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Member Briefing May 29, 2025

May 29, 2025

Posted By: Harold King in Daily Briefing,

Top Story

Trade Court Strikes Down Trump’s ‘Liberation Day’ Tariffs

A federal trade court ruled President Trump didn’t have the authority to impose sweeping tariffs on virtually every nation, voiding the levies that have sparked a global trade war and threatened to upend the world economy. The decision on Wednesday from the Court of International Trade blocked one of the Trump administration’s most audacious assertions of executive power, under the International Emergency Economic Powers Act of 1977. “The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder,” a three-judge panel wrote.

The suit was brought on behalf of five U.S. businesses that rely on imports to some extent. The judges said that Trump’s tariff orders were “unlawful as to all,” not just those plaintiffs’ companies, so there would be “no question here of narrowly tailored relief.” The judges ordered the challenged tariffs to be “vacated and their operation permanently enjoined.” Trump is all but certain to appeal, but the ruling by the U.S. Court of International Trade brings the plan that sparked a halt.

Read more at Yahoo

GM To Invest $888 Million For Engine Production At New York Facility

General Motors is investing $888 million at a New York propulsion plant to increase engine production and build a next-generation V8, the company said on Tuesday. The investment at the Tonawanda propulsion plant in Buffalo, New York, first reported by Reuters, is a shift from a previously announced $300 million commitment to make electric-vehicle drive units at the plant. The move is likely another sign of automakers adapting to slower-than-expected market demand for EVs and comes after the Detroit automaker aggressively lobbied Congress to rescind California electric-vehicle rules.

GM said the investment will support the sixth generation of GM’s V-8 engines, used in full-size trucks and SUVs expected to be more fuel-efficient. New York Governor Kathy Hochul said the project will support 870 jobs at Tonawanda Propulsion, including 177 jobs deemed at risk. The state plans to provide up to $16.96 million in tax credits in return for investment commitments. New York said last week it would pause penalties associated with any shortfalls of EV sales for two years.

Read more at Reuters

BofA Survey: US Home Buyers Hesitate As Mortgage Rates Climb

The US housing market is taking a breather as Bank of America notes that rising mortgage rates are fueling uncertainty among potential home buyers, hitting a peak not seen since 2023. Bank of America's latest survey reveals that 60% of respondents are unsure about purchasing a home now, up from 57% last year and 48% in 2023. This jump in uncertainty is fueled by climbing mortgage rates, spurred by volatile interest rates and high home prices, which have cooled the typical spring buying spree.

Earlier this year saw a surge in mortgage applications, thanks to increased home inventory and lower bond yields. But as the 10-year US Treasury note yield rises—tied to economic policy concerns—mortgage rates are following suit. While 52% of potential buyers still believe the market is better than last year, they're hesitating, hoping for declines in home prices and interest rates. Many potential buyers are on standby for falling home prices and rates, echoing trends from 2023. With mortgage rates in the 6% to 7% range becoming the 'new normal,' this adjustment period could prolong as buyers look for better deals, impacting market liquidity and home sales.

Read more at Finimize

Global Headlines

Middle East

Ukraine

Other Headlines

Policy and Politics

White House To Send DOGE Cuts Package To Congress As Speaker Promises Quick Action

The Trump administration will send Congress a package to claw back $9.4 billion in funding next week, an Office of Management and Budget spokesperson confirmed to The Hill, as Speaker Mike Johnson (R-La.) pledges to “act quickly” on codifying cuts spearheaded by the Department of Government Efficiency (DOGE). The package will in part target the Corporation for Public Broadcasting, which funds NPR and PBS, and USAID, which was largely dismantled by the administration earlier this year.

Plans for the roughly $9 billion recissions package were forecasted weeks ago and originally projected to be transmitted from the White House by the end of April. But that was delayed as the House completed crafting the “One Big Beautiful Bill” of Trump priorities on tax cuts and defense and border spending. “When the White House sends its rescissions package to the House, we will act quickly by passing legislation to codify the cuts,” Johnson added, saying that Congress would also use the regular appropriations process to implement Trump’s 2026 budget.

Read more at The Hill

Soaring Bond Yields Threaten Trouble

It is no wonder that investors are reassessing the risk of long-term lending to Uncle Sam. Even before the budget bill cuts tax revenues, America’s government has borrowed $2trn (or 6.9% of GDP) over the past year. That has put the once-unquestionable haven status of Treasuries up for debate. But for money-managers looking to diversify, there is another headache. The debt of other governments looks newly risky, too, with long-term yields rising across much of the rich world. Britain’s 30-year borrowing cost has hit 5.5%, its highest since 1998, aside from a spike in April. Germany’s, at 3.1%, is within touching distance of its dearest since the euro zone’s debt crisis in the early 2010s. In intraday trading on May 21st, the yield on Japanese 30-year government bonds rose to nearly 3.2%, setting a new record.

In part, all this is because what happens in America does not stay in America. The country’s economy is so big, accounting for 26% of the world’s output, that its outsize government deficit tilts the balance of savings and investment globally, raising the cost of capital. Higher returns on Treasuries might also lead traders to prefer them to other sovereign debt unless it, too, yields more. Meanwhile, it is hardly just America’s economy that Mr Trump’s policies threaten. Uncertainty over tariffs, for example, muddies the outlook for inflation and growth everywhere, prompting investors to demand a higher risk premium. Some might also conclude that politicians in other countries will be tempted to imitate America’s profligacy.

Read more at the Economist

SUNY launches Regional Internship Coordinators Network

SUNY Chancellor John King Jr. has unveiled a new statewide effort aimed at boosting student access to paid and college credit internships. It’s called the Regional Internship Coordinators Network. “We set a goal to have every SUNY undergraduate have an internship experience, and we’ve been able to put some significant state resources behind that because of the level of state support we’ve gotten over the last three budgets,” King said.

The initiative places coordinators in different regions to work directly with business, identifying internship openings for students. “We also are going to launch an effort to work with chambers of commerce and regional business councils to get them to provide a bit of an intermediary role to help small businesses and midsize businesses take interns,” King added.

Read more at Mid-Hudson News

Political Headlines

Health and Wellness

Survey: 36% Of Employers Now Cover GLP-1s For Weight Loss & Diabetes

More than one-third (36%) of employers now provide coverage of GLP-1 drugs for both weight loss and diabetes, a new survey from the International Foundation of Employee Benefit Plans found. The number that offer coverage for diabetes only has declined to 55% from 57% last year. These results reflect both the surging popularity of GLP-1 for weight loss and the challenge of balancing health benefits with the high cost of treatment. The average representation of GLP-1 drugs used for weight loss in total annual claims was 10.5% for 2025, an increase over the 2024 average of 8.9% and the 2023 average of 6.9%. Twenty-seven percent of employers reported that GLP-1 drug costs account for more than 15% of their annual claims.

Sixty-eight percent of employers who cover GLP-1 drugs rely heavily on eligibility requirements as a cost-control measure. The most prevalent requirements include minimum body mass index, (88%); obesity, with one other chronic disease (60%); obesity and type 2 diabetes, (34%); obesity, with two or more other chronic diseases (24%); nutrition and dietary requirements (24%); and physical activity requirements (9%).

Read more at Benefits Pro

Industry News

Trade War Updates

Boeing, DOJ Reach $1.1B Deal To Drop Plane Crash Criminal Charges

Boeing and the Department of Justice last week reached a $1.1 billion settlement agreement that will keep the aircraft maker from facing criminal charges related to two fatal plane crashes involving its 737 Max aircraft that killed 346, according to court filings. As part of the deal, the funds would go toward paying a criminal penalty, the victims’ beneficiaries fund and improving the manufacturer’s compliance, safety, and quality programs. Boeing has agreed to withdraw its guilty plea and admit to conspiracy to obstruct and impede the Federal Aviation Administration’s aircraft evaluation of the company’s operations.

Boeing reached a settlement about a month before the company was set for a trial by jury on June 23. The Justice Department is expected to file a motion to dismiss the claim after the federal judge finalizes and the parties sign the agreement, according to the court filings. The DOJ said in the court filings that it met with the victims’ families earlier this month to discuss the pending agreement before making it final. Some families are for it and want closure, the agency said. But the majority of the families are against it, saying the DOJ is not working in the public’s interest, according to a court notice filed by their attorneys last week.

Read more at Manufacturing Dive

Nvidia Sales Soar on Surging Demand for AI Chips

Nvidia NVDA -0.51%decrease; red down pointing triangle reported $44.06 billion in revenue for its fiscal first quarter, which accounted for the inability to ship $2.5 billion of chips to the Chinese market. Total revenue is up 69% from the $26.04 billion for the same period last year and slightly ahead of Wall Street’s consensus target of $43.34 billion in revenue for the April-ending quarter. More crucially, the company’s data-center business, which includes chips and other components used in AI computing systems, saw revenue surge 73% year-over-year to $39.1 billion. That was just below the $39.36 billion expected by analysts, according to FactSet estimates.

For the current quarter, Nvidia projected revenue of $45 billion, plus or minus 2%, compared with analyst views for $45.92 billion. The company said this includes $8 billion in lost revenue due to the China chip ban. The company showed off an ambitious slate of coming products at its annual GTC conference in March, including updated versions of its Blackwell chips that are in particularly high demand by companies trying to build up state-of-the-art AI networks. Analysts expect the Blackwell lineup alone to generate nearly $98 billion in sales in the current fiscal year ending in January and a further $119 billion next year, according to consensus estimates from Visible Alpha.

Read more at The WSJ

Other Earnings of Note

Macy’s sales and profit slipped in its first quarter and the department store, citing more cautious customers and the impact that the U.S. trade war will have on the company and its shoppers, trimmed its profit forecast for 2025. However, the New York retailer topped most performance expectations for the first three months of the year and maintained its sales forecast for the year. Comparable sales, which include online channels, dipped 2%. Sales dropped to $4.79 billion from $5 billion a year earlier, better than the $4.42 billion that analysts polled by FactSet expected. Macy’s earned $38 million, or 13 cents per share. That compares with $62 million, or 22 cents per share, a year ago. - ABC

Dick’s Sporting Goods said Wednesday it’s standing by its full-year guidance, which includes the expected impact from all tariffs currently in effect. The sporting goods giant said it’s expecting earnings per share to be between $13.80 and $14.40 in fiscal 2025 — in line with the $14.29 that analysts had expected, according to LSEG. It’s projecting revenue to be between $13.6 billion and $13.9 billion, which is also in line with expectations of $13.9 billion, according to LSEG. Earnings per share were $3.37 adjusted and revenue was $3.17 billion. The company’s reported net income for the three-month period that ended May 3 was $264 million, or $3.24 per share, compared with $275 million, or $3.30 per share, a year earlier. - CNBC

Read more at Automotive Dive

Empire State Development Launches 2025 Regional Economic Development Council Initiative

Last week, Governor Kathy Hochul announced the launch of the 2025 Regional Economic Development Council Initiative (REDC). Since 2011, the REDC has been the cornerstone of a bottom-up approach to economic development that allows the State's 10 Regional Councils to support projects that advance strategic regional and statewide priorities. Up to $60 million in Regional Council Capital Funds will be made available in the 2025 Consolidated Funding Application (CFA) to facilitate projects that advance each region’s strategic plan and state priorities.

The Consolidated Funding Application (CFA) portal is now open for the 2025 programs. For programs subject to the deadline, applications must be submitted by Thursday, July 31 at 4 p.m. Open enrollment programs are not subject to the July 31 deadline and will continue to accept applications on an ongoing basis until funds are exhausted. The 2025 REDC Guidebook, the 2025 Resources Available, and other key documents are available here. CFA Workshops will be held throughout the State for applicants to attend and learn about programs offered through the REDC initiative and other State programs. A full schedule of workshops can be found here.

Read the Governor’s Press Release

Amazon Seeks IDA Incentives For 3.2 Million SF Fulfillment Center In Orange County

Developers of a proposed 3.2 million square foot Amazon fulfillment center in the Town of Wawayanda are seeking Orange County Industrial Development Agency incentives to construct the $607 million facility. IDA Executive Director Bill Fioravanti said they are seeking two inducements. “They are seeking sales tax exemption and a 20-year PILOT.”

“It will create at least 750 jobs – I understand that is a conservative number – and 300 construction jobs,” Fiorvanti said. This is one of a handful of distribution centers being proposed in the Town of Wawayanda.

Read more at Mid-Hudson

Stellantis Appoints North American Operating Officer Antonio Filosa As New CEO

Auto giant Stellantis on Wednesday appointed North American chief operating officer Antonio Filosa as its new chief executive, ending a months-long campaign to fill the firm’s leadership void. The multinational conglomerate, which owns household names including Jeep, Dodge, Fiat, Chrysler and Peugeot, said it would hold an extraordinary shareholder meeting in the coming days for Filosa to be elected to the board to serve as an executive director.

Stellantis said Filosa would assume CEO powers effective from June 23. He will succeed Carlos Tavares, who unexpectedly resigned in December after a sharp drop in profit, falling sales and problems in the U.S. A 25-year veteran of the company, Filosa previously served as Jeep brand CEO before being named North America COO in October 2024 and as chief quality officer in January this year.

Read more at CNBC

Nissan Offers Buyouts To US Workers, Halts Global Pay Rises, Internal Emails Show

Japan's Nissan has started offering buyouts to U.S. workers and has suspended merit-based wage increases worldwide, internal emails reviewed by Reuters showed, as the automaker expands cost cuts amid weak performance in key markets. CEO Ivan Espinosa announced a new round of cost cuts this month that include closing seven production sites globally and cutting 11,000 more jobs, taking its total planned workforce reduction to around 20,000.

As part of the cuts, Nissan has offered separation packages to workers at its Canton plant in Mississippi as well as to salaried workers in human resources, planning, information technology and finance, showed one email sent last week. The automaker said in a statement that Nissan North America is offering a voluntary separation program to a limited group of U.S. salaried employees. It declined to give more details as the process is ongoing.

Read more at Reuters

SpaceX’s Spacecraft Makes It to Space, but Then Tumbles

SpaceX launched the latest flight test for its Starship vehicle at around 7:30 p.m. ET Tuesday but fell short of carrying out planned experiments. The company had looked to complete a fuller mission than in the previous two flight tests conducted this year. Both of them ended in abrupt explosions of Starship spacecraft, the debris briefly halting flights in parts of the Caribbean. On Tuesday’s mission, the spacecraft flew much farther and was able to make it into space. There, it ran into problems. It wasn’t able to deploy satellite simulators out of a door, an operation designed to help advance the vehicle toward one day deploying SpaceX Starlink satellites.

SpaceX has been developing Starship for years and has now conducted nine flight tests of the vehicle. The National Aeronautics and Space Administration is depending on a variant of Starship to be ready to transport astronauts during a moon operation in a couple of years, and the vehicle is essential to Musk’s long-held dream of sending people to Mars. The flight Tuesday began smoothly, as SpaceX launched the Starship spacecraft on a previously used booster rocket for the first time. It planned to let the booster land in the Gulf of Mexico, which the U.S. now calls the Gulf of America, instead of trying to catch it.

Read more at WSJ

Airbus Warns Airlines That Delays Will Last Three Years, Sources Say

Airbus is warning airlines that delays in deliveries will persist for another three years as it works through a backlog of supply chain problems, industry sources said. The cautious tone on deliveries was reinforced at a recent customer gathering in Toulouse and increases pressure on Airbus to demonstrate progress towards a goal of increasing production of its main model to 75 jets a month, they added.

"Airbus is talking about delays to aircraft in both 2027 and 2028," a senior airline executive said, adding the delays were being communicated in piecemeal fashion every few months. Another source said aircraft due for delivery later this decade had already been pencilled in for a six-month delay. "We are working together with suppliers to mitigate the impact of the current situation on our customers," an Airbus spokesperson said.

Read more at Yahoo Finance

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