Latest news with #WeekendBrief
Yahoo
4 days ago
- Business
- Yahoo
America's housing market is cracking
A version of this article originally appeared in Quartz's members-only Weekend Brief newsletter. Quartz members get access to exclusive newsletters and more. Sign up here. The American housing market, a post-pandemic juggernaut that seemed unstoppable, is finally showing signs of fatigue. After more than two years of relentless price increases, the fundamentals are shifting. Home prices are starting to fall, unsold inventory is piling up to levels not seen since the 2008 financial crisis, and buyers — from first-time purchasers to luxury shoppers — are walking away from deals or demanding steep discounts. The combination of mortgage rates hovering around 7% and mounting economic uncertainty around tariffs has created a host of reasons for a buyer to hesitate. What's emerging is a market where sellers are making concessions and buyers hold the cards — a dramatic reversal from the bidding wars and cash offers that defined the market. Home prices in the 20 biggest U.S. metropolitan areas fell 0.12% in March from the previous month, according to the S&P CoreLogic Case-Shiller index. It's a small dip, sure, but it marks the end of a relentless upward march that has defined the housing market since January 2023. The bigger shift is happening in supply. Unsold completed new single-family homes hit 117,000 in April — the highest level since July 2009, according to Census Bureau data analyzed by housing researcher Lance Lambert. That's a 31% jump from the previous year, and it's happening at a time when homebuilders are getting increasingly nervous about demand. Even luxury buyers are backing away. Luxury home sales fell 10% in April from a year earlier, marking the steepest decline since 2023, according to Redfin data. This isn't just about mortgage rates — these are cash buyers and jumbo loan borrowers who theoretically have more financial flexibility. But the retreat among wealthy buyers reflects a broader pattern of anxiety spreading even among the top 5% of U.S. households, with some $7 trillion sitting in money-market funds rather than being deployed into assets like real estate and stocks. For buyers, the landscape is becoming more half of sellers are already offering concessions, according to Redfin, and inventory levels are at the highest point since September 2020. Real estate agents are witnessing the shift in real time. Oregon agent Meme Loggins recently worked with a buyer who successfully negotiated $50,000 off a home's asking price, only to walk away entirely, citing economic uncertainty. 'Everybody wants a deal,' Loggins told Marketplace. 'Everybody's asking for a concession of some sort, either for closing costs, or a fair-sized price reduction, or both.' The geographic picture tells its own story. Texas is leading the correction, with listings hitting 123,000 in April 2025 — 53% higher than normal — making it the fourth most oversupplied housing market in the U.S., according to real estate analyst Nick Gerli. Austin alone has seen a 20.4% fall in home values from pandemic highs, according to Gerli, representing the biggest metro-level correction in America. Florida markets are similarly strained, with metro areas such as Tampa and Jacksonville showing up repeatedly on lists of markets with the most price cuts. Even the Bay Area in California, long considered recession-proof, is showing cracks. In March, about 1,300 new homes hit the market in the San Francisco metropolitan area, but only 780 homes changed status to 'pending' — the largest March gap since at least 2012, according to Redfin. What makes this moment particularly interesting is that it's not just about affordability, though 7% mortgage rates certainly aren't helping. There's a confidence problem brewing, and it's affecting buyers across income levels. Analysts at Citi Research warned that housing activity looks set to contract, potentially signaling a recession ahead, noting that residential investment is 'the most interest rate sensitive sector in the economy.' Federal Housing Finance Agency Director William Pulte has taken notice, urging Federal Reserve Chair Jerome Powell to cut interest rates. 'The housing market would be in much better shape' if rates were lowered, Pulte posted on social media. Most analysts expect the trends to continue. Redfin estimates that home prices will fall 1% in the fourth quarter — which would mark the first annual price decrease since 2012. Zillow also expects home values to fall by 1.4% this year. But don't expect a flood of bargains just yet. Many buyers remain priced out by mortgage rates, while homeowners locked into low-rate mortgages from the pandemic era are reluctant to sell and give up their favorable financing. The result is a market caught between hesitant buyers and reluctant sellers — creating the kind of standoff that could keep transaction volumes depressed even as prices moderate only slightly. What's emerging looks less like the frenzied seller's market of recent years and more like a traditional housing market where buyers can negotiate and sellers have to compete. The question now is whether this represents a return to normal — or the early stages of something more severe. For the latest news, Facebook, Twitter and Instagram.
Yahoo
26-05-2025
- Business
- Yahoo
American tourism faces a 'perfect storm'
A version of this article originally appeared in Quartz's members-only Weekend Brief newsletter. Quartz members get access to exclusive newsletters and more. Sign up here. On a recent Finnair flight from Helsinki to Los Angeles, something felt off. The economy cabin — typically packed with tourists eager to explore California's beaches and theme parks — was less than half full. A flight to Europe two months earlier had been packed to the gills, but this flight had entirely empty rows, a stark reminder that America's appeal as a travel destination has taken a beating this year. That half-empty plane tells a bigger story about American tourism in 2025, one that's playing out just as Memorial Day weekend — traditionally the unofficial start of the summer travel season — approaches with cautious optimism rather than the usual fanfare. The U.S. tourism industry is facing what experts are calling a 'perfect storm' of challenges. According to data from the World Travel & Tourism Council (WTTC), America is on track to lose $12.5 billion in travel revenue this year — making it the only country out of 184 analyzed that's projected to see tourism dollars decline in 2025. International visitor spending is expected to fall to less than $169 billion by year's end, a 7% drop from 2024 and a staggering 22% decline from tourism's pre-pandemic peak in 2019. The WTTC said it could take until 2030 for U.S. tourism to bounce back to pre-COVID numbers. The reasons are complex but interconnected. A strong dollar has made American vacations prohibitively expensive for many international visitors. Stories about strict border controls and immigration enforcement have created hesitation among potential travelers. And the Trump administration's 'America First' rhetoric, while popular domestically, has sent a chilling message to international markets, according to tourism industry leaders. 'Other countries are really rolling out the welcome mat, and it feels like the U.S. is putting up a 'we are closed' sign at their doorway,' Julia Simpson, WTTC's president and CEO, told Bloomberg. The pain is especially acute along the Canadian border, where 66% of businesses in New York's 'north country' have already experienced significant decreases in Canadian bookings for 2025. New York City, typically a magnet for international visitors, has revised its 2025 projections downward by 400,000 tourists and $4 billion in tourism spending. California, despite setting tourism records in 2024, forecasts about a 1% overall decline in visitation and a 9% drop in international visitors this year. Read more: America's airport meltdown is coming at the worst possible time The challenges aren't limited to international visitors. Americans themselves, rattled by economic uncertainty and concerns about potential tariffs, are pulling back on travel spending. This domestic retreat is hitting major travel companies hard. Expedia's stock dropped more than 7% earlier this monthafter reporting weaker-than-expected U.S. travel demand, with CEO Ariane Gorin telling investors that 'U.S. demand was soft, driven by declining consumer sentiment.' Two-thirds of Expedia's business comes from the U.S., making the company particularly vulnerable to domestic travel slowdowns. The picture isn't entirely grim. While Americans are cutting back on travel overall, many are simply shifting their plans rather than canceling them outright. Bank of America data reveals that domestic travel is up 3% as Americans, facing economic uncertainty, opt to explore closer to home rather than expensive overseas trips. And the recent rebound in some international markets offers hope. April saw an 8% increase in overseas visitors compared to the previous year, largely driven by a recovery in Western European travel after March's significant decline. The timing of Easter — which fell in April this year versus March in 2024 — contributed to the bump. Airlines are scrambling to adjust their operations as traveler sentiment deteriorates. The Conference Board's confidence survey found that Americans intending to fly in the next six months fell more than 12% from January. Major carriers are responding by slashing capacity — Delta is cutting its summer schedule after describing it as 'overbuilt,' while United is retiring 21 aircraft early and reducing flights in Canadian markets. The industry's challenges extend beyond shifting demand. Airlines are grappling with fresh operational disruptions that have shaken passenger confidence. Air traffic control failures at major hubs like Newark and Atlanta have caused widespread flight delays and cancellations, with outdated radar systems and severe staffing shortages plaguing the country's busiest airports. Newark has been in near-constant disruption since late April, forcing United Airlines to cancel dozens of flights daily. 'I've had more friends, colleagues and acquaintances say they don't want to fly right now than normal, not because they're scared of crashes, but because they don't want to deal with delays and cancellations,' William McGee, senior fellow for aviation and travel at the American Economic Liberties Project, told CNN. Industry experts such as Adam Sacks from Tourism Economics warn that the worst may be yet to come. 'We believe that pure leisure travel will be the most reactive and we're not quite in the peak window yet,' he told The New York Times. 'I expect as we get into May, June and July the effects will be more pronounced.' For now, that half-empty Helsinki-to-LAX flight serves as a quiet reminder that America's brand as the world's premier travel destination isn't guaranteed. While domestic travelers may be filling some of those empty seats this Memorial Day weekend, the international visitors who typically stay longer and spend more are increasingly choosing destinations like Mexico, the Caribbean, and other markets that offer easier entry and warmer receptions. For the latest news, Facebook, Twitter and Instagram.
Yahoo
19-05-2025
- Business
- Yahoo
America's airport meltdown is coming at the worst possible time
A version of this article originally appeared in Quartz's members-only Weekend Brief newsletter. Quartz members get access to exclusive newsletters and more. Sign up here. America's skies are running on floppy disks and copper wires from the 1980s. Travelers are paying the price. Newark Liberty International Airport has been melting down, an air traffic controller facility in Colorado had a communication outage, and Atlanta's airport also ground to a halt last week. The chaos at Newark and Atlanta, two of America's busiest airports, highlights what United Airlines CEO Scott Kirby calls a 'broken system' in desperate need of an upgrade. The FAA issued ground stops at both hubs due to equipment issues and telecommunications failures — problems that have become increasingly common as the agency struggles with outdated technology, staffing shortages, and management issues. The Trump administration unveiled its solution earlier this month with a 'Brand New Air Traffic Control System Plan.' Transportation Secretary Sean Duffy said the plan requires all funding upfront, not in piecemeal tranches. 'One of the problems in the past is when you give small tranches of money year over year, politics change, leadership changes, presidents change... and it never gets built,' Duffy said at a news conference. While the administration hasn't specified a total price tag, the $12.5 billion already passed by the House is described as a 'down payment,' with industry groups estimating the true cost closer to $31 billion. Newark's issues run particularly deep. The airport has been in a state of near-constant disruption since late April, when air traffic controllers briefly lost radar access — a terrifying moment that prompted controllers to take emergency leave under federal compensation rules. United, which accounts for about 70% of Newark's traffic, has been forced to cancel dozens of flights daily. Kirby placed the blame squarely on a 2016 FAA decision to remove 'slot controls' at the airport, a scheduling mechanism that limits how many flights can take off or land each hour. 'It was a mistake to de-slot the airport,' Kirby wrote in a Fox News op-ed. 'Every single data point says so.' A Colorado facility overseeing flights across much of the West lost communication for about 90 seconds before service was restored, though the FAA said operations were unaffected. At Atlanta's Hartsfield-Jackson — the world's busiest airport — a Mother's Day ground stop lasted until noon due to 'a runway equipment issue,' delaying more than 600 flights. The disruption affected thousands of travelers at one of the nation's key transportation hubs, with the FAA only saying that technicians were 'working to address the problem.' Meanwhile, staffing remains a critical issue, with Newark particularly hard-hit. The airport has 22 air traffic controllers, significantly less than a target of 38, according to the FAA. Newark moved its air traffic control to Philadelphia last year with the hopes of easing recruiting in a cheaper area than the New York City metro. But last Monday, three controllers were on shift when the target was 14, causing delays of up to seven hours, according to The New York Times. The stakes for air safety were made clear in January when an American Airlines regional jet collided with a U.S. Army Black Hawk helicopter over the Potomac River near Ronald Reagan Washington National Airport, killing all 67 people aboard. In March, a National Transportation Safety Board's (NTSB) investigation revealed an alarming pattern: There was at least one 'close call' each month between commercial planes and helicopters at DCA over a 13-year period. Between late 2021 and 2024 alone, the NTSB identified more than 15,000 'close-proximity events' between aircraft. 'This was not an isolated incident, but a symptom of broader failures in our aviation safety system,' families of the January crash victims said in a statement after the NTSB report, which highlighted many of the same issues plaguing Newark. The Brand New Air Traffic Control System Plan seeks to address these issues through comprehensive technological upgrades. Priorities include replacing 25,000 analog radios with VoIP systems, upgrading primary radar configurations, and retiring 'dozens of bespoke information-display systems still running on floppy disks and CDs.' But critics argue the plan throws money at symptoms without treating the disease. Aviation blogger Gary Leff calls it 'a band-aid' that 'rewards failure with more money' while failing to address the FAA's structural problems. Unlike NavCanada — Canada's nonprofit air traffic control system that is decades ahead technologically — the FAA both regulates itself and provides services, creating what reformers see as a fundamental conflict of interest. 'The FAA's Air Traffic Organization has no accountability because the same agency writes safety rules and runs the system,' Leff said in a blog post. The first Trump administration attempted similar reforms along the lines of Canada's model but couldn't overcome political resistance despite support from the air traffic controllers. As summer travel season approaches — typically the busiest and most profitable quarter for airlines — the industry is watching nervously to see if the administration's technological band-aid will arrive in time to prevent Newark's problems from spreading throughout America's increasingly fragile airspace. For the latest news, Facebook, Twitter and Instagram.
Yahoo
12-05-2025
- Business
- Yahoo
Apple's brutal year keeps getting worse
A version of this article originally appeared in Quartz's members-only Weekend Brief newsletter. Quartz members get access to exclusive newsletters and more. Sign up here. Apple is having a terrible 2025. The company that dominated tech for over a decade is suddenly battling challenges on three critical fronts: a damaging legal defeat that could upend its App Store business model, mounting tariff costs eating into profits, and significant delays in its AI strategy that have competitors pulling ahead. The most immediate blow came earlier this month when U.S. District Judge Yvonne Gonzalez Rogers found Apple in contempt of court for willfully violating her 2021 injunction in the Epic Games case. The ruling was unusually harsh, accusing Apple of deliberately circumventing the court's orders by implementing a 27% commission on developers who directed users to external payment options — lower than its standard 30% rate. 'Apple knew exactly what it was doing and at every turn chose the most anti-competitive option,' Judge Rogers wrote, accusing Apple's Vice President of Finance, Alex Roman, of having 'outright lied under oath' about the company's decision-making process. The judge referred the matter to federal prosecutors to consider criminal contempt proceedings — an extraordinary step for a company of Apple's stature. The ruling immediately bars Apple from restricting developers' communication with users about alternative payment options and prohibits the company from imposing commissions on external purchases. This represents a significant blow to Apple's App Store revenue model, which has been a key driver of its increasingly important services business. Services revenue, which includes the App Store, accounted for more than 28% of Apple's total quarterly revenue in its most recent earning report, making it the company's second-largest revenue category after iPhone sales. Apple has appealed the decision. Meanwhile, CEO Tim Cook revealed during the company's earnings call that President Donald Trump's tariff policies would add about $900 million to Apple's costs in the current quarter alone. When asked about future impacts, Cook said predicting beyond June is 'very difficult' given the uncertain trade environment. In response, Apple is rapidly reconfiguring its supply chain. Cook announced that the majority of iPhones sold in the U.S. will now come from India rather than China, with other devices being sourced from Vietnam. While this shift demonstrates Apple's supply chain flexibility, it comes with substantial operational challenges and costs. Perhaps most concerning for Apple's long-term outlook is its faltering AI strategy. In March, the company confirmed that its most anticipated Apple Intelligence features — particularly enhancements to Siri — would be delayed until 'the coming year.' These postponed capabilities, which include Siri's ability to understand personal context across apps and perform complex actions, were prominently featured in TV commercials that Apple has since pulled. As influential tech blogger John Gruber of Daring Fireball noted in a post ominously titled 'Something is Rotten in the State of Cupertino,' what makes Apple's AI delays so troubling is how they break the company's decades-long pattern of reliability. Gruber called the situation a 'fiasco' in which Apple essentially promoted AI capabilities it couldn't deliver. He observed that Apple had built an exceptional record of credibility over 30 years — if it showed or promised a feature, customers could count on it arriving as scheduled. The fact that Apple never demonstrated the 'more personalized Siri' features to the press, even in controlled environments, suggests they may have been far less developed than Apple led consumers to believe. This AI stumble is particularly problematic as competitors such as Google, Microsoft, and OpenAI continue advancing their artificial intelligence offerings. For a company that has positioned itself as an innovation leader, falling behind in what many consider the next technological revolution threatens to undermine Apple's premium brand position. Wall Street has noticed these converging problems. Apple shares have declined about 20% so far this year, with the legal setback triggering another sharp drop earlier this month. For investors accustomed to Apple's seemingly unstoppable growth, the setbacks raise questions about the company's future trajectory. For a company built on controlling everything from silicon to storefront, these external challenges represent unfamiliar territory. In a twist of irony, Epic Games' Fortnite will return to the iOS App Store this week after almost five years of absence — though with a creative workaround. Since Apple terminated Epic's U.S. developer account in 2020, CEO Tim Sweeney confirmed they'll be using their Swedish subsidiary account to submit Fortnite to the U.S. App Store. Meanwhile, Sweeney has offered Apple a 'peace proposal': extend the court-ordered changes worldwide, and Epic will drop all litigation. For iOS users who have been unable to play one of the world's most popular video games since 2020, that's perhaps the one silver lining in Apple's storm cloud of a year. For the latest news, Facebook, Twitter and Instagram. Sign in to access your portfolio
Yahoo
05-05-2025
- Business
- Yahoo
What the case against Google is really about
A version of this article originally appeared in Quartz's members-only Weekend Brief newsletter. Quartz members get access to exclusive newsletters and more. Sign up here. The government is finally moving to break up Google's search monopoly — just as the real battle has shifted to artificial intelligence. In a Washington courtroom, the Justice Department is laying out its case for dismantling parts of Google's empire, the culmination of an antitrust lawsuit first filed in 2020. But in the years since the original complaint focused on search engine dominance, the technological landscape has dramatically transformed. What began as a case about Google's grip on search is now equally about preventing the tech giant from leveraging that position to control the next frontier: AI. 'This court's remedy should be forward-looking and not ignore what is on the horizon,' David Dahlquist, the DOJ's acting deputy director of antitrust civil litigation, said in his opening statement. The argument underscored that regulators fear they're fighting yesterday's war even as a new one unfolds. Officials intend to seek a range of other remedies discussed in a court filing last month, including imposing data licensing requirements and requiring more transparency for advertisers on where their ads appear. The DOJ is also expected to demand 'measures related to artificial intelligence and its Android smartphone operating system' that would likely stop Google from hoarding user data for both search results and AI products. That could pave the way for more users to opt their content out of AI training. Bloomberg reports that in addition to banning Google's exclusive default deals, the government might force Google to sell off Chrome, the world's most popular browser. Tech rivals have quickly positioned themselves for the potential aftermath. An OpenAI executive said the company would be interested in buying Chrome, giving the company an easy path to building an 'AI-first' browsing experience that could transform how users navigate the web. OpenAI isn't alone. Perplexity, an AI company barely three years old, has entered the Chrome conversation. Even Yahoo, a former internet giant seeking relevance again, has reportedly shown interest in acquiring Chrome, adding another layer to the competition. Google CEO Sundar Pichai has mounted a vigorous defense against the government. Testifying in federal court on Wednesday, Pichai warned that the DOJ's proposal to force Google to share its search data would amount to a 'de facto divestiture' of the company's search engine, which took decades of investment to build. 'AI is one of the most profound technologies humans will ever work on,' Pichai told the court, pointing out that Google has invested approximately $49 billion in AI research and development. He characterized the government's demands as 'so far-reaching, so extraordinary' that they effectively ask Google to give away its core intellectual property. Asked by Judge Mehta how AI might transform search in the coming years, Pichai acknowledged that AI will 'deeply transform' Google search in 'very profound' ways. Yet he maintained that competition in AI remains fierce, pointing to what he called a 'big gap' between Google's Gemini and market leader ChatGPT. Still, court testimony revealed Google is already replicating its search playbook in the AI realm, paying Samsung substantial sums to make Gemini the default AI assistant on its devices — a strategy remarkably similar to what triggered its current legal troubles. The government's theory is straightforward: Google has created a self-reinforcing cycle where its control of search helps improve its AI products, which in turn sends more users back to Google search, maintaining the company's dominance and blocking competitors in both markets. At the heart of this argument is data — specifically, Google's massive search index, containing hundreds of billions of websites across more than 100 million gigabytes, according to court documents. This vast trove of information gives Google an immense advantage in training AI models, a point the DOJ has hammered home by calling executives from competing AI companies to testify. For media companies and publishers, the implications are significant. Unlike OpenAI, Microsoft, and Meta, Google has generally avoided paying publishers for content used by its AI systems. The exception is Reddit, which reportedly receives $60 million annually for access to its user-generated content. 'It would be the worst of both worlds,' Pete Pachal, an industry analyst, said in his Substack, warning about a Google-dominated AI future. 'No licensing checks and no search referrals, because user queries never leave the on-device chatbox.' Google denies that it could monopolize AI, pointing to strong competition in the space. Internal documents presented in court showed that while Gemini reached 35 million daily active users by March, it still trails behind what it estimates is ChatGPT's 160 million daily users. The irony isn't lost on industry veterans: Google itself rose to prominence in the aftermath of the original browser wars of the 1990s, when Microsoft's Internet Explorer faced antitrust action. That intervention created space for innovation, allowing upstarts like Google to flourish in a more open internet ecosystem. Now Google finds itself cast as the monopolist, while a new generation of AI companies hopes regulatory action will give them the same opportunity Google once had — the chance to compete on a level playing field. For the latest news, Facebook, Twitter and Instagram.
