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Initial public offerings planned for the next few months have been put on ice due to the market volatility caused by the announced U.S. tariffs, according to a new EY report. Some companies planning to list this year, especially those aiming at going public in the first quarter, have delayed their IPOs to as late as early 2026. “Based on client conversations, those close to filing or launching roadshows are taking a ‘wait-and-see’ approach, while earlier-stage companies continue preparing to keep their options open for better market conditions,” commented Mark Schwartz, IPO advisory leader at EY. Companies planning to go public need more stable market conditions, including lower VIX levels–Wall Street’s ‘fear gauge’–and reduced intra-day swings, but even then activity will likely focus on high-quality companies in sectors less affected by trade policy and where peer valuations remain strong, he added.

 

Wall Street Journal

President Donald Trump's initiative to implement significant tax cuts and increase the federal debt is progressing after House Republicans approved a Senate-passed budget outline with a narrow 216-214 vote. This budget sets the stage for potential tax reductions of up to $5.3tn over a decade and a $5tn debt ceiling increase, contingent on $4bn in spending cuts. House Speaker Mike Johnson (R-LA) expressed commitment to achieving at least $1.5tn in spending cuts, while Senate Republican leader John Thune (R-SD) noted that many senators share this goal. “The America First agenda will be enacted. President Trump’s promises will be fulfilled,” Mr. Johnson added. “And we’re really excited that today we took a big step to getting that done.” However, Democrats criticized the plan, claiming it prioritizes tax cuts for the wealthy at the expense of essential benefits for the poor.  The House’s adoption of the measure unlocks a procedural fast track for a bill later this year that would extend expiring tax cuts, lower taxes even further and increase spending for border security and national defense.

 

Accounting Today

US News and World Report

Wall Street Journal

China this morning responded to President Donald Trump's latest tariff move, raising its own levies on U.S. goods to 125%, from 84%. The announcement by China's State Council follows the White House's clarification on Thursday that China is now facing a minimum tariff rate of 145% on all exports to the U.S. "The U.S. imposition of abnormally high tariffs on China seriously violates international and economic trade rules, basic economic laws and common sense and is completely unilateral bullying and coercion", China's Finance Ministry said in a statement. The new policy is scheduled to take effect on Saturday.

 

Bloomberg

Financial Times

New York Times

Reuters

The U.S. government posted a $161bn budget deficit for March, down 32%, or $76bn, from a year earlier, a decline due largely to a calendar shift for benefit payments as receipts continued to grow. The Treasury Department also reported Thursday that the gap between federal revenue and government spending in the six months to the end of March widened to $1.3tn, the second-highest fiscal year-to-date deficit the U.S. has ever seen. One of the drivers of the deficit in the fiscal year was record-high interest paid on the public debt. The total was $582bn, up $60bn from the comparable year-ago period. Other reasons for the increase include growing spending on categories like military programs, Medicare, Social Security, and Veterans Affairs.

 

Barron's

Reuters

The Labor Department has reported that 223,000 new jobless claims were filed in the seven days to April 5th, an increase of 4,000 from the week prior, and in line with the expectations of economists polled by the Wall Street Journal. Claims have now been below 226,000 for six straight weeks and for 16 of the past 17 weeks. The four-week average of applications was unchanged at 223,000, while the total number of claims, reported with a one-week lag, declined 43,000 to 1.85m. 

 

Market Watch

Reuters

Washington Post

General Motors (GM) is temporarily laying off 200 workers at its Factory Zero assembly plant in Detroit due to market adjustments. The plant, which employs approximately 4,537 workers, is the first fully dedicated all-electric facility and has received over $2.5bn in investment. According to GM, the layoffs are not related to recent auto tariffs but are necessary to "align with market dynamics." The factory produces several Ultium-based vehicles, including the GMC Hummer EV and Chevrolet Silverado EV WT. In response to changing consumer demand, GM has also revised its EV production targets for 2024, reducing its output from 300,000 units to 250,000 units. CEO Mary Barra indicated that the company is pushing back the Orion Assembly EV truck plant's timeline to mid-2026 and plans to introduce plug-in hybrid vehicles in 2027.

 

Gdn Online

EY has initiated the next phase of its $1bn technology investment by integrating artificial intelligence capabilities into its global assurance platform. The development is part of the organization’s aim to transform audit services and improve the audit experience for its clients worldwide.  The new AI-powered features are designed to elevate audit quality and instil confidence in the capital markets. Among the capabilities is EYQ Assurance Knowledge, which employs generative AI to assist in the detailed search and summarisation of accounting and auditing content.  By incorporating EYQ Assurance Knowledge directly into the workflow, EY’s 140,000 assurance professionals can use GenAI tailored to the specifics of their audit engagements.   This includes consideration of the company’s location, industry, and complexity.  

 

CPA Practice Advisor

International Accounting Bulletin

Berkshire Hathaway-owned Duracell faces a lawsuit from BASF for allegedly stealing trade secrets related to lithium ion battery technology. BASF claims that Duracell misappropriated proprietary processes while the companies were collaborating, causing "substantial and irreparable injury." The complaint highlights BASF's significant investment in developing high-performance cathode materials, which are essential for battery production. BASF's legal action follows its announcement to separate its battery chemicals business into autonomous units to enhance earnings. The case is titled BASF Corp. v. Duracell U.S. Operations Inc, filed in the U.S. District Court for Delaware.

 

U.S. News

Burger King has been told it must face a lawsuit accusing it of restricting worker mobility and suppressing wages at its nationwide restaurant franchisees. The lawsuit, first filed in 2018, accused Burger King and related corporate entities of violating U.S. antitrust law through the use of “no hire” agreements at thousands of franchises across the country. Such deals generally bar franchises from hiring a worker from another, at least for six months. The plaintiffs include current and former Burger King employees who worked at restaurants in Illinois and other states from at least 2010. Burger King argued that the workers had offered no evidence that the no hire agreement kept wages lower. However, U.S. District Judge Jose Martinez in Miami said they had plausibly shown that the Burger King no-hire agreement was an “unreasonable” restraint on the labor market. The case is Jarvis Arrington et al v. Burger King Worldwide et al, U.S. District Court, Southern District of Florida, No. 1:18-cv-24128-JEM.

 

Bloomberg Law

Reuters

At least four potential bidders have shown interest in acquiring parts of Hudson's Bay Co. (HBC) as the retailer struggles with significant losses and C$1.1bn ($793m) in debt. HBC was granted court protection under the Companies’ Creditors Arrangement Act on March 7th, allowing it to seek investment and bids for its operations. Final proposals are due by April 30th, with a restructuring plan requiring C$82m in initial investment to save six department stores and e-commerce operations. Chinese billionaire Weihong Liu, chair of Central Walk, has publicly expressed interest in bidding for some stores. The bidding process will conclude with results expected by the end of May, as HBC aims to recover from a nearly 33% decline in total sales, amounting to C$1.11bn in the 2024 fiscal year.

 

The Globe and Mail

Prada has officially acquired the Versace fashion house from Capri Holding for €1.25bn ($1.1bn). Since 2018, Versace has been under the ownership of Capri, whose portfolio includes brands like Michael Kors and Jimmy Choo. "We will provide (Versace) with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships", commented Prada chair Patrizio Bertelli, who is married to Prada designer Miuccia Prada. 

 

CNN

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New York Times

Reuters

 

Accounting Today

New York Attorney General Letitia James has urged Congress to establish a federal regulatory framework for cryptocurrencies, as she emphasized the urgent need for stronger protections for digital asset investors. In her letter to congressional leaders, including Senate Majority Leader John Thune and House Speaker Mike Johnson, she proposed that crypto companies be required to register with a federal agency and adhere to minimum listing standards for tokens. James highlighted the importance of stablecoin regulations, advocating for issuers to maintain a U.S. presence and deposit U.S. Treasuries in American banks. She said: “Countless New Yorkers invest in cryptocurrency and digital assets, and more must be done to protect them and their money,” noting that many investors have lost millions to scams that could have been mitigated with better regulations.

 

U.S. News

The European Union is poised to implement significant trade measures against the United States if negotiations with President Donald Trump do not yield satisfactory results. European Commission president Ursula von der Leyen told the FT: "We are developing retaliatory measures," which may include tariffs on digital advertising revenues affecting major tech companies like Meta, Google, and Facebook. She stressed that the EU seeks a "completely balanced" agreement during the 90-day pause in additional tariffs. However, if talks fail, the EU could expand the trade war to services, or impose levies on the advertising revenues of digital services.

 

Financial Times

Daily Mail

Shein has received approval from the U.K.'s Financial Conduct Authority (FCA) for its planned IPO in London. The green light, first reported by Reuters, marks a crucial step in the company's journey towards a London listing after its confidential filing last June. However, Shein faces challenges, including U.S. tariffs on Chinese goods and the need for approval from Chinese regulators, particularly the China Securities Regulatory Commission (CSRC). Shein's valuation may also drop to around $50bn from $66bn due to these market conditions. The company aims to adapt by diversifying suppliers in Brazil and Turkey, but the ongoing trade tensions and market volatility could yet complicate its IPO timeline.

 

Financial Times

Reuters