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Amazon’s Zoox issued a software recall for 270 of its robotaxis after a crash in Las Vegas last month, the company said Tuesday.

The recall surrounds a defect with the vehicle’s automated driving system that could cause it to inaccurately predict the movement of another car, increasing “the risk of a crash,” according to a report submitted to the National Highway Traffic Safety Administration.

Zoox submitted the recall after an April 8 incident in Las Vegas where an unoccupied Zoox robotaxi collided with a passenger vehicle, the NHTSA report states. There were no injuries in the crash and only minor damage occurred to both vehicles.

“After analysis and rigorous testing, Zoox identified the root cause,” the company said in a blog post. “We issued a software update that was implemented across all Zoox vehicles. All Zoox vehicles on the road today, including our purpose-built robotaxi and test fleet, have the updated software.”

Zoox paused all driverless vehicle operations while it reviewed the incident. It’s since resumed operations after rolling out the software update.

Amazon acquired Zoox in 2020 for over $1 billion, announcing at the time that the deal would help bring the self-driving technology company’s “vision for autonomous ride-hailing to reality.” However, Amazon has fallen far behind Alphabet’s Waymo, which has robotaxi services operating in multiple U.S. markets. Tesla has also announced plans to launch a robotaxi offering in Austin in June, though the company has missed many prior target dates for releasing its technology.

Zoox has been testing its robotaxis in Las Vegas, Nevada, and Foster City, California. Last month, Zoox began testing a small fleet of retrofitted vehicles in Los Angeles.

Last month, NHTSA closed a probe into two crashes involving Toyota Highlanders equipped with Zoox’s autonomous vehicle technology. The agency opened the probe last May after the vehicles braked suddenly and were rear-ended by motorcyclists, which led to minor injuries.

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The XRP price remains under pressure after falling for five consecutive days, and moving to its lowest level since April 22. Ripple remains 37% below the highest point in January, meaning investors have lost billions of dollars in the past few months.

The likely catalyst for the XRP price is the upcoming approval of Ripple ETFs by the Securities and Exchange Commission. This article explores how high the coin will jump if it achieves the $8 billion inflows analysts at JPMorgan expect.

Odds of XRP ETF approval are high

XRP has become one of the most popular cryptocurrencies this year. As a result, it has had the most ETF applications by companies like Franklin Templeton, Bitwise, Canary, and Grayscale. 

While odds on Polymarket have fallen from 84% in April to 76% today, most analysts believe that the approval is just a matter of time. While the SEC has an October deadline, the approval will likely happen sooner.

Besides, the SEC is now being led by Paul Atkins, a lawyer who has been supportive of the industry for a long time. 

The SEC has already taken several actions to support the industry. For example, it has ended several lawsuits against companies like Ripple Labs, Uniswap, Coinbase, and Immutable.

JPMorgan analysts believe that the XRP ETFs will have over $8 billion in inflows in the first year. If accurate, this would make these ETFs higher than Ethereum ones.

Ripple price outlook if the ETFs hit the JPMorgan outlook

It is hard to predict how high the XRP price would go after the ETF approvals, since there are many moving parts. 

One easy way to predict this is to add $8 billion to the coin’s market cap, which in this case, would bring its valuation from $123 billion to $131 billion. 

XRP has a circulating supply of 58.5 billion. Therefore, dividing the two numbers would bring the XRP price to $2.25, a few points above the current level. This approach, however, has limitations, and there are chances that the price would rise higher than the forecast.

Another approach is to use a certain multiplier. A more conservative approach is to compare how Bitcoin has jumped since its ETF application. It has soared by over 210% since the approval in January last year.

Assuming that the XRP price rises by the same margin, there is a likelihood that the coin will surge to $5.25. Such a move would bring the coin’s market cap to over $388 billion, which is reasonable.

Read more: XRP price surges 6% as SEC acknowledges another XRP ETF proposal

XRP has other catalysts

The XRP price also has other catalysts that may push its value higher in the long term. First, Rippl Labs is aiming to disrupt the payment industry by having a solution that is faster and cost-effective than SWIFT. This goal may become achievable since the Ripple vs SEC case ended recently.

Further, Ripple Labs is becoming a major player in the stablecoin industry as its RLUSD market cap has jumped to over $317 million. It is also seeking to acquiring Circle, a top company that runs USDC, which has over $61 billion in assets. 

XRP price will benefit as Visa anticipates that the stablecoin market will be worth over $1.6 trillion in the next few years. 

XRP price has bullish technicals

XRP price chart | Source: TradingView

Further, as the chart above shows, XRP price has strong technicals that will push it higher over time. That’s because it has formed a falling wedge pattern, which is made up of descending and converging trendlines. It has also formed a bullish pennant pattern, pointing to a rebound to the year-to-date high of $3.4.

The post XRP price prediction if spot Ripple ETFs hit JPMorgan’s $8 billion target appeared first on Invezz

Lucid Group stock price has crashed this year and is underperforming the broader market amid growth and profitability concerns. LCID crashed to a low of $2.35 on Tuesday and is hovering slightly above last year. 

It has plunged from $64 in 2020 to become a penny stock with a market cap of $7.2 billion, down from a record high of over $112 billion. This article explores what to expect when the company publishes its results on Tuesday.

Lucid Group earnings ahead

The LCID stock price will be in the spotlight on Tuesday as the Tesla rival publishes its first-quarter numbers. 

These data come at a difficult time for the automobile industry as the recently announced auto tariffs lead to supply chain issues. 

Lucid Group is, to some point, insulated from the general auto tariffs since it manufactures its vehicles in the United States. This means that its vehicles will not be tariffe, although the raw materials it uses will be. 

The other risk is that Lucid’s global expansion push may be affected since it has no plants outside the US. As such, potential markets like those in Europe and even Canada will likely retaliate by boosting vehicle tariffs from the US.

Wall Street analysts are optimistic that Lucid Group will report relatively strong numbers. The average estimate is that its revenues will be $246 million, up by 42.5% from the first quarter of last year. 

The most recent numbers showed that Lucid Motors produced 2,212 vehicles in the first quarter. It also had 600 vehicles on transit to Saudi Arabia for final assembly. It then delivered 3,109 vehicles during the quarter. 

Analysts also expect the company to narrow its losses. They expect the numbers to show that the loss per share will be 23 cents, an improvement from last year’s 30 cents. 

The annual guidance is also expected to show that the company’s business was growing. Analysts see the annual revenue rising from $807 million in 2024 to $1.47 billion this year and $2.8 billion in the next one.

Read more: Lucid stock price could be at risk amid strong vehicle depreciation

Is LCID stock a good buy

Lucid Group has made a lot of progress in the past few year, even though its profitability has remained elusive.

The most recent numbers revealed that it produced 9,029 vehicles in 2024 and delivered 10,241 of them. It also guided to an annual production target of 20,000 vehicles this year, representing a 121% increase. This explains why many analysts anticipate that its annual revenue will jump by over 80% this year. 

Lucid has also raised cash to boost its balance sheet. It recently raised $1 billion through a convertible senior notes offering. A convertible note is a form of debt financing, but where the lenders have the ability to convert their debt into stock if it rises. 

This fundraising was important as the company ended the last quarter with over $1.6 billion in cash and investments, and $2.4 billion in short-term investments. 

Lucid Group also acquired assets owned by Nikola and extended offers to about 300 of the company’s former staff.

Lucid Group stock price analysis

LCID stock chart | Source: TradingView

The daily chart shows that the LCID share price peaked at $3.65 in January and then dropped to $2.35. It has dropped below the 50-day moving average.

Most importantly, it has formed a bearish flag chart pattern, a popular bearish continuation sign. It has also formed a rising wedge pattern, another reversal sign. 

Therefore, the stock price will likely drop after earnings. If this happens, the next point to watch will be at $2, the lowest level on March 11. A move above the resistance point at $2.65 will invalidate the bearish outlook.

The post Lucid Group stock forecast ahead of earnings: buy, sell, or hold? appeared first on Invezz

The FTSE 100 Index has rebounded in the past few weeks as investors bought the dip and as global stocks surged. It has risen in the last 15 consecutive days, its longest winning streak in years. This article lists some of the top FTSE Index shares that are leading the charge this year.

FTSE 100 Index chart by TradingView

Top FTSE 100 shares of 2025

Most companies in the FTSE 100 Index have rallied this year even as concerns surrounding tariffs remain. 

Babcock International, a top player in the defense industry, is the best-performing company in the FTSE Index this year as it jumped by 67%.

Similarly, BAE Systems, another top player in the defense industry, has jumped by 54% this year. These firms have done well as investors focus on the rising defence spending in Europe and the United States.

Germany, a country that has always been conservative on spending, made headlines earlier this year when it voted to approve deficit spending worth billions of euros.

Other European countries like Italy, the UK, and France are all working to boost their defense spending, citing the unreliability of the United States under President Donald Trump.

Fresnillo stock has surged by 62% this year, making it the second-best-performing company in the FTSE 100 Index. This surge happened because of its industry since it is one of the biggest silver mining companies in the world. As such, its business is benefiting from the rising silver price, which has jumped to $33 from the year-to-date low of $28.

Silver has rallied because it is widely seen as gold’s small cousin. With the gold price rising, many people have moved to silver to benefit from its strong momentum.

Endeavor Mining share price has jumped by 45% this year, bringing the 12-month gains to 22%. Like Fresnillo, the Endeavor stock price is doing well because of its exposure to the commodity industry. The company is a top gold producer with mining operations in Senegal, Ivory Coast, and Burkina Faso. Its stock has soared because of the rising gold prices.

Other top FTSE Index top gainers

Coca-Cola share price has soared by 40% this year because the company is often seen as an all-weather player that does well in all market conditions. It is less exposed to Trump’s tariffs because most of its manufacturing is local and consumers always take its products.

Rolls-Royce’s share price has jumped by 37% this year as demand for its products and services has remained high. In its results last week, the management hinted that it will hit its annual profit and cash flow targets despite Trump’s tariffs.

Lloyds share price has soared by 30% this year, making it the best-performing bank stocks in the FTSE 100 index. This rally continued last week after it published strong earnings, helped by increased mortgage lending business. It has also largely settled the motor insurance claims that cost it over £1 billion last year.

The other top companies in the FTSE 100 Index are Prudential, Next PLC, Admiral Group, Aviva, NatWest Group, and BT Group.

Top laggard in the Footsie Index

Not all companies in the blue-chip Footsie Index have rallied this year. The top laggards in the index are WPP, Bunzl, Ashtead Group, Melrose Industries, JD Sports, Intercontinental Hotels, and Anglo American.

WPP, the biggest advertising agency in the world, has plunged by 30% this year as demand for advertising business waned. This demand may continue to wane as companies focus on cost savings because of Donald Trump’s tariffs.

Ashtead Group stock price has dropped by 18% this year as recession risks in the UK and the United States remain. Historically, equipment rental demand tends to wane when there is a downturn.

Looking ahead, the next important catalyst for the FTSE 100 Index will be the upcoming Bank of England interest rate decision. Analysts expect that the tariff issue will push the bank to cut interest rates by at least 0.25%.

The post FTSE 100 Index is surging: here are the top shares in 2025 appeared first on Invezz

Brent crude oil price remained under pressure this week as concerns about global supply continued. It dropped to a low of $58.7 on Monday, its lowest level since February 2021 also as analysts from companies like Citigroup, Goldman Sachs, and Morgan Stanley slashed their oil price forecast.

Why crude oil price is crashing

Brent and West Texas Intermediate (WTI) have crashed and are hovering at their lowest level in years. This decline happened amid the rising concerns of a supply and demand imbalance.

Analysts at the International Energy Agency (IEA) and the Energy Information Administration (EIA) have all downgraded their demand estimates because of the rising trade war between the United States and other countries.

The EIA reduced its demand estimate by 300k barrels of oil a day, meaning that its annual growth will continue by just 730k this year. Similarly, the EIA and OPEC have all lowered their demand estimates for the year.

At the same time, the International Monetary Fund (IMF) has slashed its global growth estimate, and now expects the average rate to be 2.8% this year and 3% in 2026. These estimates are lower than the previous guidance of 3.3%. Oil demand often fall when the global economy is not doing well. 

Read more: Here’s why the Brent crude oil price could crash below $50 soon

Supply concerns pushes Citi, Goldman Sachs, and Morgan Stanley to slash forecast

The Brent crude oil price has also dropped as concerns about the rising global supply remain.

OPEC+ member countries announced that they would increase the daily production by over 400k barrels a day. It was the second time in a row that the cartel has decided to increase the daily output.

More supply will likely come from Iran if it reaches a deal with the United States. With its economy struggling, there is a likelihood that the country will be open to a deal in the coming months. 

The ongoing supply and demand imbalance explains why analysts have slashed their crude oil price forecast. Barclays has slashed its forecast by $4 per barrel to $66 for this year and $60% for 2026. 

Morgan Stanley analysts slashed their oil prediction to $62.50 as it expect the oil market glut to hit 1.1 million barrels a day, up by 400k from its previous estimate.

Similarly, analysts at Goldman Sachs see the crude oil price falling to $60 this year, down from the previous estimate of $63. It also sees the price falling to $52 last year. 

There are signs that oil producers are adjusting their budgets. Russia, which makes most of its money from energy. According to Bloomberg, the country is now considering changing its budget-building mechanism as prices plunge. It will do that by reducing the threshold of its budget from $60 to $50. 

Brent crude oil price forecast

Brent crude oil price chart

Our last crude oil prediction pointed to more downside, with Brent falling to below $50 later this year. This forecast continues to work out well as Brent has dropped to $58.7, its lowest level in years.

The main reason for this is that Brent has formed a descending triangle pattern, a popular bearish continuation sign. It has dropped below the key support level at $70, the lower side of this triangle.

Brent remains below all moving averages, while all oscillators have pointed downwards. Therefore, the price will likely continue falling, with the next target to watch being the psychological point at $50. A move below that level will point to further downside, potentially to $47. 

This target is derived from measuring the widest part of the triangle and then measuring the same from the lower side. A move above the resistance at $70 will invalidate the bearish oil forecast.

The post Brent crude oil price forecast by Citi, Goldman Sachs, and Morgan Stanley appeared first on Invezz

Warner Bros. Discovery stock price has crashed and is hovering near its all-time low of $6.68 after plunging to a high of $16.14 in 2023. 

The WBD share price continued its sell-off this week after Donald Trump announced new tariffs on all foreign-made movies that could affect some of its titles like Dune, A Minecraft Movie, Supergirl, and JJ Abrams’ Next Feature.

This article explores what to expect ahead of Warner Bros. Discovery earnings scheduled for later this week.

Warner Bro. Discovery is facing challenges 

The WBD stock price has retreated in the past few years as the company has started facing many challenges. Like other Hollywood studio company, it went through a prolonged strike that affected its slated productions and caused substantial losses.

It is also one of the most indebted companies in the media industry with over $36 billion in long-term debt, $6.9 billion in deferred tax liability, and $3 billion in capital leases. On top of this, the company has over $6.5 billion in other non-current liabilities.

Most importantly, Warner Bros. Discovery is one of the top companies in the television industry, where it owns companies like CNN, Discovery Channel, and OWN. All these brands are struggling to gain market share as demand for television content wanes and cable cutting continues.

WBD earnings ahead 

The next important catalyst for the WDD stock price will be the upcoming quarterly earnings, which will provide more color about the state of its business.

The most recent financial results showed that most of its business continued struggling in the last quarter.

Its total revenue dropped by 2% in the quarter to $10.0 billion as its advertising business plunged by 12%. This segment may continue struggling as companies lower their marketing budget because of Donald Trump’s tariffs.

The distribution business was flat, with its revenue remaining at $4.91 billion, while the content revenue fell by 2% to $2.90 billion.

Warner Bros. Discovery also reported a net loss of $200 million, which happened because of a $1.9 billion acquisition-related amortization and restructuring costs.

Analysts will be watching the upcoming financial results, which will come out on May 8. The expectation is that its revenue dropped by 3.65% in the first quarter to $9.59 billion.

Its loss-per-share are expected to come in at 13 cents, an improvement from the 40 cents it lost last year. Still, there is a likelihood that the earnings will be lower than expected since it has missed in two of the last two earning.

The 25 analysts tracked by Yahoo Finance expect that its annual revenue will be $38 billion, down by 1.47% from last year.

Analysts are largely bullish on WBD stock, pointing to its cheap valuation, potential for spinning off its television business, and its debt reduction measures. Some of the most bullish analysts are from companies like Wells Fargo, Keybanc, Barclays and Raymond James.

The average WBD stock price forecast by analysts is $13, up from the current $8.37.

Warner Bros stock price analysis 

The weekly chart shows that the WBD share price has remained under pressure in the past few years as it became one of the worst-performing companies in the media industry.

It has formed a descending triangle pattern whose lower side is at $6.97. This triangle is one of the most bearish patterns in the market.

WBD stock has formed below all moving averages. Therefore, the most likely scenario is where it crashes to the psychological point at $5, down by about 40% below the current level. A move above the upper side of the descending trendline will invalidate the bullish outlook.

The post Here’s why Warner Bros stock price could crash to $5 after earnings appeared first on Invezz

Vestas, a prominent wind turbine manufacturer, issued a warning on Tuesday regarding the anticipated consequences of President Donald Trump’s implemented import tariffs, specifically highlighting the potential for increased electricity prices for consumers across the US. 

The company explicitly stated its inability to internally absorb the additional financial burden imposed by these tariffs, according to a Reuters report

This assertion suggests a direct pass-through of these costs down the supply chain, ultimately affecting the final price of wind energy projects and, subsequently, the cost of electricity generated from wind power. 

Vestas’ statement underscores the potential negative repercussions of import tariffs on the renewable energy sector and the broader energy market

Impact of trade tensions

This raised concerns about the impact of tariffs on the affordability and accessibility of clean energy for American households and businesses. 

The inability of a major player like Vestas to mitigate these tariff costs signals a potentially wider trend affecting other companies within the wind energy industry and related sectors. 

This situation could potentially slow down the growth of wind power deployment in the US and hinder the transition towards cleaner energy sources.

The wind turbine industry relies on globally sourced components and materials, which exposes it to potential disruptions from international trade tariffs.

Vestas CEO Henrik Andersen was quoted in the Reuters report:

Ultimately, the tariffs will go in and be part of an increased cost to the projects and therefore it will lead to an increased price in electricity.

Vestas, the largest wind turbine manufacturer outside of China, anticipates “notable challenges” stemming from the current tariffs. 

The Danish company specifically highlighted the potential impact on fulfilling its existing order backlog in the US.

Andersen did not provide specific figures for potential price increases, noting that the extent of these increases would depend on the project’s location and schedule, according to the report.

Earnings performance

Vestas announced a first-quarter operating profit of 14 million euros ($15.8 million) before one-off items. 

This result surpassed analyst expectations from a recent poll, which had anticipated a loss of 29 million euros.

Vestas anticipates that potential tariff impacts can be managed within their existing 2025 financial outlook, which led to an approximate 4% increase in the company’s share price.

Besides tariffs, the wind industry’s growth is hampered by grid bottlenecks, protracted permitting, tighter financing, and strong US government resistance to offshore wind development.

Meanwhile, Equinor’s Empire Wind I offshore construction in New York State has been halted following a stop-work order from US Interior Secretary Doug Burgum, the Norwegian energy company announced last month. 

This development is a setback for both Equinor and the broader offshore wind industry.

Anderson further stated that the possible loss of the 810-megawatt order is not expected to have a major effect on Vestas.

He said:

If it’s not being built, we adjust it out of the backlog, and then we take the turbines to some of our other customers if it’s possible to reallocate.

The post Wind turbine giant Vestas unable to absorb tariff costs, predicts price hikes in the US appeared first on Invezz

In a significant shake-up in the global food delivery industry, US-based DoorDash has agreed to acquire British rival Deliveroo in an all-cash deal valued at £2.9 billion.

The offer, priced at 180p per share, marks the end of Deliveroo’s volatile tenure on the London Stock Exchange since its 2021 listing.

Deliveroo’s board approved the offer, which represents a premium to recent trading levels but values the business at less than half of its IPO valuation.

Deliveroo’s share price jumped at the announcement, and was trading 1.8% higher at 10:50 am London time.

DoorDash, headquartered in San Francisco, said the deal aligns with its strategy of global expansion and would not trigger competition concerns given the lack of overlap between the two companies’ geographic markets.

Deliveroo exits the London market after turbulent listing

Founded in 2013 by Will Shu and Greg Orlowski, Deliveroo once symbolised the high-growth potential of UK tech.

However, its market debut in March 2021 was marred by falling share prices, weak investor appetite, and mounting competitive pressure from rivals such as Uber Eats and Just Eat Takeaway.

Despite turning its first annual profit earlier this year, Deliveroo has struggled to sustain momentum, leading to speculation about a potential takeover.

The company operates in nine countries, while DoorDash has a presence in over 30, including the US, Canada, Australia, and New Zealand.

Shu, who still holds a 6.4% stake in the business, is set to earn £172.4 million from the transaction.

He called the agreement “the beginning of a transformative new chapter”, adding that both companies share a strategic vision to scale operations and enhance customer value.

Deal to support competitiveness in its markets: analysts

Analysts expect the deal to proceed without regulatory hurdles, given DoorDash’s absence in Deliveroo’s core markets.

Sean Kealy, analyst at Panmure Liberum, said Doordash’s intention to increase investment in Deliveroo indicated that the deal was designed to “support competitiveness in its markets.”

“[It’s] a clear indication that DoorDash is acquiring the business to accelerate its growth,” he said.

Jefferies analysts said the recommended final offer came “well ahead” of a May 23 deadline for DoorDash to make good on its initial proposal, “suggesting that the engagement to date had been more substantive than originally signalled”.

The transaction follows a trend of consolidation in the sector, exemplified by Prosus’s €4.1bn move to take Just Eat Takeaway private earlier this year.

Tony Xu, CEO of DoorDash, said the merger would combine the American group’s operational expertise with Deliveroo’s local market knowledge.

Both companies have recently expanded into grocery delivery and advertising services, areas seen as crucial for long-term profitability.

What is driving consolidation in the takeaway sector?

The DoorDash-Deliveroo tie-up is the latest in a series of consolidation moves sweeping through the global food delivery sector as companies grapple with cooling demand and tougher market dynamics.

Earlier this year, Prosus, the European investment arm of South Africa’s Naspers, agreed to a €4.1 billion deal to take Just Eat Takeaway — Europe’s largest food delivery platform — private.

The transaction marked a significant shift in the industry, underlining the growing pressure on public-market food delivery companies.

In the United States, GrubMarket, a $3.6 billion logistics and food delivery startup backed by heavyweights including Tiger Global and BlackRock, acquired FreshGoGo, a New York-based Asian grocery and meal delivery service.

The acquisition was part of GrubMarket’s broader consolidation strategy aimed at expanding its reach in the consumer-facing segment.

Uber also attempted to strengthen its regional presence by agreeing to buy Delivery Hero’s Foodpanda business in Taiwan last year.

However, the deal collapsed in early 2025 after Taiwan’s Fair Trade Commission blocked the transaction.

The regulator cited competition concerns, noting that a successful acquisition would have given Uber a near-90% market share in Taiwan’s food delivery sector, raising the risk of price hikes.

These deals come as the pandemic-fuelled boom in takeaway orders continues to lose steam.

The period between 2020 and 2021 saw a surge in delivery startups, many of which built sophisticated platforms connecting restaurants, delivery drivers, and end-customers.

Flush with venture capital, they aggressively competed for market share through promotions and discounts.

But by 2022, shifting consumer behaviour and broader economic pressures, including rising inflation and a slowing job market, started to erode growth in the sector.

Many companies began to experience stagnating revenues, and investors turned cautious as food delivery began to look more like a low-margin utility than a high-growth tech play.

As discretionary spending tightened and consumers returned to dining out, companies were forced to scale back, streamline operations, or seek mergers to stay competitive.

The result has been a steady consolidation of players, particularly in overlapping geographies.

The DoorDash acquisition of Deliveroo underscores this trend — a strategic response to muted growth expectations and a bet that greater scale can support long-term profitability through operational efficiencies and wider market access.

The post Doordash buys Deliveroo for £2.9B: what’s behind the global food delivery merger wave? appeared first on Invezz

April witnessed some extraordinary market moves.

Not just in US equities, but across bond markets as well.

Summarising market movements triggered by President Trump’s tariffs, on the last day of April, the NASDAQ was still trading around levels seen just before Mr Trump listed out his reciprocal tariffs on ‘Liberation Day’ at the beginning of the month. That is quite an achievement. 

Trump’s tariff rates were far above anything the market had prepared for (suggesting, perhaps, that the Treasury is far less leaky than the Defence Department), and investors reacted accordingly.

This saw the NASDAQ 100 lose over 17% between Wednesday night and Monday.

Before this, the NASDAQ was already in reverse gear, having dropped 12% from its record high in late February.

The bloom had certainly come off the rally that greeted Trump’s election victory in early November.

But, in a move foreshadowed by President Trump’s actions during his first term, it didn’t take long for him to row back on most of his tariff threats. 

Just one week after Liberation Day, the president postponed all tariffs, save a flat 10% levy on US imports, for ninety days (we’re just about one third of the way through the postponement).

The big exception was China. Mr Trump upped levies on Chinese imports to 145%, and China responded with 125% tariffs on the US.

Since then, the Trump administration has been petitioned by major companies such as Apple, and exemptions have been forthcoming. 

Investors cheered this apparent softening from the administration.

They were so pleased by this, as well as the president insisting that he had ‘no intention’ of sacking Jerome Powell as Chair of the US Federal Reserve, that they rushed back to hoover up battered equities, leading to a one-day gain in the NASDAQ 100 of over 13%.

Since then, there have been some wild stock market sessions. 

Yet equities appeared to be steadying at higher levels.

As noted earlier, the NASDAQ and S&P 500 were pretty much unchanged from pre-tariff levels. 

This led many observers to say that the worst is over, particularly as the Trump administration insists that deals are on the table, intimating, yet not stating outright, that India, Japan, and the European Union were all contenders to be first to the finishing line.

The trouble is that a huge amount of damage has already been done, and arguably, risk markets are only just pricing this in.

On the last trading day of the month, Advance GDP for the first quarter dropped by 0.3% annualised, below the +0.2% expected and miles away from the prior quarter’s +2.4%.

There was also an unexpectedly large decline in ADP Payrolls, with the official Non-Farm Payroll release still two days away.

Fortunately, there was a welcome drop in Core PCE, the Fed’s preferred inflation measure. 

But the trouble is that tariffs have barely started, suggesting that there could be significant weakness in US economic data over the coming months.

And that won’t reverse quickly, even if Trump cancelled all tariffs immediately.

Supply chains have been torn apart, with freight workers and others at West Coast ports already being laid off.

Container ships from China languish anywhere but near the US coastline.

While the Dow Jones Industrial Average is down around 10% from all-time highs, the Transportation Average, an old but important measure of economic activity, has lost 24%. 

Trade between the US and China is in a state of suspended animation, and that looks likely to put the former into recession.

Add in the current earnings season, with companies unwilling, or unable, to provide forward guidance (and when they do, it’s negative), and things look grim economically.

That’s not to say US equities are about to tank again.

The stock market and the economy are two different things.

But if US companies feel unable to pass on their tariff costs to consumers, then that will compress profit margins.

In that case, valuations will come under considerable scrutiny.

Expect volatility to pick up again.

If there’s one positive thing to come out of President Trump’s first 100 days, it’s that these have been good times for traders, even as they prove terrible for investors.

(David Morrison is a Senior Market Analyst at Trade Nation. Views are his own.)

The post The cruellest month appeared first on Invezz

Embraer, the world’s third-largest aircraft manufacturer behind Airbus and Boeing, reiterated its full-year financial and delivery targets on Tuesday.

The Brazilian planemaker reported a robust first-quarter performance, claiming that US tariffs imposed earlier this year had only a “limited impact” and had no effect on its results.

The company stated that the trade tariffs did not affect commercial aircraft operations during the first quarter.

Embraer remarked that the presence of US material in their aircraft helped mitigate tariffs’ impact.

Nonetheless, it made operational changes to reduce the exposure of its Phenom and Praetor executive jets to the trade dispute.

Despite a difficult global trade environment, Embraer appears to have weathered the storm with little interruption, setting itself up for a steady 2025 forecast.

Delivery forecast remains unchanged

Embraer reiterated its full-year forecast of delivering between 77 and 85 commercial jets.

For its executive aviation division, it sees deliveries in the range of 145 to 155 jets.

These ranges provide no deviation from previous guidance, which would imply that demand remains firm across both segments.

Aircraft manufacturers usually see a slower first quarter, however, Embraer just delivered 30 jets between January and March, seemingly well on track for its full-year targets.

It also kept its full-year revenue outlook intact, which calls for a range of $7.0 billion to $7.5 billion in revenue for all of 2025.

Growing revenue and core earnings

Embraer’s net revenues in the first quarter were $1.1 billion, a 23% increase year-over-year.

This is the company’s best Q1 performance since 2016.

Profitability-wise, adjusted EBITDA more than doubled to $108.6 million.

The rise in core earnings highlights a strong financial performance and operational efficiencies for the company.

The financial figures indicate that the business is capitalising on increased demand, consistent production cadence, and a diverse product line.

Operational adjustments to trade challenges

Embraer’s executive aviation business was hurt by tariffs in the first quarter, prompting the company to make necessary changes.

Adjustments have been taken to limit exposure to ongoing trade concerns, particularly with the United States.

The company’s safeguards appear to have paid off, cushioning its performance against broader economic and geopolitical challenges.

Like many companies around the world, Embraer has had to adjust its operations, but the firm has been nimble enough to remain on course with its strategic goals.

The additional burden of continued global uncertainty in trade and supply chains does not seem to have undermined one iota of Embraer’s degree of resilience and preparedness, evidenced by its Q1 results, which also left guidance unaltered.

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