Raphael Stevens

A general view of the GameStop logo on one of its stores in the city center of Cologne, Germany.
Ying Tang | Nurphoto | Getty Images

GameStop said Wednesday it has officially bought 4,710 bitcoins, worth more than half a billion dollars, as the video game retailer began its crypto purchasing plan in a similar move made famous by MicroStrategy.
The purchase, its first investment in bitcoin, was worth $512.6 million with bitcoin’s price of $108,837 Wednesday. The world’s largest cryptocurrency has been on a tear lately, hitting a record high near $112,000 last week, as easing trade tensions and the Moody’s downgrade of U.S. sovereign debt highlighted alternative stores of value like bitcoin.

Shares of GameStop rose nearly 3% in premarket trading following the news. The meme stock is up about 12% this year. As of February 1, the company had amassed a $4.76 billion cash pile, according to its annual report released in April.
CNBC first reported on GameStop’s intention to add cryptocurrencies on its balance sheet in February. The company confirmed its plan in late March, saying it has not set a ceiling on the amount of bitcoin it may purchase.
GameStop is following in the footsteps of software company MicroStrategy, now known as Strategy, which bought billions of dollars worth of bitcoin in recent years to become the largest corporate holder of the flagship cryptocurrency. That decision prompted a rapid, albeit volatile, rise for Strategy’s stock.
GameStop’s foray into cryptocurrencies marks the latest effort by CEO Ryan Cohen to revive the struggling brick-and-mortar business. Under Cohen’s leadership, GameStop has focused on cutting costs and streamlining operations to ensure the business is profitable. More

British neobank Starling posted an annual profit before tax of £223.4 million, down nearly 26% year-on-year.
Profits at the bank were impacted by a regulatory fine and an issue with one of the U.K.’s Covid-era business loan schemes.
“This is a legacy issue which we dealt with transparently and in full cooperation with the British Business Bank,” Starling’s CFO Declan Ferguson said Wednesday.

The Starling Bank app displayed on a person’s phone.
Adrian Dennis | AFP via Getty Images

LONDON — British online lender Starling Bank on Wednesday reported a sharp drop in annual profit, citing an issue with Covid-era business loan fraud and a regulatory fine over financial crime failings.
Starling, which offers fee-free current accounts and lending services via a mobile app, posted profit before tax for the year ending March 31, 2025 of £223.4 million ($301.9 million), down nearly 26% year-over-year.

Revenue at the bank totalled £714 million, up about 5% from £682 million a year ago. However, that marked a slowdown from the more than 50% revenue growth Starling saw in its 2024 fiscal year.
Profits for the year were impacted by a £29 million fine by the U.K.’s Financial Conduct Authority over failings related to Starling’s financial crime prevention systems.
Starling also flagged an issue with the Bounce Back Loan Scheme (BBLS) that was designed to provide firms with access to cash during the coronavirus pandemic.
Starling was one of several banks that were approved to lend cash to firms during the Covid-19 outbreak in 2020. The scheme provided a 100% guarantee to lenders, making the government responsible for covering the full outstanding loan amount if a borrower defaulted.

However, Starling said it has since “identified a group of BBLS loans which potentially did not comply with a guarantee requirement” due to weaknesses in its historic fraud checks. After flagging this to the state-owned British Business Bank, the firm subsequently “volunteered to remove the government guarantee on those loans.”

“As a result, we have taken a £28.2m provision in this year’s accounts,” the bank said, referring to both the FCA fine and BBLS issue.
However, Starling said it held an Expected Credit Loss provision of £800,000 as of March 31 in relation to certain BBLS loans “where the guarantee provided under the BBLS guarantee agreement may no longer be available to the Company.”
“This is a legacy issue which we dealt with transparently and in full cooperation with the British Business Bank,” Declan Ferguson, Starling’s chief financial officer, said on a media call Wednesday.
Starling has operated as a licensed bank in the U.K. since 2018. It counts the likes of Goldman Sachs, Fidelity Investments and the Qatar Investment Authority as shareholders.
The firm, which was last privately valued in 2022 at £2.5 billion, faces hefty competition from both incumbent banks and rival fintechs like Monzo and Revolut. More

Spending among international visitors to the U.S. is poised to fall $8.5 billion this year, according to Oxford Economics.
Tourists are avoiding the U.S. as a destination amid tensions tied to Trump administration policy tied to trade and the border, experts said.
A relatively strong dollar and weak global growth prospects are also playing a role, they said.

South_agency | E+ | Getty Images

Spending from foreign visitors to the U.S. is poised to fall by $8.5 billion this year as negative perceptions tied to trade and immigration policy lead overseas tourists to look elsewhere, according to a research note published by Oxford Economics.
The spending decline, which works out to a drop of about 5% relative to last year, is a result of less foot traffic. International arrivals to the U.S. are expected to fall about 9% this year, Aran Ryan, director of industry studies at Tourism Economics, part of Oxford Economics, wrote in a research note last week.

Businesses and geographies that rely on foreign tourists for commerce could be especially hard-hit.
Other estimates suggest the potential economic loss may be even larger.
The World Travel & Tourism Council said this month it expects the U.S. economy to lose a “staggering” $12.5 billion in spending from international visitors in 2025, a “direct blow to the U.S. economy overall, impacting communities, jobs, and businesses from coast to coast.”

‘Perceptions of the US matter’ for travel

Trump administration “posturing and policy” tied to issues like border security and tariffs on long-standing trade partners have created “sentiment-headwinds” among would-be travelers, Ryan wrote.
Flight bookings to the U.S. between May to July were down 11% year-over-year as of April, signaling a “weak” outlook that’s likely attributable to travelers looking elsewhere, Ryan wrote. Europe and Canada are notable laggards: Air bookings are pacing more than 10% and 33% behind, respectively.

“Travelers make choices: where and when to travel, when to book, and how long to stay and importantly, perceptions of the US matter,” Ryan added.

“Whether fair or not, a perception is taking hold that more people are being detained, more devices [are] being searched and legal travelers [are] being deported back to their origin country,” Geoff Freeman, president and CEO of the U.S. Travel Association, told CNBC earlier this month. “That creates a great deal of fear.”
Heading into 2025, Oxford Economics had expected roughly 9% growth in international arrivals and a 16% boost to their spending.
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European business optimism about China has hit its lowest on record — worse than during the pandemic — due to slower growth and geopolitical worries.
That’s just one of the several record lows in sentiment that the EU Chamber of Commerce in China found in its annual survey.
A record 73% of respondents said doing business in China became more difficult in the past year.

A L ‘Oreal store near the Nanjing Road Pedestrian Street in Shanghai, China on April 1, 2025.
Cfoto | Future Publishing | Getty Images

BEIJING — European business optimism about China has hit its lowest on record – worse than during the pandemic — due to slower growth and geopolitical worries.
A record 73% of respondents in the EU Chamber of Commerce in China’s annual survey said doing business in the Asian country has become more difficult in the past year, marking a new high for a fourth-straight year.

That’s just one of the several record lows in sentiment found in the annual survey, which has been published since 2004. The latest study released Wednesday, covered 503 respondents in January and February.
“Companies are really feeling the squeeze, being pessimistic, but again finding very compelling supply chains in China that necessitate a continued presence [in] the Chinese market,” Jens Eskelund, president of the chamber, told reporters this week.
Still, that doesn’t mean business confidence is close to returning.
“We haven’t seen an inflection point yet,” Eskelund said. “A lot of it boils down to uncertainty.”
The survey reflected how challenges for foreign businesses in China have largely increased since the pandemic lockdown in 2022 disrupted supply chains. While local brands have become more competitive, overall consumer demand has remained lackluster amid the real estate slump and uncertainty in the job market.

Cosmetics companies were particularly hit. The industry blamed a drop in local demand and reported a 45% drop in revenue in 2024 from a year before — only the second decline in the past decade, according to the chamber’s report.
On the other hand, aviation and aerospace were the rare industries saying that doing business in China became easier.
Slower growth is diminishing China’s attractiveness relative to other markets.
A record low of only 12% of respondents were optimistic about profitability in China in the coming two years, while the fewest on record ranked the country as a top destination for future investments. Another record low of 38% of respondents said they planned to expand in China over the coming year.
And while Beijing has announced efforts to improve conditions for foreign investment, many challenges remain.
A record 63% of respondents said they missed business opportunities in China last year due to market access restrictions and regulatory barriers. Medical device businesses who responded said European companies experienced discrimination due to public procurement practices favoring domestic players.
The scale of pessimism echoed an annual survey of U.S. companies in China released in late January that showed a record share of American businesses were accelerating plans to relocate manufacturing or sourcing.
Meanwhile, 53% of respondents said they would increase their investments in China if more action was taken to improve local market access.

Supply chain competition

China remains dominant in the global supply chain for its ability to offer quality parts at the lowest price — the only way that businesses are able to stay competitive, Eskelund said, citing conversations over the last three weeks with hundreds of companies across the chamber’s six chapters in China.

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When asked about supply chain diversification, more than a quarter of respondents said they were increasing onshoring to China as a way to meet localization requirements and better reach the domestic market.
A far smaller share at 10% of respondents said they were establishing overseas alternative supply chains while keeping their existing network in China. The survey also found that nearly half of respondents said their Chinese suppliers were also moving operations to other markets.
Chinese and EU leaders are set to hold a summit in Beijing in July as both try to strengthen bilateral ties amid higher U.S. tariffs. The EU is China’s second-largest trading partner on a regional basis. More

China controlled 69% of rare earth mine production in 2024, and nearly half of the world’s reserves.
There are barely any alternatives to China for obtaining the rare earths.
“You cannot build a modern car without rare earths,” an analyst said.

Annealed neodymium iron boron magnets sit in a barrel prior to being crushed into powder at Neo Material Technologies Inc.’s Magnequench Tianjin Co. factory in Tianjin, China.
Bloomberg | Bloomberg | Getty Images

BEIJING — As China tightens its grip on the global supply of key minerals, the West is working to reduce its dependence on Chinese rare earth.
This includes finding alternative sources of rare earth minerals, developing technologies to reduce reliance, and recovering existing stockpiles through recycling products that are reaching the end of their shelf life.

“You cannot build a modern car without rare earths,” said consulting firm AlixPartners, noting how Chinese companies have come to dominate the supply chain for the minerals.
In September 2024, the U.S. Department of Defense invested $4.2 million in Rare Earth Salts, a startup that aims to extract the oxides from domestic recycled products such as fluorescent light bulbs. Japan’s Toyota has also been investing in technologies to reduce the use of rare earth elements.
According to the U.S. Geological Survey, China controlled 69% of rare earth mine production in 2024, and nearly half of the world’s reserves.
Analysts from AlixPartners estimate that a typical single-motor battery electric vehicle includes around 550 grams (1.21 pounds) of components containing rare earths, unlike gasoline-powered cars, which only use 140 grams of rare earths, or about 5 ounces.

Pretty soon, the first generation of EVs will be up for recycling themselves, creating a pool of ex-China material that will be under the control of the West.

Christopher Ecclestone
Principal and mining strategist at Hallgarten & Company

More than half of the new passenger cars sold in China are battery-only and hybrid-powered cars, unlike the U.S., where they are still mostly gasoline-powered.

“With slowing EV uptake (in the U.S.) and mandates to convert from ICE to EV formats receding into the future, the imperative for replacing Chinese-sourced materials in EVs is declining,” said Christopher Ecclestone, principal and mining strategist at Hallgarten & Company.
“Pretty soon, the first generation of EVs will be up for recycling themselves, creating a pool of ex-China material that will be under the control of the West,” he said.

Only 7.5% of new U.S. vehicle sales in the first quarter were electric, a modest increase from a year ago, according to Cox Automotive. It pointed out that around two-thirds of EVs sold in the U.S. last year were assembled locally, but manufacturers still rely on imports for the parts.
“The current, full-blown trade war with China, the world’s leading supplier of EV battery materials, will distort the market even more.”

Rare torque

Of the 1.7 kilograms (3.74 pounds) of components containing rare earths found in a typical single-motor battery electric car, 550 grams (1.2 pounds) are rare earths. About the same amount, 510 grams, is used in hybrid-powered vehicles using lithium-ion batteries.

In early April, China announced export controls on seven rare earths. Those restrictions included terbium, 9 grams of which is typically used in a single-motor EV, AlixPartners data showed.
None of the six other targeted rare earths are significantly used in cars, according to the data. But April’s list is not the only one. A separate Chinese list of metal controls that took effect in December restricts exports of cerium, 50 grams of which AlixPartners said is used on average in a single-motor EV.
The controls mean that Chinese companies handling the minerals must get government approval to sell them overseas. Caixin, a Chinese business news outlet, reported on May 15, just days after a U.S.-China trade truce, that three leading Chinese rare earth magnet companies have received export licenses from the commerce ministry to ship to North America and Europe.
What’s concerning for international business is that there are barely any alternatives to China for obtaining the rare earths. Mines can take years to get operating approval, while processing plants also take time and expertise to establish.
“Today, China controls over 90% of the global refined supply for the four magnet rare earth elements (Nd, Pr, Dy, Tb), which are used to make permanent magnets for EV motors,” the International Energy Agency said in a statement. That refers to neodymium, praseodymium, dysprosium and terbium.

For the less commonly used nickel metal hydride batteries in hybrid cars, the amount of rare earths goes up to 4.45 kilograms, or nearly 10 pounds, according to AlixPartners. That’s largely because that kind of battery uses 3.5 kilograms of lanthanum.
“I estimate that around 70% of the over 200 kilograms of minerals in an EV goes through China, but it varies by vehicle and manufacturer. It’s hard to put a definitive figure on it,” said Henry Sanderson, associate fellow at The Royal United Services Institute for Defence and Security.

Power projection

However, there are limits to recycling, which remains challenging, energy-intensive and time-consuming. And even if adoption of EVs in the U.S. slows, the minerals are used in far larger quantities in defense.
For example, the F-35 fighter jet contains over 900 pounds of rare earths, according to the Center for Strategic and International Studies, based in Washington, D.C.
China’s rare earths restrictions also go beyond the closely watched list released on April 4.

Large rocks containing chromite, is crushed into smaller bitesize chunks, before to goes through a process to refine and extract the ore that yields chromium, a vital component of stainless steel, at the Mughulkhil mine in Logar Province, Afghanistan.
Marcus Yam | Los Angeles Times | Getty Images

In the last two years, China has increased its control over a broader category of metals known as critical minerals. In the summer of 2023, China said it would restrict exports of gallium and germanium, both used in chipmaking. About a year later, it announced restrictions on antimony, used to strengthen other metals and a significant component in bullets, nuclear weapons production and lead-acid batteries.
The State Council, the country’s top executive body, in October released an entire policy for strengthening controls of exports, including minerals, that might have dual-use properties, or be used for military and civilian purposes.

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One restriction that caught many in the industry by surprise was on tungsten, a U.S.-designated critical mineral but not a rare earth. The extremely hard metal is used in weapons, cutting tools, semiconductors and car batteries.
China produced about 80% of the global tungsten supply in 2024, and the U.S. imports 27% of tungsten from China, data from the U.S. Geological Survey showed.
About 2 kilograms of tungsten is typically used in each electric car battery, said Michael Dornhofer, founder of metals consulting firm Independent Supply Business Partner. He pointed out that this tungsten is not able to return to the recycling chain for at least seven years, and its low levels of use might not even make it reusable.
“50% of the world’s tungsten is consumed by China, so they have business as usual,” Lewis Black, CEO of tungsten mining company Almonty, said in an interview last month. “It’s the other 40% that’s produced (in China) that comes into the West that doesn’t exist.”
He said when the company’s forthcoming tungsten mine in South Korea reopens this year, it would mean there would be enough non-China supply of the metal to satisfy U.S., Europe and South Korean needs for defense.
But for autos, medical and aerospace, “we just don’t have enough.” More