“What’s Changing in Credit, Connectivity, and Big Business”

25th June 2025

FICO will soon factor Buy Now, Pay Later loans into credit scores, Verizon is building private 5G at the UK’s Thames Freeport, FedEx stock dipped on trade uncertainty. OpenAI’s Sam Altman discussed AI and Microsoft ties. Find out more as you read.

• Buy Now, Pay Later Loans Will Soon Affect Americans’ Credit Scores

FICO, the company behind the most widely used credit scores, is set to launch new models later this year that include BNPL activity. These installment loans  often used as an alternative to credit cards  have surged in popularity, particularly among younger shoppers looking for flexible ways to pay. Including BNPL in credit scores could help bring new borrowers into the system and reward responsible repayment habits.

At the same time, BNPL use isn’t without risks. Because it’s so easy to access, many consumers juggle multiple BNPL loans, sometimes using them for everyday expenses like groceries. That can lead to overspending and financial strain  and until now, much of this activity hasn’t shown up on credit reports, creating what some experts call “phantom debt.” FICO says its new scoring models will give lenders better visibility into this growing segment of consumer borrowing.

FICO’s approach was developed after a year-long study with BNPL provider Affirm. Rather than penalize borrowers for frequently opening and closing BNPL accounts, something that could hurt scores under traditional models, FICO will aggregate the loans in a way that reflects how BNPL actually works. This avoids unfairly docking consumers for behavior that’s normal within the BNPL ecosystem. It’s a more tailored way to evaluate this evolving credit trend.

Still, don’t expect overnight changes. While FICO’s new scores aim to modernize credit assessments, the credit industry tends to move slowly. Many lenders still rely on older scoring models, and updating systems requires time, training, and investment. But over time, the inclusion of BNPL data could lead to a more accurate and inclusive view of how Americans manage debt  and help both lenders and consumers make smarter decisions.

• Verizon to Roll Out Private 5G at UK’s Thames Freeport

Verizon Business has secured a major contract to build multiple private 5G networks at Thames Freeport, one of the UK’s key shipping and logistics hubs. Partnering with Nokia, Verizon will deploy the networks across several industrial sites along the River Thames Estuary, including DP World’s ports and Ford’s flagship manufacturing plant in London.

Unlike public networks, private 5G offers dedicated, high-speed connectivity—perfect for powering advanced industrial tech like AI, predictive maintenance, and autonomous vehicles. While Europe’s ports are still in the early stages of 5G adoption, the technology is poised to transform operations by enabling real-time data tracking across cranes, drones, and cargo systems.

The companies haven’t shared financial details but described the project as part of a “multibillion-dollar operational transformation” of the region. Thames Freeport, launched in 2021, offers tax incentives to attract businesses and revive the local economy.

Verizon and Nokia have been expanding their global footprint in private networks, especially in areas where Verizon doesn’t operate a public wireless service. For this project, Nokia will be the exclusive hardware and software provider, supporting next-gen capabilities across one of the UK's most critical logistics corridors. Bloomberg 

• FedEx Shares Drop as Profit Outlook Flags Trade Uncertainty

FedEx shares fell more than 5% in after-hours trading Tuesday after the company issued a cautious outlook for the months ahead, citing ongoing uncertainty around global trade and softer demand. The shipping giant forecast first-quarter profit below analysts' expectations and opted not to provide full-year guidance—largely due to volatility tied to U.S. trade policy, particularly with China.

"The global demand environment remains volatile," FedEx CEO Raj Subramaniam said on the company’s earnings call, reflecting broader concerns that have rippled across global supply chains. Tariff whiplash under President Donald Trump—especially the rollercoaster in duties applied to Chinese goods—has complicated planning for many multinationals. FedEx, which is more exposed to China trade than rival UPS, has felt this impact acutely.

Executives also pointed to the end of duty-free status for shipments from Chinese e-commerce players like Temu and Shein as a key headwind. Despite a stronger-than-expected fourth quarter—where cost-cutting and stronger export volumes lifted margins—FedEx projected Q1 earnings of $3.40 to $4 per share, falling short of the $4.06 analysts anticipated.

While UPS shares dipped only slightly, FedEx's deeper exposure to U.S.-China shipping has it bracing for more pressure, particularly in air freight. The company said it would continue to adjust operations as needed but made clear that policy clarity is crucial to forecasting meaningful growth. Reuters 

• Altman Talks Future With Microsoft CEO, Highlights AI’s Strategic Role

OpenAI CEO Sam Altman shared that he recently spoke with Microsoft CEO Satya Nadella about the future of their partnership, during an appearance on a New York Times podcast Tuesday. The conversation comes amid ongoing discussions about potentially revising the terms of Microsoft’s significant investment in OpenAI.

Reports from the Wall Street Journal and Financial Times suggest that Microsoft is weighing changes to its equity stake in the AI startup and could even pause talks if key terms aren’t agreed upon. Both companies declined to comment when reached by Reuters.

Altman acknowledged that while the collaboration has occasional tension—as any deep partnership might—it has overall been “wonderfully good for both companies.” He also mentioned having had constructive conversations with former President Donald Trump about AI’s role in global strategy and economics, noting Trump’s grasp of the tech’s broader implications.

Earlier this year, Trump unveiled the $500 billion “Stargate” AI infrastructure initiative, backed by firms like SoftBank, Oracle, and OpenAI. Bloomberg 

Minor Headlines 

• Mamdani Shocks Establishment with Breakout Performance in NYC Mayoral Primary. Financial Times 

• Student Loan Repayments Slide as Delinquencies Climb to 31%. Bloomberg 

• Prosus Eyes E-Commerce Expansion to Boost Revenue. Reuters 

• Trump Rejects Pentagon’s Assessment, Claims Iran Nuclear Sites ‘Destroyed’. Reuters 

• Mamdani Shocks Establishment with Breakout Performance in NYC Mayoral Primary. Financial Times 

• Norrsken Commits $348 Million to ‘AI for Good’ Investment Fund. TechCrunch 

• Amazon Ranks Lowest Again in UK Grocery Supplier Survey, Regulator Reports. Bloomberg 

• Oil Prices Climb Over 1% Amid Ceasefire Hopes and Demand Projections. Reuters 

• Nasdaq 100 Hits First Record Close Since February. CBNC 

• Worldline Stock Plunges Over 20% Following Media Probe. CNN 

Gen Z Word of the Day 

Stan

No, it's not short for Stanley. Instead, it's a combination of "stalker" and "fan." If you stan someone, it means you're obsessed, but not in a creepy way.