A new regulation aimed at lowering credit card late fees from $32 to $8 faces a legal challenge. The US Chamber of Commerce has sued to prevent its implementation, which could save Americans billions in fees. The industry argues the rule is unfair and would harm responsible borrowers. A federal judge in Texas is expected to decide soon whether to grant an injunction to delay the regulation.
European businesses in China are facing challenges due to slower growth and overcapacity issues. Their profit margins have decreased since 2016, and payment delays have become common. While Beijing has made efforts to attract foreign investment through measures like visa-free policies, concerns remain over regulatory barriers and intensifying competition. A record number of companies are skeptical about their growth potential and plan to cut costs. The lack of predictability in the regulatory environment continues to be a major issue.
Robinhood, a popular online brokerage, recently reported better-than-expected financial results for the first quarter. Earnings per share and revenue set new records, driven by growth in cryptocurrency transactions and an increase in funded customers. Despite ongoing regulatory scrutiny related to its crypto business, shares of Robinhood rose in after-hours trading.
Airbnb's disappointing guidance led to an 8% drop, while Robinhood's beat estimates and surged 6%. Klaviyo's strong revenue outlook caused a 7% rise. Arm Holdings fell 6% on lower-than-expected guidance, while Equinix gained 11% on strong earnings. AppLovin's impressive earnings pushed it up 10%, and SolarEdge declined nearly 7% due to a wider loss and weak revenue guidance.
In a surprising move, BBVA, a Spanish bank, launched a hostile takeover bid for its rival, Banco Sabadell, after Sabadell rejected BBVA's previous offer. Experts describe the situation as unusual in the European banking sector, where such aggressive takeovers are rare. The takeover bid faces opposition from the Spanish government, which believes it could negatively impact the financial system. Despite the challenges, the offer from BBVA has been met with interest from shareholders due to its premium pricing.
Bank of England Governor Andrew Bailey is scheduled to hold a press conference at 7:30 a.m. ET, where he will discuss the bank's recent decision on monetary policy.
