PayPal taps wallets from China and India to make cross-border payments easier for 2 billion people

Key Points

• Tesla's core auto business, which drives the majority of its revenue and profit, is struggling with a projected Q2 revenue drop of 9% to $22.79 billion and a 13.5% decline in global vehicle deliveries year over year.
• Elon Musk's focus on robotaxis offers potential for future growth, with expanded testing in Austin, Texas, though Tesla lags behind competitors like Alphabet's Waymo and Uber in deployment.
• Investors are awaiting updates on a promised cheaper EV, with delays likely pushing the launch to Q4 2025, potentially disappointing Tesla bulls.
• Musk's political activities and a rocky relationship with President Trump, alongside tariffs and regional sales weaknesses, are dampening optimism for Tesla's stock, which is down 18% year to date.
• Analysts suggest weaker fundamentals and the need for capital to fund autonomous vehicle and AI initiatives could lead to a future share sale, a move unpopular with investors.

Summary

Tesla (TSLA) faces significant challenges as it approaches its Q2 2025 earnings report, with stock down 18% year to date amid a rocky relationship between CEO Elon Musk and President Trump, impacting late-2024 optimism. The core auto business, Tesla’s primary revenue source, is under pressure with expected Q2 revenue of $22.79 billion, a 9% drop, and a 13.5% decline in global deliveries. Regional weaknesses, competition, and consumer shifts to hybrids add to concerns. Meanwhile, Musk’s focus on robotaxis offers hope, with testing expanding in Austin, though Tesla trails competitors like Waymo and Uber. Investors are eager for updates on a cheaper EV, promised at around $30,000, but delays to Q4 2025 seem likely, potentially disappointing stakeholders. Additionally, tariffs on foreign cars, Musk’s political reputational hit, and the possibility of a future share sale to fund autonomous vehicle and AI initiatives further cloud Tesla’s outlook. As the S&P 500 and Nasdaq hit new highs, Tesla’s earnings call will be critical for insights into its struggling auto segment, robotaxi plans, and new vehicle timelines.

Key Points

• South Korea's Financial Supervisory Service (FSS) has informally advised local asset managers to reduce exposure to crypto ETFs and U.S.-listed digital asset companies like Coinbase (COIN) and Michael Saylor's Strategy (MSTR).
• This guidance aligns with the FSS's 2017 policy, which prohibits regulated financial institutions from holding or investing in digital asset equities.
• The move appears to contradict earlier reports suggesting South Korea might ease crypto trading restrictions, indicating a reaffirmation of stricter guidelines.
• An FSS official emphasized that current regulations must be followed despite evolving regulatory landscapes in the U.S. and South Korea.

Summary

South Korea's Financial Supervisory Service (FSS) has reportedly issued informal warnings to local asset managers, urging them to limit exposure to cryptocurrency exchange-traded funds (ETFs) and U.S.-listed digital asset firms such as Coinbase (COIN) and Michael Saylor's Strategy (MSTR). According to the Korean Herald, this directive aligns with the FSS's 2017 policy, which bans regulated financial institutions from holding or purchasing equity in digital assets. This development seems to mark a shift from earlier indications that South Korea might relax crypto trading rules, instead reinforcing a cautious stance. An FSS official noted that despite changing regulatory environments in both the U.S. and South Korea, firms must adhere to existing guidelines. The FSS was unavailable for immediate comment on the matter. This move highlights South Korea's ongoing regulatory scrutiny of cryptocurrency investments, reflecting a broader tension between innovation in digital assets and the need for financial stability and compliance within traditional financial systems.

Key Points

• Treasury Secretary Scott Bessent opposes immediate resignation of Fed Chair Jerome Powell, suggesting Powell can serve until his term ends in May or leave early if he chooses.
• Bessent criticizes the Federal Reserve's $2.5 billion headquarters renovation and calls for a review of its non-monetary policy operations, citing mission creep.
• He advocates for deeper reforms in bank regulations, particularly scrapping outdated capital requirements and a flawed dual capital structure proposed previously.
• Bessent supports the Fed’s independence in monetary policy but aligns with White House efforts to exert greater control over the Fed’s non-monetary operations, including bank supervision.
• As a potential candidate to replace Powell, Bessent is pushing for a broad reexamination of financial regulations to ease lending and boost the US economy.

Summary

Treasury Secretary Scott Bessent has taken a critical stance on the Federal Reserve, targeting its non-monetary operations and regulatory framework while stopping short of demanding Fed Chair Jerome Powell’s immediate resignation. Despite President Trump’s calls for Powell to step down, Bessent stated on Fox Business that Powell could serve until his term ends in May. However, Bessent intensified pressure on the Fed by questioning its $2.5 billion headquarters renovation and urging a review of its broader operations, arguing they jeopardize its monetary policy independence. At a Fed conference, he pushed for significant reforms in bank regulations, criticizing outdated capital requirements and a proposed dual capital structure. Bessent, a potential successor to Powell, supports the Fed’s autonomy in monetary policy but aligns with White House efforts to control other Fed functions, like bank supervision. Additionally, he aims to overhaul financial regulations to facilitate lending and stimulate economic growth, with the Treasury playing a central role in driving consensus and action. Recent proposals to rollback bank capital rules, such as the enhanced supplementary leverage ratio, signal further regulatory changes ahead, though their impact on banks may be limited. Bessent’s actions reflect a broader push for innovation and financial stability under the current administration.