Finance

Financial Services Update: Key Market Insights

Discover Financial Services is withholding its outlook due to the ongoing merger with Capital One Financial, as stated by CFO John Greene during a call with analysts. However, the company did share some insights into its trends for 2025, which include loan growth returning to levels more in line with pre-pandemic patterns and the tailwinds from declining payment rates, which Greene notes seem to have mostly dissipated. The company also anticipates its net interest margin will remain steady compared to Q4, though an uptick in new account openings could exert some pressure on margins later in the year, Greene added. As for the Capital One Financial merger, the executive mentioned that integration planning is progressing smoothly for a seamless transition. Shares rose by 3.1%, reaching $203.70.

TECH

The Battle for AI Supremacy: Trump’s $500 Billion Plan Divides Tech Titans

Some of the biggest names in tech—ranging from Elon Musk and Sam Altman to Satya Nadella and Marc Benioff—are embroiled in a feud following President Donald Trump’s announcement of his $500 billion private AI investment initiative.

Musk continues his verbal sparring, using X to criticize Altman over OpenAI’s partnership with Axios and Altman’s previous support for venture capitalist Reid Hoffman’s efforts to oppose Trump.

Altman, who appeared alongside Trump to unveil the AI project, responded Thursday morning with a post (without directly mentioning Musk): “just one more mean tweet and then maybe you’ll love yourself.”

Earlier this week, Trump introduced a collaboration called Stargate, involving OpenAI, Oracle, and SoftBank, aimed at investing billions to expand domestic computing power for advancing AI in the U.S.

The executives involved have pledged an initial $100 billion, with up to $500 billion expected over the next four years.

However, Musk, a close Trump ally and AI pioneer with his startup xAI, took to X to argue that the companies backing the project “don’t actually have the money” to fulfill the investment.

“SoftBank has well under $10B secured. I have that on good authority,” Musk claimed in a follow-up post. In response, Altman refuted Musk’s statement on Wednesday, saying, “Wrong, as you surely know.”

CRYPTO

Crypto on Wall Street: Trump’s Plans Push Top CEOs Toward Digital Assets

Just days into President Donald Trump’s second term, Wall Street is shifting its stance on crypto.

“For us, the key question is whether, as a highly regulated financial institution, we can act as transactors,” Morgan Stanley CEO Ted Pick told CNBC on Thursday at the World Economic Forum in Davos, Switzerland.

This newfound optimism among a growing number of bank executives at the forum is tied to Trump’s pro-crypto agenda. Once a vocal skeptic of cryptocurrency during his first term, Trump reversed his position during his 2024 campaign, increasingly relying on crypto industry donations to help defeat former Vice President Kamala Harris.

On Thursday, Trump issued a broad executive order on crypto, focusing on “protecting and promoting” the use and development of digital assets. Banks have been hesitant to engage with crypto or facilitate transactions due to the government's stance. The SEC has taken over 200 enforcement actions related to cryptocurrency since 2013, according to Cornerstone Research.

“We’ll be working with Treasury and other regulators to figure out how we can offer that in a safe way,” Pick added.

Trump has appointed several crypto supporters to key positions within his administration. These include Paul Atkins as the nominee to chair the Securities and Exchange Commission, where he previously served as commissioner under President George W. Bush. Howard Lutnick, CEO of Cantor Fitzgerald, has been tapped for Secretary of Commerce, and hedge fund manager Scott Bessent is set to lead the Treasury.