TRG Fast Facts
By TRG Advisors on June 13, 2025
Weekly data-driven insights on the markets and economy
Trump Strikes Rare Deal
President Trump announced on Wednesday that China will supply rare earths and magnets upfront to the U.S. as part of a pending trade agreement. In exchange, the U.S. will ease restrictions on Chinese students, with both sides calling the deal a “win.” The agreement follows high-level talks in London and aims to ease tensions over tariffs and critical mineral access.[i]
Inflation Inches Up
Consumer prices rose just 0.1% in May, coming in below expectations, as reported by the Bureau of Labor Statistics on Wednesday. Core inflation also undershot forecasts, with declines in energy, vehicle, and apparel prices helping to offset modest increases in food and shelter. While the data suggests muted inflation for now, economists caution that tariff effects may emerge in the coming months.[ii]
Meta Taps “Superintelligence”
Meta announced plans on Tuesday to launch a new AI research lab focused on developing “superintelligence”— AI that surpasses human intelligence. The company is also reportedly in talks to invest more than $10 billion in Scale AI, whose founder Alexandr Wang will join the initiative. This move underscores Meta’s aggressive push in the AI space, with plans to spend up to $65 billion on AI infrastructure this year.[iii]
Trucking Titans Merge
On Tuesday, Toyota and Daimler’s truck divisions announced a merger to form a new Japanese holding company by April 2026, combining Hino Motors and Mitsubishi Fuso. The venture, jointly owned by Toyota Motor Corp. and Daimler Truck, aims to collaborate on commercial vehicle development, procurement, and production. The new company will focus on sustainable mobility, including hydrogen innovation, and employ more than 40,000 people.[iv]
Whole Foods, Half Stocked
United Natural Foods Inc., a major U.S. grocery distributor and supplier to Whole Foods, took certain systems offline this week after detecting unauthorized activity on its internal networks. The disruption, which began on June 5, has temporarily impacted order fulfillment and is expected to cause ongoing operational delays.[v]
Warner Bros. Reboots
Warner Bros. Discovery announced plans on Monday to split into two separate public companies by mid-2026—one focused on streaming and studios (including HBO Max), and the other on global networks (including CNN and TNT Sports). CEO David Zaslav will lead the streaming and studios entity, while current CFO Gunnar Wiedenfels will head the networks business. The move aims to give each company greater strategic focus amid ongoing shifts in the media landscape.[vi]
[i] Meredith, Sam and Roach, April. “Trump says China will supply rare earths in ‘done’ deal.” CNBC, 11 June 2025, https://www.cnbc.com/2025/06/11/trump-says-china-will-supply-rare-earths-in-done-deal.html.Accessed June 11, 2025.
[ii] Cox, Jeff. “U.S. inflation rises 0.1% in May from prior month, less than expected.” CNBC, 11 June 2025, https://www.cnbc.com/2025/06/11/cpi-inflation-may-2025.html.Accessed June 11, 2025.
[iii] Capoot, Ashley. “Meta forming new AI lab helmed by Scale AI CEO Alex Wang, report says.” CNBC, 10 June 2025, https://www.cnbc.com/2025/06/10/meta-scale-ai-alex-wang.html. Accessed June 10, 2025.
[iv] Kageyama, Yuri. “Truck units of Toyota and Daimler reach merger deal, first announced two years ago.” AP, 10 June 2025, https://apnews.com/article/trucks-japan-toyota-daimler-hino-fuso-6442da9d518fbea4f3b46046dc6964b3. Accessed June 10, 2025.
[v] Vicens, A.J. “Whole Foods supplier United Natural Foods says cyber incident disrupted operations.” Reuters, 9 June 2025, https://www.reuters.com/business/whole-foods-supplier-united-natural-foods-says-cyber-incident-disrupted-2025-06-09/. Accessed June 9, 2025.
[vi] Rizzo, Lillian. “Warner Bros. Discovery to split into two public companies by next year.” CNBC, 9 June 2025, https://www.cnbc.com/2025/06/09/warner-bros-discovery-to-split-into-two-public-companies-by-next-year.html. Accessed June 9, 2025.