Booking Holdings Builds on European and Asian Strength, While U.S. Lags
Booking Holdings' gross bookings and revenue in the second quarter exceeded management's earlier forecasts, but the performance highlighted a tale of two markets: strong international demand versus continued weakness in U.S. leisure travel.
CEO Glenn Fogel said that the U.S. proved to be the company's slowest-growing region, though executives said conditions improved slightly from the first quarter.
"We see generally the top end of the U.S. consumer market will be a little stronger, spending more in the 5-star hotel category, spending more on international travel, including Europe," CFO Ewout Steenbergen said. Meanwhile, "at the lower end, more careful behavior of U.S. consumers" persisted.
Overall room nights for hotels and alternative accommodations grew 8%, year-over-year.
The works out well for Booking Holdings, which has less exposure to the U.S. market than competitors like Expedia and Airbnb.
While inbound travel to the U.S. declined year-over-year, particularly from Canadian and European visitors, strong growth for routes like Canada to Mexico and Europe to Asia offset those declines.
"Europe is holding up quite well," Steenbergen said. "We see Europeans booking earlier and booking at higher prices than a
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Newsweek
2 hours ago
- Newsweek
Former Treasury Secretary Says Trump Is Trying to 'Scapegoat' Jerome Powell
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Former U.S. Treasury Secretary Larry Summers warned that President Donald Trump may be trying to "scapegoat" Federal Reserve chair Jerome Powell in the event the economy slows down enough to hit a recession. "He's looking to set up a scapegoat if the economy performs badly," Summers said during an appearance on ABC News' This Week. "That's what this attacking chairman Powell is really about. It's not really about trying to change policy." Newsweek reached out to the White House by email outside of normal business hours on Sunday morning for comment. Why It Matters Trump has made tariffs the centerpiece of his economic and foreign policy plans, using trade negotiations to try and end conflicts and completely reshape the international trade landscape to more heavily favor the United States. However, many economists and business leaders have warned that Trump's plan will cause a recession as the tariffs raise prices for Americans, which could deter buying and prompt more Americans to hold onto their money. Trump has therefore urged Powell to cut the interest rate in order to spur the economy and get people to spend more money, but Powell has resisted—much to Trump's frustration. What To Know The stock market took a hit on Friday after Trump signed a series of executive orders to impose tariffs on over 90 countries, ranging from 10 to 41 percent. The July Jobs report showed that growth had slowed, showing just 73,000 new jobs—well under the projected 100,000 that the Dow Jones had estimated. Additionally, the jobs reports for May and June were hit with significant revisions that showed very weak growth across those months. Trump fired Dr. Erika McEntarfer, the Commissioner of the Bureau of Labor Statistics (BLS), and accused her of manipulating the reports for "political purposes." Summers, who served in former presidents Bill Clinton's and Barack Obama's administrations, suggested on Sunday that Trump is likely also trying to line up Powell as a scapegoat should the economy continue to struggle, even though Trump appointed Powell during his first term in office. "I think that this kind of political Fed bashing is a fool's game," Summers said. "The Fed doesn't listen, so short-term interest rates aren't going to be different because of it." He continued: "The market does listen, and so longer-term rates are going to go higher, which is going to make it more expensive to buy a house. This is hurting the economy, not helping. I think the president understands that and what the president is doing is recognizing that, for all kinds of reasons, of which his policies are very important ones, the economy is at a lot of risk." Summers also expressed surprise that more people hadn't responded within the administration to McEntarfer's firing, saying that the decision to remove her "is way beyond anything that Richard Nixon ever did." When Nixon dismissed special prosecutor Archibald Cox during the Watergate Scandal, it prompted several officials to resign rather than fire Cox, causing what was known as the "Saturday Night Massacre." Trump faced a similar issue in February, which has been likened to Nixon as the "Thursday Night Massacre," when Department of Justice (DOJ) officials resigned rather than execute an order to dismiss federal corruption charges against New York City Mayor Eric Adams. No one has yet resigned in response to McEntarfer's firing, but Summers indicated that he sees the firing as a scapegoating as well, saying: "These numbers are put together by teams of literally hundreds of people following detailed procedures that are in manuals." "There's no conceivable way that the head of the BLS could have manipulated this number," he added. "The numbers are in line with what we're seeing from all kinds of private sector sources." Summers remains cautious about suggesting the economy is headed for a recession. Instead, he said the economy is at "stall speed," which "could tip into recession," but that "wouldn't be my prediction right now." Former U.S. Treasury Secretary Larry Summers speaks during the World Economic Summit in Washington, D.C., on April 17, 2024. Former U.S. Treasury Secretary Larry Summers speaks during the World Economic Summit in Washington, D.C., on April 17, 2024. Mandel Ngan/AFP via Getty Images What People Are Saying President Donald Trump in a post on Truth Social on Saturday wrote: "'Too Late' Powell should resign, just like Adriana Kugler, a Biden Appointee, resigned. She knew he was doing the wrong thing on Interest Rates. He should resign, also!" In a post from Friday, Trump wrote: "Jerome 'Too Late' Powell, a stubborn MORON, must substantially lower interest rates, NOW. IF HE CONTINUES TO REFUSE, THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!" Ernie Tedeschi, the former head of Yale University's Budget Lab, wrote on X on Friday about McEntarfer's firing: "I've worked closely with Erika. I know of no economist who is more data-focused & devoted to truth in statistics. She never shied from speaking truth to power when the data were disappointing. Nothing would be worse for US credibility than political meddling in our economic data."
Newsweek
3 hours ago
- Newsweek
Trump Economic Adviser Says Tariffs 'Locked In' Despite Market Volatility
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Kevin Hassett, director of the National Economic Council, said on Sunday that President Donald Trump's administration will hold onto its current tariff rates on other countries despite market volatility, describing the measures as "final deals." Why It Matters Since the first introduction in early April, the Trump administration's tariffs have sparked widespread criticism from both sides of the aisle. They have also triggered sharp declines in financial markets and increased global economic uncertainty, with major indexes falling and international partners warning of reprisals. Hassett's statements during his interview appearance on NBC News' Meet the Press shows that the White House intends to hold steady on its tariffs even as economic data raises concerns about the impact they may have on growth, prices, and job creation as well as lasting consequences for global trade. What To Know Hassett confirmed to host Kristen Welker on Sunday that tariffs on America's largest trading partners—including the European Union (EU), Japan, and South Korea—were "more or less locked in," covering approximately 55 percent of global gross domestic product (GDP). "The president will decide what the president decides. But the president likes those deals. The Europeans like those deals, and they're absolutely historically wonderful deals," the economic adviser said. Hasset continued: "We've got Europe agreeing to open their markets to our products, so our farmers, our small businessmen, can sell stuff in Europe like they never could before, and they're letting us charge a 50 percent tariff, which is going to raise maybe about $100 billion a year." Asked whether market turmoil could prompt Trump to reconsider or adjust tariff rates, Hassett replied, "No, I would rule it out. Because these are the final deals." He dismissed the notion that financial market backlash or investor uncertainty would trigger a policy reversal, saying in part that "the markets have seen what we're doing and celebrated it." Hassett added: "So I don't see how that would happen." These comments come on the heels of Trump dramatically widening the trade war, imposing new tariffs ranging from 10 to 41 percent on 60 countries. Key trading partners lacking bilateral agreements faced sharply higher rates. Meanwhile, Japan, South Korea, and the EU secured negotiated rates. Meanwhile, the most recent jobs report showed U.S. employers adding 73,000 jobs in July, far lower than expected. This followed a disappointing trend in the latest months, as May and June job gains were also sharply downgraded. On Thursday, Trump signed an executive order reimposing the "reciprocal tariffs" that were first announced on April 2 or "Liberation Day." Markets have reacted negatively, with the S&P 500 closing down 1.6 percent on Friday—the worst drop since May, according to The New York Times. National Economic Council Director Kevin Hassett speaks to reporters after attending a meeting at the U.S. Capitol Building on April 28 in Washington, D.C. National Economic Council Director Kevin Hassett speaks to reporters after attending a meeting at the U.S. Capitol Building on April 28 in Washington, D.C. Photo byDeals Made South Korea will face a 15 percent tariff on its exports to the U.S. Trump announced a framework deal with Japan on July 22, including a 15 percent tariff on Japanese goods, down from a rate of 25 percent. The president said Japan would invest $550 billion into the U.S. and "open" its economy to American autos and rice. The U.S. and EU announced a deal on July 27 that includes a 15 percent tariff on 70 percent of EU goods entering the U.S., down from 30 percent. Trade officials from the U.S. and China, Asia's largest economy and the world's second-largest, met for two days in Stockholm last month after which China's top trade official said the two sides had agreed to work on extending an August 12 deadline. Trump's tariffs on Chinese goods previously totaled 145 percent and China's counter-tariffs on U.S. products reached 125 percent. Under a deal announced on May 8, the United Kingdom will face a 10 percent baseline tariff on its goods while Trump agreed to cut tariffs on British autos, steel and aluminum, among other pledges. The U.K. promised to reduce levies on U.S. products like olive oil, wine and sports equipment. A July 22 deal with the Philippines includes a 19 percent tariff. Under a July 15 agreement with Indonesia, its goods will face a 19 percent tariff. Vietnamese goods will face a 20 percent U.S. tariff under a deal announced on July 2. U.S. goods will enter Vietnam duty free. Canada and Mexico Shortly before the August 1 deadline, Trump said he would enter a 90-day negotiating period with Mexico, one of America's largest trading partners, with the current 25 percent tariff rates staying in place, down from the 30 percent he had threatened earlier. For Canada, the tariffs on its U.S.-bound products not covered by the U.S.-Mexico-Canada trade agreement will rise to 35 percent from 25 percent, the White House said, as it blamed the higher tariffs on the smuggling of fentanyl over the northern border. However, Canada rebukes this, saying only tiny amounts of the drug are smuggled into the U.S. What People Are Saying President Donald Trump in his executive order on Thursday: "Other trading partners, despite having engaged in negotiations, have offered terms that, in my judgment, do not sufficiently address imbalances in our trading relationship or have failed to align sufficiently with the United States on economic and national-security matters." He continued: "There are also some trading partners that have failed to engage in negotiations with the United States or to take adequate steps to align sufficiently with the United States on economic and national security matters." Nate Silver, statistician and author, said in the Silver Bulletin on Sunday: "But for now, Republicans are the incumbent party — and if you ask me, tariffs and an economic slowdown are a far bigger threat to Trump's political capital than the distractions that often dominate the news cycle from day to day. We have more evidence now that the economy is slowing down, probably because of tariffs. And Trump's actions on Friday suggest he's scared to face the consequences." Jeffrey Frankel, economist and professor at the Harvard Kennedy School, told Newsweek Saturday: "Regarding policies enacted, Trump's tariffs may go down in history because the effects will be so bad and, much as the Smoot-Hawley tariff of 1930 did, may teach a generation or two about the harms of tariffs and the value of listening to warnings from professional economists, when they are virtually unanimous." What Happens Next? The tariff rates are set to go into effect on August 7.
Boston Globe
4 hours ago
- Boston Globe
Trump's tariffs are making money. That may make them hard to quit.
Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up 'The good news is that Tariffs are bringing Billions of Dollars into the USA!' Trump said on social media shortly after a weak jobs report showed signs of strain in the labor market. Advertisement Over time, analysts expect that the tariffs, if left in place, could be worth more than $2 trillion in additional revenue over the next decade. Economists overwhelmingly hope that doesn't happen and the United States abandons the new trade barriers. But some acknowledge that such a substantial stream of revenue could end up being hard to quit. Advertisement 'I think this is addictive,' said Joao Gomes, an economist at the University of Pennsylvania's Wharton School. 'I think a source of revenue is very hard to turn away from when the debt and deficit are what they are.' The Port of Baltimore on June 30, 2025. ALYSSA SCHUKAR/NYT Trump has long fantasized about replacing taxes on income with tariffs. He often refers fondly to American fiscal policy in the late 19th century, when there was no income tax and the government relied on tariffs, citing that as a model for the future. And while income and payroll taxes remain by far the most important sources of government revenue, the combination of Trump's tariffs and the latest Republican tax cut does, on the margin, move the United States away from taxing earnings and toward taxing goods. Such a shift is expected to be regressive, meaning that rich Americans will fare better than poorer Americans under the change. That's because cutting taxes on income does, in general, provide the biggest benefit to richer Americans who earn the most income. The recent Republican cut to income taxes and the social safety net is perhaps the most regressive piece of major legislation in decades. Placing new taxes on imported products, however, is expected to raise the cost of everyday goods. Lower-income Americans spend more of their earnings on those more expensive goods, meaning the tariffs amount to a larger tax increase for them compared with richer Americans. Tariffs have begun to bleed into consumer prices, with many companies saying they will have to start raising prices as a result of added costs. And analysts expect the tariffs to weigh on the performance of the economy overall, which in turn could reduce the amount of traditional income tax revenue the government collects every year. Advertisement 'Is there a better way to raise that amount of revenue? The economic answer is: Yes, there is a better way, there are more efficient ways,' said Ernie Tedeschi, director of economics at the Yale Budget Lab and a former Biden administration official. 'But it's really a political question.' Workers welded steel components together at a Thomas Built Buses plant in High Point, N.C., on July 21, 2025. TRAVIS DOVE/NYT Tedeschi said that future leaders in Washington, whether Republican or Democrat, may be hesitant to roll back the tariffs if that would mean a further addition to the federal debt load, which is already raising alarms on Wall Street. And replacing the tariff revenue with another type of tax increase would require Congress to act, while the tariffs would be a legacy decision made by a previous president. 'Congress may not be excited about taking such a politically risky vote when they didn't have to vote on tariffs in the first place,' Tedeschi said. Some in Washington are already starting to think about how they could spend the tariff revenue. Trump recently floated the possibility of sending Americans a cash rebate for the tariffs, and Sen. Josh Hawley, R-Mo., recently introduced legislation to send $600 to many Americans. 'We have so much money coming in, we're thinking about a little rebate, but the big thing we want to do is pay down debt,' Trump said last month of the tariffs. Democrats, once they return to power, may face a similar temptation to use the tariff revenue to fund a new social program, especially if raising taxes in Congress proves as challenging as it has in the past. As it is, Democrats have been divided over tariffs. Maintaining the status quo may be an easier political option than changing trade policy. Advertisement 'That's a hefty chunk of change,' Tyson Brody, a Democratic strategist, said of the tariffs. 'The way that Democrats are starting to think about it is not that 'these will be impossible to withdraw.' It's: 'Oh, look, there's now going to be a large pot of money to use and reprogram.'' Of course, the tariffs could prove unpopular, and future elected officials may want to take steps that could lower consumer prices. At the same time, the amount of revenue the tariffs generate could decline over time if companies do, in fact, end up bringing back more of their operations to the United States, reducing the number of goods that face the import tax. 'This is clearly not an efficient way to gather revenue,' said Alex Jacquez, a former Biden official and the chief of policy and advocacy at Groundwork Collaborative, a liberal group. 'And I don't think it would be a long-term progressive priority as a way to simply collect revenue.' This article originally appeared in
