logo
Baby boom push meets skepticism in Republican Party

Baby boom push meets skepticism in Republican Party

Yahoo01-05-2025
Don't count on Republican lawmakers to light the fuse to a new baby boom just yet.
The pronatalist movement may be having a moment as it pitches policies that seek to increase the nation's birth rate — with the latest boost being President Trump saying a $5,000 baby bonus 'sounds like a good idea.'
But after some poking around on the prospects for the pronatalist policies that seem to be gaining steam, I found skepticism from Republican lawmakers on multiple fronts, as well as fractures in the pronatalist movement itself.
Some don't buy into the core premise that fertility rates need a boost to prevent catastrophic economic consequences caused by population collapse. (There were 1.6 births per woman in 2024, according to a Centers for Disease Control and Prevention report released last week — slightly higher than 2023, but well below the below population replacement level of 2.1 births per woman.)
'With a significant housing shortage and the growing potential for AI to displace jobs, it's difficult to justify aggressive federal incentives aimed at fueling population growth at this point in our nation's trajectory,' one GOP lawmaker told me.
Another Republican lawmaker had not thought deeply about population issues, but was more inclined to support policies to increase legal immigration.
The latest burst in the pronatalism movement came from a article on the Trump administration fielding ways to encourage women to have more children, including the $5,000 baby bonus idea or reserving 30 percent of Fulbright scholarships for those who are married or have children.
But baby bonus incentive programs in other countries have been criticized as largely unsuccessful. Lyman Stone, senior fellow and director of the Pronatalism Initiative at the Institute for Family Studies, estimated that a $5,000 baby bonus would have a small effect on births.
'I would say that would probably increase fertility less than 1% — which doesn't mean it's not worth doing, because families with a new kid could use a windfall,' Stone said, adding that he prefers an increase to the Child Tax Credit (more on that later).
The various policy ideas are the latest example of how the pronatalist movement has been gaining steam in the last few years. The second Natal Con took place in Austin, Texas, in March and included a number of right-wing speakers, including the Trumpworld-connected commentator Jack Prosobiec.
Many of them are encouraged at friendliness to their cause in the Trump administration. Vice President Vance, who famously chastised 'childless cat ladies' (and later expressed regret about that phrasing), has long voiced concern about the nation's birth rate.
Trump adviser Elon Musk, a father of at least 14 children from four different women, is the most prominent and connected voice for spawning a 'legion' of children to combat declining birth rates, as the recently reported.
But Musk's 'harem drama' — as one of the mothers of his children, Ashley St. Clair, put it — not only makes family-values traditionalists squirm, but his focus on pure births has gotten criticism from others interested in boosting the birth rate. Stone and Brad Wilcox wrote in last week that 'no matter how many tutors you hire or compounds you build, evidence suggests children are more likely to struggle if one of their parents is absent.'
Aside from Musk, perhaps the most prominent pronatalists are Simone and Malcolm Collins, parents of four who have invented a religion called Techno-Puritanism 'designed to combat fertility collapse' and have been profiled many, many times. Simone Collins wears 'techno-puritan' clothing that she told NPR was 'intentionally cringe.'
Even for some Republicans who would like to see more babies and larger families, the whole pronatalist push is cringe in a bad way.
'I think the term pronatalist is a little odd,' Rep. Blake Moore (R-Utah) told me. 'We should just be talking about being pro-family. There's nothing in my core belief system [that] would suggest that we should just be having babies. You need to have families. You need to have dedicated parents in all these situations.'
'It's not a numbers game. It's a strength in numbers game,' Moore added.
When it comes to policy, the idea related to boosting birth rates that has the most traction among Republicans is adjusting the Child Tax Credit, currently set at $2,000 per qualifying child.
Asked about the pronatalist policies being explored by the Trump administration, Sen. Jim Banks (R-Ind.) pointed to his Family First Act, which would in part expand the Child Tax Credit to $4,200 for kids under 6 and $3,000 for other children, as well as creating a new one-time $2,800 tax credit for pregnant mothers. Moore is leading the legislation in the House.
'Getting married and starting a family are key to the American Dream. But for too many young people, that dream feels out of reach,' Banks said in a statement. 'Congress has a role to play in fixing this and we can start by putting money back in the pockets of hardworking parents.'
But in a party full of deficit hawks, the politics of getting such a proposal through is dicey. Republicans opposed a temporary expansion that Democrats ushered through in 2021.
'The guys that are most likely to prioritize family formation are Republicans, obviously, but they really don't like increasing the Child Tax Credit,' explained Terry Schilling, president of the conservative American Principles Project and father of seven. He is more optimistic about prospects for education reform initiatives that can help families.
Schilling added: 'It's incredibly important that all of the things that we discuss — all the economic incentives around children — are tied to marriage, because we don't want to get into a situation like we did with the Great Society programs, where you create, inadvertently, these loopholes that incentivize fatherless homes.'SCRAMBLE ON TAX CUT CRAFTING: Free-market advocacy groups are consumed with the biggest activity dominating Capitol Hill right now — the partisan tax cut bill that will serve as the vehicle for Trump's ambitious legislative agenda.
Advancing American Freedom, the group founded by former Vice President Pence, is out with a memo warning that 'not all tax cuts are created equal.'
Its ranking: 'Best bang for buck' are individual income tax cuts, corporate tax cuts, capital gains tax cuts, and reinstating full expensing; expanding the Child Tax Credit is 'dubious'; and 'actually harmful' are exempting tips and overtime from taxes (two campaign promises from Trump), as well as increasing the State and Local Tax deduction.
Meanwhile, Americans for Prosperity is up with a new ad the Washington, D.C., market calling to eliminate green energy tax credits enacted in the Inflation Reduction Act under President Biden — which the group calls 'Green New Deal giveaways' — as a way to pay for extending the Tax Cuts and Jobs Act cuts signed into law during the first Trump administration. The ad says of the idea: 'It's simple.'
That will be politically difficult, however, given more than a dozen more moderate Republicans have called to preserve the tax credits.
1. TRUMP 2028 WATCH: Rep. Andy Ogles (R-Tenn.), who is leading a longer-than-a-long-shot constitutional amendment that would allow Trump to run for a third term, joined the Republicans for National Renewal's Third Term Project on an X space this week to talk about the push, which was a longtime goal of the group. Ogles claimed he's gotten 'overwhelming' support from Republicans on the proposal, but it still doesn't have any cosponsors.
2. CRYPTO CRINGE: While the cryptocurrency industry is optimistic about the environment for crypto under Trump, my colleague Miranda Nazzarro reports that they did not appreciate the meme coins launched by the president and his family: 'The Trump family's various crypto projects, specifically the launch of two personalized meme coins, led to some frustrations from the industry given concerns about how the coins could benefit the president's family.' They worried 'it could undermine industry's attempts to be taken seriously in Washington.'
3. WORLDS COLLIDE ON WHCA WEEKEND: Rising star Natalie Winters of Bannon's War Room snapped a pic with a masked Taylor Lorenz — the subject of near-constant hate from the right — over the weekend. Who had that on their bingo card? Not me.Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Stock market today: Dow eyes record on UnitedHealth surge, S&P 500, Nasdaq fall as rate-cut bets cool
Stock market today: Dow eyes record on UnitedHealth surge, S&P 500, Nasdaq fall as rate-cut bets cool

Yahoo

time26 minutes ago

  • Yahoo

Stock market today: Dow eyes record on UnitedHealth surge, S&P 500, Nasdaq fall as rate-cut bets cool

US stocks were mixed on Friday as Wall Street tempered its rate-cut hopes amid economic data this week that showed higher-than-expected wholesale inflation and a rise in July retail sales. Traders also awaited Friday's meeting between President Trump and Russian President Vladimir Putin, looking for clues on how the outcome could steer markets. The Dow Jones Industrial Average (^DJI) hovered just above the flat line, with the index's first record since December in sight. The benchmark S&P 500 (^GSPC) fell 0.3%, and the tech-heavy Nasdaq Composite (^IXIC) lost 0.4% after President Trump said he would soon announce tariffs on semiconductor imports. US Census Bureau data released Friday morning showed retail sales rose 0.5% in July from the prior month. That was less than the 0.6% gain expected by economists but still viewed as a solid advance after a sharp pullback in consumer spending this spring. Meanwhile, US consumer sentiment deteriorated in August, falling for the first time in four months as inflation expectations jumped in the longer term. Stocks wobbled on Thursday, ending a two-day rally sparked by investor confidence that an interest rate cut in September was nearly certain. Doubts about a significant cut at the Fed's next policy meeting crept in after July's Producer Price Index (PPI) came in hotter than expected. Major Dow component UnitedHealth (UNH) stock soared on Friday after a regulatory filing showed Warren Buffett's Berkshire Hathaway (BRK-B, BRK-A) bought 5 million shares in the company. Intel (INTC) shares jumped Friday after a Bloomberg report said the Trump administration is considering taking a stake in the chipmaker, using funds from the US CHIPS Act. President Trump met with Intel's CEO on Monday after calling on him to resign the previous week. And Applied Materials (AMAT) stock sank 14% after the chip equipment maker issued weak fourth quarter forecasts due to sluggish demand in China, fueling concerns over tariff-related risks. Opendoor shares pops after CEO exit amid meme-fueled stock surge Opendoor Technologies (OPEN) shares spiked as much as 10% in morning trading after the company announced the departure of its CEO Carrie Wheeler effective immediately. Opendoor said it is searching for a new CEO to lead the ibuyer in its next growth phase, just weeks after the stock skyrocketed in a meme-fueled rally. "Carrie Wheeler, Opendoor's current Chief Executive Officer and Chair of the Board, has made the decision to step down from her roles with the company, also effective immediately," said the press release. The board appointed Shrisha Radhakrishna, Opendoor's chief technology and product officer, as president and interim leader of the company. Shares of Opendoor have been on a wild ride over the past month, powered in part by Carvana (CVNA) turnaround spotter EMJ Capital and speculative investors on Reddit's wallstreetbets. EMJ Capital founder and president Eric Jackson wrote in mid-July that his firm was taking a long position in Opendoor, which was then trading under $1 per share. Jackson has been critical of Opendoor's top leadership, most recently following the company's latest quarterly results in early August, when the stock sank 20% following a disappointing earnings forecast. "The communication on the earnings call from the CEO and the CFO was really awful," Jackson told Yahoo Finance last week. "The management team didn't do anything to get this thing up from 51 cents to almost five bucks," he said. "It was basically all of us retailers who saw the value in this platform, supported it. We got not a word from management over these last few weeks. So I think she's got to go." Chip stocks fall as Trump says semiconductor tariffs coming as soon as next week Chip stocks dropped Friday after President Trump said he will set tariffs on semiconductors as soon as next week. "I'll be setting tariffs next week and the week after on steel and on, I would say, chips," Trump told reporters Friday while aboard Air Force One while traveling to Alaska to meet Russian President Vladimir Putin, Reuters reported. Nvidia (NVDA), AMD (AMD), and Broadcom (AVGO) fell more than 1%, while Micron (MU) dropped more than 3%. Trump said earlier this month that semiconductor companies building out their domestic manufacturing footprint — this includes the world's leading contract chip manufacturer, Taiwanese firm TSMC (TSM) — would be exempt from his planned 100% tariffs on chips. That commentary sent chip stocks up. But on Friday, he implied that the exemption may only be temporary. "I'm going to have a rate that is going to be lower at the beginning — that gives them a chance to come in and build — and very high after a certain period of time," he said. Consumer sentiment falls in August, marking first decline in 4 months US consumer sentiment deteriorated in August, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 from a reading of 61.7 in July. It was also less than the 62 reading expected by economists surveyed by Bloomberg. 'This deterioration largely stems from rising worries about inflation,' wrote Joanne Hsu, the director of the university's Surveys of Consumers. Consumer sentiment had improved in June and July after plummeting in the spring as Americans worried about the impacts of Trump's tariffs. In May, the index showed sentiment at its second-lowest level on record as consumers expressed concerns over long-term inflation, fueled by uncertainty surrounding Trump's trade policies. Sentiment improved in June as Trump dialed back some of his aggressive stances on tariffs. 'Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused,' Hsu said. 'However, consumers continue to expect both inflation and unemployment to deteriorate in the future.' US stocks mixed at the open US stocks were mixed on Friday at the open as Wall Street tempered its hopes for the Fed to cut interest rates in September, as economic data this week showed higher than expected wholesale inflation and a rise in July retail sales. The Dow Jones Industrial Average (^DJI) rose around 0.5%, putting the index on track for its first record since December. The benchmark S&P 500 (^GSPC) rose less than 0.1%, and the tech-heavy Nasdaq Composite (^IXIC) fell below the flatline. Intel stock continues rise as Trump administration reportedly mulls taking stake in chipmaker Intel (INTC) stock spiked more than 7% Thursday and continued to climb 3% before the market open on Friday, following a report that the US government is considering taking a stake in the troubled chipmaker. Bloomberg reported that the Trump administration is in talks with Intel about the deal, which would help the company complete its Ohio factory expansion that had been put on hold. The report follows a meeting between President Trump and Intel CEO Lip-Bu Tan earlier this week, which came after the president called for the CEO's resignation due to his ties with China. "As Intel's prospects have dimmed, the idea of support (governmental or otherwise) has gained traction, understandable given the company, for better or worse, remains the only US-headquartered prospect for leading edge semiconductor chips and processes; it seems like Trump may have been persuaded to see the light," Bernstein analyst Stacy Rasgon wrote in a note to investors Friday. It's not the first time the Trump administration has allegedly floated ideas to prop up Intel. In February, a news report said the US was pitching proposals to its rival TSMC to help support its turnaround by establishing a joint venture with Intel. Read more here. Retail sales climb less than expected in July Retail sales rose 0.5% in July from the prior month, according to data from the US Census Bureau released Friday — marking the second monthly gain in a row, as consumer spending steadies following a dramatic drop in earlier in the year. Still, the jump was less than the 0.6% gain expected by economists surveyed by Bloomberg. Excluding auto and gas sales, retail sales were up 0.2%, also less than the 0.3% projected. An even narrower slice of retail sales called the 'control group' — a more precise measure of consumer spending that excludes certain sales such as those from office supply and tobacco stores — climbed 0.5%, ahead of the 0.4% expected. Retail sales rebounded in June, a sign that consumer spending habits were remaining resilient despite President Trump's tariffs. Read more here. Investors want rate cut 'validation,' but the Fed's dilemma won't go away Yahoo Finance's Hamza Shaban writes in today's Morning Brief: Read more here. Good morning. Here's what's happening today. Economic data: Retail sales (July); Export prices (July); Industrial production (July); University of Michigan consumer sentiment (August preliminary) Earnings: No notable earnings. Here are some of the biggest stories you may have missed overnight and early this morning: 'Striking while the iron is hot' Investors want rate cut 'validation,' but the Fed's dilemma remains Applied Materials' shares sink on weak China demand, tariff risks UnitedHealth jumps as Buffett's Berkshire buys 5M shares BofA's Hartnett sees profit-taking in stocks after Jackson Hole AI exacerbates tech divide with smaller stocks languishing A trader's guide to the Alaska talks between Trump and Putin China's economy slows in July on tariffs, weak property market Applied Materials' shares sink on weak China demand, tariff risks Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. UnitedHealth stock soars as Buffett's Berkshire buys 5M shares UnitedHealth Group stock rose 12% before the bell on Friday after Warren Buffett's Berkshire Hathaway (BRK-B, BRK-A) acquired 5 million shares in the company. A regulatory filing showed the purchase on Thursday. Reuters reports: Read more here. Opendoor shares pops after CEO exit amid meme-fueled stock surge Opendoor Technologies (OPEN) shares spiked as much as 10% in morning trading after the company announced the departure of its CEO Carrie Wheeler effective immediately. Opendoor said it is searching for a new CEO to lead the ibuyer in its next growth phase, just weeks after the stock skyrocketed in a meme-fueled rally. "Carrie Wheeler, Opendoor's current Chief Executive Officer and Chair of the Board, has made the decision to step down from her roles with the company, also effective immediately," said the press release. The board appointed Shrisha Radhakrishna, Opendoor's chief technology and product officer, as president and interim leader of the company. Shares of Opendoor have been on a wild ride over the past month, powered in part by Carvana (CVNA) turnaround spotter EMJ Capital and speculative investors on Reddit's wallstreetbets. EMJ Capital founder and president Eric Jackson wrote in mid-July that his firm was taking a long position in Opendoor, which was then trading under $1 per share. Jackson has been critical of Opendoor's top leadership, most recently following the company's latest quarterly results in early August, when the stock sank 20% following a disappointing earnings forecast. "The communication on the earnings call from the CEO and the CFO was really awful," Jackson told Yahoo Finance last week. "The management team didn't do anything to get this thing up from 51 cents to almost five bucks," he said. "It was basically all of us retailers who saw the value in this platform, supported it. We got not a word from management over these last few weeks. So I think she's got to go." Opendoor Technologies (OPEN) shares spiked as much as 10% in morning trading after the company announced the departure of its CEO Carrie Wheeler effective immediately. Opendoor said it is searching for a new CEO to lead the ibuyer in its next growth phase, just weeks after the stock skyrocketed in a meme-fueled rally. "Carrie Wheeler, Opendoor's current Chief Executive Officer and Chair of the Board, has made the decision to step down from her roles with the company, also effective immediately," said the press release. The board appointed Shrisha Radhakrishna, Opendoor's chief technology and product officer, as president and interim leader of the company. Shares of Opendoor have been on a wild ride over the past month, powered in part by Carvana (CVNA) turnaround spotter EMJ Capital and speculative investors on Reddit's wallstreetbets. EMJ Capital founder and president Eric Jackson wrote in mid-July that his firm was taking a long position in Opendoor, which was then trading under $1 per share. Jackson has been critical of Opendoor's top leadership, most recently following the company's latest quarterly results in early August, when the stock sank 20% following a disappointing earnings forecast. "The communication on the earnings call from the CEO and the CFO was really awful," Jackson told Yahoo Finance last week. "The management team didn't do anything to get this thing up from 51 cents to almost five bucks," he said. "It was basically all of us retailers who saw the value in this platform, supported it. We got not a word from management over these last few weeks. So I think she's got to go." Chip stocks fall as Trump says semiconductor tariffs coming as soon as next week Chip stocks dropped Friday after President Trump said he will set tariffs on semiconductors as soon as next week. "I'll be setting tariffs next week and the week after on steel and on, I would say, chips," Trump told reporters Friday while aboard Air Force One while traveling to Alaska to meet Russian President Vladimir Putin, Reuters reported. Nvidia (NVDA), AMD (AMD), and Broadcom (AVGO) fell more than 1%, while Micron (MU) dropped more than 3%. Trump said earlier this month that semiconductor companies building out their domestic manufacturing footprint — this includes the world's leading contract chip manufacturer, Taiwanese firm TSMC (TSM) — would be exempt from his planned 100% tariffs on chips. That commentary sent chip stocks up. But on Friday, he implied that the exemption may only be temporary. "I'm going to have a rate that is going to be lower at the beginning — that gives them a chance to come in and build — and very high after a certain period of time," he said. Chip stocks dropped Friday after President Trump said he will set tariffs on semiconductors as soon as next week. "I'll be setting tariffs next week and the week after on steel and on, I would say, chips," Trump told reporters Friday while aboard Air Force One while traveling to Alaska to meet Russian President Vladimir Putin, Reuters reported. Nvidia (NVDA), AMD (AMD), and Broadcom (AVGO) fell more than 1%, while Micron (MU) dropped more than 3%. Trump said earlier this month that semiconductor companies building out their domestic manufacturing footprint — this includes the world's leading contract chip manufacturer, Taiwanese firm TSMC (TSM) — would be exempt from his planned 100% tariffs on chips. That commentary sent chip stocks up. But on Friday, he implied that the exemption may only be temporary. "I'm going to have a rate that is going to be lower at the beginning — that gives them a chance to come in and build — and very high after a certain period of time," he said. Consumer sentiment falls in August, marking first decline in 4 months US consumer sentiment deteriorated in August, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 from a reading of 61.7 in July. It was also less than the 62 reading expected by economists surveyed by Bloomberg. 'This deterioration largely stems from rising worries about inflation,' wrote Joanne Hsu, the director of the university's Surveys of Consumers. Consumer sentiment had improved in June and July after plummeting in the spring as Americans worried about the impacts of Trump's tariffs. In May, the index showed sentiment at its second-lowest level on record as consumers expressed concerns over long-term inflation, fueled by uncertainty surrounding Trump's trade policies. Sentiment improved in June as Trump dialed back some of his aggressive stances on tariffs. 'Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused,' Hsu said. 'However, consumers continue to expect both inflation and unemployment to deteriorate in the future.' US consumer sentiment deteriorated in August, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 from a reading of 61.7 in July. It was also less than the 62 reading expected by economists surveyed by Bloomberg. 'This deterioration largely stems from rising worries about inflation,' wrote Joanne Hsu, the director of the university's Surveys of Consumers. Consumer sentiment had improved in June and July after plummeting in the spring as Americans worried about the impacts of Trump's tariffs. In May, the index showed sentiment at its second-lowest level on record as consumers expressed concerns over long-term inflation, fueled by uncertainty surrounding Trump's trade policies. Sentiment improved in June as Trump dialed back some of his aggressive stances on tariffs. 'Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused,' Hsu said. 'However, consumers continue to expect both inflation and unemployment to deteriorate in the future.' US stocks mixed at the open US stocks were mixed on Friday at the open as Wall Street tempered its hopes for the Fed to cut interest rates in September, as economic data this week showed higher than expected wholesale inflation and a rise in July retail sales. The Dow Jones Industrial Average (^DJI) rose around 0.5%, putting the index on track for its first record since December. The benchmark S&P 500 (^GSPC) rose less than 0.1%, and the tech-heavy Nasdaq Composite (^IXIC) fell below the flatline. US stocks were mixed on Friday at the open as Wall Street tempered its hopes for the Fed to cut interest rates in September, as economic data this week showed higher than expected wholesale inflation and a rise in July retail sales. The Dow Jones Industrial Average (^DJI) rose around 0.5%, putting the index on track for its first record since December. The benchmark S&P 500 (^GSPC) rose less than 0.1%, and the tech-heavy Nasdaq Composite (^IXIC) fell below the flatline. Intel stock continues rise as Trump administration reportedly mulls taking stake in chipmaker Intel (INTC) stock spiked more than 7% Thursday and continued to climb 3% before the market open on Friday, following a report that the US government is considering taking a stake in the troubled chipmaker. Bloomberg reported that the Trump administration is in talks with Intel about the deal, which would help the company complete its Ohio factory expansion that had been put on hold. The report follows a meeting between President Trump and Intel CEO Lip-Bu Tan earlier this week, which came after the president called for the CEO's resignation due to his ties with China. "As Intel's prospects have dimmed, the idea of support (governmental or otherwise) has gained traction, understandable given the company, for better or worse, remains the only US-headquartered prospect for leading edge semiconductor chips and processes; it seems like Trump may have been persuaded to see the light," Bernstein analyst Stacy Rasgon wrote in a note to investors Friday. It's not the first time the Trump administration has allegedly floated ideas to prop up Intel. In February, a news report said the US was pitching proposals to its rival TSMC to help support its turnaround by establishing a joint venture with Intel. Read more here. Intel (INTC) stock spiked more than 7% Thursday and continued to climb 3% before the market open on Friday, following a report that the US government is considering taking a stake in the troubled chipmaker. Bloomberg reported that the Trump administration is in talks with Intel about the deal, which would help the company complete its Ohio factory expansion that had been put on hold. The report follows a meeting between President Trump and Intel CEO Lip-Bu Tan earlier this week, which came after the president called for the CEO's resignation due to his ties with China. "As Intel's prospects have dimmed, the idea of support (governmental or otherwise) has gained traction, understandable given the company, for better or worse, remains the only US-headquartered prospect for leading edge semiconductor chips and processes; it seems like Trump may have been persuaded to see the light," Bernstein analyst Stacy Rasgon wrote in a note to investors Friday. It's not the first time the Trump administration has allegedly floated ideas to prop up Intel. In February, a news report said the US was pitching proposals to its rival TSMC to help support its turnaround by establishing a joint venture with Intel. Read more here. Retail sales climb less than expected in July Retail sales rose 0.5% in July from the prior month, according to data from the US Census Bureau released Friday — marking the second monthly gain in a row, as consumer spending steadies following a dramatic drop in earlier in the year. Still, the jump was less than the 0.6% gain expected by economists surveyed by Bloomberg. Excluding auto and gas sales, retail sales were up 0.2%, also less than the 0.3% projected. An even narrower slice of retail sales called the 'control group' — a more precise measure of consumer spending that excludes certain sales such as those from office supply and tobacco stores — climbed 0.5%, ahead of the 0.4% expected. Retail sales rebounded in June, a sign that consumer spending habits were remaining resilient despite President Trump's tariffs. Read more here. Retail sales rose 0.5% in July from the prior month, according to data from the US Census Bureau released Friday — marking the second monthly gain in a row, as consumer spending steadies following a dramatic drop in earlier in the year. Still, the jump was less than the 0.6% gain expected by economists surveyed by Bloomberg. Excluding auto and gas sales, retail sales were up 0.2%, also less than the 0.3% projected. An even narrower slice of retail sales called the 'control group' — a more precise measure of consumer spending that excludes certain sales such as those from office supply and tobacco stores — climbed 0.5%, ahead of the 0.4% expected. Retail sales rebounded in June, a sign that consumer spending habits were remaining resilient despite President Trump's tariffs. Read more here. Investors want rate cut 'validation,' but the Fed's dilemma won't go away Yahoo Finance's Hamza Shaban writes in today's Morning Brief: Read more here. Yahoo Finance's Hamza Shaban writes in today's Morning Brief: Read more here. Good morning. Here's what's happening today. Economic data: Retail sales (July); Export prices (July); Industrial production (July); University of Michigan consumer sentiment (August preliminary) Earnings: No notable earnings. Here are some of the biggest stories you may have missed overnight and early this morning: 'Striking while the iron is hot' Investors want rate cut 'validation,' but the Fed's dilemma remains Applied Materials' shares sink on weak China demand, tariff risks UnitedHealth jumps as Buffett's Berkshire buys 5M shares BofA's Hartnett sees profit-taking in stocks after Jackson Hole AI exacerbates tech divide with smaller stocks languishing A trader's guide to the Alaska talks between Trump and Putin China's economy slows in July on tariffs, weak property market Economic data: Retail sales (July); Export prices (July); Industrial production (July); University of Michigan consumer sentiment (August preliminary) Earnings: No notable earnings. Here are some of the biggest stories you may have missed overnight and early this morning: 'Striking while the iron is hot' Investors want rate cut 'validation,' but the Fed's dilemma remains Applied Materials' shares sink on weak China demand, tariff risks UnitedHealth jumps as Buffett's Berkshire buys 5M shares BofA's Hartnett sees profit-taking in stocks after Jackson Hole AI exacerbates tech divide with smaller stocks languishing A trader's guide to the Alaska talks between Trump and Putin China's economy slows in July on tariffs, weak property market Applied Materials' shares sink on weak China demand, tariff risks Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. UnitedHealth stock soars as Buffett's Berkshire buys 5M shares UnitedHealth Group stock rose 12% before the bell on Friday after Warren Buffett's Berkshire Hathaway (BRK-B, BRK-A) acquired 5 million shares in the company. A regulatory filing showed the purchase on Thursday. Reuters reports: Read more here. UnitedHealth Group stock rose 12% before the bell on Friday after Warren Buffett's Berkshire Hathaway (BRK-B, BRK-A) acquired 5 million shares in the company. A regulatory filing showed the purchase on Thursday. Reuters reports: Read more here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Caterpillar, Deere count the costs of tariffs as soft demand limits pricing power
Caterpillar, Deere count the costs of tariffs as soft demand limits pricing power

Yahoo

time26 minutes ago

  • Yahoo

Caterpillar, Deere count the costs of tariffs as soft demand limits pricing power

By Shivansh Tiwary and Nathan Gomes (Reuters) -Industrial machinery makers are being battered by steeper costs from U.S. President Donald Trump's sweeping tariffs, with sluggish demand and high interest rates leaving little room to pass those expenses onto customers. Caterpillar and Deere, both sector bellwethers, have flagged hefty tariff-related hits this year, most of which they expect to absorb in the coming months as policy shifts keep markets on edge. Global companies that reported between July 16 and August 14 projected a combined financial hit of $14.2 billion to $15.8 billion for the full year, the Reuters' tariff tracker shows. During their respective earnings calls, Caterpillar said tariffs on imported components and materials would weigh on margins, while Deere warned of higher costs for steel and other inputs critical to its agricultural and construction equipment. The new round of tariffs, part of Trump's expansive push to protect U.S. manufacturing and narrow trade deficits, covers a wide range of industrial goods and raw materials. Machinery makers are already contending with a soft demand environment, as an uncertain economic outlook and elevated borrowing costs prompt customers to delay large capital investments. Deere was not able to raise prices as much as expected in its construction and forestry unit, while price increases in its agriculture business were modest and a bit below forecasts, Edward Jones analyst Faisal Hersi said. That has made it harder to pass on rising expenses, a sharp contrast to the pandemic years when resilient farm incomes and robust infrastructure spending allowed equipment makers to offset supply chain disruptions with price hikes and shield their margins. Quarterly operating profit in Deere's construction & forestry unit roughly halved from last year, while Caterpillar's overall operating profit fell nearly 20%. The tariff hit will be felt most in Deere's Small Ag & Turf and Construction & Forestry units, Jefferies analyst Stephen Volkmann said, with pricing moves only partially offsetting the blow. While the levies are designed to spur domestic production, they have raised concerns among manufacturers that rely on global supply chains. Deere expects just a 1% price gain this year in its largest division, Production & Precision Agriculture, leaving little to cushion a hit from normal cost inflation. Caterpillar is facing as much as $1.5 billion in tariff-related costs in 2025, including $400 million to $500 million in the third quarter alone, but is keeping its revenue guidance slightly above 2024 levels. "Currently, inventory destocking is the norm as demand cools, pressuring CAT and DE's ability to push through higher prices onto their customer base," CFRA Research analyst Jonathan Sakraida said. On the demand side, Caterpillar is finding some relief in its Energy & Transportation unit, which supplies engines, turbines, and locomotives for industries from power generation to rail, with strength there helping offset weakness in its Construction Industries and Resource Industries segments. Deere, with its heavier reliance on the farm equipment market, has faced a sharper slowdown, with sales down nearly 18% so far this year. Caterpillar's power generation business, for instance, is avoiding deep discounts to clear inventory, while Deere is expected to take a more aggressive pricing stance in Brazil as those markets move into a recovery phase, Sakraida said. The world's largest farm equipment maker, which expects $600 million in tariff impacts this year - $100 million north of its prior expectation, has cut its annual profit forecast twice this year as slowing farm equipment sales weigh on results.

Saudi Arabia, Turkey And Syrian Reconstruction
Saudi Arabia, Turkey And Syrian Reconstruction

Forbes

time26 minutes ago

  • Forbes

Saudi Arabia, Turkey And Syrian Reconstruction

Profoundly relieved that Syria, after the December 2024 collapse of the Assad regime, broke free of Iran's orbit, Saudi Arabia is now trying to contain Turkey's influence in the Levantine nation. Turkey enjoys the advantages of geography and significant military strength but is hampered by serious economic challenges. Leveraging its position as the world's largest oil exporter, Riyadh seeks to exploit Ankara's financial constraints to establish itself as a major stakeholder in Syria—and, by extension, in the broader Middle East. Achieving a Saudi–Turkish modus vivendi will be critical to the Trump administration's objective of managing the Middle East while reducing U.S. exposure to regional instability." In an unprecedented move late last month, Saudi Arabia pledged $6.4 billion in public and private sector investments for Syria's reconstruction. Leading a delegation of roughly 120 government officials and business leaders, Investment Minister Khalid al-Falih traveled to Damascus to attend the inaugural Syrian–Saudi Investment Forum. The two-day event held July 23–24, yielded 47 agreements spanning energy, infrastructure, telecommunications, real estate, agriculture, and banking. Riyadh's decision to invest—at such scale and in what remains an active battlespace—came just three weeks after the United States lifted sanctions on Syria, a policy shift President Donald Trump announced during his mid-May visit to Saudi Arabia, his first major international trip of his second term. Saudi Arabia and Turkey form the two pillars of the Trump administration's strategy for managing the Middle East—an approach rooted in the president's broader geostrategic approach that allies and partners should take the lead in ensuring the security and prosperity of their respective regions. As the region's center of gravity, Syria is a country Washington seeks to steer toward stability. This priority was underscored by Trump's decision to meet with Syria's new president, Ahmed al-Sharaa—a man who, until 2017, led al-Qaeda in his country. The meeting, hosted by Saudi Arabia's de facto ruler Crown Prince Mohammed bin Salman (MbS) and attended virtually by Turkish President Recep Tayyip Erdoğan, reflected the high stakes and regional coordination driving U.S. policy. Under Erdogan, Turkey has long supported different Islamist factions to further its strategic interests, especially the goal of countering Kurdish separatism on its southeastern periphery. Ankara has actually had close ties with Sharaa's ruling Hayat Tahrir al-Sham (HTS) since its inception in 2017. For Saudi Arabia, however, this marks the first time it has supported a government dominated by an Islamist movement. The magnitude of this policy shift is highlighted by the fact that Riyadh had fully restored diplomatic relations with the now-ousted Assad regime just three months before its overthrow by HTS. Several factors explain this dramatic shift. First, Riyadh had not anticipated the Assad regime's collapse as a byproduct of Iran's weakening in its conflict with Israel. In fact, even as Iran and its premier proxy, Hezbollah, were being eroded through much of 2024, the Saudis appointed their first ambassador to Damascus in 12 years—capping a year-long diplomatic process that included former President Bashar al-Assad's visit to Riyadh in May 2023. In a sense, by normalizing ties with Syria, the kingdom was fortuitously positioned to engage with the new HTS-led government. Second, and more strategically, the Saudis were keen not to miss the historic opportunity presented by regime change in Damascus, which effectively ended Iran's domination of Syria. Riyadh sought to capitalize on the moment and secure its northern flank, long overshadowed by Tehran's contiguous sphere of influence. Third, Turkey was far better positioned to benefit from Syria's detachment from Iran. Its extensive southern border provided Ankara with a significant advantage, allowing it to fill the vacuum left by Tehran's receding presence. With 20,000 troops and tens of thousands of allied militiamen, Turkey has controlled significant swathes of territory across five northern Syrian provinces since 2016. This forward deployment allowed Ankara to provide critical military and intelligence support that enabled HTS to overthrow the Assad regime. Today, Turkey is taking the lead in shaping the post-Assad Syrian state, particularly by directing the development of its armed forces. Nonetheless, Ankara's economic fragilities—soaring inflation, a volatile currency, mounting debt, and a weak financial sector—severely constrain its ability to contribute meaningfully to reconstruction in its war-torn southern neighbor. The Turks understand that for their Syrian allies to consolidate power in Damascus, they must demonstrate tangible progress in rebuilding Syria's infrastructure and restoring essential services. This is a Herculean task, given that international assessments estimate reconstruction costs in the hundreds of billions of dollars, leaving Ankara little choice but to seek Saudi assistance. From Riyadh's perspective, this presents a strategic opening to limit Turkey's influence over the emerging Syrian state. By leveraging Turkish dependence on the kingdom and other wealthy Gulf actors such as the United Arab Emirates, Saudi Arabia can construct a bulwark against Ankara's ambitions to assert itself as the region's dominant power. This imperative is shaped by a long history dating back to the 18th century when the first Saudi state was established in the mid-18th century after MbS' ancestors rebelled against Erdogan's Ottoman forebearers. The Ottomans were able to dismantle the first and second Saudi states in 1824 and 1891 respectively but their own empire collapsed at the end of World War I by which time the Saudis were on their way to staging a comeback in the form of the current modern kingdom. By the late 20th century, Turkey had become a major military and industrial power, while Saudi Arabia leveraged vast oil reserves to emerge as a global financial heavyweight, setting the stage for both nations to assert themselves as major powers. The two nations, however, did not embark upon the path towards strategic competition until the Erdogan regime in the late 2000s began to reorient Turkey from the west and towards the Middle East. This shift was shaped by three decades of upheaval—the collapse of the Soviet Union, the September 11 attacks, and the Arab Spring. Iran's arc of influence extending westwards from the Zagros Mountains to the Eastern Mediterranean, however, continued to serve as a buffer between the Turks and the Saudis. Until last year, when the destruction of Hezbollah's offensive capabilities in Lebanon, which led to the ouster of the Assad regime, brought them face-to-face with one another in Syria. Despite their domestic constraints, both countries view Syria as a strategic priority. The Saudis lack the military and strategic capabilities to match Turkey, while Ankara does not possess the financial leverage Riyadh can wield. These complementary strengths compel the two to cooperate in pursuit of their objectives in Syria. They also share the goal of preventing an Iranian resurgence while ensuring that Israel's security concerns do not derail their mutual aim of stabilizing the country.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store