FT News Briefing

US companies endure tariff whiplash

Feb 5, 2025

Alphabet’s cloud services disappoint as U.S. companies face turmoil due to turbulent tariffs, forcing them to rethink supply chains. China retaliates, impacting tech giants like Google and Nvidia. Meanwhile, India is set for a remarkable IPO year, attracting domestic investors despite a slowing economy. The dynamics of U.S. trade relations complicate the landscape, with opportunities emerging against a backdrop of rising valuations and economic challenges.

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Quick takeaways

Alphabet's disappointing earnings reflect ongoing challenges in the tech sector, particularly with increased scrutiny on cloud services competition.

U.S. companies are urgently adapting their supply chains and investment strategies to cope with the turbulent tariff environment imposed by the government.

Deep dives

Alphabet's Disappointing Earnings Report

Alphabet, Google's parent company, reported disappointing fourth quarter earnings, with revenues falling short of Wall Street expectations by about a billion dollars. Despite a rise in overall revenues, cloud revenue also underperformed, missing targets by approximately $200 million. This unexpected performance led to a significant drop in Alphabet's share price, which fell about 7% in after-hours trading. The results highlight ongoing challenges in the tech sector, particularly as cloud services face increasing scrutiny and competition from rivals like Microsoft.

Intro

5min

Navigating Trade Tensions and IPO Prospects

2min

India's Impressive IPO Surge and Investment Trends

2min

Momentum and Concerns in India's Financial Market

3min

Alphabet’s cloud services missed growth expectations last quarter, American companies are scrambling to protect their supply chains in the face of all the back and forth on tariffs, and China is hitting back at the US for imposing new levies. Plus, India is set for a blockbuster IPO year – even as the economy weakens.

Mentioned in this podcast:

Google parent Alphabet slides after sales miss Wall Street estimates

China targets Google, Nvidia and Intel as Trump tariffs bite

China hits back with limited response to Donald Trump’s tariffs

India set for blockbuster IPO year despite slowing economic growth

The FT News Briefing is produced by Fiona Symon, Sonja Hutson, Kasia Broussalian, Lulu Smyth, and Marc Filippino. Additional help from Breen Turner, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Joseph Salcedo. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

Read a transcript of this episode on FT.com

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