MEF BUSINESS NEWS 24 APR 2025 Facing pressure from markets, executives, and advisers, Donald Trump has softened his stance on Fed Chair Jerome Powell and China tariffs. He said he has no plans to fire Powell and hinted at easing tariffs on Chinese goods. This pivot followed warnings from retail giants and financial leaders about the economic fallout of high import duties. Though a formal deal with Beijing isn’t underway, Trump now says negotiations are active, tariffs might be gradually reduced, and the U.S. won’t act unilaterally. ————————————— The Trump administration may cut tariffs on Chinese imports by over 50% to ease trade tensions, the Wall Street Journal reports citing people familiar with the matter. A tiered system is being considered—35% for non-strategic goods, 100%+ for strategic ones. Trump hasn’t decided yet and wants movement from Beijing first, according to the Journal. China says it’s open to talks but won’t negotiate under threats. ————————————— The S&P 500 posted back-to-back gains this week, but investors aren’t celebrating. Instead, the rally highlighted the whiplash traders face as markets react to President Trump’s unpredictable policy shifts. Optimism quickly faded as Treasury Secretary Scott Bessent dialed back expectations, saying that negotiating trade deals could take years. With professionals pulling back and retail traders still buying in, Wall Street’s mood remains anxious. Markets are now driven more by Trump’s tweets than traditional indicators. Volatility is here to stay. —————————————- European Central Bank President Christine Lagarde voiced strong support for Jerome Powell, saying the Fed chair is doing exactly what’s needed to serve the American people and maintain financial and price stability. Her remarks, made at a Washington event, pushed back against US President Trump’s repeated criticisms of Powell. Lagarde emphasized the dangers of political interference in central banks, noting it often leads to lower growth and higher inflation. —————————————- Boeing CEO Kelly Ortberg warned that the company may stop making jets for China if airlines refuse deliveries due to high tariffs. Despite better-than-expected financial results, Boeing faces challenges from tariffs impacting its supply chain, though it expects refunds for some duties. Ortberg reassured that rejected planes would find new buyers. —————————————— Hyundai Motor’s profit remained steady despite challenges like sluggish EV demand and global trade tensions. The company reported a 0.2% year-on-year increase in Q1 net profit to $2.37 billion, surpassing forecasts, while revenue rose 9.2%. However, global vehicle sales dropped 0.6%, and Hyundai expects tough business conditions to persist due to ongoing trade issues. —————————————— Kering’s Q1 sales dropped 14%, mainly due to a 25% slump in Gucci’s sales. The brand, facing ongoing declines, is attempting a turnaround under new creative director Demna Gvasalia. Analysts expect it could take over a year to recover, amid softening luxury demand and ongoing trade tensions. Kering’s shares have fallen 45% in the past year. —————————————- CEO pay at UK-based companies is rising faster than in the US, with median compensation among FTSE 100 firms increasing 11% to $6.5 million, compared to a 7.5% rise in the US. That’s based on data from ISS-Corporate, a division of proxy adviser Institutional Shareholder Services. British firms are ramping up stock-based bonuses to stay competitive. Companies like GSK and British American Tobacco are leading the charge with proposed multi-million dollar payouts. —— —— MEF MOBILE NEWS 24 APR 2025 A leap toward hacker-proof messaging: Toshiba has successfully sent quantum-encrypted messages across a 250-kilometer commercial telecoms network in Germany. The breakthrough—using off-the-shelf fibre and no cryogenic gear—makes quantum security practical for real-world use. What’s the mobile angle? This tech could soon underpin ultra-secure communication for mobile apps and services, especially as data-rich platforms like banking and health go mobile-first. Toshiba’s Robert Woodward says it’s a crucial step toward national-scale, quantum-secure networks—and that means safer smartphones down the line. ———————————- A cybersecurity alert from Verizon. The company’s researchers say breaches from third-party suppliers doubled to 30% of cases, urging tighter controls and credential management. Ransomware now appears in 44% of attacks, with a median payout of $115K. In Europe, Middle East and Africa, nearly a third of breaches stemmed from internal issues, including user error and data misuse. ———————————- U.S. lawmakers have subpoenaed China’s top telecom giants—China Mobile, China Telecom, and China Unicom—over national security concerns. A bipartisan House committee is probing whether the companies, despite FCC bans, are still quietly operating U.S. cloud and internet services that could expose American data. The move follows cyberattacks like Volt Typhoon, which officials link to China. Lawmakers want answers by May 7. Beijing denies wrongdoing. ———————————- The European Union has fined Apple and Meta for breaching the Digital Markets Act, a key regulation aimed at ensuring fair competition in the tech industry. Apple faces a €500 million fine for its App Store practices, while Meta was fined €200 million for forcing users into agreeing to personalized ads on Facebook and Instagram. Both companies are ordered to comply with new rules or face higher penalties. The fines come amid growing tensions between the EU and the U.S., with President Trump criticizing the bloc’s tech regulations. Both Apple and Meta plan to appeal the decisions. ———————————————— Google’s Chrome web browser could be worth as much as $50 billion, according to DuckDuckGo CEO Gabriel Weinberg. Testifying in the Justice Department’s antitrust case against Google, Weinberg said this estimate is based on Chrome’s massive user base. While the high price tag might deter potential buyers, AI companies like OpenAI have expressed interest in acquiring Chrome if the court orders its sale. The case could significantly impact the digital ecosystem, particularly in web browsing and search. ———————————————- Meta’s oversight board has slammed the company for rushing through content moderation changes, warning they lacked proper human rights consideration. The board pointed to Meta’s removal of fact-checkers and reduced censorship as harmful, especially in light of posts inciting violence during UK riots last summer. Despite Meta’s promises to act, critics argue the company was too slow to address dangerous content, putting communities at risk. As global tensions rise, experts say Meta must urgently refine its crisis response to protect users from hate and violence on its platforms. ———————————————— Nokia says hitting the high end of its 2025 profit forecast is becoming harder due to new U.S. tariffs, which may cost up to €30 million in Q2. The company hasn’t predicted second-half effects yet due to uncertainty. Despite this, new CEO Justin Hotard — fresh from Intel — is sticking with the full-year operating profit outlook of €1.9 to €2.4 billion. Like rival Ericsson, Nokia’s been hit by a sluggish 5G market but is now branching into defense and AI. It recently absorbed U.S. data tech firm Infinera into its earnings. ———————————- AT&T and Verizon are passing along the cost of potential tariff hikes on mobile phones to their customers. AT&T CEO John Stankey confirmed that the company will shift the cost to the end user, while Verizon CEO Hans Vestberg stated that any price increase “will hit the consumer in the market.” As the impact of new tariffs looms, both companies are offering incentives like price guarantees and free phones with trade-ins to soften the blow. The move could drive early device upgrades as consumers navigate an increasingly uncertain mobile ecosystem. ———————————- Rakuten Mobile and AST SpaceMobile made Japan’s first satellite video call using regular smartphones. A signal was sent from Fukushima to Tokyo through a satellite, without special equipment. The test supports Rakuten’s plan to launch a satellite service in late 2026 to reach remote and disaster-hit areas. Rakuten has worked with AST since 2020 and follows other global operators in testing this tech. Rival KDDI is planning a similar service with Starlink, expected to start in early 2025. ———————————- Lyft is pulling taxis into the app-based ridehail game. Starting May 5 in St. Louis, some U.S. riders will be matched with licensed cabs if they offer a faster pickup—seamlessly paid for, tipped, and rated within the Lyft app. It’s the first time Lyft integrates taxis into its digital platform, a clear play to close the mobility gap with Uber. As Lyft expands its reach—including the acquisition of European app Freenow—it’s doubling down on app-based mobility, further blurring the line between traditional taxis and the mobile-driven ridehail ecosystem. —— —— MEF TECH NEWS 24 APR 2025 SK Hynix warned of possible turbulence later in 2025 due to U.S. tariffs, even as it reported a 158% jump in quarterly profits driven by demand for memory chips used in artificial intelligence. The company said stockpiling ahead of trade restrictions helped boost sales but noted future demand may weaken if tariffs hit global tech spending. Despite uncertainty, SK Hynix maintained its outlook for strong growth in high-bandwidth memory, which powers Nvidia’s chips used in data centers. The company overtook Samsung as the top DRAM vendor and is expanding factories to keep its lead. It also said U.S. clients make up about 60% of revenue, though direct exports to the U.S. remain limited. ————————————————— Texas Instruments expects Q2 revenue of $4.17B-$4.53B, beating estimates. Q1 revenue rose 11% to $4.07B, driven by stronger demand in industrial and automotive sectors. The company is shifting production to reduce tariff impacts and forecasts Q2 profit of $1.21-$1.47 per share. Despite tariff risks, TI remains optimistic about a market recovery. —————————————————- STMicroelectronics reported Q1 earnings in line with expectations, calling it the “bottom point” of the year. The European chipmaker forecasts Q2 revenue of $2.71 billion, above analyst estimates. Despite a 99.5% drop in Q1 operating income due to a slump in the automotive and industrial markets, STMicro expects a recovery starting in H2 2025. The outlook does not include potential impacts from changes to global trade tariffs. ————————————————— IBM’s Q1 sales rose 1% to $14.5 billion, with earnings of $1.60 per share, exceeding expectations. However, the company cautioned about economic uncertainty and U.S. government cost cuts affecting business. While maintaining its 2025 outlook, IBM is cautious about its consulting unit due to tariff issues and government actions. Shares dropped 6% after the earnings report. ————————————— ServiceNow’s shares surged 11% after the company posted strong results, signaling continued demand for software despite economic concerns. The company projected $3.03 billion in subscription revenue for the upcoming quarter and $12.7 billion for the year, both exceeding analysts’ estimates. With a 19% increase in first-quarter subscription revenue and a 22% rise in its remaining performance obligation, ServiceNow continues to show resilience. The company is also integrating generative AI into its products, focusing on AI agents to automate tasks, ensuring its position in a fast-evolving mobile and software ecosystem. ——

MEF BUSINESS NEWS 24 APR 2025 Facing pressure from markets, executives, and advisers, Donald Trump has softened his stance on Fed Chair Jerome Powell and China tariffs. He said he has no plans to fire Powell and hinted at easing tariffs on Chinese goods. This pivot followed warnings from retail giants and financial leaders about the economic fallout of high import duties. Though a formal deal with Beijing isn’t underway, Trump now says negotiations are active, tariffs might be gradually reduced, and the U.S. won’t act unilaterally. ————————————— The Trump administration may cut tariffs on Chinese imports by over 50% to ease trade tensions, the Wall Street Journal reports citing people familiar with the matter. A tiered system is being considered—35% for non-strategic goods, 100%+ for strategic ones. Trump hasn’t decided yet and wants movement from Beijing first, according to the Journal. China says it’s open to talks but won’t negotiate under threats. ————————————— The S&P 500 posted back-to-back gains this week, but investors aren’t celebrating. Instead, the rally highlighted the whiplash traders face as markets react to President Trump’s unpredictable policy shifts. Optimism quickly faded as Treasury Secretary Scott Bessent dialed back expectations, saying that negotiating trade deals could take years. With professionals pulling back and retail traders still buying in, Wall Street’s mood remains anxious. Markets are now driven more by Trump’s tweets than traditional indicators. Volatility is here to stay. —————————————- European Central Bank President Christine Lagarde voiced strong support for Jerome Powell, saying the Fed chair is doing exactly what’s needed to serve the American people and maintain financial and price stability. Her remarks, made at a Washington event, pushed back against US President Trump’s repeated criticisms of Powell. Lagarde emphasized the dangers of political interference in central banks, noting it often leads to lower growth and higher inflation. —————————————- Boeing CEO Kelly Ortberg warned that the company may stop making jets for China if airlines refuse deliveries due to high tariffs. Despite better-than-expected financial results, Boeing faces challenges from tariffs impacting its supply chain, though it expects refunds for some duties. Ortberg reassured that rejected planes would find new buyers. —————————————— Hyundai Motor’s profit remained steady despite challenges like sluggish EV demand and global trade tensions. The company reported a 0.2% year-on-year increase in Q1 net profit to $2.37 billion, surpassing forecasts, while revenue rose 9.2%. However, global vehicle sales dropped 0.6%, and Hyundai expects tough business conditions to persist due to ongoing trade issues. —————————————— Kering’s Q1 sales dropped 14%, mainly due to a 25% slump in Gucci’s sales. The brand, facing ongoing declines, is attempting a turnaround under new creative director Demna Gvasalia. Analysts expect it could take over a year to recover, amid softening luxury demand and ongoing trade tensions. Kering’s shares have fallen 45% in the past year. —————————————- CEO pay at UK-based companies is rising faster than in the US, with median compensation among FTSE 100 firms increasing 11% to $6.5 million, compared to a 7.5% rise in the US. That’s based on data from ISS-Corporate, a division of proxy adviser Institutional Shareholder Services. British firms are ramping up stock-based bonuses to stay competitive. Companies like GSK and British American Tobacco are leading the charge with proposed multi-million dollar payouts. —— —— MEF MOBILE NEWS 24 APR 2025 A leap toward hacker-proof messaging: Toshiba has successfully sent quantum-encrypted messages across a 250-kilometer commercial telecoms network in Germany. The breakthrough—using off-the-shelf fibre and no cryogenic gear—makes quantum security practical for real-world use. What’s the mobile angle? This tech could soon underpin ultra-secure communication for mobile apps and services, especially as data-rich platforms like banking and health go mobile-first. Toshiba’s Robert Woodward says it’s a crucial step toward national-scale, quantum-secure networks—and that means safer smartphones down the line. ———————————- A cybersecurity alert from Verizon. The company’s researchers say breaches from third-party suppliers doubled to 30% of cases, urging tighter controls and credential management. Ransomware now appears in 44% of attacks, with a median payout of $115K. In Europe, Middle East and Africa, nearly a third of breaches stemmed from internal issues, including user error and data misuse. ———————————- U.S. lawmakers have subpoenaed China’s top telecom giants—China Mobile, China Telecom, and China Unicom—over national security concerns. A bipartisan House committee is probing whether the companies, despite FCC bans, are still quietly operating U.S. cloud and internet services that could expose American data. The move follows cyberattacks like Volt Typhoon, which officials link to China. Lawmakers want answers by May 7. Beijing denies wrongdoing. ———————————- The European Union has fined Apple and Meta for breaching the Digital Markets Act, a key regulation aimed at ensuring fair competition in the tech industry. Apple faces a €500 million fine for its App Store practices, while Meta was fined €200 million for forcing users into agreeing to personalized ads on Facebook and Instagram. Both companies are ordered to comply with new rules or face higher penalties. The fines come amid growing tensions between the EU and the U.S., with President Trump criticizing the bloc’s tech regulations. Both Apple and Meta plan to appeal the decisions. ———————————————— Google’s Chrome web browser could be worth as much as $50 billion, according to DuckDuckGo CEO Gabriel Weinberg. Testifying in the Justice Department’s antitrust case against Google, Weinberg said this estimate is based on Chrome’s massive user base. While the high price tag might deter potential buyers, AI companies like OpenAI have expressed interest in acquiring Chrome if the court orders its sale. The case could significantly impact the digital ecosystem, particularly in web browsing and search. ———————————————- Meta’s oversight board has slammed the company for rushing through content moderation changes, warning they lacked proper human rights consideration. The board pointed to Meta’s removal of fact-checkers and reduced censorship as harmful, especially in light of posts inciting violence during UK riots last summer. Despite Meta’s promises to act, critics argue the company was too slow to address dangerous content, putting communities at risk. As global tensions rise, experts say Meta must urgently refine its crisis response to protect users from hate and violence on its platforms. ———————————————— Nokia says hitting the high end of its 2025 profit forecast is becoming harder due to new U.S. tariffs, which may cost up to €30 million in Q2. The company hasn’t predicted second-half effects yet due to uncertainty. Despite this, new CEO Justin Hotard — fresh from Intel — is sticking with the full-year operating profit outlook of €1.9 to €2.4 billion. Like rival Ericsson, Nokia’s been hit by a sluggish 5G market but is now branching into defense and AI. It recently absorbed U.S. data tech firm Infinera into its earnings. ———————————- AT&T and Verizon are passing along the cost of potential tariff hikes on mobile phones to their customers. AT&T CEO John Stankey confirmed that the company will shift the cost to the end user, while Verizon CEO Hans Vestberg stated that any price increase “will hit the consumer in the market.” As the impact of new tariffs looms, both companies are offering incentives like price guarantees and free phones with trade-ins to soften the blow. The move could drive early device upgrades as consumers navigate an increasingly uncertain mobile ecosystem. ———————————- Rakuten Mobile and AST SpaceMobile made Japan’s first satellite video call using regular smartphones. A signal was sent from Fukushima to Tokyo through a satellite, without special equipment. The test supports Rakuten’s plan to launch a satellite service in late 2026 to reach remote and disaster-hit areas. Rakuten has worked with AST since 2020 and follows other global operators in testing this tech. Rival KDDI is planning a similar service with Starlink, expected to start in early 2025. ———————————- Lyft is pulling taxis into the app-based ridehail game. Starting May 5 in St. Louis, some U.S. riders will be matched with licensed cabs if they offer a faster pickup—seamlessly paid for, tipped, and rated within the Lyft app. It’s the first time Lyft integrates taxis into its digital platform, a clear play to close the mobility gap with Uber. As Lyft expands its reach—including the acquisition of European app Freenow—it’s doubling down on app-based mobility, further blurring the line between traditional taxis and the mobile-driven ridehail ecosystem. —— —— MEF TECH NEWS 24 APR 2025 SK Hynix warned of possible turbulence later in 2025 due to U.S. tariffs, even as it reported a 158% jump in quarterly profits driven by demand for memory chips used in artificial intelligence. The company said stockpiling ahead of trade restrictions helped boost sales but noted future demand may weaken if tariffs hit global tech spending. Despite uncertainty, SK Hynix maintained its outlook for strong growth in high-bandwidth memory, which powers Nvidia’s chips used in data centers. The company overtook Samsung as the top DRAM vendor and is expanding factories to keep its lead. It also said U.S. clients make up about 60% of revenue, though direct exports to the U.S. remain limited. ————————————————— Texas Instruments expects Q2 revenue of $4.17B-$4.53B, beating estimates. Q1 revenue rose 11% to $4.07B, driven by stronger demand in industrial and automotive sectors. The company is shifting production to reduce tariff impacts and forecasts Q2 profit of $1.21-$1.47 per share. Despite tariff risks, TI remains optimistic about a market recovery. —————————————————- STMicroelectronics reported Q1 earnings in line with expectations, calling it the “bottom point” of the year. The European chipmaker forecasts Q2 revenue of $2.71 billion, above analyst estimates. Despite a 99.5% drop in Q1 operating income due to a slump in the automotive and industrial markets, STMicro expects a recovery starting in H2 2025. The outlook does not include potential impacts from changes to global trade tariffs. ————————————————— IBM’s Q1 sales rose 1% to $14.5 billion, with earnings of $1.60 per share, exceeding expectations. However, the company cautioned about economic uncertainty and U.S. government cost cuts affecting business. While maintaining its 2025 outlook, IBM is cautious about its consulting unit due to tariff issues and government actions. Shares dropped 6% after the earnings report. ————————————— ServiceNow’s shares surged 11% after the company posted strong results, signaling continued demand for software despite economic concerns. The company projected $3.03 billion in subscription revenue for the upcoming quarter and $12.7 billion for the year, both exceeding analysts’ estimates. With a 19% increase in first-quarter subscription revenue and a 22% rise in its remaining performance obligation, ServiceNow continues to show resilience. The company is also integrating generative AI into its products, focusing on AI agents to automate tasks, ensuring its position in a fast-evolving mobile and software ecosystem. ——