Zeekr CFO on staying competitive in Europe amid tariffs on Chinese EVs
CNBC's Lin Lin speaks with Zeekr CFO, Jing Yuan, on the operating environment facing Chinese electric vehicle makers as they navigate the global tariff environment.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
22 minutes ago
- Yahoo
Is This Stock the Best Way to Play Chinese AI?
While restricted from the latest and greatest chips for now, over half the world's AI researchers are in China. As such, growth investors should try to have some China-related AI exposure in their portfolios. Here's how a South African stock may offer the best way to play Chinese AI. 10 stocks we like better than Naspers › Would you believe that the best way to play China's AI ambitions may be a South African stock? Artificial intelligence has the potential to change the economy. As such, investors should have exposure to some AI companies in their portfolios -- and that includes Chinese exposure. Even Nvidia CEO Jensen Huang recently noted that China is home to half of the world's AI researchers. And the January unveiling of the groundbreaking DeepSeek R1 model showed how China is able to innovate cutting-edge AI, even with limited silicon access. Nevertheless, investing in China carries risks pertaining to its economy, its government, and the market mechanics of owning Chinese stocks. That's why the best way to expose oneself to Chinese AI may be South African holding company Naspers (OTC: NPSNY). It's still very early in the AI races, and in truth, it's hard to know who is going to win out. It could be an upstart AI lab such as DeepSeek in China or OpenAI in the U.S., or one of the existing big tech giants. In this investor's opinion, the existing incumbents are the best bet. These companies have huge technological and financial resources to invest in AI, and AI should also enable existing large businesses to boost revenue and lower costs through better automation and data science. That's why Tencent (OTC: TCEHY) seems like good bet to be a big winner from Chinese AI. Tencent has the largest social media platform in China in WeChat, with more than 1.4 billion users. It's also the largest video game publisher in the China, the largest video and music streaming company, one of the two large digital payments companies, and one of China's cloud computing giants. In addition, Tencent is building its own large model, called Hunyuan, which could lead to vast new AI opportunities if it ends being more performant than DeepSeek and other competitors over time. Tencent stock doesn't trade on U.S. stock exchanges, but it does trade over the counter as an American depositary receipt. However, a better way to play Tencent may be through its largest shareholder, European-domiciled Prosus (OTC: PROSY), which owns more than 23% of Tencent's stock. And the best way to invest in Prosus may be in its largest shareholder, Naspers, which owns 43% of Prosus. Naspers is a 110-year-old South African media company that was fortunate enough to invest in Tencent when it was just a startup in 2001. That investment eventually grew to be worth hundreds of billions, dwarfing Naspers' original business. Naspers then sold portions of its Tencent stake over time, investing in new businesses across food delivery, fintech, classifieds, e-commerce, ed-tech, and other tech startups. However, Naspers began to trade at a huge discount to the value of not only its net assets but also its Tencent stake alone. Management attributed that growing discount to its large size relative to the Johannesburg Stock Exchange. The thinking was that large index funds cap their asset weightings, which meant they had to sell Naspers stock once it reached a certain-sized allocation. In 2019, Naspers created Prosus, a new entity it listed on the larger Euronext Exchange in Amsterdam, and spun it off to shareholders. Today, Naspers owns about 43% of Prosus, which owns all of Naspers' assets outside of South Africa, while Naspers owns some small additional South African assets on its own. The plan didn't really work, though, as, Prosus still trades at a 30% discount its total net assets and even a 9% discount to the value of its Tencent stake alone. Meanwhile, Naspers trades at an even bigger 36% discount to the value of its assets, which is mainly just its 43% stake in Prosus. Owning Tencent at a discount is an attractive proposition, but of course it won't make much of a difference if the valuation gap never closes. That being said, a new development at Prosus could change this dynamic. Before this year, Prosus' businesses were free cash flow negative, so the company was dependent on Tencent stock sales and Tencent's dividend for cash for funding. However, in fiscal 2025, which ended in March, Prosus' non-Tencent businesses turned free cash flow positive for the first time, excluding Tencent's dividend, generating $36 million in positive free cash flow and improving free cash flow by nearly $1 billion over the past three years. Prosus also has a new CEO in Fabricio Bloisi, who took over the job exactly one year ago. Bloisi is an entrepreneur and the very successful former CEO of iFood, now the largest food delivery company in Brazil, which Prosus fully acquired back in 2022. Having a proven startup operator is a contrast with Prosus' prior leadership, and recent results appear to show Bloisi is raising the bar on execution. Before today, if Prosus wanted to buy a company or repurchase its stock at a big discount, it would have to sell part of its Tencent stake. That probably played into the "conglomerate discount," as investors may not have liked the capital allocation of selling a high-quality business in Tencent to buy more risky and unprofitable startups. However, if the other operating businesses continue to grow positive free cash flow outside Tencent, that could change sentiment. Prosus wouldn't have to sell as much or any Tencent stock and could benefit from future compound earnings growth. If a Prosus/Naspers valuation rerating occurs, that could make Prosus and/or Naspers the most attractive way to play Tencent -- and with it, the growth of Chinese AI. Before you buy stock in Naspers, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Naspers wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Billy Duberstein and/or his clients have positions in Naspers and Prosus. The Motley Fool has positions in and recommends Nvidia and Tencent. The Motley Fool has a disclosure policy. Is This Stock the Best Way to Play Chinese AI? was originally published by The Motley Fool
Axios
24 minutes ago
- Axios
Trump tariffs could dampen July Fourth fireworks for 2026
As Americans prepare to light up the skies this Fourth of July, the fireworks industry is sounding the alarm: without tariff relief, the nation's 250th birthday celebration in 2026 could be in jeopardy. Why it matters: A looming tariff burden on Chinese imports is sparking fears of higher costs, supply shortages and even canceled shows. "If the tariff increases again back up to triple digits — let's say 145% — it will cripple this industry," Julie Heckman, executive director of the American Pyrotechnics Association, told Axios. The big picture: 99% of consumer fireworks and 90% of professional display fireworks used in the U.S. come from China, Heckman said. A 25% to 145% tariff imposed under a trade provision known as Section 301 is adding strain to the supply chain and pricing. China typically halts fireworks production during hot summer months due to safety risks, narrowing the window for U.S. importers to place and receive orders. Zoom in: Bruce Zoldan, CEO of Ohio-based Phantom Fireworks, told Axios that his 100 stores have seen a big surge in recent days. Over the weekend, Phantom also opened 1,600 seasonal stands and tents. "People are starting to buy now," he said, noting sales are almost 30% higher per day than last year. "If you wait until July 1st, 2nd, or 3rd, half the merchandise is sold out and the lines are long." Phantom — the nation's largest consumer-based retail fireworks company, supplying thousands of stores nationwide like Home Depot — received 85% of its inventory prior to tariffs, Zoldan said. "There could be a few minor changes, but for the most part, our prices are stable with the last year," he said. "Now, going into next year that's another story." State of play: Industry leaders say they need an exemption like the one President Trump granted in 2019 to move forward with planning for 2026 and beyond. "Thirty percent is not sustainable — not going into what we think will be the biggest celebration, consumption of fireworks ever on record," Heckman told Axios. "This isn't political for us," Heckman said. "We support the president 100%, and themajority of firework entities and their customers — the folks coming in to celebrate Independence Day — they are his base." The other side: The White House pushed back on the fireworks industry's plea for tariff relief. "Real prosperity and patriotism isn't celebrating the independence of our country with cheap foreign-made firecrackers and trinkets," White House spokesman Kush Desai said in a statement to Axios. "It's having a country with booming Main Streets, a thriving working class, and robust manufacturing." Yes, but: Heckman said moving fireworks production stateside is impossible, especially for 2026. "Even if we brought some manufacturing back to the U.S., it wouldn't be optimal," Heckman said, noting it's highly dangerous, labor-intensive and regulated. "We could never produce the volume the U.S. relies on for celebrating Independence Day." What's next: Heckman said her organization has been advocating on Capitol Hill and has a meeting in late July with the U.S. Trade Representative's office. "Right now, we're at a standstill," Zoldan said of the fireworks industry. "We're getting close to the point where we have to place our orders for next year, and they have to start manufacturing right after Labor Day." Zoldan said any delay past Labor Day for submitting orders means a certain percentage won't be manufactured in time to get to America.
CNBC
25 minutes ago
- CNBC
How to play the outperforming financials sector as the second half of 2025 kicks off
(This is a wrap-up of the key money moving discussions on CNBC's "Worldwide Exchange" exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day.) Investors heading into Monday's session were looking at financials as the sector outperforms. JPMorgan also breaks down its year-end outlook for stocks. David Zervos' outlook on financials David Zervos of Jefferies expects financials to be one of the best performing sectors in the second half of 2025. "I'm very optimistic on deal flow and a deregulatory story that starts to hit the energy sector and financial sector," said Zervos. " I think there is a story here with the SLR (Supplementary Leverage Ratio)." He added: "The administration is very keep on wrestling some regulator purview back into the administration … they want to see deals, they want activity and I think they are going to get it." SLR was established in 2014 as part of the Basel III reforms to monitor banks Tier 1 capital. Last week, big banks passed their most recent stress test, but those were reportedly less vigorous than previous years. Passing the stress test lest major banks to issue dividends to shareholders and announce stock buybacks. The dividend plans are expected to be announced this week. The financial sector is more than 26% higher year to date. JPMorgan 2025 year-end outlook; how to play defense sector Joyce Chang of JPMorgan has a S & P 500 forecast of 6,000 implying a 4% pullback from current levels. "I think we are in a range here, you have slower growth coming and we think higher inflation," said Chang. "You also have very steady retail demand and buybacks, we have been looking at $7 billion-$8 billion daily into equity markets. The technicals could squeeze this higher but we are on a stagflationary tilt here. I would careful calling for much higher market." She added on the headwind from tariffs and trade deals: "We are still looking an effective tariff rate that is 14% that is a $400 billion tax." On a sector level, Chang is bullish on defense and aerospace and said she sees more upside in the European players in the space. "What they are doing at NATO is historic (increasing defense spending), even though it is going to play out over a period of time." Since the June 13 Israel strike on Iran, The EUAD Select STOXX Europe Aerospace & Defense ETF and the ITA iShares US Aerospace & Defense ETF are trading very closely. Baidu releases 'Ernie' bot Chinese tech giant Baidu is scheduled to release it's "Ernie" open source large language model on Monday, seen by many as the biggest AI development out of China since the "Deep Seek" release in January. Dan Ives from Wedbush has high expectations, "We believe Baidu has built an impressive 'Ernie' that will send some potential shockwaves across the AI market and it speaks to China becoming more and more successful on the AI front. I don't expect a 'Deep Seek' moment but the early reads are positive." Kevin Carter of EMQQ Global said investors should also pay attention to Baidu's developments in the autonomous driving space with its "Apollo Go" robotaxi service. " AI and Ernie GPT are important to Baidu, but real-world physical AI is happening right now with robotaxis scaling at an incredible rate," said Carter. "Many analysts have reiterated bullish views on the autonomous mobility market where Waymo is the clear US leader. Baidu's 'Apollo Go' is neck and neck with Waymo in the self-driving car market and has given more rides so far than Waymo so far. Apollo Go also has significantly more room to grow as China has 145 cities with 1 million people versus only nine in the U.S ." U.S.-listed Baidu shares are 4% higher year to date.
