Category: Financial news

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.

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.

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 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 (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.

Gold futures experienced a significant drop as the United States and China reached an agreement to substantially lower tariffs, boosting risk-on sentiment in the markets. Continuous gold futures on the New York Mercantile Exchange fell by 3.6% to $3,223.80 per troy ounce during European morning trading, marking the lowest level since May 5. Despite this decline, gold remains up over 20% year to date, driven by safe haven demand amid market volatility and geopolitical conflicts.

The U.S. has reduced its reciprocal tariffs on Chinese imports from 125% to 10%, while China has similarly lowered tariffs on U.S. goods to 10% from 125%. These reductions are set to remain in place for 90 days to facilitate further discussions, according to U.S. officials. U.S. Treasury Secretary Scott Bessent, who led the U.S. trade delegation in Switzerland over the weekend, reported substantial progress in the negotiations.

In addition to the tariff reductions, the demand for gold as a safe-haven asset has been further weakened by easing geopolitical tensions. A ceasefire between India and Pakistan appears to be holding after recent border clashes, and Ukrainian President Volodymyr Zelensky has invited Russian President Vladimir Putin to meet in Turkey for talks ahead of a potential ceasefire.

The semiconductor industry has seen impressive growth in recent years, with companies like Nvidia, Broadcom, and Taiwan Semiconductor Manufacturing Company (TSMC) capitalizing on key market trends. Nvidia, for instance, has surged forward with its advanced graphics processing units (GPUs), which play a critical role in training artificial intelligence models. Meanwhile, Broadcom has solidified its standing by supplying vital network infrastructure to data centers and assisting businesses in custom chip design. TSMC, on the other hand, remains the dominant force in chip manufacturing, serving major players like Nvidia, Qualcomm, and Advanced Micro Devices.

Intel, a diversified semiconductor giant, has not enjoyed the same level of success in its foundry business. The company’s foundry segment has been under significant financial strain, with 2024 revenues totaling $17.5 billion marking a 7% decline from the previous year. Compounding this issue, Intel recorded an operating loss of more than $13.4 billion in the segment, nearly doubling its losses from 2023.

In the first quarter of 2025, Intel reported an encouraging 7% year over year growth in foundry revenue, reaching $4.7 billion. However, company executives noted that some of this revenue had been pulled forward from future quarters, signaling potential deceleration in the coming months.

BYD, China’s leading automaker, has set an ambitious target to sell half of its vehicles outside China by 2030. This expansion strategy focuses on Europe and Latin America, driven by the company’s rapid growth in its home market, where it sold 4.27 million vehicles last year. Despite facing significant trade barriers in the U.S. and tariffs in the EU, BYD is determined to establish a strong global presence.

To achieve this goal, BYD plans to open new manufacturing plants in Hungary and Turkey, with another plant expected in Brazil. The company has already established operations in Thailand and is actively seeking a location for a third European plant. This expansion is supported by BYD’s diverse lineup of electric and hybrid vehicles, which have been instrumental in its success in China.

BYD’s growth strategy is not without challenges. The company must navigate complex international trade regulations and compete with established automakers in new markets. However, BYD’s confidence is bolstered by its explosive growth in China over the past five years, driven by the popularity of its affordable EVs and hybrids.

The company’s global ambitions have caught the attention of industry leaders. Ford CEO Jim Farley has identified BYD as a major competitor in the race to develop profitable electric vehicles. Despite the competitive landscape, BYD’s chairman, Wang Chuanfu, is often compared to Henry Ford for his role in revolutionizing the automotive industry with mass-produced EVs.

BYD’s early efforts in Europe have shown promise, with sales more than quadrupling in the first quarter of 2024 compared to the same period the previous year. The company captured a 4.1% share of the European EV market, demonstrating its potential to compete on a global scale.

Palantir Technologies’ stock tumbled today despite surpassing first-quarter expectations and raising its full year guidance, as concerns over its lofty valuation weighed on investor sentiment. Despite a 60% year to date surge, analysts warn that Palantir’s price to earnings ratio remains extraordinarily high, reflecting expectations of sustained 30-40% annual revenue growth over the next five years.

The company currently trades at 64 times projected 2026 sales, far exceeding competitors like CrowdStrike, which holds the second highest valuation in the software industry at 18 times sales. Even with a potential 70% decline, Palantir would remain one of the most expensive software stocks. While its latest financial results were strong, analysts expect revenue growth to slow slightly in the second half of 2025 or early 2026, potentially dropping from 39% to 36% still among the highest in the sector. With an impressive 44% operating profit margin last quarter, Palantir is executing well, but valuation concerns present a significant challenge.

Even if the company maintains its strong performance, its stock price could face downward pressure due to a lack of valuation support. As the market weighs future growth prospects, the question remains whether Palantir can sustain its momentum or if a correction is on the horizon.

In the latest quarter, Ahold Delhaize, reported a revenue increase of 7% to €23.3 billion compared to the same period last year. However, profit margins were slightly lower. The company’s American supermarkets, which include Stop & Shop and Food Lion, saw significant price reductions, leading to increased sales but reduced profit margins. The net profit for the quarter was €554 million, with the average profit margin in the U.S. market at 4.4%, down from 4.6% last year.

Despite economic uncertainties, Ahold Delhaize remains attractive to shareholders, with its stock price on the AEX index rising by 15% since the beginning of the year. In Europe, the company managed to achieve slightly higher profits per product, despite lengthy price negotiations with brand suppliers.