Aurelia Butler

LAS VEGAS (Reuters) -President Donald Trump capped a frenzied first week back in office with a stop in Las Vegas on Saturday to talk about cutting taxes on tips, a 2024 campaign promise he made in the gambling and hospitality hub.Trump took the stage before cheering supporters at the Circa Resort and Casino (EPA:CASP) in front of a large banner reading “No Tax on Tips” and said economic confidence was soaring in the United States.”America’s decline is over,” he said at the start of his remarks, echoing themes from his inauguration remarks earlier in the week.Since taking office on Monday, the new Republican president reversed a myriad of policies put in place by Democratic predecessor Joe Biden and moved to fulfill his vow of remaking and shrinking the federal bureaucracy.In visits on Friday to disaster areas in North Carolina and California, Trump pledged federal aid to help those states recover from hurricane and wildfires after floating an idea to shutter the Federal Emergency Management Agency.In Las Vegas, Trump doubled down on a less controversial proposal: his pledge to end taxation of income from tips, a proposal he first made in June as he courted service workers in the presidential swing state of Nevada. The tip-heavy hospitality industry comprises more than a fifth of all jobs in the state. “Your tips will be 100 percent yours,” Trump said, joking that he would go after the same workers for not reporting their tipped income over the last 10 years.Trump said that a “young beautiful waitress” had given him the idea for the policy proposal and joked that that was the extent of his research on the issue.His Democratic opponent in 2024, former Vice President Kamala Harris, also pledged to do away with taxes on tips, following in Trump’s footsteps. Her campaign said the proposal would require legislation by Congress. Trump won the state.Michael McDonald, Nevada Republican Party chairman, said the idea is attractive to people in the state who are facing high prices for essential goods like food and gas.”He cares about the no tax on tips, no tax on Social Security. That was something that we brought to the community, and everybody loved it because we’re all hurting,” McDonald told local television after welcoming Trump on Friday night.The proposals Trump made on the campaign trail – from extending his 2017 tax cuts to abolishing tax on tips, overtime and Social Security benefits – could add $7.5 trillion to the nation’s debt over the next decade, according to the nonpartisan Committee for a Responsible Federal Budget.Trump is pushing a plan to explicitly use revenue from higher tariffs on imported goods to help pay for extending trillions of dollars in tax cuts, an unprecedented shift likely to face opposition from Republican budget hawks concerned about the reliability and durability of tariff revenue.Days before he returned to office, some of his Republican allies in Congress warned that Trump’s aggressive tax-cut agenda could fall victim to signs of worry in the bond market.At a closed-door meeting on Capitol Hill, Republicans in the House of Representatives aired concerns that the estimated $4 trillion cost over the next 10 years of extending the 2017 Trump tax cuts could undermine the U.S. government’s ability to service its $36 trillion in debt, which is growing at a pace of $2 trillion a year. More

“We believe the new Treasury Secretary, Scott Bessent, plans to pursue a policy mix – which we call Bessenomics – that boosts economic growth and stabilizes the public debt-to-GDP ratio,” BCA Research said in a special report that sought to explore potential policies that Bessent may opt to implement.The policy mix, dubbed ‘Bessenomics,’ is expected to be built on three key pillars: currency depreciation instead of high import tariffs, fiscal policy calibration, and increased U.S. oil supply to deflate crude prices.Bessent may push for dollar depreciation rather than tariffs to boost U.S. manufacturing competitiveness and create industrial jobs. This approach, according to BCA, could avoid the potential destabilizing effects of tariffs on markets and the economy.Bessent may also strike a deal with the Federal Reserve to reduce interest rates substantially, provided the government and Congress cut fiscal spending. This combination of tighter fiscal and easier monetary policy has historically led to currency weakness.To prevent inflation expectations from rising and bond yields from spiking, Bessent’s strategy, BCA hypothesizes, could include cutting fiscal spending and lowering oil prices. These measures, along with “proper macro communication and our credibility, will be sufficient to bring down bond yields despite dollar weakness,” the report speculates. More

PALO ALTO, California (Reuters) -A joint venture between U.S. electric pickup and SUV maker Rivian (NASDAQ:RIVN) and Volkswagen (ETR:VOWG_p) is in talks with other automakers about supplying their software and electrical architecture, a senior Rivian executive said on Thursday.The German automaker agreed in November to invest $5.8 billion in the joint venture, which will integrate advanced electrical infrastructure and Rivian’s software technology for both companies’ future electric vehicles.While a joint venture will give Rivian higher volumes to negotiate better supplier deals and reduce costs, seen as critical amid a slowdown in EV demand, Volkswagen and potentially other traditional automakers will get quick and easy access to technology and software they have struggled to build for years.”I’d say that many other OEMs are knocking on our door,” Rivian Chief Software (ETR:SOWGn) Officer Wassym Bensaid said in an interview, referring to Original Equipment Manufacturers, a phrase used to describe vehicle makers.Bensaid, who is also co-CEO of the joint venture, declined to provide names of the interested automakers and details on what stage the talks were at. Rivian’s architecture requires fewer electronic control units and significantly less wiring, reducing vehicle weight and simplifying manufacturing. The technology is core to building cars with software that could be updated over the air like a smartphone – what the industry calls “software-defined vehicles”, an area where established automakers are still running behind.”There is demand,” said Bensaid, adding that the priority until 2027 was to roll out the R2, Rivian’s smaller, less-expensive SUV and to integrate the technology in other Volkswagen brands. “Obviously other OEMs are talking to us and we’re trying to figure out how to support that in the future.””Any other OEM who wants to make a leap from a technology standpoint, the joint venture today becomes one of the key partners with whom they can make that collaboration,” he said. The venture is likely to become the platform of choice in the Western world apart from Tesla (NASDAQ:TSLA), Canaccord Genuity analysts said in a note. The joint venture also helps alleviate “a significant chunk of the capital concern” for Rivian, the analysts said. More

“President Trump did not impose tariffs on day one. Instead, he issued a presidential memorandum entitled ‘America First Trade Policy,'” Barclays said in a note. “Investors should read the memorandum as a blueprint for what to expect next on tariffs.”The memorandum directs certain departments and agencies to review and issue reports by April 1, 2025. These reports, the analysts believe, are likely to serve as the catalysts for new tariff proposals or adjustments to current tariffs. In further support of the Apr. 1 as key date to watch, the analysts believe the timeline also provides ample time for the Senate to confirm key positions, including Howard Lutnick as Commerce Secretary and Jamieson Greer as US Trade Representative. These two roles need to be filled before the Trump administration begins to alter tariff policy, the analysts added.Following the reports due on Apr. 1, changes to tariff policy could be announced, likely taking effect 30-to 60-days later, Barclays said.  The presidential memo suggests that various tariffs could be on the table including a universal tariff and tariffs targeting China, Mexico, and Canada.Trump has, however, already threatened to impose 25% tariffs on Mexico and Canada starting Feb 1, and up to 100% tariffs on China over TikTok, but Barclays believes the timeline proposed in the memorandum carries more weight rather than these “off-the-cuff remarks.”The memorandum also calls for investigations into the causes of the U.S.’s annual trade deficits in goods and recommendations for remedies, which could include “a global supplemental tariff or other policies.”This suggests that “countries and sectors most vulnerable to targeted tariffs could be those with the largest trade deficits in goods with the US,” Barclays said. More

Each of these factors contributes to the broader economic landscape, necessitating attention from policymakers.Weak household consumption remains a central concern for the German economy. High inflation and rising living costs have significantly impacted household purchasing power, leading to reduced consumer confidence. As households tighten their budgets, the overall consumption levels decline, which further stifles economic growth. Investing.com — This environment not only affects retail and service sectors but also dampens investment sentiment, creating a cycle that limits recovery.In addition, Germany’s export performance has weakened relative to the global demand landscape. While the country has historically been a dominant player in international trade, recent data indicates a lag in its export growth compared to other nations. Factors such as supply chain disruptions, rising production costs, and shifting consumer preferences have contributed to this decline. As competitor countries capitalize on new opportunities, Germany must address its export strategies to remain competitive in a rapidly changing global market.Lastly, the issue of low potential growth looms large over Germany’s economic horizon. Structural obstacles, including an aging population and insufficient workforce growth, have hindered productivity advancements. This stagnation in potential growth limits the economy’s capacity to expand and innovate, ultimately impacting long-term sustainability. Without reforms to enhance productivity and attract talent, Germany risks falling behind its peers in Europe and the global economy. More