space Development Agency deal potentially worth up to $740 million.

The company is also advancing its reusable Dream Chaser spaceplane project, engineered to transport cargo and eventually astronauts to low Earth orbit. Sierra Space achieved important manufacturing benchmarks in 2025 and plans a test flight for late 2026.

Industry observers are monitoring SpaceX’s anticipated public stock offering, which could significantly alter competition within the space technology sector.

Chinese electric vehicle manufacturer BYD announced Thursday the debut of its advanced second-generation Blade Battery technology, featuring what company chairman Wang Chuanfu describes as “disruptive” charging capabilities in frigid conditions.

The battery breakthrough comes as BYD works to bounce back from recent declining sales figures while facing intensified competition in China’s electric vehicle marketplace.

Speaking from BYD’s Shenzhen headquarters, Wang demonstrated how the upgraded battery technology can power up from 20% to 97% capacity in under 12 minutes, even when temperatures drop to minus 20 degrees Celsius. This rapid charging provides vehicles with a driving range of 777 kilometers, equivalent to 483 miles.

According to Wang, the enhanced batteries feature improved energy density that allows BYD’s premium Denza Z9GT and Yangwang U7 vehicle models to achieve driving ranges exceeding 1,000 kilometers. The chairman noted that the battery systems have successfully completed safety evaluations that surpass China’s updated national standards.

BYD has set ambitious goals for expanding its “Flash Charging” infrastructure network to 20,000 stations by late 2026, with plans to install 2,000 of these charging points along highway corridors. The company reported having constructed over 4,000 charging stations as of March 5.

Grocery retailer Kroger released conservative financial projections Thursday as the company operates under new leadership amid challenging consumer spending conditions.

These represent the initial quarterly results presented by CEO Greg Foran, who previously led Walmart’s U.S. operations and achieved 20 consecutive quarters of comparable sales increases. Financial analysts had expressed optimism about his hiring last month.

The supermarket chain anticipates 2026 same-store sales growth, not including fuel, will range between 1% and 2%. The middle of this projection falls short of analyst expectations for 2% growth.

The company projected adjusted earnings per share will land between $5.10 and $5.30, mostly under analyst predictions of $5.29 based on LSEG data.

Kroger dismissed CEO Rodney McMullen in March 2025 after a board review determined his personal behavior breached company standards.

McMullen’s departure concluded an 11-year leadership period and created an extended executive void that concluded with Foran’s appointment in February.

Broadcom Corporation saw its stock price climb approximately 7% in pre-market trading Thursday following the company’s announcement that it anticipates artificial intelligence chip revenues will surpass $100 billion by 2027, marking its aggressive entry into a sector dominated by Nvidia.

Technology giants including Alphabet, Microsoft, Amazon, and Meta are projected to invest over $600 billion this year in artificial intelligence infrastructure development, creating increased demand for semiconductors, servers, data storage, and network hardware.

The semiconductor manufacturer plans to provide 3 gigawatts of tensor processing units for artificial intelligence applications to Anthropic by 2027, while also preparing to deliver OpenAI’s inaugural AI chip with more than 1 gigawatt capacity during the same timeframe.

These production volumes position Broadcom to compete at similar levels with recent artificial intelligence chip contracts secured by Nvidia and AMD.

Market observers remain skeptical about whether substantial AI investments will produce adequate returns to support current high stock valuations, contributing to recent steep drops among the world’s most valuable technology companies.

Year-to-date performance shows Broadcom’s shares declining roughly 8.3%, while Nvidia has fallen approximately 2%.

“The AI spend overhang will still linger, but Broadcom made a strong case for their AI revenue to outgrow the market,” analysts at Jefferies stated.

For its second quarter, Broadcom forecasts revenue of approximately $22 billion, exceeding analyst expectations of $20.56 billion according to LSEG data. The company projects AI chip revenue of $10.7 billion for the quarter.

Additionally, Broadcom unveiled a new stock buyback program worth up to $10 billion, set to run through year-end.

British travel retailer WH Smith announced Thursday that its revenue increased 5% during the first half of its fiscal year, powered by strong performance in North American markets that saw double-digit expansion.

The company expressed confidence in achieving its annual financial objectives while acknowledging concerns about how ongoing Middle East conflicts might affect traveler volumes in its primary operating regions. Company officials indicated they will keep close watch on these developing situations.

WH Smith’s North American operations, which have been recovering from previous accounting irregularities, delivered a 10% revenue increase for the six-month period ending February 28th. This growth was primarily fueled by increased sales at airport locations throughout the region.

The positive results come as the travel retail company works to rebuild confidence following earlier financial reporting issues within its North American division.

Consumer products giant Reckitt announced Thursday that it surpassed fourth-quarter sales projections, powered by exceptional performance in developing nations, while projecting 4% to 5% growth for its primary business segments through 2026.

The British company, similar to industry competitors like Nestle and Unilever, has been restructuring its brand portfolio to concentrate on higher-profit, faster-growing products. Reckitt completed the sale of its Essential Home division to private equity company Advent International for $4.8 billion on December 31, while maintaining a 30% ownership interest.

The manufacturer of well-known brands including Durex contraceptives and Lysol disinfectants announced comparable net revenue increases of 5.4% for the three months ending December 31, surpassing analyst predictions of 4.7% growth according to company-gathered forecasts.

Throughout the full year, developing market sales jumped 14.6%, creating a stark contrast with European markets, which declined 1.4%.

Developing nations, representing approximately 42% of Reckitt’s primary revenue streams, have now achieved double-digit sales increases for 10 straight quarters, according to Barclays financial analysts.

“(Emerging Markets) is doing the heavy lifting for the group and provides a reliable growth engine at a time when developed markets category growth is sluggish,” the analysts said in a note.

Company executives indicated they anticipate continued difficulties in European markets and cautioned that their seasonal over-the-counter medication business may face headwinds in early 2026 due to a milder cold and flu season than typical.

Stock markets across Asia experienced dramatic gains Thursday as investors appeared to regain confidence following signals that escalating Middle East tensions might be cooling down.

South Korea’s main stock index bounced back from heavy losses in the previous trading session, climbing more than 10% after Wall Street posted strong gains on speculation that the United States and Iran could be looking for ways to reduce hostilities. Meanwhile, oil and precious metals continued their upward trajectory.

In economic policy news, China announced its growth projections at a marginally slower rate compared to last year as part of an extensive economic blueprint that drew significant attention from global markets. However, the U.S. Senate endorsed President Donald Trump’s military operations against Iran, indicating the conflict that has disrupted financial markets, shipping routes, and energy supplies may not end quickly.

“Political tensions in volatile regions can resurface rapidly, meaning the early positive momentum we’re witnessing across Asia-Pacific stock exchanges today might not hold,” warned Paco Chow, dealing manager at Moomoo Australia and New Zealand. “Market sentiment will stay guarded until we observe energy shipments returning to standard levels.”

The broad Asia-Pacific stock measurement excluding Japan climbed 2.9% according to MSCI data. South Korea’s benchmark index dominated regional performance with its 10.4% jump, while Japan’s primary index also gained 2.9%.

U.S. Treasury bond yields moved higher, with the 10-year note yield increasing 2.7 basis points to reach 4.109%, and the 30-year bond yield climbing 3.1 basis points to 4.7479%.

The conflict between the U.S.-Israel alliance and Iran intensified significantly Wednesday following an American submarine’s attack on an Iranian naval vessel and NATO defense systems intercepting an Iranian missile aimed at Turkey.

However, stock markets in Europe and America found encouragement in Trump’s commitment to safeguard shipping operations and a New York Times article suggesting Iranian intelligence had contacted the CIA early in the conflict regarding potential resolution pathways.

Iran subsequently denied the newspaper’s account, while the Republican-controlled Senate voted against a bipartisan measure seeking to halt aerial combat operations.

Energy supply worries kept pushing petroleum prices upward. American crude oil increased 3.01% to reach $76.91 per barrel, with Brent crude climbing to $83.43 per barrel, representing a 2.49% daily gain. Gold prices in spot markets rose 0.84% to $5,178.42 per ounce.

“Headlines continue driving market behavior, and additional price swings appear likely moving forward,” explained Henry Russell, a London-based economist with ANZ, during a podcast appearance. “Energy availability remains under pressure as production sites shut down, with more closures probable if this confrontation extends further.”

Chinese officials established their economic expansion goal for 2026 between 4.5% and 5%, representing a modest reduction from last year’s 5% achievement, creating space for initiatives addressing industrial excess capacity and economic restructuring. Beijing simultaneously unveiled its 15th five-year strategy, committing to investments in innovation, advanced technology sectors, and a “significant” boost in consumer spending.

China’s premier stock index gained nearly 1% during early trading hours, while the Shanghai benchmark added 0.4%.

The U.S. dollar paused after recent increases driven by safe-haven buying. The dollar measurement against major currencies remained unchanged at 98.81.

Japan’s currency strengthened 0.2% to 156.75 against the dollar.

Digital currency markets saw declines, with bitcoin dropping 0.78% to $72,774.53 and ethereum falling 0.94% to $2,130.43.

NASHVILLE, Tenn. — Nashville’s metro council has formally registered its opposition to Elon Musk’s underground transportation project, approving a resolution Tuesday night that challenges the tech mogul’s tunnel system on multiple fronts.

Council members voted 20-15 with two abstentions to voice their objections regarding safety issues, lack of transparency, and minimal community involvement in The Boring Company’s Music City Loop proposal. While the resolution cannot halt or modify the project, it serves as an official statement of local government displeasure.

The controversy stems from July when Tennessee’s Republican Governor Bill Lee joined forces with Musk’s tunneling enterprise to announce the ambitious transportation network. The initial proposal covered 13 miles linking Nashville’s airport with the city center, later expanding to approximately 25 miles with an additional western route.

State officials promised the venture would require no taxpayer funding, though it would utilize government property near the state Capitol at no charge. Construction aims to have the first tunnel segment running by early 2027.

The transportation system would operate using specially designated Tesla cars with professional operators, featuring over 30 planned stations with room for future expansion. Company representatives indicate fares would undercut existing transit alternatives. While human drivers would initially control the vehicles, autonomous operation remains a future possibility.

Resolution sponsor Delishia Porterfield addressed her fellow council members before the vote, stating: “Colleagues, public land needs to be for public good and public infrastructure decisions must prioritize the welfare, safety and express needs of Nashville residents.”

Council member John Rutherford, who opposed the resolution, urged colleagues to separate their personal views of Musk from the project itself. He warned that rejecting the proposal could eliminate future negotiations with The Boring Company.

The Boring Company declined to provide immediate commentary when contacted.

Musk’s company currently operates a Tesla tunnel network in Las Vegas, though construction remains incomplete. Additional facilities include experimental tunnels in Texas designed for high-speed autonomous pods reaching 600 mph. While some proposed projects in other cities have been abandoned, Dubai has approved plans for an international tunnel.

The Nashville announcement faced immediate complications when Democratic Representative Justin Jones, whose district encompasses the airport, was prevented from attending the July press conference.

Boring Company CEO Steve Davis praised Nashville’s cooperation during the project launch, saying: “Nashville has been fantastic. Moved at an incredible speed, so welcoming, so kind, so so friendly.”

However, local leaders and community advocates expressed surprise at the announcement, with the council resolution questioning why city officials weren’t properly consulted about such significant changes to Nashville’s transportation strategy. This comes as the city continues implementing transit improvements following voter approval of increased transit funding in 2024.

The resolution highlights geological and environmental risks, specifically Nashville’s limestone foundation that increases sinkhole probability and affects water flow patterns. The city’s flooding history adds another layer of concern.

During a recent council session, Boring Company officials fielded questions from both council members and residents worried about environmental damage, tunnel safety, and compliance with disability access requirements.

Company representatives defended their safety record, with Vice President David Buss noting Nashville’s suitability for tunneling based on existing underground infrastructure built by other organizations. He emphasized The Boring Company’s “strong track record in safely managing variable ground conditions,” citing their Las Vegas experience.

This marks the second time a Musk-affiliated company has faced Tennessee criticism for circumventing regulations without advance warning. His xAI data center in Memphis began operations in 2024 using gas turbines that produce emissions, all without obtaining proper permits first, sparking heated public protests at city meetings.

Major financial backers of artificial intelligence company Anthropic are scrambling to resolve a bitter disagreement between the tech firm and military officials, according to seven sources with knowledge of the situation who fear the conflict could severely damage the company’s operations.

Chief Executive Dario Amodei has held conversations about the dispute with key investors and business partners in recent days, including Amazon.com’s CEO Andy Jassy, according to two individuals familiar with the discussions. Investment firms Lightspeed and Iconiq have also maintained contact with company leadership, sources revealed.

Several investors are reportedly contacting their connections within the Trump administration to help reduce tensions, two sources indicated.

The conversations center on preventing a complete prohibition of Anthropic’s artificial intelligence technology across all Pentagon contractor operations, according to those familiar with the matter.

Meanwhile, Anthropic and military officials continue limited discussions, though one source said Reuters could not confirm the specific nature of these conversations. President Donald Trump has demanded that Anthropic assist the government in eliminating its AI systems from federal use.

Amazon and the Pentagon did not provide immediate responses when contacted for comment.

The San Francisco-based AI developer and the Defense Department, recently renamed the Department of War by the current administration, have engaged in a prolonged disagreement spanning several months regarding military battlefield applications of the company’s technology. Industry observers view this confrontation as a crucial test of how much authority AI developers can maintain over their technological creations, which they believe could revolutionize educational systems, government services, and numerous other societal functions.

Military officials have urged AI companies to eliminate restrictions and instead agree to permit any lawful government use. However, Anthropic has maintained its position against allowing its Claude AI system to operate autonomous weapons systems or enable widespread domestic surveillance programs.

Among similar technology companies, Anthropic became the first to handle classified government information through a contract arrangement with cloud service provider Amazon. OpenAI announced Friday that it secured its own classified agreement with the Pentagon and stated that Anthropic should not be considered a security threat to the department.

During discussions with company executives, investors have confirmed their continued support for the San Francisco AI laboratory while simultaneously expressing their wish to reach an agreement with military officials, the seven sources said. Some financial backers told Reuters they felt frustrated that CEO Amodei had created antagonism with Pentagon leadership rather than building cooperative relationships. “It’s an ego and diplomacy problem,” explained one person briefed on the situation.

At this stage, some investors believe Amodei cannot appear to surrender to administration demands without alienating essential employees and customers who chose Anthropic specifically because of his principled position.

Amodei, who did not respond to requests for comment, has stated that Anthropic cannot “in good conscience accede to their request.” During a Tuesday evening conversation with investors, Amodei indicated the company would “continue to work to figure out a solution with the DoW.”

The investors intervening in Pentagon negotiations aim to help Anthropic avoid receiving a “supply-chain risk” classification from federal authorities, which could devastate the startup’s rapidly expanding commercial customer base.

Consumer interest has surged for Anthropic’s offerings, including its conversational AI Claude and programming tool Claude Code. On Monday, Claude ranked as the top free application download on Apple’s App Store, overtaking OpenAI’s ChatGPT.

Defense Secretary Pete Hegseth has indicated that such a risk classification would force all government contractors to cease using Anthropic’s technology throughout their entire operations. Anthropic has publicly disputed Hegseth’s statements, arguing he lacks legal authority to prevent use of its AI systems beyond defense-related contracts. The Pentagon did not respond to requests for comment regarding Anthropic’s assertion.

On Friday, Anthropic announced it would legally contest any supply-chain risk designation in federal court.

Nevertheless, some investors express concern that the confrontation might discourage potential clients who prefer to avoid any conflict with the current administration, one source noted.

These concerns arise during a pivotal period for the startup. Anthropic has secured tens of billions in funding based on ambitious projections for its business sales, which represent approximately 80% of the company’s income, according to company statements.

The outcome of future investment rounds, including a highly anticipated public stock offering, depends on Anthropic’s ability to continue expanding its commercial revenue. The company is currently allowing employees to sell shares to investors, though no final decision has been made regarding a public offering.

Anthropic’s revenue run rate, representing projected annual income based on current performance, has reached approximately $19 billion, one source revealed, increasing from $14 billion just weeks earlier.

The investor intervention occurred as multiple federal agencies began discontinuing their use of Anthropic’s technology, with the State Department switching to competitor OpenAI, following Trump’s Friday directive to eliminate Anthropic within six months.

Energy services company Baker Hughes is moving forward with plans to issue roughly $10 billion in bonds across international markets to support its major acquisition of Chart Industries, according to a Wednesday report from Bloomberg News citing informed sources.

The oilfield services giant announced last year its intention to purchase Chart Industries through a $13.6 billion cash transaction. This acquisition would expand Baker Hughes’ reach into industrial technology that serves the liquefied natural gas sector and data center operations.

According to Bloomberg’s reporting, Baker Hughes has selected Goldman Sachs Group and Morgan Stanley to lead a team of banks in organizing investor meetings scheduled for Wednesday.

The news outlet indicated that the company may subsequently launch bond offerings in both euro and dollar currencies.

Money raised through the bond issuance would substitute for a short-term lending arrangement worth up to $14.9 billion that was established last year to support the Chart Industries purchase, the report stated.

When contacted by Reuters for comment, Baker Hughes and Morgan Stanley did not provide immediate responses, while Goldman Sachs chose not to comment on the matter.

WASHINGTON, March 4 – A Federal Reserve official stated Wednesday that economic uncertainties stemming from the U.S. military confrontation with Iran should not prevent the central bank from pursuing additional interest rate reductions throughout 2024, as inflation pressures are anticipated to diminish and employment concerns persist.

During an appearance on Bloomberg Television, Fed Governor Stephen Miran explained that elevated oil costs resulting from the military action “will feed into headline inflation, but the evidence that it feeds into core inflation … is quite limited. … It is difficult for me to get very excited about a policy implication of what’s happened so far.” Miran advocated for implementing four quarter-percentage-point rate decreases this year to achieve approximately neutral monetary policy levels, though some of his more conservative Fed colleagues believe that neutral stance has already been accomplished with current rates between 3.5% and 3.75%.

Miran drew distinctions between today’s circumstances and the 2022 situation when Russia’s Ukrainian invasion triggered worldwide spikes in oil and commodity costs that contributed to widespread inflationary pressures. He emphasized that current conditions differ because monetary policy remains restrictive and fiscal policy is less expansionary, reducing the likelihood of sustained inflation.

The Fed governor also highlighted concerns about employment trends, noting officials shouldn’t overlook “two plus years of a trend of gradually weakening labor markets. … There is still evidence to me that it needs support from monetary policy,” citing challenges such as recent college graduates struggling to secure employment.

The recent large-scale U.S. and Israeli military operations against Iran have introduced additional uncertainty into Fed policy discussions that were already experiencing internal disagreement. Current inflation remains roughly one percentage point higher than the Fed’s 2% objective and has shown minimal improvement over the past year. Employment growth has significantly slowed, though policymakers remain split on whether this reflects insufficient labor demand or economic adjustment to restrictive immigration policies that have constrained worker availability.

However, January employment figures exceeded projections, with officials now awaiting February jobs data to determine if employment patterns might be improving. A recent report from private payroll company ADP showed the strongest gains in seven months, surpassing analyst expectations.

As the Iran situation potentially remains in its initial phases with U.S. officials pledging continued action until the country’s hardline government changes, Fed officials have been cautious about making definitive statements beyond acknowledging new economic uncertainties.

Cleveland Fed President Beth Hammack told the New York Times she was monitoring economic consequences from the conflict but maintained her position that the Fed should maintain current rates because inflation appears persistently elevated. Unlike Miran, who views the neutral rate as significantly lower than colleagues suggest, Hammack believes the Fed has already reached or approached neutral territory.

“We’re in a good spot from a policy perspective,” Hammack stated, adding they can “respond as new data show how the job market and prices are evolving. I think we could be on hold for quite some time.”

The Federal Reserve’s next policy meeting is scheduled for March 17-18, with expectations that rates will remain unchanged. While financial markets still anticipate two rate cuts this year, the timeline has shifted following the Iran conflict’s onset, with an initial reduction now expected at the July meeting instead of June.

The company that produces Jack Daniel’s whiskey delivered financial results that surpassed Wall Street predictions for the third quarter, driven by consistent consumer interest in its spirits and ready-to-drink products amid uncertain economic conditions.

Brown-Forman’s stock price climbed 3% during early market activity on Wednesday following the earnings announcement, while the company also kept its yearly financial projections unchanged.

The Louisville-based distiller has implemented new product development strategies, expense reduction initiatives, and operational improvements over the past year, while also expanding more aggressively into developing international markets to counterbalance declining performance in its core American spirits division.

The company saw strong consumer appetite for its higher-end whiskey products like Jack Daniel’s Blackberry among affluent buyers, particularly in countries including Brazil and Mexico.

However, Canadian stores continue boycotting American-produced alcoholic beverages due to an ongoing trade conflict from the previous year, creating difficulties for spirits producers like Brown-Forman.

The company confirmed its projected organic annual revenue decrease would remain in the low single-digit percentage range, with organic operating earnings also expected to fall within the same range.

Revenue for the three-month period ending January 31 increased 2% to reach $1.06 billion, surpassing analyst projections of $998.5 million based on LSEG data compilation.

Brown-Forman reported earnings of 58 cents per share, beating Wall Street estimates of 47 cents.

Domestic sales dropped 8% as alcohol consumption faces pressure from health-focused consumers choosing non-alcoholic beverages and energy drinks, a shift accelerated by widespread use of GLP-1 weight-loss medications. Generation Z consumers are also reducing their consumption of spirits and beer.

The company anticipates a difficult operating climate for fiscal year 2026 due to economic instability and consumer hesitancy.

Competitor Diageo reduced its annual sales outlook last month, citing consumer financial pressure as the most significant obstacle facing the industry.

Major U.S. stock exchanges started Wednesday’s trading session with gains after news emerged that Iranian officials have quietly initiated contact with American representatives about possible negotiations to resolve ongoing conflicts.

Investor confidence also received a boost from President Donald Trump’s commitments to ensure stability in oil markets, contributing to the upward momentum across trading floors.

The Dow Jones Industrial Average climbed 134.33 points, representing a 0.28% increase to reach 48,629.08. Meanwhile, the S&P 500 gained 15.1 points or 0.22% to open at 6,831.69. The technology-heavy Nasdaq Composite showed the strongest performance, jumping 104.2 points or 0.46% to 22,620.89 when markets opened.

Apple announced its newest laptop offering on Wednesday, introducing the MacBook Neo with a starting price of $599 as the tech giant seeks to capture market share in the budget-conscious computer segment while competitors struggle with memory chip shortages.

This budget-friendly laptop represents Apple’s most competitive pricing strategy for the PC market in recent memory. The MacBook Neo will run on Apple’s A18 Pro processor, the same chip that powers the iPhone 16 Pro series released in 2024.

The $599 price point significantly undercuts Apple’s previous entry-level MacBook, which launched in May 2006 at $1,099 — equivalent to approximately $1,750 in current dollars when adjusted for inflation.

Apple announced that customers may begin placing pre-orders immediately, with shipping and retail store sales commencing March 11.

“The real question is not whether Apple can sell a MacBook at this price (because it will be one of the most sold Macs ever if they can deliver), but how it balances cost, performance and brand positioning while maintaining the premium experience that defines the Mac,” Francisco Jeronimo, vice president of client devices at IDC, commented.

This isn’t Apple’s initial venture into this pricing territory. The company previously offered a $699 MacBook Air exclusively through Walmart, featuring the M1 processor that originally launched in 2020, after discontinuing other models using that chipset.

The MacBook Neo directly targets users of Google’s Chromebook devices and entry-level Windows computers, entering a market where Microsoft’s attempts to transition to more energy-efficient Arm-based processors haven’t generated significant sales momentum.

By entering the mid-tier PC market, Apple could expand its customer base to include students and consumers purchasing their first Mac computer.

Due to ongoing global memory chip supply constraints, the MacBook Neo includes 8 gigabytes of unified memory — half the amount found in M4-powered MacBooks and less than the 12 gigabytes featured in the iPhone 17 Pro.

Both global PC and smartphone markets continue to show high price sensitivity following several quarters of inconsistent consumer demand, with manufacturers still dealing with variable component pricing, especially for memory chips.

Apple also released its $599 iPhone 17e this week with expanded base storage capacity and updated its MacBook Air and Pro models with new M5 processors and standard configurations featuring increased memory, as the company works to maintain market position in competitive smartphone and declining PC markets affected by rising memory costs.

Financial regulators from the United States and United Kingdom are at odds over methods for testing digital versions of securities built on blockchain technology, with British officials advocating for more careful oversight in discussions designed to enhance cryptocurrency partnerships, according to insider sources.

The two nations established a joint working group last September focused on reducing regulatory barriers for businesses wanting to operate across both markets and strengthening digital currency cooperation.

This disagreement highlights the challenges facing financial oversight agencies worldwide as they navigate the Trump administration’s pro-cryptocurrency stance. Under President Donald Trump, the US has relaxed digital asset regulations and promoted wider cryptocurrency use.

While Britain also seeks to grow its digital currency sector, certain UK regulatory bodies like the Bank of England prefer a more measured pace of implementation.

The US and UK have reached general consensus on the working group’s primary objectives, including developing more unified regulations for stablecoins – digital currencies backed by traditional money.

However, Britain’s desire to test collaborative efforts on tokenized securities through what’s called a “sandbox” became a point of contention during regulatory meetings held earlier this year, according to two sources present at those discussions.

British financial authorities use these regulatory sandboxes to evaluate innovative financial products within controlled parameters.

During a January meeting of the Transatlantic Taskforce for Markets of the Future, a Securities and Exchange Commission official raised objections to the sandbox approach, questioning whether it would be commercially practical for participants and expressing concerns about potential negative effects on innovation, the two meeting attendees reported.

The SEC is considering an alternative method for tokenization called “exemptive relief,” which has support from America’s cryptocurrency sector, sources revealed, requesting anonymity due to the confidential nature of the discussions.

When contacted by Reuters, the SEC stated it would continue collaborating with the UK “to build consensus and harmonize rules for international market participants,” noting there was “significant opportunity to align our frameworks to support the future of finance.”

The Bank of England and UK Treasury Ministry declined to provide statements. The US Treasury Department did not respond to requests for comment.

The Financial Conduct Authority emphasized that sandboxes can provide value as both nations develop capital markets and payment systems while “maintaining trust and integrity.”

According to the FCA, regulatory sandboxes offer companies “space to test new ideas in a live but controlled environment and helping us understand emerging risks and opportunities.”

Advocates of tokenization argue it offers greater efficiency and lower costs, while regulators warn that digitized stocks present new investor risks and could undermine market stability.

Both taskforce participants also aim to establish reciprocal arrangements allowing companies regulated in one country to trade tokenized securities in the other with minimal additional oversight, the two sources indicated.

The working group plans to deliver its recommendations by summer.

WASHINGTON – February brought the strongest private sector job growth in seven months, according to a new employment report released Wednesday, though economists revised January’s figures significantly downward.

The ADP national employment report revealed that private companies added 63,000 positions last month, surpassing the 50,000 jobs economists had predicted and representing the best performance since July 2025. However, January’s job growth was revised down to just 11,000 from the previously reported 22,000.

Healthcare and education sectors drove most of the job creation, contributing 58,000 new positions. Construction companies hired 19,000 additional workers, while manufacturing businesses eliminated 5,000 jobs.

This ADP data, created in partnership with Stanford Digital Economy Lab, comes ahead of Friday’s official employment report from the U.S. Bureau of Labor Statistics. Historically, ADP numbers have not been reliable predictors of the government’s official employment figures.

Economic forecasters expect Friday’s report to show 59,000 new nonfarm jobs for February, following January’s 130,000 increase. Private sector employment is projected to rise by 65,000 after January’s 172,000 gain, while unemployment should remain at 4.3%.

Employment conditions have found their footing after last year’s instability, which economists attributed to uncertainty surrounding import duties.

The Supreme Court recently overturned President Donald Trump’s extensive tariff program, which had been implemented using emergency powers legislation. Trump responded by establishing a 10% worldwide tariff for 150 days to replace some emergency measures, later announcing plans to increase it to 15%.

The combination of stable employment and persistent inflation is likely to keep the Federal Reserve from changing interest rates at this month’s policy meeting. Energy costs have surged due to the ongoing U.S.-Israeli military conflict with Iran.

This Middle East situation has caused traders to reduce expectations for rate cuts this year, fearing it could worsen inflation. Chances for a rate reduction at the Fed’s June 16-17 meeting have dropped considerably. The central bank maintained its key interest rate between 3.50%-3.75% during January’s meeting.

Wednesday’s ADP report also indicated wage growth remained consistent. Workers staying in their current positions saw annual pay increases hold steady at 4.5%, while those switching jobs experienced wage growth of 6.3%, down slightly from January’s 6.4%.

Moderna’s stock price jumped 10% in premarket trading Wednesday after the biotech company reached a settlement agreement to end a prolonged patent lawsuit concerning the technology behind its COVID-19 vaccine, clearing the way for investors to concentrate on the company’s future drug development.

The agreement requires Moderna to pay as much as $2.25 billion to Genevant, a subsidiary of Roivant Sciences, and Arbutus Biopharma to resolve all domestic and international lawsuits claiming the company illegally utilized lipid nanoparticle technology in its coronavirus vaccine. Financial experts believe this settlement will redirect investor attention toward Moderna’s experimental cancer treatments currently in development.

“The company (now) has certainty it is well funded through multiple late-stage oncology readouts expected in 2026 that represent new long-term growth drivers,” William Blair analyst Myles Minter stated.

Under the settlement terms, Moderna will make an initial payment of $950 million in July 2026, plus a potential additional $1.3 billion depending on the results of a separate legal challenge. Importantly for the company’s future, it will not owe royalty payments for using this technology in upcoming vaccines, which industry observers view as a major victory.

Citi analyst Geoffrey Meacham noted the settlement amount was lower than Wall Street’s fears of payments exceeding $3 billion.

However, Bernstein analyst Courtney Breen warned that if the full payment becomes required, it could drain Moderna’s cash holdings to approximately $3.2 billion by 2026. The company currently projects having between $4.5 billion and $5 billion in reserves this year.

Breen explained this “narrows the tightrope” for Moderna, particularly given the uncertain timing and scope of its own patent lawsuit against Pfizer and BioNTech over mRNA technology, plus management’s history of overly optimistic projections.

The patent battles continue elsewhere, as Moderna filed suit against Pfizer and BioNTech in 2022 for allegedly violating mRNA technology patents. BioNTech responded with its own lawsuit in February, claiming Moderna’s newer COVID-19 vaccine, MNEXSPIKE, violates one of its patents.

FRANKFURT – A fresh analysis from the European Central Bank challenges widespread concerns that artificial intelligence will eliminate jobs, suggesting instead that AI adoption may actually boost employment opportunities across Europe.

The debate over AI’s impact on employment has intensified among economic experts, particularly after research from Germany’s Ifo Institute revealed that over 25% of German businesses anticipate workforce reductions due to AI implementation within the next five years.

However, findings from the ECB’s Survey on the Access to Finance of Enterprises paint a different picture, showing that businesses heavily incorporating AI technology demonstrate greater likelihood of expanding their workforce in the immediate future.

“In other words, AI-intensive firms tend, on average, to hire rather than fire,” stated the blog post, though authors noted this doesn’t necessarily reflect official ECB policy.

Companies preparing to invest in artificial intelligence also express more optimistic projections regarding future job growth, according to the analysis.

“This is true regardless of the level of planned AI investment and suggests that a pause in hiring due to investment in AI technology is also unlikely over the next year,” wrote the two ECB staff economists who authored the blog.

The researchers cautioned that long-term prospects might differ significantly. They noted that more pessimistic studies typically examine extended timeframes, and employment patterns could shift once AI begins fundamentally reshaping how companies operate and produce goods and services.

A major pharmaceutical company based in South Africa is working to bring Eli Lilly’s highly successful weight-loss medication Mounjaro to countries across sub-Saharan Africa, potentially as soon as this year.

Aspen Pharmacare’s chief executive Stephen Saad announced the expansion plans on Wednesday, highlighting the growing regional appetite for obesity treatments. The company is positioning itself as a crucial manufacturing and distribution ally for international drug companies looking to tap into one of the world’s remaining major unexplored markets for GLP-1 weight-loss medications.

These specialized weight-loss treatments remain largely unavailable throughout the African continent, creating significant growth opportunities while also testing how rapidly such medications can reach nations with lower average incomes.

Following successful registration in South Africa, Saad explained to investors that “of the KwikPen (a pre-filled multi-injection device) gave us an opportunity now to register the product across sub-Saharan Africa, and we expect registrations from as early as this calendar year.”

The weight-loss drug market has experienced explosive growth since Mounjaro’s South African debut in late 2024. According to Saad, the medication has sparked unprecedented demand, driving the overall GLP-1 market value to approximately 2.2 billion rand (equivalent to $133.64 million) with continued expansion expected.

Market values have increased threefold over just 18 months, with Mounjaro’s market dominance more than doubling from 21% in the quarter ending April 2025 to 52% by January’s close. This dramatic growth was significantly boosted by regulatory clearance for chronic weight management applications, Saad noted.

The CEO projects Mounjaro sales will exceed 1.3 billion rand ($78.97 million) during the fiscal year ending in June. Saad emphasized the medication’s remarkable commercial success, stating: “It will be the quickest brand to reach a billion rand sales in the South African private market.”

Within the South African market, Eli Lilly faces competition from Danish pharmaceutical giant Novo Nordisk, which produces the competing weight-loss drugs Wegovy and Ozempic. Novo Nordisk has also signaled intentions to broaden its African presence following its South African Wegovy launch.

SANTA FE, N.M. — State prosecutors in New Mexico unveiled previously unseen video testimony from top Meta executives on Tuesday as they build their case alleging the social media giant concealed known dangers its platforms pose to young users, particularly on Instagram.

The state’s legal team is positioning video depositions featuring Meta CEO Mark Zuckerberg and Instagram head Adam Mosseri as crucial evidence in their lawsuit against Meta, the parent company behind Facebook, Instagram and WhatsApp. New Mexico officials claim the tech company broke state consumer protection regulations.

According to prosecutors, Meta inadequately handled and failed to warn users about social media addiction risks and child sexual exploitation occurring across their platforms.

Meta’s legal representative Kevin Huff countered these claims during February 9th opening arguments, emphasizing the company’s efforts to remove dangerous content from their sites while cautioning users that some harmful material may still slip past their security measures. He maintained that Meta does inform users about potential risks.

Both the New Mexico lawsuit and another ongoing trial in Los Angeles have the potential to influence the outcome of thousands of additional legal actions targeting social media corporations.

Zuckerberg provided testimony in Los Angeles last month regarding Instagram usage among young people and has previously faced congressional questioning about youth protection on Meta’s services.

In his 2024 appearance before Congress, he offered an apology to families devastated by incidents they attributed to social media influence. However, while he expressed that he was “sorry for everything you have all been through,” he avoided accepting direct blame for these tragedies.

During the California proceedings, Mosseri stated his disagreement with claims that individuals can develop clinical addictions to social media services.

Officials from Japan and the United States are in discussions to incorporate a nuclear energy initiative into the next phase of agreements under Japan’s massive $550 billion investment commitment, according to two individuals familiar with the negotiations who spoke to Reuters Wednesday.

The proposed nuclear initiative would include Westinghouse and aims to bolster energy supply chains for both nations amid ongoing Middle East conflicts that have raised fresh energy security concerns.

Multiple agreements are currently being negotiated and could potentially be revealed during Japanese Prime Minister Sanae Takaichi’s scheduled meeting with U.S. President Donald Trump in Washington on March 19, according to the sources who requested anonymity due to the confidential nature of the discussions.

Japan is working quickly to develop projects under investment pledges made as part of a U.S. trade agreement. The country has previously revealed three initiatives worth $36 billion combined, including a natural gas facility in Ohio.

Sources also indicated that officials are exploring a project to build a copper processing and refining plant.

To advance these discussions, Japan’s Trade Minister Ryosei Akazawa is scheduled to travel to the United States starting Thursday for meetings with U.S. Commerce Secretary Howard Lutnick, two additional sources familiar with the plans confirmed Wednesday.

Westinghouse appeared among approximately 20 companies listed in a joint statement released by both governments in October, identifying businesses that had shown interest in Tokyo-funded projects.

The American company, which is owned by Cameco and Brookfield, is exploring the construction of pressurized water reactors and small modular reactors with a total value reaching $100 billion, the joint statement indicated.

Japanese companies including Mitsubishi Heavy Industries, Toshiba and IHI could potentially participate, according to the statement.

In the previous year, the U.S. government established a partnership valued at no less than $80 billion with Westinghouse for nuclear reactor construction, highlighting Trump’s priority to boost domestic energy production as artificial intelligence data centers drive up energy demand.

The joint statement also mentioned that Falcon Copper is evaluating the construction of a $2 billion copper processing and refining facility while considering participation from Japanese suppliers and customers.

A representative from Japan’s industry ministry stated that officials were uncertain about the negotiation outcomes. Mitsubishi Heavy indicated that no decisions had been finalized and that equipment supply would be evaluated individually. Toshiba refused to provide comment. IHI said it would examine specifics if formal discussions developed.

Westinghouse and Falcon Copper were unavailable for comment outside regular business hours.

Swedish automaker Volvo Cars announced Wednesday that vehicle deliveries fell by 10% during the December through February quarter compared to the same timeframe last year, with total sales reaching 156,965 units.

The Stockholm-based manufacturer attributed the decline to challenging market dynamics in a company statement, citing tariff issues and adverse regulatory changes particularly affecting the United States market. Extended holiday celebrations in China during the new year period also contributed to reduced performance during the quarter.

Despite the overall sales decrease, Volvo highlighted positive momentum in one key area. “However, we are pleased to see steady growth in the sales of our fully electric cars,” the company stated, noting that electric vehicle deliveries jumped 18% year-over-year.

“Our sales for the period were impacted by the continued tough market conditions, impacted by tariffs and unfavourable regulatory developments especially in the U.S.. The prolonged new year holiday period in China further affected our performance,” according to the official statement.

Wall Street responded favorably to the mixed results, with Volvo’s stock price climbing 1% during morning trading sessions. The company is scheduled to release its complete first-quarter financial results on April 29.

British oil giant Shell has pledged to provide financial backing of 3.5 billion reais (equivalent to $668 million) to support struggling Brazilian sugar and ethanol producer Raizen, according to Shell’s Brazil chief executive on Tuesday.

The sugar and ethanol manufacturer has faced a series of financial setbacks in recent months, including mounting losses and escalating debt levels. These challenges stem from expensive capital investments and adverse weather conditions that have damaged crop yields, leading the company to issue a warning in February about “significant uncertainty” regarding its continued operations.

Previous reports indicated that Shell would contribute 3.5 billion reais to Raizen, with sources noting this amount would exceed the funding expected from Cosan, Shell’s joint venture partner in the company.

Creditors of Raizen have expressed dissatisfaction with a restructuring proposal from BTG Pactual, which manages a fund that joined Cosan’s controlling ownership group in the previous year. The proposal suggested dividing Raizen by separating its fuel distribution operations from its refinery and other business segments.

Cristiano Pinto da Costa, who leads Shell’s Brazilian operations, stated that the oil company favors maintaining Raizen as a unified entity. He also indicated that Shell anticipates another stakeholder will contribute an additional 3.5 billion reais investment to help stabilize Raizen’s financial position.

While Costa acknowledged that dividing Raizen into separate business units remains a future possibility, he emphasized that such considerations should only occur after the recapitalization process has been finalized.

Brazilian financial publication Valor Economico reported later Tuesday that Cosan has no intentions of contributing capital directly to Raizen, according to unnamed sources familiar with the matter.

However, the report noted that Rubens Ometto, Cosan’s founder and majority owner, plans to invest 500 million reais in the sugar producer through his family investment office, Aguassanta.

Thousands of Facebook users across the United States, including those here in Delaware, experienced widespread service disruptions Tuesday evening when Meta Platforms’ flagship social media site went offline.

Outage monitoring website Downdetector.com recorded more than 10,600 user complaints about Facebook malfunctions by 5:37 p.m. Eastern Time. The tracking service compiles problem reports from multiple sources to monitor when popular websites and apps stop working properly.

The website cautions that its data comes from people voluntarily reporting issues, meaning the true scope of users impacted could differ from the reported numbers.

Meta Platforms has not yet provided an explanation for what triggered the service interruption when contacted for comment about the technical problems.

Discount clothing retailer Ross Stores announced Tuesday that it expects annual sales to surpass Wall Street projections, banking on continued consumer appetite for marked-down brand-name merchandise despite ongoing economic concerns.

The company’s stock jumped approximately 6% during after-hours trading following the announcement, which also included plans for a massive $2.55 billion share repurchase program spanning fiscal years 2026 and 2027.

Bargain-hunting consumers continue flocking to discount retail chains seeking name-brand items at reduced prices as inflation persists and trade policy remains uncertain, helping maintain consistent customer traffic at these stores.

The California-headquartered company has been boosting its marketing investments to capture market share in the highly competitive discount retail space. Company leadership revealed during their earnings conference call that they’ve also collaborated with suppliers to manage tariff impacts on product categories including home merchandise.

Ross faces stiff competition from industry players including TJX, Burlington Stores, rapidly growing fast-fashion retailers like Shein, and online giant Amazon, all of which continue expanding their discount product lines.

According to Michael Gunther, Senior Vice President of research and market intelligence at ConsumerEdge, spending increases at discount retail chains represent some of the strongest growth in the retail sector, with gains spanning all income levels. While lower-income consumers have recently driven much of this growth, middle and upper-income households are also contributing solid increases.

Competitor TJX issued a more cautious outlook last week, projecting annual sales and earnings below market expectations due to worries about decreasing discretionary spending as cost of living pressures mount.

Ross reported fourth-quarter operating margins of 12.3%, slightly down from the previous year’s 12.4%.

During the holiday shopping period, the retailer’s comparable store sales climbed 9%, significantly outperforming analyst expectations of a 4.03% increase, based on LSEG data compilation.

The company delivered quarterly earnings of $2 per share, surpassing analyst forecasts of $1.90 per share.

Ross anticipates same-store sales growth of 3% to 4% for the full year, compared to analyst predictions of a 3.05% increase.

However, the company’s projected annual earnings per share range of $7.02 to $7.36 fell short of the average analyst estimate of $7.21.

Stock market futures fell Wednesday morning as Wall Street grappled with intensifying Middle East tensions and the potential impact of rising oil costs on inflation, creating uncertainty ahead of key economic reports.

Oil prices surged with Brent crude jumping nearly 2%, though they pulled back from session highs after President Donald Trump announced insurance protections for Gulf shipping routes and indicated the U.S. Navy might provide escorts for oil tankers navigating the Strait of Hormuz.

This critical waterway connecting the Persian Gulf to the Gulf of Oman serves as a crucial passage for global energy supplies, handling approximately one-fifth of worldwide oil and liquefied natural gas shipments.

Market participants flocked to traditional safe investments, pushing gold prices up 1% while the dollar remained close to three-month highs and U.S. 10-year Treasury notes gained for the third straight trading session.

The regional conflict intensified as U.S. and Israeli military forces continued operations against Iran that began Saturday, while Iranian forces launched drone and missile attacks on Gulf oil facilities and targeted American diplomatic missions in Saudi Arabia and Kuwait.

Financial markets are particularly focused on how a fifth consecutive day of fighting might affect inflation trends. Crude oil values have already surged more than 13% this week, potentially complicating Federal Reserve policy decisions as inflation data continues showing elevated levels and central bank officials maintain a more restrictive approach.

These developments have reinforced market expectations that the Federal Reserve will maintain current short-term interest rates without changes in the near term.

Early Wednesday trading showed Dow E-mini futures declining 144 points or 0.3% with 17,957 contracts traded, while Nasdaq 100 E-minis dropped 156.75 points or 0.63%.

Wednesday’s economic calendar includes the Federal Reserve’s Beige Book regional economic survey, ADP employment statistics, and the final S&P composite purchasing managers’ index reading.

Tuesday’s trading session saw the S&P 500 fall 0.9%, breaking below its 100-day moving average for the first time since November 20, while the Dow Jones declined 0.8% and the Nasdaq dropped 1%.

India’s dominant digital payments company PhonePe is preparing for a major stock market debut, seeking a valuation between $9 billion and $10.5 billion, according to two sources familiar with the plans.

The initial public offering could generate between $900 million and $1.05 billion for the Walmart-supported fintech company. However, even the highest projected valuation represents a decrease from the $12 billion price tag PhonePe achieved when it secured $100 million in private funding during 2023.

Major stakeholders are planning significant changes in ownership through the public offering. Walmart intends to reduce its holdings by approximately 12%, while both Tiger Global and Microsoft are looking to completely divest their positions, based on regulatory documents filed by PhonePe.

The three companies will collectively sell roughly 50.7 million shares during the offering, with PhonePe choosing not to create any additional shares for the market.

PhonePe faces stiff competition from Google Pay and Paytm in India’s crowded digital payments landscape. The company submitted its IPO paperwork in September and hopes to finalize the public listing by April, though one source noted that market conditions, including potential effects from Middle East tensions, could alter this schedule.

The sources spoke anonymously due to the confidential nature of the discussions. Representatives from PhonePe, Walmart, Tiger Global, and Microsoft did not respond to requests for comment.

This marks the first time details about PhonePe’s expected market value and listing timeline have been disclosed publicly. The company’s name translates to “on the phone” in Hindi.

If successful, PhonePe’s market debut would become India’s second-largest fintech public offering, trailing only Paytm’s approximately $20 billion listing in 2021. Paytm currently maintains a market value of $7.1 billion.

Despite its market dominance, PhonePe operates in a challenging environment where profit generation remains difficult. The platform serves more than 650 million registered users and handled almost 10 billion of India’s 21.7 billion digital transactions in January, according to government data. However, payment processing in India typically yields thin profit margins.

India introduced its unified payments interface system in 2016 and prohibited companies from collecting fees for instant payment services, aiming to encourage digital transactions and decrease cash dependency in Asia’s third-largest economy.

Financial performance shows mixed results for PhonePe. The company’s losses expanded to 14.44 billion rupees ($158 million) during the six months ending September 30, compared to 12.03 billion rupees in the previous year. Meanwhile, revenue increased approximately 22% to 39.18 billion rupees, according to IPO filings.

Investment professionals who attended pre-IPO presentations expressed concerns about the fintech sector’s prospects. Two portfolio managers noted that enthusiasm for India’s financial technology companies has diminished, with ongoing uncertainties about PhonePe’s capacity to generate revenue from its massive user base potentially limiting its valuation potential.

“Monetisation remains a question mark. Active users aren’t growing at the same pace so the game is all about upsell and that remains to be seen,” one portfolio manager explained.

A banking source involved in the offering also highlighted investor concerns about India’s saturated fintech marketplace, where companies struggle to distinguish themselves from competitors.

All sources requested anonymity as they lacked authorization to discuss the matter publicly.

A major British banking institution announced ambitious financial projections on Wednesday, setting aggressive targets for profit growth over the coming months and years.

Metro Bank revealed plans to more than double its return on tangible equity within the next six months, with expectations to nearly triple those returns over an 18-month period. The financial institution attributes these projected gains to its comprehensive turnaround strategy and continued efforts to manage operational costs.

Looking ahead to 2028, the British banking company anticipates achieving a return on tangible equity of at least 18 percent, signaling confidence in its long-term financial strategy and market position.

Volkswagen’s commercial vehicle division Traton announced Wednesday its projection for recovering truck sales by 2026, following a difficult period that saw significant declines in the previous year.

The German manufacturer anticipates unit sales growth ranging from negative 5% to positive 7% in 2026, with adjusted operating return on sales expected between 5.3% and 7.3%. This outlook comes after the company experienced a 9% drop in unit sales and achieved a 6.3% adjusted return on sales in the prior year, according to preliminary figures released in January.

“The Group plans to offset additional costs from tariffs as much as possible through mitigation and cost measures,” the company stated in its announcement.

Traton’s financial performance reflected challenging market dynamics, with sales revenue dropping 7% to 44.1 billion euros ($51.2 billion) in 2025. The company’s adjusted operating result fell dramatically to 2.8 billion euros, down from 4.4 billion euros in 2024. These declines were attributed to difficult market circumstances influenced by U.S. import tariffs and reduced demand across European markets.

Despite the revenue challenges, the company saw positive momentum in new business, with incoming orders rising 7% last year. This increase was primarily fueled by a substantial 32% surge in European orders. However, North American customers remained cautious, continuing to delay purchases due to concerns about U.S. tariff policies.

Following the announcement, Traton’s stock price declined 4.4% in premarket trading activity.

A British technology company specializing in autonomous vehicles announced Wednesday it has secured $103 million in new funding to expand operations targeting industrial facilities such as ports, airports, and warehouses.

Oxford-based Oxa received half of its Series D funding round—$50 million—from the United Kingdom’s National Wealth Fund, with additional investments coming from technology giant Nvidia’s investment division NVentures and energy company BP’s venture arm bp Ventures.

Rather than pursuing the passenger vehicle market like many robotaxi companies, Oxa concentrates on what company founder Paul Newman describes as “industrial mobile autonomy,” where operations are simpler due to reduced traffic and fewer pedestrian interactions.

“We think trying to do that in the passenger car space is super, super hard,” Newman explained. “In the industrial space, it’s extremely clear what you need to do to make a product.”

The company develops both software and hardware systems for vehicles and can convert a commercial port truck to autonomous operation in less than 24 hours, according to company officials.

This latest investment brings Oxa’s cumulative funding beyond $250 million and will support expanded partnerships with major clients such as DHL, BP, and Vantec.

Newman indicated the new capital will also fund technology deployment in upcoming projects the company plans to reveal soon.

The funding announcement comes just weeks after another British autonomous vehicle startup, Wayve, which partners with Uber on robotaxi services and collaborates with automakers on driver assistance systems, announced it had raised $1.2 billion in its own Series D funding round.

FRANKFURT – The German pharmaceutical and agricultural giant Bayer announced Wednesday its financial outlook for the coming year, projecting adjusted earnings could reach as high as 10.1 billion euros, equivalent to approximately $11.7 billion when currency fluctuations are excluded.

The company released details indicating its 2026 earnings before interest, taxes, depreciation and amortization (EBITDA) before special items are expected to fall within a range of 9.6 billion to 10.1 billion euros, calculated using average 2025 exchange rates.

These projections represent a potential increase from the company’s 2025 performance, when Bayer recorded 9.67 billion euros in similar earnings metrics.

The financial forecast comes as the multinational corporation continues operations in both pharmaceutical development and crop protection products worldwide.

German automotive parts manufacturer Continental announced Wednesday its expectations for relatively unchanged sales and profit margins in its tire division through 2026, despite facing continued market uncertainty.

The tire manufacturer projects revenue for its primary business segment will range from 13.2 billion to 14.2 billion euros ($15.3 billion to $16.5 billion), compared to 13.8 billion euros recorded in 2025. This midpoint projection falls slightly short of analyst predictions of 14.0 billion euros.

For adjusted operating profit margins in the tire segment, Continental forecasts a range of 13.0% to 14.5%, versus 13.6% achieved last year and below the 14% average analyst expectation listed on Continental’s website.

German automakers and parts suppliers continue facing significant headwinds including U.S. trade tariffs, declining consumer demand, growing competition from Chinese manufacturers, unfavorable currency exchange rates, and supply chain disruptions that are pressuring profit margins and creating business uncertainty.

Looking ahead to 2026, Continental anticipates worldwide replacement tire demand for passenger vehicles will either decline by 1% or grow by up to 2%, while passenger car and light commercial vehicle manufacturing is expected to remain flat or drop by as much as 2%.

The company noted in its statement that these projections do not account for any potential effects from the ongoing military conflict in the Middle East.

Continental, which is currently executing a significant corporate restructuring to transform into a specialized tire company, confirmed it completed the divestiture of its Original Equipment Solutions division in February.

MILAN – An Italian digital banking and investment management company announced Wednesday its plans to implement artificial intelligence technology as part of a comprehensive strategy running through 2029, designed to attract more customers and reduce operational expenses while accelerating the rate at which it brings in new investments.

Fineco outlined goals for achieving average yearly growth in the low double digits for both new money coming in and customer acquisition from 2025 through 2029. This represents a significant jump from the 6% growth rate the company experienced during the 2021-2025 timeframe.

The company noted that these projections do not account for potential additional benefits from plans to extend its investment brokerage operations beyond Italy’s borders. Fineco intends to launch a continent-wide European investment platform by the beginning of 2027.

The German athletic apparel giant Adidas announced Wednesday that it anticipates operating profits will climb to approximately 2.3 billion euros ($2.7 billion) in 2026, even while facing roughly 400 million euros in losses from American tariffs and challenging currency fluctuations.

The company stated that when accounting for currency changes, revenue is projected to grow at a high single-digit percentage in 2026, bringing in an additional 2 billion euros. Adidas forecasts low double-digit growth rates in key markets including North America and Greater China.

Looking ahead, the sportswear manufacturer anticipates that currency-adjusted net sales will continue expanding at high single-digit rates through 2027 and 2028. Operating profits are expected to increase at a mid-teens compound annual growth rate across the three-year span from 2026 through 2028.

For 2025, the company recorded total sales of 24.8 billion euros with operating profits reaching 2.06 billion euros.

Company leadership has recommended increasing dividends by 40 percent to 2.80 euros per share for 2025.

In related corporate news, Adidas has nominated Nassef Sawiris for the position of chairman while extending CEO Bjorn Gulden’s contract through 2030.

A Spanish aerospace company announced Wednesday that it successfully secured 180 million euros ($209 million) in new investment funding, with Japanese electronics giant Mitsubishi Electric among the key investors backing the rocket manufacturer’s expansion plans.

PLD Space’s latest capital raise reflects Europe’s growing push toward independent space and defense capabilities, driven partly by President Trump’s “America First” approach and ongoing conflict in Ukraine that has highlighted the need for strategic autonomy.

The Madrid-based firm described this Series C funding round as crucial for transitioning into full commercial operations while expanding both manufacturing capacity and launch infrastructure. This type of investment round typically helps startups scale operations, develop new products, or prepare for potential public stock offerings.

Since its founding, PLD Space has now accumulated more than 350 million euros in total investment capital.

The company gained international recognition in 2023 when it successfully launched Europe’s first completely privately-developed rocket. As part of the new partnership, PLD Space will offer small satellite launch services to Mitsubishi Electric using its Miura-5 rocket system for missions serving Japan and the broader Asian market.

The Miura-5 rocket takes its name from a renowned Spanish bull breed featured in traditional bullfighting. Company officials indicated the rocket’s inaugural test flight is scheduled for 2026, with projections showing commercial launch operations could reach more than 30 missions annually by 2030.

Additional participants in this funding round included Spain’s Centre for the Development of Technology and Innovation alongside COFIDES, a partially government-owned Spanish entity that finances private sector investments.

Tesla CEO Elon Musk will appear in a San Francisco courtroom Wednesday to defend against allegations that he intentionally made misleading public statements to manipulate Twitter’s stock price before acquiring the social media company for $44 billion in 2022.

The legal action was initiated in October 2022 in federal court in Northern California, representing Twitter investors who sold their shares between May 13 and October 4, 2022, just weeks prior to Musk finalizing his Twitter acquisition. The complaint alleges Musk broke federal securities regulations through deliberate public declarations that “were carefully calculated to drive down the price of Twitter stock.”

The Tesla billionaire initially agreed to purchase Twitter and convert it to a private company in April 2022. However, on May 13, he announced his intention was “temporarily on hold” while claiming he needed to determine the actual number of spam and fraudulent accounts on the service. Twitter’s share value plummeted following this announcement. Days afterward, he posted on Twitter that the transaction “cannot go forward” while asserting nearly 20% of Twitter profiles were “fake,” the legal filing states.

According to the lawsuit, Musk’s May 13 social media post — “Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users” — contained false information because the acquisition was not actually “temporarily on hold.” The suit argues Twitter never consented to pausing the deal, and the signed merger contract contained no provisions allowing Musk to suspend it unilaterally.

Over the subsequent weeks, Musk persistently attempted to postpone or escape the agreement through what the lawsuit characterizes as false, damaging public statements about Twitter’s operations that caused the San Francisco-based company’s stock to drop dramatically.

By July 2022, Musk intensified his focus on the bot controversy and declared he would withdraw his purchase offer after Twitter allegedly failed to supply adequate data about fraudulent accounts. The lawsuit points out that Musk had previously waived due diligence requirements for his “take it or leave it” Twitter bid, meaning he surrendered his right to examine the company’s confidential financial records.

On July 8, when Musk announced via Twitter he was withdrawing from the deal due to fake account concerns, the stock finished trading at $36.81. This represented a 32% decline from Musk’s proposed purchase price of $54.20 per share.

“To try to renegotiate the price or delay the merger, Musk made materially false and misleading statements and omissions, and engaged in a scheme to deceive the market, all in violation of the law,” the legal complaint states.

The issue of automated accounts and fake profiles on Twitter was not a recent discovery. The platform had previously paid $809.5 million in 2021 to resolve allegations it was inflating its user growth statistics and monthly active user counts. Twitter had also regularly reported its bot calculations to the Securities and Exchange Commission for years while acknowledging its estimates might be conservative.

Twitter initiated legal proceedings against Musk to compel completion of the transaction, prompting Musk to file a countersuit. On October 4, Musk agreed to proceed with his original $44 billion offer, which Twitter accepted. The acquisition concluded later that month. Following the purchase, Musk dramatically reduced the company’s staff, eliminated its trust and safety department, and reversed content oversight policies. In July 2023, he rebranded Twitter as X.

This marks another instance where Musk faces courtroom scrutiny over accusations of misleading investors through his social media activity. Three years earlier, Musk testified for approximately eight hours in a San Francisco federal courthouse regarding his plans to take Tesla private — the electric vehicle manufacturer he continues to lead as a public company — for $420 per share in a proposed 2018 transaction that never occurred. A nine-person jury cleared Musk of any wrongdoing in that matter.

Global financial markets continued their steep decline across Asian trading sessions, with investors abandoning risky investments due to growing concerns about extended disruptions to oil supplies.

South Korea’s stock market took the hardest hit, with the KOSPI index plummeting nearly 13% during trading before recovering slightly to close down 8%. The two-day decline represents the most severe drop the country has experienced since 2009, as panic selling struck what had previously been among this year’s most profitable investments.

The selloff spread throughout the region, with Japan’s Nikkei falling 3.7% and Taiwan’s stock market declining 3.6%. Few investors were willing to buy into what had become an overcrowded investment strategy. Thailand experienced the worst performance among emerging markets, tumbling 7.7%.

Asian nations face particular vulnerability since most import their energy supplies through the Strait of Hormuz, and a strengthening dollar adds additional pressure to energy costs.

Some market stabilization occurred late Tuesday in New York after Trump announced he had directed the U.S. International Development Finance Corporation to offer political risk insurance and financial backing for oil tankers operating in the Gulf region, with potential U.S. Navy escort services.

However, the administration’s failure to establish these protections before taking military action against Iran raised questions about their preparedness. Analysts identified numerous obstacles ahead, noting the lack of specific details in the proposal.

Historical precedent from the 1987 Iran-Iraq conflict shows that while insurance coverage was available, it required extensive preparation and had limited reach – nowhere near the scale necessary to protect the hundreds of tankers traversing the Strait of Hormuz. Most of these vessels operate under foreign ownership and flags rather than U.S. registration.

Questions remain about whether the DFC possesses adequate funding to handle such extensive risks or the specialized knowledge required for proper risk evaluation. Legal challenges would likely emerge, as is typical for most U.S. government initiatives.

Regarding naval escort services, the narrow strait presents significant navigation challenges under normal circumstances, made worse by Iran’s proximity just kilometers away. The Navy’s limited vessel capacity explains why they have historically avoided major operations in this area.

Additional market pressures include emerging problems in private credit markets and growing anxiety about artificial intelligence’s impact on software companies.

Blackstone’s primary private credit fund experienced substantial investor withdrawals during the first quarter, with net outflows reaching $1.7 billion according to Monday’s regulatory filing.

Wednesday’s key market influences include developments in the Iran conflict, oil price movements, and U.S. economic indicators including the ISM services survey and ADP employment report.

Stock markets throughout Asia suffered dramatic losses Wednesday as growing concerns over Middle East conflicts sparked fears of rising oil prices that could reignite inflation and postpone anticipated interest rate reductions.

The region’s major market indicator, MSCI’s Asia-Pacific index excluding Japan, plummeted 4.2%. South Korea experienced particularly severe declines, with the KOSPI index losing more than 11% and activating emergency trading circuit breakers. Combined with previous losses, Korean markets have dropped 17% over just two trading sessions. Meanwhile, Japan’s Nikkei index declined 4.3% and Taiwan’s main index fell 3.6%.

Technology stocks, particularly semiconductor companies, bore the brunt of the selling pressure as international investors rapidly exited positions they had built up during earlier market gains.

Tareck Horchani, Head of Prime Brokerage Dealing at Maybank Securities in Singapore, explained the market dynamics: “We are definitely seeing foreign outflows driving the move, particularly in the large-cap tech names that had led the rally year-to-date. Korea had been one of the strongest markets globally, up nearly 50% at its peak on the back of the AI and memory cycle, so positioning was crowded.”

Horchani noted that the selloff appears more related to investor positioning than company fundamentals: “This looks more like a positioning unwind and risk reduction rather than a fundamental deterioration in earnings. When oil spikes and FX volatility jumps, especially for oil-importing markets like Korea and Japan, global funds tend to de-risk quickly from the most liquid index heavyweights. That’s exactly where the selling has been concentrated: Samsung, SK Hynix and other large caps.”

The market expert also highlighted broader economic concerns: “There is also a clear macro overlay. Higher oil prices raise concerns about inflation and could delay Fed easing, which hits high-beta tech and cyclical names disproportionately. So yes, part of this is profit-taking, but it’s more broadly a global risk-off move rather than investors permanently moving to cash.”

However, Horchani observed some selective buying: “Importantly, domestic institutional accounts have been selectively adding, and we are seeing rotation into defensives and defence-related names rather than indiscriminate selling across all sectors.”

Christopher Forbes, Head of Asia and Middle East at CMC Markets, characterized the Korean market decline as a technical rather than fundamental issue: “The Kospi’s 15% two-day collapse is a textbook momentum unwind, not a structural break… when U.S.-Israeli operations practically closed the Strait of Hormuz, there were no diversified bids to absorb the selling. The order book evaporated. Foreign investors pulled over US$7 billion in two sessions.”

Forbes suggested potential for recovery: “The biggest upside catalyst is the record hedge fund short book. According to Goldman’s prime brokerage, shorts outpaced longs two-to-one in early February. If tensions ease quickly, a violent squeeze could follow. Samsung and SK Hynix remain healthy businesses.”

Rupal Agarwal, Asia Quant Strategist at Bernstein in Singapore, emphasized regional vulnerabilities: “The impact on Asian markets has been higher because Asian economies are more vulnerable to the Strait of Hormuz closure and because in the run-up to the war, momentum trends were very sharp in many parts of Asia such as Korea.”

Agarwal outlined conditions needed for market stabilization: “For markets to find a floor, we need signs of de-escalation on the war front or status quo which could then move the focus back to fundamentals. It is difficult to time such geopolitical events but given the positioning was extreme on the way up, it would take some time for things to normalize.”

Radhika Rao, Senior Economist at DBS Bank in Singapore, detailed regional economic impacts: “Amongst the ASEAN-6 countries, the net oil trade balance is most adverse in Thailand, Malaysia, and Vietnam (as % of GDP), with the pass-through to price pressures most material in Thailand and the Philippines. Additionally, while less strategic, Thailand and Singapore are top LNG buyers in the region, but with a well-distributed supplier mix, especially in Singapore.”

Rao predicted cautious central bank responses: “Much of the region will likely monitor developments in the Middle East with trepidation. THB, MYR, and SGD are down more than 1% this week, and regional currencies might underperform if the U.S. dollar stays bid. Regional central banks are unlikely to act pre-emptively on policy, preferring to remain on hold while maintaining a keen watch on the domestic currency and bond yield movements.”

In Japan, Shingo Ide, Chief Equity Strategist at NLI Research Institute in Tokyo, warned that previous market assumptions no longer hold: “Up to now, the market has been bought up on narratives like ‘Takaichi’s policies’ and expectations of double-digit profit growth next fiscal year. But both of those pillars are wobbling. This isn’t the moment to be talking about investing on the back of ‘Takaichi policies.’ If the priority shifts to measures against higher prices and higher crude oil — things that have to be dealt with first — then you run out of money.”

Ide expressed concerns about corporate earnings: “And corporate earnings, too: if elevated oil prices persist, profits are obviously going to be squeezed. In other words, the premises we’ve been relying on no longer hold. Seen that way, I wouldn’t call 54,000 yen ‘oversold’.”

While acknowledging uncertainty about market bottoms, Ide noted widespread profit-taking: “I don’t think it just keeps falling forever. It’ll find a level where it stabilises somewhere—but whether that’s 54,000, 52,000, 50,000, or some level on Korea’s KOSPI, we simply can’t say at this point. Across a broad range of sectors, a lot of investors had been looking for a point to take profits. But there hadn’t been a clear trigger for a serious downturn, and that backdrop persisted. Now, all at once, profit-taking selling has ballooned.”

Efforts to save one of Brazil’s major sugar and ethanol companies have collapsed after its owners couldn’t reach an agreement on how to provide emergency funding, according to a Bloomberg News report released Tuesday.

The rescue discussions for Raizen broke down when co-owners Cosan and Shell were unable to come to terms on a capital injection plan, sources familiar with the negotiations told Bloomberg.

Earlier on Tuesday, Shell’s Brazil chief executive had expressed the company’s willingness to invest 3.5 billion reais (equivalent to $662.75 million) into Raizen, which holds the distinction of being the world’s biggest sugar producer. The executive also indicated expectations that another shareholder would contribute an additional 3.5 billion reais to help stabilize the company’s financial situation.

However, according to the Bloomberg report, Cosan stated it was unable to provide financial support matching what Shell had proposed for Raizen. The report also indicated that Shell turned down several alternative proposals put forward by Cosan.

Private equity funds under the management of Banco BTG Pactual, which had also participated in the rescue discussions, ultimately chose not to invest in Raizen after expressing disagreement with multiple conditions suggested by Shell, the report stated.

When contacted by Reuters for comment, Raizen, Cosan, and Shell had not immediately provided responses. Reuters was unable to independently confirm the Bloomberg report’s details.

The failed rescue talks come after Raizen disclosed severe financial troubles last month, reporting a quarterly net loss of 15.6 billion reais. The company also issued a warning about “significant uncertainty” regarding its capacity to maintain ongoing operations.

By December’s end, Raizen’s net debt had reached 55.3 billion reais, a result of multiple challenging factors including substantial capital investments, unpredictable weather patterns, and destructive wildfires. These conditions contributed to reduced harvest yields and decreased processing volumes for the struggling company.

A Chinese biotechnology company announced Wednesday that it has struck a major licensing deal with Belgian pharmaceutical giant UCB for an experimental treatment targeting autoimmune conditions, with the agreement potentially worth more than $1.1 billion.

Antengene Corporation revealed that UCB will pay $60 million immediately and could provide additional payments exceeding $1.1 billion if specific development goals are achieved for the experimental drug ATG-201.

In a company statement posted online, Antengene highlighted that the partnership demonstrates the “unique” capabilities of its drug development platform. Following the announcement, the company’s Hong Kong stock shares climbed approximately 6% during Wednesday morning trading.

The experimental medication ATG-201 is designed to treat autoimmune conditions related to B-cells. Antengene intends to file for clinical trial approval in both Australia and China during the opening quarter of 2026, and once initial phase I testing concludes, UCB will assume responsibility for continued development.

The licensing arrangement grants UCB global rights to develop, produce, and market ATG-201, along with access to related manufacturing processes. Beyond the initial $60 million payment, Antengene stands to receive additional compensation tied to “certain conditions,” development achievements, and commercial success markers, plus ongoing royalty payments based on future sales revenue.

Israel’s stock market continues climbing higher this week, creating an unusual financial phenomenon as the country remains engaged in military operations against Iran that have destabilized the broader Middle East region.

The Tel Aviv Stock Exchange posted gains on Tuesday, marking three consecutive days of positive trading since the Israeli-American military campaign against Iran began. Defense contractors, energy companies, and financial institutions drove the market rally, while Israel’s currency strengthened by 1.5% against the U.S. dollar, approaching the three-decade peak it hit last month.

This upward trend contradicts typical market behavior during wartime, as global financial markets elsewhere declined Monday and oil prices climbed, raising concerns about inflation.

Dr. Gali Ingber, who leads finance studies at Israel’s College of Management Academic Studies, described the market response to The Media Line as investor euphoria. “What we saw yesterday was euphoria, a situation in which investors are valuing only the best-case scenario, without taking into consideration any other possibility,” Ingber stated.

The positive market sentiment stems from investor expectations that confronting Iran directly could eventually deliver greater regional stability after decades of uncertainty, according to market analysts.

Professor Ilan Alon from Ariel University, an economics specialist, highlighted how Israel’s situation differs from typical conflict scenarios. “Israel is an anomaly,” Alon explained to The Media Line. “In most wars, there is usually a withdrawal of investments.”

According to Ingber, the stock exchange gains reflect investor confidence that military success will improve Israel’s risk assessment in international markets.

While other global exchanges saw their volatility indexes spike as uncertainty gripped international investors, and gold prices rose as traders sought safer investments, Tel Aviv bucked this trend entirely.

The market rally also demonstrates the distinctive characteristics of Israel’s financial system. Large institutional investors control much of the Tel Aviv exchange trading, with domestic pension funds and long-term investment vehicles continuing to invest capital even during military conflicts. These institutional investors typically maintain longer-term perspectives, focusing on structural economic strengths in technology sectors, defense exports, and energy development, unlike international markets that may respond quickly to geopolitical disruptions.

However, Alon cautioned that current optimism comes with significant risks. “In general, war isn’t a good thing for the economy,” Alon continued. “War requires resources and reduces productivity. But investors appear to believe that if Israel wins, uncertainty in the market will decline and will be beneficial for Israel.”

He warned that market conditions could change rapidly. “If the war drags on, or changes course, this could easily be reversed,” he added.

The Tel Aviv exchange has maintained strong upward momentum since the middle of the conflict that started on October 7, 2023, a war that initially caught Israel off guard during one of its most vulnerable periods.

Ingber identified the market turnaround as occurring approximately one year after hostilities began, when military momentum shifted in Israel’s favor as the country recovered from the initial shock of the conflict. A sequence of military achievements, particularly in Israel’s operations against the Lebanon-based Hezbollah organization, transformed investor attitudes.

This pattern repeated during Israel’s previous direct military engagement with Iran last June, when Israeli stocks rose even while combat operations continued, demonstrating investor confidence that the campaign would ultimately diminish Iran’s regional threat.

For many years, Tehran’s government built an extensive network of allied groups, which it called the “Axis of Resistance,” designed to threaten Israel along its borders. This network included Hezbollah in Lebanon, Hamas and Islamic Jihad in Gaza, various militias in Iraq and Syria, and the Houthis in Yemen, creating a ring of hostile forces around Israel while Iran maintained distance from direct military confrontation. Simultaneously, Iran developed comprehensive missile and drone capabilities, providing precision weapons and unmanned aircraft to its allied groups while enhancing its own long-distance strike capacity.

Israel has long viewed Iran as the primary source of Middle Eastern instability, citing Tehran’s nuclear ambitions and ballistic missile stockpiles as additional concerns.

The current conflict expanded into a regional confrontation as Israel systematically weakened much of Iran’s proxy network. This also resulted in multiple direct military exchanges with Iran, during which Israel targeted Tehran’s ballistic missile supplies and nuclear facilities. These developments have generated optimism that the region might be moving toward greater stability, signaling to investors an opportunity for increased investment.

Despite Israel’s deteriorating international political position throughout the conflict, including criticism over Gaza operations, war crimes allegations, and international court proceedings that have left the country increasingly isolated, investors have disregarded these political factors.

Alon emphasized the distinction between financial and political considerations. “The stock market is very different than the political market,” said Alon. “Investors want big returns. China is a great example of a communist dictatorship that enjoys a lot of investments.”

However, many Israeli citizens find the soaring market disconnected from their everyday experiences. Israel ranks among the most expensive countries in the Organization for Economic Cooperation and Development, with costly housing and persistently high living expenses. Structural changes, including reducing bureaucratic obstacles, increasing market competition, and breaking up monopolistic practices, would be necessary for market strength to benefit broader economic prosperity.

Ingber noted this disconnect between market performance and daily life. “Israelis experience a high cost of living, but on the other hand, the data on the economy is very positive,” said Ingber. “After over two years of war, and despite very negative outlooks on the future of the economy after such a war, the Israeli economy proved incredible, actually inexplicable, resilience.”

Nevertheless, financial markets are anticipating a clear resolution to the current conflict.

Should investors prove correct and the military campaign substantially reduces Iran’s regional influence and long-range military capabilities, Israel might experience decreased security risks, lower government borrowing costs, and renewed international investment. However, if fighting expands or continues indefinitely, current market optimism could rapidly transform into instability.

For the present, the positive trading screens in Tel Aviv represent more than just confidence in military outcomes, but hope that a conflict spanning decades may be reaching a critical juncture.

Manufacturing activity in China declined for the second straight month during February, though potential changes in U.S. trade policy could offer modest improvements ahead.

Government data released Wednesday showed China’s official manufacturing purchasing managers index dropped to 49 in February, down from January’s reading of 49.3, marking a four-month low according to the National Bureau of Statistics. This monthly survey of factory managers uses a 100-point scale where readings below 50 indicate declining activity.

After breaking an eight-month streak of manufacturing declines with a December reading of 50.1, the recent drop back into negative territory reveals continued struggles in the sector amid weak domestic spending and consumer demand.

National Bureau of Statistics chief statistician Huo Lihui blamed the weaker numbers on seasonal influences, including the nine-day Lunar New Year celebration that occurred in mid-February.

However, a competing survey from private research firm RatingDog painted a brighter picture, showing February manufacturing activity at 52.1, up from 50.3 the previous month. This marked the strongest expansion since December 2020, with the private survey typically reflecting conditions at smaller, export-oriented companies.

RatingDog founder Yao Yu noted in his analysis that international demand strengthened significantly in February, with new export orders showing notable growth.

“The mixed bag of manufacturing PMI data suggests a similar trajectory to what we observed in 2025,” wrote Lynn Song, ING Bank’s chief economist for Greater China. “Resilient external demand (is) continuing to drive growth, while domestic demand has been disappointingly soft.”

Capital Economics China economist Zichun Huang suggested that last month’s Supreme Court decision striking down Trump’s reciprocal tariffs, leading to reduced U.S. tariffs on Chinese goods, should provide a “small boost” to exports and factory activity in coming months.

The planned April meeting between U.S. President Donald Trump and Chinese leader Xi Jinping, which could result in an extended trade agreement between the nations, may also benefit Chinese manufacturers.

Analysts warned that China’s weak domestic demand will likely persist as problems in the real estate sector continue to hurt consumer spending and business investment.

China plans to announce its economic growth target this week during its annual national congress beginning Thursday, with economists predicting a target of 4.5% or higher.

The week-long congressional session will also approve Beijing’s policy framework for 2026-2030, expected to emphasize technological development and reducing dependence on foreign suppliers.

BANGKOK (AP) — Stock markets throughout Asia continued their steep decline Wednesday following a global selloff that impacted Wall Street, with South Korea’s primary index crashing 8% as crude oil prices surged to new heights.

Escalating tensions in the Middle East conflict involving Iran have battered financial markets worldwide. Investors are increasingly concerned about rising energy costs and their potential to fuel inflation, which could slow global economic growth and hurt company earnings.

South Korea’s Kospi index experienced the region’s steepest decline, dropping 8.1% to close at 5,321.38, prompting authorities to halt trading temporarily. Energy supply worries overshadowed positive sentiment about technology giants Samsung Electronics and SK Hynix benefiting from growing artificial intelligence demand.

Tokyo’s Nikkei 225 dropped 3.4% to finish at 54,346.73. Both Japan and South Korea rely heavily on oil and natural gas imports from Middle Eastern nations, with supplies now trapped in the Persian Gulf region.

Other Asian markets also posted significant losses, with Hong Kong’s Hang Seng declining 1.4% to 25,408.27 and Shanghai’s Composite index falling 0.5% to 4,100.46.

Australia’s S&P/ASX 200 dropped 1.8% to 9,130.90, while Taiwan’s Taiex retreated 2.9%.

Wall Street suffered losses Tuesday, with the S&P 500 ending down 0.9% after falling as much as 2.5% during trading on economic concerns related to the conflict. The Dow Jones Industrial Average trimmed its decline to 0.8%, while the Nasdaq composite dropped 1%.

Rising inflation linked to the conflict could limit the Federal Reserve’s ability to reduce interest rates. The central bank cut rates multiple times last year and signaled additional reductions could come in 2026. While lower rates typically stimulate economic growth and employment, they can also contribute to inflationary pressures.

U.S. benchmark crude oil prices rose 1.2% to $75.46 per barrel, while Brent crude, the global benchmark, increased 1.5% to $82.61 per barrel.

Currency markets showed the dollar holding steady at 157.55 Japanese yen, while the euro weakened to $1.1599 from $1.600.

Negotiations between investment giant Blackstone and Hong Kong-based New World Development have reportedly reached a standstill over a massive $4 billion transaction, according to Bloomberg News reporting on Wednesday.

The discussions have hit a wall because the Cheng family, who maintains operational control of the Hong Kong real estate company, is unwilling to surrender management authority, sources with knowledge of the negotiations told Bloomberg.

The reported breakdown was published March 4, though Reuters noted they were unable to independently confirm the details of Bloomberg’s reporting.

The potential deal would have represented a significant acquisition for Blackstone, one of the world’s largest private equity firms, as it continues expanding its real estate portfolio globally.

The executive overseeing Alibaba Group’s artificial intelligence platform announced his departure Wednesday, marking an unexpected leadership change at one of China’s major tech companies.

Lin Junyang, who directed the Qwen AI model division, revealed his resignation through a social media post on X, simply stating “Bye my beloved Qwen” without elaborating on his reasons for leaving.

The timing of Lin’s announcement is notable, occurring just two days following Alibaba’s launch of enhanced AI products. Neither Lin nor company representatives have responded to media inquiries seeking additional details about the departure.

The Qwen platform has experienced remarkable expansion in recent months, with its mobile app attracting 203 million monthly active users in February – a dramatic increase from the 31.05 million users recorded in January, according to AICPB.com, which monitors artificial intelligence applications.

This substantial user growth positioned Qwen as the world’s third-largest AI application, trailing only OpenAI’s ChatGPT and ByteDance’s Doubao platform.

Industry analysts attribute the rapid user acquisition to intensive marketing efforts by Chinese technology companies during the Lunar New Year holiday period, when firms competed aggressively to expand their customer base.

The former chief legal officer at Goldman Sachs will appear before a congressional committee to address her connections to the late Jeffrey Epstein, her representative announced Tuesday.

Kathryn Ruemmler stepped down from her position at the Wall Street giant following revelations about her relationship with the convicted sex offender. Recent Justice Department document releases revealed that Ruemmler had received presents from Epstein and provided him with counsel on managing press coverage of his criminal conduct.

Her representative, Jennifer Connelly, issued a statement saying Ruemmler is eager to speak with the U.S. House Oversight Committee.

“She has done nothing wrong and had no knowledge of any ongoing criminal activity on his part,” Connelly stated.

According to Connelly, Ruemmler was working as a criminal defense lawyer during her dealings with Epstein and represented a mutual client.

Goldman Sachs CEO David Solomon announced Ruemmler’s departure from her chief legal officer position in February. In her own announcement, Ruemmler indicated she would be leaving the company in June.

Her exit represents the most significant departure from the banking industry following the Justice Department’s most recent disclosure of Epstein-related documents. Ruemmler had been one of the senior executive leaders at the prominent financial institution.

Australia experienced its strongest economic expansion in almost three years during the December quarter, according to government data released Wednesday, though the robust growth has sparked renewed inflation concerns and expectations of higher interest rates.

The Australian Bureau of Statistics reported that the nation’s real gross domestic product climbed 0.8% in the fourth quarter, surpassing the previous quarter’s revised 0.5% increase. Year-over-year growth reached 2.6%, marking the strongest annual performance since early 2023 when pandemic recovery measures were still influencing the economy.

However, economic challenges are mounting due to ongoing Middle East tensions that have disrupted oil shipments through the Strait of Hormuz, driving energy prices up more than 10%. While Australia exports energy, sustained oil price increases burden both consumers and businesses with higher costs.

Stephen Smith, a partner at Deloitte Access Economics, warned that the strong growth figures present complications for monetary policy makers. “While stronger growth may seem like positive news,” Smith explained, the result “will be a concern” for the Reserve Bank of Australia.

“The RBA is already of the view that the economy is operating above its potential. Combined with elevated inflation, today’s data will keep the RBA on high alert and increase the likelihood of a rate hike in May,” Smith added.

The central bank considers economic growth above 2% annually as potentially inflationary, which explains why officials raised interest rates by a quarter-point to 3.85% last month after inflation began accelerating again following three rate cuts in the previous year.

Financial markets responded to the mixed signals, with three-year government bond futures recovering some losses while the Australian dollar declined 0.6% to $0.6994 amid broader Asian stock market weakness driven by Middle East conflict concerns.

Market participants are pricing in approximately 30% odds of a March rate increase, with May rate hikes considered nearly certain by investors.

The fourth-quarter strength highlighted the economy’s performance against capacity limits. Inflation rose to 3.8% in January while unemployment remained at a historically low 4.1%, though February’s rate increase is expected to moderate economic demand.

Business inventory building contributed the largest boost to quarterly growth, adding 0.4 percentage points. Government expenditures, primarily defense-related, contributed 0.2 points, while household spending added just 0.1 point to growth.

Consumer savings behavior revealed continued caution, with the household savings rate increasing to 6.9% from 6.1%, indicating significant remaining spending capacity.

Tony Sycamore, an analyst at IG, suggested the positive headline numbers concealed weaker consumer spending patterns that support keeping rates unchanged at the central bank’s March 16-17 policy meeting.

“This is an indication that cost-of-living pressures are still biting — Aussies are channelling extra income into savings rather than spending,” Sycamore observed.

While inflation metrics remained elevated, one key measure of labor costs decelerated to its slowest annual pace since early 2021. In nominal terms, the economy expanded 6% for the year, reaching A$2.85 trillion ($2.00 trillion).

DBS Group, the largest financial institution in Singapore by total assets, announced Wednesday that Chinese regulators have approved its subsidiary to serve as a primary underwriter for corporate bonds within China’s interbank market.

The authorization comes from China’s National Association of Financial Market Institutional Investors (NAFMII) and enables DBS to take the lead role in managing corporate bond transactions on the mainland, including organizing underwriting groups, according to the bank’s announcement.

The Southeast Asian banking giant reported that its Chinese operations emerged as one of the most prominent foreign institutions in the panda bond sector during 2025, capturing a substantial 38% portion of the market through involvement in deals worth 65.8 billion yuan, equivalent to approximately $9.54 billion.

Panda bonds represent yuan-currency debt securities marketed within China’s domestic financial system by international companies and organizations.

DBS highlighted that it stands as the sole Singapore-based financial institution authorized to lead the underwriting process for all types of corporate bonds within China’s interbank market.

Market data from Wind Information, cited by the bank, shows panda bond activity in China’s interbank system expanded significantly over recent years, growing at a 26% annual rate from 54.5 billion yuan in 2020 to reach 173.3 billion yuan in 2025.

The financial institution also noted its historic achievement in 2025 as the first Singapore bank selected to serve as a renminbi clearing institution.

Crude oil prices surged Wednesday as escalating military conflict in the Middle East threatens global energy supplies, potentially impacting gas prices for Delaware drivers in the coming weeks.

International Brent crude climbed $1.11 to reach $82.53 per barrel, marking a 1.4% increase, while U.S. crude futures gained 79 cents to $75.37 per barrel, representing a 1.1% jump. Both benchmarks closed Tuesday at their highest levels in months.

The price spike followed coordinated military strikes by Israeli and American forces against Iranian targets Tuesday, which triggered retaliatory Iranian attacks on energy facilities throughout a region responsible for nearly one-third of worldwide oil production.

Iraq, which ranks as the second-biggest oil producer within OPEC, has been forced to reduce daily output by approximately 1.5 million barrels – roughly half its normal production capacity – due to storage constraints and blocked export pathways, according to government officials who spoke with Reuters. These sources warned that Iraq might need to completely halt its 3 million barrel-per-day production within days unless export operations can restart.

Meanwhile, Iranian forces have targeted commercial oil tankers navigating the Strait of Hormuz, a vital waterway that handles about 20% of global oil and natural gas shipments. Maritime traffic through the strait has remained essentially blocked for four straight days after Iran attacked five vessels.

President Donald Trump’s announcement that the U.S. Navy might provide escort protection for oil tankers helped prevent even steeper price increases. Trump revealed he had directed the U.S. International Development Finance Corporation to offer political risk insurance and financial backing for Gulf maritime commerce.

However, shipping industry executives and market analysts expressed doubt about whether military protection and insurance assistance would be sufficient to restore market confidence.

Nations and corporations worldwide have started pursuing backup supply sources and alternate shipping routes. India and Indonesia announced they are actively seeking different energy suppliers, while several Chinese refineries have either suspended operations or accelerated scheduled maintenance work.

Saudi Arabia’s state oil company Aramco is working to redirect some shipments through Red Sea routes to bypass the blocked Strait of Hormuz, industry sources reported.

Domestically, U.S. crude inventories increased by 5.6 million barrels during the previous week, according to American Petroleum Institute data cited by market sources. This figure significantly exceeded analyst predictions of a 2.3 million barrel increase. Official government inventory numbers are scheduled for release later Wednesday.

China’s services industry experienced its most robust expansion in nearly three years during February, according to a private sector analysis released Wednesday from Beijing.

The RatingDog China General Services PMI, produced by S&P Global, jumped to 56.7 last month, up from January’s 52.3 reading. This marks the strongest performance since May 2023, with any figure above 50 indicating growth rather than decline.

This surge was fueled by stronger customer demand, including a notable increase in international orders, though escalating expenses drove service prices to their highest point in 21 months.

When combined with manufacturing data, the services performance points to promising signs for some Chinese businesses as the year begins. However, ongoing structural problems, trade disputes, and global political tensions continue to pose significant threats to future growth.

These findings stand in sharp contrast to government data released the same day, which indicated non-manufacturing sectors actually shrank for the second consecutive month in February.

The Composite Output Index also demonstrated strength, climbing to 55.4 in February from January’s 51.6, representing the fastest growth rate since May 2023 as both manufacturing and services sectors accelerated.

Chinese government officials have committed to strengthening domestic consumer spending in services while addressing persistent overcapacity issues. There are growing concerns that last year’s export surge, which helped shield the economy from U.S. tariff impacts, may not continue.

“External uncertainties and the current softness in employment may constrain the sustainability of this improvement to some extent. The Services PMI is expected to maintain its expansionary trend in the short term,” stated Yao Yu, Founder at RatingDog.

Fresh business orders increased at their fastest rate in six months, boosted by domestic marketing campaigns and growing customer inquiries. International demand expanded at its quickest pace in twelve months.

However, service companies cut their workforce numbers in February following a modest hiring increase at year’s start, citing the need to control expenses. This staffing reduction led to increased work backlogs.

Financial pressures also mounted, with average operating costs climbing faster than the previous month due to higher labor and energy expenses. Companies responded by raising their service prices as customer demand strengthened, reaching the highest pricing level since May 2024.

While business optimism showed slight improvement in February, companies expressed ongoing worries about fierce market competition.

The head of Goldman Sachs expressed astonishment Wednesday at how calmly financial markets have responded to the escalating Middle East conflict, predicting it will take several more weeks for investors to fully grasp the economic consequences.

Speaking at a business conference in Sydney, CEO David Solomon shared his thoughts on the market’s reaction to the regional turmoil.

“I look at the market reaction, and I’m actually surprised that the market reaction has been more benign given the magnitude of this as you might think,” Solomon told attendees at the Sydney summit.

The banking executive explained that financial markets typically show restrained responses to international political tensions unless those events directly threaten economic expansion.

“There’s a cumulative effect of everything that’s happening and a much harsher reaction. Up to this point, we haven’t seen that cumulative effect,” Solomon noted. “But it’s very hard to speculate because there is so much that is unknown at this point.”

“I think it’s gonna take a couple of weeks for markets to really digest the implications of what has happened both in the short term and medium term, and I can’t speculate as to how that would play out,” he added.

The expanding conflict has driven petroleum prices higher due to concerns about supply disruptions, adding to investor worries about rising inflation pressures.

International stock markets have declined while the U.S. dollar has gained strength as traders moved away from higher-risk investments toward safer alternatives.

Despite these trends, Wall Street’s declines have remained modest, with the S&P 500 falling less than 1% this week after recovering from earlier losses during both trading sessions.

Solomon highlighted that several positive factors, including relaxed monetary policies and reduced regulatory constraints, have helped maintain the strength of the American economy.

“Let us put aside what’s going on in the Middle East at the moment,” he explained. “We have a confluence of strong macro tailwinds that make the economic growth trajectory of the United States, I think, quite compelling.”

A massive banking merger worth more than $12 billion could face significant obstacles following President Donald Trump’s announcement to suspend trade relations with Spain, according to a financial analyst’s warning issued Tuesday.

Wells Fargo analyst Mike Mayo has lowered his rating on Webster Financial’s stock, expressing concerns that regulatory approval for Banco Santander’s acquisition of the U.S. regional bank may become more difficult to secure. The Spanish banking giant announced the purchase deal just last month.

In his client advisory, Mayo explained his reasoning: “The U.S. president today said trade with Spain will halt. We extrapolate this comment to mean that U.S. regulatory approval for Banco Santander to acquire Webster will be incrementally harder to obtain.”

The acquisition represents a strategic move by Spain’s biggest financial institution to establish itself among America’s top 10 retail and commercial banking operations. Should regulators give their blessing, the merged entity would control roughly $327 billion in total assets across the United States.

Santander’s Executive Chair Ana Botin addressed the situation during a Bloomberg TV appearance, expressing optimism about future U.S.-Spain relations. “Spain and the U.S. have had a great long-term relationship and that is where we are going back to. But we are surely living in extraordinary times,” she stated.

While Botin avoided discussing regulatory matters or deal approval specifics, she emphasized Santander’s commitment to continuing service for its 5 million American banking customers.

Mayo’s analysis suggests that even under the most favorable circumstances, growing trade friction between Washington and Madrid would likely prolong the approval timeline. He also warned that if regulators ultimately reject the merger, competing banks might pursue Webster at a reduced price, potentially cutting the deal value by 10 percent.

Financial markets reflected these concerns Tuesday, with Webster’s stock price falling 3.2 percent during late trading hours, while Santander shares ended the day down more than 6 percent.

Financial markets are experiencing significant turbulence as Wall Street prepares for the possibility of extended Middle Eastern hostilities that could reignite inflation concerns and jeopardize economic expansion while weakening arguments for Federal Reserve rate reductions.

Tuesday marked another volatile trading session following weekend military actions by U.S. and Israeli forces against Iran. Concerns about potential disruptions to the Strait of Hormuz, a vital shipping lane handling approximately 20% of global oil transport, have heightened worries about energy-fueled price increases.

“While not much has changed fundamentally since yesterday, investors are growing anxious about the duration of the war and its impact on energy prices,” explained Joseph Tanious, chief investment strategist at Northern Trust Asset Management in San Diego. “The reality is setting in that a prolonged conflict could dampen global growth and re‑ignite inflation pressures.”

Oil prices continued their upward climb for the second straight day, pushing major stock indices lower. The S&P 500 dropped 0.9%, reaching its weakest point in more than three months despite recovering from steeper earlier declines. All eleven sectors within the index posted losses, signaling widespread selling pressure.

International government bonds also weakened, though they recovered somewhat as traders assessed the likely duration of the conflict.

Wall Street’s volatility indicator, the Cboe Volatility index, climbed to its highest reading in over three months.

“The reaction has become more intense…there’s no sign of a quick resolution,” noted Que Nguyen, chief investment officer of equity strategies at Research Affiliates in Newport Beach, California. “People are waking up to the fact that this is a lot more complicated than they assumed.”

Market participants are particularly focused on how sustained oil price increases might pressure inflation. Brent crude recently traded near $81 per barrel, significantly higher than the roughly $60 level seen at year’s beginning.

The five-year U.S. breakeven inflation rate, which reflects market-based inflation expectations, climbed to 2.503% late Monday, marking the highest level since February 11.

According to Goldman Sachs economists, every sustained 10% rise in oil prices adds 28 basis points to the consumer price index, a key inflation measurement.

Market expectations for Federal Reserve rate cuts appear to be diminishing. Fed Fund futures Tuesday showed a 56% probability the central bank will maintain current rates at its June meeting, compared to greater than 50% odds for a cut that markets had priced in late last month, based on CME FedWatch data.

“The biggest issue that (investors) are trying to weigh gets back to the intertwining of inflation and interest rates,” said Chuck Carlson, chief executive officer at Horizon Investment Services.

While other geopolitical tensions involving the United States, including situations with Venezuela and Greenland, haven’t substantially damaged stocks, some investors view current weakness as a potential buying opportunity.

“We are taking cash we raised from tech to aggressively get more positioned for a global acceleration of economic growth,” said Eddie Ghabour, CEO of Key Advisors Wealth Management, whose firm has been purchasing emerging markets ETFs this week.

Even with this week’s declines, the S&P 500 remains just slightly more than 2% below its record closing high.

Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management, suggested the market’s resilience “suggests to me that investors might be underestimating the geopolitical risk.”

Market participants will closely monitor developments in coming days.

“We’re really still at the mercy of the headlines,” said Kevin Gordon, head of macro research and strategy at Charles Schwab. “The potential for whiplash in parts of the market is very high.”

The Walt Disney Company announced Tuesday that it has arranged a fresh $5.25 billion credit facility that will expire in under 12 months, taking the place of an existing financing arrangement worth the same amount.

The entertainment conglomerate’s new short-term borrowing agreement provides the company with continued access to substantial credit as it manages its financial operations.

Financial institutions across America are ramping up their cybersecurity defenses as Middle East tensions intensify following the recent killing of Iranian Supreme Leader Ali Khamenei in an airstrike last weekend, according to industry executives and security analysts.

The death of Khamenei has ignited widespread conflict throughout the Middle East region, causing global market volatility and raising serious concerns about potential Iranian-sponsored cyberattacks targeting American banking operations.

The banking sector has always maintained cybersecurity as a critical focus area, given its role in operating essential infrastructure including payment processing, clearing systems, settlement operations, and trading platforms – making these institutions attractive targets for hostile actors, industry data shows.

Todd Klessman, who serves as managing director for financial services cyber and technology at SIFMA, an industry organization that conducts annual emergency preparedness drills, stated: “The industry remains vigilant and ready to respond to cyber threats at all times, and especially when global cybersecurity risks are heightened.”

Klessman added: “We continue to monitor the current situation with a focus on operational resilience, which is foundational to the integrity and stability of the U.S. capital markets.”

A senior banking industry representative indicated that financial institutions are deeply worried about cyberattack risks, viewing such threats as highly probable under current circumstances.

Intelligence officials have assessed that Iranian-affiliated “hacktivist” groups may launch smaller-scale cyber operations against American networks, particularly distributed denial-of-service (DDoS) attacks that flood targeted servers with overwhelming internet traffic, Reuters reported Monday.

Credit rating firm Morningstar DBRS warned Tuesday that while the most substantial threats to international banks and investment managers would likely be indirect effects such as prolonged elevated oil prices and borrower stress, cyber risks could also escalate significantly.

“Iran could increase its cyberattacks against Western entities, including banks,” the rating agency cautioned.

Investment bank Lazard’s geopolitical advisory division similarly highlighted cyber threats this week, pointing out Iran’s demonstrated history of using cyber warfare capabilities against commercial entities, particularly financial infrastructure.

Data from the Financial Services Information Sharing and Analysis Center (FS-ISAC), an industry collaborative group, revealed in a 2025 report that financial services companies faced more DDoS attacks than any other sector during 2024, with conflicts involving Hamas-Israel and Russia-Ukraine driving increased hacktivist activity.

Although the financial industry has not experienced major disruptions from hostile attacks in recent years, smaller DDoS incidents and ransomware attacks have caused localized market interruptions.

In 2023, a ransomware attack against the American broker-dealer division of Industrial and Commercial Bank of China caused delays in settling certain U.S. Treasury transactions.

Intel Corporation announced Tuesday that chairman Frank Yeary will retire following the company’s annual shareholder meeting scheduled for May, with Craig Barratt set to take over the leadership position.

The leadership change represents a significant shift for Intel’s board of directors as the semiconductor giant continues to face challenges in the competitive chip market. Yeary has been a board member since 2009 and oversaw the selection of four different chief executives during his time with the company, including current CEO Lip-Bu Tan who assumed the role approximately one year ago.

Barratt brings extensive technology industry experience to his new role, having recently joined Intel’s board in 2025. His background includes previous positions at wireless technology company Qualcomm and Google, which operates under parent company Alphabet.

DETROIT – General Motors announced Tuesday it’s completely revamping its approach to used vehicle sales at dealerships across the country as it works to stay competitive with rapidly growing online car retailers such as Carvana.

The automotive giant revealed plans to eliminate its existing certified pre-owned program that has long supported dealer used car sales with company-backed warranties. In its place, GM is requiring dealerships to join its CarBravo online platform, which the company introduced in 2023 as a nationwide digital marketplace.

Beginning this June, dealers selling Chevrolet, Buick, and GMC vehicles must participate in the CarBravo program to offer used GM cars with factory warranties, the automaker announced. However, Cadillac dealerships will maintain access to GM’s traditional certified pre-owned system.

According to GM officials, this strategic shift will significantly boost the volume of pre-owned vehicles moving through dealer networks by incorporating non-GM brands and much older inventory. The new framework could provide warranty coverage for vehicles as old as 15 years, a dramatic expansion from current certified programs that typically only cover GM models up to five years old.

The transformation comes as the automotive industry faces mounting affordability challenges, with vehicle prices climbing more rapidly than general inflation throughout the current decade. This pricing pressure has driven explosive growth in the used car market, where approximately 40 million pre-owned vehicles change hands annually compared to roughly 16 million new car sales in recent years.

Used vehicle operations play a crucial role for manufacturers like GM by attracting customers to showrooms and facilitating trade-ins that lead to new car purchases.

“We know these customers that buy certified used vehicles, the propensity for them to come back and buy a new vehicle just increases,” explained John Fitzpatrick, who leads the CarBravo program.

Industry analyst Jeremy Robb from Cox Automotive points to companies like Carvana as catalysts for increased competition throughout the sector. Carvana’s direct-to-consumer model eliminates traditional dealership visits by selling vehicles online and delivering them to buyers’ homes.

Since launching a decade ago in 2013, Carvana moved 596,641 vehicles last year. By comparison, GM’s CarBravo platform has facilitated sales of approximately 216,000 cars since beginning operations in 2023.

Despite having fewer than 25% of GM’s 3,500 U.S. dealerships participating in CarBravo, the company reports the online platform is generating sales at a quicker pace than its broader certified pre-owned programs.

Andy Guelcher, who operates Mohawk Chevrolet in upstate New York, credits the digital selling platform with boosting his used car business by 52% over two years. “I’m talking to people that I’ve never spoken to before,” Guelcher noted.

A federal antitrust trial began Tuesday in Manhattan with Justice Department attorneys arguing that Ticketmaster and its parent company Live Nation Entertainment have created a stranglehold on the concert ticketing business that hurts both fans and performers.

Attorney David Dahlquist from the Justice Department’s antitrust division delivered opening statements to jurors, explaining that the federal government and 39 states are seeking to break up what they consider an illegal monopoly that inflates ticket prices.

“This case is about power, the power of a monopolist to control competition,” Dahlquist told the jury. “Today, the concert ticket industry is broken.”

Defense attorney David Marriott, representing the companies, challenged the government’s position and promised to present data contradicting the monopoly claims.

“We’ll let the numbers do the talking,” Marriott stated. “We do not have monopoly power.”

Federal Judge Arun Subramanian informed jurors they will hear testimony and review evidence for approximately six weeks before determining whether Live Nation and Ticketmaster violated federal antitrust regulations.

The legal action originated from a 2024 lawsuit claiming the companies have strangled competition and gained control over multiple aspects of the concert business, from event promotion to ticket sales.

Founded in 1976, Ticketmaster became the globe’s dominant ticket distributor for live entertainment, sports events, and theater productions after combining with Live Nation in 2010.

The Justice Department attorney highlighted the public backlash that occurred in November 2022 when Ticketmaster’s website failed during presales for Taylor Swift’s stadium tour.

Company officials blamed the technical failure on overwhelming demand from legitimate fans combined with automated bot attacks designed to purchase tickets for resale on secondary markets. The incident led to congressional investigations and proposed state legislation to strengthen consumer protections.

According to Dahlquist, Live Nation employs anti-competitive tactics including lengthy venue contracts spanning five to seven years that prevent competitors from entering the market, and restrictions that stop venues from working with multiple ticketing services.

The conflict between Ticketmaster and performers spans decades, with Pearl Jam challenging the company’s practices in 1994, though federal prosecutors chose not to pursue charges at that time.

Live Nation maintains that performers and their management teams control ticket pricing and distribution methods.

Defense attorney Marriott described Live Nation as the music industry’s greatest advocate for artists, facilitating 55,000 concerts featuring 11,000 performers for 159 million attendees in 2025.

He disputed government claims about company profits, arguing that while prosecutors claim Ticketmaster earns $7 per ticket, the actual revenue is $5 with net profits under $2 after operating costs.

According to Marriott, Live Nation and Ticketmaster “are all about bringing joy to people’s lives.”

American dairy farmers are getting better access to international markets thanks to four new trade agreements the United States completed in February with Indonesia, Taiwan, Argentina and Bangladesh. The National Milk Producers Federation and U.S. Dairy Export Council played key roles in advocating for these deals that will eliminate barriers preventing American dairy products from competing overseas.

Under the agreements with Indonesia, Taiwan and Bangladesh, all tariffs on American dairy exports will be eliminated. The deals also remove complex facility registration requirements that have made it difficult for US companies to sell their products, and they protect more than 36 common cheese names such as “parmesan” from being claimed exclusively by European producers.

These three countries purchased $3.6 billion worth of dairy products last year, but only 9% came from the United States. By removing trade obstacles, American suppliers will be better positioned to compete in these important Asian markets where people are consuming more dairy products.

The Indonesia deal builds upon existing relationships, including a memorandum of understanding the National Milk Producers Federation signed last May with Indonesia’s Chamber of Commerce and Industry to expand dairy trade and strengthen business connections. Similar partnership agreements were established with Taiwan’s Dairy Association in September to promote local dairy consumption and support school milk programs.

The timing of the Argentina agreement is particularly important as that South American nation prepares to implement the EU-Mercosur trade deal, which would give European suppliers better market access and potentially exclusive rights to certain cheese names. The US-Argentina agreement secures improved market access for several important American dairy products and includes protections for generic cheese terms while preventing additional trade barriers.

Serving as official advisors to US trade negotiators, the National Milk Producers Federation and U.S. Dairy Export Council stressed the need for lasting access to these expanding markets, ensuring American dairy farmers can compete fairly as the European Union pursues aggressive trade deals worldwide.

Both organizations have collaborated with the current administration to include new opportunities for US dairy exports in all nine reciprocal trade agreements completed so far. They plan to continue working closely with the US Trade Representative and other government partners to ensure complete implementation, though the timeline remains unclear. The organizations will monitor whether Indonesia, Taiwan, Argentina and Bangladesh fulfill their commitments to maintain open and predictable export markets for American dairy producers.

Financial markets worldwide saw a dramatic shift toward safer investments this week as tensions between the United States, Israel and Iran intensified, raising concerns about potential impacts on global economic growth and price stability.

According to data released Tuesday by LSEG Lipper, American money market funds saw their largest weekly inflows at $30.75 billion, leading all major investment categories as investors flocked to these traditionally secure assets. International bond funds also experienced renewed investor interest during the same period.

Worldwide, money market funds captured $47.9 billion in new investments, marking the second-highest weekly total since February 17, when these funds drew $48.2 billion.

Some riskier investment vehicles also benefited from the market uncertainty. Alternative equity funds in the U.S., which include private equity, hedge funds and leveraged exchange-traded funds that use financial instruments to amplify returns, received approximately $1 billion in new money.

Short-term and municipal bond funds in the United States similarly recorded positive inflows during the reporting period.

Energy-related investments gained traction as commodity prices climbed following military strikes by Israeli and American forces on Iranian targets, which disrupted energy infrastructure and shipping routes through the strategically important Strait of Hormuz. Natural resources equity funds focusing on energy and mining sectors attracted fresh investment capital.

Meanwhile, investors pulled back from stock market exposure, withdrawing $9.6 billion from funds focused on U.S. equities. International stock funds excluding U.S. markets and technology sector funds each experienced outflows exceeding $1 billion.

Global equity funds overall lost $9.1 billion on Monday alone, representing the largest single-day withdrawal in more than two months.

Stock prices for technology company MongoDB dropped dramatically on Tuesday, falling 27% to reach their lowest point in six months after the firm released disappointing financial projections and showed sluggish growth in its cloud database services.

The company’s Atlas cloud platform, which is positioned to benefit from the expanding use of artificial intelligence technology, saw revenue increase by 29% during the fourth quarter that concluded on January 31. This represented a decline from the 30% growth rate recorded in the prior quarter, and UBS financial analysts noted that MongoDB failed to provide a clear reason for this weaker performance.

Barclays analysts commented on the mixed results, stating: “Q4 was more mixed with a slightly lower Atlas beat level and below consensus FY27 guidance. Some of this could well be conservatism but in this tape, investors don’t have a lot of patience.”

Following the earnings announcement, more than 19 out of 42 financial analysts who track the company reduced their target prices for MongoDB stock, according to LSEG market data. These analysts also expressed concerns about the uncertain future growth prospects for the Atlas platform.

These disappointing results reflect broader challenges facing the software industry, where company stocks have taken significant hits in recent months due to concerns that AI tools developed by emerging companies like Anthropic might threaten traditional revenue sources.

If the stock losses continue, MongoDB could lose approximately $6 billion from its total market value of $26.45 billion.

Despite the cloud service concerns, MongoDB’s total revenue of $695 million exceeded analyst predictions, which had averaged $667.2 million according to LSEG compiled data.

For the upcoming first quarter, the company projected adjusted earnings between $1.15 and $1.19 per share, falling short of the $1.20 average estimate from Wall Street analysts.

Small businesses throughout Delaware and the nation grappled with significant financial strain from import taxes and rising inflation during 2025, according to a new Federal Reserve study released Tuesday.

The 2025 Small Business Credit Survey, conducted by all 12 regional Federal Reserve banks, identified increasing expenses for goods, services, and employee wages as the primary obstacle these companies encountered last year.

The survey found that over 40% of participating businesses reported that higher expenses linked to import taxes created financial difficulties, with retail and manufacturing sectors experiencing the most severe impact. Of those companies dealing with increased costs from the president’s trade policies, 76% transferred some expenses to customers while 60% absorbed portions of the additional costs internally.

According to the report, nearly half of surveyed companies obtain some materials from international sources, and the vast majority of these businesses saw foreign supply costs climb between 2024 and 2025.

Despite facing higher expenses, companies generally did not respond by switching suppliers or relocating operations to domestic sources, the study found.

Federal Reserve officials identified Trump’s import tax policies as a significant contributor to inflation during 2025, noting these measures caused their 2% inflation target to be exceeded. Most Fed policymakers anticipate the tariff effects will diminish throughout this year.

The Trump administration has consistently maintained that foreign countries bear the burden of these import taxes, arguing the policy aims to restore American manufacturing while generating government revenue. The administration has also employed these trade measures as diplomatic leverage.

However, recent analyses from the New York Federal Reserve and Congressional Budget Office concluded that, contrary to presidential claims, American consumers and businesses shoulder nearly all tariff costs. The future of the trade policy remains uncertain following a Supreme Court decision that found Trump’s extensive import taxes overstepped executive authority, though the president responded by implementing additional trade barriers.

The Federal Reserve study also examined small business adoption of artificial intelligence technology, discovering growing usage with minimal workforce disruption.

Nearly half of small companies currently utilize AI tools, while 15% intend to incorporate the technology within the coming year. The survey indicated that businesses primarily use artificial intelligence for content creation and marketing purposes, followed by enhancing individual worker efficiency.

While AI implementation did not alter labor expenses, it did boost productivity for numerous companies, according to the findings.

America’s top electricity provider announced ambitious plans Tuesday to construct massive amounts of new power generation capacity specifically designed to serve the nation’s rapidly expanding data center industry.

NextEra Energy revealed during a company presentation that it anticipates developing between 15 and 30 gigawatts of additional generation capacity through 2035 to meet the surging electricity demands from data centers across the United States.

The energy crunch stems from major technology companies’ aggressive push into artificial intelligence development, which relies heavily on power-hungry data centers for both training AI systems and deploying the advanced technology to users.

While data centers previously could connect seamlessly to existing electrical infrastructure, their massive and immediate power requirements now necessitate building entirely new power generation facilities to keep up with demand.

The scale of NextEra’s planned expansion is staggering – 30 gigawatts represents enough electricity to supply approximately 22 million American households, which exceeds the total residential power consumption of California, the nation’s most populous state.

The Florida-based energy giant indicated that natural gas will likely fuel a significant portion of this new generating capacity, noting the company currently has over 20 gigawatts of gas-powered generation projects in development.

NextEra operates through two main divisions: NextEra Energy Resources, which develops both renewable energy and natural gas power facilities, and Florida Power and Light, the company’s regulated utility operation.

A comprehensive study released Tuesday by the European Investment Bank reveals that companies across the European Union have successfully navigated increased tariffs imposed by the United States, though they continue to struggle with internal trade barriers within their own economic bloc.

The research, conducted by Europe’s largest investment institution, also found that European businesses match their American counterparts in artificial intelligence adoption, which has helped enhance their operational efficiency.

According to the bank’s findings, “The EIB Group Investment Survey 2025/2026 shows that EU firms adapted well to rapid technological advancement and the demands of the green transition, as well as sharp rises in U.S. tariffs.” The comprehensive study gathered data from approximately 13,000 companies during a four-month period spanning April through July of the previous year.

Last July, trade negotiators from Washington and Brussels reached an agreement establishing a 15% import duty on the majority of European products entering the US market. While this rate represents a significant reduction from initially proposed levels, it fell short of European hopes for eliminating tariffs entirely.

The survey noted, “When the United States raised tariffs, American firms expressed more concern than their EU counterparts. So far, the impact of tariffs has largely been absorbed by U.S. importers, with the effect remaining manageable for EU exporters.”

Despite success in handling external trade challenges, European businesses face significant hurdles closer to home. The study found that 62% of companies within the EU encounter difficulties when attempting to sell their products in other member nations, primarily due to conflicting national regulations across the 27-country union.

The research suggests substantial economic benefits could result from addressing these internal obstacles. “Removing these barriers could boost the ratio of firm investment to assets by 10%, with even stronger gains for intangible investment,” according to the report.

These conclusions align with previous research conducted by the International Monetary Fund, which determined that regulatory inconsistencies within the EU create trade barriers equivalent to imposing a 44% tariff on goods and a 110% tariff on services.

A top Federal Reserve official signaled Tuesday that additional interest rate reductions remain on the table as long as inflation trends downward, though he steered clear of discussing potential economic impacts from escalating Middle East tensions.

Speaking at a credit union conference in Washington, New York Fed President John Williams expressed confidence in the central bank’s current approach. “Monetary policy is currently well positioned to support the stabilization of the labor market and return inflation to our 2% goal,” Williams stated in his prepared remarks.

The Fed official emphasized that future rate decreases could become necessary to maintain economic balance. “If inflation follows the path I expect, further reductions in the federal funds rate will eventually be warranted to prevent monetary policy from inadvertently becoming more restrictive,” Williams explained.

Williams delivered his comments as financial markets worldwide experienced turbulence connected to U.S. and Israeli military operations against Iran. The conflict has primarily pushed energy costs higher, potentially adding pressure to inflation rates that remain above the Fed’s 2% objective.

Financial markets, concerned about inflation risks stemming from the war, have begun adjusting expectations for additional Fed rate reductions throughout the year.

Notably absent from Williams’ prepared speech was any discussion of how the conflict might influence economic conditions.

The Federal Reserve reduced its key interest rate by 0.75 percentage points in the previous year, bringing it to a range of 3.50%-3.75%. This move aimed to bolster a softening employment market while maintaining sufficient economic restraint to bring inflation back to target levels. Fed officials had anticipated additional cuts this year based on expectations of declining inflation pressure, though the war has introduced uncertainty to those projections.

Williams described the U.S. economy as fundamentally strong and projected 2.5% growth for this year. He attributed this optimism to “stimulus from fiscal policy, favorable financial conditions, and robust investments in artificial intelligence.”

Regarding employment, Williams characterized the job market as operating in a “low-hire, low-fire environment” that has reached stability. He anticipates unemployment rates will decline slightly both this year and in 2027.

The Fed official identified tariffs as a significant inflation driver this year, though he expects their influence to diminish by mid-year. This should allow overall inflation, measured by the Personal Consumption Expenditures Price Index, to decrease to 2.5% this year before reaching the 2% target by 2027. December’s PCE reading was 2.9%.

Williams emphasized that U.S. import tariffs impact domestic consumers “overwhelmingly” rather than foreign manufacturers. This conclusion, supported by recent New York Fed research, has faced strong opposition from the Trump administration.

Drivers filling up their tanks are facing sticker shock as gasoline costs surged 11 cents in a single day, bringing the national average to roughly $3.11 per gallon, AAA reported.

While fuel costs had already been climbing due to seasonal factors as oil companies transition to summer gasoline formulations, the recent military conflict involving U.S. strikes on Iran has sent crude oil markets into overdrive.

Tuesday witnessed oil futures climbing to their highest points in over 12 months following Iran’s retaliatory military response, which included drone attacks targeting the U.S. Embassy in Saudi Arabia.

Domestic crude oil prices surged 8.6% to reach $77.36 per barrel.

International Brent crude oil experienced a 6.7% increase, settling at $81.29 per barrel. Market analysts attribute the week’s dramatic price increases to fears that ongoing military actions could disrupt global oil supply chains.

A semiconductor company backed by tech giant Nvidia announced Tuesday it has secured $500 million in new funding, highlighting continued investor enthusiasm for artificial intelligence infrastructure.

Ayar Labs, which specializes in developing computer chips that use light rather than traditional electrical signals to transmit data, reached a valuation of $3.75 billion with this Series E funding round. The investment brings the company’s total raised capital to $870 million.

Investment firm Neuberger Berman spearheaded the funding round, with participation from several new investors including ARK Invest, Qatar Investment Authority, and 1789 Capital.

The strong investor interest reflects ongoing confidence in the AI sector, as venture capital and private equity firms continue placing significant bets on technologies expected to transform traditional business operations and drive substantial funding into infrastructure development companies.

Ayar’s innovative approach involves replacing conventional electrical signals with light-based transmission to accelerate communication between AI processing chips and memory components. This technology becomes increasingly valuable as major cloud providers and government entities invest hundreds of billions of dollars to establish dominance in AI infrastructure capabilities.

The company faces competition from similar firms including Celestial AI, which secured $250 million in funding last March, along with Lumentum and Coherent, both of which received $2 billion investments from Nvidia on Monday.

Company officials said the fresh capital will support expanded production capabilities and testing capacity, fuel global expansion efforts including operations at a newly established office in Hsinchu, Taiwan, and speed up deployment of their co-packaged optics technology solution.

A Delaware-area biotechnology company announced Tuesday it will explore selling itself or other strategic alternatives following disappointing results from a major drug trial.

Theravance Biopharma revealed that its experimental medication ampreloxetine did not achieve its primary objectives in advanced clinical testing. The treatment was designed to help patients with multiple system atrophy, an uncommon condition that causes potentially dangerous blood pressure drops when patients stand up.

According to the company’s announcement, participants who received the experimental treatment showed no significant symptom improvements when compared to those who received inactive placebo treatments.

The biopharmaceutical firm has enlisted investment banking firm Lazard to assist with evaluating its options, though company officials cautioned that no transaction is guaranteed to occur.

Trading of Theravance shares was suspended during pre-market hours following the announcement.

Financial markets are reducing their bets on Federal Reserve interest rate reductions in 2024 as escalating Middle East tensions push energy costs higher, raising concerns about renewed inflation pressures that could derail the central bank’s policy plans.

Oil prices have risen for three consecutive trading sessions amid the expanding U.S.-Israeli confrontation with Iran, which is disrupting fuel deliveries and sparking worries about potential supply interruptions from Middle Eastern oil and gas producers.

Market indicators reveal shifting expectations for Fed policy decisions:

The CME FedWatch Tool shows futures markets now price in just a 30.7% probability of a quarter-point rate reduction in June, falling sharply from 49.6% odds a week earlier and more than 56% likelihood a month ago. Market participants previously anticipated June would mark the Fed’s return to rate cutting after its December reduction, but now assign a 47.2% chance to a July decrease instead.

Goldman Sachs researchers noted in a Monday analysis that a persistent 10% jump in oil costs would increase core consumer prices by 4 basis points while boosting headline inflation by 28 basis points. Financial markets currently anticipate approximately 42 basis points of policy loosening through December, suggesting one quarter-point cut this year with uncertainty surrounding a second reduction.

Climbing oil costs threaten to reignite inflation pressures by rapidly increasing gasoline and transportation expenses, which flow through to higher costs for consumer goods and services across the economy.

Records from the Federal Reserve’s January policy session revealed a divided committee, with “several” members open to rate increases if inflation remains elevated, while other officials favored additional cuts should price pressures ease as anticipated.

The central bank is broadly expected to maintain current rates unchanged at its March meeting, extending the pause that followed three rate reductions in 2024.

The globe’s biggest sovereign wealth fund, operated by Norway, has entered the American renewable energy market for the first time with a major acquisition announced Tuesday.

Norway’s investment management arm, known as Norges Bank Investment Management, spent $425 million to secure a one-third ownership share in a collection of clean energy facilities spanning 17 solar installations and five land-based wind farms throughout the United States.

The complete portfolio carries an estimated total value of approximately $2.6 billion, according to officials with the Norwegian fund.

Two other major investors will join Norway in this venture, with British Columbia Investment Management Corporation and Brookfield each acquiring matching 33.3% ownership stakes in the renewable energy collection, which can generate roughly 2.3 gigawatts of electricity.

The three investment partners will operate their holdings through a newly created joint company called Northview Energy, which British Columbia Investment Management Corporation revealed could potentially invest an additional $1.5 billion in future clean energy projects across both the United States and Canada.

The social media platform Pinterest revealed Tuesday that Elliott Investment Management will purchase $1 billion worth of new stock in the company, a move that positions the investment firm to claim the top shareholder spot.

The announcement sent Pinterest stock climbing almost 9% in early trading, boosted further by news of a massive $3.5 billion program to repurchase company shares.

According to Pinterest, funds from Elliott’s investment will fuel the newly announced share buyback initiative.

The investment firm Elliott, known worldwide for its activist approach to investing, already held Pinterest’s third-largest ownership position at 4.8%, valued at approximately $725 million as of December, based on LSEG data.

“We have been steadfast supporters of Pinterest since we first invested in 2022, and have strong conviction in the company’s trajectory,” said Marc Steinberg, partner at Elliott, who is also on Pinterest’s board of directors.

The image-sharing company has intensified its focus on expanding its user base while taking advantage of artificial intelligence-powered shopping features that are gaining popularity. Pinterest reported 619 million users at the end of December.

Despite the company’s artificial intelligence initiatives driving user numbers to unprecedented levels, Pinterest continues to face challenges convincing Wall Street that these technological advances can translate into increased advertising dollars, especially while competing against larger platforms including Meta’s Instagram and Facebook.

Technology media company Ziff Davis announced Tuesday that it has reached an agreement to sell its Connectivity division to global consulting firm Accenture in a deal worth $1.2 billion cash.

The division being sold operates several well-known internet brands including Ookla, the company behind the popular Speedtest service, and Downdetector, which tracks website outages.

Following the announcement, Ziff Davis stock surged more than 45% during premarket trading sessions.

According to the company, the money from this sale will go toward general business operations and capital distribution activities, following the terms of existing debt agreements.

Ziff Davis expects the deal to finalize within the next few months.

The country’s leading electronics retailer exceeded financial analysts’ expectations for fourth-quarter earnings on Tuesday, as the company successfully managed to reduce operational expenses during a challenging holiday shopping period marked by cautious consumer spending.

Stock prices for the retailer jumped approximately 12% during pre-market trading sessions. Prior to this surge, the company’s shares had dropped nearly 8% since the beginning of the year.

The electronics giant has faced mounting challenges as consumers across the nation, dealing with increased living expenses tied to tariffs and employment uncertainty, have postponed major purchases.

“Our data sources show our overall market share was at least flat, pointing to slightly softer customer demand for our industry during the holiday quarter,” said CEO Corie Barry.

Despite these headwinds, the retailer successfully reduced operational expenses, including cutting costs within its domestic health division.

The company’s cost of sales for the three-month period totaled $10.93 billion, representing a decrease from the previous year’s figure of $11.03 billion.

The retailer reported adjusted earnings of $2.61 per share for the quarter, surpassing Wall Street predictions of $2.47 per share, based on data from LSEG.

Looking ahead, the company forecasts full-year comparable sales will range from a 1% decline to a 1% increase, while analysts had predicted growth of 1.63%.

A newly released European Central Bank research paper warns that the growing adoption of digital stablecoins across Europe could significantly impact traditional banking and monetary policy effectiveness.

The study, published Tuesday from Frankfurt, indicates that these digital currencies—which are designed to maintain consistent value—might pull customer deposits away from conventional banks and limit credit availability for businesses and consumers.

While stablecoins currently represent a relatively small market segment, their rapid expansion has sparked regulatory concerns about their potential to fundamentally alter both commercial banking and central bank operations.

The research highlights a primary concern for traditional financial institutions: as customers increasingly shift funds from bank accounts to stablecoin platforms, banks may be forced to seek more costly funding sources in financial markets.

“In other words, stablecoins can reduce the amount of credit banks provide to the real economy,” stated the paper authored by ECB economists.

Despite these concerns, the current scale remains manageable—European bank deposits total approximately 17 trillion euros (about $19.7 trillion), while the worldwide stablecoin market represents roughly $300 billion, indicating banks haven’t yet experienced significant deposit losses.

The European Central Bank faces a particular challenge since most stablecoins operate using U.S. dollars, a currency beyond ECB jurisdiction.

Should dollar-denominated digital assets become more prevalent across Europe, monetary decisions made outside the region could influence local liquidity and spending patterns, potentially diminishing the ECB’s policy effectiveness.

“Foreign monetary conditions could be ‘imported’ into the euro area through stablecoins,” the research noted, explaining this could reduce the central bank’s authority over financial conditions, particularly during economic turbulence.

Any negative impact on traditional banks would also compromise ECB effectiveness, since European economic policy relies heavily on banks to implement interest rate adjustments throughout the economy, making policy outcomes less predictable, according to the economists.

The study concludes that these potential risks necessitate comprehensive stablecoin regulation, including enhanced transparency standards for reserve holdings, reliable redemption assurances, sufficient capital reserves for loss protection, and rigorous oversight to minimize financial dangers.

Target Corporation surpassed Wall Street predictions Tuesday with its annual revenue and earnings projections, as the retail giant enters a new chapter under CEO Michael Fiddelke’s leadership, emphasizing store renovations and enhanced digital operations.

The Minneapolis-headquartered company’s stock jumped 4% in pre-market trading, though shares have declined over the past four consecutive years, underperforming competitors like Walmart.

The retailer has historically depended on non-essential merchandise including clothing and home goods for approximately 30% of yearly revenue, but this segment has consistently underperformed as economic uncertainty causes consumers to reduce discretionary purchases.

With Michael Fiddelke now at the helm, Target is prioritizing improved product selection, competitive pricing strategies, and enhanced in-store experiences to attract customers back to their locations.

“Target saw a healthy, positive sales increase in February, serving as an important milestone on our path back to growth this year, and reinforcing my confidence in the momentum we’re building and the future we’re creating together,” Fiddelke said.

The corporation anticipates 2026 net revenue growth of 2%, surpassing analyst predictions of 1.76% according to LSEG data.

Target forecasts annual earnings per share between $7.50 and $8.50, significantly higher than analyst estimates of $7.67 per share.

A major federal antitrust case against entertainment giant Live Nation and its Ticketmaster subsidiary commenced Tuesday in a Manhattan courtroom, where government prosecutors will argue the company has illegally cornered live entertainment markets.

The Manhattan jury trial represents part of a broader bipartisan effort to address consumer costs through aggressive antitrust enforcement. Federal prosecutors, working alongside the Justice Department and a coalition that includes most U.S. states, filed the lawsuit in 2024 under the Biden administration.

During Tuesday’s opening arguments, Justice Department attorneys plan to contend that Live Nation maintains unlawful monopolistic control over specific venue operations and ticket distribution networks. Should prosecutors succeed, they may pursue forcing Live Nation to divest Ticketmaster or overhaul its business agreements. New York state leads efforts among participating states to secure financial compensation for consumers.

Live Nation has dismissed the accusations as unfounded. “The outcome of this trial will do nothing to lower ticket prices for fans or address the industry issues they care about most,” a Live Nation spokesperson said.

The trial will feature testimony from notable figures including musician Kid Rock and Ben Lovett from Mumford & Sons, along with executives from competing ticketing services and entertainment venues such as Madison Square Garden.

Government prosecutors claim Live Nation forces musical acts to utilize its concert promotion services as a condition for performing at outdoor amphitheaters under the company’s ownership. Additionally, federal attorneys contend the corporation’s Ticketmaster division has seized control of ticket sales markets by using intimidation tactics and securing long-term exclusive agreements with prominent concert facilities.

While U.S. District Judge Arun Subramanian recently dismissed several aspects of the government’s case, he denied Live Nation’s motion to halt proceedings while the company pursues an appeal.