Market Beats | Nongfu Spring Profit Growth Hits 5-Year Low; JPMorgan Teams Up with Affirm for Flexible Payments; BlackRock Debuts First Bitcoin ETF in Europe; US Home Price Growth Quickens in January; Tesla European Sales Fell Sharply Again; DOGE Cuts Funding for Hundreds of Affordable Housing Projects

—— Nongfu Spring Profit Growth Hits 5-Year Low; JPMorgan Teams Up with Affirm for Flexible Payments; BlackRock Debuts First Bitcoin ETF in Europe; US Home Price Growth Quickens in January; Tesla European Sales Fell Sharply Again; DOGE Cuts Funding for Hundreds of Affordable Housing Projects

1. Nongfu Spring Profit Growth Hits 5-Year Low

Nongfu Spring Co., a leading Chinese beverage company, reported its slowest annual profit growth since its initial public offering in 2020. The company’s net income in 2024 rose marginally by 0.4% to 12.1 billion yuan ($1.7 billion), which fell short of the 12.5 billion yuan analysts had projected, according to a recent exchange filing.

The modest increase in profits comes amid a challenging year marked by negative publicity and calls for boycotts from nationalist internet users. Additionally, the Hong Kong Consumer Council raised concerns over the quality of Nongfu’s water in July, a claim for which it later apologized after the company contested the allegations.

Despite these hurdles, sales from Nongfu’s water products declined 21%, although they still represented a slightly larger share of the company’s total revenue, rising to 42.9 billion yuan from about 42.7 billion yuan the previous year.

Zhong Shanshan, China’s richest man and the head of Nongfu, described the past year as a “historical test” due to the online backlash. Nevertheless, the company maintained its leading position in the packaged water market, even though its market share experienced a decline.

Looking ahead, Zhong indicated that Nongfu would continue its efforts to expand into overseas markets, signaling a strategic focus on international growth despite domestic challenges.

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2. JPMorgan Teams Up with Affirm for Flexible Payments

JPMorgan Chase & Co. is expanding its offerings in the buy-now, pay-later (BNPL) sector through a new partnership with Affirm Holdings Inc. This agreement will enable the bank’s merchant network to offer Affirm’s installment payment options to their customers.

Retailers using Chase’s platform can now provide installment loans for purchases ranging from $35 to $30,000, with repayment terms varying from 30 days up to 60 months. Michael Lozanoff, JPMorgan’s global head of merchant services, highlighted the growing demand for diverse payment options, flexibility, and seamless transactions from both merchants and consumers.

This move comes as BNPL services gain popularity in the U.S., challenging the traditional dominance of credit cards. The trend towards deferred payment options has accelerated following a surge in online shopping during the pandemic.

The announcement also arrives amid increasing competition in the BNPL space, particularly with Klarna Group Plc’s upcoming public offering in the U.S. scheduled for early April. JPMorgan had previously established a similar partnership with Klarna, a Swedish payments company.

Additionally, Klarna recently announced a partnership with OnePay, a fintech firm backed by Walmart Inc., which directly competes with Affirm’s existing agreement with the retail giant. This development underscores the dynamic and rapidly evolving landscape of financial technology and consumer credit alternatives.

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3. BlackRock Debuts First Bitcoin ETF in Europe

BlackRock Inc., the world’s largest asset manager, is set to launch a Bitcoin exchange-traded product (ETP) in Europe, capitalizing on the momentum of its highly successful $48 billion US fund that tracks the cryptocurrency.

The new iShares Bitcoin ETP will be listed on Xetra and Euronext Paris under the ticker IB1T, and on Euronext Amsterdam under the ticker BTCN, starting Tuesday. To attract investors, BlackRock is introducing the product with a temporary fee waiver, reducing its expense ratio to 0.15% until the end of this year.

This move marks BlackRock’s first venture into crypto-linked ETPs outside North America and reflects a significant shift in the industry, acknowledging both sustained retail interest and increasing professional engagement in cryptocurrency investments. Manuela Sperandeo, BlackRock’s head of Europe & Middle East iShares Product, highlighted in an interview that this launch could represent a tipping point for the industry, driven by a mix of established demand from retail investors and growing interest among professional investors.

Although cryptocurrency-linked ETPs have been available on European exchanges for some time, their market size of $13.6 billion is relatively small compared to the US market. BlackRock’s entry into this space could potentially transform the landscape and scale of crypto investments in Europe.

The launch of BlackRock’s iShares Bitcoin Trust in the US last January was met with exceptional enthusiasm, quickly amassing billions in assets and achieving the best debut in exchange-traded fund history.

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4. US Home Price Growth Quickens in January

Home-price growth in the US experienced a slight acceleration in January, amid ongoing competition for a limited number of available homes on the market.

According to data from S&P CoreLogic Case-Shiller, a national gauge of home prices rose 4.1% in January from the same month a year earlier, marking an increase from the 4% annual growth recorded in December. Despite the typical seasonal slowdown during the colder winter months, which often sees a decrease in home-shopping activity, buyers who continued their search faced a shortage of listings.

Recent data suggests some relief may be on the horizon, with new listings in the four weeks ending March 16 increasing by 5.5% compared to the same period last year, as reported by Redfin Corp. However, high borrowing costs remain a significant hurdle for many potential homebuyers. The number of contracts to purchase previously owned homes dropped to a record low in January, affected not only by these financial barriers but also by adverse weather conditions.

In a more localized snapshot, the Case-Shiller index covering 20 major cities showed home values rising by 4.7% in January year-over-year, an increase from a 4.5% gain in the previous month. Among these cities, New York led with the most significant price increase of 7.7%, followed by gains in Chicago and Boston. Conversely, Tampa was the only city among the 20 tracked that experienced a decline, with home prices there falling by 1.5%.

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5. Tesla European Sales Fell Sharply Again

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. DOGE Cuts Funding for Hundreds of Affordable Housing Projects

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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