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Senator Elizabeth Warren, alongside 15 Democratic lawmakers, has renewed a push for the Federal Trade Commission to investigate whether President Trump’s trade policies are leading to "tariff-enabled price-gouging." In a letter shared with Yahoo Finance, they cite anecdotal evidence from a Federal Reserve Bank of New York survey suggesting that some companies are raising prices on goods unaffected by tariffs, potentially exploiting the current economic climate, while also passing on actual tariff costs to consumers. This follows an unanswered May letter raising similar concerns. The Democrats emphasize the political weight of consumer price impacts, despite Trump’s assertions that foreign nations should bear tariff costs and his administration’s claims of declining imported goods prices. Surveys from the Institute for Supply Management and the New York Fed reveal mixed business responses, with some firms admitting to opportunistic price hikes. While Federal Reserve Governor Christopher Waller acknowledges isolated instances of gouging, he doubts it will significantly fuel inflation beyond direct tariff effects. Historical examples, like the 2019 tariff on washing machines inflating dryer prices, underscore unpredictable outcomes. With consumer effects from Trump’s trade plans under scrutiny, and Trump himself monitoring for price increases at companies like Walmart, the issue remains a focal point. The lawmakers, including prominent House and Senate Democrats, await a response from the Trump-appointed FTC Chair Andrew Ferguson, as the debate over tariffs and pricing continues to shape economic discourse.
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Tesla (TSLA) faces significant challenges as it approaches its Q2 2025 earnings report, with stock down 18% year to date amid a rocky relationship between CEO Elon Musk and President Trump, impacting late-2024 optimism. The core auto business, Tesla’s primary revenue source, is under pressure with expected Q2 revenue of $22.79 billion, a 9% drop, and a 13.5% decline in global deliveries. Regional weaknesses, competition, and consumer shifts to hybrids add to concerns. Meanwhile, Musk’s focus on robotaxis offers hope, with testing expanding in Austin, though Tesla trails competitors like Waymo and Uber. Investors are eager for updates on a cheaper EV, promised at around $30,000, but delays to Q4 2025 seem likely, potentially disappointing stakeholders. Additionally, tariffs on foreign cars, Musk’s political reputational hit, and the possibility of a future share sale to fund autonomous vehicle and AI initiatives further cloud Tesla’s outlook. As the S&P 500 and Nasdaq hit new highs, Tesla’s earnings call will be critical for insights into its struggling auto segment, robotaxi plans, and new vehicle timelines.
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South Korea's Financial Supervisory Service (FSS) has reportedly issued informal warnings to local asset managers, urging them to limit exposure to cryptocurrency exchange-traded funds (ETFs) and U.S.-listed digital asset firms such as Coinbase (COIN) and Michael Saylor's Strategy (MSTR). According to the Korean Herald, this directive aligns with the FSS's 2017 policy, which bans regulated financial institutions from holding or purchasing equity in digital assets. This development seems to mark a shift from earlier indications that South Korea might relax crypto trading rules, instead reinforcing a cautious stance. An FSS official noted that despite changing regulatory environments in both the U.S. and South Korea, firms must adhere to existing guidelines. The FSS was unavailable for immediate comment on the matter. This move highlights South Korea's ongoing regulatory scrutiny of cryptocurrency investments, reflecting a broader tension between innovation in digital assets and the need for financial stability and compliance within traditional financial systems.
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PayPal has unveiled PayPal World, a groundbreaking platform aimed at revolutionizing cross-border commerce by uniting major global payment systems and digital wallets. Announced on Wednesday, the initiative partners with entities like India’s NPCI (UPI), China’s Tenpay Global (Weixin/WeChat), and Latin America’s Mercado Pago, alongside PayPal and Venmo, targeting over two billion users worldwide. The platform simplifies international transactions, allowing users to pay via local wallets, such as using PayPal on Weixin in China or UPI for U.S. purchases. PayPal’s CEO, Alex Chriss, highlighted its potential as a game-changer in addressing the complexities of global money movement. Set to launch this fall, PayPal World will enable seamless payments for non-PayPal users as well, with plans to expand Venmo’s merchant payment capabilities by 2026. This ecosystem promises to bridge massive transaction volumes, exemplified by Mercado Pago’s $58.3 billion in Q1 2025 and India’s UPI hitting $238 billion in June alone, marking a significant step toward frictionless global payments.
