Acquisitions Galore as Markets and Crypto Evolve

Hope you're having a great Sunday! ☕📈 

Here’s your weekly market recap, bringing you the biggest updates in stocks, crypto, and the economy—quick, clear, and to the point.

Stock Market

Stocks Headlines

$BYDDF ( ▲ 1.07% ) : BYD introduced a new ultra-fast charging system capable of adding 470 km (292 miles) of range in just 5 minutes using a 1,000-volt, 1,000-kW charging platform. The technology will debut in the Han L sedan and Tang L SUV. BYD plans to build 4,000+ ultra-fast charging stations in China. This innovation challenges Tesla’s Superchargers and could accelerate EV adoption globally.

$PEP ( ▼ 1.43% ) : PepsiCo has acquired prebiotic soda brand Poppi for $1.95 billion, with a net cost of $1.65 billion after tax benefits. Poppi, founded in 2015, sells low-calorie sodas with prebiotics and apple cider vinegar. The acquisition strengthens PepsiCo’s position in the $50+ billion functional beverage market. The deal includes earnout payments based on performance. PepsiCo’s stock rose ~2% following the announcement.

$GOOG ( ▲ 1.47% ) : Google has confirmed its acquisition of cloud security firm Wiz for $32 billion, marking its largest acquisition ever. Wiz will be integrated into Google’s multicloud offering, ensuring it remains available across various cloud platforms. The deal follows an earlier offer from Google of $23 billion for Wiz, which was rejected. The acquisition positions Google to expand its reach in the growing cloud security market.

$WMT ( ▼ 0.78% ) : Klarna has secured an exclusive deal to provide Buy Now, Pay Later (BNPL) services via OnePay, Walmart's fintech platform. The partnership will allow US customers to access flexible payment plans of 3-36 months for purchases both online and in-store. By end-2025, Klarna will replace Affirm as Walmart’s sole BNPL provider. This agreement comes ahead of Klarna's US IPO filing with the SEC

Spotlight

Robinhood has launched a prediction markets feature, allowing users to bet on outcomes of events like political races and economic trends. The move expands its footprint in the betting space, complementing its existing trading services.

Crypto

Crypto Radar

Kraken has introduced a colocation service in partnership with Beeks Exchange Cloud, offering ultra-low-latency trading for both institutional and individual clients. The service, launching later this year, will provide access to sub-millisecond latency from Kraken’s European data center. Clients can either rent cloud compute or install physical hardware. This initiative enhances Kraken’s infrastructure, improving price discovery and liquidity, and ensures fair market access for all traders.

Switzerland’s financial regulator FINMA has approved a blockchain-based trading system by BX Digital, a subsidiary of the Stuttgart Stock Exchange. The system uses Ethereum-based blockchain to enable direct settlement of tokenized assets like shares and bonds, eliminating intermediaries. This development aims to create a decentralized infrastructure for the European capital market. BX Digital is targeting a launch within six months, with a direct link to the Swiss National Bank's payment system.

The SEC is reassessing its approach to cryptocurrency regulations as lawmakers push for clearer rules. The commission recently withdrew a four-year lawsuit against Ripple Labs, causing XRP's price to surge by 8%. The SEC has formed a Crypto Task Force to evaluate potential frameworks for digital assets. Lawmakers are debating the SEC's role, with a focus on balancing investor protection and market innovation. The ongoing review may reshape the regulatory landscape for the crypto market.

Economy

Economic News

The Federal Reserve has kept its policy interest rate in the 4.25%-4.50% range while forecasting two rate cuts later in 2025 due to slower growth and higher inflation. Economic growth is projected at 1.7% for 2025, while inflation is expected to reach 2.7%. The Fed's outlook is influenced by tariff policies and the uncertainty from the Trump administration's trade measures. Despite these projections, labor market data remains strong, with the unemployment rate at 4.1%.

Germany's Bundestag voted to increase defence and infrastructure spending, exempting it from the country's strict debt rules. The €500bn fund will improve infrastructure and support climate change measures. This historic vote, supported by Friedrich Merz, is seen as crucial for European defense amid Russia's invasion of Ukraine. The proposal also includes €3bn in aid to Ukraine. While the measure passed with a 513-207 vote, it still needs approval from the Bundesrat.

U.S. Senator Steve Daines met China’s Vice Premier He Lifeng in Beijing, marking the first visit by a U.S. politician since President Trump returned to office. The discussions focused on fentanyl control and the trade deficit. Daines emphasized the need for China to curb fentanyl flows into the U.S. and revise trade practices. He is set to meet Premier Li Qiang next. China expressed willingness for dialogue based on mutual respect, highlighting shared interests.

Disclaimer:
We are not financial advisors, and the information provided in this newsletter is for educational purposes only. Always conduct your own due diligence and consider what makes sense for your individual financial situation. Investing involves risks, and there is no guarantee of making money. In fact, you may lose money. We aim to provide you with the tools and insights to help you make informed decisions, but the ultimate responsibility lies with you.