Europe Eases, America Freezes: The Global Rate Cut Divide

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Dear Money Master,

This week’s headlines reveal a world scrambling to adapt. Temu and Shein’s U.S. presence is collapsing, casualties of President Trump’s sweeping tariff war and the end of the de minimis loophole. Meanwhile, across the Atlantic, the European Central Bank slashed rates yet again, putting pressure on the Fed, which has held firm despite calls from Trump to "act now."

Back in the U.S., the trade deficit posted a record monthly drop, not because of booming exports, but due to crumbling import demand after tariffs bit into business inventories. And in the U.K., the Office for National Statistics admitted a CPI error, overstating April inflation due to faulty car tax data.

In markets, confidence in London as a financial hub continues to erode, as U.K. fintech Wise plans to move its primary listing to the U.S., joining a growing tech migration. On the IPO front, Omada Health debuted strong, signaling a revival in digital health investing, while Ollie’s Bargain Outlet crushed expectations, and Lululemon and NIO disappointed investors with cautious forecasts and steep losses.

Read of the Day: Layoffs Are Surging Again – Here's Why It's Happening and What It Means?🌍💼

📰 Your Daily Financial Digest - June 6th, 2025

🌍 Economics:

1. UK Inflation Was Overstated Due to Car Tax Error 🚗
   The U.K.'s April CPI was revised from 3.5% to 3.4% after a Vehicle Excise Duty data error. Though the change is minor, it highlights flaws in official inflation metrics. The ONS apologized and said future stats will reflect corrected inputs. Read More

2. U.S. Trade Deficit Posts Record Monthly Drop 📉
   April’s trade deficit shrank by a historic $76.7 billion to $61.6 billion as Trump's tariffs chilled import demand. Imports fell 16.3%, while exports rose 3%, reversing a previous surge of pre-tariff buying. Read More

3. ECB Cuts Rates Again, Trump Pressures Fed 🏦
   The ECB lowered interest rates for the 9th time, taking a dovish stance to boost eurozone resilience. Trump renewed attacks on Powell, calling for similar U.S. rate cuts amid weaker-than-expected job growth. Read More

💻 Technology:

1. Temu and Shein See U.S. User Drop Amid Tariff Crackdown 🧾
   Temu’s daily users plunged 52% and Shein’s 25% after Trump ended the de minimis loophole. The tariff policy also pushed both platforms to slash U.S. ad spend, hurting engagement and App Store rankings. Read More

2. Wise Plans to Move Stock Listing to U.S. 📉
   UK fintech Wise will shift its primary listing to the U.S., dealing a blow to London’s capital markets. The firm cited deeper liquidity and tech-savvy analysts as key reasons for the move. Read More

3. Omada Health IPO Prices at $19, Valued at $1.1B 💊
   Virtual chronic care firm Omada went public at $19/share, raising $150M. The company’s Q1 revenue jumped 57% to $55M, signaling investor appetite for digital health post-Hinge and Circle IPOs. Read More

💹Earnings:

1. Ollie’s Bargain Outlet Crushes Q1, Ups Guidance 🛒
   Discount retailer Ollie’s posted $576.8M in revenue and $0.75 EPS, beating expectations. With 25 new store openings, the company raised its 2025 sales forecast to up to $2.60B. Read More

2. NIO Stock Falls on Bigger-Than-Expected Q1 Loss 🚘
   NIO reported a $873.6M adjusted loss despite a 22% revenue bump. Vehicle deliveries rose 40%, but the EV maker's cost-cutting efforts have yet to offset its growing losses. Read More

3. Lululemon Cuts Outlook Despite EPS Beat 🧘
   Lululemon beat EPS expectations with $2.60 but cut full-year guidance. Tariff concerns and cautious U.S. consumer behavior forced modest price hikes. Read More

🔍 Deep Dive: 💼 Layoffs Are Surging Again – Here's Why It's Happening and What It Means? 📉

As inflation lingers and global tensions rise, major companies across the U.S. are making tough decisions—and workers are feeling the impact. From tech to retail to finance, thousands of jobs are being slashed in a new wave of corporate layoffs. But this time, it’s not just about saving money, AI and tariffs are reshaping the workforce in real time. Here’s what’s happening, who’s affected, and why it matters for all of us.

📲 You can read the full article in the Money Masters App.

Outsmart college costs

Ready for next semester? June is a key time to assess how you’ll cover college costs. And considering federal aid often isn’t enough, you might have to consider private student loans.

You’re just in time, though—most schools recommend applying about two months before tuition is due. By now, colleges start sending final cost-of-attendance letters, revealing how much you’ll need to bridge the gap.

Understanding your options now can help ensure you’re prepared and avoid last-minute stress. View Money’s best student loans list to find lenders with low rates and easy online application.

See Money’s Top Lenders

To your financial empowerment, The Money Masters Team

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DISCLAIMER: This information is for educational purposes only and does not constitute financial advice. The publisher does not accept any responsibility for any losses incurred as a result of actions taken based on the information provided. Always conduct your own research or consult with a financial advisor before making any investment decisions.