ExclusiveInflation Cools for the First Time in 4 Months | Business Matters (Mar. 12)

In today's Business Matters, for the first time in four months, inflation in the U.S. cooled off. According to the Bureau of Labor Statistics, the consumer price index was 2.8% for the period that ended in February. That's year over year. And it's down from the 3% yearly rate reported in January. Economists say lower gas and grocery prices were major factors that helped bring down inflation. Egg prices increased over 10% from a month ago. But according to Agriculture Secretary Brooke Rowlands, the prices dropped after the department announced a $1 billion plan to address the egg crisis. And a goal to more than triple the world's nuclear energy capacity by 2050. Major tech companies are on board and have signed the World Nuclear Association's pledge. This includes Amazon and Google, as well as shale company Occidental and Japanese heavy machinery maker IHI Corp. And this is on top of the same vow made by more than 30 countries a few years ago. WNA expects the pledge to gain more support in the coming months from industries like maritime aviation and oil and gas. Nuclear energy is considered a clean power that could become a The head of asset management group Blackstone is predicting tariffs will bring a positive impact for U.S. manufacturing. The chief executive was asked about the impacts of tariffs during an event in Mumbai, India. He said it would lead to a significant increase in manufacturing activity in the U.S. He did not share details about which sectors could benefit. He was also asked about relations between the U.S. and India. He said he expects talks between the two countries to go smoothly. GE Aerospace announced a nearly $1 billion investment today in its U.S. factories and supply chain in 2025. The aerospace giant's latest investment comes amid a strong travel environment that has led to strong demand for its engines and spare parts. GE also plans to hire 5,000 U.S. workers this year, adding roles in manufacturing and engineering operations. The company will spend $500 million to bolster its engine manufacturing capacity and expand several key sites. GE Aerospace will also invest more than $100 million to support its external suppliers. The company said it aims to upgrade its tools, reduce deficits and parts it produces, and alleviate supply chain constraints. Fast fashion retailer Zara is optimistic and expects to keep growing in the U.S. despite the tariffs. That's what its owner Inditex said after reporting a slower start to first quarter sales. Its CEO noted that constantly changing news on tariffs and geopolitics is making it difficult to make long-term predictions. Still, Inditex is well-positioned to adapt to tariffs since it has diversified sourcing and sales. The U.S. is Inditex's second-biggest market after Spain, but the Americas as a whole accounted for a smaller portion of global sales last year. And this could be the last cleaning cycle for Roomba's parent company iRobot. The robotic vacuum maker warned that it has substantial doubt about the company's ability to continue. This was revealed during its quarterly earnings. The company said that the board is exploring alternatives for the business that could include a sale and refinancing its debt. In an effort to turn things around, Roomba is banking on new products to boost revenue. This week, it had its largest product launch in company history, with eight new models. The company cautioned, though, that the products may not succeed since they're dealing with demand, economic pressures, and tariff policies. Kohl's new CEO is focusing on customers in its turnaround plan. Ashley Buchanan shared strategy highlights at the same time that the company released mixed quarterly results and a downbeat look. The department store chain plans to prioritize categories that resonate with its core customers. Buchanan said Kohl's had been heavily focusing on new products to attract new customers. He also wants to re-establish Kohl's as a leader in value and quality. The goal is also to optimize the shopping experience from store layouts to online shopping. Could the future of Penn Station mean Madison Square Garden packing up and traveling across the street? Well, that's the latest proposal for the redesign and renovation of the space. This one comes from Grand Penn Community Alliance. Right now, Madison Square Garden sits on top of Penn Station. The group wants to demolish the arena and move it across 7th Avenue. This would make room for a new, bigger train station and a park as well. The estimated cost is about 7.5 billion dollars, similar to other proposals that don't move the garden. And how do everyday Americans feel about the prospects for the US economy under President Trump? NTT San Juan was out on the National Mall in DC to hear from the people. Are you optimistic about the prospects of our economy under President Trump? Yes, absolutely. He's trying to decrease the size of government. We've been bloated for far too long and we know there is going to be a little bit of short-term pain, but in the end, it is going to be more prosperous for America. I really think Trump is a master strategist when it comes to how to leverage the tariffs appropriately to assert the kind of pressure that we need. It's hard to tell at this point. Maybe, maybe not. I'm seeing a lot of good and bad, I guess, with it. I guess the problem I'm seeing is all the different layoffs, especially for the federal government. I mean, the optics might look bad, but I'm sure there's bloat in government. I don't think there's an argument about that. The media likes to focus on those very narrow things. In other words, look over here, but not over here, where maybe some good is being done. I'm a product manager, and when you have tariffs, it's a trade war, you automatically start inflation. So I'm not optimistic. He started taking office, what, not too long ago. So I just give it some time. So yes, I guess I am optimistic. On tariffs, part of the administration's agenda, according to President Trump, is to bring jobs and manufacturing back to the United States. So I guess the question here would be, would you be on board with short-term pain for long-term benefits? Yes. If it builds our economy back up, keep the money in the US, yeah. I mean, if it can bring stuff back to the US, that'd be great. But again, I guess in the past, they always say that stuff made in America is more expensive, per se. Oh, definitely. I come out of the private sector. We always have some short-term pain for some long-term gain. When you ship those jobs overseas to produce that same product for a low price, it's more attractive to us. So we've got to get over that. I think China does have too much control over our economy. I think it's good if we do bring some jobs back here, industry here. I think you can't flip a switch, though. You're going to have to have some type of paradigm shift and large adjustment, and that is some short-term pain. Part of this is the brokers and the traders panicking. And I understand that. They're trying to make money for their clients. But at the end of the day, it's like they have to look a little bit more long-term. They have to have a little bit more confidence in the market. It's about supporting the American entrepreneur, which is truly the heartbeat of the American economy, bringing that back and helping the private sector grow the American economy to what it's capable of being. The communists control the newspaper. China Daily will no longer be distributed on Capitol Hill. Congress members say they worked with national news to stop China Daily's circulation. After lawmakers raised concerns, China Daily is one of several major state mouthpieces controlled by the CCP's Central Propaganda Department. The publication's Chinese website says its English edition actively publicizes and explains Xi Jinping's thought on socialism. It also says it strives to influence public opinion in favor of communist rule to China. Its U.S. distributor, China Daily Distribution Corporation, has been registered as a foreign agent in the United States since 1983 under the Foreign Agents Registration Act. President Donald Trump defended his use of tariffs and said they could increase. This was during a meeting yesterday with the CEOs of America's biggest companies. He spoke to about 100 CEOs at a regular meeting of the Business Roundtable, which includes the heads of Apple, JPMorgan Chase, Walmart, and others. Earlier, I spoke to Mike Leon, NTD News contributor and host of the podcast, Can't We Please Talk, for takeaways of the meeting. Give us your thoughts on yesterday's meeting where Trump defended his economic policies that, in part, contributed to market volatility. Don, good to see you, first and foremost. First, I would recommend people go watch, I believe it was about an eight or nine-minute exchange that was open to the press before he closed doors and met with about 100 top CEOs. He feels that tariffs are going to be something that's going to get the economic boom returning to this country. President Trump feels that we've been taken advantage of for a long time. The Democrats, prior to this, President Biden kept some of the tariffs in place that Donald Trump had carried over from his first administration. He feels tariffs is a strategy, as business experts and business reporters who covered his first administration have told me on my show, Don. He feels like this isn't a strategy to get people to the negotiating table or, as Caroline Levitt said there in that package, to get companies to finally start building in America and not exporting a lot of their labor overseas. We'll see if the strategy pays off. Multiple people will tell you multiple things in different directions, but that was my biggest takeaway, is tariffs, tariffs, tariffs. But do business leaders want to hear that from Trump? Because they do want stability, right? Especially in markets. Yeah, I don't think they do. What's going to happen now is, as the tariffs, and as of today, some tariffs took effect across a couple of different countries, across a couple of different industries affected. So once this starts to go into effect, over the next three to six months, we'll see what this does in terms of trade and how it impacts and which industries it'll impact. We'll start to see the jobs reports numbers start to come out. And all of this will be a trickle down effect. And we'll see if the tariff negotiation strategy that President Trump is imploring is going to be one that is good. But I think right now the biggest takeaway will be, or at least what people will try to find out, is what those CEOs are thinking and what they're going to tell their executives over at their companies about what they should do should they stay in patch, should they move into a different area, because they're hanging on what the president is saying. And it's incumbent upon them to find out. So that way they can relay that stuff to their workers, so they can relay that stuff to their shareholders, etc, etc. So it's a wait and see effect, unfortunately. But in the immediacy right now, Don, we want to find out the most information. I don't think the president gave one direction or the other. The actions have been speaking louder than the words. And that's been the actions on these tariffs across Canada, across Mexico, and obviously across China. Okay, just one final question for you. I'm just thinking here, how might Trump's actions impact his standing with Americans who voted for him on the economy, because we're seeing a lot of turmoil right now? Don, I'm so glad you brought this up. There was a recent CNN poll that just came out this morning that said that he had a 54 percent disapproval so far on his handling on this situation, specifically with respect to the economy. His words right now are being taken in different directions with respect to tariffs. This is what I'm trying to explain to people. It's a strategy. Whether I agree with it or not is irrelevant, Don. The numbers are going to bear this out over the next six to 12 months. If we start to see job growth increase in different industries here in America, if we start to see some of these countries come to the negotiating table and rework some of the trade partnership agreements, all of that will net out over the next six to 12 months. I would urge people to wait until then, and then we judge President Trump on whether or not the economy has started to actually go in the direction that he promised Americans that he campaigned on. All right, Mike. Great talking to you, as always. Thank you very much. Thanks, Don. The IRS says upwards of a billion dollars in refunds for tax year 2021 remain unclaimed, and the deadline to claim them is right around the corner. According to the agency's website, more than 1.1 million taxpayers across the U.S. have unclaimed refunds from 2021, and the deadline to submit tax returns is April 15th. The IRS says the median refund amount for 2021 is an estimated $781. By law, taxpayers usually have three years to file and claim their tax refunds. Otherwise, the money becomes the property of the U.S. Treasury. Elon Musk has secured a major win in India by signing two back-to-back deals to bring SpaceX's Starlink satellite internet services to the country. The country's top telecoms provider said it had linked a deal with SpaceX. A similar agreement with India's second largest mobile operator was announced a day earlier. Satellite connectivity remains in its early stage in India. It is the world's most populous country, and many of its rural poor still live in remote or hard-to-connect places. Spotify said on Wednesday it paid $10 billion in royalties in 2024, the largest payout to the music industry in a single year. Spotify says it paid a record $10 billion in royalties to artists in 2024. The streaming giant said that was the largest ever payout to the music industry in a single year. Of that total, nearly 1,500 artists earned over $1 million in royalties. The Swedish firm said its total payouts had risen 10 times from just $1 billion in 2014. Last year, Spotify was hit with a U.S. lawsuit accusing it of underpaying songwriting royalties for tens of millions of songs. A federal judge in New York then ruled to dismiss that suit this year. The company recently signed multi-year deals with major labels including Warner Music and Universal Music. Chief executive Daniel Ek said Spotify would introduce personalized offerings, including a premium tier called Super Fans of Music. The firm forecast it would hit 678 million monthly active users over the first quarter. And it appears Vanna White has a lot of time on her hands. During an appearance on Elvis Duran and The Morning Show, the legendary letter-turner on Wheel of Fortune says she works roughly just 34 days a year. And that's because the game show typically shoots six episodes in a single day. She joked it's tough to make half a dozen wardrobe changes each time she's on set. Pat Sajak left Wheel of Fortune last June after hosting the show for 41 years. He and White had been a team since 1982. A Saudi-owned company is catching them all. Pokemon Go maker Niantic Labs plans to sell its video game division to Scopely. Niantic Labs failed to recreate the success of its popular Pokemon Go game, so the U.S.-augmented reality company is shifting focus to geospatial technology. It's set to spin off its geospatial AI business into a new firm called Niantic Spatial. The $3.5 billion deal will help advance Saudi Arabia's ambitions to become the ultimate global hub for gaming. U.S. stocks advanced today as cooler-than-expected inflation data helped curb a sharp sell-off. S&P 500 and Nasdaq closed in positive territory, enjoying a big boost from tech stocks. The blue-chip Dow waffled between red and green for much of the session but ended modestly lower on the day. Goldman Sachs lowered its year-end target for the S&P 500, while JP Morgan sees increasing odds of a U.S. recession. Meanwhile, lawmakers on Capitol Hill continue to wrangle over a stopgap spending bill in an effort to avoid a government shutdown.