Market Beats | CATL Surges in $4.6 Billion Hong Kong Debut; Two Aides to Mexico City Mayor Shot Dead; Elon Musk Reaffirms Tesla Commitment; EU Plans €2 Fee on Small Parcels from China; Chanel Profit Plunges 30% Amid Luxury Slowdown

—— CATL Surges in $4.6 Billion Hong Kong Debut; Two Aides to Mexico City Mayor Shot Dead; Elon Musk Reaffirms Tesla Commitment; EU Plans €2 Fee on Small Parcels from China; Chanel Profit Plunges 30% Amid Luxury Slowdown

1. Mexican Navy Ship Hits Brooklyn Bridge

Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest electric vehicle battery maker, jumped 16% in its Hong Kong trading debut on Tuesday, following the year’s biggest IPO that raised HK$35.7 billion (US$4.6 billion), despite being blacklisted by the US Pentagon and facing ongoing geopolitical tensions.

CATL shares opened strong, rising to HK$306.20 — significantly above the listing price and outperforming its Shenzhen-listed stock, which gained 1.2%. While Chinese companies often trade at a discount in Hong Kong compared to mainland exchanges, CATL defied expectations, reflecting investor confidence in its role as a global leader in green technology.

If CATL exercises its overallotment option, the offering could grow to US$5.3 billion, doubling total Hong Kong IPO proceeds this year and possibly encouraging more Chinese firms to list despite geopolitical risks.

“CATL is a true champion enabling the energy transition, a symbol of China’s success as a global green leader,” said Karine Hirn, partner at East Capital Group.

Jefferies’ head of China industrials research, Johnson Wan, noted that CATL’s Hong Kong shares are priced at around 17 times current earnings — a valuation that offers up to 50% upside, supported by robust profits and strong growth potential.

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2. Two Aides to Mexico City Mayor Shot Dead

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. Elon Musk Reaffirms Tesla Commitment

Elon Musk said he plans to remain at the helm of Tesla Inc. for at least the next five years and expects to scale back his political contributions, offering reassurance to investors concerned about the leadership and strategic direction of the world’s most valuable automaker.

Speaking remotely at the Qatar Economic Forum in Doha on Tuesday, Musk told Bloomberg News that he deserves to be compensated for “doing something incredible” at Tesla. He criticized the Delaware judge who has twice struck down his 2018 pay package and emphasized his desire to increase his Tesla shareholding—not for financial gain, but to retain influence.

Musk, whose net worth of $375.5 billion tops the Bloomberg Billionaires Index, has served as Tesla’s CEO since 2008, making him one of the longest-serving leaders among major global automakers. His involvement with Tesla has faced increased scrutiny recently, as the company reported its first annual sales decline in over a decade, followed by steeper drops in early 2025.

“It’s not a money thing,” Musk said. “It’s a reasonable control thing, over the future of the company.”

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4. EU Plans €2 Fee on Small Parcels from China

The European Union plans to impose a €2 flat handling fee on billions of low-cost parcels entering the bloc each year, a move aimed primarily at Chinese e-commerce giants like Temu and Shein.

EU Trade Commissioner Maroš Šefčovič announced the proposal on Tuesday during a speech to the European Parliament. He said the handling fee is intended to address the logistical and regulatory challenges created by the estimated 4.6 billion items imported annually directly to consumers’ homes.

According to a draft proposal seen by the Financial Times, the €2 charge will apply to direct-to-consumer shipments, while packages sent to local warehouses will incur a reduced fee of €0.50. Over 90% of these parcels originate from China.

Some of the revenue will cover the cost of intensified customs checks, while the remainder will go toward the EU budget. The proposal mirrors recent efforts in the US, where former President Donald Trump ended the “de minimis” exemption for shipments under $800, a change that raised costs for American consumers buying low-priced goods online.

In Brussels, Šefčovič emphasized the scale of the problem, calling it a “huge flood of parcels” that poses new challenges for safety checks and regulatory compliance. EU retailers have complained that such imports constitute unfair competition and undermine product standards.

“I wouldn’t look at the handling here as a tax,” Šefčovič said. “It’s simply compensation for the cost and it should be paid by the platform.”

According to FT-obtained data, over 1 billion parcels arrived in each of the Netherlands and Belgium last year — the EU’s main e-commerce logistics hubs.

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5. Microsoft Offers Elon Musk’s xAI Models on Azure

Microsoft will begin offering artificial intelligence models from Elon Musk’s startup xAI to its cloud computing clients through its Azure AI Foundry platform, marking a notable shift in the tech giant’s relationship with OpenAI.

Announced on Monday, the move allows developers to access xAI’s latest Grok models under the same licensing and service terms as OpenAI’s models. Customers will receive “service parity,” meaning they will have comparable access to Microsoft’s cloud infrastructure whether they use OpenAI’s or xAI’s technology.

“We’re trying to simplify the purchasing experience and unify the user experience across model providers,” said Eric Boyd, corporate vice-president of Microsoft’s Azure AI Platform.

Microsoft remains OpenAI’s largest investor, but the relationship has become more complex as the company explores broader partnerships in the AI space. The decision to add xAI to Azure comes amid Elon Musk’s ongoing legal dispute with OpenAI CEO Sam Altman, centering on OpenAI’s transformation into a for-profit company.

By including xAI alongside OpenAI within Azure’s offerings, Microsoft is taking a more neutral stance in the evolving generative AI ecosystem, giving its customers greater flexibility and competitive options.

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6. Chanel Profit Plunges 30% Amid Luxury Slowdown

Chanel Ltd. reported a sharp 30% decline in operating profit last year as the luxury house ramped up marketing efforts to maintain visibility during a global industry slowdown.

Operating profit dropped to $4.48 billion, while comparable revenue fell 4.3%, the company said Tuesday. Sales in the Asia-Pacific region — including China, which accounts for roughly half of Chanel’s revenue — declined 7.1%.

The results reflect broader challenges in the luxury sector, which has struggled with tepid growth due in part to cautious Chinese consumer spending. The outlook has further dimmed following US President Donald Trump’s imposition of sweeping global tariffs last month, pressuring both demand and investor sentiment. Even industry leaders such as LVMH have reported underwhelming sales this year.

“Chanel was hit hard by macroeconomic volatility, particularly in China,” said CEO Leena Nair in a call with Bloomberg. She dismissed criticism that the company had priced itself out of reach post-pandemic, pointing to high-profile items such as the flap bag, which now retails for more than €10,000 ($11,245).

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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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