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Mexican President Claudia Sheinbaum said on Thursday that she secured a pause on new tariffs coming into effect and a 90-day period to work on a trade deal in a call with U.S. President Donald Trump. The agreement avoids the 30% tariffs that had been set to come into force on Friday. Speaking in a regular press conference after the announcement, Sheinbaum said the pause safeguards the U.S.-Mexico-Canada Agreement (USMCA) and means goods compliant with the pact will continue to be exempt from the 25% tariffs Trump imposed earlier this year due to the fentanyl crisis. Approximately 85% of Mexican exports comply with the rules of origin outlined in the USMCA, according to Mexico’s economy ministry. Economy Minister Marcelo Ebrard, speaking alongside Sheinbaum, said Thursday’s agreement brought the countries closer to securing a long-term trade agreement. “All of this was achieved without a single concession on Mexico’s part,” said Ebrard. “It’s a great achievement.” Both Sheinbaum and Ebrard stressed that the pause means Mexico continues to be one of the countries in the world with most preferential access to the U.S. market. Aida Pelaez-Fernandez, Brendan O’Boyle, and Emily Green, Reuters
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E-Commerce
Biotech giant Moderna announced it will lay off 10% of its workforce in a move CEO Stéphane Bancel called a difficult decision but necessary step forward, in an internal memo sent to employees today. The move sent Modernas stock price (NASDAQ: MRNA) tumbling over 5% through Thursday morning, and signals a further contraction of the once fast-growing business. I know this is a difficult moment for the company, Bancel said in the memo announcing layoffs. We all feel a range of emotions whenever we have to say goodbye to colleagues. Moderna declined to comment on which areas of the business would be most impacted by the workforce reduction. Moderna became a household name during the COVID-19 pandemic, when its mRNA vaccine became the second authorized for emergency use against COVID-19. At the time, it quickly scaled up its manufacturing capabilities and workforce to supply billions of vaccines in America and around the world. Since the pandemic, however, the biotech firm has struggled to maintain the size of its operation. In 2024, Modernas annual revenue was less than half of what it was in 2023$3.2 billion compared to $6.8 billion. This year, the company is seeing further decline. It brought in just $108 million in the first quarter, 35% less than the first quarter of 2024, as it faces mounting challenges from the federal government. Under Robert F. Kennedy Jr., the new secretary of the Department of Health and Human Services (HHS) and proponent of the anti-vaxxer movement, the HHS has taken aim at the mRNA vaccines Moderna specializes in. These vaccines work by introducing a piece of mRNA, a single-stranded molecule similar to DNA, that instructs cells on how to make a harmless version of a virus. The body then makes antibodies, proteins used by the immune system to annihilate harmful substances, that can fight off the real virus. Although mRNA vaccines are widely used, safe, and effective, those skeptical of the innovation have driven lawmakers to curtail the companies behind them. In May, the CDC revised its guidelines for COVID-19 vaccination and the FDA made it more difficult for vaccines to be approved. The second Trump administration also cancelled a $766 million contract with Moderna to develop a vaccine against influenza viruses, such as H5N1 bird flueven as the company announced positive early results. In response to uncertainty in the vaccine market and decreasing revenue, earlier this year, the company committed itself to reducing annual operating costs by $1.5 billion by 2027. The layoffs today are the next step in achieving that reduction, following a significant drop in R&D spending and limiting supplier and manufacturing costs. Despite slimming down the business, Bancel said the companys mission will remain unchanged and notes there are still opportunities to expand Modernas product line. The future of Moderna is bright, Bancel said in a memo to employees. We are sharpening our focus, becoming leaner, and staying ambitious in oncology, rare diseases, and latent viruses. Moderna is expected to report its Q2 financial results tomorrow.
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E-Commerce
Microsoft became the second company to pass a $4 trillion market cap mark after a blowout earnings release on Wednesday afternoon. That release showed quarterly revenue up 18% year-over-year, and net income up 24%, which resulted in Microsoft shares increasing more than 4% on Thursday, bringing the companys overall value past $4 trillion. Microsoft follows Nvidia as the only two companies to have breached $4 trillion, and Microsofts stock has more than doubled over the past three years. Its also roughly six years after Microsoft passed the $1 trillion mark. Other companies are also hot on its heels. Here are five others that could become the next $4 trillion companies. Apple Apple will report earnings on Thursday after the bell, which could have an impact on its overall value. As it stands, the company has a market cap of roughly $3.1 trillionstill a ways off from $4 trillionbut is the third-largest public firm in the world, measured by market cap. It was the first company to cross the 1 trillion, $2 trillion, and $3 trillion market cap marks, too, and shares are currently trading at around $210. Notably, shares are down almost 15% year to date, but have nearly doubled in value over the past five years. Amazon Amazon is the fourth-largest public company in the world by market cap, with an overall value of around $2.5 trillion. Like Apple, Amazon will report earnings after the bell on Thursday, which could increase or decrease its value. The company does have a lot of ground to make up on Microsoft and Nvidia to reach $4 trillion, which would require some significant movement in its share price, which is currently trading at more than $230. Alphabet Alphabet, Googles parent company, is the only other public company worth more than $2 trillion as of writing, with a market cap of around $2.33 trillion. Like Amazon, that means theres quite a lot of work to do to get to $4 trillion. Alphabets shares were trading for around $192 on Thursday afternoon, which was an intraday decline of 2%. Alphabets most recent earnings report came out on July 23. Meta The only other company within spitting distance of $4 trillion is Meta, which, as of writing, has a market cap of around $2 trillion. Following its latest earnings release on Wednesday, Meta shares increased 12%, with revenues up 22% year-over-year, and net income up 36%.
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E-Commerce
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