Futures rise; U.S.-U.K. trade deal reports; Fed decision - what’s moving markets By Investing.com
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 08 2025
0mins
Source: Investing.com
U.S. Stock Market and Trade Agreement: U.S. stock futures have risen amid reports of an impending trade agreement between the U.S. and the U.K., while the Federal Reserve has kept interest rates steady but warned that tariffs could lead to inflation and unemployment risks.
Impact of Tariffs on Companies: Toyota has cautioned that its profits may decline significantly due to U.S. tariffs, reflecting broader concerns among businesses about the uncertainty surrounding trade policies, while oil prices have increased in anticipation of upcoming U.S.-China trade talks.
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About TM
Toyota Motor Corp is a Japan-based company mainly engaged in the automotive business, as well as financial services and other businesses. It operates through three business segments. The Automotive segment designs, manufactures, and sells automobiles, including sedans, minivans, compact cars, sport utility vehicles (SUVs), and trucks, as well as related parts and accessories. The Financial Services segment provides financing and vehicle leasing services to complement the sales of automobiles and other products manufactured by itself and its affiliates. The Other segment engages in information and communications services. It also oversees manufacturing and sales companies, conducts public relations and research activities, oversees financial companies, and develops various mobility products, primarily software.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Acquisition Tender Extended: Toyota Asset Preparatory announced the extension of its tender offer for Toyota Industries until March 2, aiming to enhance the likelihood of a successful bid, demonstrating Toyota's commitment to the acquisition.
- Offer Price Unchanged: Despite the extension, the offer price remains unchanged, which may influence investor decisions and ensure the attractiveness of the acquisition amidst ongoing negotiations.
- Positive Stock Reaction: Following the announcement, Toyota Industries' shares briefly rose to 20,000 yen from around 19,400 yen, closing up 1.2% at 19,910 yen, indicating market optimism regarding the acquisition's potential success.
- Facing Strong Opposition: The acquisition faces strong opposition from U.S. activist Elliott Investment Management, which could pose challenges to Toyota's acquisition strategy and impact its implementation plans.
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- Investor Backing: The company has garnered significant support from major investors and customers, including Toyota, Delta Air Lines, and the U.S. Air Force, which not only boosts market confidence but also lays a solid foundation for future growth.
- Acquisition Strategy: Joby's acquisition of Uber's Elevate aerial ride-hailing division in 2020 and Blade's helicopter service last year provides robust support for its future air taxi services, enhancing its operational capabilities.
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- Reliance on Informal Networks: Russian dealers are increasingly depending on informal networks to acquire vehicles, with many brand-new cars classified as 'used' to bypass manufacturer controls, indicating a strong demand for high-end vehicles in the market.
- Chinese Automotive Market Advantage: China's heavily subsidized automotive sector enables traders to profitably export surplus vehicles, leading to a growing web of intermediaries connecting Chinese factories with Russian buyers, thus creating a new trade dynamic.
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- Investment and Production: The vehicle will be assembled at Toyota's Georgetown, Kentucky plant, which is undergoing a $1.3 billion retooling to enhance battery-electric SUV production and in-house battery pack assembly capabilities.
- Battery Supply Chain: Battery modules will be supplied from Toyota Battery Manufacturing in North Carolina, a facility that has just begun producing lithium-ion packs for Toyota's electrified lineup, ensuring a reliable battery supply for the new EV.
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- Market Reaction Swift: On Polymarket, the odds of Trump being forced to refund tariffs plummeted from 39% last week to 28%, reflecting a significant drop in investor confidence regarding the success of any legal challenge and highlighting market uncertainty about future policies.
- Corporate Earnings Outlook Dims: Best Buy (NYSE:BBY) has cut its 2026 guidance, explicitly citing tariff costs as a major factor, and the diminishing possibility of refunds will directly impact its bottom line for the first half of the year, increasing financial pressure on the company.
- GM Faces Rising Costs: General Motors (NYSE:GM), while a domestic company, imports significant components from Mexico, and the continued imposition of tariffs keeps input costs elevated through Q2, adversely affecting the company's overall profitability.
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- Power and Efficiency: The new model offers power options ranging from 221 to 338 horsepower with 77.0-kWh and 95.8-kWh battery choices, with the XLE AWD version achieving a range of up to 320 miles, showcasing Toyota's innovative capabilities in electric powertrain design.
- Advanced Technology Features: Equipped with the latest Toyota Audio Multimedia system and Toyota Safety Sense 4.0, it enhances safety and entertainment experiences, improving driving convenience and security, thereby solidifying Toyota's competitive edge in the smart vehicle market.
- Comfort and Space Design: The interior focuses on comfort, accommodating up to seven passengers, featuring a 14-inch touchscreen and multiple charging options, aimed at meeting the diverse needs of modern families and enhancing the overall user experience.
See More
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- Acquisition Tender Extended: Toyota Asset Preparatory announced the extension of its tender offer for Toyota Industries until March 2, aiming to enhance the likelihood of a successful bid, demonstrating Toyota's commitment to the acquisition.
- Offer Price Unchanged: Despite the extension, the offer price remains unchanged, which may influence investor decisions and ensure the attractiveness of the acquisition amidst ongoing negotiations.
- Positive Stock Reaction: Following the announcement, Toyota Industries' shares briefly rose to 20,000 yen from around 19,400 yen, closing up 1.2% at 19,910 yen, indicating market optimism regarding the acquisition's potential success.
- Facing Strong Opposition: The acquisition faces strong opposition from U.S. activist Elliott Investment Management, which could pose challenges to Toyota's acquisition strategy and impact its implementation plans.
See More
Joby Aviation Poised for Stock Surge
- Technological Edge: Joby's S4 eVTOLs utilize tilt-rotor technology, making them faster and more energy-efficient than competitors like Archer Aviation, which could enable Joby to dominate the emerging eVTOL market and replace traditional helicopters.
- Investor Backing: The company has garnered significant support from major investors and customers, including Toyota, Delta Air Lines, and the U.S. Air Force, which not only boosts market confidence but also lays a solid foundation for future growth.
- Acquisition Strategy: Joby's acquisition of Uber's Elevate aerial ride-hailing division in 2020 and Blade's helicopter service last year provides robust support for its future air taxi services, enhancing its operational capabilities.
- Market Outlook: With the FAA expected to approve Joby's first commercial flights this year and the launch of its air taxi services in Dubai, these catalysts could drive its stock price higher, despite a high projected P/E ratio of 47 times its 2027 sales.
See More
Chinese Intermediaries Facilitate Foreign Vehicle Influx into Russia
- Market Penetration Acceleration: Following the 2022 Russian invasion of Ukraine, thousands of foreign vehicles, including luxury German brands and popular Japanese models, are reportedly entering Russia through Chinese intermediaries, showcasing a significant evasion of international sanctions.
- Reliance on Informal Networks: Russian dealers are increasingly depending on informal networks to acquire vehicles, with many brand-new cars classified as 'used' to bypass manufacturer controls, indicating a strong demand for high-end vehicles in the market.
- Chinese Automotive Market Advantage: China's heavily subsidized automotive sector enables traders to profitably export surplus vehicles, leading to a growing web of intermediaries connecting Chinese factories with Russian buyers, thus creating a new trade dynamic.
- Active Gray Market: Cars sold at discounts in China often fetch near-new prices in Russia, further incentivizing the expansion of intermediary networks and highlighting the persistent demand for high-end and hybrid vehicles in the Russian market.
See More
Toyota to Launch First U.S.-Made Electric SUV Later This Year
- Market Expansion: Toyota plans to launch its first U.S.-made electric vehicle, the 2027 all-electric Highlander SUV, later this year, marking a strategic deepening of its footprint in the North American market.
- Investment and Production: The vehicle will be assembled at Toyota's Georgetown, Kentucky plant, which is undergoing a $1.3 billion retooling to enhance battery-electric SUV production and in-house battery pack assembly capabilities.
- Battery Supply Chain: Battery modules will be supplied from Toyota Battery Manufacturing in North Carolina, a facility that has just begun producing lithium-ion packs for Toyota's electrified lineup, ensuring a reliable battery supply for the new EV.
- Range Capability: Positioned as a large family SUV, the Highlander EV is expected to deliver a driving range of approximately 320 miles (about 515 kilometers) on a single charge, aligning it with other long-range electric SUVs and enhancing its competitive edge in the market.
See More
Supreme Court Dashes Hopes for Trump Tariff Refunds
- Legal Challenge Outlook Dim: Supreme Court Justice Ketanji Brown Jackson indicated on CBS that any legal challenge to Trump's recent tariffs would encounter “nuanced legal issues,” suggesting that hopes for refunds are increasingly unlikely due to the complexity involved.
- Market Reaction Swift: On Polymarket, the odds of Trump being forced to refund tariffs plummeted from 39% last week to 28%, reflecting a significant drop in investor confidence regarding the success of any legal challenge and highlighting market uncertainty about future policies.
- Corporate Earnings Outlook Dims: Best Buy (NYSE:BBY) has cut its 2026 guidance, explicitly citing tariff costs as a major factor, and the diminishing possibility of refunds will directly impact its bottom line for the first half of the year, increasing financial pressure on the company.
- GM Faces Rising Costs: General Motors (NYSE:GM), while a domestic company, imports significant components from Mexico, and the continued imposition of tariffs keeps input costs elevated through Q2, adversely affecting the company's overall profitability.
See More
Toyota Unveils 2027 Highlander as All-Electric Midsize SUV
- First Electric SUV: The 2027 Highlander is Toyota's first three-row battery electric vehicle (BEV) for the U.S. market, marking a significant advancement in Toyota's electric vehicle strategy and is expected to attract eco-conscious family consumers.
- Power and Efficiency: The new model offers power options ranging from 221 to 338 horsepower with 77.0-kWh and 95.8-kWh battery choices, with the XLE AWD version achieving a range of up to 320 miles, showcasing Toyota's innovative capabilities in electric powertrain design.
- Advanced Technology Features: Equipped with the latest Toyota Audio Multimedia system and Toyota Safety Sense 4.0, it enhances safety and entertainment experiences, improving driving convenience and security, thereby solidifying Toyota's competitive edge in the smart vehicle market.
- Comfort and Space Design: The interior focuses on comfort, accommodating up to seven passengers, featuring a 14-inch touchscreen and multiple charging options, aimed at meeting the diverse needs of modern families and enhancing the overall user experience.
See More
