Ray Dalio Says Fed Should Not Cut Rates Now
Ray Dalio, Bridgewater Associates founder, says the Federal Reserve should not be cutting interest rates right now. He speaks to Bloomberg's Sonali Basak at the BNP Paribas' Global Markets Conference. (Corrects name of event)
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E&E News
10 minutes ago
- E&E News
Trump-Musk split could leave Tesla politically homeless
The spectacular breakup between Elon Musk and President Donald Trump threatens to leave Tesla with few political friends. Musk has spent the past few months alienating the electric automaker's base of climate-minded car buyers by moonlighting as Trump's government-slasher-in-chief. Now, the billionaire's fixation on the GOP megabill has opened a dangerous rift with the president, who threatened Thursday to end all subsidies to Musk's companies. Tesla's stock had its largest one-day drop in history Thursday as Musk and Trump sniped at each other from their respective social media platforms. The share price fell more than 14 percent, lopping off more than $150 billion from Tesla's market value — and, according to Bloomberg, tanking Musk's personal net worth by $34 billion. Advertisement The core of the argument between the two men — whether the Republican spending package is a 'big, beautiful bill' or a 'MOUNTAIN of DISGUSTING PORK' — is a side concern for people whose main priority is Tesla. 'The CEO of that company needs to spend his time focused on the company's success,' said Nick Nigro, the head of Atlas Public Policy, which analyzes the electric vehicle market. 'Whether his interest in federal policy comes from a good place, it's a distraction from what Tesla shareholders and drivers need, which is his full attention.' Seth Abramson, a vociferous Musk critic who is writing a book about the entrepreneur, wrote on X that 'Musk will go the rest of his life without a political home or patron, shunned by politicians of both parties and therefore unable to effectively operate as a CEO of any company.' The breakup between the world's richest man and one of its most powerful could have far-reaching impacts for Musk's companies. Investor optimism about Tesla has been based on the assumption that Musk's proximity to power would lead to a national policy on autonomous vehicles that would ease the arrival of Tesla's robotaxi, which is supposed to hit the roads of Austin, Texas, this month. Musk could also lose leverage on other issues important to Tesla, such as Trump's tariffs on China's critical minerals. Meanwhile, his space company SpaceX has billions of dollars of federal defense and space contracts — now at risk — while its satellite subsidiary Starlink is angling for billions more in federal broadband subsidies. 'Attack mode' Tesla is still the country's largest electric automaker. But the Trump-Musk split comes at a vulnerable moment for both Tesla and electric vehicles writ large. The company is facing declining sales around the world, as its vehicle lineup has grown stale and Musk's political activities have turned off many EV buyers in Europe and North America. Meanwhile, federal support for EVs is hanging by a thread. The House's version of the megabill would drastically scale back Biden-era tax incentives meant to stimulate EV manufacturing and sales. The fight between Trump and Musk escalated on Thursday after Trump told reporters that Musk was 'upset' about the House-passed bill's proposal to remove EV tax credits and other incentives. Musk took to X to deny that narrative, writing: 'Keep the EV/solar incentives cuts in the bill, also cut all the crazy spending increases in the Big Ugly Bill so that America doesn't go bankrupt!' The president's repeated attacks on EVs and vows to repeal the Biden administration's subsidies certainly didn't seem to trouble Musk much during last year's campaign, when the megabillionaire spent more than $270 million and countless hours to help put Trump back into the White House. (Trump did concede at the time that Tesla made a 'great product.') Musk's apparent willingness to sacrifice federal incentives was unwelcome news to clean energy and EV advocates who hope Republican senators will save some of the tax credits from the Democrats' 2022 climate law. Republicans can afford to lose only three votes in the Senate, and some GOP senators have indicated they think the bill's rollbacks go too far. The war of words between Trump and Musk ended any hopes that the Tesla CEO would have the leverage with the White House to tip the scales. 'Elon was 'wearing thin,' I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!' Trump posted on his social media site, Truth Social. That statement was a far cry from three months ago, when Trump made a show of buying a Tesla in front of the White House. That gesture raised hopes among some Tesla shareholders that Republicans would embrace Tesla and compensate for its diminished popularity among Democrats, many of whom had taken to staging protests outside its showrooms. 'I'm going to buy because No. 1, it's a great product, as good as it gets. And No. 2, because this man has devoted his energy and his life to doing this, I think he's been treated very unfairly by a very small group of people,' Trump said at the time about Musk. Now, that's all changed. 'Trump no longer has to say nice things about Tesla and EVs,' said Loren McDonald, an EV analyst at Paren, an EV data shop. 'He and the admin can go back to EVs are evil attack mode.' Critical minerals and beyond The fizzled bromance could also have far-reaching ripple effects on myriad, complex relationships that Tesla has across the globe, as well as its business before the federal government. Musk, for example, will presumably hold no sway over the administration's intended move to impose steep tariffs on imports of Chinese graphite used to make EV batteries. The Commerce Department concluded last month that imported Chinese graphite is receiving unfair subsidizes. The agency laid out a plan to impose tariffs of up to 721 percent on some natural and artificial graphite active anode material from China that's used in batteries. Tesla has fought against the tariffs, with one of the company's attorneys pointing out that U.S. manufacturers don't yet produce anode material that meets carmakers' standards. The fallout could also put a bulls-eye on Musk's financial ties to Beijing, something Democrats have repeatedly railed against. The Trump administration and lawmakers from both parties are pushing to ease China's grip on supply chains, from the production of critical minerals to processing and manufacturing of EV batteries. Yet Tesla has many ties to China, including reliance on graphite imports, a gigafactory located in Shanghai, and ongoing work with Contemporary Amperex Technology. CATL, the world's largest battery-maker, is on a U.S. government list of companies that work with the Chinese military. In short, nothing on Thursday boded well for America's leading electric automaker. 'It's another Twilight Zone moment in this Musk/Trump relationship which now is quickly moving downhill,' wrote Dan Ives, an analyst at investment shop Wedbush Securities who tracks Tesla. But Ives nonetheless remained hopeful. The subject line of his email: 'Friends Again Soon?' Hannah Northey contributed to this report. This story also appears in Climatewire.
Yahoo
25 minutes ago
- Yahoo
Jobs data from May could show a mostly stable economy, but economists say Trump tariffs will soon bite
Signs are growing that President Donald Trump's unprecedented tariffs strategy is starting to take a bigger bite out of the U.S. economy. Still, the latest jobs data from the Bureau of Labor Statistics is likely to show some economic stability persisted into May. Forecasts were for 120,000 new payrolls added in the last month; most economists consider anything above 100,000 a healthy figure — though it would still represent the fewest monthly jobs created since February and fall below the recent 12-month average of about 150,000. Even if the job numbers beat forecasts, other data are already pointing to signs of a softening economy. On Wednesday, private payroll processor ADP reported the weakest monthly jobs total since March 2023. While economists say ADP's data often align with the official BLS data, the trend is clear, with ADP reporting fewer jobs added in five of the past seven months. A separate report from the Institute for Supply Management showed that activity at U.S. service firms unexpectedly contracted last month for the first time in nearly a year, while hiring decelerated. On Thursday, the Department of Labor reported weekly jobless claims came in higher than expected, reaching their highest level since October — while continuing unemployment claims remained elevated, an indication that it is taking longer for out-of-work people to find a job. 'We're throttling back — and the damage from the trade war is still coming,' Mark Zandi, chief economist at Moody's Analytics, told NBC News. Zandi said forthcoming inflation readings are likely to reflect firms raising prices due to Trump's import taxes. Indeed, a Federal Reserve survey released Wednesday indicated 'widespread reports' of companies 'expecting costs and prices to rise at a faster rate going forward,' with higher tariffs 'putting upward pressure on costs and prices.' Separately, a Congressional Budget Office study now estimates inflation will increase by an average of 0.4 percentage points in 2025 and 2026 as a result of Trump's tariffs. As prices begin to rise, consumer dollars won't go as far, Zandi said. That will likely lead to a feedback loop of reduced economic activity and reduced hiring. 'The job market already feels fragile,' he added. As demand softens 'more palpably,' Zandi said, 'we'll start to see layoffs' — with BLS jobs data likely falling consistently below 100,000 in the coming months. Already, firms are showing signs of holding back on investment and bringing on new workers. Earlier in the week, the BLS reported that the hiring rate remains stuck at levels last seen in 2014, when the U.S. economy was still emerging from the Great Recession. Trump has claimed that thanks to his tariffs, the U.S. economy is 'booming.' Yet he continues to pressure the Federal Reserve to lower interest rates, which would make it easier for businesses and consumers to borrow money. In a post on Truth Social Wednesday, he pointed to the weak ADP payrolls numbers as evidence that the economy needs support. Analysts say that despite the gathering signs of economic deterioration, the bar remains high for the Federal Reserve to lower rates. Instead, the central bank will likely continue to err on the side of keeping interest rates elevated to ensure the pace of price growth remains under control, said Andrew Husby, senior U.S. economist at BNP Paribas financial group. For consumers, that means relief is still not in sight. 'It's going to take something obviously cracking in a sustained way' for the Fed to reduce borrowing costs, Husby said. This article was originally published on
CNET
30 minutes ago
- CNET
iPhone 17 Rumors: Latest News and Leaks
We're still months away from Apple's anticipated reveal of the newest iPhone, which we expect will happen in the fall. In the meantime, plenty of rumors are swirling about what the upcoming device, likely called the iPhone 17, could look like, from a redesigned camera module to a slimmer "Air" version of the handset. We might even see a fresh blue color option for the Pro models, and there are rumors about increased RAM on at least some of the upcoming iPhones. Reports also suggest Apple will overhaul the look and feel of its software with the launch of its next version of iOS. Perhaps the biggest news is that iPhones could get pricier, thanks to tariffs. President Donald Trump has said Apple will have to pay a 25% tariff on iPhones made outside the US. This would almost certainly lead to a price hike for consumers. We'll have to wait and see how Apple responds, and if shoppers really do end up shouldering that extra cost. Here's what analysts and leakers predict about the iPhone 17 lineup. A slimmer iPhone 17 'Air' One of the hottest rumors surrounds a possible iPhone "Air," a thinner version of Apple's flagship device that would replace the iPhone Plus option. The Air could feature a 6.6-inch screen, making it slightly smaller than the iPhone 16 Plus and iPhone 16 Pro Max but still bigger than the baseline model, according to analysts Jeff Pu and Ming-Chi Kuo. A Bloomberg report from March supports those rumors, and notes that the iPhone Air could measure 5.5mm thick. The report also suggests the phone will cost around $900, putting it on par with the iPhone 16 Plus and maintaining its place in the iPhone hierarchy. But it's not clear if tariffs will affect that price. See also: Thinking About Buying a New iPhone? Here's Why You Should Wait For Apple to slim down a device, it would need to make hardware trade-offs, and that might include the phone's camera. According to both Kuo and Bloomberg, it's possible this version of the iPhone 17 would have only one main camera, doing without the ultrawide and 5x telephoto lenses that have been staples of Apple's premium iPhones for years. This would place the slim iPhone in the same camp as the $600 iPhone 16E when it comes to cameras, as that phone has only one rear lens. The good news, though, is that the selfie camera on the iPhone Air could get a boost; more on that later. Now Playing: iPhone 17 Rumors: What Analysts Say Apple Is Doing Next 04:06 One key challenge will be maintaining a high battery capacity, since a slimmer build typically means less space for the battery and thus a potential compromise on battery life -- as is the case with the skinny Samsung Galaxy S25 Edge. A May report from AppleInsider suggests the thinner iPhone could use a silicon-anode battery to help extend battery life. Along with tackling battery shortcomings, Bloomberg suggests Apple will pack the iPhone 17 Air with superslim bezels, a Camera Control button and the Dynamic Island. In May, Pu noted the iPhone 17 Air will feature an A19 chip, while the baseline model would have the same A18 chip used in the iPhone 16. The Air could also include the Apple-developed 5G modem, called the C1 chip, which debuted on the iPhone 16E. A higher refresh rate across the board Rumor has it that all models of the iPhone 17 will feature a 120Hz display, bumping the non-Pro models up from their current 60Hz refresh rate. That could be a welcome change, as the discrepancy between the Pro and non-Pro refresh rate is surprising; when Apple debuted the iPhone 16 and 16 Plus with a 60Hz display, there was a bit of an outcry from folks who expected more in 2024. This rumored update could remedy that -- and possibly bring the always-on display to the baseline model. What we likely won't see is a new anti-reflective display that Apple was reportedly working on, according to MacRumors. A source reportedly told the publication that Apple scrapped plans for a more scratch-resistant display coating that could have appeared on the iPhone 17 Pro and Pro Max. This would have made them the first iPhones with an anti-reflective screen, giving them a feature that CNET's Patrick Holland deemed one of the best attributes of the Samsung Galaxy S25 Ultra. According to MacRumors, "Apple ran into problems scaling up the display coating process, and it is currently no longer a planned feature for the iPhone 17 Pro models." Camera upgrades James Martin/CNET It's not an iPhone release without a camera upgrade, and there have been plenty of rumors about what the camera module could look like on Apple's upcoming phones. In January, a leaked image from Majin Bu on X suggested the phone could feature a pill-shaped camera bar, essentially resembling what you'd find on Google's Pixel 9 phone. In February, Bu followed up with CAD renders of what's said to be the iPhone 17 lineup, featuring horizontal camera bars, as well as larger rectangular bars on the iPhone 17 Pro models. Front Page Tech also shared iPhone 17 Pro renders in a video in February, depicting a larger camera bar that maintains the lens' stacked layout. A separate video on the iPhone 17 Air shows a smaller camera bar, with one lens on the left. In April, Bloomberg reported the "iPhone 17 Pro will look a lot more like the 16 Pro than anticipated," adding, "From the front, the 17 Pro will appear quite similar to the 16 Pro. It's the back camera that will look meaningfully different." The latest rumors suggest the iPhone 17 Pro's three-lens camera arrangement will be maintained, but will sit on a new panel that stretches across the phone's width. Later in April, Bu again posted an image of the purported iPhone 17 lineup, showing those wider camera bars with the stacked lenses still configured to the left. Not until next year, for the 20th anniversary of the iPhone, will Apple be "preparing a major shake-up" for the phone's design, Bloomberg says. That includes a (long-rumored) foldable version and a "bold new Pro model that makes more extensive use of glass." Another camera-related rumor is that the selfie camera on all iPhone 17 models, including the Air, will be upgraded to 24 megapixels, according to Pu. That's a decent bump from the current 12-megapixel front-facing camera on the iPhone 16 lineup, though it's important to remember that more megapixels don't automatically mean better photos. Still, given how much people increasingly rely on their front cameras to snap selfies and record videos for TikTok and Instagram, this will surely be a welcome advancement. A sky blue iPhone 17 Pro It's not clear what colors will be included in the iPhone 17's lineup. But in April, Bu said the iPhone 17 Pro and Pro Max could include a sky blue option. In an article, Bu wrote that "sources close to the supply chain confirm that several iPhone 17 Pro prototypes have been made in various colors, with Sky Blue currently the frontrunner." Bu describes the sky blue color as being "even more stunning than the much-loved Sierra Blue of the iPhone 13 Pro, with a brightness and refinement that make it irresistible." (My colleague Jeff Carlson isn't so thrilled about this rumor.) iOS 26 (not 19) could bring a fresh look Regarding what's on the inside, Apple is reportedly looking to revamp its mobile operating system -- starting with how it's named. The follow-up to iOS 18 will be called iOS 26, according to Bloomberg, based on the last two digits of the upcoming year. iPadOS, MacOS, WatchOS, TVOS and VisionOS will all reportedly follow this same model, creating more uniformity across the operating systems. The appearance of iOS 26 and Apple's other operating systems will also reportedly get a refresh. According to Bloomberg, this "includes updating the style of icons, menus, apps, windows and system buttons." Sources reportedly told the publication that Apple is "working to simplify the way users navigate and control their devices," and that the design borrows from the Vision Pro's operating system. For instance, VisionOS features more circular app icons and translucent navigation panels. It's possible that what you'll see on your future iPhone could more closely mirror this aesthetic. The software overhaul would also bring consistency across Apple's devices. Bloomberg notes this would be the biggest software shakeup since macOS Big Sur's release in 2020 and iOS 7's release in 2013. Other possible features Rumors on what frames the iPhone 17 lineup will feature have gone back and forth. In February, Pu suggested the iPhone 17, iPhone 17 Pro and iPhone 17 Pro Max will all have aluminum frames. He noted that the iPhone 17 Air could be the outlier with a titanium frame. There have also been contradictory reports on whether the Dynamic Island on the iPhone 17 lineup will look any different. In May, Pu said all iPhone 17 models will use a new metalens technology for the proximity sensor, which could allow Apple to reduce the size of the Face ID sensor and the Dynamic Island, according to 9to5Mac. Kuo, on the other hand, said in January that the Dynamic Island would remain "largely unchanged" in the iPhone 17 lineup compared to the iPhone 16. We'll have to see what ends up being true. In February, Kuo noted Apple will swap out Broadcom's Wi-Fi chips for in-house chips across the iPhone 17 lineup, stating this would "enhance connectivity across Apple devices." It's not yet clear what exactly this would mean, but it would be interesting if Apple's C1 chip were also accompanied by its own Wi-Fi chip. In April, tipster Digital Chat Station noted that given the use of Apple Intelligence and AI on a "large scale," the iPhone 17 lineup will come with 12GB of RAM, instead of the current 8GB. Kuo noted the iPhone 17 Air and Pro models would sport that increased 12GB of RAM, but that Apple was still deciding whether to equip the baseline model with 8GB or 12GB of RAM. In May, Pu noted the baseline would remain at 8GB. We'll continue to update this piece as more rumors surface, so be sure to follow along.
