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Visa and Mastercard are experiencing significant stock declines, with Visa down 4.8% and Mastercard down 5.2%, amid concerns over President Trump's support for the Credit Card Competition Act. This proposal could require merchants to have access to alternative, lower-cost credit card routing options, potentially impacting the companies' operations. Analysts express skepticism about the bill's potential success, viewing it as a flawed solution to high card costs. Investors are wary of the implications for credit access and the regulatory environment, interpreting Trump's comments as political posturing ahead of the midterms.
Mastercard has partnered with STC Bank, a subsidiary of Saudi Telecom Company, to enhance cross-border payment services for customers in Saudi Arabia. This collaboration aims to transform the Saudi payments landscape in line with Vision 2030, providing fast, secure, and cost-efficient digital transfers to 120 countries. The initiative addresses the growing demand for responsive payment solutions, ensuring consumers can send and receive money easily. STC Bank's commitment to digital transformation aligns with Mastercard's goal of expanding accessible payment options for users.
BlackRock's recent survey indicates that investors are shifting their focus from big tech to energy and infrastructure providers for AI investments through 2026. Despite AI's prominence in 2025, concerns over uncertain returns from major tech companies have led to this change. Only 20% of surveyed clients view large U.S. tech firms as the best AI investment, while over half prefer energy providers and 37% favor infrastructure. BlackRock emphasizes the need to manage risks associated with megacap and AI exposure while seeking new opportunities.
Al Ahli Bank of Kuwait – Egypt (ABK-Egypt) has partnered with Mastercard to enhance digital payment solutions. This collaboration aims to provide advanced digital solutions that simplify payment processes and improve security for consumers and businesses. ABK-Egypt's CEO stated that this partnership will expand their services and support Egypt's transition to a cashless society. Both companies are committed to driving innovation and financial inclusion in Egypt.
President Trump has issued a warning to credit card companies to lower interest rates to 10% by January 20, 2026, or face severe legal consequences. This marks a shift from political pressure to explicit legal threats, as Trump claims current rates are unlawful. The ultimatum follows his previous call for a voluntary cap and is part of his broader economic agenda, coinciding with the anniversary of his inauguration. Major issuers like Visa and Mastercard are now under scrutiny, with potential regulatory actions looming if they do not comply.
