China is in advanced discussions to place a major order for Airbus SE aircraft, with a deal potentially timed to coincide with a high-level diplomatic visit from European leaders next month, Bloomberg reported citing people familiar with the matter.
Officials are deliberating an order ranging from 200 to as many as 500 aircraft, spanning both narrowbody and widebody models, including the A330neo, the report said.
The size of the final deal remains fluid, and sources caution that talks may still collapse or take longer to conclude.
Airbus declined to comment, while China’s aviation authority has not responded to media queries.
If the deal reaches 500 aircraft, it would rank among the largest jet orders in aviation history and mark China’s biggest to date.
For comparison, Air India placed a landmark order in 2023 for 470 jets from both Airbus and Boeing, while IndiGo followed with a record-breaking 500-plane narrowbody order with Airbus later that year.
Strategic timing for a geopolitical message
The proposed order is expected to be unveiled during a July visit to Beijing by French President Emmanuel Macron and German Chancellor Friedrich Merz.
The timing is symbolically significant: the leaders are marking 50 years of diplomatic relations between the European Union and China.
France and Germany are also the two biggest shareholders of Airbus.
Should the deal materialise, it would allow President Xi Jinping to send a calculated signal to Washington, where President Donald Trump is gearing up for another term and vowing to reset trade rules with China.
Airbus rival Boeing Co. has remained largely shut out of Chinese commercial aviation deals in recent years, despite being the largest US exporter.
Airbus gains from Boeing’s setbacks
Beijing’s preference for Airbus has deepened in the wake of ongoing US-China tensions and Boeing’s own troubles.
Chinese regulators halted deliveries of Boeing jets in April.
The rift dates back to the Trump administration’s first term and was exacerbated by the 737 Max crisis, when China became the first country to ground the aircraft following two fatal crashes.
Further damage was inflicted earlier this year when a door plug blew out mid-flight on a Boeing jet, triggering a renewed quality crisis and investigations.
Boeing has not secured a major commercial order from China since at least 2017, while Airbus has steadily gained ground.
In 2022, China placed an order for around 300 Airbus narrowbody jets worth an estimated $37 billion.
A boost for widebody demand
Insiders say widebody aircraft could feature prominently in the prospective order, especially as the backlog for twin-aisle planes among Chinese carriers continues to shrink.
The A330neo, Airbus’s smallest widebody, is said to be a likely candidate for the fleet refresh.
The deal would be routed through China’s state-run aircraft procurement body, which typically negotiates on behalf of domestic airlines.
If confirmed, the order would underscore China’s growing alignment with European aerospace interests, even as its relationship with the US remains fraught.
Russia’s economy has not collapsed under pressure. At least not yet. GDP still grows. Wages have risen.
Western sanctions failed to deliver the knockout blow many expected. But appearances are deceptive.
The structure that holds this war economy together is increasingly brittle, and signs are mounting that President Vladimir Putin is approaching a limit he cannot ignore.
Seven key developments over the past weeks have revealed a system in motion, but under strain.
Putin’s wartime model has kept Russia functioning through firepower, money, and narrative control.
But it’s now approaching the point where he may be forced to choose between financing the war and preserving internal calm.
That choice may define the next phase of this war more than any battlefield victory.
A war economy built on transfers, not productivity
The illusion of resilience is supported by massive spending. Defense now accounts for an estimated 40% of the state budget.
Other studies have shown that the country’s military expenditures were close to 7% of its GDP, a 40% increase year-over-year.
According to reports, Russian soldiers are paid bonuses worth up to 1.5 million rubles, and their families receive “coffin money” payouts of 12 to 15 million rubles if they are killed.
These transfers have fueled local booms in poor regions like Tuva, Buryatia, and Dagestan, where bank deposits rose by 151% and 81%, respectively.
Factories in the defense sector run 24 hours a day, and many former civilian firms were forced to retool into military production.
Bread factories now assemble drones. Shipyards make stoves. Some benefit from this reindustrialization.
Others, like Severstal PJSC, Russia’s steel giant, are posting negative cash flows of 33 billion rubles, despite being profitable a year earlier.
This system works only because the Kremlin is aggressively propping it up. But the cost is steep.
Oil and gas revenues are down, partly due to falling global prices and a stronger ruble, while inflation remains above 10%.
The budget deficit has tripled, and high interest rates (21%) imposed to stabilize inflation are choking private sector investment.
This model also hinges on financial stability, which is now being tested.
In late May, the Kremlin-linked Center for Macroeconomic Analysis and Short-Term Forecasting (CMASF) warned of a “systemic banking crisis” in the making.
It outlined three triggers: a depositor run, bad loans exceeding 10% of assets, or recapitalization needs greater than 2% of GDP. None have happened yet, but all are closer than before.
Liquidity is thinning. The money supply-to-monetary base ratio has surged, suggesting that banks are overleveraged.
Volatility on the MOEX stock index has spiked, tracking investor uncertainty.
Big corporates, including Gazprom, Norilsk Nickel, and Severstal, have canceled dividend payouts due to falling profits and rising borrowing costs.
Rosstat reported a 6.9% decline in corporate earnings in 2024, or 15% when adjusted for inflation.
The Bank of Russia’s 21% policy rate, originally meant to contain inflation, is now stifling lending, delaying projects, and choking growth outside the war economy.
Diplomacy remains frozen and that’s part of the strategy
Parallel to the economic tension is diplomatic paralysis. Two rounds of peace talks between Russia and Ukraine in Istanbul ended with almost no progress.
Russia’s latest demands were near-total: Ukraine must withdraw from all occupied regions, renounce NATO, limit its military, lift martial law, and hold elections within 100 days.
All sanctions must be dropped, and no reparations should be demanded.
Ukraine refused, calling the terms political fantasy. Western officials privately agree.
Even US President Donald Trump, who staked his second-term foreign policy on ending the war, called Putin “absolutely MAD” after Russia’s recent strikes on Ukrainian cities.
Senator Richard Blumenthal accused Russia of “mocking peace efforts” and warned the Kremlin was “playing America for fools.”
Yet Russia’s refusal to compromise is calculated. According to Dmitry Medvedev, now a senior security official, Moscow’s aim is not peace. It’s victory.
Diplomacy has become another front in the war, designed to exhaust Ukraine’s allies, pressure US mediators, and stall just long enough for battlefield progress.
Russia knows it’s playing with fire
Beneath the silence of the Russian public lies intense state monitoring. The Kremlin’s presidential administration remains the single largest consumer of polling data in the country.
Prime Minister Mishustin’s “coordination center” tracks discontent in real time, fusing AI, social media data, and regional reports into “satisfaction maps” updated daily.
This is not paranoia. It is survival instinct. Putin witnessed two regimes collapse around him and knows that even authoritarian systems can fall quickly if the public turns.
He is aware that the illusion of stability must be maintained, not just through force, but through income and services.
These programs are now being scaled back. Most subsidies are gone. Growth is slowing. Wages for new hires have stalled. The internal trade-off between war abroad and stability at home is becoming harder to afford.
What breaks first: the war machine or the social contract?
The story of Russia’s war economy is not just one of survival. It’s one of unsustainable compression. Everything has been tightened to its maximum setting. Finances, politics, military.
Real incomes are still higher than before the war, but the gains are slowing. Inflation remains high, and interest rates are suffocating real investment.
The Kremlin cannot keep writing large checks to soldiers’ families and regional governments forever.
On the battlefield, Ukraine is far from defeated. Its long-range drone attacks on strategic Russian bombers in Siberia and the Arctic show it has capabilities that can strike beyond the front lines.
These small victories reveal a resilience and technical depth that complicates Russia’s path to escalation.
Putin is not facing collapse. But he is facing choices. Keep spending on the war and risk economic collapse. Cut spending and risk public unrest. Attempt another mobilization and risk his grip on power.
Russia is prepared to fight for as long as it takes. Any real hope for peace now rests on external powers.
Bitcoin price has pulled back in the past few days as the recent rally takes a breather and the handle section of the cup-and-handle pattern forms. It pulled back from a high of $111,900 late last month to the current $105,600. This article provides a clear BTC price forecast as the US M2 money supply hits a record high.
US M2 money supply is surging
A potential catalyst for Bitcoin price is known as the M2 money supply. This is a key data that looks at all the cash in circulation, including in checking accounts. It also includes savings deposits, small-denomination time deposits, and money market funds.
The M2 money supply has been in a strong uptrend even as interest rates have remained high. This increase is mostly because of government spending, which has increased after the COVID-19 pandemic. At that time, the government boosted spending to secure the economy.
The M2 supply has also jumped because of the rising public debt, which has jumped to almost $37 trillion. This growth will continue if Congress passes Donald Trump’s Big Beautiful Bill, which is expected to add almost $5 trillion of debt in a decade.
The M2 supply soared after some of Biden’s priorities, including the CHIPS Act and the Inflation Reduction Act (IRA). CHIPS provided billions to incentivize semiconductor companies to build their plants to the US, while IRA provided funds to various clean energy projects.
The growth of the M2 has been moderated by the decision by the Federal Reserve to implement quantitative tightening (QT), which has reduced its balance sheet from almost $9 trillion in 2022 to $6.6 trillion today.
The US M2 has now surged to a record high of $21.8 trillion, a trend that may continue growing over time. Analysts believe that this increase has an impact on Bitcoin price. Fo example, Bitcoin dropped to $15,000 in 2022 as the M2 money supply fell from over $21 trillion to $20 trillion.
M2 money supply | Chart by Fred
How the M2 impacts Bitcoin
The M2 impacts Bitcoin because more money in circulation leads to high inflation and a weaker US dollar. In this case, inflation has remained stubbornly high in the past few years, while the US dollar has softened because of its higher supply.
Analysts believe that the correlation between Bitcoin and the M2 money supply has a 60-90 day lag. As such, if the global M2 surges, one can expect the Bitcoin price to soar after a month or two.
Bitcoin has other bullish catalysts in addition to the M2. For example, it has some of the best supply and demand dynamics. Demand has continued soaring this year, with spot ETF inflows jumping to over $45 billion. More companies like The Blockchain Group, GameStop, and Trump Media starting to buy.
More data shows that the supply of Bitcoin on exchanges has plunged to the lowest level in years. This is a sign that it may keep rising in the near term.
The daily chart shows that the BTC price has been in an uptrend in the past few months as it moved from a low of $74,380 to an all-time high of $111,900 last month. After failing to form a death cross in April, the coin has constantly remained above the 50-day and 200-day moving averages.
Bitcoin price has formed a cup-and-handle pattern, and is now in the process of forming the handle section. It has also formed a bullish flag pattern, which mostly results into more gains.
Therefore, the BTC price will likely have a strong bullish breakout as bulls target the all-time high of $111,900 followed by $115,000.
The USD/CHF exchange rate remains under pressure this year as demand for the Swiss franc rises and the US dollar index crashes. After peaking at 0.9198 in January, the pair has plunged by over 10% and moved into a correction. It has plunged to a low of $0.8230.
Switzerland’s GDP is doing well
The USD/CHF exchange rate has crashed in the past few days as the Swiss economy continued doing well.
Data released this week showed that the Swiss economy is growing at a faster pace than expected.
It expanded by 0.8% in the first quarter, higher than the first estimate by the statistics agency last month. It showed faster growth than the fourth quarter, which showed 0.6%.
These numbers mean that the economy has had the strongest growth rate in two years, helped by the soaring exports and robust services sector.
One reason for the export growth was front-loading by companies ahead of Donald Trump’s retaliatory tariffs.
Swiss authorities are now holding talks with the US on resolving some of the issues that the Trump administration have pointed out. They note that the main driver for the Swiss surplus is that the country plays a key role in the gold market. While Switzerland does not mine gold, it has the top refiners.
Authorities also hope to reach a compromise as the Trump administration on pharmaceuticals, its most important component of the economy. Trump has pledged to boost tariffs as he aims to bring back manufacturing to the US.
Actions by the Swiss National Bank have helped to boost the economy as it slashed interest rates from 1.75% in 2023 to 0.25%. The bank may push rates negative again as it attempts to devalue the currency now that inflation has moved to zero.
US dollar index weakness
The USD/CHF exchange rate has crashed because of the falling US dollar index (DXY), which has moved from $110 in January to $99 today.
This decline happened as investors questioned the role of the greenback because of Donald Trump’s policies.
Trump has implemented sweeping tariffs on all countries, and overnight, he pushed tariffs on steel and aluminiumup to 50%, effectively blocking imports.
At the same time, Trump is championing the Big Beautiful Bill that will boost the deficit by over $5 trillion in the next decade. The bill was passed even after Moody’s downgraded the US credit rating, and the US public debt nears $37 trillion.
The next key catalyst for the USD/CHF pair will be the upcoming ADP jobs data, followed by the official nonfarm payroll report on Friday.
While important, these numbers mean will likely not change the Fed’s mind. Officials have hinted that the bank will maintain interest rates unchanged as they observe the impact of Trump’s tariffs on inflation.
The daily chart shows that the USD/CHF exchange rate peaked at 0.9198 on January 13 and is currently at 0.8300. It formed a death cross on April 7 as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. This pattern often leads to more downside over time.
The pair has also formed an inverse cup-and-handle pattern, a popular continuation sign. It moved below the neckline at 0.8375 and retested it, confirming the bearish outlook.
Therefore, the pair will likely continue falling as sellers target the year-to-date low of 0.8043, which is about 2.43% below the current level. A break below that support will point to more downside, potentially to 0.800.
DocuSign stock price has done well in the past 12 months, even as the company has faced substantial challenges following the COVID-19 boom. DOCU shares have jumped by 70% in this period, giving it a market capitalization of over $18.5 billion. This article explains what to expect ahead of earnings.
DocuSign earnings growth
DocuSign is a top software company that offers solutions for signing, which are used by thousands of companies globally. Its business boomed during the COVID pandemic as more companies embraced remote work.
DocuSign is used mostly by sales executives, customer service, procurement, and human resource departments.
The pandemic growth trajectory has cooled since then, but the company continues to add customers. It has also invested in artificial intelligence solutions that have helped it boost its growth.
On this, the company launched and expanded the Intelligent Agreement Management (IAM) platform that helps different parts of an organization in their agreements. It has over 900 integrations and tools to collect user data.
In addition to the adjustment past the pandemic, the company has faced a major challenge because of competition. Most SaaS companies like Box, DocuSign, Salesforce, Adobe, Google, and Microsoft have launched their e-signature solutions.
Data compiled by SeekingAlpha shows that DocuSign’s annual revenue has jumped from $1.45 billion in 2021 to over $2.9 billion last year.
The most recent results showed that its revenue rose by 9% to $776 million in the fourth quarter, while its billings rose by 11% to $923 million.
Ita also grew its margins, with the gross figure rising by 200 basis points to 79.4%. Margins grew partly because of the 6% layoffs that the management implemented in 2024.
The next important catalyst for the DocuSign stock price will be its financial results that comes out on Thursday. Analysts anticipate the results to show that the company’s business slowed in the first quarter.
The average estimate is that its revenue rose by 5.54% in the first quarter to $748 million. They also expect the company’s second-quarter revenue to come in at $775 million, up by 5.37% from a year earlier, and the annual figure will be $3.14 billion followed by $3.36 billion next year.
A key concern among investors is that the company is a bit overvalued as its business slows. Data shows that the company has a trailing twelve-month (TTM) price-to-earnings ratio of 18 and a forward metric of 25.
SaaS companies are often valued using the rule of 40, which compares their growth and margins. DocuSign has a TTM growth of 7.78% and a net income margin of 35%, giving it a rule of 40 metric of 42, meaning that it is a cheap company.
The daily chart shows that the DOCU share price has bounced back in the past few days, moving from a low of $67.6 in April to $91 today. It has already moved above the 50-day and 200-day Exponential Moving Averages (EMA), a sign that bulls are in control.
The stock has also formed an inverse head and shoulders pattern, a popular bullish reversal sign. Also, the Average Directional Index (ADX) has tilted upwards, showing that it has the momentum.
Therefore, the most likely scenario is where the stock rises after earnings as bulls target the year-to-date high of $107.80. A drop below the 200-day EMA will invalidate the bullish outlook and point to more downside, potentially to $67, the lowest point in April.
The Goldman Sachs Nasdaq-100 Premium Income ETF (GPIQ) is trouncing the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) in terms of total return, the most important metric in ETF analysis.
Data shows that the GPIQ ETF has had a total return of 3.06% this year, while the JEPQ has dropped by 2.20%. The pureplay Invesco QQQ ETF (QQQ) has returned 3.30%, beating two funds that promise capital appreciation and higher dividends.
What are the GPIQ and JEPQ ETFs?
JEPQ and GPIQ ETFs are popular funds in the emerging field of covered call funds. They have accumulated over $26 billion and $880 million in assets, respectively.
The two funds aim to expose investors to the biggest companies in the technology space in the United States and pay monthly dividends.
These funds employ a strategy known as covered call, where they invest n in these companies and then sells their call options. By selling these call options, they generate a monthly premium, which they distribute in the form of a dividend.
JEPQ has an expense ratio of 0.35% and a dividend yield of 11.6%, while GPIQ has an annual fee of 0.29% and a yield of 10%. While these yields change occasionally, they constantly remain above 10%.
A 10% dividend yield is a big one since it means that a $10,000 investment will generate at least $1,000 annually. This return excludes the stock appreciation.
JEPQ and GPIQ use a similar approach, but execute it differently. GPIQ uses a dynamic covered call strategy, where it sels at-the-money ATM call options on 25% to 75% of the portfolio. It uses this approach to maximize the premium it receives.
On the other hand, JEPQ ETF uses equity-linked notes or ELNs to implement the covered call strategy. ELNs are complex derivatives that are less transparent. It then sells out-of-the-money call options on about 20% of the portfolio.
The other important difference between the two is that JEPQ is less volatile, with a Sharpe ratio of 0.37 compared to GPIQ’s 0.62.
A closer look at the two funds shows that they have a close correlation since they track the same assets and apply the same approach.
However, while GPIQ is more volatile, it has some benefits. In the first place, it has a lower expense ratio of 0.29% compared to 0.35%, giving a 0.06% spread. While this is a small deviation, it can add up over time.
Further, history shows that GPIQ, which is the underdog, beats JEPQ in terms of performance despite its lower yield. GPIQ’s total return this year was 3.06%, better than JEPQ’s minus 2.2%.
The same happened in the last twelve months as the GPIQ rose by 15.4% compared to JEPQ’s 9.09%. These numbers mean that a similar investment in GPIQ would have a better return than JEPQ.
JEPQ vs JEPI ETF
To be clear: past performance is not always a good indicator of what will happen in the future. However, to be safe, it always makes sense to invest in an asset that has a history of doing well, which, in this case, GPIQ wins.
However, GPIQ and JEPQ should not be used to replace Nasdaq 100 Index ETFs like QQQ since they have a performance history. Instead, analysts note that they should be used to complement them. In this, one can invest 80% of their funds in QQQ and the remaining 20 % in these covered call ETFs.
The Rolls-Royce share price continued its strong surge this week as it reached a new all-time high. It soared to 900p, up by over 2,518% from its lowest point during the pandemic, as it became one of the biggest British companies globally. This trend means that it may soon hit 1,000p as we have predicted several times.
China as a big catalyst for Rolls-Royce share price
Our last articleon Rolls-Royce Holdings identified China as a potential catalyst for the stock. In that article, we noted that Comac, China’s aircraft manufacturer, may turn to the company for engines as tensions with the US rise.
A likely scenario is where the Trump administration will ban General Electric and other American companies from supplying engines and parts to Comac. The goal will to enable Boeing maintain a market share in the aviation industry.
The challenge, however, is that Rolls-Royce Holdings manufactures engines for wide-body aircraft. It has no presence in the narrow-body sector after it abandoned the business a few years ago.
Rolls-Royce has hinted that it will want to return to the narrow-body industry in the future. However, building a new engine from scratch may be a big challenge and take over 6 years to complete.
China Airbus orders
China is a big catalyst for the Rolls-Royce share price as its airlines focus on buying Airbus planes. Indeed, no major airline has made a big Boeing order in the past few years.
Now, Bloomberg is reporting that China is considering a big bid for Airbus planes, a deal that may be announced next month when EU leaders visit Beijing to celebrate long-term ties. The platform reported that the orders could be between 200 and 500.
Bloomberg notes that the potential orders will be spread between wide-body and narrow-body planes. Rolls-Royce Holdings engines power most of Airbus’ wide-body engines, making it a big beneficiary of such a deal.
However, Rolls-Royce gains in this order will take time to materialize because of Airbus’ backlog, which stands at over 8,000 planes. This means that any orders could be delivered in the next decade.
Civil aviation is an important market for Rolls-Royce Holdings, a company that sells engines and then takes long-term service contracts. This division accounts for over 50% of its total revenue.
Rolls-Royce is also benefiting from the other two divisions: power and defence. Its power business is benefiting from the ongoing AI boom, while the defence business is a top beneficiary as European and American governments boost their defense spending.
At the same time, the management has focused on making Rolls-Royce a leaner and more profitable company. Indeed, it achieved its mid-term targets in 2024, two years ahead of schedule.
The daily chart shows that the RR share price has been in a strong uptrend in the past few years as the company’s growth resumed. It recently moved above the key resistance level at 810p, invalidating the double-top pattern that was forming. A double-top is one of the most bearish patterns in technical analysis.
The stock remains above the 50-day and 100-day Exponential Moving Average (EMA), a sign that bulls are in control. Also, the Relative Strength Index (RSI) and the MACD indicator have all pointed upwards.
Therefore, the Rolls-Royce share price will likely continue soaring, with the next point to watch being at 1,000p. The bullish outlook will only become invalid if the stock drops below the support at 850p.
Automakers worldwide voiced concerns alongside US manufacturers on Tuesday regarding China’s dominance over critical minerals, Reuters reported.
The companies warned that China’s export restrictions on rare earth alloys, mixtures, and magnets risk causing significant production delays and shutdowns unless swift remedies are implemented.
This situation has amplified anxieties about China’s control of these vital resources.
This follows similar warnings issued the previous week by an Indian electric vehicle producer.
In April, China disrupted global supply chains essential for automakers, aerospace, semiconductor, and defense industries by halting exports of numerous vital minerals and magnets.
China’s control over the critical mineral sector is highlighted by this action, which is perceived as a bargaining chip in its current trade dispute with US President Donald Trump.
Trump aimed to reshape trade with China, America’s primary economic competitor.
He levied significant tariffs on billions in Chinese imports, intending to reduce a substantial trade deficit and revitalize domestic manufacturing.
Amid market upheaval across stocks, bonds, and currencies sparked by sweeping tariffs against China reaching up to 145%, Trump subsequently reduced these levies.
In retaliation, China implemented its own tariffs and is utilizing its prominent position within essential supply chains to pressure Trump into concessions.
US-China meeting this week
White House spokeswoman Karoline Leavitt announced to reporters on Tuesday that Trump and China’s President Xi Jinping are scheduled to discuss matters this week.
The anticipated export ban is expected to be a key topic during their conversation.
“I can assure you that the administration is actively monitoring China’s compliance with the Geneva trade agreement,” she said.
Our administration officials continue to be engaged in correspondence with their Chinese counterparts.
Trump had previously suggested that China’s gradual lifting of the export ban on critical minerals breaches the Geneva agreement.
Delay in shipments
Delays at numerous Chinese ports have disrupted the shipment of magnets, a critical component in manufacturing cars, drones, robots, and missiles, as license requests undergo processing by Chinese regulatory bodies.
Anxieties are mounting in corporate boardrooms and government centers worldwide, spanning from Tokyo to Washington.
The halting of operations has ignited these concerns. Officials are urgently exploring limited alternatives, fearing that manufacturing of vehicles and other goods might cease by the end of summer.
Hildegard Mueller, head of Germany’s auto lobby was quoted in the report:
If the situation is not changed quickly, production delays and even production outages can no longer be ruled out.
Chasing meetings
Due to concerns about supply chain disruptions, diplomats, car manufacturers, and business leaders from India, Japan, and Europe are actively trying to secure meetings with Beijing authorities.
Their aim is to expedite the authorization of rare earth magnet exports as critical shortages loom.
A Japanese business delegation is scheduled to visit Beijing in early June to discuss trade restrictions with the Ministry of Commerce.
Concurrently, European diplomats from nations with significant automotive sectors have requested urgent meetings with Chinese authorities in recent weeks, according to a Reuters report.
Automaker trade group leadership expressed apprehensions to the Trump administration in a May letter, mirroring concerns raised by executives from General Motors, Toyota, Volkswagen, Hyundai, and other major manufacturers.
The Goldman Sachs Nasdaq-100 Premium Income ETF (GPIQ) is trouncing the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) in terms of total return, the most important metric in ETF analysis.
Data shows that the GPIQ ETF has had a total return of 3.06% this year, while the JEPQ has dropped by 2.20%. The pureplay Invesco QQQ ETF (QQQ) has returned 3.30%, beating two funds that promise capital appreciation and higher dividends.
What are the GPIQ and JEPQ ETFs?
JEPQ and GPIQ ETFs are popular funds in the emerging field of covered call funds. They have accumulated over $26 billion and $880 million in assets, respectively.
The two funds aim to expose investors to the biggest companies in the technology space in the United States and pay monthly dividends.
These funds employ a strategy known as covered call, where they invest n in these companies and then sells their call options. By selling these call options, they generate a monthly premium, which they distribute in the form of a dividend.
JEPQ has an expense ratio of 0.35% and a dividend yield of 11.6%, while GPIQ has an annual fee of 0.29% and a yield of 10%. While these yields change occasionally, they constantly remain above 10%.
A 10% dividend yield is a big one since it means that a $10,000 investment will generate at least $1,000 annually. This return excludes the stock appreciation.
JEPQ and GPIQ use a similar approach, but execute it differently. GPIQ uses a dynamic covered call strategy, where it sels at-the-money ATM call options on 25% to 75% of the portfolio. It uses this approach to maximize the premium it receives.
On the other hand, JEPQ ETF uses equity-linked notes or ELNs to implement the covered call strategy. ELNs are complex derivatives that are less transparent. It then sells out-of-the-money call options on about 20% of the portfolio.
The other important difference between the two is that JEPQ is less volatile, with a Sharpe ratio of 0.37 compared to GPIQ’s 0.62.
A closer look at the two funds shows that they have a close correlation since they track the same assets and apply the same approach.
However, while GPIQ is more volatile, it has some benefits. In the first place, it has a lower expense ratio of 0.29% compared to 0.35%, giving a 0.06% spread. While this is a small deviation, it can add up over time.
Further, history shows that GPIQ, which is the underdog, beats JEPQ in terms of performance despite its lower yield. GPIQ’s total return this year was 3.06%, better than JEPQ’s minus 2.2%.
The same happened in the last twelve months as the GPIQ rose by 15.4% compared to JEPQ’s 9.09%. These numbers mean that a similar investment in GPIQ would have a better return than JEPQ.
JEPQ vs JEPI ETF
To be clear: past performance is not always a good indicator of what will happen in the future. However, to be safe, it always makes sense to invest in an asset that has a history of doing well, which, in this case, GPIQ wins.
However, GPIQ and JEPQ should not be used to replace Nasdaq 100 Index ETFs like QQQ since they have a performance history. Instead, analysts note that they should be used to complement them. In this, one can invest 80% of their funds in QQQ and the remaining 20 % in these covered call ETFs.
China is in advanced discussions to place a major order for Airbus SE aircraft, with a deal potentially timed to coincide with a high-level diplomatic visit from European leaders next month, Bloomberg reported citing people familiar with the matter.
Officials are deliberating an order ranging from 200 to as many as 500 aircraft, spanning both narrowbody and widebody models, including the A330neo, the report said.
The size of the final deal remains fluid, and sources caution that talks may still collapse or take longer to conclude.
Airbus declined to comment, while China’s aviation authority has not responded to media queries.
If the deal reaches 500 aircraft, it would rank among the largest jet orders in aviation history and mark China’s biggest to date.
For comparison, Air India placed a landmark order in 2023 for 470 jets from both Airbus and Boeing, while IndiGo followed with a record-breaking 500-plane narrowbody order with Airbus later that year.
Strategic timing for a geopolitical message
The proposed order is expected to be unveiled during a July visit to Beijing by French President Emmanuel Macron and German Chancellor Friedrich Merz.
The timing is symbolically significant: the leaders are marking 50 years of diplomatic relations between the European Union and China.
France and Germany are also the two biggest shareholders of Airbus.
Should the deal materialise, it would allow President Xi Jinping to send a calculated signal to Washington, where President Donald Trump is gearing up for another term and vowing to reset trade rules with China.
Airbus rival Boeing Co. has remained largely shut out of Chinese commercial aviation deals in recent years, despite being the largest US exporter.
Airbus gains from Boeing’s setbacks
Beijing’s preference for Airbus has deepened in the wake of ongoing US-China tensions and Boeing’s own troubles.
Chinese regulators halted deliveries of Boeing jets in April.
The rift dates back to the Trump administration’s first term and was exacerbated by the 737 Max crisis, when China became the first country to ground the aircraft following two fatal crashes.
Further damage was inflicted earlier this year when a door plug blew out mid-flight on a Boeing jet, triggering a renewed quality crisis and investigations.
Boeing has not secured a major commercial order from China since at least 2017, while Airbus has steadily gained ground.
In 2022, China placed an order for around 300 Airbus narrowbody jets worth an estimated $37 billion.
A boost for widebody demand
Insiders say widebody aircraft could feature prominently in the prospective order, especially as the backlog for twin-aisle planes among Chinese carriers continues to shrink.
The A330neo, Airbus’s smallest widebody, is said to be a likely candidate for the fleet refresh.
The deal would be routed through China’s state-run aircraft procurement body, which typically negotiates on behalf of domestic airlines.
If confirmed, the order would underscore China’s growing alignment with European aerospace interests, even as its relationship with the US remains fraught.
