Bayer Gains Ground
Bayer shares advanced on the Frankfurt Stock Exchange after receiving a key endorsement from the European Medicines Agency (EMA) for its eye drug Eylea. The EMA’s Committee for Medicinal Products for Human Use (CHMP) issued a positive opinion supporting the use of an 8 mg dose with extended treatment intervals of up to six months. This update applies to two serious retinal conditions: neovascular (wet) age-related macular degeneration and diabetic macular edema. If the European Commission confirms the recommendation in the coming weeks, Eylea 8 mg would become the only anti-VEGF therapy in the EU offering such long intervals between injections for both diseases. A potential competitive advantage over Roche’s Vabysmo, which currently dominates part of the market. The ability to reduce the frequency of injections and clinic visits could significantly improve patient convenience and adherence. Christine Roth, Executive Vice President at Bayer Pharmaceuticals, highlighted that the extended dosing schedule, combined with Eylea 8 mg’s clinical profile, positions it as a potential new standard of care in retinal disease treatment.
Middle East Tensions Drive Oil Prices
Oil prices surged on Wednesday following reports that Israel may be preparing for a military strike on Iranian nuclear facilities, according to new U.S. intelligence cited by CNN. The news sent Brent crude above $66 per barrel, while West Texas Intermediate (WTI) rose as much as 3.5% before easing slightly. The potential for conflict has reignited concerns over stability in the Middle East, a region that supplies roughly one-third of the world’s crude oil. The report did not confirm whether Israeli leadership has made a final decision, but the possibility of military action has added a significant geopolitical risk premium to oil markets. The timing of the report is critical, as it comes amid fragile negotiations between the U.S. and Iran over the latter’s nuclear program. Analysts warn that any escalation could derail diplomatic progress and disrupt global energy supplies. “This development underscores the high stakes involved in the nuclear talks and the potential for significant market disruption if diplomacy fails,” said Robert Rennie, head of commodity and carbon research at Westpac. The geopolitical tension also briefly lifted safe-haven currencies like the Swiss franc and Japanese yen, though those gains were later pared. U.S. and Israeli officials have not commented on the intelligence report. Israel has long considered military options to counter Iran’s nuclear ambitions, but the effectiveness of such a strike remains uncertain due to the fortified nature of many Iranian facilities. Meanwhile, the oil market had been anticipating a potential supply increase later this year, with OPEC+ planning to ease production cuts and U.S. shale output still showing room for growth. However, prices near $50 per barrel could limit further expansion, according to ConocoPhillips’ CEO. Iran’s Supreme Leader recently expressed doubt about the outcome of the current negotiations with Washington. Analysts at Bloomberg Intelligence suggest that if sanctions on Iranian oil exports were lifted, WTI prices could fall to $40 per barrel.
Deere & Company Reports Strong Q2
Deere & Company announced impressive second-quarter earnings on Monday, exceeding market expectations despite lowering the lower end of its full-year net income forecast due to challenging market conditions. Following the announcement, the agricultural equipment maker’s stock saw a modest 1% increase. Despite a 21% year-over-year decline in sales within its Production & Precision Agriculture segment, Deere maintained robust operating margins across its key divisions. John May, chairman and CEO of John Deere, emphasized the company’s commitment to its customers and praised the team’s performance amid market challenges. In response to the dynamic market environment, Deere revised its full-year net income guidance to a range of $4.75 billion to $5.50 billion, compared to the previous forecast of $5.0 billion to $5.5 billion.
Meta’s AI Ambitions Clash with European Privacy Laws
Meta Platforms, a global technology company, is facing potential legal action from Austrian advocacy group NOYB over its plan to use European users’ personal data to train its AI models. NOYB, led by privacy activist Max Schrems, has announced its intention to seek an injunction against Meta, arguing that the company’s approach could lead to substantial claims if it proceeds with its data collection strategy. Meta plans to begin using personal data from European users of Instagram and Facebook starting May 27, citing “legitimate interest” under EU privacy regulations. The company intends to leverage this data to train and develop its generative AI models and other AI tools, which may be shared with third parties. Users will be provided with a link to a form allowing them to object to their data being used for AI training. Additionally, Meta has stated that private messages and public data from accounts belonging to users under the age of 18 will not be included in the training process. Schrems has challenged Meta’s justification, pointing to a previous ruling by the European Court of Justice that prevented the company from claiming “legitimate interest” in targeting users with advertising. He argues that the same principle should apply to AI training, questioning the legality of Meta’s approach. NOYB is considering filing injunctions and potentially pursuing a class action lawsuit for non-material damages. With over 400 million European Meta users, Schrems suggests that collective claims could amount to billions of euros. The advocacy group has invoked the EU Collective Redress mechanism, which enables consumers to file collective lawsuits against companies operating within the bloc. NOYB has set a deadline of May 21 for Meta to respond to its concerns. Meta has rejected NOYB’s claims, stating that its approach complies with EU regulations and that users have been given a clear option to object to their data being used for AI training. The company has notified users via email and in-app notifications, emphasizing that objections can be submitted at any time.
Ryanair to Raise Airfares
Ryanair, Europe’s largest low cost airline, has reported a 16% decline in annual profits, attributing the drop to a 7% decrease in ticket prices despite a 9% increase in passenger traffic, reaching a record 200 million passengers. The airline’s revenue grew 4% to €13.95 billion, but the company remains cautious about providing financial guidance for the upcoming year due to geopolitical risks, macroeconomic uncertainties, and potential tariff wars. The airline has adjusted its passenger target to 206 million for the next fiscal year, citing delays in Boeing aircraft deliveries. Despite these challenges, Ryanair anticipates strong summer demand, with airfares expected to rise by 4-5% in the second quarter. The airline’s stock has responded positively, climbing 2.59% following the earnings report and marking a 20.5% increase year-to-date. In addition to its operational performance, Ryanair has announced a €750 million share buyback program set to commence on May 25, alongside a dividend payout of €0.227 per share. The airline is also set to be included in the MSCI World Index by the end of May, reflecting its growing influence in global markets. CEO Michael O’Leary stated that while Ryanair expects to recover most, but not all, of last year’s fare decline, it is too early to provide meaningful guidance. The airline remains heavily exposed to external risks, including tariff disputes, geopolitical conflicts, and macroeconomic shocks. However, strong summer demand and cost-saving measures are expected to support profitability in the coming months.
Coinbase Faces Setbacks with Cyber Attack
Coinbase’s stock experienced a significant drop of over 8% following two major developments that raised concerns about the company’s security and regulatory compliance. The US based cryptocurrency exchange revealed that cyber attackers had stolen sensitive customer data and demanded a $20 million ransom. Instead of paying the ransom, Coinbase CEO Brian Armstrong announced a $20 million bounty for information leading to the attackers’ arrest. The breach affected less than 1% of Coinbase’s monthly transacting customers, and no passwords or private crypto wallet codes were compromised. In addition to the cyber attack, the New York Times reported that the Securities and Exchange Commission (SEC) is still investigating whether Coinbase misreported user data years ago. This investigation is a holdover from the previous administration and concerns a metric that Coinbase stopped reporting two and a half years ago. Coinbase’s chief legal officer, Paul Grewal, stated that the company is committed to resolving the matter with the SEC. The cyber attack is estimated to cost Coinbase between $180 million and $400 million, primarily for the bounty program and customer reimbursements. Armstrong emphasized the company’s commitment to security and transparency, stating that they will not pay the ransom but will work to bring the attackers to justice. Coinbase continues to navigate regulatory challenges and market volatility, but remains optimistic about its long-term growth and the broader acceptance of cryptocurrency.
Steel Division Drags Down Thyssenkrupp
Thyssenkrupp’s stock took a sharp dive on the Frankfurt Stock Exchange after the company reported disappointing quarterly results. The steel division, in particular, struggled, contributing to a notable drop in earnings. Despite these setbacks, the company remains committed to its financial targets for the fiscal year. In the second quarter, Thyssenkrupp experienced a decline in both orders and sales. The company’s operating profit also saw a significant decrease. However, the net profit was bolstered by gains from the sale of a subsidiary in India. The steel division’s performance was a major concern, showing a loss compared to a profit in the same period last year. CEO Miguel Lopez remains hopeful for the latter half of the year, anticipating a more stable market and positive outcomes from recent measures. Additionally, the company is planning to sell a minority stake in its Marine Division by the end of the year.
Aramco Predicts Strong Oil Demand
Saudi Aramco has projected that oil demand will remain strong throughout the year, with potential for additional growth if the ongoing US-China trade disputes are resolved. This forecast comes as both countries have temporarily reduced tariffs to mitigate the trade war’s global economic impact. During a post-earnings conference call, Aramco CEO Amin Nasser expressed optimism about the market’s trajectory. He noted that demand is expected to be steady and growing compared to 2024, and resolving tariff issues could further boost demand. Despite a 4.6% decline in first-quarter profits due to lower sales and increased operating costs, Aramco remains positive about the future. The profit dip reflects broader economic uncertainties affecting crude markets. In line with its Vision 2030 agenda, Saudi Arabia is diversifying its economy to reduce reliance on oil revenues. Some ambitious projects have been downsized to prioritize infrastructure for global sporting events. The OPEC+ group plans to increase oil production, potentially adding up to 2.2 million barrels per day by November. Aramco estimates that this increased production could boost its annual operating cash flow by approximately $1.9 billion. Despite the challenges posed by tariffs and market volatility, Aramco reported resilient growth in the second quarter of 2025. Nasser emphasized the company’s strong financial standing and adaptable capital strategy. Aramco has also entered into a venture agreement with China Petroleum & Chemical Corporation (Sinopec) to enhance the Yanbu Refinery in Saudi Arabia. This expansion includes a new mixed-feed steam cracker and aromatics plant, aimed at improving the refinery’s integration and supporting industrial diversification efforts. The project will utilize existing facilities to construct new units, including a 1.8 million tonnes per annum (mtpa) ethylene plant and a 1.5 mtpa aromatics plant, with accompanying downstream polyolefin units.
Kraft Heinz Invests $3 Billion in U.S. Factory
Kraft Heinz is set to invest $3 billion to modernize its U.S. factories, marking its largest investment in a decade. Despite consumer sentiment being at its second lowest point in 70 years, leading to reduced sales and profit forecasts, the company is moving forward with this substantial upgrade. The enhancements aim to improve efficiency and reduce costs, helping to counteract the impact of tariffs imposed by President Donald Trump. Pedro Navio, Kraft Heinz’s president of North America, highlighted that the investment would also accelerate the development and launch of new products. Kraft Heinz manufactures popular products like Heinz ketchup, Kraft macaroni and cheese, and Philadelphia cream cheese at 30 plants across the U.S. Despite the challenges posed by tariffs and economic uncertainty, Kraft Heinz is committed to defending its market share and ensuring long-term production capabilities. Currently, Kraft Heinz faces tariffs on imports such as coffee, following a recent 10% levy on all imported goods by the U.S. However, imports from China, which are subject to higher tariffs, are minimal. The company has requested a 60-day notice from suppliers before implementing price hikes. Most of Kraft Heinz’s products sold in the U.S. are domestically produced, with some exports to Canada.
FedEx Stock Rises Amid New Partnership
FedEx (FDX) shares saw a notable increase on Tuesday following the announcement of a new collaboration with Amazon.com (AMZN) for last-mile delivery services. FedEx shares were up at in premarket trading, building on a gain from Monday. Shares of United Parcel Service (UPS) also benefited, since the November 5 election, largely due to concerns over high tariffs advocated by President Donald Trump, which typically negatively impact shipping volumes. FedEx, which had previously walked away from its Amazon business in 2019, has now re-entered the partnership. Amazon spokesman Steve Kelly confirmed the agreement, stating that FedEx would serve as one of several third-party partners for package delivery. This new relationship with FedEx does not replace UPS, as Amazon continues to utilize multiple logistics providers, including UPS, the U.S. Post Office, and FedEx. Despite this, Amazon delivers two-thirds of its own packages, amounting to approximately 5.9 billion packages in the U.S. in 2023, according to Capital One Shopping Research. The USPS delivered around 7 billion packages in 2023, while FedEx Ground delivered close to 3 billion packages in its fiscal year ending May 2024.