Market Beats | Mexican Navy Ship Hits Brooklyn Bridge; Former President Joe Biden Diagnosed with Advanced Prostate Cancer; Seres Surges to Top of China Luxury EV Market; Florida Home Prices Fall as Climate Costs Reshape Real Estate Market; US Bond Yields Surge as Credit Downgrade and Trump’s Tax Bill Fuel Debt Concerns; Klarna’s Losses Double as US Consumer Credit Worsens

—— Mexican Navy Ship Hits Brooklyn Bridge; Former President Joe Biden Diagnosed with Advanced Prostate Cancer; Seres Surges to Top of China’s Luxury EV Market; Florida Home Prices Fall as Climate Costs Reshape Real Estate Market; US Bond Yields Surge as Credit Downgrade and Trump’s Tax Bill Fuel Debt Concerns; Klarna’s Losses Double as US Consumer Credit Worsens

1. Mexican Navy Ship Hits Brooklyn Bridge

A tragic incident occurred Saturday evening when the Mexican naval tall ship Cuauhtémoc struck the base of the Brooklyn Bridge after reportedly losing power, killing two crew members and injuring several others.

New York City Mayor Eric Adams stated on X that 19 people were in serious or critical condition. Mexican President Claudia Sheinbaum confirmed the fatalities and offered condolences to the victims’ families in a separate post.

The 270-foot Cuauhtémoc, a naval training ship, was in New York as part of a global tour that included stops in 15 countries and 22 ports. The vessel was scheduled to visit destinations such as Jamaica, Cuba, Iceland, and France, according to the Associated Press.

Footage shared on social media showed the ship’s three illuminated masts—flying a large Mexican flag—colliding with the bottom of the bridge as cars passed overhead. Despite the damage, the ship continued to drift before coming to a halt.

The Mexican Navy said in a statement that it is evaluating the condition of the crew and equipment and is working closely with local authorities. “The Navy reaffirms its commitment to personnel safety, transparency in its operations, and excellent training for future officers,” it added.

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2. Former President Joe Biden Diagnosed with Advanced Prostate Cancer

Former US President Joe Biden has been diagnosed with an aggressive and advanced form of prostate cancer, his office confirmed in a statement on Sunday.

Doctors discovered a small nodule during a visit to a Philadelphia hospital last week, where Biden, 82, had been seeking evaluation for urinary symptoms.

According to spokesperson Kelly Scully, the cancer has metastasized to the bone — a development seen in about 60% of advanced prostate cancer cases, based on data from Zero Prostate Cancer.

“While this represents a more aggressive form of the disease, the cancer appears to be hormone-sensitive which allows for effective management,” Scully said. “The president and his family are reviewing treatment options with his physicians.”

Scully added that the cancer carries a Gleason score of 9, indicating a highly aggressive form of the disease that tends to grow and spread quickly.

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3. Seres Surges to Top of China’s Luxury EV Market

In less than four years, Seres Group Co., once known for making affordable minivans, has emerged as China’s hottest high-end carmaker — outpacing global luxury giants like BMW and Mercedes-Benz.

Formerly called DFSK Motor, Seres partnered with Huawei Technologies Co. in 2021 to launch the Aito brand of premium electric and hybrid SUVs. Since then, the automaker has seen a meteoric rise, with sales tripling to approximately 427,000 vehicles in 2024. The company’s Shanghai-listed shares have also surged by 120%.

Aito’s flagship model, the M9 SUV, has become China’s best-selling vehicle in the 500,000 yuan-and-above category, despite only debuting at the end of 2023. The luxurious M9 comes equipped with Huawei’s Harmony operating system, a triple-screen dashboard, dual-zone refrigerator, ambient lighting, and other premium features. According to data from Shanghai-based consultancy ThinkerCar, about 151,000 units were delivered in 2024.

The base version of the M9 battery-electric vehicle starts at 509,800 yuan (approximately $70,500).

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4. Florida Home Prices Fall as Climate Costs Reshape Real Estate Market

Florida’s real estate market is entering another downcycle — but this time, experts warn that climate-related costs may cause a deeper and more lasting impact than in previous boom-and-bust periods.

Soaring insurance premiums and rising condominium fees, driven in part by extreme weather and tightening building regulations, are making it harder for homeowners and buyers to justify the usual advantages of Florida living — such as year-round sunshine and no state income tax. These pressures are intensifying challenges already posed by high borrowing costs.

“This is a non-cyclical phenomenon,” said Jesse Keenan, a Tulane University real estate professor specializing in climate adaptation. “This is resetting the baseline values of housing in Florida.”

According to Redfin Corp., Florida’s median home price fell 3.1% in April compared to a year earlier — the steepest decline of any state since at least 2012. Housing inventory is approaching record levels, and the wave of new residents that surged during the pandemic has significantly slowed, reducing buyer demand.

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5. US Bond Yields Surge as Credit Downgrade and Trump’s Tax Bill Fuel Debt Concerns

US long-term borrowing costs surged to their highest level since November 2023 on Monday, after Moody’s downgraded the country’s sovereign credit rating and Congress advanced President Donald Trump’s expansive tax and budget bill — both developments stoking fears over America’s growing fiscal burden.

Yields on 30-year US Treasuries rose by as much as 0.13 percentage points to 5.03%, surpassing the highs seen during last month’s tariff-related market sell-off. Yields rise as bond prices fall.

US stock futures also dropped sharply, with S&P 500 futures down 1.1% and Nasdaq futures off 1.5%. The US dollar fell 0.9% against a basket of major currencies including the euro and British pound.

Moody’s credit rating downgrade, announced Friday evening, cited the US’s escalating government debt and widening budget deficit. The move dealt a symbolic blow to investor confidence in US fiscal discipline.

On Sunday, a congressional committee approved Trump’s flagship tax bill, which analysts expect will further expand deficits and deepen long-term debt concerns.

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6. Klarna’s Losses Double as US Consumer Credit Worsens

Swedish fintech company Klarna reported a sharp rise in losses during the first quarter of 2025, as more US consumers failed to repay loans amid rising financial strain and growing economic uncertainty.

The “buy now, pay later” lender posted a net loss of $99 million for the three months ending in March, more than double the $47 million loss reported in the same period last year.

Customer credit losses jumped 17% year-on-year to $136 million, reflecting increasing difficulty among consumers in keeping up with repayments. Klarna earns revenue by charging fees to merchants and to customers who miss payments.

The worsening repayment trends come as US consumer sentiment fell to its second-lowest level on record last week. Economists cite elevated inflation expectations, partly driven by President Donald Trump’s renewed trade war and sweeping tariffs.

Klarna was recently forced to pause its plans for a long-anticipated stock market listing in New York due to heightened market volatility stemming from the Trump administration’s tariff announcements.

The company has rapidly expanded in the US, partnering with major merchants such as Walmart, DoorDash, and eBay. This aggressive push has raised investor concerns over Klarna’s exposure to a potential US recession.

Despite the mounting credit losses, Klarna emphasized that 83% of its loan portfolio refreshes every three months, giving it flexibility to adjust quickly to changing market dynamics. Its credit loss rate remains relatively low at 0.54% of total payment volume, up slightly from 0.51% a year ago.

Revenues rose 13% year-on-year to $701 million in Q1, with Klarna reporting 99 million active users globally.

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7. Federal Reserve to Cut Workforce by 10%

The Federal Reserve plans to reduce its workforce by approximately 10% over the next couple of years, largely through attrition and a voluntary deferred resignation program offered to retirement-eligible employees.

Fed Chair Jerome Powell announced the initiative in a memo to staff, stating that the move aims to modernize operations and ensure the central bank remains appropriately sized to meet its statutory mission.

“I have directed the leadership of the Federal Reserve, here at the Board and across the System, to find incremental ways to consolidate functions where appropriate, modernize some business practices and ensure that we are right-sized and able to meet our statutory mission,” Powell said.

The voluntary deferred resignation program will be available to Board of Governors staff who are fully eligible to retire by December 31, 2027, similar to a program the Fed used in 1997.

As of 2023, the Fed reported 23,950 employees across its system. The 2024 budget had anticipated increasing staff to 24,553 — a 2.5% rise — making this a sharp reversal in hiring trajectory.

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