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Following Meta CEO Mark Zuckerberg’s mid-January warning to employees about raising performance standards and cutting 5% of the workforce, recent layoffs impacting approximately 3,600 workers have generated controversy.

Some affected employees are challenging the company’s assertion that the cuts solely targeted low performers, claiming they received favorable performance reviews.

Zuckerberg’s warning: raising the bar on performance

In an internal memo obtained by Bloomberg, Zuckerberg stated the plan to “manage out people who aren’t meeting expectations over the course of a year,” and “do more extensive performance-based cuts during this cycle.”

At the time, Zuckerberg made it sound as if it would just be low performers who would be affected by the layoffs.

However, some workers who claim they received favorable performance reviews and were otherwise not the lowest performers have gotten caught up in the cuts, which began Monday and impacted about 3,600 workers.

One former Meta employee, Kaila Curry, posted on LinkedIn that she was laid off despite receiving an “exceeds expectations” rating on her midyear review.

“I frequently asked for feedback and was always told I was doing a good job,” Curry wrote.

I was never placed on a PIP [performance improvement plan], never given corrective feedback, and never properly mentored or provided clear expectations. I simply put in the work… I am not a low performer.

Another laid-off ex-Meta employee, LinkedIn user Steven S., a former product designer for Instagram, claimed the company’s assertion it’s cutting the dead wood is “flat-out wrong,” noting that the “label is misleading, and for many of us, it’s flat-out wrong.”

While this user didn’t mention or show what rating he received on the performance review.

Meta’s definition of “low performer”: unclear metrics

However, it’s unclear what Meta qualifies as a “low performer.”

The company didn’t immediately respond to Fortune’s request for comment.

Business Insider also spoke with several Meta employees who had been affected by the layoffs and spoke on the condition of anonymity.

They said they had received an “at or above expectations” rating on their 2024 assessments, which would rank them as mid-tier employees at Meta, not low performers.

“The hardest part is Meta publicly stating they’re cutting low performers, so it feels like we have the scarlet letter on our backs,” one employee told Business Insider.

People need to know we’re not underperformers.

Criticism of Meta’s messaging

Diane Brady, executive director of Fortune Live Media, criticized Zuckerberg’s labeling of Meta’s most recently laid-off employees as low-performing.

“There’s something to be said for letting people leave with their dignity intact rather than branding them as subpar performers,” Brady wrote in her CEO Daily newsletter on Tuesday.

“Companies that celebrate and support former employees tend to create more fans than foes.”

A ‘year of efficiency’

These layoffs follow Zuckerberg’s declared “year of efficiency” in 2023, which involved eliminating 10,000 jobs.

While Zuckerberg insisted the latest round of layoffs would exclusively impact the lowest-performing employees, the company has simultaneously expedited hiring for machine-learning engineers, as reported by Reuters, reflecting a strategic focus on AI development.

“From a hiring standpoint, our focus continues to be on adding technical talent to support our strategic priorities,” Susan Li, Meta’s chief financial officer, said during a January 29 call with investors.

For now, affected Meta employees will continue to question why they were let go.

“Maybe I ‘lacked masculine energy‘ (to quote Mark Zuckerberg himself),” Curry wrote. “Who knows?”

The post Meta layoffs: workers challenge Zuckerberg’s ‘low performer’ justification appeared first on Invezz

Asian equity markets exhibited a mixed performance on Wednesday as investors continued to monitor President Donald Trump’s latest trade policies and assessed the implications of Federal Reserve Chair Jerome Powell’s recent remarks on interest rates.

The prospect of escalating trade tensions, particularly Trump’s announcement of 25% tariffs on imported steel and aluminum, has created uncertainty in the region.

While South Korea and Japan are significant exporters of steel to the US, the overall impact on their economies may be limited due to their diversified export portfolios.

Regional market performance: Nikkei gains, Hang Seng surges, Shanghai slips

Japan’s benchmark Nikkei 225 rose 0.2% in afternoon trading to 38,864.96.

Australia’s S&P/ASX 200 gained 0.4% to 8,519.40. South Korea’s Kospi edged up 0.3% to 2,546.41.

Hong Kong’s Hang Seng jumped 1.6% to 21,626.80, as excitement over DeepSeek continued, although market watchers are wondering when the rally might peak.

The Shanghai Composite slipped less than 0.1% to 3,317.83.

The moves on Wall Street were modest not only for US stocks but also in the bond market, where Treasury yields rose by only a bit.

The potential for a trade war remains a significant concern, with analysts acknowledging the potential for increased prices for US consumers and broad economic disruption.

A negotiating tactic? Trump’s past actions offer hope

However, trading activity has remained relatively calm, partly due to Trump’s history of quickly retracting tariff threats.

His earlier decision to suspend planned tariffs on imports from Canada and Mexico suggests that such measures may be primarily used as a negotiating tactic rather than a fixed long-term policy.

That in turn has much of Wall Street hoping the worst-case scenario may not happen.

“The metal tariffs may serve as negotiating leverage,” Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management, told Yahoo Finance.

Powell’s cautious stance: no immediate rate cuts

Federal Reserve Chair Jerome Powell reiterated his stance on Capitol Hill Tuesday that the Fed is in no hurry to ease interest rates any further.

The Fed had cut its main interest rate sharply through the end of last year, hoping to give a boost to the economy.

But worries about inflation potentially staying stubbornly high have forced the Fed and traders alike to cut back expectations for cuts in 2025.

Some traders are even betting on the possibility of no rate cuts, in part because of worries about the effects of tariffs.

Powell said the economy and interest rates are in a “pretty good place” and acknowledged the risks of both moving too slowly (potentially damaging the economy) and moving too quickly (potentially fueling inflation).

Economic resilience and corporate profits: a balancing act

Higher rates tend to put downward pressure on prices for stocks and other investments, while pressuring the economy by making borrowing more expensive.

That could be risky for a US stock market that critics say already looks too expensive.

The S&P 500 is not far from its all-time high set late last month.

One way companies can offset such downward pressure on their stock prices is to deliver stronger profits.

And big US companies have been mostly doing just that recently, as they report how much profit they made during the last three months of 2024.

That, though, hasn’t always been enough.

Coca-Cola rallied 4.7% after reporting stronger profit and revenue than analysts expected.

Growth in China, Brazil and the United States helped lead the way.

DuPont climbed 6.8% after the chemical company likewise reported better profit than Wall Street expected.

US market performance on Tuesday

All told, the S&P 500 rose 2.06 points, or less than 0.1%, to 6,068.50.

The Dow Jones Industrial Average rose 123.24, or 0.3%, to 44,593.65, and the Nasdaq composite fell 70.41, or 0.4%, to 19,643.86.

Treasury yields and energy prices

In the bond market, the yield on the 10-year Treasury rose to 4.53% from 4.50% late Monday.

The two-year Treasury yield, which moves more closely with expectations for upcoming action by the Fed, held steady.

It remained at 4.28%, where it was late Monday.

In energy trading, benchmark US crude fell 29 cents to $73.03 a barrel.

Brent crude, the international standard, declined 27 cents to $76.73 a barrel.

In currency trading, the US dollar edged up to 153.64 Japanese yen from 152.43 yen.

The euro was unchanged at $1.0363.

The post Asian shares display mixed performance amidst trade tensions and rate uncertainty appeared first on Invezz

Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest electric vehicle battery manufacturer, has filed for a secondary listing in Hong Kong in what could be the city’s largest stock offering in years.

The move by the Shenzhen-listed battery giant, a key supplier to Tesla, Volkswagen, and other major automakers, underscores Hong Kong’s growing role as a capital-raising hub for Chinese firms.

The long-anticipated listing is part of a broader wave of Chinese companies seeking offshore funding, with analysts forecasting a $20 billion rebound in Hong Kong’s initial public offerings this year.

CATL has appointed JPMorgan, Bank of America, China’s CICC, and China Securities International as lead banks for the offering, with Goldman Sachs, Morgan Stanley, and UBS also involved in the deal.

The listing, however, comes at a delicate time for CATL.

The company was added to a US blacklist last month for alleged ties to China’s military, raising potential challenges for its overseas expansion.

In its prospectus, CATL dismissed the designation as a mistake and stated it was actively working to have it removed.

The restriction limits the company’s dealings with certain US government agencies but does not directly impact its global commercial operations.

CATL could raise up to $7 billion

While CATL has not disclosed the exact size or timeline of the offering, market sources suggest it could raise up to $7 billion, depending on market conditions.

Morgan Stanley had earlier estimated that the listing could bring in as much as $7.7 billion.

The company intends to use the funds to accelerate its global expansion, including a new production facility in Hungary and a joint venture with Stellantis in Spain.

CATL is also investing in battery projects in Indonesia as part of its broader strategy to solidify its position as the dominant player in the EV battery market.

Despite its market leadership, CATL has warned of a potential revenue decline of up to 11% in 2024 due to lower product prices.

The company, which has held the top spot in the global EV battery industry for eight consecutive years with a 38% market share in 2024, reported revenues exceeding $50 billion in 2023.

However, it expects net income growth of up to 20% for last year, its slowest pace since 2019.

Can CATL’s listing boost Hong Kong’s capital market

CATL’s listing is expected to be a crucial test for Hong Kong’s stock market, which has struggled with weak deal flows in recent years.

The city’s capital markets have seen a resurgence in early 2025, driven in part by renewed investor confidence in Chinese technology and electronics stocks.

The Hang Seng Index has climbed 13% over the past month, bolstered by optimism following breakthroughs in artificial intelligence and a more favorable economic outlook.

“It is too early to say Hong Kong is back,” Gary Ng, a senior economist at Natixis, told the FT.

The CATL listing “signals that Hong Kong still has advantages for Chinese firms seeking overseas funding”, Ng said, but added that “equity investors remain sceptical of valuations due to decelerating growth in China and geopolitics”. 

Hong Kong’s investment banks may also see limited gains from the renewed IPO activity.

The Financial Times recently reported that rising competition from Chinese banks has pressured fees for deals like CATL’s, making it harder for global banks to profit from the listing boom.

CATL’s heavily redacted filing also flagged currency risks, noting that fluctuations in the renminbi could impact its ability to pay dividends in Hong Kong dollars.

Such concerns reflect broader uncertainties surrounding Chinese firms seeking offshore listings amid volatile economic conditions.

As CATL moves forward with its Hong Kong debut, investors will be watching closely to see whether the offering can reinvigorate the city’s IPO market and whether geopolitical risks will pose any further hurdles to its global ambitions.

The post CATL IPO: will the EV battery giant’s Hong Kong debut revive the city’s capital markets? appeared first on Invezz

In a stunning development within the burgeoning field of artificial intelligence, Elon Musk is spearheading a group of investors with a $97.4 billion offer to acquire OpenAI, the company behind the groundbreaking ChatGPT chatbot.

This ambitious bid throws into sharp relief Musk’s long-standing feud with OpenAI CEO Sam Altman and his persistent concerns about the company’s direction.

Musk has engaged in a series of legal challenges against OpenAI and Altman, alleging that the company has misrepresented itself as a purely philanthropic endeavor.

He claims that OpenAI has strayed from its founding charter by prioritizing profit over the responsible development of AI, a charge OpenAI disputes.

Marc Toberoff, an attorney representing the investors, stated:

If Sam Altman and the present OpenAI, Inc. Board of Directors are intent on becoming a fully for-profit corporation, it is vital that the charity be fairly compensated for what its leadership is taking away from it: control over the most transformative technology of our time. It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens.

The evolution of OpenAI: from non-profit to billion-dollar valuation

OpenAI operates under a unique structure: a nonprofit entity that controls OpenAI LP, a for-profit company.

This for-profit arm has been instrumental in transforming OpenAI from an organization of limited value to a company with a valuation approaching $100 billion in just a few years.

Altman is largely credited with masterminding this transformation and driving the company’s success.

Musk’s ambitions: a challenge to OpenAI’s dominance?

The massive investment from Musk, as initially reported in the Wall Street Journal, could grant him majority control of OpenAI, potentially positioning it as a direct competitor to his own X.AI artificial intelligence company.

In a terse response to Musk’s offer, Altman posted on X, “no thank you but we will buy twitter for $9.74 billion if you want.”

This playful jab underscores the ongoing tension between the two tech titans.

Musk’s exit and diverging visions

Musk, a co-founder of OpenAI in 2015, departed the organization due to disagreements surrounding its shift toward for-profit activities.

OpenAI was initially founded with the aim of addressing the potential existential threat posed by artificial general intelligence (AGI).

The company established a board of overseers to scrutinize its products and committed to making its code publicly available.

The pressure to monetize

However, a company backed by prominent investors like Microsoft and venture capital firm Thrive Capital faces inherent pressure to generate revenue and deliver returns.

This tension between ethical considerations and profit motives may have driven Altman to prioritize rapid innovation and market deployment, potentially at the expense of rigorous safety measures.

Internal Conflicts: A Boardroom Battle and Subsequent Reshuffling

In late 2023, OpenAI experienced a tumultuous boardroom battle, culminating in Altman’s temporary ouster before he was swiftly reinstated.

The board has since been restructured, with former directors expressing concerns that OpenAI was progressing too rapidly without sufficient regard for safety protocols.

Legal maneuvering: lawsuits and accusations of racketeering

Musk initiated legal action against OpenAI in June 2024, subsequently withdrawing the initial lawsuit after the company released a blog post featuring Musk’s emails from OpenAI’s formative period.

These emails appeared to contradict his claims that OpenAI was wrongfully pursuing profit.

Musk filed a new lawsuit in August 2024, accusing OpenAI of accelerating the development of powerful AGI technology to “maximize profits” and alleging racketeering activities.

OpenAI, in turn, has accused Musk of harboring resentment over his departure from the startup in 2018, following an unsuccessful attempt to persuade his co-founders to allow Tesla to acquire it.

The post A friend? Foe? Musk’s bid to buy OpenAI for $97.4B adds twist to AI leadership struggle appeared first on Invezz

The Trump administration escalated its offensive against the Consumer Financial Protection Bureau (CFPB) on Monday, denouncing the consumer watchdog as a “woke” agency whose “weaponization ends right now,” even as a union representing CFPB workers filed suit over a White House-ordered work stoppage.

The salvo came hours after Russell Vought, the White House budget chief appointed acting CFPB director by President Trump, halted more of the bureau’s operations.

The action triggered protests and prompted agency employees to file lawsuits.

CFPB under fire

Created in the wake of the 2008 financial crisis, the CFPB has a broad mandate to safeguard consumers from unfair, deceptive, and predatory financial practices.

Under President Biden, the bureau aggressively exercised its authorities, enacting a series of rules designed to expand access to banking, curb excessive credit card fees, and ensure that digital payment apps protect consumer funds to the same degree as traditional banks.

According to the CFPB, its enforcement efforts have secured roughly $20 billion in refunds and other relief for Americans.

However, Republicans have criticized the agency for overreach in both its regulations and punishments. Billionaire Elon Musk has also attacked the CFPB, especially as the agency has looked to expand its jurisdiction to include major tech companies.

His social media site X recently announced a partnership with Visa involving payments.

Agency paralyzed

By Monday, the Trump administration had effectively brought the CFPB to a standstill.

Vought instructed employees to stay home after moving to halt ongoing investigations and cut off the agency’s access to millions of dollars in federal funding.

According to an agency-wide email obtained by The Washington Post, Vought instructed employees to, “Please do not perform any work tasks.”

The work stoppage has crippled the bureau’s ability to investigate corporate wrongdoing, protect consumers from mishandled accounts, defend existing regulations in court, and supervise banks to ensure financial stability.

Vought and his team extended the directive to include the agency’s contractors, according to a second email later obtained by The Post.

Supporters fear further action: protests erupt in Washington

The administration’s actions have fueled concerns among the agency’s supporters that Trump may seek to lay off staff or shut down the bureau entirely.

Protests erupted outside agency headquarters, with demonstrators chanting anti-Musk slogans, including, “Lock him up.”

“Senators, senators, take the lead,” the protesters chanted. “Stop their power grab, stop their greed.”

While dissolving the CFPB would typically require an act of Congress, Trump has shown a willingness to circumvent lawmakers in shaping the budget.

He has taken similar steps to shutter other agencies whose spending he deems wasteful.

Sen. Elizabeth Warren (D-Massachusetts), who helped found the CFPB, said that “Congress built the CFPB, and no one other than Congress — not the president, not Musk, not Vought — can shut it down,” in a video statement Monday.

A union representing CFPB workers sued Vought in federal court Sunday, arguing that the acting director’s initial orders represent “a precursor to a purge of CFPB’s workforce, which is now prohibited from fulfilling the agency’s statutory mission.”

The National Treasury Employees Union (NTEU) has requested a judge to prevent Vought from taking further actions that might freeze the CFPB’s operations.

The union also filed a second lawsuit against Vought over the work of the U.S. DOGE Service, the team of young aides — convened by Musk — who have embarked on a cost-cutting blitzkrieg upending the nation’s capital.

The NTEU alleged that Musk and his cohort had violated bureau employees’ privacy rights when they gained access to agency computer systems and viewed sensitive personal data.

Lawyers for the NTEU said, “The Bureau has acted contrary to law and regulation by granting DOGE and its members access to the records that the Bureau collects and maintains about every CFPB employee,” in their filing.

White House defends actions: “Woke” agenda under scrutiny

Spokespeople for the White House did not respond to requests for comment from The Post.

However, the White House defended its actions, attacking the CFPB for its “woke” agenda under previous director Rohit Chopra, a Biden appointee, arguing in part that the agency “gave itself the authority to regulate Americans’ checking accounts by dictating government price controls.”

Trump fired Chopra this month, before his term was set to expire.

The White House’s comment appeared to refer to recent CFPB rules that limit the penalties banks can charge customers who overspend their checking accounts.

The Biden-era regulations aimed to spare low-income Americans from debilitating fees, but bank lobbyists have sued to stop them from taking effect, arguing the CFPB had no authority to issue them.

The post Consumer protection under threat? White House moves to defund, disband CFPB appeared first on Invezz

The escalating feud between Elon Musk and OpenAI CEO Sam Altman took a dramatic turn on Monday as Altman responded to Musk’s $97.4 billion bid to acquire OpenAI with a counter-offer of his own: a tongue-in-cheek proposal to purchase Twitter, now X, for $9.74 billion.

The exchange follows a report by the Wall Street Journal that a consortium led by the Tesla CEO had offered $97.4 billion for the non-profit that controls OpenAI, marking the latest attempt by Musk to steer the artificial intelligence startup away from its for-profit trajectory.

Musk bought Twitter in 2022 and renamed it X.

‘No, thank you’: Altman’s snarky rebuffal on Musk’s platform

He said in a post on Musk-owned X, “no thank you but we will buy twitter for $9.74 billion if you want”.

Altman conveyed to OpenAI staff that the company’s board of directors intends to unequivocally reject Musk’s “supposed bid,” according to a report by The Information on Monday.

Musk’s motives: a return to OpenAI’s non-profit roots

Musk cofounded OpenAI with Altman in 2015 as a nonprofit, but left before the company took off.

He founded the competing AI startup xAI in 2023.

Musk attorney Marc Toberoff said he submitted the bid to OpenAI’s board of directors, according to the report.

Musk, his own AI startup, xAI, and a consortium of investment firms want to take control of the ChatGPT maker and revert it to its original charitable mission as a nonprofit research lab, according to Musk’s attorney Marc Toberoff.

The rivalry between Musk and Altman, who initially collaborated to establish OpenAI, stems from fundamental disagreements over the company’s direction and its transition to a for-profit entity.

Musk resigned from OpenAI’s board in 2018, marking a significant turning point in their relationship.

Musk recently criticized a $500 billion OpenAI-led project announced by President Trump at the White House.

Musk, the CEO of Tesla and owner of tech and social media company X, is a close ally of President Donald Trump.

He spent more than a quarter of a billion dollars to help elect Trump, and leads the Department of Government Efficiency, a new arm of the White House tasked with radically shrinking the federal bureaucracy.

Legal challenges and accusations of betrayal

Musk, an early OpenAI investor and board member, sued the company last year, first in a California state court and later in federal court, alleging it had betrayed its founding aims as a nonprofit research lab that would benefit the public good by safely building better-than-human AI.

ChatGPT’s rise and internal strife

The explosive success of ChatGPT two years ago catapulted OpenAI into the global spotlight and generated a substantial revenue stream.

However, it also intensified internal conflicts regarding the organization’s future and the development of advanced AI technologies.

In late 2023, OpenAI’s non-profit board briefly fired Altman, before reinstating him days later with a newly constituted board.

The post ‘We’ll buy Twitter for $9.74B’: OpenAI CEO shuts down Musk’s acquisition bid appeared first on Invezz

The pro-crypto stance of US President Donald Trump is reverberating across global markets, particularly in Japan, where one company’s bold pivot to Bitcoin accumulation is generating extraordinary returns for its shareholders.

Shares of Metaplanet Inc. have skyrocketed roughly 4,800% over the past year, making it the top-performing Japanese equity and one of the best-performing stocks globally, according to data compiled by Bloomberg.

This surge mirrors Bitcoin’s own impressive rally, which reached a record high of $109,241 on January 20 as Trump was sworn in for his second term (though it has since given up some of those gains).

Emulating MicroStrategy: a Bitcoin-first strategy takes hold

Metaplanet is among a growing number of companies seeking to replicate the success of Michael Saylor’s Strategy, formerly known as MicroStrategy Inc., which has become a leveraged Bitcoin proxy and a dominant force in the crypto space after accumulating over $45 billion worth of the digital asset.

Simon Gerovich, Metaplanet’s CEO and a former Goldman Sachs equity derivatives trader, told Bloomberg he was inspired by Saylor’s strategy after hearing about it on a podcast.

In early 2024, Gerovich shifted Metaplanet, previously a hotel developer called Red Planet Japan Inc., to a “Bitcoin-first strategy” following a pandemic-induced slowdown that forced the closure of most of its hotels.

Retail investors fuel the rally: risks and rewards

Since adopting its Bitcoin-centric approach, Metaplanet’s shareholder base has expanded dramatically, growing by 500% in 2024 to reach almost 50,000, according to the company.

While institutional investors like Capital Group (which also invests in Strategy) hold stakes in the company, the majority of shareholders are retail investors, many with limited experience in the highly volatile crypto market.

Rhiannon Ewart-White, Japan equity analyst and managing director of UK-based Storm Research, cautioned that “Metaplanet has such high exposure to the volatile retail base.

They need to make sure shareholders understand exactly what their strategy is.”

Financial turnaround: from losses to profits

After six consecutive years of losses, Metaplanet reported ¥350 million ($2.3 million) in operating profit for the year ended December 2024 on Monday.

These results are likely to further boost Metaplanet’s stock, according to Ewart-White.

Gerovich, who attended Trump’s inauguration ceremony in Washington last month, told Bloomberg that “the excitement around a more Bitcoin-friendly regulatory environment” in the US has catapulted demand in Japan for the token.

Metaplanet isn’t the only Japanese company adopting a MicroStrategy-like strategy.

Software developer Remixpoint Inc., for example, announced plans to purchase ¥1.2 billion in Bitcoin last September and has seen its stock increase by over 300% since.

Tax incentives for Bitcoin exposure

Many of Metaplanet’s retail shareholders bought shares through the Nippon Individual Savings Account (NISA) program, which Japan’s government revamped in early 2024 to encourage long-term investments.

Getto Hagiya, an 18-year-old robotics student from Tokyo, invested in Metaplanet shares as his first investment through the tax-free program. He said he became interested in Bitcoin after Trump promoted crypto-friendly policies during his campaign.

“I believe Bitcoin will be an indispensable asset in the future,” Hagiya told Bloomberg.

He was also enticed to invest by Metaplanet’s offer of free Bitcoin merchandise at its shareholder meetings.

Capital gains on direct Bitcoin purchases are subject to taxes of up to 55% in Japan, making stock proxies like Metaplanet via NISA an attractive, cost-effective option for small-scale and first-time investors.

Yen depreciation fuels Bitcoin appeal

Gerovich believes that “ongoing yen depreciation” makes Japan a fertile ground for Bitcoin adoption, as investors seek “a hedge against monetary debasement.”

Aggressive Bitcoin Acquisition Plans

As of January 28, Metaplanet held 1,762 Bitcoin (currently worth about $172 million), according to a company presentation.

The firm plans to increase its holdings to 10,000 tokens by the end of 2025 and 21,000 by the end of 2026.

To finance these purchases, Metaplanet intends to issue 21 million shares via moving strike warrants.

The company plans to rebrand its sole remaining hotel, the Royal Oak in Tokyo’s Gotanda area, as “The Bitcoin Hotel” later this year, aiming to host Bitcoin-related seminars and events.

While Metaplanet has a “profitable, albeit very small” hotel business backing its Bitcoin buying, according to Storm Research’s Ewart-White, she cautioned that “if the price of Bitcoin tanks, that’s going to be quite difficult for them.”

The post Japanese firm’s Bitcoin embrace fuels meteoric stock surge amid crypto euphoria appeared first on Invezz

Google Maps has updated its naming conventions for US-based users, now displaying the body of water previously known as the Gulf of Mexico as the “Gulf of America.”

The change follows an executive order signed by former US President Donald Trump, who sought to “honor American greatness” by renaming geographic features linked to American history.

“People using Maps in the US will see ‘Gulf of America,’ and people in Mexico will see ‘Gulf of Mexico.’ Everyone else will see both names,” Google said in a statement Monday.

According to Google, the platform follows a longstanding policy of aligning its geographic names with official government sources.

The executive order, titled “Restoring Names That Honour American Greatness” (Executive Order 14172), instructs the US Secretary of the Interior to implement the name change within 30 days.

The White House statement accompanying the order defines the newly named Gulf as the “US Continental Shelf area bounded to the northeast, north, and northwest by Texas, Louisiana, Mississippi, Alabama, and Florida, extending to the maritime boundary with Mexico and Cuba.”

Mount McKinley name change not taken effect yet

The renaming of the Gulf was part of Trump’s broader effort to restore names that “reflect America’s historical legacy.”

The order also includes a provision to revert the name of Mount Denali, North America’s highest peak, back to Mount McKinley.

In 2015, former President Barack Obama changed the name of the mountain from Mount McKinley to Denali, the Indigenous name used for centuries by the Koyukon Athabascan people.

Trump’s order criticized this move as “an affront to President McKinley’s life, his achievements, and his sacrifice.”

It further drew parallels between McKinley and Trump, noting that McKinley “championed tariffs” and was assassinated “in an attack on our Nation’s values and our success.”

While the Gulf of America name change has been implemented on Google Maps, the Mount McKinley change has not yet taken effect.

The US Department of the Interior confirmed that it had updated government maps, with Secretary Doug Burgum sharing a screenshot on X that read, “It’s official!”

Mixed reactions and international response

Trump’s decision to rename the Gulf has sparked strong reactions both domestically and internationally.

Mexican President Claudia Sheinbaum sarcastically suggested renaming North America as “Mexican America” in response to the move.

In the US, the change has been welcomed by some of Trump’s supporters as a symbolic act of reclaiming American identity.

However, critics argue that the move is unnecessary and politically motivated.

The renaming of Mount Denali has also drawn backlash from Indigenous groups in Alaska, who see the attempt to revert the name as dismissive of their cultural heritage.

During a flight over the Gulf on Air Force One en route to the Super Bowl in New Orleans, Trump reinforced his stance, calling the renaming a “historic moment” in reinstating “American pride in our nation’s history and achievements.”

The post Why Google is calling the Gulf of Mexico the Gulf of America for US users appeared first on Invezz

The Trump administration escalated its offensive against the Consumer Financial Protection Bureau (CFPB) on Monday, denouncing the consumer watchdog as a “woke” agency whose “weaponization ends right now,” even as a union representing CFPB workers filed suit over a White House-ordered work stoppage.

The salvo came hours after Russell Vought, the White House budget chief appointed acting CFPB director by President Trump, halted more of the bureau’s operations.

The action triggered protests and prompted agency employees to file lawsuits.

CFPB under fire

Created in the wake of the 2008 financial crisis, the CFPB has a broad mandate to safeguard consumers from unfair, deceptive, and predatory financial practices.

Under President Biden, the bureau aggressively exercised its authorities, enacting a series of rules designed to expand access to banking, curb excessive credit card fees, and ensure that digital payment apps protect consumer funds to the same degree as traditional banks.

According to the CFPB, its enforcement efforts have secured roughly $20 billion in refunds and other relief for Americans.

However, Republicans have criticized the agency for overreach in both its regulations and punishments. Billionaire Elon Musk has also attacked the CFPB, especially as the agency has looked to expand its jurisdiction to include major tech companies.

His social media site X recently announced a partnership with Visa involving payments.

Agency paralyzed

By Monday, the Trump administration had effectively brought the CFPB to a standstill.

Vought instructed employees to stay home after moving to halt ongoing investigations and cut off the agency’s access to millions of dollars in federal funding.

According to an agency-wide email obtained by The Washington Post, Vought instructed employees to, “Please do not perform any work tasks.”

The work stoppage has crippled the bureau’s ability to investigate corporate wrongdoing, protect consumers from mishandled accounts, defend existing regulations in court, and supervise banks to ensure financial stability.

Vought and his team extended the directive to include the agency’s contractors, according to a second email later obtained by The Post.

Supporters fear further action: protests erupt in Washington

The administration’s actions have fueled concerns among the agency’s supporters that Trump may seek to lay off staff or shut down the bureau entirely.

Protests erupted outside agency headquarters, with demonstrators chanting anti-Musk slogans, including, “Lock him up.”

“Senators, senators, take the lead,” the protesters chanted. “Stop their power grab, stop their greed.”

While dissolving the CFPB would typically require an act of Congress, Trump has shown a willingness to circumvent lawmakers in shaping the budget.

He has taken similar steps to shutter other agencies whose spending he deems wasteful.

Sen. Elizabeth Warren (D-Massachusetts), who helped found the CFPB, said that “Congress built the CFPB, and no one other than Congress — not the president, not Musk, not Vought — can shut it down,” in a video statement Monday.

A union representing CFPB workers sued Vought in federal court Sunday, arguing that the acting director’s initial orders represent “a precursor to a purge of CFPB’s workforce, which is now prohibited from fulfilling the agency’s statutory mission.”

The National Treasury Employees Union (NTEU) has requested a judge to prevent Vought from taking further actions that might freeze the CFPB’s operations.

The union also filed a second lawsuit against Vought over the work of the U.S. DOGE Service, the team of young aides — convened by Musk — who have embarked on a cost-cutting blitzkrieg upending the nation’s capital.

The NTEU alleged that Musk and his cohort had violated bureau employees’ privacy rights when they gained access to agency computer systems and viewed sensitive personal data.

Lawyers for the NTEU said, “The Bureau has acted contrary to law and regulation by granting DOGE and its members access to the records that the Bureau collects and maintains about every CFPB employee,” in their filing.

White House defends actions: “Woke” agenda under scrutiny

Spokespeople for the White House did not respond to requests for comment from The Post.

However, the White House defended its actions, attacking the CFPB for its “woke” agenda under previous director Rohit Chopra, a Biden appointee, arguing in part that the agency “gave itself the authority to regulate Americans’ checking accounts by dictating government price controls.”

Trump fired Chopra this month, before his term was set to expire.

The White House’s comment appeared to refer to recent CFPB rules that limit the penalties banks can charge customers who overspend their checking accounts.

The Biden-era regulations aimed to spare low-income Americans from debilitating fees, but bank lobbyists have sued to stop them from taking effect, arguing the CFPB had no authority to issue them.

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The pro-crypto stance of US President Donald Trump is reverberating across global markets, particularly in Japan, where one company’s bold pivot to Bitcoin accumulation is generating extraordinary returns for its shareholders.

Shares of Metaplanet Inc. have skyrocketed roughly 4,800% over the past year, making it the top-performing Japanese equity and one of the best-performing stocks globally, according to data compiled by Bloomberg.

This surge mirrors Bitcoin’s own impressive rally, which reached a record high of $109,241 on January 20 as Trump was sworn in for his second term (though it has since given up some of those gains).

Emulating MicroStrategy: a Bitcoin-first strategy takes hold

Metaplanet is among a growing number of companies seeking to replicate the success of Michael Saylor’s Strategy, formerly known as MicroStrategy Inc., which has become a leveraged Bitcoin proxy and a dominant force in the crypto space after accumulating over $45 billion worth of the digital asset.

Simon Gerovich, Metaplanet’s CEO and a former Goldman Sachs equity derivatives trader, told Bloomberg he was inspired by Saylor’s strategy after hearing about it on a podcast.

In early 2024, Gerovich shifted Metaplanet, previously a hotel developer called Red Planet Japan Inc., to a “Bitcoin-first strategy” following a pandemic-induced slowdown that forced the closure of most of its hotels.

Retail investors fuel the rally: risks and rewards

Since adopting its Bitcoin-centric approach, Metaplanet’s shareholder base has expanded dramatically, growing by 500% in 2024 to reach almost 50,000, according to the company.

While institutional investors like Capital Group (which also invests in Strategy) hold stakes in the company, the majority of shareholders are retail investors, many with limited experience in the highly volatile crypto market.

Rhiannon Ewart-White, Japan equity analyst and managing director of UK-based Storm Research, cautioned that “Metaplanet has such high exposure to the volatile retail base.

They need to make sure shareholders understand exactly what their strategy is.”

Financial turnaround: from losses to profits

After six consecutive years of losses, Metaplanet reported ¥350 million ($2.3 million) in operating profit for the year ended December 2024 on Monday.

These results are likely to further boost Metaplanet’s stock, according to Ewart-White.

Gerovich, who attended Trump’s inauguration ceremony in Washington last month, told Bloomberg that “the excitement around a more Bitcoin-friendly regulatory environment” in the US has catapulted demand in Japan for the token.

Metaplanet isn’t the only Japanese company adopting a MicroStrategy-like strategy.

Software developer Remixpoint Inc., for example, announced plans to purchase ¥1.2 billion in Bitcoin last September and has seen its stock increase by over 300% since.

Tax incentives for Bitcoin exposure

Many of Metaplanet’s retail shareholders bought shares through the Nippon Individual Savings Account (NISA) program, which Japan’s government revamped in early 2024 to encourage long-term investments.

Getto Hagiya, an 18-year-old robotics student from Tokyo, invested in Metaplanet shares as his first investment through the tax-free program. He said he became interested in Bitcoin after Trump promoted crypto-friendly policies during his campaign.

“I believe Bitcoin will be an indispensable asset in the future,” Hagiya told Bloomberg.

He was also enticed to invest by Metaplanet’s offer of free Bitcoin merchandise at its shareholder meetings.

Capital gains on direct Bitcoin purchases are subject to taxes of up to 55% in Japan, making stock proxies like Metaplanet via NISA an attractive, cost-effective option for small-scale and first-time investors.

Yen depreciation fuels Bitcoin appeal

Gerovich believes that “ongoing yen depreciation” makes Japan a fertile ground for Bitcoin adoption, as investors seek “a hedge against monetary debasement.”

Aggressive Bitcoin Acquisition Plans

As of January 28, Metaplanet held 1,762 Bitcoin (currently worth about $172 million), according to a company presentation.

The firm plans to increase its holdings to 10,000 tokens by the end of 2025 and 21,000 by the end of 2026.

To finance these purchases, Metaplanet intends to issue 21 million shares via moving strike warrants.

The company plans to rebrand its sole remaining hotel, the Royal Oak in Tokyo’s Gotanda area, as “The Bitcoin Hotel” later this year, aiming to host Bitcoin-related seminars and events.

While Metaplanet has a “profitable, albeit very small” hotel business backing its Bitcoin buying, according to Storm Research’s Ewart-White, she cautioned that “if the price of Bitcoin tanks, that’s going to be quite difficult for them.”

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