The Cynic: May 29

BUSINESS
This Week’s Business News

White House: Three Trade Deals Nearly Done

The White House is on the brink of sealing three trade agreements.
White House economic adviser Kevin Hassett announced that three trade deals are nearly finalized and expressed optimism for several more agreements despite a recent U.S. trade court ruling. The court had blocked most of President Donald Trump's tariffs, claiming he had overstepped his authority. Hassett criticized the ruling as being made by "activist judges" and expressed confidence that the administration would prevail on appeal.

Trade negotiations remain unaffected by legal challenges.
Hassett emphasized that the trade negotiations remain unaffected by this legal challenge. According to Hassett, these developments indicate that multiple countries are preparing to open their markets to American products in the coming months. He affirmed that three completed deals were ready for President Trump’s review by the end of the previous week.

The administration remains committed to expanding trade.
Despite the legal hurdles, the administration remains committed to expanding trade and is actively pursuing agreements that will benefit American industries. The focus is on opening new markets and ensuring fair trade practices that support U.S. economic growth.

Best Buy Lowers Forecast Amid Tariff Concerns

Best Buy has lowered its full-year sales and profit forecasts due to concerns about the impact of U.S. tariffs on consumer demand for expensive items such as appliances and electronics. The company expects slower growth in fiscal 2026, revising its comparable sales forecast to a range of down 1% to up 1%, from a previous estimate of flat to 2% growth. Adjusted earnings per share are now projected to be between $6.15 and $6.30, down from a prior range of $6.20 to $6.60.

Tariffs and borrowing costs affect consumer spending.
Higher borrowing costs and tariff-driven price hikes are affecting consumer spending. Best Buy is particularly vulnerable to tariffs due to its heavy reliance on Chinese imports, which account for about 60% of its cost of goods sold. The company’s situation mirrors a broader retail trend, as seen with Walmart and other retailers facing similar challenges in the big-ticket discretionary spending category amid ongoing economic uncertainty.

Retailers navigate economic headwinds.
Retailers are navigating economic headwinds by adjusting forecasts and strategies to mitigate the impact of tariffs and changing consumer behaviors. The focus is on maintaining profitability while adapting to the evolving market conditions.

Tesla Plans June Delivery for Self-Driving Model Y

Tesla announces upcoming delivery of autonomous vehicles.
Tesla CEO Elon Musk announced that the company is testing driverless Model Y cars in Austin, Texas, and plans to deliver the first unit in June, moving ahead of schedule. Initially, Musk indicated the launch would begin with 10 to 20 vehicles, with earlier plans suggesting testing would start by the end of June. Thus far, tests have reportedly occurred without incidents.

Potential robotaxi service launch in Austin.
Although Musk did not provide a detailed timeline for the full rollout, Bloomberg reported a potential robotaxi service launch in Austin on June 12. This development comes amid decreasing global Tesla sales, increased competition, and backlash surrounding Musk's political affiliations, including his recent departure from U.S. President Donald Trump's administration, where he led a controversial efficiency initiative.

Tesla shifts focus to autonomous transportation.
Tesla has yet to comment further on the robotaxi plans. However, the company is shifting focus from affordable EVs towards its robotaxi and Optimus humanoid robot projects, which are central to its valuation. The success of the robotaxi trial is considered critical to Tesla’s future.

REAL ESTATE
This Week’s Real Estate News

Palantir and Fannie Mae Collaborate on AI for Mortgage Fraud Detection

Partnership aims to enhance fraud detection in mortgages.
Palantir Technologies has partnered with Fannie Mae to develop AI tools aimed at detecting mortgage fraud. The collaboration seeks to leverage Palantir's data analytics capabilities to identify and prevent fraudulent activities in the mortgage industry.

AI tools to improve efficiency and accuracy.
The AI tools developed through this partnership are expected to improve the efficiency and accuracy of fraud detection processes. By analyzing vast amounts of data, the system can identify patterns and anomalies indicative of fraudulent behavior.

Enhancing the integrity of the mortgage market.
This initiative aims to enhance the integrity of the mortgage market by proactively identifying and addressing fraudulent activities. The collaboration represents a significant step towards integrating advanced technology into financial oversight.

Mortgage Rates Reach Highest Level Since January

Mortgage rates climb to new highs.
Mortgage rates have risen to their highest level since January, impacting homebuyers and the housing market. The increase in rates is attributed to various economic factors, including inflation and monetary policy decisions.

Higher rates affect housing affordability.
The rise in mortgage rates affects housing affordability, potentially slowing down the housing market as buyers face higher borrowing costs. This development may lead to a decrease in home sales and a shift in market dynamics.

Market adjusts to changing financial conditions.
The housing market is adjusting to the changing financial conditions, with stakeholders monitoring the situation closely. The trajectory of mortgage rates will continue to influence market trends and buyer behavior.

Fed Chair Powell Signals Potential for Prolonged Higher Interest Rates

Federal Reserve indicates possible extended period of high rates.
Fed Chair Jerome Powell suggested in a speech that policymakers are revising their view of longer-term interest rates upward. This indicates a potential for prolonged higher interest rates as the Federal Reserve continues to combat inflation.

Implications for borrowers and investors.
The possibility of sustained higher interest rates has implications for borrowers and investors, affecting loan costs and investment strategies. Stakeholders are advised to prepare for a financial environment characterized by elevated rates.

Monitoring economic indicators for future decisions.
The Federal Reserve will continue to monitor economic indicators to inform future decisions on interest rates. The central bank's approach will be data-driven, aiming to balance economic growth with inflation control.

BREAKING NEWS
This Week’s Headlines

1. Russia Launches Largest Attack on Kyiv in Months, Then Swaps Prisoners
Ukraine reports over 70 missiles and drones launched at Kyiv—followed by a surprise prisoner exchange that feels a little like sending flowers after breaking the windows.

2. Israel Faces Mounting Pressure From Allies Over Gaza War
U.S. and European allies are pushing Israel for a ceasefire deal as the Gaza war drags on—while Netanyahu’s coalition pulls in the opposite direction.

3. Russia Creating ‘Buffer Zone’ at Ukraine Border, Claims Land Is Now Security Policy
Moscow says it's clearing Ukrainian towns near the border to protect Russian territory, while the West says it looks a lot like an old-school land grab with a PR facelift.

4. Georgia Man Dies in Police Custody After Telling Officers He Couldn’t Breathe
Qaaadir Lewis begged officers for help before collapsing in a jail cell; state officials are now investigating, again.

5. Kim Kardashian Cleared of All Charges in Paris Fashion Week Lawsuit
A French court ruled in favor of Kim K after she was accused of breaching fashion event contracts—proving yet again that designer drama can go all the way to court.

FUN
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ADVICE
This Week’s Business Advice

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