Read Sunday ☕️

Last Week’s Headlines

Economy & World News

• Putin Announces Temporary Ceasefire Amid Crimea Truce Rumors
  Russia declared a May 8–11 ceasefire tied to Victory Day celebrations, shortly after Trump claimed Zelenskyy may concede Crimea to secure a broader peace deal.

• Senator Hawley Revives Bill to Ban Congressional Stock Trading
  Senator Josh Hawley reintroduced the PELOSI Act, aiming to bar lawmakers and spouses from trading individual stocks—a move backed by Trump’s pledge to sign it and intended to restore public trust in Congress.

• Spain and Portugal Recover After Massive Power Outage
  Power has been fully restored across the Iberian peninsula after one of Europe’s worst blackouts in years, though officials in Spain and Portugal are still investigating the cause of the sudden disruption to transport and communication systems.

• California Surpasses Japan as World’s Fourth-Largest Economy
  With $4.1 trillion in GDP, California has officially overtaken Japan in global rankings, fueled by 6% growth in 2024—outpacing the U.S., China, and Germany—as Governor Newsom warns federal tariffs could threaten this momentum.

• China’s Factory Activity Contracts to 16-Month Low Amid U.S. Trade Tensions
  China’s PMI dropped to 49.0 in April, signaling contraction as U.S. tariffs disrupt trade, with container shipments to America plummeting amid escalating economic tensions.

• Private Payroll Growth Slows Sharply to 62,000 in April
  Job gains came in well below expectations, with April marking the weakest increase since July 2024—led by leisure and hospitality, transportation, finance, and construction.

• U.S. GDP Contracts 0.3% as Imports Surge Ahead of Tariffs
  GDP shrank due to a 41.3% spike in imports—a response to looming Trump tariffs—creating a complex signal for the Fed as inflation pressures persist despite negative growth.

• U.S. Secures Resource Access in Ukraine as Part of Peace Push
  The U.S. reached a deal for priority access to Ukrainian resources—including aluminum, graphite, oil, and gas—as part of a broader effort to solidify Trump’s support in peace talks and back Ukraine’s long-term reconstruction.

• Jobless Claims Jump to Highest Level Since 2021
  First-time unemployment claims rose to 241,000, exceeding expectations, while continuing claims climbed to 1.92 million—the highest since November 2021, signaling rising layoff momentum.

• Trump Ousts NSA Chief Waltz Amid Foreign Policy Shake-Up
  The removal of Mike Waltz as national security adviser adds to turmoil in Trump’s security team, as the president moves to centralize foreign policy control around loyalists like Marco Rubio and Steve Witkoff, amid escalating crises in Iran, China, Gaza, and Ukraine.

• Buffett Dismisses Market Volatility as "Nothing" Significant
  At Berkshire’s annual meeting, Warren Buffett downplayed recent stock market swings, saying even a 50% drop in Berkshire’s stock wouldn’t faze him—and calling current conditions far from a dramatic bear market.

Public Markets

• Shein Hikes U.S. Prices Ahead of Looming Tariffs
  Fast-fashion retailer Shein raised prices by up to 377% on U.S. listings—especially in beauty, kitchenware, and toys—as new tariffs on small China shipments threaten to reshape online shopping costs.

• IBM Commits $150 Billion to U.S. Investment Over Five Years
  IBM will invest $30B+ in R&D for quantum and mainframe computing as part of a $150B pledge to boost U.S. tech leadership—joining firms like Apple and Eli Lilly responding to Trump-era manufacturing and tariff policies.

• Amazon’s Kuiper Satellites Successfully Launch After Delay
  Project Kuiper, Amazon’s ambitious plan to deploy thousands of internet satellites, is now underway—setting the stage for a direct rivalry with SpaceX’s Starlink in global broadband coverage.

• GM Halts Buybacks, Pulls 2025 Outlook Amid Tariff Uncertainty
  Citing Trump-era tariffs, GM has suspended $4B in share repurchases and withdrawn its 2025 earnings guidance, joining other U.S. firms in bracing for the economic fallout of rising trade tensions.

• UPS to Cut 20,000 Jobs, Close Dozens of Sites Amid Amazon Slowdown
  Facing reduced volumes from Amazon, UPS plans to lay off 20,000 workers and shut 73 facilities by June as part of a sweeping network overhaul to adapt to shifting e-commerce dynamics.

• Novo Nordisk Partners with Telehealth Firms to Expand Wegovy Access
  To counter copycat sales and reach more cash-paying patients, Novo Nordisk is teaming up with Hims & Hers, Ro, and LifeMD—a move that signals full Wegovy supply and sent partner shares soaring up to 36%.

• Microsoft Beats Estimates, Cloud Growth Leads the Way
  Microsoft topped revenue and earnings forecasts, with Azure outperforming expectations—though investors are watching closely for commentary on how Trump’s tariffs may affect future performance.

• Meta Surges on Strong Q1 Revenue, Raises 2025 Capex Outlook
  Shares jumped 5% after Meta beat revenue estimates, with Q2 sales projected up to $45.5B—though the company noted softening ad spend from Asia and raised its 2025 capex to as much as $72B amid higher infrastructure costs.

• McDonald’s U.S. Sales Drop 3.6%, Worst Decline Since 2020
  First-quarter same-store sales fell amid bad weather and weaker consumer demand, marking the biggest U.S. drop since early pandemic levels, as earnings beat but revenue missed estimates.

• GM Slashes Profit Outlook by Billions Amid Tariff Fallout
  General Motors cut its full-year earnings forecast to $10B–$12.5B from $15.7B, citing up to $5B in tariff-related costs—one of the largest corporate hits yet from Trump’s trade war.

• Kohl’s Fires CEO Ashley Buchanan Over Conflict of Interest
  Kohl’s ousted CEO Ashley Buchanan after uncovering a “highly unusual” business deal tied to his romantic partner, Chandra Holt—a move that raised serious concerns about personal and professional entanglement.

• Obesity Drug Price War Heats Up Between Novo and Lilly
  Novo Nordisk and Eli Lilly are battling for market dominance by cutting rebate deals with PBMs and telehealth firms, as high list prices for Wegovy ($1,349) and Zepbound ($1,086) trigger investor concerns over how low net prices may fall.

• Temu Halts Direct China Shipments to U.S. Amid Tariff Surge
  Facing higher tariffs and the end of the de minimis exemption, Temu has stopped direct shipments from China, marked products as out of stock, and imposed import charges of 130%–150% on remaining listings.

• Apple Partners with Anthropic to Build AI-Powered Coding Tool
  Apple is developing a new version of Xcode powered by Anthropic’s Claude Sonnet model to automate code writing, editing, and testing, marking a strategic shift as the company increasingly embraces AI to accelerate internal product development.

• Warren Buffett to Hand Over Berkshire CEO Role to Greg Abel by Year-End
  In a surprise announcement at Berkshire’s annual meeting, Warren Buffett said Greg Abel will take over as CEO by year-end, marking the end of an era as the 94-year-old Oracle of Omaha prepares to pass the torch after nearly six decades at the helm.

Real Estate & Private Equity

•  Eli Manning Assembles Investment Group to Buy Minority Stake in Giants
  Eli Manning is leading talks with retired NFL players and investors to purchase part of a 10% non-controlling stake in the New York Giants, as the Mara and Tisch families explore a partial sale with Moelis & Co.

• Conagra Sells Chef Boyardee to Brynwood Partners for $600M
  The nearly 100-year-old brand will join Brynwood’s Hometown Food Company, as Conagra continues reshaping its portfolio to focus on frozen foods, snacks, and “GLP-1 friendly” offerings amid shifting consumer trends.

M&A, IPO’s, Bankruptcies

•  Merck Acquires SpringWorks Below Expectations Amid Biotech Slump
  Germany’s Merck is buying SpringWorks Therapeutics for $3.9 billion, a ~20% discount from analyst forecasts, as patent expirations and weak biotech valuations weigh on deal pricing.

• Mediobanca Makes €6.3B Bid for Banca Generali to Fend Off Takeover Threat
  In a bold move to boost wealth management and counter Monte dei Paschi’s hostile bid, Mediobanca is offering €6.3B—partly funded by its 13% stake in Assicurazioni Generali—aiming for €300M in synergies and >20% return on equity.

• DoorDash Eyes $3.6B Acquisition of Deliveroo
  DoorDash proposed to acquire Deliveroo for £1.80 ($2.40) per share, valuing the company at £2.7B (~$3.6B), with Deliveroo’s board signaling it would likely support the offer if formally made by the May 23 deadline.

• Merck Invests $1B in New U.S. Plant to Brace for Tariffs
  Merck is building a Delaware facility to manufacture Keytruda and biologics, aiming to expand domestic production and offset $200M in tariff-related costs tied to Trump’s trade policies.