Latest news with #WorldEconomySummit
Time of India
06-05-2025
- Business
- Time of India
Netflix CEO Ted Sarandos on company's contribution to US economy: 'People forget this...'
"Netflix alone, I think, from 2020 through 2024 contributed $125 billion to the U.S. economy.' 'People forget this is a real business,' 'You hardly ever see a sitting president photographed on a studio lot,' Why Netflix is not worried about US-China tariff dispute Netflix co-CEO Ted Sarandos recently claimed that the streaming giant contributed $125 billion to the US economy between 2020 and 2024. Last month, while revealing this detail at Semafor's World Economy Summit, Sarandos said:This massive impact stems not only from subscriber revenue but from the company's extensive production and employment footprint across America. According to Netflix's official blog, that $125 billion infusion included over 900 productions and 140,000 jobs spanning all 50 states. The streamer directly employs 9,000 US-based staff and occupies five million square feet of studio and office space, most of it concentrated in California. Despite these contributions, Sarandos warned that the entertainment sector is frequently sidelined in economic noted, highlighting the industry's absence from trade negotiations and federal added, pointing at the manufacturing-first focus that often dominates national economic the event, Sarandos also revealed that Netflix's effort to enter China in 2017 through a licensing partnership with iQiyi collapsed after not a single episode cleared government censorship over three years. While the move was ultimately abandoned, it has shielded Netflix from the ongoing US-China trade frictions that later prompted Beijing to curb American film of operational risk in China, Netflix is now doubling down on its core streaming business as it pursues a $1 trillion market-cap goal by 2030. Sarandos noted that Netflix commands about 10% of TV viewing time in its most mature markets and represents roughly 5% of the $650 billion annual consumer spend on further engage fans, Netflix will open two 100,000-square-foot 'Netflix House' venues—one in Dallas and another in King of Prussia, Pennsylvania—featuring themed dining, retail, and immersive experiences tied to its hit shows.
Yahoo
01-05-2025
- Business
- Yahoo
Billionaire Ken Griffin Says Trump's Tariffs Have Made the U.S. "20% Poorer." Here's What You Can Do to Prevent Further Wealth Erosion.
GOP supporter Ken Griffin believes that Trump's tariffs have made the U.S. "20% poorer in four weeks." While Griffin's 20% figure is hard to substantiate, the issues he pointed out with the White House's trade policies are real. Investors can take several steps to protect their wealth, including buying international stocks and Treasury Inflation-Protected Securities (TIPS). Billionaire Ken Griffin is a major supporter of President Donald Trump and donated $100 million last year to conservative groups. However, Griffin isn't a fan of all the president's policies. He recently told Semafor's Gina Chon at the World Economy Summit that Trump's tariffs have made the U.S. "20% poorer in four weeks." Griffin has stated in the past that no brand compares to U.S. Treasuries. However, he believes the White House has "put that brand at risk." The hedge fund manager added, "It can be a lifetime to repair the damage that has been done." Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Griffin's comment about the U.S. being 20% poorer as a result of Trump's trade policies appears to reference the strength of the U.S. dollar relative to the euro. A weaker dollar can reduce consumers' buying power by making imported products and international travel more expensive. Tariffs can fuel inflation directly as importers pass their higher costs to American consumers. Retaliatory tariffs from other countries can hurt U.S. exporters and potentially lead to job losses in the impacted industries. Uncertainty created by trade wars can also reduce the global demand for U.S. Treasuries. This uncertainty can also cause the prices of many stocks to decline. But Griffin's 20% figure is suspect. The U.S. dollar has fallen around 10% relative to the euro this year, a steep decline that could negatively impact Americans' buying power in some ways. However, that's only half the number Griffin mentioned. The demand for U.S. Treasuries appears to have weakened somewhat, but not at an alarming rate. Also, while the S&P 500 (SNPINDEX: ^GSPC) (a good proxy for the overall stock market) is in correction territory, it has partially rebounded. Although Griffin's statement that the U.S. is "20% poorer" is hard to substantiate, tariffs have caused many Americans to be less wealthy than they were just a few months ago. If steep tariffs remain in effect, inflation could rise and reduce consumers' buying power even more. What can you do to prevent further wealth erosion? Here are four steps to take. Diversifying your portfolio, in general, is always a wise strategy. With the potential for further weakening of the U.S. dollar and lower demand for U.S. Treasuries, including international stocks in your investment portfolio could be a good move. A quick look at Vanguard's exchange-traded funds (ETFs) reveals that nine of the top 10 performers year to date are international funds. That's not surprising considering the global market dynamics caused by the Trump administration's trade policies. To protect your money against the corrosive effects of inflation, you might consider buying Treasury Inflation-Protected Securities (TIPS). If your principal invested in these Treasury securities goes up over time, you get the full increase adjusted for inflation. If the principal declines below the original amount invested, you still get the original amount. Precious metals tend to be good inflation hedges and can also rise during times of uncertainty. We've seen this happen so far in 2025 with the price of gold jumping while the stock market fell. Investing in precious metals could be a reasonable move for investors to take to prevent further erosion of their wealth. You could purchase physical gold or silver, including coins and jewelry. Another option is to invest in funds that own precious metals, such as the iShares Gold Trust. Or you could consider investing in a top gold miner such as Barrick Gold. Buying stocks that are likely to be highly resistant to the negative effects of tariffs could also be helpful. Many consumer staples stocks tend to be relatively tariff-resistant and hold up well during economic downturns. For example, The Coca-Cola Company is a blue chip stock that many investors find attractive during uncertain times as people keep buying soda even when times are tough. Utility stocks are another good alternative as power demand doesn't always dip with the economy. Dominion Energy, which provides electric power to Virginia, North Carolina, and South Carolina, is one utility stock to consider. It's also important for investors to stay alert to potential market dynamic changes. For example, the permanent lifting of tariffs or steep reductions in tariff rates by Trump could change things considerably. The assets that perform best during periods of uncertainty usually aren't the best ones to own when the uncertainty fades. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $282,457!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,288!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $610,327!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of April 28, 2025 Keith Speights has positions in Dominion Energy. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy. Billionaire Ken Griffin Says Trump's Tariffs Have Made the U.S. "20% Poorer." Here's What You Can Do to Prevent Further Wealth Erosion. was originally published by The Motley Fool
Yahoo
30-04-2025
- Business
- Yahoo
Leading through uncertainty: Advice from Xcel Energy's CEO, a former CFO
Good morning. More finance chiefs are being considered for chief executive roles. But the C-suite trend of CFO-to-CEO increasingly includes execs with operational acumen of the core business and strategy experience, in addition to finance. Take, for instance, Bob Frenzel, CEO of Xcel Energy (No. 302 on the Fortune 500), one of the largest public utilities in the country. Frenzel joined the company in 2016 as EVP and CFO. In 2020, he began serving as president and chief operating officer, where he led Xcel Energy's four utility operating companies, in addition to the transmission, distribution, and natural gas operations. Frenzel was promoted to chairman, president, and CEO in 2021. His operational experience first began after college when he served in the U.S. Navy for six years, working as a nuclear engineering officer and weapons officer. Frenzel's CFO roots continue to serve him well. "We spend a lot of time thinking about the cost of capital," he said of Xcel Energy during a fireside chat last week at Semafor's World Economy Summit in Washington, D.C. "We deploy probably $10 billion of capital a year. As an industry, we're probably $200 billion a year of capital deployment." U.S. electricity demand is projected to grow by 3% annually through 2030 following decades of stagnation, driven by the adoption of new devices and technologies, Al-driven data centers and the resurgence of manufacturing, according to the company's latest white paper. Following his talk, I asked Frenzel about what prepared him for the CEO role and his thoughts on leading during uncertain times. Here's what he had to say:I attended the University of Chicago to get an MBA and our accounting professor there, who is world-renowned, would say that accounting is the language of business, and sometimes business is the language of leadership. As a company, we're very capital-intensive, one of the most capital-intensive industries in the United States. And so understanding how to raise capital, deploy capital, manage budgets, and balance budgets, is important in the business, and it could be in making electricity or making a manufacturing device. I think having that financial background is very helpful.I'm a recovering CFO, but I'm also a nuclear engineer, so I did start my career in making electricity. I always like to think I've been making electricity for three decades. Yes, in this industry, having a background in energy, generation, transmission, engineering, or construction, all those things are things that we do, is at the big picture, the skill sets to become a CEO are broad. But not everybody comes in with the full slate of all the skills you need to be the CEO of any company. You have to be able to hire great talent, understand where your blind spots might be in terms of your own skills and talent, and then fill those spots with great people. And, where you have more expertise, you may be able to lean on yourself a little bit more, as opposed to your team. I think having great teams, whether it's a finance, communications, or HR team, is necessary for a CEO to be I come to work and I talk to my team or the broad organization, it's about focus. There's just so much news media, there's so much social media, and it's kind of all the time on and you can see how it wears on people. I know that if we show up and deliver for our customers, we keep the customer at the center of everything we do, and we focus on delivering our life-essential product to our customers when and where they need it, at a price that's as low as possible, then I know we can deal with all the uncertainty that comes—whether it's a headline or it's a financial challenge. Sheryl This story was originally featured on Sign in to access your portfolio
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First Post
30-04-2025
- Business
- First Post
A battle unnoticed: White House vs energy firms amid America's power deficit, AI race with China
Fuels that can operate inexpensively around the clock, such as coal, gas, and nuclear, are critical to US AI competitiveness, according to Burgum, who also chairs the National Energy Dominance Council read more Some of the largest US power corporations disagree with senior Trump administration officials on how to address the country's growing electricity deficit while beating China in the AI race. Interior Secretary Doug Burgum stated at Semafor's World Economy Summit last week that Washington's drive to expedite permission for the development of new energy resources will not apply to 'intermittent' power sources. The prolonged use of government tax subsidies to replace fossil fuels in the electric grid with renewables 'would be catastrophic for our country,' he said. STORY CONTINUES BELOW THIS AD Fuels that can operate inexpensively around the clock, such as coal, gas, and nuclear, are critical to US AI competitiveness, according to Burgum, who also chairs the National Energy Dominance Council. However, executives at firms that manage the transmission of electricity to new data centres have a more nuanced perspective. Even while growing trade barriers with China make some technologies more expensive, renewables and batteries remain the cheapest and fastest option to add additional electrons to the grid. 'Before, I always argued that you need some gas in the [power] mix to make it cheaper,' said Andrés Gluski, CEO of the international energy giant AES, one of the leading data centre power providers in the United States, at WES. 'Now, I would argue that you need renewables in the mix to make it cheaper. Over the next five years, the bulk of new energy in the US is going to be renewables. Burgum stated last week that the Trump administration had 'no hostility towards renewables.' One may expect the urgency of the AI race to break down ideological barriers for policymakers on both sides of the fossil fuels vs. renewables debate. However, for a politician like Burgum, whose home state of North Dakota is a major oil and gas producer, the attachment to hydrocarbons runs deep, which can lead to some ignorance regarding the true costs and timescales for other data centre energy solutions. STORY CONTINUES BELOW THIS AD 'Any state in this country that is saying 'We're not going to allow natural gas pipelines, we're going to bank on wind and solar,' they're not going to have any AI data centers,' Burgum said. 'There's not some magical solution that's appeared yet where we can have cheap and affordable load-shifting by using batteries in conjunction with intermittent [power sources].' According to Bob Frenzel, CEO of the midwestern utility Xcel Energy, some utilities may decide to gradually prolong the life of current coal plants rather than rush to shut them down in response to Trump's recent executive order that supports coal mining and coal-fired power generation. Batteries will be among the technologies whose costs are disproportionately increased by trade barriers with China. However, whether it comes down to supplying new data centre clients with utility-scale batteries or a new $50 million substation, batteries still win, according to Calvin Butler, CEO of Exelon, the largest regulated utility company in the United States. STORY CONTINUES BELOW THIS AD If the Trump administration is serious about assisting power companies in the AI race, it may need to explore establishing tariff exemptions for utility-scale batteries. The more the United States tries to distance itself from renewables and batteries, whether through trade barriers, reduced tax incentives, or pushing them to the back of the permitting reform queue, the greater the 'bifurcation' between their prices in the United States and elsewhere, according to Gluski. That risks undermining the United States' AI objectives. Renewables are advancing quickly, but natural gas still plays an important part in the future US power grid, and although a turnaround in coal demand is doubtful, gas consumption is expected to increase. Gas is already the dominant energy source for data centres, accounting for around 40% of consumption. And as data centre demand rises, IT businesses will face increased competition from US LNG producers, who may have less fuel to sell overseas.
Yahoo
29-04-2025
- Business
- Yahoo
The US can't win the AI race without renewables
Some of the biggest US power companies are at odds with senior Trump administration officials on how to fill the country's looming electricity deficit and beat China at the AI race. Interior Secretary Doug Burgum told Semafor's World Economy Summit last week that Washington's push to fast-track permitting for the development of new energy resources won't apply to 'intermittent' power sources. The continued use of federal tax credits to replace fossil fuels in the electric grid with renewables 'would be catastrophic for our country,' he said. Fuels that can run cheaply around the clock, including coal, gas, and nuclear, are the key to US competitiveness on AI, added Burgum, who also chairs the National Energy Dominance Council. But executives of companies actually managing the delivery of power to new data centers have a more nuanced view: Even as rising trade barriers with China make some technologies more expensive, renewables plus batteries are still the cheapest and fastest way to put new electrons on the grid. 'Before, I always argued that you need some gas in the [power] mix to make it cheaper,' said Andrés Gluski, CEO of the multinational energy company AES, one of the top power providers for data centers in the US, at WES. 'Now, I would argue that you need in the mix to make it cheaper. Over the next five years, the bulk of new energy in the US is going to be renewables.' It's a favorite game of US politicians to pretend to be agnostic about energy technology. Presidents Barack Obama and Joe Biden played up the need for 'all of the above' energy sources. In his comments last week, Burgum said the Trump administration doesn't have 'any hostility towards renewables.' One might think the urgency of the AI race would indeed break down ideological barriers for policymakers on both sides of the fossils vs. renewables debate. But for a leader like Burgum, whose home state of North Dakota is a top oil and gas producer, the attachment to hydrocarbons runs bone-deep, and can lead to some myopia about the real costs and timelines for various options on the data center energy menu. 'Any state in this country that is saying 'We're not going to allow natural gas pipelines, we're going to bank on wind and solar,' they're not going to have any AI data centers,' Burgum said. 'There's not some magical solution that's appeared yet where we can have cheap and affordable load-shifting by using batteries in conjunction with intermittent [power sources].' Utility CEOs, on the other hand, have customers, regulators, and shareholders watching their books. And in my conversations with them at the World Economy Summit, it was clear that they still see renewables as the main solution: Nuclear will help eventually but not in the next few years; gas is cheap and reliable as a fuel, but expensive and backlogged in terms of the hardware needed to use it; and coal is a non-starter for most tech companies, which may be somewhat willing to compromise their climate goals in the interest of speedy power but not if it means bearing responsibility for a large shift backward to the country's dirtiest energy source. Trump's recent executive order that aims to prop up coal mining and coal-fired power generation may cause some utilities to moderately extend the lifetime of existing coal plants rather than race to shut them down, said Bob Frenzel, CEO of the midwestern utility Xcel Energy. The power industry itself, as well as its suppliers and regulators, hasn't been designed for any kind of growth for years, he said, so it will take some time to catch up. But a major coal renaissance isn't in the cards: 'We've got newer and more cost-effective forms of generation: We have wind, we have solar, we have storage.' Batteries will be among the technologies whose cost is most elevated by trade barriers with China. But if the choice for serving new data center customers is between utility-scale batteries and a new $50 million substation, batteries still win, said Calvin Butler, CEO of Exelon, the largest regulated utility company in the US. If the Trump administration is serious about helping power companies win the AI race, it may need to consider carving out tariff exemptions for utility-scale batteries. The more the US tries to lean away from renewables and batteries — whether through trade barriers, scaling back tax incentives, or punting them to the back of the permitting reform queue — the more of a 'bifurcation' there will be between their price in the US and their price everywhere else, Gluski said. That risks needlessly handicapping US AI ambitions. Renewables might be moving fast, but there's still a growing role for natural gas in the future US electric grid, and while a turnaround in the downward trajectory of coal demand is highly unlikely, gas demand is poised to skyrocket. Gas is already the primary energy source for data centers, supplying about 40% of demand. And as data center demand grows, it will put tech companies increasingly in competition with US LNG exporters, who may find they have less fuel available to sell abroad. The US needs a more pragmatic approach to data centers that prioritizes clean energy, said Hank Paulson, Treasury Secretary under US President George W. Bush. 'Sticking with gas would be to sacrifice speed of development and bet against the rapid decline of solar and battery storage costs,' he wrote in the Financial Times.
