Become more informed in minutes...

The U.S. Senate approved a Republican bill early this morning that aligns with President Donald Trump's immigration, energy, and defense policies, despite his preference for a more extensive House version that includes $4.5tn in tax cuts. The Senate's resolution, which passed 52-48, emphasizes increased defense spending and stricter immigration measures while promoting fossil fuel development. The legislation, which leaves the issue of Mr. Trump's desired extension of his 2017 tax cuts to a later date, will serve as a backup in case House Republicans cannot come to an agreement on how to pay for the tax cuts in their bill without slashing funding for popular safety net programs like Medicaid and Social Security. Senate Budget Chair Lindsey Graham stated: "I hope we can get one big, beautiful bill in the House, but we need to act on border security and national security now." The Senate's $340bn budget resolution allocates an additional $85bn annually for four years to enhance border security and military spending, while the House plan seeks to cover costs through $2tn in spending cuts.  Both chambers must agree on a budget to enable Republicans to advance Trump's legislative agenda.

 

Fox News

New York Times

Politico

Reuters

Airbus is poised to finalize a deal to acquire certain European operations of Spirit AeroSystems, the aerospace giant's CFO Thomas Toepfer has said. "We're making good progress. I think it would be realistic to expect that this will happen in the next weeks," Toepfer noted. The negotiations have faced challenges, particularly regarding the division of intellectual property and the future of a Spirit Aero plant in Northern Ireland. Boeing has said it would buy back its former subsidiary Spirit Aero, which is a critical supplier to Boeing, for $4.7bn in stock.

 

U.S. News

Tapestry has announced the sale of its Stuart Weitzman brand to Caleres, whose portfolio includes Dr Scholl's footwear, Allen Edmonds, and Naturalizer, for $105m in cash. The decision follows Tapestry's recent abandonment of a merger with Capri, the parent company of Michael Kors, due to legal challenges. The transaction is expected to finalize in the summer of 2025. Tapestry has seen strong demand for its Coach brand, particularly the Tabby handbags, while Stuart Weitzman and Kate Spade have not performed as well. "Stuart Weitzman will be a lead brand for Caleres, and with this combination the brand portfolio segment will generate nearly half of our total revenue and will continue to generate over half of our operating profit", said Caleres chief executive Jay Schmidt, who added that the brand is expected to operate profitably following its integration into the company.

 

Reuters

Wall Street Journal

F21 OpCo, the U.S.-based operator of Forever 21, is reportedly preparing to close at least 200 locations as part of an impending bankruptcy process, according to Bloomberg. The retailer is also seeking a buyer for its remaining stores, but if no suitable buyer is found, it may liquidate its entire chain of approximately 350 stores. The Forever 21 trademark is owned by Authentic Brands, which licenses it to Catalyst Brands, currently undergoing Chapter 11 proceedings. Authentic Brands' ownership of the Forever 21 brand would remain intact through any bankruptcy process, Bloomberg noted. Regardless of the outcome, Authentic Brands plans to license Forever 21 to other retailers.

 

USA Today

Bloomberg

CNBC

Reuters

A federal judge has allowed parts of a lawsuit against UnitedHealthcare to proceed, in which plaintiffs claim the insurer used a faulty artificial intelligence (AI) program to deny necessary post-acute care for Medicare patients. Judge John Tunheim of the U.S. District Court of Minnesota ruled that while most arguments were preempted by federal law, two claims — breach of contract and breach of the implied covenant of good faith — can continue. The lawsuit, filed in November 2023, alleges that UnitedHealthcare's AI tool, naviHealth, led to wrongful coverage denials, forcing patients to incur significant out-of-pocket expenses. UnitedHealthcare says the lawsuit is based on “unfounded allegations” and insists medical directors make decisions, not AI. “Our number one priority is to ensure patients are receiving the care they need,” UnitedHealthcare said in a statement.

 

The Columbian

Minnesota Star-Tribune

Mondelēz International chief executive Dirk van de Put says the company will face increased costs due to the Make America Healthy Again initiative led by U.S. Health Secretary Robert F. Kennedy Jr. The movement may require Mondelēz to reformulate popular products like Ritz crackers and Chips Ahoy cookies, potentially leading to price hikes for consumers. Van de Put said "It's work that needs to be done," indicating that these changes will ultimately affect prices at stores. U.S. consumers are already experiencing significant food inflation, and the CEO warned that chocolate prices could rise by 30% to 50% due to supply issues in Africa. He said: "I do expect it will take us a few years to work our way through this."

 

US News and World Report

Citigroup chief executive Jane Fraser has said that the bank will no longer require a diverse pool of candidates for job interviews, and it will only maintain "aspirational representation goals" where mandated by local law. Meanwhile, Citigroup's Diversity, Equity and Inclusion and Talent Management team will be rebranded as Talent Management and Engagement. "It is important to note that we're living in an environment where things are changing quickly," Ms. Fraser wrote, adding that the bank will still encourage "the best practice of having a variety of perspectives included in hiring decisions."

 

Reuters

The Consumer Financial Protection Bureau (CFPB) has seen its signage removed from its Washington, D.C. headquarters, marking a significant move by the Trump administration in its efforts to dismantle the agency. The CFPB, established after the 2008 financial crisis, has faced increasing scrutiny and opposition from conservatives. Mark Calabria, a former housing official and adviser, has been temporarily detailed to the agency, while President Donald Trump's executive order has led to the termination of two advisory councils. Under a recent court order, CFPB's leadership committed to halting mass layoffs and preserving its data collections.

 

Reuters

The Conference Board reported Thursday that its Leading Economic Index (LEI) slipped 0.3% in January to 101.5, erasing almost all the gains made in the last two months. The consensus among analysts was for the LEI to be unchanged last month. For the six months ended January 2025, the LEI fell 0.9%. The Coincident Economic Index rose 0.3% to 114.3 in January from 114.0 in December (revised from 114.1), while the Lagging Economic Index climbed to 119.3 from 118.7. "Consumers' assessments of future business conditions turned more pessimistic in January, which — alongside fewer weekly hours worked in manufacturing — drove the monthly decline," commented Justyna Zabinska-La Monica, senior manager of Business Cycle Indicators at The Conference Board. "However, manufacturing orders have almost stabilized after weighing heavily on the Index since 2022, and the yield spread contributed positively for the first time since November 2022."

 

MSN

RTT News

US News and World Report

The Federal Reserve Bank of Philadelphia's diffusion index for current general activity declined to 18.1 in February from 44.3 in January, but remaining in growth territory. Economists had expected the index to slump to 20. The new orders index plummeted from 42.9 in January to 21.9, while the shipments index dropped from 41 to 26.3. Despite the significant decreases, the Philly Fed noted the indicators for current general activity, new orders and shipments remain elevated.

 

Nasdaq

Slightly more Americans applied for jobless benefits last week, with claims rising by 5,000 to 219,000 in the seven days to February 15th, according to the Labor Department. Economists polled by Reuters had forecast 215,000 claims for the latest week. Despite this increase, layoffs remain in a healthy range, with the four-week average dropping 1,000 to 215,250. The total number of Americans receiving unemployment benefits, reported with a one-week lag, rose 24,000 to 1.87m. Government job cuts ordered by the Department of Government Efficiency, including around 7,000 in the IRS, are yet to be reflected in the data. "The current round of unprecedented belt-tightening and budget cuts and layoffs in Washington have not become a reality in terms of showing up in the national statistics," said Christopher Rupkey, chief economist at FWDBONDS. "But actions taken in the early days of the new administration may yet bring about a broader economic slowdown and is frankly a risk factor that economists did not see at the start of the year."

 

Bloomberg

Market Watch

Reuters

US News and World Report

Chipotle Mexican Grill plans to hire 20,000 additional employees for "burrito season," as the period from March to May has become known. The company, which operates over 3,700 restaurants in the U.S., last year hired 19,000 additional workers, both full-time and part-time, to deal with increased footfall in its busiest period of the year.

 

USA Today

Tesla has announced job openings for 13 positions in India, including roles in consumer engagement and store management, according to the company's LinkedIn page. The announcement follows Indian Prime Minister Narendra Modi's recent meeting with Elon Musk, where they discussed "space, mobility, technology and innovation." Most positions are based in Mumbai, with some available in New Delhi. The electric car company's renewed interest in India comes after the government reduced taxes on high-end electric vehicles, which may alleviate previous concerns over high import duties. Despite only 100,000 electric vehicles sold in India last year, compared to 11m in China, there is a growing interest in EVs. Musk has previously indicated that high tariffs hindered Tesla's plans, but he says he is exploring opportunities in the Indian market, including potential manufacturing and the launch of Starlink.

 

TimesofOman