Trump-Powell Tensions Rise Over Fed HQ Costs; Paramount Merger Approved

Tensions Between Trump and Powell

• ⚠️ President Trump visited the Federal Reserve and questioned the cost of its renovation works, stating it was around $3.1 billion, up from an earlier estimate.
• 🗣️ Fed Chair Jerome Powell stated he was unaware of these figures and had not heard them from anyone at the Fed.
• 📰 Investors worried the White House might use renovation costs as a pretext to fire Powell, though Trump indicated this was not his plan.

Federal Reserve and Economic Outlook

• 📉 Investors anticipate no Fed rate cut until at least September, despite President Trump's repeated calls for one.
• 📈 US business activity showed improvement this week, with new jobless claims reaching a three-month low, suggesting the economy may not need immediate stimulus.

Paramount-Skydance Merger Approval

• 🤝 Regulators approved the $8.4 billion merger between Paramount Global and Skydance Media.
• ⚖️ Approval was contingent on the new owners' commitment to unbiased journalism and not pursuing diversity and equity initiatives, which the administration deemed discriminatory.
• ❓ The deal raises concerns about press freedom, especially after Paramount settled a lawsuit brought by President Trump against CBS News.

Volkswagen and Auto Tariffs

• 🚗 Volkswagen reported a €1.3 billion hit from US tariffs in the first half of the year.
• 📉 The company now expects no sales growth this year, down from a previous forecast of 5%.
• 🌍 Automakers are struggling with a 25% US tariff on imported cars, though reduced tariffs for Japan offer hope for Europe.