Month: July 2025

President Donald Trump has reignited trade tensions on the global stage by threatening sweeping 30% tariffs on imports from the European Union and Mexico, effective August 1, unless both parties agree to revised trade terms with the United States.

Trump issued the ultimatum in a pair of public letters over the weekend, emphasizing his dissatisfaction with current trade imbalances and warning that failure to eliminate tariffs, non-tariff barriers, and market restrictions would lead to punitive duties.

Trade Shock for the EU

Trump’s announcement derailed what EU officials had hoped was a final stretch toward compromise. European Commission President Ursula von der Leyen responded with sharp criticism, calling the threat damaging to both sides and vowing to take “all necessary steps” — including countermeasures — to protect the bloc’s economic interests.

The tariff saga follows months of back-and-forth negotiations. Trump first proposed a 20% EU tariff in April, later lowered it to 10% during a 90-day truce, then raised the possibility of 50% duties before settling on the current 30% threat. The EU’s 27 ambassadors are scheduled to meet to coordinate a unified response.

Mexico Also in the Crosshairs

Trump also sent a stern letter to Mexican President Claudia Sheinbaum, crediting Mexico for helping with border control but stating that it wasn’t enough. He tied the tariffs to Mexico’s ability to combat drug cartels and stop fentanyl smuggling into the U.S.

While USMCA-compliant goods are expected to remain exempt, the 30% tariff would still apply broadly — raising concerns in industries like auto manufacturing that rely on cross-border supply chains.

Mexican Economy Minister Marcelo Ebrard labeled the move “unjust,” but confirmed that a new binational working group has been launched to seek alternative solutions before the August deadline.

Global Implications and Investor Caution

The trade announcement has rattled global markets, particularly given Trump’s broader list of targets. In recent days, similar warnings have been directed at Japan, South Korea, Indonesia, South Africa, and others.

While Trump claims flexibility — hinting that better behavior may earn nations more favorable terms — the uncertainty is roiling investor confidence and complicating global supply chains.

Chinese AI startup MiniMax has announced the release of its latest large language model, MiniMax-M1, setting a bold challenge to leading competitors — including China’s own DeepSeek. The Shanghai-based company claims the M1 model not only surpasses DeepSeek R1-0528 in several reasoning benchmarks but also achieves that performance with significantly less computing demand.

Performance Highlights

According to MiniMax, the M1 model supports a context length of one million tokens, a substantial leap over DeepSeek’s R1, which supports just 128,000. Context length — the amount of data the model can process simultaneously — is a critical metric in determining an AI’s ability to reason over large bodies of information.

M1 also reportedly uses only 30% of the computing resources required by DeepSeek under comparable circumstances, offering efficiency as well as scale. The company emphasized that these results were achieved using large-scale reinforcement learning across 512 Nvidia H800 GPUs, with total compute rental valued at $534,700.

“M1 is designed for productivity and complex reasoning. It’s the most efficient closed-source Chinese LLM today,” MiniMax stated.

While Bloomberg has not independently verified the results, the release is already stirring conversations within China’s fast-evolving AI landscape.

Backed by Tech Giants

MiniMax is part of the so-called “Little Dragons” — a group of elite Chinese AI startups that includes some of the most well-funded players in the space. Backed by internet giants Tencent Holdings Ltd. and Alibaba Group Holding Ltd., the startup has raised billions over the last year. These companies have been racing to develop models competitive with OpenAI, Google DeepMind, and other global leaders.

However, the rapid ascent of DeepSeek last year shifted strategic priorities across the AI sector in China. Several of the Little Dragons were forced to pivot away from fundamental research to focus on applications. MiniMax’s latest announcement signals a return to core innovation and model development.

Applications and Next Steps

MiniMax’s current product lineup includes a video generation platform and an AI companion app, with the M1 model expected to power new and upcoming offerings. The company stated that more technical details and capabilities will be released in the coming days.

Why It Matters

The release of M1 reflects a growing ambition among Chinese firms to compete globally on AI reasoning and efficiency, beyond chat applications or text summarization. If MiniMax’s claims are substantiated, the M1 model could set a new benchmark for what’s possible in domestic AI — and challenge the current dominance of DeepSeek in the Chinese market.

As the AI race intensifies in both China and globally, MiniMax’s M1 could mark a turning point, both in innovation and in the balance of AI power in the East.

Applied Intuition Inc., a leading force in AI-powered transportation systems, has raised $600 million in a fresh funding round, more than doubling its valuation to $15 billion. The company, known for its cutting-edge autonomous vehicle software and simulation platforms, is now positioning itself for a near-term initial public offering (IPO).

The raise was co-led by BlackRock-managed funds and Kleiner Perkins, with participation from an impressive lineup of global investors including Franklin Templeton, Qatar Investment Authority, Lux Capital, BOND, and General Catalyst. This marks a substantial leap from its previous valuation of $6 billion just a year ago.

From Cars to Drones: The Vision for “Every Moving Machine”

Founded in 2017 by Qasar Younis and Peter Ludwig, Applied Intuition has quickly emerged as a category-defining company in autonomous systems. The company is already integrated into the dashboards of vehicles from major automakers such as Volkswagen AG and Toyota Motor Corp, working with 18 of the world’s largest automotive firms to improve driving safety through real-time simulation, testing, and software tools.

With the new funds, CEO Qasar Younis stated that the company aims to expand beyond automobiles, focusing on “every moving machine” — a category that includes trucks, drones, defense systems, and even factory robotics. This push further blurs the line between consumer mobility and industrial autonomy.

“It’s not random that our name is Applied Intuition. The initials ‘A.I.’ say it all,” — Qasar Younis

Defense Tech and Strategic Acquisitions

Applied Intuition has also made bold moves in national security. Earlier this year, the company acquired EpiSys Science Inc., a startup focused on AI solutions for defense. It has secured multi-million dollar contracts with the U.S. Department of Defense, using its tech to help coordinate autonomous drone fleets and other mission-critical systems.

The funding round includes a secondary offering, giving early investors and insiders partial liquidity while allowing the company to fuel further acquisitions and deepen R&D.

IPO on the Horizon

With hundreds of millions in revenue, Applied Intuition is one of the few private AI startups with a mature enough financial profile to seriously consider going public. In an interview, Younis confirmed that an IPO is likely the next step, contingent on favorable market conditions.

“This is probably the last round we’ll raise before we go public,” Younis said.

Investors are bullish on the company’s trajectory. Mamoon Hamid, Partner at Kleiner Perkins, emphasized the high entry barriers in autonomous mobility and the critical importance of safety.

“You can’t screw up cars. Applied Intuition is one of the rare AI companies with deep product-market fit and commercial scale.”

What’s Next for Applied Intuition

With its combination of robust customer base, proven revenue generation, deep government ties, and expansion into new categories like robotics and industrial automation, Applied Intuition is not just riding the AI wave — it’s helping shape its direction.

As the company edges toward IPO readiness, it’s clear that Applied Intuition isn’t just a startup anymore. It’s becoming a platform company for autonomous intelligence, setting the stage for what mobility — and autonomy — could look like across every industry it touches.

Just six months into 2025, the global investment landscape has been upended. Wall Street’s early predictions have faltered amid a mix of global conflicts and policy shocks stemming from President Donald Trump’s administration. The result? A surprising realignment of global asset classes, market winners, and investor behavior.

From the unexpected fall of the US dollar to the historic surge of European equities and the comeback of emerging markets, traders are rapidly rethinking long-held assumptions about risk, growth, and global economic leadership.

The US Dollar: A Flagging Symbol of Strength

Entering 2025, the consensus was clear: Trump’s low-tax, high-tariff strategy would fuel inflation, tighten monetary policy, and buoy the dollar. Instead, the greenback recorded its worst first-half performance since at least 2005, with a Bloomberg currency gauge tumbling and its supremacy increasingly questioned.

April’s sweeping “Liberation Day” tariffs — intended to favor domestic manufacturing — raised fears of a recession and suggested a deliberate push toward a weaker dollar. That gamble risks alienating foreign bond buyers critical to financing America’s ballooning debt.

Now, even bullish firms like JPMorgan are forecasting further weakness, with analysts projecting a 2% additional decline by year-end.

US Equities: A Rollercoaster Ride

The year began with confidence in US stocks, particularly in tech and AI. But that optimism didn’t last.

• $7 trillion in tech market cap vanished from Nasdaq 100 between February and April.
  
• Chinese AI firm DeepSeek rattled US dominance in the sector.
  
• Trump’s tariffs revived recession fears.
  

Still, a policy reversal in late April, including a partial tariff pause, reignited market momentum. The S&P 500 surged to new highs, with institutional investors rushing back. Analysts now say the US equity outlook is improving — but with more volatility than previously expected.

Asian Currencies: Yen and Yuan Defy Expectations

As anticipated, the Japanese yen rallied — gaining nearly 9% YTD — driven by interest rate hikes and a flight to safety during tariff turmoil.

China’s yuan, however, surprised. Despite predictions of depreciation due to US tariffs, the yuan rose 1.8%, aided by PBOC’s stronger reference rates. Still, economists believe the yuan will eventually weaken to support exports amid sluggish domestic growth.

Global Bonds: Short-Term Wins, Long-Term Risks

Short-dated bonds outperformed, as anticipated, benefiting from rate cuts and macro uncertainty. Long-dated bonds, however, suffered due to rising government borrowing and soaring fiscal deficits.

Investment giants like Pimco and BlackRock correctly called the divergence in yields, with demand for short-term Treasuries far outpacing long-duration debt.

Europe Emerges from the Shadows

European stocks, long overlooked, are now outperforming. The Stoxx 600 index has outpaced the S&P 500 by 16 percentage points YTD in dollar terms — the best relative performance since 2006.

Key drivers:

• Germany’s massive defense spending response to Trump’s NATO demands
  
• A stronger euro, now at $1.17
  
• More cautious tariff implementation than initially feared
  

Emerging Markets: Finally, a Breakthrough

After years of underperformance, emerging markets are surging, adding $1.8 trillion in shareholder wealth and hitting a record $29 trillion in market cap.

Why?

• Broad currency strength vs. USD
  
• An AI boom in Taiwan, South Korea, and China
  
• Waning US exceptionalism
  

Yet geopolitical risks persist. The Turkish lira collapsed in March after political unrest. Meanwhile, Ukrainian bonds slumped again after failed peace efforts and a government default.

By Cresco Capital | June, 2025

This month, the future showed up unannounced — and fast. From floating climate stations to robots running half-marathons, June 2025 delivered a wild mix of headlines that rewrote expectations across tech, AI, and mobility.

Meta’s New AI Glasses Break the Mold

Meta and Oakley teamed up to drop a $399 smartglass that’s 3K-ready, water-resistant, and tuned for athletes. With an 8-hour battery, 48-hour charging case, and sleek Ray-Ban-alternative design, Meta’s wearable AI bets just got real.

China’s AI Surge: 100+ DeepSeeks Coming

Former PBOC deputy Zhu Min stunned WEF attendees by forecasting over 100 DeepSeek-level AI breakthroughs in the next 18 months. With chip sanctions rising and growth cooling, China sees AI as the new engine for global competitiveness.

Neura Robotics Chases €1B Raise

Germany’s Neura Robotics is planning a humanoid rollout for industrial tasks — and it’s already racked up $1B in orders from giants like Omron and Kawasaki. The startup is raising up to €1B to scale production amid fierce global competition.

Uber + Waymo Go Driverless in Atlanta

Robotaxis from Waymo are now rideable via Uber across 65 square miles of Atlanta. As competitors like Lyft and Zoox ramp up, Uber’s AV strategy hinges on being the go-to commercial platform for autonomous fleets.

SoftBank’s Stratospheric Bet

New Mexico’s Sceye Inc. raised $15M from SoftBank to fund floating climate stations — 214-foot helium blimps designed to hover for months and track wildfires, greenhouse gases, and provide emergency broadband.

Meta Eyes PlayAI for Voice Cloning

After investing in Scale AI and poaching OpenAI talent, Meta is now in talks to acquire PlayAI, a startup replicating human voices with AI. It’s all part of Zuck’s push to embed natural, voice-based intelligence in smartglasses and assistants.

Noetix’s Viral Marathon Bot Moment

China’s Noetix Robotics went from struggling to booked out after its N2 bot finished second in a national half-marathon. Now it’s building 10,000 humanoids per year, raising $35M at a $200M valuation, and prepping for Hong Kong IPO.

June 2025 reminded us: if the AI revolution isn’t televised, it’s livestreamed from a drone, narrated by your cloned voice, and running a 13-mile race in Beijing.

AST SpaceMobile Inc. (NASDAQ: ASTS) is capturing the spotlight as one of the most compelling space-tech stories of 2025. With shares skyrocketing 119% in June alone and 140% year-to-date, the market is sending a clear message: investors are betting big on AST’s vision of delivering satellite-based broadband directly to smartphones — without the need for ground towers.

Russell 1000 Inclusion Fuels Rally

The surge in AST’s stock price is timed perfectly with the company’s imminent inclusion in the Russell 1000 Index following the June 28 market close. This major milestone opens the door to increased demand from passive investors, including ETFs and index funds, potentially driving further upward momentum.

AST’s stock closed at $50.84 on Friday, marking a 0.4% daily gain and hovering just shy of all-time highs. The rally marks the fourth consecutive week of double-digit gains, an unprecedented streak for the Texas-based satellite innovator.

Leader in Direct-to-Device Satellite Connectivity

As competition heats up in the race for direct-to-cell satellite services, AST is establishing itself as a market leader, ahead of private rivals like Starlink (backed by T-Mobile) and Lynk Global. According to IDC Research, the direct-to-device market is expected to grow from $554 million in 2025 to $2.7 billion by 2029, and AST is well-positioned to capitalize on that growth.

“We continue to see ASTS as the clear leader in the race,” noted B. Riley analyst Mike Crawford, highlighting the company’s rapid development and strategic partnerships.

Key Partnerships and Government Deals

A series of high-impact announcements have further fueled investor enthusiasm:

• $550M partnership with Ligado Networks, approved this week by a Delaware bankruptcy judge. The agreement grants AST access to Ligado’s mid-band spectrum — a game-changer in boosting network capacity.
  
• Strategic pact with Vodafone to deliver satellite broadband across India, one of the world’s largest mobile markets.
  
• Joint plans to launch a European satellite service alongside Vodafone, further solidifying AST’s global ambitions.
  

These deals not only validate AST’s tech but also lay the groundwork for commercial monetization and broader rollout.

Service Launch Timeline and Future Outlook

AST is targeting full seamless coverage within two years — a goal that analysts believe is fueling long-term investor confidence. The company has yet to report a profit, but the market is clearly focused on the long game.

As Crawford notes, “Government and commercial use cases are driving initial monetization, and now investors are pricing in the broader global potential.”

Final Take

AST SpaceMobile isn’t just a satellite company — it’s a potential disruptor of the entire global communications infrastructure. With major partnerships, momentum toward commercialization, and index inclusion ahead, ASTS is becoming one of the most-watched growth stories in the public markets.