Macron visits Southeast Asia, Apple draws Trump's ire and the bubble tea billionaires
May 2025
Hello and welcome!👋
Did you know that the sun has been unleashing powerful solar flares at Earth? According to NASA, these eruptions “can impact radio communications, electric power grids, navigation signals, and pose risks to spacecraft and astronauts.”
On to the May edition of the newsletter…
FRANCE LOOKS EAST
President Emmanuel Macron’s trip to Southeast Asia may be remembered for a particular viral moment, however, there was serious dealmaking happening behind the scenes.
The French leader visited three countries over six days, holding meetings in Vietnam, Indonesia and Singapore. European heads of state rarely spend this much time in the region, so Macron’s tour was designed with a goal in mind.
In Hanoi, Macron signed an agreement to sell 20 Airbus planes to VietJet. The final tally: an estimated €7 billion (US$7.9 billion). While in Jakarta, the president worked out a preliminary defence pact with his Indonesian counterpart Prabowo Subianto. That could pave the way for new orders of French fighter jets and military submarines.
Over in Singapore, Macron and Prime Minister Lawrence Wong upgraded their countries’ bilateral relationship, promising to deepen cooperation and collaboration.
Before flying back to Paris, Macron delivered a speech at the Shangri-La Dialogue, a major Asian defence summit. He discussed his views on Gaza, Israel, Ukraine and the international security climate. “Both the Europeans and the Asians are much more intertwined than we thought,” he told the audience.
THE OVAL OFFICE VS. APPLE
Attending Donald Trump’s second inauguration does not guarantee you a spot in the good books, as Tim Cook is learning. The tech boss is at the receiving end of the White House’s anger with American companies that have substantial manufacturing bases abroad.
During a press conference in Doha, President Trump said “he had a little problem with Tim Cook” because Apple was boosting production in India. Then on his return to Washington, Trump announced that Apple could face a 25% tariff if its devices sold in the US were not made domestically. The threat spooked investors and Apple’s shares dropped 3% on 23 May.
For context: Some 87% of iPhones are manufactured in China. But Cook has been setting up shop in India and Vietnam in order to reduce reliance on China.
According to Apple watchers, the CEO recognised that the Beijing-Washington rift would impact the company’s supply chains, hence the investment in other factories. However, it appears Cook did not fully anticipate Trump’s singular focus on the ‘Made in the USA’ label.
Although Apple is pouring $500 billion into its home country over the next four years, the emphasis is on research & development and AI innovation. Celebrated Wall Street analyst Dan Ives says moving iPhone production to the US is “a fairy tale”, would take several years and push the price of each mobile to around $3,500.
BILLIONS FROM BOBA
Bubble tea shops are now ubiquitous but people are still thirsty for the sweet tapioca ball-filled drinks. In fact, demand for boba is translating into financial success on the stock market and turning founders into billionaires.
The couple behind Chinese bubble tea chain Auntea Jenny reportedly saw their combined wealth surge to $1.1 billion after the company listed on the Hong Kong exchange. Auntea Jenny has a presence across a variety of China’s cities and is planning to expand across Malaysia.
Other recent bubble tea IPOs include Mixue Group, Chabaidao and Guming Holdings. The question is - will a slump follow the initial sugar high?
Bubble tea is far from a staple good, which means the onus is on the brands to demonstrate profitability. Yet consumers in this sector are fickle and will chase social media trends, competitive prices and convenience. Opening up more branches and introducing special promotions will increase revenues but could squeeze margins further.
If money managers think the numbers aren’t appealing, these bubble tea entrepreneurs might have to settle for millionaire status instead.
Thanks for reading! Take care and stay curious, Sara x