Category: Financial news

American Express is set to launch a significant refresh of its U.S. Consumer and Business Platinum Cards later this year, marking the largest investment in the product’s history. This update aims to enhance the travel, dining, and lifestyle benefits that have long defined the Platinum Card, while also appealing to younger generations who now account for 35% of U.S. consumer spending.

The refresh includes expanded access to over 1,550 airport lounges worldwide, with three new Centurion Lounges opening in Newark, Salt Lake City, and Tokyo, bringing the total to 32. In the dining space, American Express is strengthening its global footprint through Resy and its recent acquisition of Tock, adding 7,000 new restaurants, wineries, and venues to its network.

Hotel benefits are also being upgraded. The Fine Hotels + Resorts and The Hotel Collection programs now feature 2,600 curated properties, with late check out at over 1,600 locations an exclusive benefit among credit card issuers. Business Platinum Card Members will see enhancements tailored to support business growth, including adaptive spending limits, virtual cards, and access to cash flow management tools, alongside the same premium travel and lifestyle perks available to consumer cardholders. American Express is also expanding its portfolio of exclusive experiences, offering access to events in motorsports, tennis, music, and more. Additional brand partnerships and benefit details are expected to be announced in the fall.

Dutch technology investor Prosus NV (XAMS-PRX) disclosed that its core headline earnings for the full year reached $7.4 billion, marking a 47% increase compared to the previous year and surpassing its financial goals, thanks to its growth in lifestyle e-commerce.

According to the company, e-commerce sales saw a 21% rise, totaling $6.2 billion, driven by advancements in artificial intelligence and other innovations, as it continued to extend its presence in regions like Latin America, Europe, and India.

Prosus, which is under the ownership of Naspers, a South African tech investor, is transforming itself from an investment firm into a lifestyle technology enterprise. This strategic change was emphasized by BofA in a note before the earnings announcement, as it could enhance financial returns and alter its investment outlook.

“We are progressing well with our acquisition of Just Eat Takeaway.com, which will lead to the establishment of a new AI-focused tech leader in Europe,” stated CEO Fabricio Bloisi.

In late February, Prosus revealed plans to acquire Just Eat Takeaway for 4.1 billion euros ($4.72 billion), with the goal of forming a dominant tech entity in Europe. For the first time ever, Prosus reported a positive free cash flow, excluding the dividend received from its stake in Tencent, increasing to $36 million from a negative $235 million in the prior financial year.

“Our expectations are that this positive trend will persist, aiming for an increase in adjusted EBIT by at least the same level by the end of 2026,” declared Chief Financial Officer Nico Marais in a statement.

Etihad Airways (XADS-ETIHAD) has confirmed its readiness to go public, with the final decision now resting in the hands of its shareholders. Group CEO Antonoaldo Neves stated that while no official date has been set for the initial public offering (IPO), the airline is fully prepared to proceed once it receives the green light. “We’re IPO-ready. The moment our shareholders decide, we can move forward,” Neves said during a recent interview. He emphasized the airline’s robust financial health, noting that its strong balance sheet positions it well for a public listing.

The potential IPO aligns with a broader trend in the UAE, where several state-linked enterprises have gone public in recent years to deepen capital markets. Investor appetite remains strong, as evidenced by the recent oversubscription of Dubai Residential REIT’s IPO by 26 times. In the first quarter of 2025, Etihad reported a record after-tax profit of AED 685 million, marking a 30% year-on-year increase. Revenue rose 15% to AED 6.6 billion, driven by growth in both passenger and cargo operations. The airline carried 5 million passengers during the quarter, with a load factor of 87%.

Etihad is also aggressively expanding its fleet. The airline recently confirmed an order for 28 wide-body Boeing aircraft, including 787s and 777Xs, with deliveries starting in 2028. Neves revealed that over the past few years, Etihad has quietly acquired or leased more than 60 aircraft, bringing its fleet from around 70 in 2022 to 100 today. “We prefer a flexible approach to fleet expansion,” Neves explained. “Rather than locking in large orders, we make smaller, strategic purchases to maintain adaptability.”

Meanwhile, Emirates Airline has also indicated IPO readiness, with its leadership stating that a public listing would proceed if directed by the Dubai government. As the UAE continues to position itself as a global financial hub, the potential listing of Etihad Airways could mark another milestone in the region’s economic diversification strategy.

Swedish fintech company Klarna has announced its entry into the U.S. mobile services market with the launch of a new unlimited 5G plan, priced at $40 per month. This move places Klarna among a growing number of financial technology firms expanding into telecommunications to diversify their revenue streams.

The mobile plan will be powered by Gigs, a U.S.-based startup backed by Google. Gigs enables companies to become mobile virtual network operators (MVNOs) by leveraging existing infrastructure in this case, through a partnership with AT&T without owning the physical network. Klarna’s CEO, Sebastian Siemiatkowski, described the initiative as a natural extension of the company’s neobank ambitions, aiming to address everyday consumer needs. With over 25 million users in the U.S., Klarna is prioritizing the American market for this launch, with plans to expand to the UK, Germany, and other regions later in the year.

This trend of fintechs entering the telecom space is gaining momentum. Companies like Revolut, N26, and Nubank have already introduced mobile services in various countries. Outside the fintech sector, notable figures such as actor Ryan Reynolds and even the Trump family business have also ventured into mobile services. According to Mordor Intelligence, the U.S. MVNO market is projected to grow from $14.83 billion in 2025 to $20.84 billion by 2030.

Nissan Motor is reportedly preparing to reduce its equity stake in long time alliance partner Renault, according to a report by the Nikkei. The move would align with the automaker’s strategy to reallocate capital toward new vehicle development amid a challenging global automotive landscape.

Currently holding a 15% stake in Renault, Nissan is considering selling approximately 5%, which could generate around 100 billion yen (roughly $640 million) based on current market valuations. This potential divestment follows a March agreement between the two companies to lower their mutual minimum shareholding thresholds from 15% to 10%.

Under the terms of their revised alliance, any share transactions must be coordinated and include a right of first refusal, ensuring both parties maintain strategic oversight. Ivan Espinosa, Nissan’s Chief Executive Officer, emphasized the company’s focus on product innovation. “We are bringing down our cross-shareholdings in order to invest in vehicles,” he told the Nikkei. Despite the potential sale, Nissan confirmed that its cooperative framework with Renault remains unchanged. In a statement, the company noted that while no final decision has been made, proceeds from any future share sale would likely be directed toward product development initiatives. The development comes as Renault faces its own leadership transition, with CEO Luca de Meo announcing his departure to pursue opportunities outside the automotive sector.

STARBUCKS CORPORATION (XNAS:SBUX) is seeing renewed investor interest, with shares climbing over 4% to surpass $95 levels not seen since April. The stock is now approaching the $100 mark it last held in March before broader market pressures, including new tariffs, triggered a decline below $80.

The rally comes amid a mix of positive developments. Citi analysts raised their price target for Starbucks from $84 to $95, aligning closely with the stock’s current trading range. The upward revision reflects growing confidence in the company’s turnaround efforts.

A key part of Starbucks’ strategy includes the introduction of Green Dot Assist, a new AI powered assistant designed to streamline store operations. The tool will help baristas with tasks such as reviewing beverage recipes and troubleshooting equipment issues. This move is part of a broader initiative to improve efficiency and ensure customers are served within four minutes a central goal of the company’s plan to revitalize traffic and sales.

In addition to operational improvements, Starbucks is also exploring strategic options in China, where its business has faced challenges. CEO Brian Niccol confirmed that the company is considering selling a minority stake in its underperforming Chinese operations and has already attracted significant interest from potential partners.

Roblox Corporation (XNYS: RBLX) is aiming to capture a significant slice of the $190 billion global gaming industry. Cofounder and CEO Dave Baszucki recently shared the company’s ambitious goal of having 10% of the gaming market operate on the Roblox platform.

“We’re seeing more engaging content and a broader demographic reach,” Baszucki said, pointing to the company’s efforts to build a more diverse and global ecosystem of creators and players.

Roblox’s first quarter results for 2025 exceeded expectations, driven by increased engagement from users over the age of 13 and the introduction of new gaming genres. The company reported a 29% year-over-year increase in revenue, reaching $1.03 billion. Bookings, which reflect in-game currency sales, rose 31% to $1.2 billion. Average daily active users climbed 26% to 97.8 million, while total hours engaged on the platform surged 30% to 21.7 billion. Looking ahead, Roblox forecasts full year revenue between $4.3 billion and $4.365 billion, representing nearly 20% growth. Adjusted operating profit is projected to range from $205 million to $265 million, with mid-range growth of about 28%.

The company’s strong performance has driven its stock to a 52-week high, with shares up 165% over the past year. Despite this rally, the average analyst price target stands at $77.95 approximately 16% below current trading levels suggesting some caution among market watchers.

Michelin has announced plans to close its tire manufacturing facility in Queretaro, Mexico, by the end of 2025. The move comes as the company adapts to evolving market demands in the passenger car and light truck segment.

The closure will impact approximately 480 employees. According to Michelin, the decision was made as a “last resort” due to the plant’s inability to meet current market requirements. The facility, one of the company’s oldest in Mexico, is primarily configured to produce smaller-sized tires, which have seen declining demand as consumers increasingly favor vehicles with larger rims and tires.

Michelin emphasized that its corporate operations will remain in Queretaro. Meanwhile, production will continue at its more modern facility in León, Guanajuato, which has been operational since 2016 and is considered one of the company’s most advanced plants globally. The company has not disclosed specific details regarding severance or transition support for affected workers but stated that it is committed to handling the closure responsibly.

In a recent legal development, Reddit has filed a lawsuit against the artificial intelligence firm Anthropic, citing unauthorized data collection practices. The suit, lodged in California Superior Court in San Francisco, accuses Anthropic of deploying automated tools to extract user generated content from Reddit without proper consent.

Reddit asserts that Anthropic utilized automated bots to access and harvest user comments, contravening explicit directives to refrain from such activities. The social media platform maintains that this data was subsequently used to train Anthropic’s AI model, Claude, without seeking permission from the content creators.

Ben Lee, Reddit’s Chief Legal Officer, emphasized the importance of safeguarding user data: “AI companies must operate within clear boundaries regarding data usage to protect individual privacy and content integrity.”

While Reddit has established licensing agreements with various tech giants, including Google and OpenAI, to permit the use of its content for AI training under controlled conditions, it claims that Anthropic’s actions circumvented these protective measures. Such agreements are designed to uphold user rights, including content deletion requests and privacy safeguards.

Founded in 2021 by former OpenAI executives, Anthropic’s Claude chatbot competes directly with OpenAI’s ChatGPT. The company has historically relied on diverse online sources like Wikipedia and Reddit to enhance its AI’s language comprehension capabilities. Interestingly, Reddit’s lawsuit diverges from typical legal actions against AI firms, as it does not allege copyright infringement. Instead, it focuses on breaches of Reddit’s terms of service and issues of unfair competition. This case could set significant precedents concerning data usage rights and ethical AI development practices.

The Walt Disney Company has confirmed another round of global layoffs, affecting several hundred employees across its film, television, and finance divisions. This move is part of the entertainment conglomerate’s ongoing efforts to adapt to rapid changes in the media landscape, particularly the shift from traditional cable television to digital streaming platforms.

A company spokesperson stated that Disney is “continually assessing how to manage operations efficiently while maintaining the high level of creativity and innovation that audiences expect.” The latest job reductions follow a significant restructuring in 2023, when approximately 7,000 positions were eliminated as part of a $5.5 billion cost-cutting initiative led by CEO Bob Iger.

The current layoffs will impact various departments, including marketing teams for both film and television, as well as roles in casting, development, and corporate finance. Despite the cuts, Disney emphasized that no entire teams will be disbanded and that the process has been “surgical” to minimize disruption. Disney, which employs around 233,000 people globally over 60,000 of whom are based outside the United States owns a broad portfolio of entertainment brands, including Marvel, Hulu, and ESPN. Financially, the company reported a strong start to 2025, with revenue reaching $23.6 billion in the first quarter, a 7% increase year over year. Growth was largely driven by a rise in Disney+ subscriptions.

On the content front, Disney released several films this year. While the live action remake of Snow White underperformed at the box office amid critical backlash, the animated feature Lilo & Stitch achieved record breaking success during the Memorial Day weekend, generating over $610 million in global ticket sales, according to Box Office Mojo.