Published on 28/10/2025 – 16:58 GMT+1 •Updated
16:59
Apple’s stock reached new heights on Tuesday, trading above $269 a share and pushing the company’s market capitalisation to a record $4 trillion (€3.4tr). That followed stronger-than-expected demand for its latest iPhone 17.
The Cupertino-based technology giant therefore joins the elite club with Nvidia and Microsoft, which both surpassed the same valuation earlier this year.
Nvidia, the semiconductor powerhouse, became the first company in history to hit the $4tn milestone in July 2025. News of soaring AI investments and the firm’s strong profit outlook have continued to lift its share price since then, now approaching $4.7tn (€4tn).
The so-called Magnificent Seven, the seven largest publicly traded technology companies in the world, have been cashing in on the AI boom this year, with tech share prices rising accordingly. Since January, Apple shares are up more than 18%, Nvidia’s nearly 40%, and Microsoft’s close to 30%.
However, Apple has mostly stayed out of the race to invest billions in AI projects. Current market enthusiasm for the iPhone maker’s stock instead stems from the successful launch of its updated iPhone range, along with signs of easing trade and tariff pressures.
According to Counterpoint Research, the iPhone 17 series has outsold the iPhone 16 range by 14% during its first ten days on sale in China and the United States.
Five members of the Magnificent Seven, Alphabet, Apple, Amazon, Microsoft, and Meta, are reporting earnings this week. They will need to demonstrate strong growth and justify the massive spending currently underway in artificial intelligence, amid growing concerns that the sector may be forming a bubble reminiscent of the dot-com boom that burst in 2000.
According to Kate Leaman, chief market analyst at AvaTrade:”Markets move on leadership, and right now, the leadership of Microsoft, Meta, Alphabet, Amazon, and Apple is inseparable from the risk appetite of investors worldwide.”
She noted that more than 40% of S&P 500 gains this year have come via these giants.
“But with that concentration comes fragility,” she added, saying that even as revenues climb, the commentary provided by executives “will critically frame how far and how confidently the market can chase the AI story into 2026”.
A host of enhancements to cross-border payments are promising to enrich the global payments landscape. But implementing change within this complex industry isn’t straightforward.
In today’s instant, interconnected world, a crucial juncture has been reached in cross-border payments. Businesses and consumers – increasingly frustrated with inadequate, inefficient legacy international payment processes – are demanding fast, transparent and low-cost services from their providers. And the need for the industry to deliver is becoming ever-more pressing.
Initiatives are progressing at pace to help facilitate the move to seamless, 24/7 real-time global payments. The aim is to effectively replicate the same client experience that has become easily accessible in the domestic payments space. But change of this scale comes with challenges, and a by-product of the race to deliver real-time cross-border payments is a landscape inundated with different concepts and services, with fragmentation exacerbated by individual countries’ unique sets of payments rules and regulations.
Internationally, initiatives such as the G20 Roadmap for Enhancing Cross-Border Payments, which sets out quantitative targets to help make cross-border payments cheaper, faster, more transparent and accessible by 2027, have catalysed industry-wide efforts to promote greater standardization, legal and regulatory harmonization and payment system interoperability1. Certainly, as the industry edges closer to enhanced cross-border payments, there must be a focus not only on enablement, but standardization to tackle the fragmentation head-on, while also ensuring security and client satisfaction are maximized.
The challenging world of cross-border payments
Moving funds internationally is a complex undertaking, involving multiple parties, navigating time zones and adhering to regulatory requirements of each jurisdiction. This makes the process slow and convoluted, with high costs for both sender and receiver, and a lack of transparency regarding payment status and the associated fees. Given this, it is unsurprising that global payments have become a pain point for clients – and indeed their banking partners. Financial institutions (FIs) are only too aware of the impact of legacy processes on client service, and the very real need to implement enhanced processes to get global payments up to speed – literally – with the demands of the 21st century.
As banks resolve to deliver cutting-edge cross-border payments, they face legacy platform challenges, a lack of real-time infrastructure, and innovation hobbled by regulatory constraints. Against this backdrop, banks must also contend with an increasingly competitive landscape. Inventive, nimble non-bank players with a global presence have thrown their hats into the cross-border payments ring to deliver non-traditional approaches to solve the high cost and obscurity problem. By creating alternative payment networks, fintechs are providing a user experience that many banks are currently unable to match when it comes to speed, transparency and cost.
As FIs seek to overcome these obstacles and provide clients with flexible, instant cross-border payments, aligning with the pillars of the G20 Roadmap is essential for supporting a uniform global payments ecosystem and enabling banks to progress effectively towards the cross-border end goal. Designed to promote faster acceleration of global instant payments, it is invaluable to helping the banking industry most effectively chart a path to a coherent, consistent future.
Fusing the old and the new: combining legacy low-value rails with instant clearing
A key approach the industry is adopting will enhance existing infrastructure, with an emphasis on improving speed and visibility. Banks are readily implementing new industry initiatives – such as those provided by Swift – and other new technologies and processes to meet the needs of their global clients.
For example, by standardizing correspondent banking payment reporting under uniform rules, Swift gpi provides real-time, end-to-end tracking and transparency for cross-border payments. This has subsequently contributed to reduced overall end-to-end processing times, and therefore a better service for clients. Building on the success of Swift gpi, Swift Go standardizes correspondent banking relationships under uniform service level agreements. This enables similar capabilities for the low-value payment space – facilitating more efficient delivery channels such as ACH and instant payments, rather than funds transfers only.
Complementing these developments, financial institutions are embracing interoperability, alternative payment rails, and smart foreign exchange (FX) services to reduce costs and enhance service delivery. BNY’s Swift to ACH initiative allows financial institutions to initiate cross-border payments via ISO 20022 pacs.008 messages and deliver them through the domestic US ACH rail – a lower-cost alternative to traditional USD wire transfers. Beneficiaries receive the full amount by the next day, while originators benefit from reduced transaction costs and the ability to provide a predictable client experience. This service is part of a suite of Low Value Payment resources that include offering FX conversions into a wide range of local currencies for delivery over low-cost payment rails – helping institutions lower costs and stay competitive with fintech offerings. BNY’s extensive correspondent banking network, along with strategic collaborations with fintechs and other service providers, empower us to broaden our offering to deliver a wider range of service beyond conventional financial services.
The combination of industry and proprietary initiatives are helping banks to expand their global payments value propositions and deliver the quality of service that clients are seeking – without the need for prohibitively expensive investment in new infrastructure. Banks are becoming truly competitive in today’s cross-border payments space.
Standing on solid ground: foundations for consistency
The next step is to enable interoperability and connectivity between different payments systems and platforms by aligning compliance and regulatory requirements across jurisdictions. This requires governments, network operators, banks, and industry bodies to move in the same direction, adopt common standards, and create uniform processes for exception management. Encouragingly, progress is already underway across several regions.
This is being addressed in Europe through the EPC’s One-Leg Out Instant Credit Transfer (OCT Inst) scheme, which enables payment service providers (PSPs) to leverage existing Single Euro Payments Area (SEPA) payment rails – including procedures, features, and standards – to facilitate cross-border payments that have one euro leg inside and one leg outside SEPA. For example, in November 2024 EBA CLEARING went live with an OCT Inst Service for RT1, its pan-European, real-time payment processing system for instant credit transfers2.
A similar approach is being adopted in other markets to enable cross-border interoperability using existing domestic rails. One notable example is BNY’s partnership with the Commonwealth Bank of Australia (CBA). Through our correspondent banking relationship, BNY clients can now send real-time payments to Australia 24/7, 365 days a year. This has been made possible by a new feature within the New Payments Platform (NPP), Australia’s real-time payments system. The International Payments Service (IPS) allows the Australian dollar component of inbound cross-border payments to be processed instantly. Previously, international transactions could only be settled via traditional funds transfers. Now, CBA can settle and clear payments on BNY’s behalf 24/7, with beneficiaries able to access funds in as little as 60 seconds – regardless of the sender’s location. With a network of over 2,000 correspondent banks across the globe, BNY is replicating this process with partner banks in other countries as other jurisdictions adopt an international framework within their instant payment schemes.
Elsewhere, the US-Mexico-Canada agreement (USMCA) has been established to enhance cross-border payments between the three countries. As part of the strategy, input from fintechs is being encouraged to share skillsets and develop optimized processes.
Certainly, fintechs and emerging technologies have a role to play in shaping global payments. Blockchain-based services for continuous settlement on a single ledger are emerging as alternatives to correspondent banking. Several markets are increasingly selecting digital wallets as a preferred service option.
Combined, these infrastructure developments may allow global payments to occur at any time, without being limited by business hours, time zones, or working days. This could result in greater cash flow visibility, more efficient supplier management, and improved liquidity control for businesses. Overall, real-time payments have increased flexibility in managing liquidity.
Piecing together the payments puzzle
While the industry unites to create a more standardized environment there will, however, inevitably continue to be different schemes in different markets, all with their own unique models, rules and Service Level Agreements. Banks should consider their target markets and integration with relevant initiatives to effectively meet clients’ international payment needs.
Banks then must provide a one-stop shop for global payments that allows clients to move money fast, anywhere, and anytime with ease. Indeed, with complexity and fragmentation rife, it is the ability to offer a simple, effective experience that will provide the greatest value.
At the same time, the industry must work towards integrating common values and infrastructure within initiatives such as ‘one-leg-out’ settlement, digital wallets and correspondent banking models, to enable the global payments ecosystem as a whole to function seamlessly. In this respect, the G20 Roadmap should be regarded almost as a North Star, guiding the industry towards alignment by following its principles. Doing so will help to instil a common infrastructure framework, centered on standardized rules and principles around 24/7 availability, transparency, finality, fraud prevention, and a common messaging standard.
While fragmentation continues to exist within cross-border infrastructure, building solid foundations and promoting collaboration will champion future solidarity, manage markets holistically for a truly global solution, and map the path for future connectivity.
Joanne Strobel-Cort, Managing Director, Head of International Payments Products Treasury Services | BNY
About The Author
Joanne Strobel-Cort is Head of International Payments Products at BNY, steering strategy, development, and execution of global payments solutions. With over 30 years’ experience, Joanne has held senior roles at Wells Fargo—leading segment solutions, technical sales and network management—and served as Head of Payables Products at Citizens Bank, with prior transaction banking positions at Deutsche Bank, ABN AMRO and Citibank. An industry authority, she has participated in SWIFT councils, chaired CHIPS and BAFT committees, spoken at SIBOS and published articles on cross-border payments.
Global tensions are escalating over rare earth minerals after China applied severe export controls on critical minerals required to manufacture almost everything – from cars to weapons. The move has also sparked concerns about the global supply chain.
Strategic meetings will be held between European Union officials and Chinese representatives, starting with a videoconference Monday, to be followed by a meeting in Brussels the following day.
Meanwhile, US President Donald Trump will meet his Chinese counterpart Xi Jinping on Thursday in South Korea, with financial markets attentive to whether the world’s two largest economic powers can bury the hatchet in their trade war.
At the heart of the dispute is China’s 9 October decision to restrict exports of rare earth elements. While these controls were initially a response to US tariffs, the EU has become collateral damage in the dispute and is considering ways to respond.
Why is China restricting rare earth exports?
Tensions first emerged between the US and China after Donald Trump returned to the White House and carried through an aggressive tariff policy – which the administration argues is needed to narrow a growing trade deficit – on allies and rivals alike.
On 2 April 2025 — coinciding with what Trump defined as US’ “Liberation Day” — Washington announced a 34% tariff on Chinese goods imported into the country, which, added to the existing 20%, brought total duties to 54%.
The trade war escalated after China responded with counter-tariffs, which surpassed the 100% threshold, making trade between the two practically impossible. Beyond the tariffs, to hit back, China looked to weaponise its monopoly over rare earth elements, imposing additional export restrictions on 4 April that have since remained in place.
Rare earths are a group of 17 elements used across the defence, electric vehicle, energy and electronics industries.
The world, including the EU, is heavily dependent on China, as the country controls 60% of global production and 90% of their refining, according to the International Energy Agency (IEA).
After a short truce, the dispute flared up again in September, and on 9 October 2025, China decided to extend its control over rare earth elements from seven to 12. The announcement was seen as China building leverage over the United States. The meeting between the two sides this week is crucial in dictating the path forward.
Meanwhile, the EU is caught between the two. While these restrictions aimed mostly at the US, it has also impacted the European industry. The controls take the form of licenses that are difficult to obtain, with European companies bearing the brunt, as European Commisisioner for Trade Maroš Šefčovič has repeatedly pointed out.
How is the EU responding?
In a speech over the weekend, European Commission President Ursula von der Leyen, said the Union is prepared to use all the tools at its disposal to combat what some European leaders, including French President Emmanuel Macron, have described as economic coercion from China.
The remarks from the Commission president alluded to what is known as the anti-coercion instrument – designed with China in mind but never used.
The ACI, adopted in 2023, would allow the EU hit back at a third country by imposing tariffs or even restricting access to public procurement, licenses, or intellectual property rights.
“In the short term, we are focusing on finding solutions with our Chinese counterparts,” Commission president Ursula von der Leyen said on Saturday, warning, however, “But we are ready to use all of the instruments in our toolbox to respond if needed.”
European Council President António Costa met on Monday with Chinese Premier Li Qiang on the sidelines of the ASEAN Summit in Kuala Lumpur.
“I shared my strong concern about China’s expanding export controls on critical raw materials and related goods and technologies,” Costa said after the meeting, adding: “I urged him to restore as soon as possible fluid, reliable and predictable supply chains.”
Yet, tensions persist.
A planned meeting between Šefčovič and his Chinese counterpart Wang Wentao was cancelled and replaced by high-level talks between Chinese and European experts, a Commission spokesperson has confirmed. A video conference took place on Monday, and Chinese officials are set to arrive in Brussels for a meeting on Thursday.
On Saturday, Von der Leyen announced a new plan – RESourceEU – exploring joint purchasing and stockpiling of rare earth, as well as “strategic” projects for the production and processing of critical raw materials here in Europe.
The EU also hopes to diversify its suppliers worldwide.
“We will speed up work on critical raw materials partnerships with countries like Ukraine and Australia, Canada, Kazakhstan, Uzbekistan, Chile or Greenland,” von der Leyen said.
Global markets were buoyed on Monday morning by expectations of another Fed rate cut and growing optimism that the US and China are moving closer to a trade deal, following comments from President Donald Trump.
The optimism wiped out gains in safe-haven assets such as gold futures and boosted stock exchanges across the globe.
Yet, leading European benchmark indexes opened mostly flat, except for Milan’s FTSE MIB, which was up by 0.61%. Madrid IBEX 35 also gained 0.37% by around 11:00 CEST.
At the same time, European benchmark STOXX 600, as well as the FTSE 100 in London, remained nearly flat. The DAX in Frankfurt gained 0.15% while Paris’ CAC 40 lost less than 0.1%. This came after credit rating agency Moody’s changed France’s outlook from stable to negative on Friday.
Investors in Europe are closely watching for signs of economic health, with one of the strongest indicators — the first reading of the eurozone’s third-quarter GDP — due on Thursday.
On the same day, the European Central Bank (ECB) is scheduled to hold its monetary policy meeting. Given that inflation in the bloc has remained around the bank’s 2% target, the ECB is expected to hold interest rates steady this week for its third straight meeting. The key deposit rate has been at 2% since June.
US-China relations
Across the globe on Monday, US futures were mostly up in pre-market trading. This came as Asian shares rallied too, with Japan’s benchmark Nikkei 225 topping 50,000 for the first time.
Later this week, the US President has a scheduled meeting with the Chinese leader Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation forum (known as APEC), to discuss the trade deal between the world’s two strongest economies.
US and Chinese officials confirmed on Sunday that they had reached an initial consensus for Trump and President Xi Jinping to finalise during a meeting later in the week.
“I have a lot of respect for President Xi,” Trump told reporters after visiting Malaysia for a summit of Southeast Asian nations, where he reached preliminary trade agreements with Malaysia, Thailand, Cambodia, and Vietnam.
“I think we’re going to come away with a deal,” Trump said.
And investors see it as a strong signal. According to Stephen Innes of SPI Asset Management: “This isn’t just photo-op diplomacy. Behind the showmanship, Washington and Beijing’s top trade lieutenants have quietly mapped out a framework that might, just might, keep the world’s two largest economies from tearing up the field again.”
The enthusiasm brought about a shift in risk-taking among investors, demonstrated by a fall in gold futures. The safe-haven asset’s continuous contract fell by almost 2% on Monday morning, as an ounce was priced at $4,055.50.
The euro and Japanese yen remained flat against the US dollar. One euro was traded at $1.1638, while the greenback cost ¥152.8070. The British pound climbed 0.26% against the US dollar, and the rate was at $1.3345.
Crude oil prices fell after European markets opened, with both benchmarks trading nearly 1% lower. The US benchmark WTI crude’s price was $61.06 a barrel, and Brent was at $65.47.
In other dealings, leading cryptocurrencies were up. CoinDesk’s Bitcoin Price Index (XBX) gained 4.86% and climbed to $115,395.34. Ethereum cost $4,171.84, up by 4.82% on Monday morning in Europe.
Another Fed rate cut on the cards, coupled with Big Tech reports
Wall Street hit record highs on Friday, after lower-than-expected inflation numbers from the US fuelled further hope that the Federal Reserve is about to cut interest rates further this Wednesday.
The data on inflation was encouraging because it could mean less pain for lower- and middle-income households struggling with still-high increases in prices. Even more importantly for Wall Street, it could also clear the way for the Federal Reserve to keep cutting interest rates in hopes of giving a boost to the slowing job market.
The Fed just cut its main interest rate last month for the first time this year, but it’s been hesitant to promise more relief because lower rates can make inflation worse, beyond boosting the economy and prices for investments.
Meanwhile, a flood of big tech companies’ earnings is on its way this week, with Microsoft, Meta and Google-parent Alphabet reporting on Wednesday. Apple and Amazon’s numbers are due to be released on Thursday.
Better-than-expected profits could fuel hopes for steady growth in the US. Information is scarce about the current state of the world’s biggest economy due to the prolonged government shutdown.
As Indonesia rapidly embraces digital transformation, Bank Mandiri is positioning itself as the nation’s financial backbone—powering connections across corporates, MSMEs, and consumers. Through its digital wholesale super-platform, Kopra by Mandiri, the bank has created a unified ecosystem that handles nearly a third of Indonesia’s digital transactions.
How does Bank Mandiri contribute to advancing Indonesia’s digital economy?
Bank Mandiri plays a pivotal role in driving Indonesia’s digital economy. As the country’s largest wholesale bank, we have the scale and ecosystem to connect every layer of the value chain. Through Kopra by Mandiri, we serve over 30,000 wholesale clients, from large corporates to suppliers and distributors, helping them digitalize their business processes.
We’ve built a tightly connected ecosystem by integrating three main platforms: Kopra by Mandiri for corporates, Livin’ by Mandiri as a super app for individuals, and Livin’ Merchant for MSMEs. Together, they account for roughly 30% of Indonesia’s digital transaction market share, positioning Mandiri as a key catalyst for national digital transformation.
What innovation sets Bank Mandiri apart from competitors?
Last year, we completely revamped Kopra by Mandiri, enhancing its interface and user experience to global standards. Every feature was redesigned to simplify transactions while maintaining full functionality. The result is a platform that, in many ways, meets or exceeds leading international benchmarks.
Kopra now offers a comprehensive suite of cash management, trade finance, and value-chain solutions. Clients can process up to 50,000 transactions in one go, customize liquidity schemes via drag-and-drop tools, and receive AI-based bill reminders and personalized biller recommendations. On the trade side, Kopra supports digital issuance and QR-verified guarantees, with real-time tracking and full ERP integration for faster, more seamless operations.
How does Kopra Embedded Finance strengthen Mandiri’s open banking strategy?
Kopra Embedded Finance extends Mandiri’s digital reach, enabling more than 200 API-based services that connect directly with clients’ ERP systems. This allows treasury teams to manage payments, collections, and working capital securely—without leaving their internal platforms. Over 1,000 clients already leverage this capability, making Kopra a regional benchmark in open-banking treasury innovation.
How does Kopra create value across the value chain?
Kopra builds closed-loop ecosystems linking corporates, suppliers, retailers, and consumers. By integrating with Livin’ by Mandiri, businesses can send bills and receive payments instantly, while Livin’ Merchant supports MSME digitalization in sectors such as FMCG. This connected ecosystem enhances convenience, trust, and sustainable growth.
How is AI shaping Kopra’s evolution?
We’re embedding AI to forecast cash flows, personalize product recommendations, and detect anomalies. Soon, we’ll launch AI-powered trade document verification and transparency scoring to strengthen risk management. Ultimately, our mission is simple: use technology to simplify complexity and empower clients to grow smarter.
September was a banner month for US investment-grade bond issuance as companies rushed to borrow in a market benefiting from falling interest rates and tight risk premiums.
PitchBook tallied $56.4 billion in new bonds through the first week of September, with the month’s total swelling to over $172 billion. The surge followed the Federal Reserve’s rate cut of 25 basis points at its Sept. 16-17 meeting. Lower borrowing costs make it cheaper for companies to fund acquisitions or shore up corporate coffers. On Sept. 18 alone, at least nine corporate issuers raised nearly $15 billion in bonds.
“That was a busy day,” says Nick Elfner, co-head of research at Boston-based fixed income manager Breckinridge Capital Advisors. The investment-grade bond market has repeatedly demonstrated its ability to meet corporate funding needs, he adds, particularly when conditions are relatively stable and investor demand runs strong.
Take AT&T, for example. The telecom launched a four-part note-offering totaling $5 billion, with proceeds earmarked for general corporate purposes including refinancing maturing debt and funding pending acquisitions. BNP Paribas, Bank of America, Citigroup, JPMorgan, and Mizuho served as arrangers.
The same week, another group of global banks including Deutsche Bank, Goldman Sachs, and HSBC led an $18 billion bond deal for Oracle Corp.
The flurry of deals marks a shift from the previously cautious landscape, where uncertainty around interest rates, inflation, and President Donald Trump’s intermittent tariff announcements had restrained bond issuance and widened credit spreads.
Yet, US issuers are not the only ones capitalizing on cheaper debt. Reuters pulled data from LSEG to show that issuance of “Maple bonds” by foreign borrowers reached $16.32 billion as of Sept. 25, surpassing last year’s $16.28 billion and outpacing all of 2024, which totaled $13 billion. More aggressive Bank of Canada policy, along with low yields and tight risk premiums in both the US and Canada, is creating a favorable environment for companies to invest and expand while investors remain eager to provide capital.
“We think strong corporate bond issuance can continue,” Elfner says. Lower borrowing costs will also allow for corporates to refinance debt and, perhaps, undertake projects that may have been mothballed due to higher financing costs.
Global Finance presents its 32nd annual list of the best banks worldwide.
If one word described the global economy in 2024, it would be “resilient.” Growth was up slightly, with global GDP growth hovering around 3.1%, while the pace of global inflation slowed to approximately 5.8% from 6.8% the previous year, according to the International Monetary Fund.
Although many thought a financial crisis was imminent, none materialized as businesses continued to focus on strengthening and diversifying their supply chains, implementing digitalization strategies, and responding to rising geopolitical tensions.
In this environment, French banking giant Societe Generale took numerous crowns, winning as Global Finance’s World’s Best Bank, World’s Best Frontier Market Bank, World’s Best Transaction Bank, and World’s Best Supply Chain Provider—Bank awards.
Throughout 2024, the financial group generated €4.2 billion in group net income (up 69% from the previous year) on €26.8 billion in revenue (up 6.7%) through its 26 million clients worldwide while streamlining its core businesses and divesting others.
The Return Of The M&A
The bright spot for 2024 was the return of M&A.
“On the surface, it may appear difficult to remain sanguine after anticipating a full market resurgence for several years,” wrote Jake Henry and Mieke Van Oostende, senior partners at McKinsey, in the firm’s 2025 annual M&A report. “But many of the dynamics that stymied dealmaking for the past three years, including some that limited 2024 global deal value and volume to roughly the average of the past 20 years, are receding.”
According to data from WTW’s Quarterly Deal Performance Monitor, 15 megadeals worth more than $10 billion each closed last year, a 36% increase from 2023, and there were 162 deals valued between $1 billion and $10 billion, for a 21% increase. The number of deals totaling between $100 million and $1 billion grew approximately 15% over the same period.
Although not the “full throttle comeback that many dealmakers hoped for in 2024, performance improved (in some regions, significantly),” the McKinsey report noted. “Global dealmaking was curbed by a variety of pressures and delivered moderate returns, with deal value up 12% to $3.4 trillion.”
The year’s M&A deals were not evenly distributed geographically, however, according to WTW. North America saw the most deals closed, with 361, up 14% from the previous year. Europe notched 155 deals, up 32% from 2023. In the Asia-Pacific region, companies concluded 163 deals, representing a 5% increase.
Overall, Global Finance’s Best Banks led the way in helping to grow the M&A pipeline.
Along with the World’s Best Bank award, global honors this year include recognition as Best Corporate Bank, Best Consumer Bank, Best Banks Worldwide in Emerging and Frontier Markets, and Best Sub-Custodian Bank. All are being announced here for the first time.
Previously announced honors include Best Global Transaction Bank, Best Bank for Sustainable Finance, Best Islamic Financial Institution, Best Investment Bank, Best Cash Management Bank, Best Trade and Finance Providers, Supply Chain Provider—Bank, Best Foreign Exchange Provider, Best Private Bank, and Best SME Bank.
Methodology
The editors of Global Finance, with input from industry analysts, corporate executives, and technology experts, selected the global winners of the World’s Best Banks 2025 using information provided by entrants as well as independent research based on objective and subjective factors.
Entries are not required, but experience has shown that the information supplied in an entry can increase the chances of success. In many cases, entrants present details that may not be readily available to the editors.
Judges considered performance from January 1 to December 31, 2024. Global Finance applies a proprietary algorithm to narrow the list of contenders and assign a numerical score, with 100 signifying perfection. The algorithm weights a range of criteria for relative importance, including knowledge of the sector, market conditions and customer needs, financial strength and safety, strategic relationships and governance, capital investment and innovation, scope of global coverage, size and experience of staff, risk management, range of products and services, and use of technology. The panel tends to favor private-sector banks over government-owned institutions.
The winners in each category are those banks and providers that best serve the specialized needs of corporations engaged in global business.
Slawomir Krupa, CEO
World’s Best Bank 2025
Societe Generale
In a year of economic uncertainty, persistent inflation and supply chain reorganization, Societe Generale stood head and shoulders above its global competition, earning the titles of World’s Best Bank and World’s Best Frontier Market Bank.
Its three core businesses—French Retail Banking; Global Banking and Investment Solutions; and Mobility, International Retail Banking, and Financial Solutions—generated €4.2 billion in group net income (up 69% from the previous year) on €26.8 billion in revenue (up 6.7%).
Throughout the year, Societe Generale combined strategic investments in cutting-edge technology, sustainability, and innovation with a drive to streamline core businesses while divesting non core areas.
The French banking giant has leveraged AI in approximately 420 use cases across its operations to enhance customer support via its Sobot chatbot and Elliot callbot, personalize advice for private banking clients using its Synoé platform, and numerous middle- and back-office operational, security, and risk management functions.
The bank surpassed its goal of contributing €300 billion to sustainable finance by 2025, a year ahead of schedule. It has since raised its target to €500 billion, comprising €400 billion in financing and advisory services and €100 billion in sustainable bonds, by 2030. Sustainable finance deals, including acting as the mandated lead arranger for a $1.2 billion green loan that enabled ReNew Power to develop a combined wind, solar, and battery storage infrastructure in its home market of India, have helped Societe Generale maintain a leading global role in this field.
Among the new offerings the bank debuted in 2024 were a joint venture with AllianceBernstein, dubbed Bernstein, which combines the two companies’ equity research, sales, and trading operations.
Societe Generale meanwhile strengthened its capital base by simplifying its business model, improving efficiency and increasing existing synergies through a series of strategic divestitures. It exited its private banking operations in the UK and Switzerland with the sales of SG Kleinwort Hambros and Societe Generale Private Banking Suisse and continued divestment of its African subsidiaries in Benin, the Democratic Republic of Congo, Madagascar, and Morocco.
Despite these changes, Societe Generale remains the leading player in frontier markets through its Global Transaction Banking network, which spans more than 50 countries and offers a range of integrated services including managing cross-border payments, liquidity, and trade finance. Leveraging its expertise in sustainability, the bank has partnered with the International Finance Corporation to accelerate financing of energy transition projects in developing markets through its Solar Pack initiative.
Javier Rodriguez Soler, Global Head of Sustainability, Corporate & Investment Banking
World’s Best Corporate Bank 2025
BBVA
BBVA claims the title of World’s Best Corporate Bank for the third consecutive year, having expanding its market share and deal leadership during 2024. It led 86 deals across telecommunications, energy, infrastructure, consumer goods, and services for a total volume of €5.16 billion. Among these was the €6.6 billion underwriting of MasOrange, formed by the merger of the telecom companies Orange and MasMovil.
BBVA also reinforced its commitment to sustainable finance, leading the €383 million project financing of Repsol Renovables’ Gallo portfolio, a 777-megawatt solar and battery storage facility spanning Texas and New Mexico as well as the refinancing of the Monegros wind project in Aragón. Additionally, the bank directed €51.1 billion into sustainable financing throughout the year.
All told, BBVA’s Corporate & Investment Banking division earned some €5.8 billion in revenue in 2024, up 27% from the previous year, while increasing its net attributable profits by 30%.
Helping to fuel its growth has been the bank’s strategic investment in its infrastructure and technology partnerships. BBVA’s internal AI Factory has applied AI and machine learning to enhance customer experiences and streamline internal processes.
Challa Sreenivasulu Setty, Chairman
World’s Best Consumer Bank 2025
State Bank of India
Continued investment in digitalization, a growing global footprint, and innovative offerings earned the State Bank of India (SBI) its first World’s Best Consumer Bank award. Building on a history that dates back to 1806, SBI continues to enhance a menu of digital offerings that serve 132 million internet banking and 287 million mobile banking clients.
SBI reimagined its You Only Need One (YONO) banking and lifestyle mobile app in 2024 with its midyear announcement of YONO 2.0. The latest version enables users to initiate transactions at an SBI branch and complete them on the app, and vice versa, and features a more modular architecture for faster processing and transaction speeds. Other innovations include the debut of a tap-and-pay function in its BHIM SBI personal banking app, which leverages India’s Unified Payment Interface, as well as an end-to-end digital loan application for the bank’s Surya Ghar Loan scheme for the installation of rooftop solar collectors.
Despite its stress on digitalization, SBI also invested in 600 new branches across India to improve accessibility for underserved rural and semi-urban areas: more than fourfold the number of branches it opened the previous fiscal year.
Jamie Dimon, Chairman and CEO
World’s Best Emerging Markets Bank 2025
JPMorgan Chase
One of the largest financial institutions globally, JPMorgan Chase (JPMC), wins the World’s Best Bank for Emerging Markets award for its broad set of offerings, continued focus on serving emerging markets, and overall expertise.
Although many of its competitors are pulling out of emerging markets, JPMC is expanding into them. It plans to enter new African markets or deepen its existing presence there “every couple of years or so,” Chairman and CEO Jamie Dimon told Reuters last October. The bank set up a representative office in Kenya that month and new offices in Côte d’Ivoire later in the year.
JPMC had a strong 2024, raising more than $400 billion in emerging market debt, including on a rising number of debt-for-nature transactions that enable countries to repurchase existing debt on better terms and use the savings to benefit the environment. El Salvador utilized the structure to secure an approximately $1 billion loan from the bank, then used it to repurchase $1.03 billion in a tender offer. The savings were allocated to improve and protect the country’s Lempa River watershed.
Besides raising debt, JPMC’s advisory services were strengthened by the launch of a Center for Geopolitics, which provides expert analysis of geopolitical trends aimed at helping clients navigate the complexities of the global economy, manage risks, and identify new opportunities.
Emerging market clients also benefit from the bank’s global infrastructure and sizable investment in its technology platforms, JPMC says. Access to these cutting-edge systems gives clients a more efficient, secure, and convenient way to manage their finances and business operations.
World’s Best Frontier Markets Bank 2025
Societe Generale
Frontier markets are playing an increasingly important role in the global economy, as they offer significant growth, albeit with smaller capitalization and higher volatility. Banks serving frontier markets must provide a comprehensive blend of corporate and commercial banking services that go beyond lending and deposits to more complex offerings, such as trade finance, securities servicing and sustainable finance. French banking giant Societe Generale is a leader across the board, with its broad range of offerings, and has beaten out its competitors to win this year’s World’s Best Frontier Market Bank award.
The bank, with over 160 years of experience, boasts a global network spanning more than 50 countries and offers highly integrated solutions for trade finance, cross-border payments, and liquidity management.
Through increased investment in artificial intelligence and other technologies, the bank has automated numerous processes and digitized others. In securities servicing, the company has leveraged generative AI, smart workflows, and robust data management to provide an enhanced client experience for its corporate and institutional clients, resulting in a doubling of client recommendation rates and increased participation in satisfaction surveys.
Meanwhile, Societe Generale has made great leaps in sustainable finance. The bank has committed 300 billion euros to sustainable finance by 2024 and introduced a new target of 500 billion euros by 2030, with a focus on decarbonization in sectors with the highest carbon-intensive emissions. To further strengthen its position, the bank also launched its Sustainable Global Transaction Banking Framework, which enables businesses to assess and monitor the environmental and social impacts of their working capital, trade, and liquidity management activities.
Societe Generale also signed a collaboration framework agreement with the World Bank’s International Finance Corporation to accelerate sustainable finance through investments in clean energy, water, and other infrastructure projects, as well as in agribusiness and women entrepreneurs.
World’s Best Transaction Bank 2025
Societe Generale
Societe Generale excels at navigating the complexities of realtime payments, offering rigorous testing and dedicated IT support including client training. While clients expect similar functionalities for domestic and cross-border payments, Jean-François Mazure, head of Cash Clearing Services, notes that they struggle to differentiate. Converging both payment types, which hinges on interlinking financial market infrastructures, is critical, he argues.
Numerous market initiatives, including immediate cross-border payments (IXB) between the US and Europe, face significant hurdles, Mazure warns: “It is truly complex from a compliance and legal framework standpoint. So, for the moment, none of these initiatives has succeeded in scaling up.”
To interconnect real-time payment systems, he says, the most likely way forward is to adopt the “one leg out” (OLO) principle already in operation for transactions involving one bank inside the European Economic Area and one bank outside. But all parties will need to continue to align for interconnectivity to be achieved, he adds. OLO’s success hinges on compliance with ISO 20022 standards as well as resolving commercial and liability challenges across various schemes.
Mal Cullen, CEO
World’s Best Sub-custodian Bank 2025
CIBC Mellon
CIBC Mellon continues to refine its comprehensive asset-servicing business model, emphasizing innovation, process efficiency, and client service. Jointly owned by Bank of New York Mellon and Canadian Imperial Bank of Commerce, CIBC Mellon leverages CIBC’s local knowledge in the Canadian market combined with BNY’s technology and global custody infrastructure to serve institutional clients in Canada and globally. The combination has yielded consistent growth; assets under administration recently surpassed C$3 trillion ($2.2 trillion).
Ongoing priorities focus on broadening customer relationships and services through continual investment in IT and partnerships with the fintech sector, aimed at providing greater levels of core service automation along with enhanced transaction transparency and execution efficiency. This includes better straight-through processing for a seamless and secure transmission of client data, investment in pre- and post-trade communication services for trade matching and routing, and tracking of the settlement lifecycle.
Project Fuel, an enterprise-wide data and innovation initiative, is focused on transforming the client experience by equipping customers with tools to manage and analyze data more effectively, improving transparency and accelerating decision-making.
CIBC Mellon continues to enhance its online reporting platform, NEXEN, which integrates data and predictive analytics to provide clients with faster, real-time cash position and activity reporting through an improved user interface. Digital assets are expanding in the market; the bank is collaborating with stakeholders in Canada and globally and with BNY’s digital-asset unit to develop offerings in this area. This involves bolstering its data analytics capabilities and digital infrastructure through enhanced customization, automation, and service flexibility with a view to assisting clients to launch new offerings including alternative-asset ETFs and cryptocurrency funds.
Su Shan Tan, CEO
World’s Best Bank for Sustainable Finance 2025
DBS
DBS aims to green Asia’s economy by acting as an environmental-transition catalyst for anchor companies, mid-caps, and SMEs. The bank provides transition-related financing for these organizations at the corporate, project, and asset levels. Among its offerings are green, sustainability-linked, and social loans and bonds, along with carbon-market financing and other products.
Standout transactions in 2024 included a loan to LG Energy to construct a plant in Poland that manufactures batteries used in electric vehicles. A HK$3 billion (about $385.7 million) loan to the Hong Kong Housing Society will help create affordable residential projects. A S$300 million (about $224.2 million) bond will help Singaporean developer CapitaLand develop projects in alignment with green finance frameworks.
In addition, the bank develops analytical tools to track and analyze climate data and engages with industries—notably in the power, automotive, steel, shipping, and real estate sectors—and policymakers to chart paths to a healthier environment.
Khaled Yousef AlShamlan, Group CEO
World’s Best Islamic Financial Institution 2025
Kuwait Finance House
Kuwait Finance House (KFH) is recognized as the World’s Best Islamic Financial Institution for strengthening its franchise in multiple markets, for financing innovation, and for its overall operating performance. KFH provides services to customers in the Middle East, Europe, and Asia through extensive distribution channels, with an increasing emphasis on digitalization. The bank has subsidiaries in Kuwait, Turkey, Egypt, Bahrain, Iraq, Malaysia, the UK, and Germany.
KFH has made significant strides toward digital transformation in risk management, adopting the latest advancements in AI, machine learning, and advanced analytics to enhance risk measurement and monitoring. Tam Digital Bank, KFH’s digital bank in Kuwait, recorded strong customer numbers and transaction growth in 2024.
The bank’s financial profile is noticeably sound; a successful capital management program yielded a capital adequacy ratio (CAR) of 19.9%, considerably exceeding regulatory requirements and promising to support growth in the coming years. Return on average assets is good at 1.8% and loan asset-quality metrics are robust. KFH’s Islamic banking products and services cover commercial, retail, and corporate banking as well as real estate, trade finance, project finance, asset management, and investments.
World’s Best Investment Bank 2025
BofA Securities
Against the backdrop of thriving global stock markets and rising debt-finance activity, Bank of America (BofA) Securities’ global operations achieved an impressive 43% year-over-year jump in investment banking fees as of the fourth quarter of 2024.
The numbers were buoyed mainly by the bank’s three big areas of operations: North America, Latin America, and Europe, where the bank controlled a commanding 8.3%, 9%, and 4.4% of total investment banking fees, respectively. That boosted revenue for the full year to nearly $5.5 billion, according to Dealogic, representing around 6.2% of the global investment banking market.
BofA also scored big on M&A despite somewhat subdued activity in the field, serving as lead buy-side advisor on the $1.9 billion acquisition of Hawaiian Airlines by Alaska Air. The bank also acted as sole buy-side financial advisor on Keurig Dr Pepper’s $990 million acquisition of energy beverage company GHOST.
Brian Moynihan, Chairman and CEO
World’s Best Bank for Cash Management 2025
Bank of America
Reflecting the demand for consistent global visibility and control, Bank of America saw the app version of its CashPro platform surpass $1 trillion in payment approvals in 2024. CashPro allows clients to manage treasury operations across multiple channels: online, app, APIs, and file-based interfaces.
“One thing that distinguishes CashPro is its global consistency,” says Tom Durkin, head of CashPro at BofA’s Global Payments Solutions, “so that when a company’s finance team has team members in different countries, they’ll all have access to the same tools, views, and processes. The advantages are obvious: better visibility and control and no additional financial outlays.”
Much of CashPro’s success is due to BofA’s close engagement with clients, Durkin notes, particularly those who participate in client board meetings.
“This dialogue is so important,” he says. “We do deep dives into our clients’ priorities and challenges, we present options for new functionality and discuss whether those innovations are going to solve their real-world issues.”
The bank’s strategic vision for CashPro “will always be to provide a best-in-class platform that is personalized, predictive, and proactive,” he adds. “One recent demonstration is how we’ve embedded CashPro into our clients’ own systems through the CashPro Network, a collaboration with third-party providers allowing quick, easy connection to the bank with little to no investment.”
World’s Best Trade Finance Provider 2025
BNP Paribas
Offering global trade finance in 44 countries and more than 100 trade centers across more than 60 countries gives BNP Paribas a strong geographical foundation for its offering of seamless trade finance solutions across borders, supporting client growth throughout the entire trade cycle.
A broad range of traditional trade finance and working capital management solutions and substantial investment in technology, including web-based e-banking platforms like Connexis Guarantee, Connexis Trade, and Connexis Supply Chain, helps the French multinational support clients with complex international trade operations. Leveraging digital solutions, such as blockchain and AI, streamlines processes, improves efficiency, and enhances customer experience.
In 2022, BNP Paribas launched a program using AI to streamline the processing of trade finance documents and improve traceability for its clients. Since then, the bank has rolled the program out to 15 countries and processed 40,000 transactions.
“We have implemented AI technology to help classify, extract data, and automate controls. This is live today and being further expanded in terms of functionalities,” says Jean-François Denis, global head of Trade Solutions. “Bank guarantees also present the potential for AI usage, such as verifying guarantee clauses against acceptable clauses, policies, and guidelines. Anti-money laundering is yet another area where we have deployed AI.”
World’s Best Supply Chain Finance Provider – Bank 2025
Societe Generale
The French banking giant introduced a new workflow product in 2024 that includes external data and better analyzes clients’ working capital needs. The new offerings include peer comparison of key receivables and payables financing elements.
On the sustainability front, Societe Generale offers an ESG version of its full range of solutions, including green or social-focused factoring, forfaiting, and sustainability-linked supply chain financing (SCF). The bank also offers a dedicated and simplified solution for retail clients and SMEs based on their ESG rating.
Finally, establishing connectivity to CRX Markets, the marketplace for working capital finance, has improved support for SocGen’s largest clients, helping to grow the bank’s SCF programs.
World’s Best Global Foreign Exchange Bank 2025
UBS
Upon completing its megamerger with Credit Suisse in May 2024, UBS leveraged its already best-in-class corporate banking, foreign exchange (FX), and product offerings for a record-breaking year. Not only did its global operation more than double analysts’ expectations in the third quarter of 2024, booking a massive $1.4 billion in net income, but it did so with a significant contribution from its corporate banking division, which saw revenue jump by more than 8% year over year.
Those numbers received a massive boost from UBS’s thriving FX operation, which averaged over $125 billion in daily electronic FX trades, with more than 2,500 active global clients. The bank posted substantial growth across several geographies and currency pairs. Among the highlights: solid profitability growth in Middle Eastern and Northern African currencies and a massive 40% market-share increase in Scandinavian currencies. In Asia, UBS’s continued efforts to improve its already top-tier suite of electronic FX capabilities paid off handsomely in China and Singapore, where it has doubled down on its data center improvement efforts.
On the technology front, UBS further expanded the limits of the global FX market, hosting the world’s first intraday FX swap in a regulated venue in July. The bank recently launched its blockchain-based multicurrency payment solution, UBS Digital Cash, processed through its flagship FX Engine Room, enhancing its overall FX offering.
World’s Best Private Bank 2025
J.P. Morgan Private Bank
For the fifth consecutive year, J.P. Morgan US Private Bank has excelled at adapting to shifting macroeconomic conditions, delivering best-in-breed results to its clients. Riding the phenomenal rebound in global investing built on improving monetary conditions and subsiding inflationary pressures, the bank saw client assets rise by 24% over the previous year, totaling more than $2.5 trillion under supervision.
Against this backdrop, revenues increased 18.5%, with pretax income showing an even more significant 36% boost year on year.
On the product side, J.P. Morgan made significant strides at integrating advanced AI tools, including JPMorgan Chase’s Connect Coach and the Chase Connect mobile app, into its award-winning product portfolio. These include risk analytics and portfolio management services that serve as a benchmark for many in the industry. Alongside these product advances, the bank added over 300 expert advisors to its team, helping it attract more than 5,400 new clients.
Roberto Sallouti, CEO
World’s Best SME Bank 2025
BTG Pactual Empresas
BTG Pactual Empresas boasts an SME lending portfolio that reached R$22.1 billion (approximately $3.9 billion) in the first quarter of 2024, its SME credit book growing 52% year on year. SME business now accounts for 12% of BTG Pactual’s total portfolio.
The bank attributes its SME growth in part to its digital capabilities. Its digital platform offers an integrated portfolio of SME products and services, providing access to the bank’s credit, guarantee, insurance, investments, foreign exchange, and derivatives products. Associated services accessible via the platform include creation of invoices payable by QR code; online invoicing; instant electronic bank transfers; open banking; payments to suppliers, tax authorities, and utilities; budgeting and categorized spending services; and digital receipts. The platform offers more than 45 integrations, including Telegram and Google Workspace, along with a extensive range of productivity improvement products.
Speed is a crucial benefit. The platform enables BTG to disburse 95% of its loan funds in less than 10 minutes, the bank says, 16 times faster than its competitors.
Agriculture is a big part of the Brazilian economy, and BTG offers services tailored to the sector including credit lines for agricultural products (fertilizers, pesticides, seeds); equipment financing; and infrastructure financing for the construction of silos, warehouses, and other facilities.
Activities addressing ESG issues are also important to BTG. Of its loans to corporations and SMEs, 72% are subject to social, environmental, and climate-risk analysis, in line with international best practices. R$8.9 billion of its lending portfolio aligns with the bank’s sustainable financing framework.
Italian banking group UniCredit has delivered a robust third quarter, underscoring its position as one of Europe’s stronger lenders.
“UniCredit delivered yet another set of record results, with net revenues up 1.2% and costs down 0.1% versus last year,” said CEO Andrea Orcel in a statement.
Net profit came in at €2.6 billion in the third quarter, up 4.7% year-on-year, and above a company estimate of €2.4bn.
Over the first nine months of the year, the bank’s net profits rose by 12.9% to €8.7bn.
“These results reflect disciplined execution, and I am confident that we will continue to build sustainable value for all stakeholders,” said Orcel.
UniCredit also reaffirmed full-year 2025 net profit guidance at €10.5bn and said it planned to distribute at least €9.5bn to shareholders.
Why this matters
In a European banking sector facing low growth, investor pressure, and regulatory hurdles, the results are significant for several reasons.
First, UniCredit’s combination of revenue growth, cost control, and low credit impairments suggests a resilience not always seen among its peers.
Second, the reaffirmation of strong guidance signals management confidence in execution through to year-end despite macroeconomic uncertainties in European and global markets.
Thirdly, the capital position and shareholder-return commitments indicate that the bank is in a position to manage risk and reward investors.
Europe’s banks are navigating reduced margins, regulatory costs, and lacklustre loan demand. Against that backdrop, UniCredit’s cost-income ratio of 37% in the quarter is a standout.
The lender also noted that its medium-term ambitions remain unchanged, standing by a net profit target of above €11 billion for the full-year 2027.
What to watch
Key to delivery will be how UniCredit handles a potential slowdown in areas such as net interest income, which fell 5.4% year-on-year in the quarter, and how it sustains its cost-efficiency edge.
The impact of wider economic weakness in Italy, Germany, and Central and Eastern Europe, all countries with strong UniCredit presence, remains a risk.
Additionally, conversion of its medium-term plans into reality will require continued disciplined execution. This is especially the case as the bank pursues strategic initiatives such as life insurance policy changes in Italy and its takeover of Commerzbank.
UniCredit has built a 26% stake in the German lender over the last year, although Orcel’s advances are facing fierce opposition from the government in Berlin.
The packaging maker delivered a strong third-quarter report.
Shares of Crown Holdings (CCK+0.04%), the maker of aluminum cans and other packaging supplies, reported better-than-expected results in its third-quarter earnings report, sporting solid growth on the top and bottom lines. It also raised its guidance for the full year.
As of 11:48 a.m. ET, the stock was up 3.7% on the news.
Image source: Getty Images.
Crown Holdings raises the bar
In a fluid environment where tariffs have roiled global manufacturers like Crown Holdings, the company is still managing to deliver growth. In the third quarter, revenue rose 4.2% to $3.2 billion, topping estimates at $3.14 billion.
The company experienced strong growth in Europe, with volume growth up 12% in the European beverage segment, which drove a 27% increase in segment income. Other regions were mixed.
Overall, segment income, which adjusts operating income for one-time charges and intangibles amortization, was up 4% to $490 million, and adjusted earnings per share (EPS) increased 13% to $2.24, which beat the consensus at $1.99.
Today’s Change
(0.04%) $3.93
Current Price
$98.34
Key Data Points
Market Cap
$11B
Day’s Range
$97.47 – $102.85
52wk Range
$75.98 – $109.48
Volume
1.4M
Avg Vol
1.3M
Gross Margin
18.55%
Dividend Yield
0.01%
Crown lifts its guidance
Management said it was raising its full-year forecast based on its performance through the first three quarters of the year. The company now expects adjusted earnings per share of $7.70 to $7.80, up from a previous forecast of $7.10 to $7.50. For the fourth quarter, it sees adjusted EPS of $1.65 to $1.75, which compares to the consensus at $1.58.
Following the report, Jefferies reiterated a buy rating on the stock, calling it “undervalued.”
At a price-to-earnings ratio of less than 13, Crown looks well priced for a category leader that’s growing in a challenging environment.
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Jefferies Financial Group. The Motley Fool has a disclosure policy.
Find out what this Netflix-Spotify move could mean for sports, entertainment, and your portfolio.
The future of streaming media just got a whole lot more interesting. I certainly didn’t see it coming, and I bet no one else did either. Last week, Netflix (NFLX 0.40%) and Spotify(SPOT 2.01%) teamed up to put some of Spotify’s top podcasts on the video-streaming veteran’s global platform.
Netflix and Spotify’s groundbreaking podcast partnership isn’t just another content deal. It’s a glimpse into a radically different entertainment ecosystem. Former rivals become allies, audio-only podcasts turn into TV shows, and the very definition of “content” becomes beautifully, chaotically fluid.
This is the streaming evolution nobody saw coming: Specialist platforms finally realizing that collaboration might just be the ultimate competitive advantage.
What’s happening?
Early next year, you’ll see a handful of Spotify podcast shows on the American Netflix service. The partnership starts with a couple of true crime talk shows, a larger set of popular culture and lifestyle shows, and a really heaping helping of sports-oriented podcasts. Other markets will gain access to these series later, though the exact timing and geographical reach remains unknown.
Spotify sees the team-up as an effective way to grow people’s access to these podcasts, including ultra-premium stuff like The Bill Simmons Podcast. As a reminder, Spotify paid $185 million for Simmons’ Ringer studio in 2020 and presumably even more for a renewal of that deal in March 2025.
Netflix’s management highlighted the growing popularity of video-style podcasts, giving subscribers one more content type to enjoy.
Image source: Getty Images.
Netflix gets sports content on the cheap
I think it’s a stroke of genius from both sides of the dealmaking table, though Netflix probably gets the sweeter end of this deal.
Netflix suddenly expands its burgeoning sports coverage very quickly by getting podcast rights, and without paying billions of dollars for direct event coverage deals. Leagues like the NFL, the NBA, and MLB want a lot of money for their game-tracking deals. For example:
Comcast‘s (NASDAQ: CMCSA) NBCUniversal division is reportedly close to a three-year deal with Major League Baseball, priced at $200 million per year.
The National Basketball Association signed an 11-year coverage deal in the summer of 2024, splitting the rights among NBCUniversal, Amazon(NASDAQ: AMZN) Prime Video, and Walt Disney‘s (NYSE: DIS) ESPN for about $7 billion per year.
As for the National Football League, Netflix has nibbled on a few specific games, but the big contracts are found elsewhere. Comcast, Disney, Paramount Skydance(NASDAQ: PSKY), Amazon, and Fox(NASDAQ: FOX) are all paying billion-dollar sums per year for their specific slices of NFL media rights. Even YouTube entered this arena, as the Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL) subsidiary inked a seven-year deal for Sunday Ticket coverage at $2 billion per year.
The financial details of the Netflix/Spotify partnership are not known, which suggests the payments may be small enough to not require public disclosure. After all, both partners are expecting positive outcomes from this contract. But even if Netflix is spending a few hundred million dollars, it still found a cheaper way to tap into the lucrative sports market.
Audio meets video (and beyond)
I think of podcasts as an audio-centered media format, but this deal was an eye-opener. Adding a few high-end cameras and decent lighting to the radio-like studio instantly creates a video stream instead, and a lot of people prefer that format. From the podcast creators’ point of view, I’m sure it doesn’t hurt to upgrade the studio environment and pay more attention to the visuals.
So the edges and borders between different content types are getting smudged. Spotify is doing video content and Netflix is adding audio-centric shows. And it won’t stop there. I mean, Netflix has dozens of video games already, and there’s a hidden “snake” game in the mobile Spotify app. Digital entertainment is digital entertainment, and specialists in one particular media type can easily expand to other fields.
That’s particularly true for the well-heeled global giant that started the video-streaming industry in 2011. Netflix has the resources to keep its business growth going by exploring new media types. Recent examples even include brick-and-mortar stores and the upcoming Netflix House experience centers in Philadelphia and Dallas.
Anders Bylund has positions in Alphabet, Amazon, Netflix, and Walt Disney. The Motley Fool has positions in and recommends Alphabet, Amazon, Netflix, Spotify Technology, and Walt Disney. The Motley Fool recommends Comcast. The Motley Fool has a disclosure policy.
On October 17, 2025, Shaker Investments disclosed it sold out of The Progressive Corporation(PGR 0.83%), liquidating 9,829 shares for an estimated $2.62 million.
What Happened
Shaker Investments disclosed in a filing with the Securities and Exchange Commission dated October 17, 2025, that it had sold its entire stake in The Progressive Corporation in the third quarter. The liquidation involved 9,829 shares, with an estimated transaction value of $2.62 million based on the average price for the quarter. The fund’s post-trade holding in the insurer is now zero shares.
What Else to Know
The fund sold out of Progressive, reducing its allocation from 1.07% of 13F AUM in the previous quarter to zero.
Top holdings after the filing:
NYSE:AX: $33.84 million (13.5% of AUM)
NASDAQ:AVGO: $12.30 million (4.9% of AUM)
NASDAQ:NVDA: $12,301,219 (4.9% of AUM)
NASDAQ:MSFT: $8,486,093 (3.4% of AUM)
NASDAQ:GOOGL: $8,297,003 (3.3% of AUM)
As of October 16, 2025, shares of Progressive were priced at $221.74, down 13.17% over the past year; shares have underperformed the S&P 500 by 24.06 percentage points over the past year.
Company Overview
Metric
Value
Revenue (TTM)
$85.17 billion
Net Income (TTM)
$10.71 billion
Dividend Yield
2.17%
Price (as of market close 2025-10-16)
$221.74
Company Snapshot
The Progressive Corporation is a leading U.S. property and casualty insurer with a diversified portfolio spanning auto, residential, and specialty insurance lines. Its multi-channel distribution model includes independent agencies, online, and phone channels.
The company offers personal and commercial auto insurance, residential property coverage, and specialty property-casualty products, including insurance for motorcycles, RVs, watercraft, and business vehicles. It generates revenue primarily from underwriting insurance policies and related services.
Progressive serves individual consumers, small businesses, and property owners across the United States through direct channels and independent agencies.
Foolish Take
By selling its entire stake of more than $2.6 million worth of Progressive stock, Shaker Investments has cut loose one of America’s largest insurers. Should retail investors do the same? Let’s have a closer look.
It’s been a less than stellar year so far for Progressive. Shares have declined (3.9%) year-to-date, while the S&P 500 has advanced by 14.5%. Even within the insurance sector, Progressive has lagged major benchmarks, such as the SPDR S&P Insurance ETF (KIE) and iShares US Insurance ETF (IAK), which have generated a total year-to-date return of 1.5% and 1.8%, respectively.
Adding to the stock’s tough year, Progressive recently released disappointing third-quarter earnings results on October 15. Both earnings-per-share and revenue came in below analysts’ estimates, with Progressive stock falling on the announcement. In addition, the company noted that it was recording a nearly $1 billion expense related to a change in Florida policy that limits profits on auto insurance in the state. Despite these setbacks, the company reported increased premiums written and earned, indicating growth in the company’s core operations.
At any rate, retail investors looking for exposure to the insurance sector may want to consider a broad-based ETF, like the SPDR S&P Insurance ETF (KIE) or the iShares US Insurance ETF (IAK). These ETFs provide diversification within the sector, ensuring that investors aren’t as exposed to operational risks at any single company.
Glossary
Exited its position: When an investor sells all shares of a particular investment, fully closing out that holding. 13F reportable assets under management (AUM): The total value of securities a fund must report quarterly to the SEC on Form 13F. Allocation: The percentage of a fund’s assets invested in a specific security or asset class. Liquidation: The process of selling an investment position, often fully, to convert it into cash. Stake: The amount or percentage of ownership an investor holds in a company or asset. Dividend Yield: A financial ratio showing how much a company pays in dividends each year relative to its share price. Distribution model: The methods a company uses to sell its products or services to customers (e.g., direct, agencies). Underwriting: The process by which an insurer evaluates and assumes the risk of insuring a person or asset. Property and casualty insurer: An insurance company providing coverage for property loss and liability for accidents, injuries, or damage. Specialty insurance lines: Insurance products designed for unique or non-standard risks, such as motorcycles or RVs. TTM: The 12-month period ending with the most recent quarterly report.
Jake Lerch has positions in Alphabet and Nvidia. The Motley Fool has positions in and recommends Alphabet, Axos Financial, Microsoft, Nvidia, and Progressive. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
HomeAwardsAward WinnersWorld’s Best Investment Bank and Best Bank for Cash Management 2025: Bank of America
Bank of America has been recognised in 2025 as The World’s Best Investment Bank and the World’s Best Bank for Cash Management in this year’s Global Bank Awards.
Brian Moynihan, Chairman & CEO
World’s Best Investment Bank 2025
BofA Securities
Against the backdrop of thriving global stock markets and rising debt-finance activity, Bank of America (BofA) Securities’ global operations achieved an impressive 43% year-over-year jump in investment banking fees as of the fourth quarter of 2024.
The numbers were buoyed mainly by the bank’s three big areas of operations: North America, Latin America, and Europe, where the bank controlled a commanding 8.3%, 9%, and 4.4% of total investment banking fees, respectively. That boosted revenue for the full year to nearly $5.5 billion, according to Dealogic, representing around 6.2% of the global investment banking market.
BofA also scored big on M&A despite somewhat subdued activity in the field, serving as lead buy-side advisor on the $1.9 billion acquisition of Hawaiian Airlines by Alaska Air. The bank also acted as sole buy-side financial advisor on Keurig Dr Pepper’s $990 million acquisition of energy beverage company GHOST.
World’s Best Bank for Cash Management 2025
Bank of America
Reflecting the demand for consistent global visibility and control, Bank of America saw the app version of its CashPro platform surpass $1 trillion in payment approvals in 2024. CashPro allows clients to manage treasury operations across multiple channels: online, app, APIs, and file-based interfaces.
“One thing that distinguishes CashPro is its global consistency,” says Tom Durkin, head of CashPro at BofA’s Global Payments Solutions, “so that when a company’s finance team has team members in different countries, they’ll all have access to the same tools, views, and processes. The advantages are obvious: better visibility and control and no additional financial outlays.”
Much of CashPro’s success is due to BofA’s close engagement with clients, Durkin notes, particularly those who participate in client board meetings.
“This dialogue is so important,” he says. “We do deep dives into our clients’ priorities and challenges, we present options for new functionality and discuss whether those innovations are going to solve their real-world issues.”
The bank’s strategic vision for CashPro “will always be to provide a best-in-class platform that is personalized, predictive, and proactive,” he adds. “One recent demonstration is how we’ve embedded CashPro into our clients’ own systems through the CashPro Network, a collaboration with third-party providers allowing quick, easy connection to the bank with little to no investment.”
In a booming stock market, these five stocks stand out.
October is more than halfway over, but there’s still time for investors to snap up some world-class stocks. For those wanting to bet on artificial intelligence (AI), Intel(INTC 2.94%) and International Business Machines(IBM 0.83%) fit the bill. For consumer goods stocks that offer long-term potential, Nike(NKE 0.53%) and Walmart(WMT -0.67%) are great choices. And for something different, Reddit(RDDT 4.00%) looks interesting for investors with more appetite for risk. Here’s why these five stocks are the best of the bunch in October.
Image source: Getty Images.
Intel
Intel’s turnaround is still a work in progress, but a series of deals and developments have pushed the stock up about 90% so far this year. CEO Lip-Bu Tan, who took over in March, has been slashing costs and refocusing the company on its best opportunities. Regaining leadership in the PC and server CPU markets after years of market share losses is an imperative, as is justifying the massive expense associated with Intel’s manufacturing efforts by winning external foundry customers.
Tan has proven to be quite the dealmaker. The U.S. government took a nearly 10% stake in the company in exchange for grant money that had yet to be delivered, Softbank invested $2 billion, and Nvidiatook a $5 billion stake and partnered with Intel on custom PC and server chips. Pairing Intel and Nvidia technology in PCs and servers could help the company win back market share from AMD.
While Intel still needs to deliver results, market sentiment has certainly shifted in a positive direction, and recent news that Microsoft has reportedly chosen Intel to manufacture a custom AI chip has added fuel to the fire. Intel’s turnaround is going to take time, but the pieces are falling into place. For patient investors, now is a great time to buy the stock.
International Business Machines
It’s taken a while, but IBM has settled into a successful AI strategy that’s helping to accelerate its revenue growth. The company’s pairing of consulting services with an enterprise AI software platform, along with a focus on small, specialized, and cheap AI models tuned for specific tasks, has proven to be a winner.
IBM has booked more than $7.5 billion worth of generative AI-related business so far, with much of that total coming from the consulting business. In the second quarter alone, IBM booked more than $1 billion of generative AI-related consulting business. By offering solutions that combine AI implementation and other services with its AI software platform, IBM is winning over enterprises as they race to deploy AI.
IBM expects to increase revenue by at least 5% this year, adjusted for currency. That growth will come despite weakness in discretionary projects tied to the state of the economy. By leaning into AI, IBM is building a powerful growth engine that can offset sluggish spending in other areas. And because IBM’s AI business is focused on delivering results for its clients in the form of reduced costs or greater efficiency, the business can continue to grow even if the AI boom cools off. For investors looking for a low-risk way to bet on AI, IBM stock is the answer.
Nike
Unforced errors have put footwear giant Nike in an uncomfortable position. The company has lost ground in sports to upstarts like On Holding, and its aggressive push toward direct-to-consumer sales has weakened the brand and hurt relationships with retailers. The stock has been a disaster, down more than 60% from its all-time high.
While attempting to stage a comeback against the backdrop of an uncertain macroeconomic environment will only make things more difficult, green shoots are starting to appear. Wholesale revenue rose by 7% in the company’s latest quarter, and the Nike brand managed to grow in North America. Nike is refocusing on key sports as well as the North American market, and rebuilding wholesale relationships, and progress is clearly being made.
At the same time, Nike CEO Elliott Hill was careful to note that Nike’s progress “will not be linear as dimensions of our business recover on different timelines.” Investors shouldn’t expect miracles in the next few quarters, but for those willing to buy and hold for at least a few years, Nike is positioning itself for a return to consistent growth. With the stock carving out new multiyear lows, now is a great time to bet on an eventual comeback.
Walmart
Inflation, tariffs, and souring consumer sentiment have created plenty of uncertainty for the retail industry. For investors looking for a relatively safe bet no matter what happens to the economy, Walmart is a great choice.
Walmart’s massive scale gives it unparalleled leverage with suppliers, allowing it to keep prices as low as possible and win over consumers struggling with strained household budgets. Walmart grew revenue by nearly 5% year over year in its latest quarter while gross margin remained steady and adjusted operating margin rose. The company’s bet on technology is also paying off, with global e-commerce sales rising by 25%.
Walmart is diving headfirst into the future with its partnership with OpenAI that will enable customers to purchase products from Walmart directly within ChatGPT. While the interplay between AI and commerce is still evolving, getting its products in front of hundreds of millions of ChatGPT users could drive meaningful revenue growth. Walmart isn’t immune to economic conditions, but the company is better positioned than most retailers to ride out the storm.
Reddit
Where people on the internet get information, including recommendations that lead to purchases, is changing. Search engines used to be the only game in town. Then came social media sites like Meta Platforms‘ Facebook and Instagram, which are full of lucrative ads. AI chatbots like ChatGPT are pulling more people away from search engines, and even Alphabet has resorted to inserting AI Overviews at the top of Google search results.
What makes Reddit unique is that it benefits almost no matter what. Plenty of people go directly to Reddit for information; those who search on Google often find Reddit threads among the top results. And AI chatbots and Google’s AI overviews often use Reddit threads as key sources. As the old and the new battle each other, Reddit stands above the fray.
Reddit’s ad revenue is soaring as more people turn to the social media site. Ad revenue jumped by 84% year over year in the second quarter, driven by a 21% rise in daily active unique users and improved monetization. Depending on Google and AI chatbots for traffic does pose a risk, and it could create volatility in traffic and revenue. But there’s no real alternative to the rich source of information Reddit provides. For investors who can handle a riskier stock, Reddit is great choice.
Timothy Green has positions in Intel and International Business Machines. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Intel, International Business Machines, Meta Platforms, Microsoft, Nike, Nvidia, On Holding, and Walmart. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.
Global Finance has announced its selection for the 2025 World’s Best Trade Finance Provider. The winner this year is BNP Paribas.
Jean-Francois Denis, Global Head of Trade Solutions and Network Management
Offering global trade finance in 44 countries and more than 100 trade centers across more than 60 countries gives BNP Paribas a strong geographical foundation for its offering of seamless trade finance solutions across borders, supporting client growth throughout the entire trade cycle.
A broad range of traditional trade finance and working capital management solutions and substantial investment in technology, including web-based e-banking platforms like Connexis Guarantee, Connexis Trade, and Connexis Supply Chain, helps the French multinational support clients with complex international trade operations. Leveraging digital solutions, such as blockchain and AI, streamlines processes, improves efficiency, and enhances customer experience.
In 2022, BNP Paribas launched a program using AI to streamline the processing of trade finance documents and improve traceability for its clients. Since then, the bank has rolled the program out to 15 countries and processed 40,000 transactions.
“We have implemented AI technology to help classify, extract data, and automate controls. This is live today and being further expanded in terms of functionalities,” says Jean-François Denis, global head of Trade Solutions. “Bank guarantees also present the potential for AI usage, such as verifying guarantee clauses against acceptable clauses, policies, and guidelines. Anti-money laundering is yet another area where we have deployed AI.”
Kenny Loggins has reacted to Donald Trump using his song ‘Danger Zone’ in the president’s “disgusting” AI-generated video showing himself wearing a crown, flying a “KING TRUMP” fighter jet and bombing a crowd of protesters with feces.
The American singer-songwriter recorded the hit song for the soundtrack of the 1986 Tom Cruise movie Top Gun. He has now called for Trump’s video to be taken down on copyright grounds.
In a statement to Variety, Loggins said: “This is an unauthorized use of my performance of ‘Danger Zone.’ Nobody asked me for my permission, which I would have denied, and I request that my recording on this video is removed immediately.”
He continued: “I can’t imagine why anybody would want their music used or associated with something created with the sole purpose of dividing us. Too many people are trying to tear us apart, and we need to find new ways to come together.”
“We’re all Americans, and we’re all patriotic. There is no ‘us and them’ — that’s not who we are, nor is it what we should be. It’s all of us. We’re in this together, and it is my hope that we can embrace music as a way of celebrating and uniting each and every one of us.”
Well put – especially considering the video has provoked widespread outrage online, with many expressing dismay over the way it shows Trump’s clear disdain for people exercising their right to protest.
Social media users accused Trump of having “the maturity and decorum of a 12-year-old boy”, while others commented: “Can’t believe that’s a president of a country.”
Many posts also pointed out that Trump’s “childish” and “disgusting” AI post revealed a transparent representation of his genuine feelings toward the American people. “It tells you everything you need to know about what he thinks about the people of America who are, in fact, America,” one person commented, while another added: “Him taking a dump on the country is the most honest thing he’s ever posted.”
This is far from the first time that Trump and his administration have used artists’ work without authorisation.
Céline Dion also condemned the use of her song from the Oscar-winning film Titanic, ‘My Heart Will Go On’, which was used at one of Trump’s rallies. Dion’s team questioned the song choice, writing: “And really, THAT song?”
Another band which added their name to the ever-growing list of artists who have sued Trump over the illegal use of their songs in campaign videos was The White Stripes. Last year, the rock band highlighted the “flagrant misappropriation” of their hit song ‘Seven Nation Army’. Jack White captioned a copy of the legal complaint in an Instagram post with: “This machine sues fascists.”
The most recent example to date is Metallica, who forced the US government to withdraw a social media video that used their song ‘Enter Sandman’ without authorisation.
This weekend’s “No Kings” protests saw millions of Americans marching against Trump’s administration, opposing the president’s “authoritarian power grab.”
The 18 October protest, the third mass mobilisation since Trump’s return to the White House, drew nearly 7 million people across all 50 states according to organisers. This figure would make it the largest single-day mobilisation against a US president in modern history.
Here’s why Berkshire Hathaway investors should be celebrating.
Warren Buffett will step down as CEO of Berkshire Hathaway(BRK.A 0.39%)(BRK.B 0.30%) at the end of the year. But before he does, the conglomerate he’s run for nearly 60 years will make at least one more big acquisition.
The Oracle of Omaha and soon-to-be CEO Greg Abel expect to close on a deal to acquire the petrochemicals business OxyChem from Occidental Petroleum(OXY 0.32%) in the fourth quarter. Berkshire will pay $9.7 billion in cash, which will barely make a dent in the $340 billion sitting on the company’s balance sheet. Still, it represents the largest purchase for Berkshire since Allegheny Corp. in 2022.
The deal is an exceptional example of Warren Buffett’s investing style, which relies on being in a good position to act when great opportunities present themselves. Here’s what Berkshire Hathaway is getting in the deal, and why it’s an absolutely genius move.
Image source: The Motley Fool.
What is Berkshire buying?
OxyChem is a leading petrochemical company, one of the largest producers of caustic soda, potash, chlor-alkali, and PVC. It’s a global operation with 23 facilities worldwide, and Greg Abel described the acquisition as “a robust portfolio of operating assets, supported by an accomplished team.”
However, the industry is facing pressure. Weak pricing for caustic soda and PVC led to disappointing pre-tax earnings in the second quarter of just $213 million. Management revised its outlook for the business for full-year pre-tax income low to between $800 million and $900 million for this year.
Occidental’s management expects the supply side pressure on pricing to mitigate next year. In management’s first quarter earnings call, it said it expects to generate “$1 billion in incremental pre-tax cash flow from non-oil and gas source in 2026, with further expansion in 2027.” Part of that improvement is from modernization of OxyChem facilities.
In the meantime, though, Berkshire is swooping in to buy the assets when the entire industry is near a cyclical trough. The $9.7 billion price tag is estimated to be around 8 times OxyChem’s 2025 EBITDA expectations. That’s roughly in line with other chemical stocks like Eastman Chemical and Dow, but the entire industry is seeing lower earnings multiples due to the same headwinds pushing profits lower at OxyChem.
If the industry turns around as Occidental’s management expects, Berkshire could be getting a heck of a bargain. But the way it’s acquired the business makes it an even better deal for Berkshire and its shareholders.
The cherry on top for Berkshire
The big reason Occidental was willing to sell OxyChem despite expectations that it will see significantly improved earnings and cash flow over the next few years is because it needs cash. The oil and gas company took on additional debt to acquire CrownRock in August of 2024.
The increase in debt on Occidental’s balance sheet was always meant to be temporary. When it announced the acquisition, management said it plans to divest assets and use excess cash flow to reduce its debt levels back below $15 billion. While it’s been aggressive in using excess cash to pay down debt, the company still had $24 billion worth of debt on its balance sheet as of the end of the second quarter.
The cash infusion from Berkshire is set to net $8 billion after taxes. Of that, $6.5 billion will go toward paying down debt, with the other $1.5 billion going to Occidental’s coffers. Combined with debt pay down from excess free cash flow, management expects to meet its sub-$15 billion target.
The debt reduction indirectly benefits Berkshire as well. The conglomerate owns a 28% stake in the business. The stronger balance sheet should support projects to maximize its vast resources in the Permian Basin while improving its free cash flow position with reduced debt burden. That should support long-term growth for the business.
One other aspect of the deal provides tremendous benefits to Berkshire and its investors. Instead of using Berkshire’s preferred shares of Occidental to acquire OxyChem, Buffett and Abel managed to convince the company to take cash. That means Berkshire will continue to collect its 8% annual dividend on the $8.5 billion in preferred shares it continues to hold. That’s a much better yield than the company’s getting on its short-term Treasury bills.
Occidental says it plans to start redeeming those preferred shares in August of 2029, giving Berkshire shareholders at least three more years of extra-high yields. That’s just the cherry on top for Berkshire shareholders, who finally saw Buffett put some of Berkshire’s growing cash pile to work.
Adam Levy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
An end to quantitative tightening by the Fed might not be as great for stocks as some think.
When Jerome Powell speaks, markets listen. As well they should. Powell serves as the chair of the Federal Reserve Board. As part of this role, he also leads the Federal Reserve Open Market Committee (FOMC), which sets the monetary policy of the U.S.
Powell recently hinted at a monetary policy change that seems positive for the stock market. But should investors actually be worried?
Federal Reserve Chair Jerome Powell answers reporters’ questions at the FOMC press conference on Sept.17, 2025. Official Federal Reserve Photo.
Good news for investors?
Powell spoke last week at the National Association for Business Economics conference held in Philadelphia, Pennsylvania. One of his key points in his address was an update on the status of the Fed’s “quantitative tightening” approach.
Quantitative tightening is the term used to describe when the Federal Reserve reduces the size of its balance sheet. To accomplish this goal, the Fed allows assets such as government-issued bonds to mature, or it actively sells those assets. This usually results in higher long-term interest rates, lower inflation, and a cooling down of an overheated economy.
The opposite of quantitative tightening is quantitative easing. With this approach, the Fed increases the size of its balance sheet. Quantitative easing is an expansionary policy that’s usually associated with a rising stock market.
In his recent remarks, Powell hinted that the Fed is close to ending its program of quantitative tightening. He said:
Our long-stated plan is to stop balance sheet runoff when reserves are somewhat above the level we judge consistent with ample reserve conditions. We may approach that point in coming months, and we are closely monitoring a wide range of indicators to inform this decision.
Powell always chooses his words deliberately and can often be somewhat ambiguous. However, the takeaway from his comments is that the Fed’s quantitative tightening policies could be almost over. This would seem to be good news for investors.
A more complicated picture
I chose those words deliberately and left room for ambiguity just as Powell likes to do. Why? Because there’s a more complicated picture if the Fed stops its quantitative tightening policies.
For one thing, the end of quantitative tightening doesn’t necessarily mean a return of robust quantitative easing. Some saw quantitative easing as something akin to steroids for the economy and stock market, while quantitative tightening was like a depressant. Using that analogy, discontinuing taking a depressant doesn’t boost strength in the same way as frequently taking a steroid might.
It’s also important to understand that the end of quantitative tightening could be a warning sign about the economy, and by extension, corporate earnings. The Fed doesn’t reduce the size of its balance sheet when the economy is weak. Powell’s remarks, indicating that quantitative tightening could soon taper off, might reflect significant underlying concerns by the Fed about the health of the U.S. economy, despite his seemingly positive statement last week that the economy “may be on a somewhat firmer trajectory than expected.” As the economy goes, so goes the stock market — usually.
Finally, there is a real risk that ending quantitative tightening could backfire. One of the main goals of the policy is to fight inflation. If the Fed returns to expanding its balance sheet, inflation could roar back. The effects of the Trump administration’s tariffs could add fuel to the fire, at least initially. Powell acknowledged in his speech at the National Association for Business Economics conference, “There is no risk-free path for policy as we navigate the tension between our employment and inflation goals.”
The Fed could find itself in a situation where it has to reverse tactics, which would likely create significant uncertainty for the stock market. If there’s anything investors hate, it’s uncertainty.
Should investors worry?
I think celebrating the Fed bringing its quantitative tightening policies to a halt is premature. However, it’s also too soon to worry about the potential impact on stocks from the decision.
We don’t know yet how quickly the Fed will begin increasing the size of its balance sheet. We don’t know how aggressively it will move if and when quantitative tightening comes to an end. We don’t know what else will be happening with the economy or the stock market.
What we do know, though, is that the stock market rises over the long term. Anyone with an investing time horizon measured in decades shouldn’t have anything to worry about, regardless of what the Fed does or doesn’t do in the near term.
A blowout quarter and a premium customer mix are forcing the market to revisit what this franchise is worth.
American Express(AXP 0.70%) is a global payments company with a different model from the card networks most investors know. Unlike Visa and Mastercard, which mainly run transaction networks and avoid lending, American Express issues cards, extends credit, and earns meaningful fee income from premium customers. That difference mattered on Friday, when shares jumped after the company posted strong third-quarter results and lifted its full-year outlook.
Is this move noise or the start of a repricing toward peer-like valuations? I think the latter. With spending and fee income looking good and credit holding steady, it wouldn’t be surprising to see the stock’s valuation multiple expand significantly over time, catching up with the valuation multiples of Visa and Mastercard.
Image source: Getty Images.
Impressive results
It wasn’t surprising to see shares jump following the release of the company’s latest financial results. Third-quarter revenue rose 11% year over year to $18.4 billion, and earnings per share increased 19% to $4.14. Card member spend growth accelerated to 9% (up from 7% growth in Q2). Management also raised full-year guidance, saying it expects 9% to 10% revenue growth and earnings per share of $15.20 to $15.50.
Driving the quarter, the company’s cardmember fee income climbed 18% year over year as more customers adopted its premium cards, which offer travel and lifestyle perks in exchange for annual fees. Additionally, net interest income rose 12%.
Credit metrics look good, too. American Express’s provision for credit losses declined year over year on a lower reserve build. And the company’s net write-off rate held at 1.9%, flat from a year ago and from the prior quarter. For a credit card issuer that keeps credit risk on its own balance sheet, steady write-offs and a lighter reserve build point to disciplined underwriting even as spend grows rapidly.
What makes American Express different
Of course, American Express doesn’t differentiate itself from Visa and Mastercard just by extending credit and charging substantial card fees across its flagship products. The company’s value proposition in the premium space is perhaps the company’s greatest edge. This is fresh on investors’ minds because American Express recently refreshed its U.S. consumer and business Platinum products — and it’s working; new U.S. Platinum account acquisitions in the three weeks following the refresh doubled versus pre-refresh levels, management said in its third-quarter update. Considering that the refresh came with a substantially higher annual fee, that kind of customer response suggests pricing power with the customers who spend the most, use travel benefits, and stay loyal.
Driving home just how premium American Express’s cardmembers are, they spend an average of three times more on their cards than the average spend per card on other networks.
Valuation still trails far behind Visa and Mastercard
Even after the rally, American Express trades at a lower price-to-earnings multiple than the pure networks Visa and Mastercard. The two peers earn higher valuations for their capital-light models, which carry less credit risk and produce steady cash flow. That premium makes sense.
Depending on how you look at it, however, there are also reasons that American Express may deserve a premium. Visa and Mastercard may take on less risk, but American Express participates in more of the profit pool per dollar of spend and has more control over the customer’s overall experience — an advantage that is likely key to helping the company cater to higher spenders.
Ultimately, if American Express can show that its approach is leading to a better customer experience, including higher engagement and greater lifetime customer spend while maintaining good credit metrics, investors may be willing to narrow the gap between American Express’s valuation multiple and its pure network peers.
Of course, being an integrated payments company requires carefully balancing underwriting and incentives to bolster cardmember spending. A surprise rise in delinquencies would pressure earnings. Likewise, a slowdown in the macroeconomic environment could hit discount revenue, customer acquisition trends, and even lending. These factors could keep the valuation discount in place longer than bulls expect.
Still, there’s a lot to like — especially given the stock’s fair price-to-earnings multiple of about 23. This compares to Visa and Mastercard’s price-to-earnings ratios of 34 and 38, respectively. With strong financials in the context of its valuation, American Express stock looks compelling. Revenue is growing at double-digit rates, spend is accelerating, and fee income tied to its premium cards is doing the heavy lifting. Management’s playbook of regularly refreshing its products and deepening engagement while broadening acceptance shows up in the numbers and in guidance.
If American Express’s momentum persists, a narrower valuation gap with Visa and Mastercard makes sense. Friday’s surge looks less like a spike and more like the start of a reset in how investors price this franchise. After years of consistent growth and strong credit metrics, investors might start seeing the company’s integrated payment model as a key competitive advantage worthy of a significantly higher premium.
American Express is an advertising partner of Motley Fool Money. Daniel Sparks and his clients have positions in American Express. The Motley Fool has positions in and recommends Mastercard and Visa. The Motley Fool has a disclosure policy.
A health savings account is a versatile financial vehicle that allows you to save now while investing for retirement.
Have you ever been envious of someone because they have a health savings account (HSA)? If not, it may be because you haven’t heard how an HSA can supercharge your retirement planning.
Here’s how it works, and why more people are investing in their HSAs with an eye toward the future.
Image source: Getty Images.
What is an HSA?
An HSA is a tax-advantaged savings account, available only to those with high-deductible health plans. The account is designed to cover qualified medical expenses; these include prescriptions, copays, mental healthcare, dental and vision services, and some over-the-counter purchases. It can even be used for certain insurance premiums, like those for COBRA or Medicare.
If your high-deductible health plan covers only you, you can contribute $4,300 annually to an HSA. If it covers your family, your contribution limit is $8,550. Plus, if you’re 55 or older, you can add a catch-up contribution of $1,000.
A pretax way of saving
Like most employer-sponsored retirement plans, contributions to an HSA are pretax, meaning you don’t pay taxes on the income. Interest and investment earnings grow tax-free, and withdrawals to cover qualified medical expenses are also tax-free.
Here are a few of the finer details regarding HSAs and taxes:
Qualified medical expenses: Withdrawals for qualified medical expenses are always tax-free, no matter how old you are.
Under age 65: If you’re under age 65, withdrawals from your HSA for nonqualified medical expenses are taxed as ordinary income. You may also be subject to a 20% penalty on the amount withdrawn.
65 and older: If you’re 65 or older and make a withdrawal for something other than a qualified medical expense, the 20% penalty no longer applies, although you will pay ordinary income tax on the withdrawal.
Again, withdrawals for qualified medical expenses at any age are tax-free.
Use it now or use it later
HSAs are nothing if not flexible. Owning an HSA means determining how you want to manage the funds. You can use it solely to cover current medical expenses, or you can save it for later.
Unlike funds in a flexible spending account (FSA), the money left in your HSA can be rolled over from year to year. Imagine you begin contributing to an HSA this year and spend the next 20 years contributing $5,000 annually. At the end of those 20 years, there will be $100,000 in the account.
However, there’s a way to make the account worth far more than $100,000. Like other HSA owners, you could invest the money. Most HSA providers allow you to invest your HSA funds just as you would a 401(k) or IRA, giving your account the potential to grow dramatically.
Let it grow
Let’s say your high-deductible healthcare plan covers your family, and you contribute $8,550 to an HSA each year. You spend the first $3,550 on medical expenses and pay for any additional expenses out of pocket.
You invest the remaining $5,000, earning an average annual return of 7%. Instead of being worth $100,000 after 20 years, your account could be worth almost $205,000, more than twice as much.
Cover retirement-related expenses
Although you can’t contribute any more money to your HSA after you’ve enrolled in Medicare, you can spend your retirement years using funds from the account to cover essential medical expenses. Here are some examples:
Medicare Part A premiums (though most people get Part A for free)
Premiums for Medicare Part D prescription coverage
Long-term care insurance premiums
Deductibles and copayments for medical products and services
Alternatively, you have the option of spending HSA money after reaching age 65 on nonmedical expenses with no penalty. You’ll pay taxes at your ordinary tax rate for any such withdrawals (just as with most retirement plans), but you get some extra flexibility to decide where the money will be most helpful.
It’s tough to find much about HSAs to dislike. In fact, they may be attractive enough to tempt you to enroll in a high-deductible health plan.
These companies have been very reliable dividend payers over the past couple of decades.
A stable income stream is the cornerstone of a worry-free retirement. By receiving reliable payments, retirees can focus on enjoying life rather than stressing over expenses. The right investments are crucial in making this possible.
Investing in high-quality dividend stocks can be a great source of reliable retirement income. Realty Income(O 1.12%) and Oneok(OKE 0.63%) have each demonstrated the durability of their dividend payments over many decades. This proven reliability makes them strong options for those seeking consistent income in retirement.
Image source: Getty Images.
Executing the mission
Realty Income has a clear mission. This real estate investment trust (REIT) aims to provide dependable monthly dividends that grow over time. The company has paid 664 consecutive monthly dividends throughout its history. It has raised its payment 132 times since its public market listing in 1994, including for the past 112 quarters in a row (and for more than 30 consecutive years). It stands out for its consistency among income stocks in the real estate sector.
The REIT offers investors an attractive dividend that currently yields 5.5%. That’s well above average (the S&P 500‘s dividend yield is around 1.2%). As a result, investors can generate more income from every dollar they invest in the company.
Realty Income backs its reliable dividend with very durable cash flows. It owns a diversified real estate portfolio (retail, industrial, gaming, and other properties), net leased to many of the world’s leading companies. Net leases provide it with very predictable cash flow because tenants cover all property operating expenses, including routine maintenance, real estate taxes, and building insurance. Meanwhile, the company owns properties leased to tenants in resilient industries. Over 90% of its rent comes from tenants in sectors resilient to economic downturns and isolated from the pressures of e-commerce, such as grocery stores, distribution facilities, and data centers.
The REIT pays out a conservative percentage of its stable rental income in dividends (about 75% of its adjusted funds from operations). That gives it a comfy cushion while enabling it to retain lots of cash to make additional income-generating real estate investments. Realty Income also has one of the strongest balance sheets in the sector, further enhancing its ability to make new investments. It should have no shortage of investment opportunities in the coming years, given the $14 trillion total estimated market value of real estate suitable for net leases across the U.S. and Europe. The company’s growing portfolio enables it to steadily increase its dividend.
A pillar of stability
Oneok has been one of the most reliable dividend stocks in the pipeline sector. The energy infrastructure company has delivered more than a quarter-century of dividend stability and growth. While Oneok hasn’t increased its payout every single year, it has grown it at a peer-leading rate over the past 10 years by nearly doubling its payment. The company currently offers a 6% dividend yield.
The energy company operates a balanced portfolio of premier energy infrastructure assets, backed predominantly by long-term, fee-based contracts. Those agreements provide it with very stable cash flow to cover its dividend. Oneok also has a strong investment-grade balance sheet backed by a low leverage ratio. This rock-solid financial position gives the company the flexibility to invest in organic expansion projects and make accretive acquisitions to grow its platform.
Oneok currently has several high-return organic expansion projects in the backlog, which it expects to complete through mid-2028. This gives it lots of visibility into its future growth. The company has also made several acquisitions over the past few years, which will continue to boost its bottom line in the coming years as it captures additional synergies. It has ample financial flexibility to approve new expansion projects and make additional acquisitions. With demand for energy expected to continue growing, especially for natural gas, the company should have no shortage of investment opportunities. This fuels Oneok’s view that it can grow its dividend by a 3% to 4% annual rate.
Reliable income stocks
For retirees seeking dependable, growing income, Realty Income and Oneok stand out as proven dividend payers. Their stable cash flow and prudent financial management provide confidence that these companies can continue delivering reliable income for years. Those features make them ideal dividend stocks for retirement portfolios.
Matt DiLallo has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Oneok. The Motley Fool has a disclosure policy.
