U.S. President Donald Trump and Elon Musk attend a press event in the Oval Office of the White House in Washington, D.C., U.S., May 30, 2025.
Nathan Howard | Reuters
Developments from the White House are growing more exciting and unpredictable than those 1,000-episode Asian drama serials.
On Thursday, “So much for being Mr. NICE GUY” Donald Trump reverted to being a nice guy and had a “very good call,” in his words, with Chinese president Xi Jinping over trade issues. Following the call, Trump said that officials from both countries will meet to negotiate further. Trump had previously described the process of reaching an agreement with Xi as “extremely hard,” while Treasury Secretary Scott Bessent said that talks between the U.S. and China are “a bit stalled,” which makes the positive outcome of the call even more of a breakthrough.
But Trump’s no longer playing nice with Elon Musk. Just last Friday, the U.S. president at a farewell ceremony to Musk’s role at DOGE called the latter “terrific” and said “he will, always, be with us.” Starting from the weekend, however, Musk began blasting Trump’s “big, beautiful bill,” which on Thursday culminated in a public spat between the former compatriots in the White House. Trump acknowledged Thursday that “Elon and I had a great relationship” — note the use of the past tense — but he doesn’t know “if we will anymore.”
Unlike the twists and turns of a television series, however, the White House’s relationships with others — a drama equally or more entertaining than fiction to some — have concrete effects on the economy and markets. Tesla’s shares, for instance, tanked 14% after its CEO feuded with the U.S. President. A viewer cannot be completely absorbed, lest, in losing themselves in the spectacle, they lose their investments as well.
What you need to know today
Ugly spat between Trump and Musk
U.S. President Donald Trump on Thursday called Tesla CEO Elon Musk “CRAZY” and threatened to cut his companies’ government contracts as the two men feuded over a major tax bill. In response, Musk said Space X will begin decommissioning its Dragon spacecraft “immediately.” “Without me, Trump would have lost the election,” Musk added later. Shares of Tesla sank more than 14% and shed $152 billion in value from the electric vehicle maker.
Trump talks to Xi on trade
Trump and his Chinese counterpart Xi Jinping on Thursday had a “very good call” for about 90 minutes which focused “almost entirely” on trade, Trump wrote on Truth Social. He added that U.S. and China officials will meet soon for more talks to resolve an ongoing trade war. Beijing’s Ministry of Foreign Affairs and China’s embassy in the U.S. said earlier Thursday that Trump had requested the call with Xi.
U.S. markets dragged down by Tesla
U.S. stocks fell Thursday, weighed down by Tesla shares tanking. The S&P 500 retreated 0.53%, the Dow Jones Industrial Average lost 0.25% and the Nasdaq Composite lost 0.83%. But Microsoft’s stocks climbed 0.8% to hit a record and reclaim the title of the world’s largest company by market capitalization. Asia-Pacific markets were mixed Friday. India’s Nifty 50 was up by 0.95% at 1:45 p.m. in Singapore after the country’s central bank slashed interest rates. Hong Kong’s Hang Seng Index, however, slipped 0.4%.
India’s central bank delivers outsized cut
The Reserve Bank of India lowered its benchmark policy rate to 5.5% from 6%, the lowest level since August 2022. Economists polled by Reuters had expected the bank to reduce rates by 25 basis points. The decision comes India reported better-than-expected gross domestic product growth in its fiscal fourth quarter. However, the RBI held its full-year GDP estimate at 6.5%, marking a sharp slowdown from the 9.2% seen in the previous financial year.
Circle shares pop after IPO
Shares of Circle Internet Group soared 168% on Thursday after the stablecoin company and its selling shareholders raised almost $1.1 billion in an initial public offering. The stock opened at $69 on the New York Stock Exchange after its IPO priced at $31. At one point, shares traded as high as $103.75. Circle joins Coinbase, Mara Holdings and Riot Platforms as one of the few pure-play crypto companies to list in America.
[PRO] Tariffs might benefit LSE
The London Stock Exchange has struggled to entice companies looking to go public — but some market watchers say a tariffs-driven diversification away from the U.S. could help the U.K. win back a greater share of the IPO market.
And finally…
U.S. President Donald Trump and Elon Musk attend a press event in the Oval Office of the White House in Washington, D.C., U.S., May 30, 2025.
Nathan Howard | Reuters
Trump and Musk feud draws reactions from billionaires, politicians and pundits. Here’s who said what
Trump and Musk seemed inseparable not so long ago: attending events together, doing joint interviews and showering praises on each other. All that changed overnight.
Billionaire Bill Ackman on Thursday urged Trump and Musk to stop fighting. The two men should “make peace for the benefit of our great country,” Ackman said on X.
Tesla bull Ross Gerber, head of Gerber Kawasaki Wealth and Investment Management, had harsh words for Musk in a series of X posts, stating that Elon was “now attacking all the people he helped put in power.”
Others in Trump’s orbit, such as former senior Trump advisor Steve Bannon, who has clashed with Musk in recent months, were also critical of Musk, saying that Trump should sign an executive order to take control of SpaceX.
