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🇬🇧☕️ Crumpets And Tea And Tariffs

+ Coinbase Posts Mixed Earnings Alongside The Biggest Crypto Acquisition

May 08, 2025

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Good afternoon! Disney is bringing the magic to the Middle East, announcing plans to open a massive new theme park resort on Abu Dhabi’s Yas Island. Partnering with immersive destination company Miral, the project will be the seventh Disney resort globally and the first in the region, with Imagineers leading creative development.

Set on a bustling entertainment island already home to SeaWorld and Warner Bros. World, the new Disneyland will blend Emirati culture with classic Disney storytelling. With Abu Dhabi investing over $10 billion in tourism infrastructure and millions of visitors flowing through the UAE each year, Disney is betting big on this crossroads of the world.

MARKETS

  • US stocks rallied Thursday as President Trump unveiled a trade deal with the UK and hinted at softer tariffs on China. The S&P 500 and Dow both climbed 0.6%, while the Nasdaq notched a 1.1% gain as investors grew hopeful that global trade tensions may finally be easing.

  • Though the rally lost steam in the final stretch, markets closed in the green for the second straight day. A risk-on mood pushed gold prices down, as investors shifted toward equities and bet that the worst of the trade war volatility may be behind them.

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STOCKS
Winners & Losers

What’s up 📈

  • AppLovin surged 11.88% after beating Q1 estimates and announcing the $400M sale of its gaming business. ($APP)

  • Axon Enterprise climbed 14.13% after reporting strong earnings and raising revenue guidance. ($AXON)

  • Carvana gained 10.17% after posting better-than-expected first-quarter results. ($CVNA)

  • Crocs jumped 9.82% on a strong earnings report, despite withdrawing full-year guidance. ($CROX)

  • IonQ rose 9.27% after posting solid financials, bucking the trend in the quantum computing space. ($IONQ)

  • Warner Bros. Discovery popped 5.26% after reports that it may separate its linear networks from cable. ($WBD)

  • MercadoLibre added 6.54% after posting Q1 earnings of $9.74 per share on $5.94B revenue, both topping estimates. ($MELI)

  • Boeing climbed 3.31% after being named a beneficiary of a new US/UK trade agreement. ($BA)

  • Crypto stocks boomed alongside a crypto market rally MicroStrategy rose 5.58% ($MSTR), Coinbase climbed 5.06% ($COIN), Riot Platforms gained 7.65%($RIOT).

What’s down 📉

  • Krispy Kreme plunged 24.71% after suspending its McDonald's deal, scrapping its dividend, and pulling guidance. ($DNUT)

  • Cleveland-Cliffs dropped 15.78% after a wide Q1 miss and a production pause across multiple facilities. ($CLF)

  • Fortinet fell 8.41% after posting weak guidance despite beating Q1 expectations. ($FTNT)

  • Peloton slid 6.73% on a steeper-than-expected quarterly loss and declining revenue. ($PTON)

  • Arm Holdings declined 6.18% after guiding below expectations for the current quarter. ($ARM)

  • Eli Lilly dropped 3.25% on concerns over Medicare price control plans. ($LLY)

TRADE
U.S. and U.K. Unveil Framework for Trade Deal, First Since ‘Reciprocal’ Tariff Pause

The U.S. and U.K. unveiled a shiny new trade agreement Thursday—but don’t let the press conference vibes fool you. Despite all the back-patting between President Trump and Prime Minister Keir Starmer (who joined in via speakerphone), the deal is more symbolic than seismic.

Here’s the gist: The U.S. will maintain a 10% baseline tariff on British goods, while the U.K. will open its doors a little wider for American beef, ethanol, and machinery. British automakers will get to export 100,000 vehicles annually under the lower 10% tariff instead of the previous 27.5%, but anything above that gets slammed with a 25% rate. Rolls-Royce engines? Those will cruise in tariff-free, as part of a $10 billion Boeing plane order from Britain.

A Deal... Kinda

If it all sounds a bit half-baked, that’s because it is. No formal signing took place, and the two countries appear to disagree on key details—like whether steel and aluminum tariffs are ending or just being talked about. Trump says it’s “very conclusive,” while the U.K. says negotiations are ongoing.

Still, the agreement does throw a bone to U.S. agriculture and aerospace. Commerce Secretary Howard Lutnick estimated it opens $5 billion in new export opportunities. Meanwhile, Silicon Valley tech giants got snubbed—Britain’s 2% digital services tax on U.S. companies like Amazon and Google will stick around.

Optics Over Output

The U.K. makes up only 3% of U.S. trade, so the economic impact of this deal is minor. But it’s still a win for the cameras—a tidy diplomatic moment that lets both sides smile, shake hands, and claim progress without moving the macro needle.

Investors didn’t mind the fuzziness. Stocks rose during Trump’s announcement, and the President declared, “You better go out and buy stock now.” Whether that confidence holds when the details get inked is anyone’s guess. But for now, it’s tea, tariffs, and transatlantic optimism.

NEWS
Market Movements

EARNINGS
Coinbase Posts Mixed Earnings Alongside The Biggest Crypto Acquisition

Revenue is up, profits are down, and a $2.9B deal just shook the blockchain.

Coinbase had a busy quarter—and a confusing one. The crypto exchange reported $2 billion in Q1 revenue, up 24% from last year, but net income tumbled 94% to just $66 million. Why? The company had to mark down its crypto holdings as Bitcoin wobbled, and trading volumes pulled back after the Trump-fueled rally in late 2024 fizzled out.

Shares slipped ~2% after hours, even after a 5% gain earlier in the day when Bitcoin briefly soared past $100K.

Making Moves in a Shaky Market

Coinbase isn’t sitting still. It’s dropping $2.9 billion to acquire Deribit, the world’s largest exchange for Bitcoin and Ether options. That deal—crypto’s biggest ever—throws Coinbase deep into the derivatives arena, a $1.2 trillion playground that’s booming with institutional traders. The company is also testing a stablecoin payment system for businesses and saw USDC revenues jump 32% last quarter.

But while subscription and services revenue came in hot at $698 million, consumer and institutional trading volume both fell double digits quarter-over-quarter. Add in tariff-fueled crypto volatility, and you’ve got a recipe for investor hesitation.

A Crypto Empire in the Making? Coinbase says it's “gaining share” and “driving utility” as it diversifies beyond trading, pushing into staking, payments, and now options. CEO Brian Armstrong’s bet: build an end-to-end crypto ecosystem before the next bull run kicks off for real.

For now, the numbers are mixed. But if the Deribit bet pays off and crypto regains some steam, Coinbase may start resembling the backbone of digital finance—rather than just another trading app.

Calendar
On The Horizon

Tomorrow

Don’t expect any blockbuster numbers tomorrow—there are zero economic reports hitting the tape. Instead, it’s a full-on Fed chatter fest, with a lineup of central bank officials scheduled to speak throughout the day. With this week’s rate decision still fresh, you can bet they’ll be defending the pause, dodging recession talk, and hinting at what might—or might not—happen come June.

Corporate earnings also take a breather heading into Friday. After a week packed with market-moving reports, few companies are brave enough to face Wall Street’s hot seat as traders mentally clock out for the weekend. It’s a calm end to an otherwise busy stretch.

NEWS
The Daily Rundown

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