Market Beats | Meituan Joins Global AI Race with New LLM; Heathrow Airport Shuts Down Amid Fire Induced Outage; Nike Shares Tank 9.3% Amid Bad Earnings; Retail Traders Bought Tesla Dips for 13 Straight Sessions; US SBA Agency to Cut 43% of Staff

—— Meituan Joins Global AI Race with New LLM; Heathrow Airport Shuts Down Amid Fire Induced Outage; Nike Shares Tank 9.3% Amid Bad Earnings; Retail Traders Bought Tesla Dips for 13 Straight Sessions; US SBA Agency to Cut 43% of Staff

1. Meituan Joins Global AI Race with New LLM

Meituan, China’s leading meal delivery service, has announced its entrance into the artificial intelligence sector with the development of its own AI model, named “LongCat.” This move comes as the company reported a robust 20% increase in quarterly revenue. With this initiative, Meituan joins a global surge in AI development that includes major players like ByteDance Ltd. and Alibaba Group Holding Ltd., who have developed their AI models, Doubao and Qwen, respectively.

The company, which also operates a travel site and e-commerce platform, plans to integrate AI across its business processes and consumer services. Historically, Meituan has utilized deep data analysis and algorithms to connect merchants and consumers effectively but has not previously disclosed much about its strategic approach to AI. This development marks a significant shift as Meituan now aims to enhance its AI capabilities and increase capital expenditures in this area.

Founder Wang Xing indicated that Meituan would invest heavily in AI technology, including billions in AI chips, though specific figures were not disclosed. He highlighted that the “LongCat” model already competes favorably with domestic AI leaders and is expected to be central to a comprehensive AI strategy. This strategy aims to bridge online services with physical market applications, such as in food delivery, positioning Meituan to compete more aggressively with both national and international tech giants.

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2. Heathrow Airport Shuts Down Amid Fire Induced Outage

London’s Heathrow Airport, one of the busiest airports in the world and the busiest in Europe, faced an unprecedented disruption after a nearby fire caused a power outage, halting operations and affecting hundreds of thousands of passengers. This incident marks the most severe disruption at Heathrow in over two decades.

The airport announced it would remain closed throughout Friday, with potential for ongoing service interruptions extending into the coming days. The severity of the situation prompted the UK Metropolitan Police’s counter-terrorism command to take charge of the investigation. The focus is on the substation fire’s location and its significant impact on critical national infrastructure.

Heathrow has strongly advised against traveling to the airport, stating that it is uncertain when power will be fully restored. This major disruption has led to the cancellation or rerouting of over 1,300 flights scheduled for Friday. As a crucial hub for transatlantic flights, as well as flights to the Middle East and Asia, the impact of the closure is profound.

Some of the affected flights have been diverted to nearby airports like London Gatwick, while others have been directed as far as Frankfurt to manage the sudden influx of rerouted passengers.

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3. Nike Shares Tank 9.3% Amid Bad Earnings

Manufacturing activity in New York state plummeted in March to its lowest level since early 2024, while indicators for prices have surged, aligning with projections of decelerated growth and accelerated inflation due to the implementation of tariffs.

The Federal Reserve Bank of New York reported that its manufacturing index dropped sharply by nearly 26 points to a reading of minus 20. Simultaneously, the prices paid index climbed to 44.9, marking a two-year high. Prices received by manufacturers also rose to the highest level since 2023.

The new orders index experienced a significant decline, falling more than 26 points, which is the largest drop since May 2023. Additionally, there was a marked decrease in shipments, and both employment metrics and the length of the workweek contracted at a quicker pace than in the previous month.

This downturn in factory activity highlights the challenges faced by the manufacturing sector, which is struggling to gain momentum amid policy uncertainties. The tariffs introduced by the Trump administration are anticipated to further suppress growth and contribute to rising inflation.

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4. Retail Traders Bought Tesla Dips for 13 Straight Sessions

Tesla Inc. is currently experiencing a dramatic drop in its stock price, with global sales also seeing a significant decline. Despite the downturn and growing caution among once-optimistic Wall Street analysts, there remains a robust group of supporters actively purchasing Tesla shares: the ardent fans of CEO Elon Musk.

These individual investors, deeply engaged in every update Musk shares on X, the social media platform he owns, have a history of fervently analyzing and promoting Tesla. They play a critical role in maintaining the hype around the company’s stock through detailed discussions in online forums.

The current buying spree by these fans is unprecedented in recent history. According to retail trading data analyzed by Emma Wu, a global equity derivatives strategist at JPMorgan Chase, individual investors have been net buyers of Tesla stock for 13 consecutive sessions, through Thursday. They have invested a total of $8 billion during this period, marking the most substantial inflow since such data began being tracked in 2015.

This enthusiastic investment comes at a time when Tesla’s share price has plummeted by 17%, resulting in a loss of over $155 billion in market value. The contrast between the falling stock price and the high level of buying activity underscores the unique and persistent support Tesla enjoys from its community of individual investors, driven largely by their allegiance to Elon Musk.

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5. US SBA Agency to Cut 43% of Staff

The Small Business Administration (SBA) is set to significantly reduce its workforce, announcing plans to cut 43% of its employees. This decision comes in response to initiatives spearheaded by Elon Musk’s Department of Government Efficiency, aiming to streamline government operations.

Currently, the SBA employs over 6,000 workers and aims to eliminate positions deemed “non-essential,” aiming to revert to staffing numbers that mirror those before the Covid-19 pandemic. This move is part of a broader federal effort under President Donald Trump and Musk’s directives to reduce the size of the government, reflecting a push towards increased efficiency.

In a statement released on Friday, the SBA emphasized that this strategic reorganization intends to not only restore the operational efficiency seen during the first Trump administration but also to sharpen its focus on supporting small businesses. Importantly, the agency assured that its core services, including loan guarantee programs, disaster assistance, and operations supporting veterans and field activities, will remain unaffected by the workforce reduction.\

This workforce reduction at the SBA is part of an ongoing series of cuts across federal agencies, following an order last week that required agencies to submit plans for substantial staffing cuts to the White House. This reflects a continuing trend towards downsizing and optimizing government functions.

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6. Berkshire Increases Stakes in Five Japanese Trading Houses

Warren Buffett’s Berkshire Hathaway has increased its investments in the top five trading houses in Japan, lifting its stakes after successfully negotiating the removal of a 10% investment ceiling. The investment gains were notable in Mitsubishi Corporation, where Berkshire’s holdings went from 8.31% to 9.67%, and in Mitsui, where its stake rose from 8.09% to 9.82%. Similar increases occurred in Itochu, Marubeni, and Sumitomo Corporation, each seeing a rise of about a percentage point.

These trading houses play a crucial role in Japan’s economy, serving as key importers of essential raw materials such as oil, gas, iron ore, and copper, while also supporting the nation’s major export sectors including automobiles, electronics, and machinery.

Buffett, who initially revealed Berkshire’s investments in these companies in 2020, expressed growing admiration for them in his recent annual shareholder letter. He commended their business operations for their resemblance to Berkshire Hathaway, which itself evolved from a textiles manufacturer to a vast investment conglomerate.

Buffett also indicated his intention to maintain these investments for “many decades,” underscoring his long-term commitment to these Japanese firms.

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7. Congestion Pricing Gains More Support from New Yorkers

New York City’s contentious congestion pricing program is slowly winning over support, though it still hasn’t secured a majority of voter approval.

The program, which launched on January 5, charges most drivers $9 during peak hours to enter Manhattan south of 60th Street. Its goals are twofold: reduce traffic congestion and generate revenue to upgrade the city’s over-a-century-old transit system.

According to a recent Siena College poll of registered voters statewide, 40% believe the fee should be eliminated—mirroring the Trump administration’s push—while 33% support keeping the program in place. This marks a modest shift from a December poll, where opposition was at 51% compared to just 29% in favor.

Among New York City residents specifically, attitudes have notably reversed. Now, 42% say the toll should remain, while 35% want it scrapped, compared to December figures showing only 32% in support and 56% opposed.

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