Become informed in minutes...

The U.S. economy experienced a robust annual growth rate of 2.4% in the last quarter of 2024, driven by a surge in consumer spending, according to the Commerce Department. This figure marks a slight upgrade from previous estimates, although it reflects a deceleration from the 3.1% growth seen in the third quarter. The government’s other main gauge of economic activity, gross domestic income, rose 4.5% after a 1.4% increase in the third quarter. Overall, the economy grew by 2.8% throughout 2024. “The fourth quarter GDP data tell us the economy entered the year with momentum and profitability and can thus withstand a degree of policy uncertainty,” Wells Fargo economists Shannon Grein and Tim Quinlan wrote in a note following the release. “That said, the concern is increasingly centered on how will businesses act in the face of trade winds leading to tremendous uncertainty this year.” A separate report from the Commerce Department found that the U.S. trade deficit in goods contracted 4.9% in February amid a rise in exports. Goods exports increased $7bn to $178.6bn last month, while imports fell $600m to $326.5bn.

 

AP News

US News and World Report

Bloomberg

Wall Street Journal

Today’s CFOs are serving as “cross functional” leaders in an age where businesses are asking for more data analysis and quicker scenario planning to keep pace with rapid change, according to Chad Hesters, chief executive of executive search firm Boyden. Finance chiefs' shift into strategic decision-making, risk management, digital transformation” or other activities has caused a ripple effect across the whole of the finance function, he said. With financial leaders being asked to provide their CEOs, boards and fellow C-suite members with key insights for decision-making, he added that “means that their teams, F&PA, controller systems, they have to be proficient in data analytics, automation tools and financial forecasting and scenario planning. Gone are the days when the controller’s organization can sit and just close the books . . . and the treasurer can just manage cash flow.” Mr. Hesters said: “But again, that means that CFOs, by default, have to have a good understanding and connect all the dots in those areas and deal with a rate of change that can be dizzying.”

 

CFO Dive

Zach Kirkhorn, Tesla's former chief financial officer, has led a $16.5m funding round in Jolly, a start-up that aims to help companies improve employee productivity through rewards. On the platform, employees can earn points by, for example, picking up extra shifts, upselling a high-margin product, adhering to safety protocols or completing a certain task on time, and then exchange them for gift cards or their employer’s apparel. All of its corporate customers are currently health care services providers, but Jolly is in the process of adding clients in other industries, including manufacturing, logistics, construction, and fast-food.

 

Wall Street Journal

Deutsche Bank has made the latest in a number of changes to its top leadership, announcing the departure of chief financial officer James von Moltke and its chief legal officer. Mr. Von Moltke will be succeeded next year by Morgan Stanley banker Raja Akram. Chief legal officer Stefan Simon will leave the bank in May for personal reasons, with his duties to be assumed by chief executive Christian Sewing, whose own contract has been extended by three years to April 2029.

 

Bloomberg

Financial Times

The Senate voted 52-48 on Thursday to overturn a Consumer Financial Protection Bureau rule capping the overdraft fees that banks can charge. The resolution under the Congressional Review Act now heads to the House, where the Financial Services Committee approved a companion bill on a 30-19 vote earlier this month. CRAs both invalidate regulations and preclude future administrations from introducing “substantially similar” proposals. The rule would have limited the fees banks and credit unions could charge when customers spend more than they have in their accounts, typically $35 per overdraft. The bureau estimated it would save American households $5bn a year. The American Bankers Association, a plaintiff in the lawsuit, praised the Senate’s action; Rob Nichols, its chief executive, said that the rule would, if implemented drive Americans "to less regulated and higher risk non-bank lenders to cover unexpected or emergency expenses." Consumer Reports advocacy program director Chuck Bell said that repealing the law "will hurt working families who are already struggling with high prices and inflation."

 

New York Times

Politico

Washington Examiner

The FASB is moving forward to simplify hedge accounting guidance, aiming to alleviate the complexities associated with forecasting losses on short-term credit. The board instructed its staff to prepare final updates based on public feedback received last year, with votes on these updates planned for future meetings. In September, FASB proposed modifications to make hedge accounting rules more user-friendly, reflecting its commitment to enhancing financial reporting standards for the private sector.

 

Bloomberg Tax

Lufthansa chief technology officer Grazia Vittadini has urged engine manufacturers, including GE Aerospace, to prioritize durability in the design of next-generation fuel-efficient engines. At a Brussels aviation policy forum, she highlighted that issues with durability have led to increased waiting times for repairs, leaving many aircraft grounded and fares rising. "Give me unlimited time on wing and I buy now," she said, reflecting the tension between fuel efficiency and maintenance needs. GE is developing the RISE technology demonstrator, aiming for 20% savings in fuel and emissions for future aircraft. However, the industry has faced criticism for inadequate maintenance planning, particularly at Pratt & Whitney, which supplies engines for Lufthansa Group.

 

U.S. News

U.S. applications for unemployment benefits held steady in the seven days to March 22nd, edging down 1,000 to 224,000, the Labor Department reported on Thursday, just below the 225,000 expected among economists polled by Reuters. The four-week moving average of claims dropped 4,750 to 224,000, while the total number of recipients of government benefits fell 25,000 to 1.86m. Recent employment data shows "two separate worlds," according to RSM U.S. economist Joe Brusuelas. “One in which firms are managing their [workforces] incredibly carefully, because we still are under conditions where labor is tight; there’s going to be constraints on labor supply, and that’s what’s contributing to the remarkable stability in overall claims,” he said. “The other world is federal government employment, where, first, there’s likely more people who are unemployed than the claims would suggest. Second, individuals are clearly beginning to hedge their bets around employment and are actively seeking work.”

 

ABC News

CNN

Reuters

A federal judge has allowed The New York Times and other newspapers to continue their copyright lawsuit against OpenAI and Microsoft which aims to halt the use of their articles for the training of AI chatbots. U.S. District Judge Sidney Stein dismissed some claims but permitted the majority to proceed, potentially leading to a jury trial. Frank Pine, executive editor of MediaNews Group, said: “The claims the court has dismissed do not undermine the main thrust of our case, which is that these companies have stolen our work and violated our copyright.” OpenAI welcomed the dismissal of certain claims, saying that it uses publicly available data in a fair use manner. The Times argues that OpenAI's actions threaten its business by appropriating significant amounts of journalistic work.

 

Chicago Tribune

NPR / National Public Radio

U.S. News

A U.S. judge has temporarily allowed Labor Department grant recipients to continue their diversity, equity, and inclusion (DEI) programs while considering a longer-lasting injunction against the Trump administration's restrictions on "equity-related grants." U.S. District Judge Matthew Kennelly ruled that the requirement for grantees to certify they do not operate DEI programs violated their First Amendment rights. Thursday's ruling is in response to a lawsuit filed by Chicago Women in Trades (CWIT), a nonprofit  that helps prepare women for work in skilled construction trades and has several contracts with the Department of Labor. Kennelly said: "The impact of this provision on CWIT and other grantees is likely to result in self-censorship."

 

ABC News

U.S. News

With more and more major U.S. companies retracting their diversity, equity, and inclusion (DEI) initiatives, Black creators are reassessing their business strategies. Ericka Chambers, co-founder of Puzzles of Color, expressed concern, asking: "It becomes a question of, are the big box stores going to be there?" The shift follows a wave of corporate pullbacks, with brands like Target and Walmart scaling back their DEI commitments. This has left many Black-owned businesses, such as Pound Cake and Puzzles of Color, questioning their partnerships and future growth. While some entrepreneurs, like Chantel Powell of Play Pits, highlight the potential impact of boycotts on their businesses, others, like Jason Panda of B Condoms, remain optimistic about their community ties. Despite the challenges, Aurora James of the Fifteen Percent Pledge notes that many companies still support Black businesses, indicating a resilient spirit among Black creators.

 

Fast Company

ING has become the first systemically important global bank to have its climate goals validated by the Science-Based Targets initiative, aligning with efforts to limit global warming to 1.5 degrees. The Dutch lender has met targets across various sectors, including fossil fuels and power generation.

 

Daily Mail

Tesla will begin selling cars in Saudi Arabia next month, marking a major expansion into the Gulf’s largest market and signalling a thaw in relations between chief executive Elon Musk and the Saudi government. The move follows a years-long rift that began in 2018 after Mr. Musk tweeted he had "funding secured" to take Tesla private—allegedly backed by Saudi Arabia’s Public Investment Fund (PIF). The failed bid led to a lawsuit and the release of tense exchanges between Musk and PIF chief Yasir al-Rumayyan.

 

Reuters