EU Puts €40 Million in First Foray Into Dedicated Defense Fund
The European Union's investment vehicle is investing €40 million ($45 million) in a dedicated European defense fund, marking a first as the bloc seeks to improve its military capabilities.
The European Investment Fund, which provides access to financing for small and medium-sized businesses, will contribute to a fund being raised by Keen Venture Partners that is targeting €125 million, it said in a statement Thursday.
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Yahoo
34 minutes ago
- Yahoo
NHS faces paying more for US drugs to avoid future Trump tariffs
Britain faces paying more for US drugs as part of a deal to avoid future tariffs from Donald Trump. The NHS will review drug pricing to take into account the 'concerns of the president', according to documents released after a trade agreement was signed earlier this year. White House sources said it expected the NHS to pay higher prices for American drugs in an attempt to boost the interests of corporate America. A Westminster source said: 'There's an understanding that we would look at the drug pricing issue in the concerns of the president.' The disclosure is likely to increase concerns about American interference in the British health service, which has long been regarded as a flashpoint in trade talks. It comes after Rachel Reeves announced a record £29 billion investment in the NHS in last week's spending review. The Chancellor's plans will drive spending on the health service up towards 50 per cent of all taxpayer expenditure by the mid-2030s, according to economists at the Resolution Foundation. The Telegraph has also learnt that under the terms of the trade deal with America, the UK has agreed to take fewer Chinese drugs, in a clause similar to the 'veto' given to Mr Trump over Chinese investment in Britain. The White House has asked the UK for assurances that steel and pharmaceutical products exported to the US do not originate in China, amid fears the deal could be used to 'circumvent' Mr Trump's punishing tariffs on Beijing. Mr Trump is enraged by how much more America pays for drugs compared with other countries and considers it to be the same issue as he has raised on defence spending. Just as the US president has heaped pressure on European nations to increase the GDP share they allocate to defence, he thinks they should spend more on drug development. An industry source said: 'The way we've been thinking about it and many in the administration have been thinking about it, it's more like the model in Nato, where countries contribute some share of their GDP.' Britain and the US 'intend to promptly negotiate significantly preferential treatment outcomes on pharmaceuticals and pharmaceutical ingredients', the trade deal reads. Pharmaceutical companies are also pushing for reductions in the revenue sales rebates they pay to the NHS under the voluntary scheme for branded medicines pricing, access and growth (VPAG) – a mechanism that the UK uses to make sure the NHS does not overpay. Last week, Albert Bourla, Pfizer's chief executive, said non-US countries were 'free-riding' and called for a US government-led push to make other nations increase their proportionate spend on innovative medicines. He said White House officials were discussing drug prices in trade negotiations with other countries. 'We represent in UK 0.3pc of their GDP per capita. That's how much they spend on medicine. So yes, they can increase prices,' Mr Bourla said. Industry sources said there was no indication yet on what the White House would consider to be a fair level of spending. Whatever the benchmark, Britain will face one of the biggest step-ups. UK expenditure on new innovative medicines is just 0.28pc of its GDP, roughly a third of America's proportionate spending of 0.78pc of its GDP. Even among other G7 nations, the UK is an anomaly. Germany spends 0.4pc of its GDP while Italy spends 0.5pc. Most large pharmaceutical companies generate between half and three quarters of their profits in the US, despite the fact that America typically makes up less than a fifth of their sales. This is because drug prices outside of the US can cost as little as 30pc of what Americans pay. Yet, pharmaceutical companies rely on higher US prices to fund drug research and development, which the rest of the world benefits from. A month ago, Mr Trump signed an executive order titled 'Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients', which hit out at 'global freeloading' on drug pricing. It stated that 'Americans should not be forced to subsidise low-cost prescription drugs and biologics in other developed countries, and face overcharges for the same products in the United States' and ordered his commerce secretary to 'consider all necessary action regarding the export of pharmaceutical drugs or precursor material that may be fuelling the global price discrimination'. Trung Huynh, the head of pharma analysis at UBS, said: 'The crux of this issue is Trump thinks that the US is subsidising the rest of the world with drug prices. 'The president has said he wants to equalise pricing between the US and ex-US. And the way he wants to do it is not necessarily to bring down US prices all the way to where ex-US prices are, but he wants to use trade and tariffs as a pressure point to get countries to increase their prices. 'If he can offset some of the price by increasing prices higher ex-US, then the prices in America don't have to go down so much.' Mr Huynh added: 'It's going to be very hard for him to do. Because [in the UK deal] it hinges on the NHS, which we know has got zero money.' Under VPAG, pharmaceutical companies hand back at least 23pc of their revenue from sales of branded medicines back to the NHS, worth £3bn in the past financial year. The industry is pushing for this clawback to be cut to 10pc, which would mean the NHS would have to spend around 1.54bn more on the same medicines on an annual basis. The Government has already committed to reviewing the scheme, a decision which is understood to pre-date US trade negotiations. A government spokesman said: 'This Government is clear that we will only ever sign trade agreements that align with the UK's national interests and to suggest otherwise would be misleading. 'The UK has well-established and effective mechanisms for managing the costs of medicines and has clear processes in place to mitigate risks to supply.'
Yahoo
35 minutes ago
- Yahoo
Cathie Wood sells $9.5 million of popular AI stocks after big rally
Cathie Wood sells $9.5 million of popular AI stocks after big rally originally appeared on TheStreet. Cathie Wood is known for making bold bets on the future of technology, and just as known for cashing out when the timing feels right. In the past week, the chief of Ark Investment Management trimmed some high-flying stocks, including one stock that's skyrocketed more than 270% and another that's climbed over 80% year-to-date. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 Wood's funds have been through a volatile ride this year, swinging from strong gains to sharp losses, and now back to outperforming the broader market. In January and February, the Ark funds rallied as investors bet on the Trump administration's potential deregulation that could benefit Wood's tech bets. But the momentum faded in March and April, with the funds trailing the market as top holdings—especially Tesla, her biggest position—slid amid growing concerns over the macroeconomy and trade policies. Now, the fund is regaining momentum. As of June 13, the flagship Ark Innovation ETF () is up 8% year-to-date, outpacing the S&P 500's 1.6% gain. Wood had a remarkable gain of 153% in 2020, which helped build her reputation and attract loyal investors. Still, her long-term performance has made many others skeptical of her aggressive style. As of June 13, Ark Innovation ETF, with $5.5 billion under management, has delivered a five-year annualized return of 0.4%. In comparison, the S&P 500 has an annualized return of 16.2% over the same period. Wood's investment strategy is straightforward: Her Ark ETFs typically buy shares in emerging high-tech companies in fields such as artificial intelligence, blockchain, biomedical technology, and robotics. Wood says these companies have the potential to reshape industries, but their volatility leads to major fluctuations in Ark funds' Ark Innovation ETF wiped out $7 billion in investor wealth over the 10 years ending in 2024, according to an analysis by Morningstar's analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott's ranking. Wood recently said the U.S. is coming out of a three-year 'rolling recession' and heading into a productivity-led recovery that could trigger a broader bull market. In a letter to investors published in late April, she dismissed predictions of a recession dragging into 2026, as she expects "more clarity on tariffs, taxes, regulations, and interest rates over the next three to six months." "If the current tariff turmoil results in freer trade, as tariffs and non-tariff barriers come down in tandem with declines in other taxes, regulations, and interest rates, then real GDP growth and productivity should surprise on the high side of expectations at some point during the second half of this year," she wrote. She also struck an optimistic tone for tech stocks. "During the current turbulent transition in the US, we think consumers and businesses are likely to accelerate the shift to technologically enabled innovation platforms including artificial intelligence, robotics, energy storage, blockchain technology, and multiomics sequencing," she said. Investor confidence has wavered. Over the past year, the Ark Innovation ETF saw $2 billion in net outflows, as some investors grew wary of volatility and underperformance. But in a potential sign of renewed interest, the fund brought in $250 million in fresh capital between June 7 and June 12, according to ETF research firm VettaFi. On June 11, Wood's Ark funds sold 55,829 shares of Palantir Technologies () . That chunk of stock was valued at roughly $7.6 million. Palantir is known for providing AI-driven data analytics software to the U.S. government, military, and commercial clients company reported stronger first-quarter revenue in May and raised its full-year outlook as demand for AI tools increased. 'We are delivering the operating system for the modern enterprise in the era of AI,' CEO Alex Karp many tech stocks have struggled this year, Palantir has stood out. Its shares are up 81.7% in 2025 and just hit a record close of $137.40 on June 13. Much of the recent momentum comes from its government work. Back in May 2024, Palantir won a $480 million, five-year U.S. Army contract to build its Maven Smart System, which is a battlefield AI prototype. Last month, the Defense Department modified the contract, increasing the licensing ceiling from $480 million to $1.275 billion. Palantir's Foundry platform has been adopted by at least four federal agencies, including the Department of Homeland Security and the Department of Health and Human Services, according to a New York Times report published May 30. Fannie Mae also announced a partnership with Palantir in May to work on AI-based fraud detection. Palantir remains a core position for Wood even after recent sales. The stock is now the 8th largest holding in the ARK Innovation ETF, accounting for 4.7%. Wood said in February that she's moving away from hardware and infrastructure and doubling down on software, with Palantir as one of her top picks. 'Palantir is a very expensive stock, but there's nothing like it in the software space,' Wood said in a CNBC interview. 'It is, we believe, going to dominate the biggest part of the tech stack when it comes to AI. And that's the platform as a service part of the stack.' Another big trade Wood made on June 11 was selling 12,728 shares of CoreWeave Inc. () , valued at roughly $1.9 million. CoreWeave is a cloud infrastructure company specializing in GPU-accelerated computing for artificial intelligence and machine learning workloads. The company has delivered explosive growth and won support from Nvidia and March 28, CoreWeave launched its initial public offering, which was one of the largest AI-related listings since 2021. Since then, the stock is up more than 277%. That company is now Nvidia's largest holding, making up more than 78% of its disclosed portfolio. In the first quarter this year, Nvidia bought 24,182,460 shares after the IPO, according to data from WhaleWisdom based on 13F filings. On May 14, CoreWeave reported better-than-expected revenue on Wednesday in the company's first earnings release since going public. CoreWeave reported a 420% year-over-year revenue increase to $981.6 million for the first quarter. Despite this growth, the company's net loss widened to $314.6 million from $129.2 million a year earlier, partly driven by $177 million in stock-based compensation linked to its IPO. Bloomberg reporter Ryan Vlastelica commented that CoreWeave and Palantir are drawing comparisons to meme stocks after sharp rallies. But unlike GameStop, both are backed by strong demand. Still, valuations are a concern. Palantir trades at 71 times estimated sales, the highest in the S&P 500. CoreWeave, despite a $315 million loss last quarter, is valued at 10 times projected sales, well above the S&P 500's average of 3, Bloomberg reported. CoreWeave is not in Ark Innovation's top 10 holdings. Wood's recent trades also include buying shares of GitLab () , selling Kratos Defense () and Roblox () .Cathie Wood sells $9.5 million of popular AI stocks after big rally first appeared on TheStreet on Jun 15, 2025 This story was originally reported by TheStreet on Jun 15, 2025, where it first appeared.
Forbes
43 minutes ago
- Forbes
What You Need To Know About A Roth IRA Today
What you need to know about the ROTH IRA today to help avoid running out of money in retirement. Roth IRAs have been around for more than 20 years, and many people may have forgotten or never learned about how valuable they can be. Even small contributions over time can translate into a substantial amount of tax-free income throughout your retirement. Ultra-high-net-worth individuals may wish for more tax-free income potential, but they often earn too much income to be able to contribute directly to a Roth IRA. For the rest of you, don't miss out on the valuable tax-planning opportunities available with a Roth IRA. The Roth IRA is a type of retirement account. Unlike a traditional IRA or 401(k), you will not receive a tax deduction when you make contributions, but your money will grow tax-free. It can be withdrawn tax-free during retirement, assuming you follow a few Roth IRA rules. With an ever-expanding federal deficit, locking in more tax-free income options in the future could be the difference between running out of money in retirement and maintaining financial freedom as you age. Hey, procrastinators. You can still contribute to a Roth IRA when you are filing your taxes for the previous year. The deadline for most California residents to file their 2024 taxes is October 15, meaning you can still potentially open and fund a Roth IRA for last year. The sooner your Roth IRA contribution is made, the further into the future your potential investment earnings will be sheltered from taxation. What's better than a huge income in retirement? A huge tax-free retirement income stream. For 2025, if you are married and filing jointly, each spouse can make a full $7,000 Roth IRA contribution if they have an AGI (adjusted gross income) of less than $236,000. For singles, the number is slightly lower at $150,000. Note that a marriage penalty is in effect here. I'm just saying. If your income is close to the threshold limits above, consider saving the $7,000 throughout the year into a regular investment account. Then, use those funds to contribute the maximum amount allowed to a Roth IRA when filing taxes. I find it is often easier to come up with money over a year's time versus scrapping together a large lump sum at tax time. There are two ways a Roth IRA gets better the longer you have it. First, there is an allowable catch-up contribution of $1,000 per year for those who have reached 50 years old—bringing the total contribution to $8,000 per year. Secondly, the longer you hold a Roth, the more you can contribute over time. The more you contribute and the longer you leave the funds in the Roth IRA, the more time compounding interest has to expand your account values. Even if your spouse doesn't have earned income, you may still be able to open a Spousal Roth IRA. Whether your life partner is a stay-at-home parent or just between jobs, a spousal contribution will allow your household to contribute to the non-earning spouse. This, of course, assumes you qualify for contributions based on the aforementioned household income limits. For those new to investing and saving for retirement, tying up your money until you retire may be intimidating. You may need access to this money in case of an emergency. Roth IRA owners can withdraw their contributions after they have been in the account for five years, for any reason, without owing taxes or penalties. I mention this as a nice, friendly kick in the butt to make sure you get started saving NOW. There is no excuse for not planning for the future. I suggest ignoring the benefit of having easy access to your money because if you use this account as a piggy bank, you will likely never accumulate enough wealth to achieve financial independence, let alone maintain a basic standard of living in retirement. Bottom line – you can touch the money, but don't. To have full access to your "tax-free withdrawal," you need to fulfill the five-year rule. This rule means you can't withdraw your earnings, tax-free, without owing taxes for at least five years from the beginning of the tax year for which you made your first Roth IRA contribution. This applies even if you are older than 59.5. This is not some obscure tax loophole for the super-rich. For once, there is a tax benefit exclusively for those in the lower income tax brackets. As I mentioned above, you don't get a tax deduction when you contribute to a Roth IRA, but you also don't have to pay taxes when you make withdrawals in retirement. There is an additional tax benefit for low-income workers who are savvy enough to make Roth IRA contributions. This bonus comes in the form of the saver's credit. If, in 2025, you make less than $39,500, single, or $79,000 as a married couple, you could potentially receive a tax credit for 10-50% of your contributions to a Roth IRA. This credit is a dollar-for-dollar reduction of the taxes you owe. For those who don't owe taxes, you can receive the credit as a refund. Put more plainly, you could potentially get a tax credit for your Roth IRA contributions and still make withdrawals in the future tax-free. Just for illustration, if you were to contribute $7,000 to a Roth IRA from the age of 22 until 70, how much money do you think you would have? You would have contributed $336,000, which is not a small amount of money. Assuming a 10% annual return, your Roth IRA could potentially be worth $6,721,000. Keep in mind this money can be withdrawn tax-free. If this isn't motivation to start a Roth IRA today, I don't know what is. The earlier you start investing for retirement, the more likely you are to become a Roth IRA millionaire. If you are earning more than, say, $70,000 and aren't already independently wealthy, you will need to be saving more than the Roth IRA contribution limits to reach financial freedom. See if your employer offers a Roth 401(k) option, which will allow you to contribute $23,500 in 2025. You may also receive employer matching contributions and be eligible for catch-up contributions if you are age 50+ or the newer additional catch-up contribution for those just age 60-63. To contribute even more to a Roth 401(k), consider the Mega Back Door Roth strategy. This could push your Roth contributions each year up to $70,000. This is before any additional Roth catch-up contributions you may be eligible for. Read more about the Mega Back Door Roth Tax-Free Income Strategy Here. There is no better day than today to get started on the road to financial freedom. Hopefully, you are already working with a fiduciary certified financial planner to help develop a plan to make sure you are on track for your various financial goals. Part of that plan should be to help ensure you are paying the least amount of taxes over your lifetime. I don't know when taxes will increase, but they will eventually have to rise, and your Roth IRA accounts can help you mitigate the impact of these future tax hikes.
