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North American Edition
24th March 2025
 
THE HOT STORY
White House expected to narrow 'Liberation Day' tariffs
The White House is narrowing its approach to tariffs set to take effect on April 2nd, dubbed "Liberation Day" by President Donald Trump, likely omitting a set of industry-specific tariffs while applying reciprocal levies on a targeted set of nations that account for the bulk of foreign trade with the U.S. There had been plans to announce reciprocal tariffs that seek to equalize U.S. tariffs with the duties charged by trading partners, as well as tariffs on sectors like automobiles, pharmaceuticals and semiconductors. However, the Wall Street Journal cites an administration official who says those sector-specific tariffs are now unlikely to be announced on April 2nd. The official added that the White House is still planning to unveil the reciprocal tariff action on that day, though planning remains fluid. The fate of the sectoral tariffs, as well as tariffs on Canada and Mexico that Trump said were justified by fentanyl trafficking, remains uncertain. 
ECONOMY
Consumer pessimism drags on Conference Board's LEI index
Consumers are increasingly worried about the economy's future, as indicated by the Conference Board's Leading Economic Indicators index, which fell by 0.3% in February. Economists had expected it to dip by 0.2% compared to the 0.3% decline originally reported for the previous month. Future business conditions were the component that weighed most heavily on the index, according to Justyna Zabinska-La Monica, senior manager of business cycle indicators at The Conference Board. “Manufacturing new orders, which improved in January, retreated and were the second largest negative contributor to the Index’s monthly decline,” she said. “On a positive note, the LEI’s six-month and annual growth rates, while still negative, have remained on an upward trend since the end of 2023, suggesting that headwinds in the economy as of February may have moderated compared to last year. However, given substantial policy uncertainty and the notable pullback in consumer sentiment and spending since the beginning of the year, we currently forecast that real GDP growth in the US will slow to around 2% in 2025.”
OPERATIONAL
Heathrow had 'enough power' despite the fire shutdown
U.K. Energy Secretary Ed Miliband has ordered an urgent investigation into the power outage that caused the closure of Heathrow Airport on Friday. The outage, which came after a fire at a substation that supplies power to the airport, saw thousands of flights cancelled. The Department for Energy Security and Net Zero said the investigation, which will be led by the National Energy System Operator (NESO), will build a "clear picture" of the incident and help to prevent it "from ever happening again." Miliband said officials are “determined to properly understand what happened and what lessons need to be learned.” NESO, which operates Britain's electricity grid, is expected to report its initial findings to power regulator Ofgem and the government in six weeks. Speaking to the FT, National Grid chief executive John Pettigrew says Heathrow had "enough power" despite the fire shutdown. Meanwhile, Heathrow has announced that former Transport Secretary Ruth Kelly will review the airport's response to the power outage and its crisis management plans.
U.S. Instagram outage reports dwindle
Instagram experienced a significant outage across the U.S. on March 20. Downdetector.com reporting a sharp decline in incidents from 19,431 to just 429 by 8:34 p.m. ET, suggesting the issue was nearly resolved. The outage tracking site, which compiles data from user reports, indicated that while the problem affected many, the exact number of impacted users might vary. Meta, Instagram's parent company, had not yet commented on the situation, leaving the cause of the disruption unclear as reports lessened.
WORKFORCE
Tesla workers demand longer breaks
At Tesla's Gigafactory Berlin-Brandenburg in Germany, approximately 3,000 workers have signed a petition demanding longer breaks and increased staffing, despite the company reporting that around 80% of employees are satisfied with their jobs. The IG Metall union plans to present the petition, signed by 3,086 staff, at an upcoming works council meeting. Tesla conducted its own survey of about 7,500 workers, and said that only 5% expressed dissatisfaction. As production of the new Model Y ramps up, Tesla is converting 300 temporary workers to permanent positions, but union representatives remain concerned about whether this will suffice to meet production demands.
REPUTATION
Law firm targeted by Trump could have been 'destroyed'
Brad Karp, chairman of Paul, Weiss, Rifkind, Garrison & Wharton, says he agreed to significant concessions to the Trump administration to avoid an "existential crisis" for the firm. An executive order threatened to suspend security clearances for the firm's attorneys and terminate federal contracts, which Karp said "could easily have destroyed our firm." Following negotiations, the firm committed to providing $40m worth of free legal services to support the administration. The decision has drawn criticism from the legal community, with many lawyers expressing concern that the firm did not challenge the President. Karp acknowledged the issue, saying: "It is very easy for commentators to judge our actions from the sidelines," adding "Disappointingly, far from support, we learned that certain other firms were seeking to exploit our vulnerabilities by aggressively soliciting our clients and recruiting our attorneys."
STRATEGY
Ben & Jerry’s founders support ousted CEO
Ben & Jerry’s founders Ben Cohen and Jerry Greenfield say they want the ice cream brand’s ousted CEO to have his job back. Parent company Unilever removed Dave Stever amid ongoing tensions regarding the subsidiary's independence on social issues. In a message to the company’s employees, Cohen and  Greenfield expressed their support for Stever, stating: “Dave has been a tireless champion of this company and its progressive values . . . We believe there’s no one better to lead Ben & Jerry’s at this moment in its history.” They added: “While we don’t have insight into Unilever’s decision, we do know this: we stand 110% behind Dave . . . As CEO, he’s continued to lead with courage and integrity, delivering on our Social Mission while posting strong global growth last year, his first full year in the role.” The founders are no longer members of the brand’s independent board. 
LEGAL
Boeing sued over whistleblower death
The family of John Barnett, a Boeing whistleblower who took his own life, have filed a wrongful death lawsuit against the aerospace firm. The lawsuit alleges that the company’s conduct was the “clear, foreseeable cause" of Barnett's death, and claims that he was subjected to a campaign of harassment, abuse and humiliation after he raised concerns about safety issues. Barnett, who was employed as a quality manager at a Boeing factory, raised a number of concerns with management about violations of safety procedures, as well highlighting defects in aircraft on the production line. A 2017 review by the Federal Aviation Administration upheld some of these concerns. In a 2021 email included in the complaint, Barnett described himself as once “a very happy go lucky guy that loved his job, his company and the products they built.” But over time, he wrote, Boeing's resistance to his safety critiques changed his outlook. “Each time I do an interview, a deposition or other stressful discussion on what happened with me and Boeing, I re-live [sic] those years all over again. It puts me in a deep depression for a week or two.”
CORPORATE
Accenture warns DOGE-led spending crackdown is pulling down revenues
Accenture has warned that Elon Musk’s efforts to slash costs across the U.S. federal government has started to affect its revenues and geopolitical developments had raised economic uncertainty around the world. “Federal represented approximately 8% of our global revenue and 16% of our Americas revenue in FY 2024," chief executive Julie Spellman Sweet told analysts on Thursday. "As you know, the new administration has a clear goal to run the federal government more efficiently. During this process, many new procurement actions have slowed, which is negatively impacting our sales and revenue.” The company reported earnings of $2.82 per share on revenues of $16.66bn, just higher than expectations of $2.81 per share in earnings on revenues of $16.62bn, according to FactSet.
Hudson's Bay to begin liquidating most stores
Hudson's Bay Co has been granted approval by the Ontario Supreme Court to start liquidating all but six of its 96 stores, beginning today. The Ontario Superior Court approved the retailer’s wind-down proposal as it tries to find restructuring solutions with its creditors and landlords. The liquidation will last until mid-June. Justice Peter Osborne also approved keeping on key employees to help with attempts to restructure the remaining stores. The six stores spared from the liquidation process are located in Ontario and Quebec, including the flagship Yonge-Queen location in downtown Toronto. HBC owes around C$1.1bn ($766m) in secured debt.
TECHNOLOGY
Nvidia CEO tells conference that robots are on the way
Nvidia CEO Jensen Huang has predicted at the company’s developer conference in San Jose that humanoid robots will be widely used in manufacturing within five years, saying: “This is not five-years-away problem, this is a few-years-away problem.” He introduced new software tools to aid robot navigation and suggested factories would be the first to adopt them due to their controlled environments and clear economic benefits, estimating that “the going rate for renting a human robot is probably $100,000.” Huang’s vision underscores Nvidia’s push to accelerate AI-driven robotics, starting with industrial applications.
TAX
New IRS ruling clarifies foreign-derived income rules
The IRS has clarified how domestic corporations can classify income from services provided to related foreign entities as foreign-derived for Foreign Derived Intangible Income (FDII) purposes. According to K&L Gates partners, the recent ruling confirms that if a domestic corporation offers research and development (R&D) services to a foreign entity, the entire income can be considered foreign-derived, provided the benefits are solely for the foreign entity. The ruling emphasizes the effective tax rate (ETR) advantages for U.S. multinationals under the FDII regime, which allows a 37.5% deduction of FDII, resulting in an ETR of 13.125%. The ruling is expected to provide significant benefits for U.S. multinational groups.
OTHER
Segway issues recall notice for 220,000 scooters
Segway is recalling about 220,000 of its scooters sold across the U.S. due to a fall hazard that has resulted in user injuries ranging from bruises to broken bones. The notice was issued for the Segway Ninebot Max G30P and Max G30LP KickScooters. According to the U.S. Consumer Product Safety Commission, "The folding mechanism can fail and cause the handlebars or stem to fold while the scooter is in use, posing a fall hazard to consumers". Consumers in possession of these now-recalled scooters are urged to stop using them immediately and contact Segway to request a free maintenance kit, which includes tools and step-by-step instructions to inspect and adjust the scooters' locking mechanism as needed.


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