Silver banana goes to…

In this issue of the peel:

• 📈 Palantir pops 7.7% after sealing new federal contract—PLTR soars on fresh government business, flexing a staggering 518% return over the last 12 months.

• 🛠️Trump’s tariff double-down reshapes global steel—50% tariffs, a $14B Nippon Steel deal, and a golden share of controversy land America back in the trade war spotlight.

• 🏦 HSBC ditches U.S. small biz banking—The global bank retreats to Asia, shedding its U.S. SMB clients to focus on where it dominates.

Market Snapshot

Banana Bits

• Foreign tourists are skipping U.S. vacations, with international arrivals down 6% and Canadian travel dropping 20% amid political tensions.

• PBS sues the Trump administration over an executive order to defund public media, citing threats to editorial independence.

• EOG Resources acquires Encino Acquisition Partners for $5.6B, expanding its footprint in Ohio's Utica Shale region.

• Costco reports higher profits and sales, leveraging tariff mitigation strategies despite declining consumer confidence.

• Dell Technologies raises its earnings outlook, driven by increased demand for AI-optimized servers.

• HSBC exits U.S. small business banking, focusing on markets where it holds a competitive edge, notably in Asia.

The Daily Poll

Previous Poll:

Will Elon’s return to Tesla fix things?

Yes, he’s the spark: 15.5% // Only if he stays focused: 24.8% // Too late, BYD is coming: 52.2% // Depends on how robotaxi goes: 7.5%

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Macro Monkey Says

Tariffs, Steel, and a Golden Share

President Donald Trump has announced a significant shift in U.S. trade policy by doubling tariffs on imported steel and aluminum from 25% to 50%, effective this coming Wednesday. This move aims to bolster the domestic steel industry but has raised concerns about potential downstream effects on consumer prices and international trade relations.

In tandem with the tariff increase, Trump has endorsed a revised partnership between U.S. Steel and Japan's Nippon Steel. The deal includes a "golden share" provision, granting the U.S. government veto power over key decisions, ensuring American control over the company. 

Nippon Steel plans to invest $14 billion in U.S. Steel, including a $4 billion commitment to build a new steel mill, while maintaining U.S. Steel's headquarters in Pittsburgh.

However, the European Commission has expressed strong regret over the tariff hike, warning of increased costs for consumers and businesses and preparing retaliatory measures if no agreement is reached by mid-July. Additionally, South Korea reported a 1.3% drop in exports in May, attributing the decline to the impact of U.S. tariffs on its steel and aluminum shipments.

The long-term effects of these policies remain uncertain, with potential benefits for domestic steel production weighed against possible inflationary pressures and strained international trade relationships.

The Takeaway?

President Trump's decision to double tariffs on imported steel and aluminum to 50% aims to protect the U.S. steel industry and has garnered support through a revised deal with Nippon Steel, including a "golden share" ensuring American control. 

While this move may bolster domestic production, it has drawn criticism from international partners and raised concerns about potential increases in consumer prices and global trade tensions. The full economic impact of these measures remains to be seen.

Career Corner

Question

I had a coffee chat with two people from the same firm at the same time today (met a person through a cold outreach, and he brought his buddy along for coffee). Is it okay to send 1 email email to both, or should I send two separate emails thanking them for their time?

Answer

They both chimed in on all my questions, so it seems redundant to send two separate emails, but I thought I would ask.

I think it's fine to send to both of them, although when following up with them in the future, I'd start new chains in order to try and deepen the relationship with one or both of them.

Head Mentor_, WSO Academy

Check out WSO Academy!

What's Ripe

Hims & Hers Health (HIMS) 7.9%

• Hims & Hers Health shares surged 7.9% on Friday. This uptick follows the company's announcement of a 4% workforce reduction, approximately 68 employees, in response to the FDA's ban on compounded versions of the weight-loss drug Wegovy. 

• Despite this challenge, Hims & Hers reported a 111% annual revenue increase in Q1 2025, with GLP-1 weight-loss drug sales contributing $200 million to its $1.5 billion revenue in 2024.

Palantir Technologies (PLTR) 7.7% 

• Palantir Technologies' stock climbed 7.7% on Friday. The rise is attributed to the company's announcement of a new federal government contract, bolstering investor confidence. Over the past 12 months, Palantir has achieved a total return of over 518%, significantly outperforming the S&P 500's 11.9% return in the same period.

What's Rotten

Tesla (TSLA) 3.3%

• Tesla's stock declined by 3.3% on Friday. This drop comes despite a strong monthly performance, with the stock gaining 23% in May. The decline is linked to weakening vehicle sales, with Q1 deliveries falling 13% year-over-year to approximately 337,000 units. 

• Additionally, European sales in April halved, and Chinese sales declined 25% year-over-year in early Q2.

NVIDIA (NVDA) 2.9%

• NVIDIA shares fell 2.9% on Friday. The decline is attributed to renewed U.S.-China trade tensions, with President Trump accusing China of violating their trade agreement and announcing plans to expand U.S. licensing restrictions on companies dealing with Chinese firms linked to sanctioned entities. 

• NVIDIA reported a $4.5 billion charge in its fiscal Q1 due to export curbs on its H20 chips to China and anticipates an $8 billion revenue loss in Q2. 

Thought Banana

South Korea's Export Slump Amid Tariff Turmoil

South Korea's economy just got dropkicked by tariffs—and now the central bank is scrambling to soften the blow. 

In May 2025, South Korea’s exports fell 1.3% year-over-year to $57.27 billion, ending a four-month streak of growth. The slump is largely blamed on a steep drop in shipments to the U.S. and China, which fell 8.1% and 8.4%, respectively. 

U.S. tariffs on vehicles and metals—part of President Trump’s renewed “America First” trade policy—have hit South Korean automakers particularly hard. Hyundai’s U.S. operations, for example, have seen production slow as consumers and suppliers react to rising prices and uncertainty.

Despite the export drag, semiconductors provided a rare bright spot, with chip shipments up 21.2% amid a global tech boom. But the macro picture remains fragile. The Bank of Korea, citing the deteriorating external environment and weak domestic demand, slashed its benchmark interest rate to 2.50%, the lowest since early 2022, and cut its 2025 growth forecast in half, from 1.6% to just 0.8%.

This move signals a shift to a more dovish policy stance, as officials weigh the risks of a broader slowdown. South Korea’s experience highlights the delicate balance between global trade friction and domestic economic stability.

South Korean Exports (12 months to May 2025)

The Takeaway?

South Korea's exports fell 1.3% in May 2025, ending a four-month growth streak, primarily due to U.S. tariffs impacting shipments to key markets. While semiconductor exports remained strong, the automotive sector faced significant declines. 

The Bank of Korea responded by cutting interest rates and lowering growth forecasts, indicating ongoing economic challenges. This situation underscores the broader implications of trade policies on global supply chains and export-dependent economies.

The Big Question: Can South Korea’s chip boom offset the tariff-driven drag in autos and metals?

Banana Brain Teaser

Previous

If each of the 12 teams participating in a certain tournament plays exactly one game with each of the other teams, how many games will be played?

Answer: 66

Today

60% of the members of a study group are women, 45% of those women are lawyers. If one member of the study group is to be selected at random, what is the probability that the member selected is a woman lawyer?

Send your guesses to [email protected]

How Would You Rate Today's Peel?

Happy Investing,
Chris, Vyom, Ankit, Mithun, Colin & Patrick

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