Business

Subterms

    More stories

    • 150 Shares169 Views

      in US Politics

      Apple quarterly earnings beat Wall Street expectations amid Trump trade policy chaos

      by

      Apple’s second-quarter financials came in slightly higher than Wall Street’s expectations on Thursday.The tech giant reported revenue of $95.4bn, up more than 4% over last year, and earnings-per-share of $1.65 per share, up more than 7%. Analysts had predicted revenue of $94.5bn and earnings of $1.62. The company, worth $3.2tn, has beaten Wall Street’s expectations for the previous four quarters.Investors have been keeping their eyes on Apple as it prepared to report its financial results . The tech giant has been working to calm nervous analysts after Donald Trump levied sweeping tariffs on countries around the world that are likely to complicate supply chains for consumer electronics. Since the beginning of the year, Apple’s stock has slumped 16%.In early after-hours trading, the company’s stock dropped by more than 5%, likely due to its services division reporting revenue that missed Wall Street’s expectations, despite growth over last year. The division covers iCloud subscriptions and revenue from various licensing deals. Sales in China also missed estimates.Apple’s CEO, Tim Cook, remained positive, however, saying that the company was reporting “strong quarterly results, including double-digit growth in Services”.The iPhone maker is heavily reliant on Chinese manufacturing for its phones, tablets and laptops. Days after Trump instituted soaring tariffs on China, at one point as high as 245%, the president said he would make an exception for consumer electronics.Cook spoke to senior White House officials around this time, according to the Washington Post. It was after these conversations that Trump announced his exception for consumer electronics. Apple’s stock rose 7% in the days after the announcement.However, it is unclear how lasting the reprieve may be. Howard Lutnick, the US commerce secretary, has called the exemption “temporary”, and even Trump later said on social media that there’s been no “exception”.The president has repeatedly said he wants to see more manufacturing in the US. In February, he met with Cook to discuss investing in US manufacturing. “He’s going to start building,” Trump said after the meeting. “Very big numbers – you have to speak to him. I assume they’re going to announce it at some point.”JP Morgan estimates costs would skyrocket for Apple if it moves production to the US, saying in a note this week that it could “drive a 30% price increase in the near-term, assuming a 20% tariff on China”. JP Morgan and other analysts have said Apple could continue to move more of its manufacturing to India, which only faces a 10% tariff.skip past newsletter promotionafter newsletter promotionApple chartered jets to airlift some $2bn worth of iPhones from India to the US earlier this month to boost inventory in anticipation of price hikes from Trump’s tariffs and panic-buying by worried consumers. This comes as investors have expressed concerned about decreasing iPhone sales in China, the world’s biggest smartphone market. During its last earnings in January, Apple reported that iPhone sales fell by 11.1% in China in the first quarter and missed Wall Street’s expectations for iPhone revenue.In the short term, however, analysts say the tariff confusion could benefit Apple with people panic-buying its products in fear that prices will rise. “What remains to be seen in the longer term is how much of any increased cost will be passed on to consumers,” said Dipanjan Chatterjee, principal analyst for Forrester. “And if [consumers] will absorb these price increases without pulling back on demand for Apple products.” More

    • 125 Shares189 Views

      in US Politics

      Tesla denies report claiming board looked to replace Elon Musk

      by

      Tesla has denied a report that its board sought to replace Elon Musk as its chief executive amid a backlash against his rightwing politics and declining car sales.Robyn Denholm, the chair of the board at the electric carmaker, said in a statement on Tesla’s social media account on X: “Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company.“This is absolutely false (and this was communicated to the media before the report was published). The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead.”View image in fullscreenIt followed a Wall Street Journal story published on Wednesday that claimed “board members” had contacted headhunters to recruit a successor about a month ago.The reported move came as tensions grew at Tesla around falling profits and criticism of Musk for spending much of his time in Washington, where he has been helping Donald Trump slash federal spending as de facto head of the “department of government efficiency” (Doge).It is unclear in the report whether these members were acting on behalf of the board as a collective, or if it was only some of them taking steps to find a new chief executive. The Tesla board is made up of eight people, including Elon Musk himself, his brother, Kimbal Musk, and James Murdoch, son of media mogul Rupert Murdoch.Tesla has been hit by a widespread backlash against Musk’s recent political activity, not only against his Doge work, but also his public support for the far-right Alternative für Deutschland (AfD) party before German national elections in February. Sales of the electric car have dropped in some of its biggest markets and there have been political protests at some of its showrooms.Last week, the company reported that profits had dropped by 71% in the first quarter of this year to $409m (£307m), compared with $1.39bn in the same period in 2024. Meanwhile, Tesla’s stock has suffered, with the company losing about a quarter of its market value this year.Musk told investors that starting from May he would be “allocating far more of my time to Tesla”. He is scheduled to leave his government role on 30 May, according to a strict 130-day cap on his service as a special government employee.skip past newsletter promotionafter newsletter promotionThere have long been concerns around the demands on Musk’s time. As well as Tesla, he oversees four other companies, including the space exploration company SpaceX and the social media platform X, formerly known as Twitter.Musk denounced the Wall Street Journal report on X on Thursday. He wrote: “It is an EXTREMELY BAD BREACH OF ETHICS that the @WSJ would publish a DELIBERATELY FALSE ARTICLE and fail to include an unequivocal denial beforehand by the Tesla board of directors!” More

    • 225 Shares109 Views

      in US Politics

      Trump hails achievements of first 100 days despite polls revealing American disapproval on economy – as it happened

      by

      Trump is speaking now at a rally in Warren, Michigan and he has fulsome praise for what he calls “the most successful 100 days of any administration in the history of our country”.A raft of opinion polls released this week shows that a majority of Americans disagree, strongly, expressing deep disapproval of his performance as president, and particularly his handling of the economy, which has been severely damaged by his chaotic imposition of tariffs against nearly even nation, except Russia.A new NPR/PBS News/Marist poll released on Tuesday shows that 45% of those asked to grade Trump’s performance as president gave him an F, 7% a D, 8% a C, 17% a B, and 23% an A.Half of independents said Trump deserves an F, and only a slim majority of Republicans gave him an A.This brings our coverage of day 100 of Donald Trump’s second term to a close. We will be back in the morning, as the next of 1,000-plus days dawn, but in the meantime we leave you with this list of the day’s developments:

      At Donald Trump’s rally in Michigan, his supporters reacted to the screening of a long video, set to ominous music, showing the harsh treatment of men he had deported from the United States to a prison in El Salvador without due process by chanting”: “USA! USA!”

      As Trump defended his broadly unpopular handling of the economy, he criticized Fed chair Jerome Powell, saying: “I have a Fed person who’s not really doing a good job, but I won’t say that.” The businessman president who used bankruptcy law to rescue his failed enterprises six times added: “I know much more about interest rates than he does”.

      Trump mistakenly attacked the Michigan representative John James, calling the Republican he had endorsed “a lunatic” for trying to impeach him. That was someone else.

      Trump supporters praised by the president at a rally included the former member of a violent cult who founded Blacks for Trump, and a retired autoworker who once told people to read David Duke’s “honest and fair” book about race.

      The US Department of Justice has begun the first criminal prosecutions of immigrants for entering a newly declared military buffer zone created along the border with Mexico, according to court filings.

      Trump called Amazon executive chair Jeff Bezos on Tuesday morning to complain about a report that the company planned to display prices that show the impact of tariffs. Trump told reporters later that Bezos “was very nice, he was terrific” during their call, and “he solved the problem very quickly”.

      The Trump administration has reached one trade deal already but won’t tell us who with until that country’s prime minister and parliament approve the deal, the commerce secretary Howard Lutnick said told CNBC.

      The United States proposed sending up to 500 Venezuelan immigrants with alleged ties to the Tren de Aragua gang to El Salvador as the two governments sought to reach an agreement on the use of the nation’s notorious mega-prison, according to emails seen by CNN.

      Donald Trump signed a proclamation on Tuesday that offers temporary relief to automakers from the 25% tariffs he imposed in March in a previous proclamation. The measure gives automakers a break for two years to give them time to move auto production back to the United States.

      Doug Emhoff, the husband of Kamala Harris, accused the Trump administration of turning “one of the worst atrocities in history into a wedge issue”, after he and other Joe Biden appointees were removed from the board of the US Holocaust Memorial Museum.

      Pete Hegseth has abruptly banished the Pentagon’s Women, Peace and Security program as part of his crusade against diversity and equity, dismissing it as a “woke divisive/social justice/Biden initiative” despite it being a signature Donald Trump achievement from his first term.

      Donald Trump surprised Michigan’s governor, Gretchen Whitmer, by inviting her to speak during his address at Selfridge air national guard base on Tuesday afternoon.
      One notable feature of Tuesday’s Trump rally in Michigan is that it featured cameos from supporters of the president who have been fixtures of his campaign rallies for nearly a decade.Early in the speech, as he pointed to familiar faces, Trump recognized the Front Row Joes, a group of diehard supporters akin to groupies who have traveled the country to attend dozens of his rallies. He also shouted out Blake Marnell, a supporter who wears a “brick suit” in homage to Trump’s border wall and witnessed the assassination attempt last year in Butler, Pennsylvania.“There’s my friend, Blacks for Trump. I like that guy. He follows me”, the president said pointing into the crowd. “We love you, your whoile group has been so supportice over the years, I want to thank you”.“Everyone thinks I pay you a fortune”, Trump added. “I don’t even know who the hell he is, I just like him”.As I reported in 2020, the “Blacks for Trump” founder is Maurice Symonette, a.k.a. Michael the Black Man, a former member of a violent cult who posts anti-Semitic screeds and racist conspiracy theories online, and yet has been a featured member of the audience at Trump campaign events since 2016.Symonette was known as Maurice Woodside until 1992, when the black supremacist cult leader he followed, Yahweh ben Yahweh, was jailed for leading a conspiracy to murder 14 white people in initiation rites. Woodside was among the Miami-based Nation of Yahweh cult members charged in two of the murders, but he was acquitted. After the trial, he changed his last name to Symonette, which was his father’s surname, before eventually reinventing himself as Michael the Black Man.On his website, Symonette makes a variety of bizarre claims, including that Omar and other prominent Black Democrats, artists and athletes — including former President Barack Obama, Jesse Jackson, Spike Lee, Colin Kaepernick, and Rep. Maxine Waters, D-Calif. — are “DECEVING [sic] FAKE BLACK PEOPLE WHO ARE REALLY INDIANS!” In a sermon now deleted from YouTube, he claimed that the Senate is controlled by a secret underground of “Cherokee Mormons.”Later in the speech, Trump called to the stage another supporter who has been a figure at rallies since 2016: Brian Pannebecker, a retired auto worker who told the crowd, “We have the greatest President, probably not just in our lifetimes, but in the history of this country!”Pannebecker’s brief cameo was clipped and shared on social media by an official White House account, despite the fact that it was first reported a decade ago that he had written a glowing review of David Duke’s book, “My Awakening”, in which he called the former Klansman’s work “honest and fair”. After reading the book, Pannebecker wrote in his online review, people “will be able to discuss the issue of race without the fear of being labeled a racist because you will have the facts and the truth on your side”.A federal judge in New Jersey ruled on Tuesday that Mahmoud Khalil, the recent Columbia graduate and Palestine solidarity activist who was detained on 8 March in his apartment building in New York and moved to an Immigration and Customs Enforcement (Ice) detention center in Louisiana, can move forward with his lawsuit claiming the government is unlawfully detaining him for his political views.“This Court has habeas jurisdiction over this case” Judge Michael Farbiarz wrote. “And as set out in this Opinion, that jurisdiction is intact. It has not been removed.”“As I am now caring for our barely week-old son, it is even more urgent that we continue to speak out for Mahmoud’s freedom, and for the freedom of all people being unjustly targeted for advocating against Israel’s genocide in Gaza,” Noor Abdalla, Khalil’s wife said in a statement. “I am relieved at the court’s finding that my husband can move forward with his case in federal court. This is an important step towards securing Mahmoud’s freedom. But there is still more work to be done. I will continue to strongly advocate for my husband, so he can come home to our family, and feel the pure joy all parents know of holding your first-born child in your arms.”“The court has affirmed that the federal government does not have the unreviewable authority to trample on our fundamental freedoms,” Noor Zafar of the ACLU’s Immigrants’ Rights Project said in a statment emailed to reporters. “This is a huge step forward for Mahmoud and for the other students and scholars that the Trump administration has unlawfully detained in retaliation for their political speech, and a rebuke of attempts by the executive to use immigration laws to weaken First Amendment protections for political gain.”The US Department of Justice has begun the first criminal prosecutions of migrants for entering a newly declared military buffer zone created along the border with Mexico, according to court filings, Reuters reports.At least 28 migrants were charged were charged in federal court in Las Cruces, New Mexico, on Monday for crossing into the 170-mile-long, 60-foot-wide militarized buffer zone patrolled by active-duty US troops.Pete Hegseth, the defense secretary, visited the area last week and said it was the start of a plan to extend the buffer zone along the border.“The reason we are here today, at almost the 100-day mark of President Trump’s administration is because you’re standing on a National Defense Area, this may as well be a military base” Hegseth said in a defense department social media video posted online. “Any illegal attempting to enter that zone is entering a military base.”“As New Mexicans, we have deep concerns about the enhanced militarization of our borderlands communities” the American Civil Liberties Union of New Mexico in a statement last week. “The expansion of military detention powers in the ‘New Mexico National Defense Area’ – also known as the ‘border buffer zone’ – represents a dangerous erosion of the constitutional principle that the military should not be policing civilians.”The idea of militarizing the border has long been a dream of far-right politicians, like the failed Arizona senate candidate Blake Masters, who devoted a campaign ad to the idea in 2022.Trump has left the stage, and his supporters are filing out of the venue, which we are told by the pool reporter there has a capacity of 4,000, but was only about half or three-fifths full.One bizarre moment early in the speech that we would have heard a lot more about had the speaker been Joe Biden was when Trump tore into Representative John James, telling the crowd the Michigan Republican he had endorsed and campaigned with was “a lunatic”.“Some guy that I never heard of, John James. Is he a congressman? This guy? He said, he said, ‘Ladies and gentlemen, I am going to start the impeachment of Donald Trump”, Trump told the crowd. Many of his supporters in the room, and watching at home, were probably aware that the president, who celebrates his 79th birthday in six weeks, had confused James with Representative Shri Thanedar, the Michigan Democrat who did, in fact, introduce articles of impeachment against Trump on Monday.Trump has just finished speaking and departed to the strains of the Village People anthem YMCA. He spoke for about 90 minutes in what was a fairly typical rally speech and even told the crowd early on, “I miss you guys. I miss the campaign”.If there has been one constant theme throughout his time in office, it has been that he clearly loves the adulation of the crowd that comes from making campaign speeches far more than the work of governing.Trump just made the entirely false claim that, “for the first time in modern history, more Americans believe that our country is headed in the right direction than the wrong direction”.“For the first time ever, in, I think, ever, that they’re saying the country is headed in the right direction”, Trump added. “Has never happened before”.It is not clear why the president thinks this is true, or indeed if he does, but it is very clearly not true.In the latest nationwide poll, conducted from April 17-21 for the Associated Press by National Opinion Research Center at the University of Chicago, the overwhelming majority of Americans said that the country is headed in the wrong direction (62% vs 37%).The latest Gallup poll, from earlier in April showed that just 34% were satisfied with the way things were going in the US, and 64% were dissatisfied. While those numbers were markedly better than last summer, when satisfaction was as low as 18% and dissatisfaction reached 80%, the majority still clearly says the country is headed in the wrong direction.It is also not true to say that American have never previously said the country was going in the right direction. Gallup found that 50% of the public said that things were going n the right direction at this point in George W. Bush’s first term in 2001. There was even more optimism in 1999, during the presidency of Bill Clinton, when the right direction number reached 70%.Defending his handling of the economy, which has been severely damaged by his trade war and the prospect of rising inflation, Trump just told his supporters in Michigan: “Inflation is basically down, and interest rates came down despite the fact that I have a Fed person who’s not really doing a good job, but I won’t say that. I want to be very nice. I want to be very nice and respectful to the Fed. You’re not supposed to criticize the Fed; you’re supposed to let him do his own thing, but I know much more about interest rates than he does, believe me.”At his rally in Michigan, Donald Trump’s supporters reacted to the screening of a long video, set to ominous music, showing the harsh treatment of men he had deported from the United States to a prison in El Salvador without due process by chanting “USA! USA”!”The video, first posted on Elon Musk’s social media platform X by Salvadoran President Nayib Bukele in March, shows 238 men accused of being members of the Venezuelan criminal organization, Tren de Aragua, being taken from planes and confined in the Terrorism Confinement Center, known as Cecot.The images of the abusive treatment clearly delighted Trump, and his supporters. The fact that the men were not given an opportunity to contest the accusation that they are members of either Tren de Aragua or the Salvadoran gang MS-13, seemed not to trouble Trump.Instead, he accused Democrats of “racing to the defense of some of the most violent savages on the face of the Earth”.“They’re racing to the courts to help them”, Trump claimed, ignoring the fact that his own administration has admitted in court that at least one of the man deported, Kilmar Ábrego García, was sent there by mistake, in violation of an order issued during hjis previous term in office. The families of other men seen in the video have pointed to multiple errors in the interpretation of their tattoos as proof that they are gang members.Trump is speaking now at a rally in Warren, Michigan and he has fulsome praise for what he calls “the most successful 100 days of any administration in the history of our country”.A raft of opinion polls released this week shows that a majority of Americans disagree, strongly, expressing deep disapproval of his performance as president, and particularly his handling of the economy, which has been severely damaged by his chaotic imposition of tariffs against nearly even nation, except Russia.A new NPR/PBS News/Marist poll released on Tuesday shows that 45% of those asked to grade Trump’s performance as president gave him an F, 7% a D, 8% a C, 17% a B, and 23% an A.Half of independents said Trump deserves an F, and only a slim majority of Republicans gave him an A.“Today, the Prime Minister, Mark Carney, spoke with the President of the United States, Donald J Trump”, a statement from the Canadian prime minister’s office said.“President Trump congratulated Prime Minister Carney on his recent election. The leaders agreed on the importance of Canada and the United States working together – as independent, sovereign nations – for their mutual betterment. To that end, the leaders agreed to meet in person in the near future.”Carney’s center-left Liberal party won Monday’s general election thanks to a wave of resentment about Trump’s threats to annex Canada and the imposition of tariffs on Canadian imports.“As I’ve been warning for months, America wants our land, our resources, our water, our country”, Carney said in his victory speech late Monday. As the crowd jeered and shouted “Never!” Carney agreed. “These are not idle threats. President Trump is trying to break us so that America can own us. That will never, never, ever happen”.As Canadian went to the polls on Monday, Trump posted what seemed like an endorsement of Carney’s rival, the Conservative party leader Pierre Poilievre, suggesting that the pro-Trump politician would help bring about Canada’s absorption into the United States. When the votes were counted, however, Poilievre, who had a commanding lead in the polls before Trump started talking about annexing the country, had not only failed to lead the Conservatives to power, he had even lost his own seat.Despite Carney’s office claiming on Tuesday that he and Trump had agreed to work together “as independent, sovereign nations”, White House officials insisted that Trump is still serious about his stated desire to make Canada the 51st US state.White House press secretary Karoline Leavitt was asked during a briefing for rightwing influencers if Trump was “truthing or trolling” when he says that he wants to annex Canada, and Greenland. “Trump truthing, all the way”, she replied. “And the Canadians would benefit greatly, let me tell you that”.Donald Trump surprised Michigan’s governor, Gretchen Whitmer, by inviting her to speak during his address at Selfridge air national guard base on Tuesday afternoon.Trump, who came to Macomb county, Michigan, for an evening rally to celebrate what he calls the historic accomplishments of the first 100 days of his second term, despite widespread disapproval of his actions by a majority of Americans in a series of polls, announced a new fighter jet mission for the base outside Detroit, easing fears that the installation would be closed.For decades, Trump said, the base has “stood as a crucial pillar of North American air defense”.“In recent years, many in Michigan have feared for the future of the base. They’ve been calling everybody, but the only one that mattered is Trump,” he said. “Today I have come in person to lay to rest any doubt about Selfridge’s future.”Whitmer’s political standing was damaged earlier this month when she was photographed hiding her face from photographers in the Oval Office after Trump invited her to be present as he signed executive orders, two of which demanded investigations of critics who had served in his first administration.On Tuesday, she was careful to begin her impromptu remarks by saying that she had not expected to speak, and then praised the decision as a boon for the local economy, but did not praise Trump, as Republicans he invited to make remarks did.Donald Trump signed a proclamation on Tuesday that offers temporary relief to automakers from the 25% tariffs he imposed in March in a previous proclamation.The White House confirmed to Fox Business earlier that the new measure would give automakers a break for two years to give them time to move auto production back to the United States.The proclamation outlines a series of technical changes to the tariff regime, “to modify the system imposed in Proclamation 10908 by reducing duties assessed on automobile parts accounting for 15 percent of the value of an automobile assembled in the United States for 1 year and equivalent to 10 percent of that value for an additional year”.As we reported earlier, the changes will allow carmakers with US factories to reduce the amount they pay in import taxes on foreign parts, using a formula tied to how many cars they sell and the price.Doug Emhoff, the husband of Kamala Harris, accused the Trump administration of turning “one of the worst atrocities in history into a wedge issue”, after he and other Joe Biden appointees were removed from the board of the US Holocaust Memorial Museum.Emhoff, who is Jewish and spoke passionately against the rising tide of antisemitism during his time as the second gentleman, said he was informed on Tuesday that he had been removed from the museum’s council.“Let me be clear: Holocaust remembrance and education should never be politicized. To turn one of the worst atrocities in history into a wedge issue is dangerous – and it dishonors the memory of six million Jews murdered by Nazis that this museum was created to preserve,” he said.“No divisive political decision will ever shake my commitment to Holocaust remembrance and education or to combatting hate and antisemitism. I will continue to speak out, to educate, and to fight hate in all its forms – because silence is never an option.”The New York Times reported that the Trump administration also fired Ron Klain, Biden’s first chief of staff; Susan Rice, national security adviser to Barack Obama, and Biden’s top domestic policy adviser; and Tom Perez, the former labor secretary who was a senior adviser to the former president.Trump defeated Harris, then the US vice-president, in November. Emhoff’s law firm recently struck a deal with the Trump administration to avert an executive order targeting its practice, a decision Emhoff is reported to have voiced his disagreement with.Pete Hegseth has abruptly banished the Pentagon’s Women, Peace and Security program as part of his crusade against diversity and equity, dismissing it as a “woke divisive/social justice/Biden initiative” despite it being a signature Donald Trump achievement from his first term.In a post on X, the US defense secretary wrote: “This morning, I proudly ENDED the ‘Women, Peace & Security’ (WPS) program inside the [Department of Defense]. WPS is yet another woke divisive/social justice/Biden initiative that overburdens our commanders and troops – distracting from our core task: WAR-FIGHTING.”Hegseth added that the program was “pushed by feminists and left-wing activists”, claiming: “Politicians fawn over it; troops HATE it.”But the decision is raising some eyebrows, as the initiative was established during Trump’s first administration when he signed the Women, Peace and Security Act in 2017, making the US the first country in the world to codify standalone legislation on the matter.The Trump campaign even courted female voters by citing the initiative as one of its top accomplishments for women on its website.Attempting to square this circle, Hegseth later claimed the Biden administration had “distorted & weaponized” the original program. “Biden ruined EVERYTHING, including ‘Women, Peace & Security,’” he insisted.The Senate has confirmed billionaire investment banker Warren Stephens to be ambassador to the UK, backing Donald Trump’s nominee by 59 to 39.Stephens is chair, president and CEO of Stephens Inc, a privately owned financial services firm headquartered in Little Rock, Arkansas. He is a longtime contributor to Republican candidates, including Trump, having donated millions of dollars to support Trump’s campaigns and 2025 inauguration fund.Asked about negotiations with Congress over tax legislation, Trump said: “The Republicans are with us. I think we’ve got the big beautiful deal that’s moving along, and I think we’re going to have it taken care of.” He added:
      A very important element that we’re working on now, more important than anything with the border in good shape, is the fact that we want to get, and very importantly, the big beautiful new deal. If we get that done, that’s the biggest thing … And I think we’re going to get it done. We have great Republican support. If the Democrats blocked it, you’d have a 60% tax increase. I don’t think that’s going to happen. We have great support from Republicans. …
      The next period of time, I think, my biggest focus will be on Congress, the deal that we’re working on. That would be the biggest bill in the history of our country in terms of tax cuts and regulation cuts, and other things. More

    • 163 Shares189 Views

      in US Politics

      Democrats in Congress warn cuts at top US labor watchdog will be ‘catastrophic’

      by

      Democrats have warned that cuts to the US’s top labor watchdog threaten to render the organization “basically ineffectual” and will be “catastrophic” for workers’ rights.The so-called “department of government efficiency” (Doge) has targeted the National Labor Relations Board (NLRB) for cuts and ended its leases in several states.Representatives Bobby Scott, Mark DeSaulnier and Greg Casar have written to NLRB’s chair, Marvin Kaplan, and the acting general counsel, William Cowen, requesting answers on the cuts.“If the NLRB reduces its workforce and closes a number of regional offices, it will render the NLRB’s enforcement mechanism basically ineffectual, thereby chilling workers from exercising their rights to engage in union organizing and protected concerted activities,” they wrote.The letter noted the NLRB has already been suffering from drastic understaffing and budget constraints, while caseloads have increased. NLRB field staffing has declined by one-third in the last decade, while case intake per employee at the agency grew by 46%.“The harm to America’s workers by potential directives to reduce this independent agency’s workforce cannot be overstated,” the letter added. “Any NLRB reduction in force (RIF) or office closures would be catastrophic for workers’ rights.”The representatives also requested all information related to Doge’s role at the NLRB, including all communications Doge had with employees at the NLRB or regarding the NLRB with other agencies.Doge is led by billionaire Trump donor Elon Musk. Musk’s SpaceX has challenged the constitutionality of the NLRB. A whistleblower at the NLRB told NPR earlier this month that Doge accessed sensitive data at the agency and took steps to cover their tracks in doing so.The National Labor Relations Board Union, representing workers at the agency, reported last week that Doge cancelled the NLRB regional office’s lease a year early in Milwaukee, Wisconsin, ending it in August 2025.In March 2025, Doge terminated the lease for the NLRB regional office in Memphis, Tennessee. In February 2025, Doge terminated the leases for NLRB offices in Buffalo, New York; Puerto Rico; Los Angeles, California; Overland Park, Kansas; and Birmingham, Alabama.“The NLRB is an agency that has been starved of funding and resources for over a decade. We have seen massive staffing cuts simply from attrition. There is no need for any austerity measures with our operations; Congress has already done that to us.” the NLRB Union stated on social media.The NLRB declined to comment. More

    • 175 Shares129 Views

      in US Politics

      Despite Pope Francis’s wishes, there’s little appetite for richer nations to help the poorest

      by

      Pope Francis’s vast funeral in Rome on Saturday featured a certain amount of politicking amid the splendour, against the magnificent backdrop of St Peter’s Basilica.If the meeting between Volodymyr Zelenskyy and Donald Trump results in progress towards a less inequitable peace than the one currently envisaged by the US, perhaps that will be fitting, given the late pontiff’s consistent calls for an end to war.But in Washington last week, at the International Monetary Fund and World Bank, where the architecture is far less glorious, campaigners struggled to find much backing among the powerful for another aspect of Francis’s worldview – his calls to make 2025 a Jubilee year of debt forgiveness for the world’s poorest countries.A quarter century on from the hugely consequential Jubilee 2000 movement – in which churches played a major role – the pope had asked a commission chaired by the economist Joseph Stiglitz to report on the issue next month. Debt relief is also likely to be discussed at the UN financing for development conference in Seville in late June.But there was little optimism in Washington that any country is prepared to offer the necessary moral and political leadership to force the issue up the agenda. Certainly, it will not be the UK, which played a crucial role in the Jubilee 2000 campaign under Gordon Brown, but has shown little interest in the issue since imposing brutal cuts to aid spending, to boost defence.Meanwhile, ample evidence was shared in Washington to show how the situation is rapidly deteriorating. The IMF’s analysts warned that Trump’s dramatic shake-up of the global trading system, the final shape of which remains impossible to guess, will depress economic growth and ratchet up the risks of financial crisis.For emerging economies, the outlook is especially bleak. Many had already been left heavily indebted, after grappling with the Covid pandemic. And as the IMF’s Global Financial Stability Review made clear, one side-effect of the market chaos triggered by Trump’s “liberation day” is likely to be tighter financial conditions.That will make it harder, and more costly, for countries to refinance their debts – a problem the IMF said could be compounded by fresh volatility in the currency markets.The more is spent on debt repayments, the less is available for important areas of government spending that are necessary for development. As Achim Steiner, the head of the UN’s development arm, the UNDP,said on the sidelines of the spring meetings: “The debt servicing is essentially a defunding. We’re defunding, or forcing countries to take money out of their social and welfare and education budgets and health budgets just to service their debt. This is for obvious reasons bad: it’s not sustainable and ultimately contributes further to locking countries in into this stagnation.”He added: “If you are defunding your own education system, you’re locking yourself into a generation that is going to fall behind.”skip past newsletter promotionafter newsletter promotionA report by the British thinktank Development Finance International into tackling inequality in eastern and southern Africa, published at the spring meetings, found that 40% of countries in the region spent more on debt servicing last year than on healthcare and education combined. Since 2022, 80% have cut social spending as a share of their budget.This comes at a time when the economic impacts of the climate crisis are already being felt, in the soaring costs of extreme weather events for example. There is a consensus, at least outside the White House, that significant investment will be needed to manage the transition away from fossil fuels.Another report launched in Washington last week – from the expert panel on climate and finance, a joint project of the Colombian, French, Kenyan and German governments – warned of a “vicious circle”, between the “debt, climate and nature crises”.“Debt pressures and environmental vulnerabilities are most pronounced in the poorest and most credit-constrained countries … yet these countries account for only a tiny fraction of the consumption and emissions driving nature loss and climate change,” they said.Even the IMF itself suggested last week that debt restructuring may need to be part of the toolkit to respond to the rapidly changing economic and financial situation.“The path forward demands clarity and coordination. Countries should work constructively to promote a stable and predictable trade environment, facilitate debt restructuring, and address shared challenges,” it said in its World Economic Outlook.But campaigners complain that the IMF’s debt restructuring process, the Common Framework, is cumbersome and time-consuming – and can still leave beneficiaries with high servicing costs, because it does not contemplate debt write-offs.Scott Bessent, the US Treasury secretary, when he was not taking anti-woke side swipes at the IMF and the World Bank, said he would like to see the IMF get more involved in restructuring struggling countries’ debt. In a much-analysed speech, he said the IMF should “more proactively push official bilateral lenders to come to the table early, to work with borrower countries to minimise periods of debt distress”.Some development campaigners seized on his comments as a positive sign that the US would not stand in the way of multilateral efforts to ease the burden for the world’s poor.But others warned that in saying that he wanted to “make the IMF again”, and calling for it to be a “brutal truth teller”, Bessent appeared to be yearning for a return to the bad old days of economic shock theory, when the fund swept into struggling countries and imposed a prescription of harsh spending cuts and privatisation.Meanwhile, as they geared up to amplify Francis’s calls for a jubilee, some in Washington last week privately warned it may take a large-scale default to force the world’s powerful to accept the need to lift developing countries’ debt burdens. Let’s hope it doesn’t come to that. More

    • 150 Shares169 Views

      in US Politics

      US consumer sentiment sees largest drop since 1990 after Trump tariff chaos

      by

      US consumer sentiment plummeted in April after Donald Trump’s trade war threw the global economy into chaos, according to a new report.The index of consumer sentiment, a score based on a monthly survey asking Americans about their financial outlooks, fell by 32% since January – the largest drop since the 1990 recession, according to the University of Michigan’s Institute for Social Research.“Expectations worsened for vast swaths of the population across age, education income and political affiliation,” said Joanne Hsu, director of the surveys of consumers, in a statement. “Consumers perceived risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming ahead.”In April, the index of consumer sentiment fell to 52.2, down from 57 in March. The last time the index fell below 55 was in the summer of 2022, when inflation rose to 9%.Consumer expectation of inflation also soared from 5% in March to 6.5% in April, the highest it has been since 1981.It is a sign that, despite his insistence that tariffs will “make a lot of money” and have not yet raised prices, Trump still has not convinced many Americans that his tariffs will actually work.Trump’s trade policies have scared investors, causing sell-offs in stock and bond markets. The president softened his tone earlier this week on his trade war with China after a volatile few weeks. Markets rallied after Trump said that his Chinese tariffs “will come down substantially”, though he also warned that “it won’t be zero.”But Wall Street tends to be more reactive than consumers, who have shown four straight months of declining sentiment on the economy. Even after Trump paused the highest of his reciprocal tariffs, causing stock markets to rise, consumer inflation expectations still remained much higher compared with March.Higher inflation expectations have also been paired with consumers anticipating slower income growth for the year ahead, meaning that more of them will be hesitant to spend in the months ahead – which all could ultimately mean a slowdown in the economy.“Without reliably strong incomes, spending is unlikely to remain strong amid the numerous warning signs perceived by consumers,” Hsu said. More

    • 138 Shares189 Views

      in US Politics

      Ukraine, Gaza and Iran: can Witkoff secure any wins for Trump?

      by

      Donald Trump’s version of Pax Americana, the idea that the US can through coercion impose order on the world, is facing its moment of truth in Ukraine, Gaza and Iran.In the words of the former CIA director William Burns, it is in “one of those plastic moments” in international relations that come along maybe twice a century where the future could take many possible forms.The US’s aim has been to keep the three era-defining simultaneous sets of negotiations entirely separate, and to – as much as possible – shape their outcome alone. The approach is similar to the trade talks, where the intention is for supplicant countries to come to Washington individually bearing gifts in return for access to US markets.The administration may have felt it had little choice given the urgency, but whether it was wise to launch three such ambitious peace missions, and a global trade war, at the same time is debatable.It is true each of the three conflicts are discrete in that they have distinctive causes, contexts and dynamics, but they are becoming more intertwined than seemed apparent at the outset, in part because there is so much resistance building in Europe and elsewhere about the world order Donald Trump envisages, and his chosen methods.In diplomacy nothing is hermetically sealed – everything is inter-connected, especially since there is a common thread between the three talks in the personality of the property developer Steven Witkoff, Trump’s great friend who is leading the US talks in each case, flitting from Moscow to Muscat.View image in fullscreenTo solve these three conflicts simultaneously would be a daunting task for anyone, but it is especially for a man entirely new to diplomacy and, judging by some of his remarks, also equally new to history.Witkoff has strengths, not least that he is trusted by Trump. He also knows the president’s mind – and what should be taken at face value. He is loyal, so much so that he admits he worshipped Trump in New York so profoundly that he wanted to become him. He will not be pursuing any other agenda but the president’s.But he is also stretched, and there are basic issues of competence. Diplomats are reeling from big cuts to the state department budget and there is still an absence of experienced staffers. Witkoff simply does not have the institutional memory available to his opposite numbers in Iran, Israel and Russia. For instance, most of the Iranian negotiating team, led by the foreign minister, Abbas Araghchi, are veterans of the 2013-15 talks that led to the original Iran nuclear deal.Yuri Ushakov, Vladimir Putin’s chief foreign policy adviser, who attended the first Russian-US talks this year in Saudi Arabia, spent 10 years in the US as Russian ambassador. He was accompanied by Kirill Dmitriev, the head of the Russian sovereign wealth fund who then visited the US on 2 April.In the follow-up talks in Istanbul on 10 April, Aleksandr Darchiev, who has spent 33 years in the Russian foreign ministry and is Russian ambassador to the US, was pitted against a team led by Sonata Coulter, the new deputy assistant secretary of state for European and Eurasian affairs, who does not share Trump’s benign view of Russia.View image in fullscreenAs to the Gaza issue, Benjamin Netanyahu has lived the Palestinian conflict since he became Israel’s ambassador to the UN in 1984.Richard Nephew, a former US Iran negotiator, says the cuts to state department means the US “is at risk of losing a generation of expertise … It’s beyond tragedy. It’s an absolutely devastating national security blow with the evisceration of these folks. The damage could be permanent, we have to acknowledge this.”One withering European diplomat says: “It is as if Witkoff is trying to play three dimensional chess with chess grandmasters on three chessboards simultaneously, not having played the game before.”Bluntly, Witkoff knows he needs to secure a diplomatic win for his impatient boss. But the longer the three conflicts continue, the more entangled they become with one another, the more Trump’s credibility is questioned. Already, according to a Reuters Ipsos poll published this month, 59% of Americans think Trump is costing their country its credibility on the global stage.The risk for Trump is that the decision to address so much so quickly ends up not being a show of American strength but the opposite – the public erosion of a super power.In the hurry to seal a deal with Iran inside two months, Trump, unlike in all previous nuclear talks with Tehran, has barred complicating European interests from the negotiation room.To Iran’s relief, Witkoff has not tabled an agenda that strays beyond stopping Iran acquiring a nuclear bomb. He has not raised Iran’s supply of drones to Russia for use in Ukraine. Nor has he tabled demands that Iran end arms supplies to its proxies fighting Israel.That has alarmed Israel, and to a lesser extent Europe, which sees Iran’s desire to have sanctions lifted as a rare opportunity to extract concessions from Tehran. Israel’s strategic affairs minister, Ron Dermer, and Mossad’s head, David Barnea, met Witkoff last Friday in Paris to try to persuade him that when he met the Iran negotiating team the next day in Rome, he had to demand the dismantling of Tehran’s civil nuclear programme.Witkoff refused, and amid many contradictory statements the administration has reverted to insisting that Iran import the necessary enriched uranium for its civil nuclear programme, rather than enrich it domestically.Russia, in a sign of Trump’s trust, might again become the repository of Iran’s stocks of highly enriched uranium, as it was after the 2015 deal.Israel is also wary of Trump’s aggrandisement of Russia. The Israeli thinktank INSS published a report this week detailing how Russia, in search of anti-western allies in the global south for its Ukraine war, has shown opportunistic political support not just to Iran but to Hamas. Israel will also be uneasy if Russia maintains its role in Syria.But if Trump has upset Netanyahu over Iran, he is keeping him sweet by giving him all he asks on Gaza.Initially, Witkoff received glowing accolades about how tough he had been with Netanyahu in his initial meeting in January. It was claimed that Witkoff ordered the Israeli president to meet him on a Saturday breaking the Sabbath and directed him to agree a ceasefire that he had refused to give to Joe Biden’s team for months.As a result, as Trump entered the White House on 19 January, he hailed the “EPIC ceasefire agreement could have only happened as a result of our Historic Victory in November, as it signalled to the entire World that my Administration would seek Peace and negotiate deals to ensure the safety of all Americans, and our Allies”.But Netanyahu, as was widely predicted in the region, found a reason not to open talks on the second phase of the ceasefire deal – the release of the remaining hostages held in Gaza in exchange for a permanent end to the fighting.Witkoff came up with compromises to extend the ceasefire but Netanyahu rejected them, resuming the assault on Hamas on 19 March. The US envoy merely described Israel’s decision as “unfortunate, in some respects, but also falls into the had-to-be bucket”.View image in fullscreenNow Trump’s refusal to put any pressure on Israel to lift its six-week-old ban on aid entering Gaza is informing Europe’s rift with Trump. Marking 50 days of the ban this week, France, Germany and the UK issued a strongly worded statement describing the denial of aid as intolerable.The French president, Emmanuel Macron, is calling for a coordinated European recognition of the state of Palestine, and Saudi Arabia is insisting the US does not attack Iran’s nuclear sites.Witkoff, by contrast, has been silent about Gaza’s fate and the collapse of the “EPIC ceasefire”.But if European diplomats think Witkoff was naive in dealing with Netanyahu, it is nothing to the scorn they hold for his handling of Putin.The anger is partly because Europeans had thought that, after the Volodymyr Zelenskyy’s public row with Trump in the Oval Office, they had restored Ukraine’s standing in Washington by persuading Kyiv to back the full ceasefire that the US first proposed on 11 March.View image in fullscreenThe talks in Paris last week between Marco Rubio, the US secretary of state, and European leaders also gave Europe a chance to point out it was Putin that was stalling over a ceasefire.But instead of putting any countervailing pressure on Russia to accept a ceasefire, Witkoff switched strategy. In the words of Bruno Tertrais, a non-resident fellow at the Institut of Montaigne, Witkoff is “is now presenting a final peace plan, very favourable to the aggressor, even before the start of the negotiations, which had been due to take place after a ceasefire”.No European government has yet criticised Trump’s lopsided plan in public since, with few cards to play, the immediate necessity is to try to prevent Trump acting on his threat to walk away. At the very least, Europe will argue that if Trump wants Ukraine’s resources, he has to back up a European force patrolling a ceasefire, an issue that receives only sketchy reference in the US peace plan.The Polish foreign minister, Radosław Sikorski, addressing the country’s parliament on Wednesday, pointed to the necessity of these security guarantees. “Any arrangement with the Kremlin will only last so long as the Russian elite dreads the consequences of its breach,” he said.View image in fullscreenBut in a sense, Trump and Putin, according to Fiona Hill at the Brookings Institution, a Russia specialist in Trump’s first administration, may already have moved beyond the details of their Ukrainian settlement as they focus on their wider plan to restore the Russian-US relationship.It would be an era of great power collusion, not great power competition in which Gaza, Iran and Ukraine would be sites from which the US and Russia could profit.Writing on Truth Social about a phone call with Putin in February, Trump reported” “We both reflected on the Great History of our Nations, and the fact that we fought so successfully together in World War II … We each talked about the strengths of our respective Nations, and the great benefit that we will someday have in working together.”Witkoff has also mused about what form this cooperation might take. “Shared sea lanes, maybe send [liquefied natural] gas into Europe together, maybe collaborate on AI together,” he said, adding: “Who doesn’t want to see a world like that?” More

    • 200 Shares179 Views

      in US Politics

      USPS workers sound alarm over Trump efforts to dismantle service: ‘The hounds are at the door

      by

      US postal workers – and many who depend on them – may have sighed in relief when the Trump-appointed postmaster general, Louis DeJoy, resigned last month. Now, postal workers and others fear the worst is to come.Many feared DeJoy, a prolific Trump donor and trucking logistics executive who pushed a 10-year consolidation plan at the agency, would be the man who would finally dismantle the United States Postal Service (USPS). Now the service is facing off with an empowered Trump and Elon Musk, his billionaire backer and chainsaw-wielding leader of his government job-cutting “department of government efficiency” (Doge).At stake, supporters argue, is the very existence of a service woven into US society, which can be traced back to 1775. “These are real threats. The hounds are at the door,” said Don Maston, president of the National Rural Letter Carriers’ Association, the union representing more than 130,000 mail carriers in rural America.Workers and labor unions at the USPS are sounding the alarm and calling for public awareness of the threats of dismantling and privatizing the agency by the Trump administration.In March, the USPS reached an agreement with Doge to cut billions of dollars from its budget and finalize a voluntary retirement buyout program announced under the Biden administration to cut 10,000 employees. The Washington Post has reported industry executives are preparing for government efforts to outsource mail and package handling and long-haul trucking routes, and offload leases for unprofitable post offices.“There are other organizations on the chopping block right now, and it is just an amount of time before they get to us. So we just need to get the message out and get ahead of them to say ‘hands off the post office’,” said Tameka Brown, a rural letter carrier in Louisiana and president of the Louisiana Rural Letter Carriers’ Association. “We are the lifeline for a lot of American people, so to feel that your job is being threatened, it’s heart-wrenching.”View image in fullscreenDeJoy’s cuts are already affecting service, especially in rural areas and states. Wyoming, for example, looks set to lose all afternoon mail pickup.Brown warned that if the postal service is privatized, the services it provides would be eliminated or offered at much higher prices by private companies.“We touch American lives every day,” added Brown. “You’re linked to us throughout your whole life in one way or the other. They need to keep their hands off the post office. Through the rain, sleet, snow and through Covid, we were there. We didn’t miss a day.”Doge was even too much for DeJoy, who reportedly left after clashing with its staff over access to the agency.Last month, Musk voiced support for privatizing the USPS. The idea has been praised on the right, including by staff at the Heritage Foundation, which organized Project 2025, and by Trump: “It’s an idea that a lot of people have liked for a long time. We’re looking at it,” he said last year.Maston of the National Rural Letter Carriers’ Association said Trump had been “floating balloons, seeing what he can get away with and what the reaction is going to be” over his interest in privatizing the USPS. But Trump also seems cautious. The postal service is popular with Americans, and especially rural Americans.“It’s not the US Postal Business, it’s the US Postal Service,” said Maston. “It’s owned by we, the people, you and I and every other American.“The postal service is the No 2 most trusted and loved government agency. The threats and the attacks by the current administration and Elon Musk, it’s all just for a bottom line and to make something that they can make a profit off of, another piece of the pie.”Marc Mancini, a letter carrier in Pittsburgh, Pennsylvania, and shop steward with the National Association of Letter Carriers, said the USPS was already under intense strain. “The way I feel they’re going about it is they’re trying to save money by squeezing more and more out of workers. So you’re getting a lot more pressure from management, upper management, to have the carriers run faster and move quicker,” he said.He noted any changes to the independence of the USPS must be made by Congress, but he said he was worried that the Trump administration might try to skirt around the proper channels.“I think a lot of people cling to the hope that because of that, Trump and Doge cannot fully implement a full privatization of the post office, but I don’t think Trump really cares much for what the constitution says or what the laws are,” Mancini added. “He’s already making threats that if judges rule against them, he’s going to remove them. So I think the threat of privatization should be taken a lot more seriously.”No permanent replacement has yet been named for DeJoy. The Washington Post reported in February 2025 that Trump was considering dissolving the leadership of the USPS by executive order and absorbing the agency into the US Department of Commerce.The White House rejected the report of a planned executive order, though the president said it was being looked into it. Trump claimed during the swearing-in ceremony of US Department of Commerce secretary, Howard Lutnick, that the USPS was a“tremendous loser for this country”.View image in fullscreenThe merger proposal was characterized by unions representing USPS workers as an attack on the workers, postal services and the people who rely on them.Brian Renfroe, president of the National Association of Letter Carriers, said the USPS was far from being a “loser”. “It is a public service that does not operate on taxpayer dollars. It’s self-sustaining. It is paid for. It’s funded solely by revenue from people that mail things,” he said.The USPS lost $9.5bn in fiscal year 2024. Indisputably, it faces huge challenges, although 80% of its continued net losses are due to factors outside management’s control. Revenue losses by the agency are not entirely due to operation costs, but from liabilities for pensions and retirements that require policy changes to alleviate, such as enabling better pension investments.“It’s challenging during a period of modernization where they’re trying to change and improve their network, but you have to still provide service every day. It’s almost like rebuilding a ship while you’re crossing the ocean,” said Renfroe. “Maintaining that network and public service where everyone, no matter where they live, receives the same postal services for the same price is ultra important, and that is really where the problem comes in with privatization. That would be virtually impossible to maintain in a privatized model.”Postal workers have held rallies around the US in recent weeks, including those organized by the National Association of Letter Carriers, the American Postal Workers Union, the National Postal Mailhandlers Union and the National Rural Letter Carriers’ Association. Of the 640,000 workers at the USPS, about 91% are union members.Legislation has also recently been introduced in the House and Senate with Democratic and Republican support to oppose privatization of the USPS.Tim Thomason, vice-president of the West Virginia chapter of the National Rural Letter Carriers Association and a retired mail carrier of 33 years who served out of the Princeton, West Virginia, post office, argued that rural communities rely on the postal service even more as many private mail services do not serve them because doing so is not profitable.“Those folks rely on us. I took medicine to disabled people. I pulled cars out of ditches. I changed flat tires. It wasn’t just about being the mailman. I felt like I was part of our community,” he said. “If it is torn apart, then we lose the universal service and and I think that the people that I delivered mail to are the ones that are hurt.”The USPS did not respond to multiple requests for comment. A senior White House official claimed “the Trump administration is not considering privatization of the USPS”.The official added in an email: “Doge is actively assessing ways to cut waste, fraud and abuse while eliminating the presence of DEI in the USPS. The president is committed to ensuring no disruptions to the critical mission of the USPS.” More