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Core Scientific, Inc. (CORZ), a key player in high-performance computing and bitcoin mining, has appointed Jim Nygaard as its new Chief Financial Officer, effective from March 17. Nygaard, with his rich background in mergers and acquisitions, corporate finance, and capital markets from his previous roles at XMS Capital Partners and Morgan Stanley, is expected to significantly contribute to the company's growth and shareholder value. The transition follows the tenure of Denise Sterling, who successfully navigated the company through a Chapter 11 restructuring and raised over $1 billion in capital. Sterling will remain with the company until May 1 to facilitate a seamless handover. This leadership change comes at a time when Core Scientific is expanding its operations, having recently announced a $1.2 billion expansion of its data centers in partnership with CoreWeave. Despite these developments, the company's stock has experienced a 2% increase in pre-market trading but is down over 20% year-to-date.
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Best Buy is set to announce its fourth quarter results, with expectations of a continued decline in same-store sales due to economic pressures on discretionary spending. Analysts predict a 1.45% drop in same-store sales, marking the 13th consecutive quarter of negative growth. Despite these challenges, there's optimism for 2025 as the replacement cycle for electronics is expected to boost sales, particularly with advancements in AI technology. Best Buy's stock has shown resilience, outperforming the S&P 500 with a nearly 5% increase year to date. However, the company faces hurdles like industry trends, lack of innovation, and competition from omnichannel giants like Walmart and Costco. Additionally, tariffs on Chinese goods and potential tariffs on Mexican and Canadian imports could lead to price increases for consumers, as Best Buy sources a significant portion of its products from these countries. The company's full-year projections have been adjusted downwards, reflecting cautious optimism amidst these challenges.
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Tether, the leading stablecoin issuer, has appointed Simon McWilliams as its new Chief Financial Officer (CFO) to spearhead its efforts towards transparency and regulatory compliance. This move comes as Tether aims to complete a full financial audit, a significant step in addressing long-standing criticisms regarding the backing of its USDT stablecoin. Previously, Tether has faced scrutiny over its reserves, with critics questioning the sufficiency of its backing. The appointment of McWilliams, who brings over 20 years of finance experience, underscores Tether's commitment to enhancing industry standards and regulatory engagement. The company currently publishes quarterly attestations of its reserves, but a full audit could provide more detailed insights. Tether holds over $113 billion in U.S. Treasury bills, making it one of the largest holders of U.S. government debt, and reported a $13 billion profit for 2024. The transition also sees Giancarlo Devasini moving to the role of Chairman of the Group, with CEO Paolo Ardoino emphasizing the importance of transparency and the impact of McWilliams' appointment.
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President Donald Trump is employing tariffs as a key instrument to overhaul US trade policy, affecting relations with major trade partners. He has threatened to impose 25% tariffs on Canada and Mexico, with some ambiguity around the exact rate and timing. These tariffs are part of a broader strategy that includes duties on China, which have already led to retaliatory actions from Beijing, and potential new tariffs on the European Union. Trump's approach also involves a 25% tariff on all steel and aluminum imports, set to take effect on March 12, which could disrupt global supply chains and increase costs for industries like oil and gas drilling in Canada. The looming tariffs have sparked concerns about inflation, with consumer confidence dropping as fears of price increases grow. Despite these concerns, some industries, like beverage companies, might absorb the cost without significantly affecting consumer prices. The administration's actions are part of a complex web of trade negotiations and retaliatory measures, with potential implications for inflation and Federal Reserve interest rate decisions.
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The article discusses the expansion of international retailers into the U.S. market, focusing on Primark's new store at Queens Center mall in Elmhurst, NY. Primark, known for its discount clothing and accessories, is part of a broader trend where foreign retailers like Mango, Aritzia, and Uniqlo are pushing into new U.S. regions. These companies are attracted by the U.S.'s fragmented retail market, resilient consumer spending, and the global influence of fashion trends via social media. The U.S. has seen a significant number of new store openings by foreign retailers, with Primark planning to increase its U.S. presence significantly. The article highlights how these retailers are filling gaps left by the closure of traditional department stores and specialty shops, with Primark noting a particular demand for children's clothing. Despite their growth, these international brands still represent a minor part of the U.S. apparel market, with Primark's U.S. sales contributing only 5% to its global figures. The expansion, however, comes with challenges, as seen with Primark's initial missteps in understanding local sports merchandise preferences and its lack of an e-commerce platform in the U.S.
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Anthony Scaramucci, former Trump communications director, has expressed concerns that President Trump's tariff policies could push the US economy into a recession. Speaking at the Bitcoin Investor Week conference, Scaramucci highlighted that tariffs act as a regressive tax, disproportionately impacting lower-income groups by reducing their disposable income. Despite potential economic pain, Trump is set to impose new tariffs on Mexico, Canada, and additional tariffs on China. Economic analyses suggest these measures could reduce US GDP by 0.4% to 2.1% by 2025-2026, increase inflation, and dampen consumer spending and business investment. The Conference Board’s Consumer Confidence Index has already shown a significant decline, reflecting growing concerns over inflation and tariffs. Warren Buffett and other economic experts have also voiced their apprehension, describing tariffs as a form of economic warfare that could lead to stagflation if escalated into a full-scale trade war.
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The first week of March is pivotal for investors as they await the February jobs report and key retail earnings that could either fuel or alleviate concerns about the U.S. economy. The jobs report is anticipated to show a modest increase in hiring with the unemployment rate holding steady at 4%. Retail giants like Target, Costco, Kroger, and Abercrombie & Fitch are expected to shed light on consumer behavior amidst signs of economic stress. Additionally, new tariffs on Canada, Mexico, and China are due to take effect, adding complexity to the economic landscape. The stock market showed mixed results last week, with the Dow Jones slightly up, while the Nasdaq, heavily influenced by tech stocks, saw a significant decline. Nvidia's earnings reflected strong AI investment, yet its stock price dropped due to unmet high expectations. The market's risk-off sentiment was also evident in the sharp drop of Bitcoin. As March begins, investors face uncertainties with looming tariff deadlines, the Federal Reserve's upcoming meeting, and ongoing concerns about economic growth.
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President Donald Trump is employing tariffs as a key instrument to overhaul U.S. trade policy, affecting relations with major trade partners. He has threatened to impose 25% tariffs on Canada and Mexico, with some ambiguity around the exact rate and timing. These tariffs are part of a broader strategy that includes duties on steel and aluminum imports from around the world, set to take effect on March 12, and potential reciprocal tariffs on various nations by April. Trump's actions have already led to retaliatory measures from China, which is considering targeting U.S. agricultural products in response to additional tariffs. The European Union also faces potential tariffs, with Trump criticizing the bloc for taking advantage of the U.S. The trade tensions could push up inflation, impacting consumer prices and possibly influencing the Federal Reserve's interest rate policies. This aggressive trade stance has raised concerns about its economic implications, including the potential for a recession, as warned by former Trump adviser Anthony Scaramucci.
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President Donald Trump's recent announcement of a U.S. strategic reserve for cryptocurrencies has significantly impacted the digital asset market. The reserve would include major cryptocurrencies like bitcoin, ether, XRP, solana, and ada, leading to a sharp increase in their values. This move reversed a recent downturn in the crypto market, with bitcoin, for instance, jumping from a low of approximately $78,000 to over $94,000. Despite this surge, bitcoin's price remains below its peak of over $109,000 from Trump's inauguration day. Trump's engagement with the crypto sector extends beyond this reserve; his administration has launched meme coins and is planning a bitcoin ETF. The strategic reserve aims to bolster the crypto industry, which Trump claims has been under attack by the previous administration. However, the specifics of how this reserve would function, including potential legislative requirements, remain uncertain. Further details might be revealed at an upcoming crypto summit where Trump is scheduled to speak.
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Cathie Wood, a prominent Tesla bull, continues to support the electric vehicle maker despite its challenging February performance. She anticipates a surge in Tesla's valuation due to the rollout of robotaxis, which she believes will be safer than human drivers by the fourth quarter. However, Tesla's stock has seen a significant decline, down 27% year to date, and was the worst performer among the "Magnificent Seven" stocks. The company faced a 33% sales drop in both China and Australia in January, reflecting broader market concerns possibly exacerbated by Elon Musk's political affiliations. Additionally, Tesla is grappling with increased competition from other EV manufacturers and a noticeable shift towards hybrid vehicles. The situation is further complicated by new tariffs on steel and aluminum, which could raise production costs, and ongoing trade tensions with China, a key supplier for Tesla's battery materials. Despite these challenges, Wood's long-term vision for Tesla remains bullish, predicting a stock price of $2,600 by 2029.
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Chip designers Nvidia and Broadcom are currently testing Intel's advanced 18A manufacturing process, indicating a potential shift in their manufacturing strategies. These tests, which have not been previously reported, could lead to significant contracts for Intel, providing a much-needed boost to its struggling contract manufacturing business. Intel's stock saw a 5% increase in premarket trading following the news. However, the process is not without its challenges; Intel has faced delays in qualifying crucial intellectual property for the 18A process, pushing back the timeline for potential customers to mid-2026. This delay could impact Intel's ability to attract new business and generate revenue from its foundry segment, which is currently dominated by its own chip production. The tests by Nvidia and Broadcom are part of a broader industry trend where companies are looking to diversify their manufacturing options, especially in light of geopolitical tensions and the desire to reduce reliance on foreign manufacturing. Despite these efforts, Intel's foundry business remains under scrutiny, with its revenue expected to remain low until at least 2027.
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Goldman Sachs strategists have expressed skepticism about the sustainability of any rebound in the S&P 500 Index, attributing it to ongoing concerns about the US economy. Despite a brief recovery, the index has not shown enough investor exposure to suggest a significant tactical upside. David Kostin, a strategist at Goldman Sachs, has lowered his full-year earnings growth estimate from 11% to 9%, indicating that a substantial improvement in the US economic growth outlook is necessary to reverse the recent market downturn. This cautious outlook comes amidst worries about high valuations for tech giants and uncertainties regarding President Trump's economic policies potentially fueling inflation and slowing economic growth. Additionally, Scott Rubner, another strategist from Goldman Sachs, has turned bearish, citing insufficient demand to sustain a market rebound. Meanwhile, Morgan Stanley's Michael Wilson, previously bearish, now suggests that equities are more sensitive to economic growth than to bond yield pullbacks.
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Kroger announced the unexpected resignation of CEO Rodney McMullen on Monday, following a board investigation into his personal conduct which was found to be inconsistent with the company's business ethics policy. The investigation began on February 21 after the board was alerted to certain behaviors by McMullen. Despite the personal nature of the issue, it did not involve any Kroger associates or affect the company's financial performance or operations. Kroger's stock saw a 1% drop before the market opened, indicating immediate market reaction. The company has named Ronald Sargent, the lead director, as interim CEO, and a search for a new CEO is underway. McMullen, who had been with Kroger since 1978 and served as CEO for over a decade, will not receive a bonus for 2024. This leadership change comes shortly after Kroger terminated its $25 billion merger plan with Albertsons, which had led to legal action from Albertsons.
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Tesla Inc. experienced a significant decline in sales across Scandinavia in February, with registration data showing a sharp decrease in Norway, Sweden, and Denmark. This downturn comes amidst CEO Elon Musk's controversial political engagements, which have sparked "Tesla Takedown" protests in the U.S. and calls for boycotts in other regions. Despite the growing demand for electric vehicles in these countries, Tesla's market share has notably slipped, particularly in Norway where its share of car sales has dropped from 20% in 2023 to 8.8% year-to-date. The company's challenges are compounded by an aging product lineup, although it plans to introduce an upgraded Model Y in Europe. This new model could be pivotal in regaining market share, but there's uncertainty about whether Tesla can recapture its former dominance due to the current unrest surrounding the brand and its CEO. The impact of these developments on Tesla's sales and brand loyalty will likely become clearer in the coming months as new models are introduced and market reactions are observed.
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A contentious budget strategy is being considered in Congress that could enable the permanent extension of Donald Trump's 2017 tax cuts while also accommodating additional tax reductions promised during his campaign. This strategy involves using a "current policy baseline" to make the cost of extending these tax cuts appear as zero, thereby masking the true financial impact. Critics, including fiscal hawks, argue that this approach is a deceptive accounting trick that could add between $3.4 trillion to $4.6 trillion to the national debt over the next decade. Despite the controversy, key political figures like House Speaker Mike Johnson are showing support for the maneuver, which could also fund Trump's proposals like eliminating taxes on tips and reducing corporate tax rates. The debate highlights the tension between tax policy and fiscal responsibility, with potential implications for future budget negotiations and the national debt.
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In the aftermath of the 2024 election, where Americans voted against the Biden economy, Donald Trump's presidency has not brought the economic salvation many hoped for. Despite Trump's assertions of increased confidence, consumer confidence has actually decreased, with the Conference Board's index reaching its lowest since June of the previous year. The investor class is also feeling pessimistic, with the S&P 500 dipping due to Trump's tariff threats and plans to dismantle parts of the federal government. Economic indicators are flashing warning signs, with unemployment claims rising, consumer spending dropping, and forecasts predicting a potential GDP decline. Amidst these economic woes, Trump's approval ratings on handling the economy are souring, with his policies, particularly tariffs, contributing to negative consumer sentiment. The situation is critical for Trump, who needs to demonstrate economic improvement to regain public trust, especially as his approval ratings are falling faster than Biden's did at the start of his term.
