European stock markets are poised to begin the new trading week on a positive note Monday, with investors gearing up for a significant week filled with major corporate earnings announcements and key economic data releases across Europe and the United States.
Adding significant corporate intrigue, Italian banking consolidation moves back into the spotlight with a major takeover offer.
Early indicators suggest gains across the continent at the open.
According to data from IG, the UK’s FTSE 100 is expected to climb 115 points to 8,430, Germany’s DAX is projected to add 26 points to 22,266, France’s CAC 40 is seen rising 16 points to 7,553, and Italy’s FTSE MIB is anticipated to gain 77 points to 36,955.
This follows a muted overnight session in Asia-Pacific markets where investors assessed Chinese business support measures and ongoing trade talk developments, while US stock futures edged slightly lower ahead of a packed earnings schedule.
Spotlight on Italy: Mediobanca launches hostile bid for Banca Generali
Dominating early corporate news is a significant move in the Italian banking sector.
Lender Mediobanca launched a public offer valued at 6.3 billion euros (approximately $7.17 billion) to acquire domestic rival Banca Generali.
This bold move underscores Mediobanca’s ambition to significantly bolster its wealth management capabilities.
Interestingly, Mediobanca itself has been reported as a potential takeover target for Banca Monte dei Paschi di Siena, highlighting the swirling consolidation activity within Italy’s financial landscape.
Mediobanca’s offer is structured primarily as a share swap, involving shares of Banca Generali’s parent company, the Italian insurance giant Assicurazioni Generali (which holds a 50.17% stake in Banca Generali).
The proposed exchange ratio is set at 1.7 Assicurazioni Generali shares (ex-dividend) for each share of Banca Generali, based on closing prices from April 25.
This implies an offer price equivalent to 54.17 euros per Banca Generali share, representing an approximate 11% premium over Mediobanca’s last closing price.
Mediobanca stated the combination aims to create “a market leader, ranking second in Italy by assets (TFAs of €210bn) and distribution network (approx. 3,700 professionals),” projecting potential synergies of around 300 million euros from the deal.
Banking consolidation trend continues
This takeover bid marks the latest chapter in a notable wave of consolidation attempts sweeping through Italy’s banking sector.
Hostile offers, once rare in the European banking space, have become more prominent, with UniCredit and Monte dei Paschi also pursuing domestic and international deals since late last year.
This trend reflects the ongoing pressure on European banks to gain scale and efficiency to better compete with their larger transatlantic counterparts, with mergers seen by analysts as a key potential pathway.
Beyond the M&A buzz, investors today will digest earnings reports from notable companies including Porsche, Schneider Electric, and Deutsche Boerse.
Key economic data releases include the latest unemployment figures from France and Spain.
Looking ahead, the week holds crucial macro data points, with French and German GDP and inflation figures due Wednesday, alongside highly anticipated earnings from financial heavyweights like HSBC, BP, Deutsche Bank, and energy major Shell.
The heavy flow of earnings and economic data will provide fresh direction for markets throughout the week.
Shares in Deliveroo surged on Monday morning after the London-listed food delivery group announced it had received a $3.6 billion (£2.7 billion) takeover approach from US rival DoorDash.
The stock jumped 17% at the start of trading, making it the top performer on the FTSE 250 index, which was up 0.7% overall.
Deliveroo said it had received an indicative proposal from DoorDash offering 180p per share in cash.
The company’s board indicated that it would be “minded to recommend” such an offer to its shareholders should a formal bid be made.
Deliveroo shares rose to 170p early on Monday, up sharply from their closing price of 146.6p on Friday.
In a separate announcement, Deliveroo said it would suspend its £100 million share buyback programme with immediate effect, citing the approach from DoorDash.
The company had been returning cash to shareholders following efforts to stabilise its business after a rocky public debut.
DoorDash a “natural buyer” but offer leaves room for rival bids: analysts
Analysts have described DoorDash as a logical acquirer for Deliveroo, noting that the two companies have limited geographic overlap.
“DoorDash is a natural buyer for Deliveroo given that there are no real geographic overlaps between the two companies, Morgan Stanley analyst Luke Holbrook wrote.
However, some market commentators suggested that the 180p per share offer might not be enough to seal the deal without competition.
Brokerage Panmure Liberum said the offer was “by no means a knockout valuation”, leaving room for a potential bidding war.
Prior to the latest developments, the firm had a target price of 200p on Deliveroo shares.
Deliveroo, co-founded by chief executive Will Shu in 2013, operates across nine countries and works with around 135,000 riders.
Should the takeover proceed at the proposed price, Shu stands to collect more than £172 million based on his 5.9% holding in the business.
Deliveroo’s journey from a rocky IPO to takeover target
Deliveroo’s journey on the London Stock Exchange has been tumultuous.
The company floated in 2021 at an initial price of 390p per share but saw its stock tumble by 25% on its first day of trading, earning it the nickname “Flopperoo”.
Deliveroo has struggled for years to break even as it expanded aggressively from a startup to a major player in the global food delivery industry.
In 2024, however, the company not only posted its first profit but also generated positive cash flow for the first time.
Revenue rose to £2.1 billion, driven by a 5% increase in the total value of orders to £7.4 billion.
DoorDash had previously held talks with Deliveroo over a possible takeover, but negotiations reportedly collapsed over valuation disagreements.
Its renewed interest comes amid pressure on food delivery companies from inflation and changing consumer habits.
The move fits into DoorDash’s broader international expansion strategy.
The US-based group operates marketplaces in over 30 countries and has made several high-profile acquisitions, including buying Finnish firm Wolt in 2022 for more than $8 billion and acquiring premium service Caviar in 2019.
A combination with Deliveroo would further consolidate the competitive food delivery sector, which continues to grapple with thin margins, rising costs, and growing demands for profitability.
Alphabet Inc. delivered stronger-than-expected first-quarter results, reflecting the continued resilience of its core search business.
However, analysts caution that the upbeat numbers may not translate into lasting gains for the company’s stock, given the broader macroeconomic backdrop and a market increasingly swayed by headlines rather than fundamentals.
Shares of Alphabet rose on Friday, with Class A shares gaining 1.7% and Class C shares up 2.3%.
The earnings report showed revenue growth of 12% year-on-year, with YouTube revenue increasing 10%—figures that broadly beat Wall Street expectations.
Yet the bigger question remains: will such a beat be enough?
Bernstein Research analyst Mark Shmulik noted that while Alphabet “delivered a pristine quarter,” he remains skeptical about the stock’s trajectory.
“It’s too early to do a victory dance,” he wrote in a note to clients.
The concern is not with Alphabet’s fundamentals, which he called solid across the board, but with the broader environment where investor focus is being pulled away by geopolitical headlines and fears of a looming economic slowdown.
Estimates for Alphabet had already been trimmed over the past six weeks due to concerns over rising tariffs and their potential impact on global commerce.
Alphabet Chief Executive Sundar Pichai said on the earnings call that the changes to the “de minimis” exemption would pose a “slight headwind” to ad revenue this year, mainly from the Asia-Pacific region.
This comes at a time when digital advertisers are already grappling with economic uncertainty and shifting consumer behaviour.
Despite the strength in its search and YouTube businesses, Alphabet provided little clarity on how such macro changes could affect performance in the coming quarters.
Rising costs from stock-based compensation, legal battles, and depreciation were also flagged during the earnings call, suggesting headwinds to margin improvement.
Search resilience welcome, but uncertainty clouds ad outlook
UBS Securities acknowledged that Alphabet’s outperformance in search would reassure investors betting on its comparative strength in the digital ad space.
“Heading into (first-quarter) advertising prints, investors were hoping that search shows greater resilience versus the rest of the digital ecosystem against a rougher macro drop,” UBS analysts, including Stephen Ju, wrote in the note.
“So, the beat will be seen as affirming this view.”
UBS said Pichai’s acknowledgement that the de minimis exemption would pose a headwind to ad revenue, is likely to fuel concerns that overall growth in the digital market could see weaker trends from the ongoing quarter onwards.
Still, Alphabet remains committed to its long-term growth plans.
Chief Financial Officer Anat Ashkenazi said the company would continue to target $75 billion in capital expenditures this year, which UBS interpreted as a vote of confidence in the revenue outlook.
She also noted plans to manage costs, including headcount-related expenses, to help offset rising capex-related depreciation.
Analysts raise price targets but say stock will remain under pressure
Bernstein reiterated a market-perform rating on the stock and raised its price target to $185 from $165, suggesting limited upside from current levels.
“No guidance means no need to be conservative or highlight risks beyond what’s on the paper,” Shmulik wrote.
“We wouldn’t be surprised to see profit taking in the name here with a nice recovery in the share price off the bottom over the past few weeks.”
UBS raised its own target slightly to $186 from $173, while maintaining a neutral stance.
“The stock may still remain under pressure,” UBS said, citing regulatory uncertainties and competitive pressures in Alphabet’s core business lines.
As Shmulik of Bernstein concluded, this might be “as good as it gets” for Alphabet in the near term, especially without traditional forward guidance.
In a market jittery over trade, inflation, and interest rates, strong earnings alone may not be enough to sustain momentum.
Shares of Reliance Industries Ltd. rose 4% on Monday to touch a five-month high of ₹1,353 apiece, as investors reacted positively to the company’s March quarter results and a flurry of target price hikes from brokerages.
The stock movement reinforced Reliance’s position as the country’s most valuable company by market capitalisation.
The Mukesh Ambani-led conglomerate reported a consolidated net profit of ₹22,434 crore for the January–March quarter (Q4FY24), up 6% from ₹21,143 crore a year ago and well above the ₹18,471.4 crore consensus estimate of analysts polled by Bloomberg.
While the company’s core oil-to-chemicals (O2C) segment faced headwinds, growth in its retail and telecom businesses drove overall earnings higher.
Retail and telecom arms deliver strong performance
The performance of Reliance’s consumer-facing segments was a key highlight of the quarter.
Retail revenue and EBITDA grew 16% year-on-year, providing a strong boost to the consolidated results.
Jio, the company’s telecom arm, continued to contribute significantly to the group’s earnings before interest and tax (EBIT), further stabilising Reliance’s diversified portfolio.
Brokerages responded by reaffirming their positive stance on the stock.
According to LSEG data, the average rating from 32 brokerages remains a “Buy,” with the median target price at ₹1,550, reflecting continued confidence in Reliance’s long-term growth story.
Japanese brokerage Nomura reiterated its “Buy” rating on Reliance Industries and raised its target price to ₹1,650, citing robust performance across segments.
It identified three key near-term catalysts for the stock: the expansion of the new energy business, expected tariff hikes at Jio, and the potential initial public offering or listing of Jio, which it said could unlock significant value for the company.
Valuations seen as attractive amid strong future prospects
JP Morgan maintained its “Overweight” rating with a target price of ₹1,530, citing the acceleration in retail growth as a key factor.
Morgan Stanley echoed the optimism, raising its target price to ₹1,606 and noting that Reliance exceeded operational and earnings expectations, particularly in the retail and O2C businesses.
Brokerages noted that the stock’s valuations remain favourable following a roughly 11% decline over the past 12 months, making it attractive for investors.
Domestic brokerage Nuvama Institutional Equities set the highest target price at ₹1,708, underlining that Reliance’s Q4 EBITDA of ₹48,737 crore surpassed expectations across all major segments.
Macquarie retained its “Outperform” rating with a target price of ₹1,500, stating that Jio remained a major driver of group earnings and that retail saw notable improvement in growth momentum through the fiscal year.
Emkay Global Financial Services described the Q4 results as a “steady show,” highlighting 14% year-on-year growth in retail core profit as particularly healthy.
ICICI Securities raised its target price to ₹1,470, pointing to greater clarity around petrochemical expansions, a visible recovery in retail momentum, and progress in the company’s new energy initiatives.
Systematix also raised its target to ₹1,541, expecting a stock re-rating based on advances in the solar energy business and potential value unlocking from the planned listing of Reliance’s retail and telecom businesses.
Antique Stock Broking increased its target price to ₹1,485, forecasting a stronger retail segment post-restructuring and a resilient telecom outlook.
According to LSEG data, the average rating from 32 brokerages remains a “Buy,” with the median target price at ₹1,550, reflecting continued confidence in Reliance’s long-term growth story.
When Trump got elected back into the White House in November 2024, everybody expected big spending cuts.
After all, the US has been running a budget deficit since 2001.
Some key parts of Trump’s plan was to cut unnecessary government spending, increase revenues through tariffs, and facilitate tax cuts.
The spending cuts were assigned to Elon Musk and his Department of Government Efficiency (DOGE) through an executive order, signed on the 20th of January.
Since then, DOGE has moved fast, targeting bureaucracy with mass layoffs and agency closures.
But how much has really changed?
And what comes next as Elon Musk announces that he’s distancing himself from the department?
How much has DOGE actually saved?
DOGE says it has saved the federal government $160 billion.
But that figure represents just 8% of Musk’s original $2 trillion savings goal, 16% of his revised $1 trillion target, and just 2.35% of the 2024 US Federal Budget.
Source: Investopedia
According to the DOGE website, cuts come from canceling over 8,400 contracts ($30 billion), terminating nearly 9,700 grants ($33 billion), and ending 643 leases ($311 million).
Musk’s savings wouldn’t come close to offsetting that. In contrast, reports have shown that government spending has actually increased under Trump, in comparison to Biden’s final years.
What has been cut and what’s been broken?
DOGE’s actions have gone well beyond trimming excess.
These systems are essential for identifying side effects, tracking recalls, and informing physicians.
A two-week delay in issuing a consumer safety alert about a tainted joint supplement illustrates the new communication bottlenecks under DOGE-era rules.
Several officials warn that the FDA is now flying blind on labeling, dosage, and manufacturing data.
Other examples include a $59 million FEMA payment for migrant housing in New York City hotels that was flagged and canceled.
A $15 million contraceptive program in Afghanistan was cut.
Even a $700,000 research grant into the wording of Neil Armstrong’s moon landing quote was removed.
Each of these has been promoted on Musk’s social media as proof of the war on waste.
But perhaps Musk’s team has neglected the potential blowback of miscalculated firings and cuts.
For example, cuts to the IRS are projected to reduce revenue collection by $500 billion annually, according to internal estimates.
Cuts to the FAA and other safety-related agencies have come during a wave of aviation incidents.
Agencies like OSHA and the NTSB now operate with skeleton staff, despite their importance to worker and public safety.
Who’s really running DOGE?
Elon Musk has recently announced he’s stepping back from DOGE in order to focus more on Tesla, whose shares have dropped 36% this year. This leaves DOGE at the hands of a group of business insiders.
They include Joe Gebbia, Airbnb co-founder; Steve Davis of The Boring Company; Tom Krause of Cloud Software Group; and former Morgan Stanley banker Anthony Armstrong.
The truth is that these individuals have little or no government experience.
Their private-sector backgrounds are part of what DOGE supporters say makes the effort effective.
But critics argue it’s a recipe for chaos. Many agencies have reportedly made cuts without fully understanding the functions they were dismantling.
Even conservative figures are calling for more transparency.
He also warned that programmatic cuts are not enough and has criticized Musk for failing to touch defense spending or deliver real reform.
“The math doesn’t work,” he said, referring to the current $1.3 trillion increase in the deficit this year alone.
What’s the bigger picture behind DOGE?
There are four dominant theories about what DOGE is actually doing.
None of them can be confirmed at this point but they are based on some data and facts.
The first points to a Silicon Valley movement known as “Exit,” created by thinkers like Peter Thiel and Balaji Srinivasan.
This idea envisions a future of “network states” and self-governing cities, free from traditional federal oversight.
DOGE could be clearing the ground for that by stripping away services unrelated to market infrastructure.
The second theory is techno-libertarianism, where government is viewed as an outdated constraint.
Musk has called for a “spring cleaning” of federal regulation.
He’s argued that creating more than one federal agency per year since 1776 is absurd. His vision draws comparisons to the pre-New Deal era, when industrialists operated with little oversight.
The third theory is that DOGE is a corporate power grab for Musk’s own interests. SpaceX benefits from NASA’s reduced role. Tesla gains from cuts to vehicle safety regulation.
Peter Thiel’s Palantir has landed IRS and ICE contracts for data management. DOGE has largely spared agencies that directly fund or support Musk-linked ventures.
The fourth is simple incompetence. Reports show DOGE staff are often too young, too inexperienced, or too uncoordinated to execute cuts effectively.
Examples include mistakenly firing nuclear safety regulators, then quietly rehiring them to avoid a crisis.
Much of the chaos appears unplanned.
What happens now?
Musk’s reduced role doesn’t mean DOGE is slowing down. Tesla’s CEO is planning to work just twice per week and the department’s work will continue through July 2026.
But the question is whether it will deliver some actual changes, or simply cause structural damage.
Legal scrutiny is increasing. Courts have already blocked DOGE’s access to Treasury data and halted parts of its agenda.
Unions, attorneys general, and government watchdogs are pursuing lawsuits over data handling, constitutional authority, and transparency.
Public opinion is divided. A CBS poll found broad support for DOGE among Republicans, but a Pew survey in February found that 54% of Americans view Musk unfavorably, with 37% holding a “very unfavorable” view.
Addtiionally, Tesla has faced boycotts, and vandalism against its vehicles has spiked recently.
Consulting revenues are down, and executives warn that further cost-cutting could drag down economic activity in government-exposed sectors.
Now, what remains is a fragile experiment that has already disrupted the fabric of government, without proving it can improve it. But there are still 14 months left to get the full and final picture.
Coinbase stock price has bounced back in the past few weeks, helped by the strong performance of the crypto and stock markets. COIN shares soared to $210, the highest level since March 7, and 48% above the lowest level this month. This article explores whether the stock will keep rising ahead of its earnings.
Why Coinbase stock has rallied
Coinbase, the largest crypto exchange in the United States, has experienced a surge in recent weeks due to the strong performance of cryptocurrency prices.
Bitcoin price soared to the important resistance level of $96,000 for the first time since February. It was a strong comeback for a coin whose price bottomed below $74,000 earlier this month.
Bitcoin’s recovery has led to more gains among other cryptocurrencies. Ethereum price jumped to $1,800, up by 30% from its lowest level this month. Similarly, Solana meme coins surged, with their market cap increasing from $6 billion earlier this month to over $10 billion.
The total market cap of all cryptocurrencies has jumped to over $3 trillion recently. Coinbase stock does well when Bitcoin and other altcoins are in a strong bull run since this usually leads to high volume.
Coinbase stock has surged as part of the broader market recovery. The top indices, such as the Dow Jones, Nasdaq 100, and S&P 500, have all jumped recently after the market’s mood showed significant improvement.
This occurred after Trump expressed openness to a deal between the US and China. Scott Bessent, the Treasury Secretary, has hinted that the two countries will ultimately make a deal as he described the current situation as highly unsustainable. Trump also ruled out firing Jerome Powell, the head of the Federal Reserve.
Coinbase share price has also jumped after the change in leadership at the Securities and Exchange Commission (SEC). Paul Atkins, the new SEC Chair is widely seen as being pro-crypto. The agency recently ended a long-running case against Coinbase, removing one key challenge.
Furthermore, Base, the layer-2 network launched by Coinbase in 2023, is performing well as volume on the network increases. DeFi Llama data shows that the volume handled by the network has jumped sharply in the past few days. It has handled over $46 billion in the last 30 days, making it the fourth-biggest chain after Solana, Ethereum, and BSC Chain.
COIN earnings ahead
The next key catalyst for the Coinbase stock price is the upcoming earnings on May 8. These numbers will provide more information about its performance in the first quarter when Bitcoin and most altcoins retreated.
Wall Street analysts expect the company’s revenue to increase to $2.16 billion, a 32% rise from the same quarter in 2024. The most optimistic analyst sees the figure rising to $2.60 billion.
Analysts also expect the forward revenue guidance for the year to be $7.92 billion, a 20% increase from last year’s $6.5 billion.
The challenge, however, is that predicting Coinbase earnings is difficult because its performance depends on the crypto market.
The daily chart shows that the COIN share price bottomed at $146.65 this month as most cryptocurrencies and stocks were tanking. This was an important level since it was the lowest swing on September 6.
COIN shares have surged above the 25-day and 50-day moving average, a bullish sign in technical analysis.
However, the risk is that it has formed an inverse cup and handle pattern whose lower side is at $146.65. The ongoing rebound is part of the handle section. Therefore, while the recovery is a good thing, there is a risk that it may resume the downtrend in the coming weeks.
If this happens, the next level to watch will be at $146.65, the lower side of the pattern. A break above the resistance at $220 will invalidate the bearish outlook.
Rolls-Royce share price has bounced back after crumbling to a multi-month low earlier this month. It jumped to $750 on Friday, up 35% from the lowest level this month, and is now hovering a few points below the all-time high at $ 817p. This article explores whether it is safe to buy the RR stock price ahead of May 1, when it will have its annual general meeting and trading statement.
Rolls-Royce annual general meeting and trading statement
Rolls-Rolls Holdings will be one of the top FTSE 100 shares to watch this week as the company conducts its AGM and issues its trading statement.
These events will come at a time when shareholders are cheering the company’s turnaround and performance under Tufan Erginbilgic, who became the CEO in January 2023.
The Rolls-Royce share price has jumped by over 800% during his term, making it the best-performing FTSE 100 stock.
This stock has jumped because of the recovery of the civil aviation industry, which has led to more orders for its engines. Other aircraft engine manufacturers like General Electric Aviation, Safran, and Pratt & Whitney, which RTX owns, have done well.
Rolls-Royce Holdings has also benefited from the growth of artificial intelligence (AI) as its power division provides useful solutions in the industry. It is providing backup and other power needs to companies powering data center solutions around the world.
Further, the company benefited from the rising geopolitical tensions following Russia’s invasion of Ukraine in 2022. That war has led to a surge in demand for military equipment, some of which Rolls-Royce Holdings provides. This demand could keep rising now that many European countries are boosting their budgets.
Tufan Erginbilgic has also led to more changes to its operations. It exited the ambitious plan to build electric-powered aircraft engines, and has sold some of the top non-core businesses in its operations.
He also announced job cuts and an ambitious mid-term target that the company reached ahead of schedule. Therefore, this AGM will likely be a good one as the stock now sits near its all-time high.
In addition to the AGM, Rolls-Royce Holdings will also deliver its first-quarter trading statement that will provide more color about its business.
While its performance is expected to be good, the management will likely talk about the impact of Donald Trump’s tariffs on its business. These tariffs will likely lead to increased costs, especially in the US, where Trump has implemented a 25% tariff on all imported steel and aluminum.
The ongoing trade war may also lead to supply chain issues that may affect its revenue and profitability growth.
The most recent results showed that Rolls-Royce Holdings continued thriving in 2024. Its underlying annual revenue jumped to £17.8 billion, while the statutory figure soared to £18.9 billion.
Rolls-Royce also boosted its profitability, which increased to £2.29 billion, up from £1.26 billion the previous year. The free cash flow rose from £1.28 billion to £2.45 billion.
The daily chart reveals that the RR stock price has done well in the past few months. After initially dropping to a low of 557p earlier this month, the stock bounced back to the current 755p. It has now surpassed the 50-day and 25-day Exponential Moving Averages (EMAs).
The Relative Strength Index (RSI) and the MACD indicators have all pointed upwards, a sign that it is gaining momentum. It has also moved slightly above the ultimate resistance of the Murrey Math Lines tool.
Therefore, the stock will likely continue rising now that trade tensions have cooled. If this happens, the next level to watch will be at the all-time high at 811p, which coincides with the extreme overshoot level.
The USD/JPY exchange rate rebounded last week as the US Dollar Index (DXY) recovered from its lowest level of the year. The pair rose from a low of 139.95 on Monday to a high of 143.2, up by 2.7% from its lowest level this year. This article provides a forecast ahead of the upcoming BoJ interest rate decision and key US economic data.
BoJ interest rate decision ahead
The main catalyst for the USD/JPY pair this week will be the Bank of Japan interest rate decision scheduled on Friday.
This will be an important meeting as the BoJ will provide more color on the economy and hints on what to expect later this year.
While Japan’s inflation is rising, analysts anticipate that the bank will maintain status quo as as ot observes the impact of Donald Trump’s tariffs.
Data released last Friday showed that consumer prices in Tokyo jumped from 2.9% in March to 3.5% this month. Core inflation, which excludes the volatile food and energy products, rose from 2.4% to 3.4%.
Tokyo inflation is closely monitored due to its large population, which stood at over 37 million as of 2024. Its population accounts for most of Japan, which has over 122.6 million people.
Another rate hike would likely harm Japan’s economy, as it would affect companies that are already struggling due to Trump’s tariffs.
Japan’s bond market is reflecting the fact that the BoJ will leave interest rates unchanged in this meeting. The ten-year bond yield has jumped to 1.3% from the year-to-date low of 1.057%, while the thirty-year yield has jumped from 2.20% to 2.7%.
Still, the BoJ will likely resume its rate hikes late this year. Additionally, there are indications that the US and Japan will reach a trade agreement later this year. In a recent note, analysts at Citi said:
“Pre-tariffs, maybe the sun was starting to shine a little more brightly in Tokyo. But when the reciprocal tariffs were put on, and the auto tariffs, which obviously are big too, we said no rate hikes this year.”
The USD/JPY exchange rate will react to the upcoming US data dump this week. This dump will start on Tuesday when the Conference Board will publish the latest consumer confidence data. This is important data that predicts consumer spending in the economy. A significant drop can help to predict a recession.
The other top data to watch will come out on Wednesday when the US will release the latest personal consumer expenditure (PCE) data. This is a crucial report that the Fed watches closely because it measures change of prices in the rural and urban areas.
The USD/JPY exchange rate is expected to react to the latest US GDP and non-farm payrolls (NFP) data released on Friday. All these numbers will help to predict whether the Fed will cut or hike interest rates.
The daily chart shows that the USD to JPY exchange rate has been in a strong downtrend in the past few months. This decline coincided with the significant US dollar indexplunge.
The pair has formed an inverse cup and handle pattern whose lower side is at 139.98. Its recent pullback is part of the handle section.
It also formed a death cross pattern on March 12, a sign that bears are in control. Therefore, a combination of the death cross and the inverse C&H pattern will point to more downside in the coming weeks. If this happens, the next point to watch will be at 139.98. A drop below that level will point to more downside.
The financial market has been highly volatile this year as concerns about Donald Trump’s tariffs and fears that the US bubble was bursting rose. Gold price has surged to a record high, while the top three US indices like the Dow Jones, Nasdaq 100, and S&P 500 are in the red.
European equities have trounced their American rivals this year, with the Euro Stoxx 50 Index has jumped by 14%. This article examines where to invest $10,000 today for superior returns over the next few years.
Bitcoin and BTC ETFs
The first key area to invest and generate superior returns in the next few years is in the crypto market. While the Bitcoin price has dropped by 13% from its January high, it has performed better than stocks following the Liberation Day tariffs. Furthermore, spot Bitcoin ETFs experienced net inflows of over $3 billion last week, indicating that the cryptocurrency is becoming a safe-haven asset.
Furthermore, Bitcoin has a strong track record of outperforming the stock market. Besides, it has jumped from less than $1 in 2009 to $94,000 today. These gains have not been linear and the coin has experienced substantial drawdowns in this period. For example, it tumbled by over 33% from its highest point in March to its lowest level in August last year and then bounced back.
Analysts are bullish on Bitcoin. Just last week, Ark Invest predicted that Bitcoin price will surge to $2.4 million by 2030. That would be a 2,426% surge from the current level,
The most cost-effective and straightforward way to invest in Bitcoin is to purchase it directly from an exchange like Coinbase or Kraken. Still, when considering spot Bitcoin ETFs, the Grayscale Mini Bitcoin ETF (BTC) is the best one to invest in as it has a low expense ratio of 0.25%.
China EV companies
Last week, Tesla reported weak financial results. The numbers showed that its total sales dropped by 9% to $21.3 billion last quarter. Its adjusted EBITDA fell by 17% to $3.3 billion, while its net income plunged by 71%.
These numbers showed that the company’s business was struggling as its deliveries in the United States, Europe, and China dived.
Therefore, one area to invest $ 1,000 right now is in Chinese electric vehicle companies, as these firms are experiencing more growth this year. This includes companies like Nio, Li Auto, BYD, and XPeng.
For example, Li Auto delivered 92,864 vehicles in the first quarter, representing a 15% annual growth. XPeng, a company that is also building flying cars, delivered 94,000 vehicles, a 330% annual increase.
Nio delivered 42,094 vehicles in the first quarter, up by 40% from a year earlier. Other firms like BYD and Zeekr have also boosted their sales.
China EVs are more innovative than their American counterparts. For example, BYD and CATL have just unveiled batteries that can charge in less than 5 minutes.
Nasdaq 100 index
The other contrarian area to invest $10,000 this year is in technology companies, especially through the Invesco QQQ (QQQ) ETF, which tracks the Nasdaq 100 index.
This is a contrarian call since the index remains in a correction after falling by over 10% from the highest level this year. There are also concerns that the artificial intelligence bubble has burst this year.
However, history shows that the Nasdaq 100 index typically rebounds whenever it enters a correction. It recovered from the dot-com bubble, the COVID-19 pandemic, and the Global Financial Crisis (GFC) dip.
The index is expected to rebound due to upcoming trade talks between the US and other countries, as well as potential Federal Reserve interest rate cuts.
This recovery will also boost other American indices like the S&P 500 and the Dow Jones. It also makes investing in the JEPQ ETF worthwhile, as it tracks the Nasdaq 100 index and offers superior returns.
Spotify stock price has done well over time, and is nearing its all-time high as investors wait for its financial results on Tuesday. SPOT, the market leader in music streaming, jumped to a high of $620 on Friday, its highest level since February 20, and a few points below its all-time high of $652. This article explores whether the Spotify share price has more upside going forward.
Spotify to hike prices in key markets
The Spotify stock price jumped on Friday after the Financial Times reported that the company was considering raising prices for its subscriptions as it focuses on profitability.
The paper noted that prices will rose by about $1 or 1 euro in international markets, excluding the United States, its biggest market.
Spotify has already started hiking prices in countries like Luxembourg and the Netherlands. Most price increases will happen in the summer months.
These price increases are in line with what most music executives have been calling in the past few years. They have argued that streaming companies like Spotify and Apple Music should do more to hike their prices.
The argument is that these streaming solutions are still cheaper than companies like Netflix and MAX. Also, they argue that these companies’ prices increases have been slower than inflation. For example, Spotify launched in the US with a price of $9.9 in 2011, an amount that stands at $11.99. In this period, US inflation has jumped by over 43%.
Spotify is also considering creating a top tier in the US that will cost $6 extra of its most advanced tier.
The company hopes that these price increases will help it to boost its revenues and profits over time. Even a $1 dollar increase can lead to substantially higher numbers since it has over 252 million users globally.
The company is betting that these price increases will not lead to subscriber losses. That’s because other companies like Tidal and Apple Music will react to these prices by rising theirs. Also, it is highly unlikely that many Spotify users will opt for other solutions since they see its services as being superior.
The next important catalyst for the Spotify stock price is its upcoming corporate earnings scheduled on Tuesday.
The most recent numbers showed that the company had over 675 million monthly active users, a 12% increase from the same period last year. Its premium subscribers jumped by 11% to 263 million.
These numbers pushed its quarterly subscription revenues up to €3.7 billion and its ad-supported figure to €537 million. This brought its total revenue up to €4.2 billion, and operation margin to 11.2%.
Wall Street analysts expect Spotify’s earnings to show that its sales rose by 15.5% in the quarter to €4.2 billion. Its guidance for the current quarter will be €4.37 billion, while the annual forecast will be €18 billion, a 15% annual increase.
A key risk that could impact Spotify’s earnings is the euro, which has strengthened against the US dollar. A stronger greenback impacts its earnings, as it generates most of its revenue in the United States.
The eight-hour chart shows that the SPOT share price has bounced back after bottoming at $484 earlier this month. It has risen to $620, its highest level since January.
Spotify stock price has formed a W chart pattern, commonly known as a double-bottom. This is a popular bullish reversal sign in technical analysis. It is now moving above the neckline at $625, the highest point on March 24.
The stock has moved above the 50-day moving average, a sign that bulls are in control. Therefore, the most likely scenario is where it rallies and hits its all-time high at $652 after earnings.
