Economics

Summary

Hooters filed for Chapter 11 bankruptcy in Texas, planning to sell its 100 company-owned restaurants to two major franchisee groups from Tampa and Chicago.

These groups already run a third of Hooters' U.S. franchises. The company blamed closures on rising food and labor costs and faces lawsuits over discrimination.

It expects to exit bankruptcy within 90–120 days. Private equity owners Nord Bay Capital and TriArtisan bought Hooters in 2019.

The buyer group includes original founders aiming to make the brand more family-friendly.

Summary

Tesla's stock fell 36% in Q1 2025, closing at $259.16, down from $403.84 at the end of 2024, making it one of the S&P 500’s worst performers.

The drop follows public backlash against Elon Musk's role in Trump’s cost-cutting DOGE initiative. Protests, vandalism, and a global “Tesla Takedown” campaign targeted Musk and Tesla.

Musk’s net worth dropped $121 billion.

Ongoing market volatility, tied to Trump’s new tariff plan launching April 2, is expected to further impact Tesla and broader markets.

Summary

Trump is considering a sweeping 20% tariff on most U.S. imports, according to the Washington Post, as part of the upcoming reciprocal trade plan.

Trump has vowed to target all nations he claims treat the U.S. unfairly.

While no final decision has been made, officials are also discussing using expected tariff revenue for a tax refund or dividend.

Markets are awaiting full details, which Trump plans to announce Wednesday. The administration has already raised tariffs on steel, aluminum, autos, and all Chinese imports.

cross-posted from: https://thelemmy.club/post/24430762

Summary

Global stock markets fell sharply Monday after Donald Trump signaled new U.S. tariffs set for Wednesday would target “all countries,” heightening fears of a broad trade war.

Asian and European indices dropped, with Japan’s Nikkei down 4% and Germany’s DAX falling over 1%. Gold hit a record $3,128 as investors fled to safe assets.

Economists warned of rising inflation and falling consumer confidence. Goldman Sachs raised U.S. recession odds to 35%, projecting further S&P 500 losses.

Trump dismissed car price concerns, intensifying market anxiety over long-term economic fallout.

Summary

Donald Trump defended upcoming auto tariffs, telling NBC News he “couldn’t care less” if they raise car prices.

He said higher prices would drive consumers toward American-made vehicles.

The new tariffs, set for April 2, have drawn global criticism and domestic concern, including from GOP Senator Rand Paul, who warned they undermine the benefits of international trade.

Trump, who campaigned on lowering consumer prices, said he’d only ease tariffs if offered “something of great value.” A CBS poll shows 52% disapprove of his economic handling.

Summary

Experts are sounding alarms over rising economic distress as consumer confidence hits a 12-year low, stock markets slide, and fears of stagflation mount.

Triggered in part by Trump’s tariff expansions set for April 2, inflation expectations are climbing, GDP projections are falling, and unemployment is expected to rise.

Analysts warn that even wealthy Americans are losing optimism, with spending likely to decline.

Economist Alan Blinder called Trump’s policies as "recession roulette," predicting a potential “Trumpcession.” Bank of America now sees stagflation—low growth and high prices—as the most probable outcome for 2025.

Summary

Trump’s immigration policies threaten Avondale, Pennsylvania, where mushroom farming powers the local economy and employs many undocumented immigrants.

Recent arrests have spread fear, leaving streets empty and families anxious.

Farmers say deportations would devastate the $1 billion mushroom industry, as American-born workers rarely take the difficult, year-round jobs.

Community members fear family separations and losing livelihoods, while businesses struggle to maintain operations amid policy uncertainty.

Summary

Wall Street saw a sharp sell-off on Friday, with the Dow Jones dropping 715.80 points (1.69%) to 41,583.90 amid inflation fears and trade policy uncertainty.

The S&P 500 fell 1.97%, and the Nasdaq lost 2.7%. Tech giants Alphabet, Meta, and Amazon led declines, losing 4.88%, 4.29%, and 4.29%, respectively.

Inflation concerns intensified after data showed a 2.8% rise in the core PCE price index, exceeding expectations.

Investors remain concerned ahead of Trump’s April 2 tariff announcements, with retaliatory measures from Canada and potential EU concessions looming.

Summary

Trump threatened "far larger" tariffs on the EU and Canada if they unite to harm the U.S. after announcing a 25% tariff on foreign-made cars and parts, effective April 2 and May respectively.

The tariffs aim to boost U.S. car production but may inflate prices by $5k-$10k per vehicle, harming both U.S. and foreign automakers.

Canada condemned the move as a "direct attack," while the EU signaled potential retaliation.

Global markets reacted negatively, with car stocks dropping amid fears of escalating trade tensions.

Summary

Trump announced a 25% tariff on all imported cars, escalating the global trade war and risking higher car prices for U.S. consumers.

The move follows earlier auto tariffs on Mexico and Canada, which were delayed. The new tariffs could impact over a million U.S. auto industry jobs and disrupt supply chains.

Stock markets reacted negatively, with the Dow falling 130 points and Tesla dropping 5.5%.

Retaliatory tariffs from China, the EU, and Canada have already sparked inflation concerns, with Fed Chair Jerome Powell blaming tariffs for recent price hikes.

Summary

Wall Street braces for Trump’s April 2 tariff announcement amid ongoing market volatility and investor uncertainty.

The S&P 500 has dropped nearly 10% earlier this month and is on track for a 3% quarterly decline.

Investors fear steep, prolonged tariffs and potential retaliatory measures could harm the U.S. economy.

Financial strategists predict continued volatility, with some hoping Trump pivots to tax cuts to boost market confidence. Analysts warn that extended tariff disputes risk long-term economic damage and dampened consumer confidence.

Summary

The United States has paused financial contributions to the World Trade Organization (WTO), pending a review of payments to international organizations.

This move aligns with Trump’s "America First" policy. The U.S. owes 22.7 million Swiss francs as of the end of 2024 and is now classified under "Category 1 arrears," losing some administrative privileges.

The funding halt follows previous U.S. actions that weakened the WTO’s dispute resolution system.

The WTO is developing contingency plans, while experts expect the U.S. to eventually pay its dues.

Summary

Wall Street banks, including JPMorgan, Bank of America, Goldman Sachs, and Morgan Stanley, are preparing more job cuts amid declining investment banking revenue and market turmoil fueled by Trump’s tariff threats.

Investment banking fees dropped 6.3% year-over-year, and equity offerings fell from $69 billion to $57 billion.

Analysts warn that if deal activity doesn’t rebound by mid-summer, layoffs will intensify, especially at boutique firms.

Bank stocks have suffered, with smaller firms like Evercore and Jefferies down over 20% year-to-date, while larger banks remain more resilient.

Summary

U.S. consumer confidence fell to a 12-year low in March 2025, dropping 7.2 points to 92.9, as reported by the Conference Board.

The short-term expectations index fell 9.6 points to 65.2, raising recession concerns.

Rising tariffs and persistent inflation fueled pessimism. Major retailers like Walmart and Target reported cautious forecasts, citing economic uncertainty.

Administration officials downplayed the data, arguing consumer confidence no longer correlates strongly with spending trends.

Summary

Tesla's European sales fell nearly 45% in February amid backlash over Elon Musk's political ties to Donald Trump and controversial actions, including support for Germany's far-right AfD party.

The company sold fewer than 16,000 cars, dropping its market share to 9.6%, the lowest February figure in five years.

Meanwhile, Chinese rival BYD reported global revenue of $100 billion, surpassing Tesla. Volkswagen and BMW also saw significant EV sales growth.

Analysts attribute Tesla’s decline to both political controversy and a Model Y update.

Summary

Fund managers have sharply cut growth expectations, with 44% predicting a weaker global economy, up from 2% in February, amid tariff threats from Trump.

Many are holding cash like Warren Buffett, mirroring his $334 billion reserve.

BofA's survey of 171 managers overseeing $425 billion found 55% see a trade war-induced recession as the top risk, while over 70% expect stagflation.

Despite fears, fund managers still anticipate a "soft landing" with Fed rate cuts.

Summary

Hyundai announced a $21 billion investment in U.S. onshoring, including a $5.8 billion steel plant in Louisiana employing 1,400 workers to support electric vehicle production.

The investment aims to navigate tariffs and boost localization. Hyundai, a major EV competitor to Tesla, also announced a third U.S. auto plant in Georgia.

The move follows pressure from the Trump administration over trade deficits and high tariffs on U.S. exports to South Korea.

Summary

U.S. retailers like Walmart and Target are negotiating with suppliers over price hikes caused by Trump’s tariffs on imports, including aluminum and Chinese goods.

Suppliers face increased costs but struggle to pass them on, fearing product removal from shelves. Walmart and Target resist raising prices, wary of losing customers.

Some manufacturers, like Nordic Ware and Bogg Bag, explore cost-cutting measures or alternative production sites.

Loss leading is common as suppliers absorb costs to stay competitive, while others negotiate shared burdens to minimize price increases.

Summary

The IRS anticipates a $500 billion revenue loss as taxpayers increasingly skip filings following cuts from Elon Musk under Trump.

The IRS, set to downsize by 20% by May 15, has seen increased online chatter about avoiding taxes, with individuals betting auditors won’t scrutinize accounts.

Experts warned that workforce reductions could cripple the agency's efficiency.

Treasury officials predict a 10% drop in tax receipts compared to 2024.

Former IRS commissioners have criticized the cuts, warning of dysfunction and reduced collection capacity.