Global Markets React to Trump's Policy Shifts, EU Fines Big Tech

Market Volatility and Trump Administration Policies

• 📉 Global markets are mixed as investors react to President Trump's policy U-turns, particularly concerning tariffs and Federal Reserve leadership.
• 📈 US stocks rose yesterday after Treasury Secretary Scott Bessant stated that high tariffs between the US and China were unsustainable.
• 🚗 Reports suggest the president is planning to exempt car manufacturers from certain tariffs, adding to market uncertainty.
• 💰 The US dollar has recovered from a three-and-a-half-year low against the euro but is easing today, highly sensitive to trade headlines.

Company Performance and Outlook

• ☁️ Google parent Alphabet is expected to report a rise in first-quarter revenue, driven by its cloud services and advertising business.
• 💡 Investors are keenly awaiting Alphabet's commentary on tariffs, its AI ambitions, and the state of the US advertising market.
• 📉 IBM shares fell 6% in after-hours trading after the company announced that 15 government contracts worth approximately $100 million were canceled by the cost-cutting Trump administration.

EU Antitrust Fines on Big Tech

• ⚖️ Apple and Meta have been fined a combined €700 million by the EU antitrust regulator.
• 🍎 Apple accounts for €500 million of the total fines.
• 🚫 These fines are the first under new legislation targeting the power of big tech companies.
• 🗣️ Despite being modest by previous standards, the White House has labeled these fines as "economic extortion."