Day: February 4, 2025

Nasdaq Higher, Palantir Stock Leads With 24% Gains As Zelenski Prepares for Peace

Posted on by Skerdian Meta

Today US stock markets were bullish, with Palantir Technologies jumping 24%, while Nasdaq led the way for indices, with again of 1.4%.

Palantir opened with a major bullish gap

Continue reading “Nasdaq Higher, Palantir Stock Leads With 24% Gains As Zelenski Prepares for Peace” →

Gold Continues to Break Records as Investors Seek Safe Haven

Posted on by Ignacio Teson

Gold has regained its safe-haven status following Donald Trump’s presidency and amid continued monetary easing by central banks.

On Tuesday, gold prices hit a new all-time high, surpassing $2,870 per ounce, driven by global uncertainty after Trump’s threats to impose tariffs on major trading partners. The metal climbed to $2,871.66 per ounce, up 0.5%, while spot gold advanced 1% to $2,841.63 per ounce.

[[XAU/USD-graph]]

Trade Tensions Fuel Market Volatility

In recent days, Trump announced new tariffs on imports from Canada, Mexico, and China. However, he later delayed implementation for Canada and Mexico after their governments pledged to deploy 10,000 troops along the border.

Despite this temporary reprieve, Trump maintained tariffs on China, which took effect Tuesday. In response, Beijing announced tariff increases to 15% and 10% on certain U.S. goods, imposed new export controls on key minerals, and launched an antitrust investigation into Google.

Gold’s Role Amid Trade War Uncertainty

Although the tariff pause for Mexico and Canada eased immediate tensions, global markets remain concerned about the risk of escalating trade wars, which could drive up prices while weakening economic growth. These uncertainties continue to push investors toward gold, reinforcing its role as a hedge against volatility.

Three Federal Reserve officials cautioned on Monday that Trump’s trade tariffs pose inflation risks, with one arguing that uncertainty over price trends calls for a slower pace of interest rate cuts than under normal conditions.

Gold is traditionally viewed as a hedge against both inflation and geopolitical uncertainty. However, higher interest rates diminish its appeal, as bullion does not generate interest income.

Brazil’s Central Bank Warns of Inflation Risks

Posted on by Ignacio Teson

The Brazilian government expects economic growth to reach around 3.5% in 2024, but the Central Bank of Brazil has noted the first signs of moderation in recent data.

On Tuesday, the central bank emphasized that slowing economic activity is crucial to bringing inflation back to target. It highlighted inflation expectations becoming unanchored and an overheating economy as very relevant risks to price stability.

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“The slowdown in aggregate demand is an essential element in restoring balance between supply and demand in the economy and ensuring inflation converges to the 3% target,” the bank stated in the minutes of its latest monetary policy decision.

After raising interest rates by 100 basis points last week to 13.25%, and signaling another hike in March, policymakers also noted that market perceptions regarding the government’s fiscal framework and debt sustainability continue to weigh significantly on asset prices and inflation expectations.

Outlook and Market Reactions

Looking ahead, the central bank stated that it will closely monitor economic activity, the exchange rate transmission following recent currency depreciation and volatility, and inflation expectations, which have further deteriorated and remain a key factor in determining future inflation trends.

Morgan Stanley’s Perspective

Morgan Stanley noted that Brazil’s central bank (BCB) raised its benchmark interest rate by 100 basis points to 13.25% and maintained its projection for another hike in March, with the possibility of additional adjustments in May. The bank highlighted that monetary policy remains restrictive due to ongoing concerns over inflation expectations.

On the political front, Morgan Stanley pointed out that Congress is expected to resume activities in early February, with a strong focus on budget discussions and tax reform.

PayPal declare $15 billion Share Buyback Program

Posted on by Olumide Adesina

PayPal released guidance that exceeded analysts’ expectations and revealed better-than-expected fourth-quarter results.

Although adjusted net income dropped 1 percent to $1.21 billion, PayPal anticipates adjusted earnings per share for the first quarter of $1.15 to $1.17, which is higher than the average analyst estimate of $1.13.  Additionally, PayPal announced a new $15 billion share buyback program, with an estimated $6 billion in repurchases anticipated in 2025.

The revenue grew by roughly 4% during the quarter compared to $8.03 billion in the same period last year.

The fourth quarter’s total payment volume, which measures how well digital payments are performing in the overall economy, came in at $437.8 billion, slightly less than the $438.2 billion analysts had predicted.

PayPal’s unbranded payment volume, or the transactions it processes for third-party companies instead of using its platform, dropped to 2 percent from 29 percent in the fourth quarter as the company continues to follow a price-to-value strategy.

Chief Financial Officer Jamie Miller stated that the company anticipates “similar dynamics the next few quarters” and that renegotiations with current customers will be a “five-point revenue growth headwind” over 2025.

Alex Chriss, the CEO of PayPal, joined the company in September 2023 and is working to boost growth.

The company had been in a deep slump because of a decline in take rate, the percentage of revenue PayPal keeps from each transaction, and increased competition.

Prioritizing profitable expansion and increasing the revenue from significant acquisitions like Braintree and the payments app Venmo have been Chriss’ main priorities.

The CEO of PayPal stated that the company had made strategic investments in automation and artificial intelligence, which he called “critical” for the future, and that it had cut headcount by 10% in 2024.

 

Spotify Music Posts First Annual Profit, Stocks Rally

Posted on by Olumide Adesina

Spotify announced its first full year of profitability on Tuesday, with a net income of 1.14 billion euros after the fiscal year. 

This resulted in a double-digit gain in the stock price on Tuesday. The gross profit of the Luxembourg-based company rose 40% year over year and 10% over the prior quarter. Operating income was somewhat below expectations at 477 million euros.

The music streaming service stated it paid a record $10 billion in royalties to the music industry in 2024, after the announcement in January of the streamer’s new multi-year publishing agreement with Universal Music Group.

The deal will involve additional paid subscription tiers,  music bundles and non-music content, and direct licensing between the two companies for Spotify in the US and several other countries.

Year-over-year growth was facilitated by the annual December listening analysis, which made Spotify Wrapped one of the year’s biggest drivers of user engagement.

The net growth of MAUs of 35 million was a fourth-quarter record.

MAUs were up 12% for the year and 5% from the previous quarter. Spotify’s fourth-quarter net income of 367 million euros an improvement over the past quarter, was significantly higher than the company’s net loss of 70 million euros, or 36 cents per share, from the same quarter last year. Revenue for the fourth quarter was 4.24 billion euros, significantly more than the 3.67 billion euros earned in the same quarter in 2023.

Japanese Banks Strengthen alliance with Ripple’s XRP Technology

Posted on by Olumide Adesina

SBI Shinsei Bank and SBI Remit, a leading user of the XRP Ledger, announced a new customer referral partnership to enhance services for international money transfers.

The CEO and president of SBI Holdings, Yoshitaka Kitao, drew attention to this most recent partnership.

The collaboration between these two well-known organizations in Japan’s financial sector will improve remittances’ speed and affordability for their clients. Its main goal is to give people and companies wishing to send money overseas a smooth transfer experience.

SBI Remit, a division of SBI Japan, has been a top supplier of international remittance services. It has established a solid reputation for streamlining its services with cutting-edge financial technologies.

The business uses Ripple’s distributed ledger technology, which uses XRP to guarantee quick and affordable international payments. An essential component of SBI Remit’s operations has been this technology.

It has enabled it to maintain its leadership position in remittance services by providing safe and effective money transfers.

SBI Remit introduced an international remittance service based on XRP targeting bank accounts in Vietnam, the Philippines, and Indonesia. Notably, the action was taken in collaboration with SBI Ripple Asia and Ripple. It used XRP as a bridge currency to lower remittance costs and increase scalability.

This service made cross-border payments quicker and less expensive, which benefited areas with significant remittance inflows. Plans to extend the service to additional nations and incorporate corporate and inbound transactions were revealed at the time

Why Overlooked Memecoin Pepe Is Bullish Again

Posted on by Timothy St. John

Pepe (PEPE) is in the top 30 cryptocurrency coins and is up by more than 12% today as it recovers from a recent drop. This could be a good opportunity for new investors to step in.

The memecoin Pepe is bullish
Bullish activity from Pepe is exciting investors.

Recent news about the Pepe coin climbing quickly has brought some attention to the memecoin. It is not as well known as Dogecoin (DOGE) or Shiba Inu (SHIB), but it is climbing faster than either of those coins today with a 12.25% increase.

Over the last week, PEPE has not done so well, losing 19.33%, but it is making much of that up in a short period of time as Tuesday trading heats up. Trade volume is down by 45%, but nearly $1.7 billion has still come in over the last 24 hours. Obviously, not everyone is overlooking this coin, but it does not get the same mainstream market penetration that its memecoin rivals do. That means that it could sneak up fast and under the radar if investors are not aware of what is going on.

What to Know about Pepe

This memecoin is powered by its loyal community, gaining as consumer interest increases. The more people talk about this coin on message boards and hype it up and then invest into it, the higher the coin goes. If consumer sentiment is low and there are fewer mentions of Pepe online, the coin will drop rapidly. The life cycle of a memecoin is often short, but Pepe has persevered to outlive many of its competitors and prove its market longevity.

This Ethereum-based coin stands out from other coins of its ilk by burning off some of its coin supply. This happens periodically and allows the coin to retain its high market value even when little trading is happening. What that means for Pepe’s future is that the coin could be created endlessly. Unlike some similar cryptocurrencies, Pepe is not mined, since it is a token.

Pepe’s current value is $0.00001056 (PEPE/USD), which has grown by 1,062% since this time last year. That speaks well of Pepe’s growth potential. With cryptocurrency likely to receive greater legitimacy and ease of use under the Donald Trump presidential administration, this token could take off in a big way in 2025. 

 

Stock Market Turmoil as Tariff Confusion Persists

Posted on by Timothy St. John

When Donald Trump announced a pause on tariffs for Canada and Mexico, the stock market responded by climbing, but China imposed new tariffs on the US.

Tariffs on Canada and Mexico have ben halted.
The US government issued tariffs on China but not on Canada and Mexico.

The stock market is down today after the United States and China imposed tariffs on one another. Even US president Donald Trump holding off on 25% tariffs on Canadian and Mexican goods was not enough to keep the markets from dipping.

Of course, there are far more goods imported from China to the US than those imported from Mexico and Canada. When the US issued its 10% tariff on Chinese goods, the Chinese government responded with tariffs of 10% on agricultural machinery and crude oil and 15% on liquefied natural gas and coal from the United States.

The stock market dropped as a result of this trade war, which is likely to continue until China accedes to the US government’s demands. Trump said the tariffs are designed to spur these governments to stop the flow of illegal immigrants into the US as well as drug and gun trades, with specific emphasis on fentanyl black market imports.

The Dow Jones dropped by 0.28% on Monday evening, followed by the Nasdaq Composite, which fell 1.20%. The S&P 500 likewise fell, losing 0.76%. Investors expect the trade war with China to continue for some time.

Tariffs Stopped for Mexico and Canada

Trump was going to impose traffic on Canada and Mexico but came to an agreement on Monday that put a 30-day delay on those tariffs. Canadian Prime Minister Justin Trudeau promised to implement measures to limit the flow of illegal immigrants, guns, and illegal drugs into the US by securing its border better.

Mexico agreed to similar steps, with President Claudia Sheinbaum saying she would put stronger security at the Mexican/American border to prevent illegal imports from passing through.

Trump’s strong stance on border control is now directly affecting the stock market and will likely continue to do so. There is concern among investors that once the 30-day reprieve has come to an end, tariffs will be instituted against goods from both Mexico and Canada and Chinese that tariffs may continue as a trade ware develops.

With no interest rate cut in sight and tariffs causing the price of goods to increase, the stock market could be in for a rough February.