Trump’s $800B Middle East Deals, Alibaba’s Collapse & the AI Arms Race

Money Masters' Market Pulse Week 20

May 16, 2025

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Dear Money Master,

This week, global markets were rocked by Trump’s blockbuster $800 billion in deals with the Middle East, an aggressive move reshaping U.S. energy, defense, and AI strategy. From $60 billion oil megadeals in Abu Dhabi to a $600 billion Saudi investment spree, America’s economic diplomacy is making a seismic comeback.

Meanwhile, Goldman Sachs reversed its U.S. recession outlook, citing tariff rollbacks between the U.S. and China. Yet even as Beijing and Washington ease tensions, Alibaba disappointed investors, missing earnings and exposing the shaky consumer confidence in China.

In tech, Epic Games declared Fortnite “offline worldwide” after Apple blocked its return, escalating a years-long war over app store power. And UAE’s massive Nvidia chip import deal could make the Gulf a new global AI hub, stirring excitement and raising red flags in Washington.

In this issue, we break down all the biggest stories and earnings including Richemont’s luxury comeback, Cava’s surprising strength, and Novo Nordisk’s leadership shakeup plus an exclusive Deep Dive into the U.S.’s bold economic power play in the Middle East. 🎯🌍💼

📰 Your Daily Financial Digest - May 16th, 2025

🌍 Economics:

  1. Goldman Sachs Cuts US Recession Odds to 35% 📉
    The rollback of US-China tariffs to 30% (from 145%) and 10% (from 125%) has led Goldman to raise China’s GDP forecast to 4.6% and U.S. Q4 growth to 1%. Recession odds now stand at just 35%. Read More

  2. UAE to Buy 500,000 Nvidia AI Chips Annually in Mega Deal 💼
    Trump revealed a pathway for the UAE to secure cutting-edge H100 chips. The move could reshape global AI infrastructure, though critics warn of security risks as the U.S. scraps Biden-era export controls. Read More

  3. Novo Nordisk CEO Steps Down Amid Drug Market Pressure 💊
    CEO Lars Fruergaard Jørgensen will exit amid falling shares and rising competition in obesity treatments. Novo Nordisk stock is down 50% since mid-2024 as rivals gain ground. Read More

💻 Technology:

  1. Apple Blocks Fortnite, Epic Says Game Now Offline Worldwide 🎮
    Fortnite was removed from iOS after Apple denied Epic's U.S. App Store submission. The ban applies globally, ending Fortnite’s availability even on Epic’s own EU iOS store. Read More

  2. Proofpoint Buys Hornetsecurity in $1B+ Deal Ahead of IPO 🔐
    The cybersecurity firm is expanding in Europe with its largest acquisition yet. The deal enhances cloud-based MSP capabilities and positions Proofpoint for a potential public listing. Read More

  3. Microsoft Offers Office Without Teams to Avoid EU Antitrust Fine 🧩
    Microsoft will now sell Office 365 unbundled from Teams at a lower cost, aiming to resolve European Commission concerns and boost interoperability with competing apps. Read More

💹Earnings:

  1. Alibaba Misses Big on Q4 📉
    Alibaba reported revenue of ¥236.5B vs. ¥237.2B expected and net income far below forecasts at ¥12.4B. Despite 279% YoY profit growth, macro headwinds and trade uncertainty weighed. Read More

  2. Cava Beats Expectations as Consumers Trade Up 🥙
    Cava posted Q1 same-store sales growth of 10.8% and revenue of $332M, topping estimates. The company raised EBITDA and new store guidance, though shares dipped on cautious outlook. Read More

  3. Richemont Tops Sales Estimates as Wealthy Keep Spending 💎
    Luxury giant Richemont beat Q4 sales expectations, rising 7% to €5.17B, led by double-digit growth in its Jewellery Maisons. Read More

🔍 Deep Dive: America’s $800 Billion Power Play in the Middle East 🌍💰

While headlines focused on AI chip deals, what flew under the radar was the sheer scale of economic diplomacy being brokered in the Middle East. From aluminum plants in Oklahoma to energy megaprojects and Saudi investments in U.S. defense and tech, over $800 billion in commitments were announced this week alone.

TLDR:

  • 🇦🇪 U.S.–UAE signed $200B in new deals, with Emirates Global Aluminum investing $4B in Oklahoma

  • 🛢️ Exxon, Occidental, and EOG will partner with ADNOC on $60B energy ventures

  • 🇸🇦 Saudi Arabia committed $600B toward U.S. investments in energy, defense, AI, and infrastructure

  • 🏗️ These deals are part of an accelerated $1.4 trillion vision to deepen long-term U.S.–Gulf partnerships

  • 🤝 Trump’s presence signaled an aggressive push to reshape U.S. global supply chains and influence

Dive into the full breakdown and geopolitical implications—only on the Money Masters app. 📲

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