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Bloomberg

Tech Slump Deepens

Technology stocks closed out a volatile week sharply lower as investors reassessed the sustainability of the AI trade, with concerns over rising semiconductor costs, memory pricing and capital spending. Bloomberg Intelligence Global Head of Technology Research Mandeep Singh and Bloomberg News Macro Strategist Cameron Crise also explain to hosts of Bloomberg This Weekend David Gura and Christina Ruffini the evolving US restrictions on advanced AI models, the cooling IPO market, and questions over whether AI companies can generate enough revenue to justify soaring valuations amid rising costs.

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Bloomberg

Why Krugman Thinks We Need Chinese Auto Tariffs

As the United States, Canada, and Mexico prepare to renegotiate the USMCA trade deal, one industry sits squarely at the center of the debate: automobiles. Companies like Linamar depend on highly integrated supply chains that send components across borders multiple times before a vehicle is completed. Nobel laureate Paul Krugman argues that competition from China demands some trade barriers, while Council on Foreign Relations expert Shannon O'Neil says the region's manufacturing strength depends on cross-border production. Supporters of the agreement warn that uncertainty poses the biggest risk to investment, jobs, and the future of a trade relationship that supports over a trillion dollars in annual commerce.

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How escalating artificial intelligence hardware demand is rewriting memory chip valuations

  • Micron Technology reported $41.46 billion in quarterly revenue as the firm capitalized on surging data center component demand.
  • The semiconductor manufacturer recorded a GAAP net income of $28.24 billion and declared a quarterly dividend of $0.15 per share.
  • Global hardware manufacturers must carefully secure raw materials to execute aggressive revenue projections amid volatile enterprise capital expenditures.
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How global delivery networks are quietly sacrificing scale to protect operational margins

  • FedEx reported $25 billion in fourth-quarter fiscal 2026 revenue while executing a spin-off of its freight division to consolidate core operations.
  • The logistics provider exceeded cost-cutting targets by securing over $1 billion in structural savings and achieving an adjusted earnings per share of $6.60.
  • Global transportation firms face mounting pressure to offset mixed profitability trends by heavily reducing capital spending and divesting secondary business units.
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Why dominant pharmaceutical firms are paying billion-dollar premiums for immunology assets

  • AbbVie agreed to acquire Apogee Therapeutics in a $10.9 billion all-cash transaction, paying a 60% premium to secure a late-stage immunology pipeline.
  • The company will pay $135.11 per share, with executives projecting the deal will not become accretive to adjusted earnings until 2032.
  • Large pharmaceutical manufacturers face intense capital pressure to acquire unproven, long-acting biologics to offset impending revenue losses from patent expirations.
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WiseTech shares plunge amid federal fraud investigation

  • Federal authorities are investigating WiseTech Global (ASX:WTC) executive chairman Richard White over visa fraud and human trafficking allegations.
  • The ongoing controversy triggered a sharp market sell-off, pulling the WiseTech share price down to $36.88.
  • Institutional investors are reassessing sector governance and operational risk amid wider software industry headwinds.
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Bloomberg

Coffee Company Kahawa 1893 Works to Empower Women Farmers

Margaret Nyambumo, founder of coffee company Kahawa 1893 and third-generation coffee farmer, said that she created the option to directly tip the female farmers who grow her coffee beans because she wanted to find a way to consistently and fairly compensate them regardless of fluctuation in coffee prices. Nyambumo said that the tips from customers which are matched by the company have been used by one of the farming collectives to start a scholarship for young girls to stay in school.

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