Microsoft joins $4 trillion club, Brazil faces 50% tariffs, and more numbers from the week.

Microsoft reaches a market value of $4 trillion, becoming the second company to do so after Nvidia. The US imposes a 50% tariff on Brazilian exports, while Novo Nordisk shares fall 23% due to a reduced sales growth outlook. Union Pacific is set to pay $85 billion for Norfolk Southern, and China allocates CN¥90 billion for childcare subsidies.

Microsoft has achieved a significant milestone, becoming the second publicly traded company to reach a market value of $4 trillion, following Nvidia. This remarkable feat comes on the heels of a strong earnings report that highlighted substantial returns on its investments in AI. Microsoft's stock market value has been propelled by notable growth in its Azure cloud computing division and the success of its Copilot AI tools, which have exceeded 100 million monthly active users [1].

The tech giant has projected a record $30 billion in capital expenditures for the first quarter of the current fiscal year to meet the surging demand for AI. This investment strategy has driven an 18 percent revenue growth rate, the company's fastest expansion in over three years. The Intelligent Cloud segment alone generated nearly $30 billion in quarterly revenue, underscoring Microsoft's strategic focus on embedding AI across its enterprise and consumer offerings [1].

Meanwhile, the U.S. has imposed a 50% tariff on most Brazilian goods, effective August 6, 2025. The move is part of a broader effort to influence Brazilian politics, specifically in response to the prosecution of former President Jair Bolsonaro. The tariffs, some of the steepest levied in the U.S. trade war, were announced by President Donald Trump and target sectors such as aircraft, energy, and orange juice, which were excluded from heavier levies [2].

The tariffs have caused significant concern among Brazilian exporters, with estimates suggesting that the measure could reduce exports by up to $7 billion in 2025. The Brazilian government, led by Vice-President Geraldo Alckmin, is preparing contingency plans to support affected companies, while states like São Paulo and Minas Gerais have announced emergency measures [3].

Additionally, Novo Nordisk shares fell by 23% due to a reduced sales growth outlook. Union Pacific is set to pay $85 billion for Norfolk Southern, a significant acquisition in the railroad industry. Lastly, China has allocated CN¥90 billion for childcare subsidies, a move aimed at supporting families and promoting gender equality.

References:
[1] https://economymiddleeast.com/news/microsoft-becomes-second-company-to-achieve-4-trillion-valuation-after-nvidia/
[2] https://www.reuters.com/world/americas/trump-hits-brazil-with-tariffs-sanctions-key-sectors-excluded-2025-07-30/
[3] https://www.mixvale.com.br/2025/08/01/trumps-tariff-hikes-coffee-and-beef-prices-affected-sectors-in-brazil/