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Warren Buffett shocks shareholders by announcing his intention to retire at the end of the year

SUMMARY:

  • announces after 60 years leading .
  • , longtime deputy, named successor to become CEO.
  • Buffett pledges to keep all his shares invested in Berkshire.
  • Annual meeting drew 40,000 attendees, including Hillary Clinton.

 

, Neb. (AP) — Billionaire Warren Buffett shocked an arena full of shareholders Saturday by announcing that he will retire at the end of the year, bringing the curtain down on a six-decade run leading Berkshire Hathaway that made him the most influential investor in the world.

Buffett said he will recommend to Berkshire Hathaway’s board on Sunday that Vice Chairman Greg Abel should replace him.

“I think the time has arrived where Greg should become the chief executive officer of the company at year end,” Buffett said.

Abel has been Buffett’s designated successor for years, and he already manages all of Berkshire’s noninsurance businesses. But it was always assumed that he would not take over until after Buffett’s death. Previously the 94-year-old Buffett always said he had no plans to retire.

Buffett announced the news at the end of a five-hour question and answer period without taking any questions about it. He said the only board members who knew this was coming were his two children, Howard and Susie Buffett. Abel, who was sitting next to Buffett on stage, had no warning.

Abel returned an hour later without Buffett to conduct the company’s formal business meeting, and he responded to the news.

“I just want to say I couldn’t be more humbled and honored to be part of Berkshire as we go forward,” Abel said.

Many investors have said they believe Abel will do a good job running Berkshire, but it remains to be seen how good he will be at Berkshire’s cash. Buffett endorsed him Saturday by pledging to keep his fortune invested in the company.

“I have no intention — zero — of selling one share of Berkshire Hathaway. I will give it away eventually,” Buffett said. “The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg’s management than mine.”

Thousands of investors in the Omaha arena gave Buffett a prolonged standing ovation after his announcement in recognition of his 60 years leading the company.

During that period Berkshire nearly doubled the returns of the , with a 19.9% compounded annual growth rate compared with the index’s 10.4% gain.

Buffett had such a devoted following among investors that markets would move when his investments were disclosed because so many people copied him.

CFRA research analyst Cathy Seifert said it had to be hard for Buffett to decide to step down.

“This was probably a very tough decision for him, but better to leave on your own terms,” Seifert said. “I think there will be an effort at maintaining a ‘business as usual’ environment at Berkshire. That is still to be determined.”

Abel expected to do well

In many respects, Abel has already been running much of the company for years. But he hasn’t been managing Berkshire’s insurance operations or deciding where to invest all of its cash. He will now take those tasks on, but Vice Chairman Ajit Jain will remain to help oversee the insurance companies.

Investment manager Omar Malik of Hosking Partners in London said before Buffett’s announcement that he wasn’t worried about Berkshire’s future under Abel.

“Not really (worried). He’s had such a long time alongside Warren and a chance to know the businesses,” Malik said about Abel. “The question is will he allocate capital as dynamically as Warren? And the answer is no. But I think he’ll do a fine job with the support of the others.”

Cole Smead of Smead Capital Management said he wasn’t surprised Buffett is stepping down after watching him Saturday because the 94-year-old wasn’t as sharp as in past years. At one point, he made a basic math mistake in one of his answers. At other points, he got off track while telling stories about Berkshire and his investing without answering the question he was asked.

Abel is well regarded by Berkshire’s managers and Buffett has praised his business acumen for years. But he will have a hard time matching Buffett’s legendary performance, and since he doesn’t control 30% of Berkshire’s stock like Buffett does, he won’t have as much leeway.

“I think the challenge he’s going to have is if anyone is going to give him Buffett or (former Vice Chairman Charlie) Munger’s pass card? Not a chance in God’s name,” Smead said. Buffett always enjoyed a devoted following among shareholders.

Buffett has said that Abel might even be a more hands-on manager than he is and get more out of Berkshire’s companies. Managers within the company say they have to be well prepared before talking to Abel because they know he will ask tough questions.

Steven Check, president of Check Capital Management, said he never thought he would see Buffett retire.

“I didn’t think he would retire while his mind is still working so well, nor did I think it’d happen at the annual meeting,” Check said. “But overall I’m very happy for him.”

Buffett earlier warned that Trump’s were harmful

Earlier Saturday, Buffett warned of dire global consequences from President Donald Trump’s tariffs while telling the thousands of investors gathered at his annual meeting that “ should not be a weapon” but “there’s no question that trade can be an act of war.”

Buffett said Trump’s trade policies have raised the risk of global instability by angering the rest of the world.

“It’s a big mistake in my view when you have 7.5 billion people who don’t like you very well, and you have 300 million who are crowing about how they have done,” Buffett said as he addressed the topic on everyone’s mind at the start of the Berkshire Hathaway shareholders meeting.

While Buffett said it is best for trade to be balanced between countries, he doesn’t think Trump is going about it the right way with his widespread tariffs. He said the world will be safer if more countries are prosperous.

Market turmoil doesn’t create big opportunities

Buffett said he just doesn’t see many attractively priced investments that he understands these days, so Berkshire is sitting on $347.7 billion in cash, but he predicted that one day Berkshire will be “bombarded with opportunities that we will be glad we have the cash for.”

Buffett said the recent turmoil in the markets that generated headlines after Trump’s tariff announcement last month “is really nothing.” He dismissed the recent drop as relatively small. He cited when the industrial average went from 240 on the day he was born in 1930 down to 41 during the Great Depression as a truly significant drop in the markets. Currently the Dow Jones Industrial Average sits at 41,317.43.

“This has not been a dramatic bear market or anything of the sort,” he said.

Buffett said he hasn’t bought back any of Berkshire’s shares this year either because they don’t seem to be a bargain either.

Investor Chris Bloomstran, who is president of Semper Augustus Investments Group, told the Gabelli investment conference Friday that a financial crisis might be the best thing for Berkshire because it would create opportunities to invest at attractive prices.

“Berkshire needs a crisis. I mean Berkshire thrives in crisis,” Bloomstran said.

Berkshire meeting attracts thousands

The meeting attracts some 40,000 people every year who want to hear from Buffett, including some celebrities and well-known investors. This year, Hillary Rodham Clinton also attended. Clinton was the last candidate Buffett backed publicly because he has shied away from politics and any controversial topic in recent years for fear of hurting Berkshire’s businesses.

One investor even camped outside the arena overnight to be first in line.

Devan Bisher, 72, said he has faith in Berkshire’s future and does not plan to sell the stock he started buying in the 1980s.

“It’s been a good train to ride,” Bisher said, “and I’m going to stay with it.”

Buffett says US shouldn’t use ‘trade as a weapon’ as Trump has done with tariffs

SUMMARY:

  • Buffett says using as a weapon is a major U.S. mistake
  • Berkshire holds $347.7B in cash, sees few buying opportunities
  • Annual draws 40,000 attendees, including Clinton
  • Buffett supports as successor, but has no plans to retire

, Neb. (AP) — Investor told thousands of shareholders Saturday that the United States shouldn’t use “trade as a weapon” and anger the rest of the world like President Donald Trump has done with his tariffs that roiled global markets..

“It’s a big mistake in my view when you have 7.5 billion people who don’t like you very well, and you have 300 million who are crowing about how they have done,” Buffett said as he addressed the topic on everyone’s mind at the start of the shareholders meeting.

While Buffett said it is best for trade to be balanced between countries, he doesn’t think Trump is going about it the right way with his widespread tariffs. He said the world will be safer if more countries are prosperous.

“We should be looking to trade with the rest of the world. We should do what we do best and they should do what they do best,” he said.

America has been going through revolutionary changes ever since its birth and the promise of equality for all, which wasn’t fulfilled until years later, Buffett said. But nothing that is going on today has changed his long-term optimism about the country.

“If I were being born today, I would just keep negotiating in the womb until they said, ‘You could be in the United States,’” Buffett said.

Market turmoil doesn’t create big opportunities

Buffett said he just doesn’t see many attractively priced investments that he understands these days, so Berkshire is sitting on $347.7 billion in cash, but he predicted that one day Berkshire will be “bombarded with opportunities that we will be glad we have the cash for.”

Buffett said the recent turmoil in the markets that generated headlines after Trump’s tariff announcement last month “is really nothing.” He dismissed the recent drop in the market because he’s seen three periods in the last 60 years of managing Berkshire when his company’s stock was halved. He cited when the industrial average went from 240 on the day he was born in 1930 down to 41 during the Great Depression as a truly significant drop in the markets. Currently the Dow Jones Industrial Average sits at $41,317.43.

“This has not been a dramatic bear market or anything of the sort,” he said.

Buffett said he hasn’t bought back any of Berkshire’s shares this year either because they don’t seem to be a bargain either.

Investor Chris Bloomstran, who is president of Semper Augustus Investments Group, told the Gabelli investment conference Friday that a financial crisis might be the best thing for Berkshire because it would create opportunities to invest at attractive prices.

“I’m sure he’s praying that the gets worse. He won’t say that publicly, but Berkshire needs a crisis. I mean Berkshire thrives in crisis,” Bloomstran said.

Berkshire meeting attracts thousands

The meeting attracts some 40,000 people every year who want to hear from Buffett, including some celebrities and well-known investors. This year, Hillary Rodham Clinton also attended. Clinton was the last candidate Buffett backed publicly because he has shied away from politics and any controversial topic in recent years for fear of hurting Berkshire’s businesses.

Haibo Liu even camped out overnight outside the arena to be first in line Saturday morning. Liu said he worries that this year could be Buffett’s last meeting since he is 94, so he made it a priority to attend his second meeting.

“He has helped me a lot,” said Liu who traveled from China to attend. “I really want to express my thanks to him.”

Worries about replacing Buffett

Shareholder Linda Smith, 73, first learned about Warren Buffett and Berkshire Hathaway when she rented a room from his sister, Doris, while she was a graduate student in Washington D.C. Smith said Doris came home from an not long after Berkshire bought See’s Candy and told her she had to buy the stock.

Smith couldn’t buy it immediately because the price of a single share was selling for about $3,400 and that was equal to her income as a grad student. But as soon as she got a job after college, she took her friend’s advice and began saving up to buy some of the stock that now sells for $809,350.

Over the years, Smith estimates she has probably attended about 20 annual meetings — often bringing a friend.

“I really like to listen to Warren Buffett — particularly this year with everything that has happened,” Smith said.

Buffett has long said he has no plans to retire because he enjoys figuring out where to invest Berkshire’s money too much. He plans to continue working until he dies or becomes incapacitated. But he remains in good health even though he does use a cane, and he shortened the meeting’s question and answer period this year by a couple of hours.

“I think even if he dies, these businesses will retain their value,” Smith said while looking around the 200,000-square-foot exhibit hall filled with booths from Berkshire companies like BNSF railroad, Geico insurance, Pilot truck stops, Duracell batteries and many others. “I anticipate my stock going down for a while but good businesses and good people will come back,” she said.

But Smith and thousands of others will definitely miss hearing Buffett’s voice of reason after he is gone. Buffett has now been leading Berkshire for 60 years.

Buffett has said that Vice Chairman Greg Abel, who already oversees all of Berkshire’s non-insurance businesses, will take over as CEO when he is gone.

Shareholders like Steven Check, who runs Check Capital Management, aren’t especially worried about because Abel is proven and Berkshire’s businesses largely run themselves. Buffett has said that Abel might even be a more hands-on manager than he is and get more out of Berkshire’s companies.

“I think we’ll get a more hands-on manager and that could be that a good thing,” Check said. But he said Abel also knows that those managers enjoy the freedom to run their businesses and Abel isn’t going to do anything to turn them off.

Georgia-Pacific to close Emporia mill, cutting 550+ jobs

Southern Virginia is getting hit again. Employees at ‘s plywood were told Friday that the company plans to permanently close the mill, with more than 550 workers losing their jobs, according to an announcement by the Georgia-based company that is one of the world’s top manufacturers and marketers of tissue, pulp, paper and related products.

In a Friday statement, U.S. Rep. Jennifer McClellan, D-Petersburg, put the number of workers who lost their jobs in Emporia at 554.

It’s a major blow to a region that last year lost 600 jobs after Boar’s Head shut down its Jarratt plant following a listeria outbreak that killed at least 10 people and sickened dozens more.

In a news release, Georgia-Pacific stated that housing affordability and a 30-year low in existing are impacting its plywood business.

“Many of our plywood products are used in repair-and-remodel projects, which often occur when homes change ownership,” the release stated. “To align with current demand, we are reducing our production capacity.”

Normal operations will cease at the Emporia mill today and the site will permanently close July 1. Georgia-Pacific will give employees at least 60 days of pay and benefits in accordance with the Worker Adjustment and Retraining Notification Act.

Georgia-Pacific stated it would make a decision on the Emporia facility and property at a later date.

“My heart goes out to every family who now faces increased anxiety and potential hardship because of these , and I encourage impacted families to reach out to my office for help navigating resources they may need during this time,” McClellan said in a statement about the layoffs. “My office remains in contact with Georgia-Pacific and local officials to ensure the impacted employees receive access to job placement resources and support agencies.”

Georgia-Pacific will work with the laid-off employees in Emporia, the company said, “to provide access to local support agencies and job placement resources, including available opportunities within Georgia-Pacific or other Koch companies.”

Northern Virginia home listings surged 63% in March over 2024


SUMMARY:

  • Active in rose 63.6% in March
  • Federal job cuts may be boosting region’s
  • Northern Virginia market still tight
  • Median home price reached $755,625, up 3.5% from March 2024

In what the describes as a “striking divergence from national patterns,” Northern Virginia saw a 63.6% year-over-year increase in active monthly listings for March.

Nationally, total rose 19.8% in March over the same month in 2024, according to the National Association of Realtors.

“It’s certainly an uptick, and it’s an uptick that I think you almost have to say has to be attributable in some part to the labor turmoil in the federal sector and in contractors because of these cutbacks and announced job ,” said Terry Clower, professor of public policy at ‘s Schar School of Policy and Government.

Since President Donald Trump returned to the White House in January, tens of thousands of federal employees have been fired or put on leave as part of a measure to cut federal spending. Trump has also cut federal contracts, which has led to layoffs in the government contracting industry.

No firm data yet exists on how many Northern Virginia residents have lost their federal jobs.

At least 175,000 federal workers lived in the region as of 2023, according to data from the Northern Virginia Regional Commission. And the unemployment rate for Northern Virginia in March was 3.2%, up from 2.8% in January.

Putting your home on the market after losing a job or after witnessing your neighbors lose their jobs, Clower said, is a “very rational response.”

On the other hand, Matthew Cypher, director of the Steers Center for Global Real Estate at Georgetown’s McDonough School of Business, cautioned Friday that an increase in active listings for one month isn’t enough data to declare the sky is falling for Northern Virginia’s .

“Some might suggest that we’ve needed some churn like this to give other people an opportunity to buy into the market,” he said.

In March, there were 1,980 homes for sale in Northern Virginia, according to NVAR data released last week. There were 1,520 active listings in the region in February.

NVAR CEO Ryan McLaughlin described the increase in active listings as “breathing room” in an April 24 statement about the data.

“Rising inventory means buyers have more options, and sellers can expect more informed, competitive offers,” he stated. “This shift represents a healthier, more sustainable market for the long term.”

For Northern Virginia, March’s monthly supply of inventory (MSI) — a measure of how many months homes would remain on the market if no new inventory were added  — increased to 1.45 months, a 58% increase over the previous year and a 25% increase over February.

Even with the jump in inventory, Clower pointed out, Northern Virginia still has a tight real estate market. “We are still way below … the level of inventory for for-sale homes … 10 years ago,” he said.

Other real estate numbers

March saw 1,202 home sales closed in Northern Virginia, a 0.9% year-over-year increase. New pending sales increased 5.5% from March 2024 to 1,695 units.

“There hasn’t been much of a change in actual sales activity, say, versus the same month of last year, which actually then makes the escalation in listings look even more dramatic,” Clower said. “What you would normally see in this very tight market is if more homes came on to the market, there would be almost an equal number of sales.”

Homes spent an average of 18 days on the market last month, a 12.5% increase over the same period last year.

The median sale price last month in Northern Virginia was $755,625, up 3.5% compared with March 2024.

“Buyers are still willing to pay a premium for homes in our area,” Sherry Rahnama, a NVAR board member, said in a statement.

NVAR reports home sales activity for Fairfax and Arlington counties, the cities of , Fairfax and Falls Church, and the towns of Vienna, Herndon and Clifton.

Wall Street extends its gains to a 9th straight day, reclaiming losses since tariff escalation

SUMMARY:

  • hits 9-day winning streak, longest since 2004
  • Strong April job growth boosts market confidence
  • Tech and financial lead broad market gains
  • U.S.-China war tensions ease amid tariff delays

Wall Street extended its gains to a ninth straight day Friday, marking the ‘s longest winning streak since 2004 and reclaiming the ground it lost since President Donald Trump escalated his in early April.

The rally was spurred by a better-than-expected report on the U.S. job market and resurgent hope for a ratcheting down in the U.S. trade showdown with China.

The climbed 1.5%. The Dow Jones Industrial Average added 1.4%, and the Nasdaq composite rose 1.5%.

The gains were broad. Roughly 90% of stocks and every sector in the S&P 500 advanced. Technology stocks were among the companies doing the heaviest lifting. rose 2.3% and Nvidia rose 2.5%. Apple, however, fell 3.7% after the iPhone maker estimated that will cost it $900 million.

Banks and other financial companies also made solid gains. JPMorgan Chase rose 2.3% and Visa closed 1.5% higher.

Employers added 177,000 jobs in April. That marks a in hiring from March, but it was solidly better than economists anticipated. However, the latest job figures don’t yet reflect the effects on the economy of President Donald Trump’s across-the-board tariffs against America’s trading partners. Many of the more severe tariffs that were supposed to go into effect in April were delayed by three months, with the notable exception of tariffs against China.

“We’ve already seen how will react if the administration moves forward with their initial tariff plan, so unless they take a different tack in July when the 90-day pause expires, we will see market action similar to the first week of April,” said Chris Zaccarelli, chief investment officer for Northlight Asset Management.

The S&P 500 slumped 9.1% during the first week of April as Trump announced a major escalation of his trade war with more tariffs. The market has now clawed back its losses since then, helped by a string of resilient earnings reports from U.S. companies, hopes for de-escalation of trade tensions with China and expectations that the Federal Reserve will still be able to cut rates a few times this year.

The benchmark index is still down 3.3% so far this year, and 7.4% below the record it reached in February.

All told, the S&P 500 rose 82.53 points to 5,686.67. The Dow gained 564.47 points to 41,317.43, and the Nasdaq added 266.99 points to 17,977.73.

The job market is being closely watched for signs of stress amid trade war tensions. Strong employment has helped fuel solid consumer spending and economic growth over the last few years. Economists are now worried about the impact that taxes on imports will have on consumers and businesses, especially about how higher costs will hurt hiring and spending.

The economy is already showing signs of strain. The U.S. economy shrank at a 0.3% annual pace during the first quarter of the year. It was slowed by a surge in imports as businesses tried to get ahead of Trump’s tariffs.

The current round of tariffs and the on-again-off-again nature of Trump’s policy has overshadowed planning for businesses and households. Companies have been cutting and withdrawing financial forecasts because of the uncertainty over how much tariffs will cost them and how much they will squeeze consumers and sap spending.

Hopes remain that Trump will roll back some of his tariffs after negotiating trade deals with other countries. China has been a key target, with tariffs of 145%. Its Commerce Ministry said Beijing is evaluating overtures from the U.S. regarding the tariffs.

Investors had a relatively quiet day of earnings reports following a busy week. Exxon Mobil rose 0.4%, recovering from an early slide, after reporting its lowest first-quarter profit in years. Rival Chevron rose 1.6% after it also reported its smallest first-quarter profit in years.

Falling crude oil prices have weighed on the sector. Crude oil prices in the U.S. are down about 17% for the year. They fell below $60 per barrel this week, which is a level at which many producers can no longer turn a profit.

Block slumped 20.4% after reporting a sharp drop in first-quarter profit that fell short of analysts’ forecasts. The financial technology company behind Cash App cited a pullback in consumer spending on travel and other discretionary items as a key reason for the results.

Treasury yields rose in the bond market. The yield on the 10-year Treasury rose to 4.31% from 4.22% late Thursday.

I voted for Trump. His tariff exclusions don’t reflect conservative strength


SUMMARY:

  • In an op-ed, an business founder and managing partner says President Donald Trump’s are causing economic uncertainty and industry decline
  • Protectionism in the 1920s and early 1930s under President Hoover turned a recession into the Great Depression
  • argues that Trump’s tariffs also may keep the nation from addressing growing national debt
  • He calls for Trump to focus on innovation and investment initiatives the president campaigned on

It was a sweltering day both in temperature and temperament when a businessman president signed a tariff bill that Henry Ford famously called “economic stupidity.” When President Herbert Hoover enacted what would become the country’s last major experiment with protectionism, in the form of the Smoot-Hawley Tariff of 1930, Ford and over a thousand economists warned against crafting economic policy out of fear rather than strength.

Fast forward to today. Millions of Americans enthusiastically voted for President Donald Trump, including myself, because he promised to restore American strength by unleashing innovation and industry to lead the world. That vision remains compelling. But tariffs do not project strength; they signal decline. This week’s GDP first quarter contraction announcement is a relevant example, as businesses hold on to capital amid uncertainty.

The U.S. Chamber of Commerce just asked the White House for a “tariff exclusion process” in order to prevent a recession. They asked to automatically lift tariffs on all small business importers and on all products that “cannot be produced in the U.S.” or are not domestically available.

The Jones Act of 1920 is a clear example of how protectionism stifles growth. Enacted to preserve national security by supporting a domestic shipbuilding base, it now functions as a drag on economic dynamism. The law drives up transportation costs by requiring that goods moved between U.S. ports be carried on American-built, -owned, and -crewed ships, especially in non-contiguous states and territories like Puerto Rico, Hawaii and Alaska. U.S.-built vessels cost up to five times more than foreign-built ships, making domestic shipbuilding globally uncompetitive.

A 2020 Cato Institute analysis found that the U.S. accounts for less than 1% of global commercial shipbuilding. Instead of catalyzing innovation, the Jones Act locks in inefficiency, shrinks market competition, and raises costs across entire supply chains. This isn’t just a protectionist relic; it’s a lasting threat to our and sovereignty.

Republicans have long opposed tariffs not out of blind loyalty to free-market doctrine but because they’ve seen firsthand damage from the Jones Act and the Smoot-Hawley Tariff of 1930. It didn’t protect workers, it punished them. It shattered supply chains, destroyed exports and helped turn a recession into a depression.

The Plymouth Cordage Company, once the world’s largest rope manufacturer, serves as a cautionary tale. Founded in 1824, it grew into a major employer and industrial innovator. But, its margins collapsed when Smoot-Hawley imposed tariffs on imported fibers like sisal and manila. The company struggled to adapt and was eventually acquired in the 1950s. The broader industry shrank by half in the five years following Smoot-Hawley.

Free innovation and trade have long been the engine of American prosperity. Economist Robert Solow estimated that technological progress accounts for over 80% of long-term U.S. per capita income growth. Entirely new industries from cloud computing to biotech have emerged from this shift. The U.S. leads the world in service exports, with a growing surplus driven by intellectual property, finance, and technology. Despite comprising less than 5% of the world’s population, Americans generate over 20% of global income. Our strength comes not from isolation but from integration with the global economy and a relentless capacity to innovate.

The industrial re-shoring President Trump rightly champions doesn’t require tariff-based affirmative action or a return to outdated models. It requires the same bold innovation we saw in Operation Warp Speed. Or the market-driven energy revolution of the 1970s, when the U.S. responded to crisis not by retreating but by unlocking domestic capacity. In 1977, the U.S. imported 46.5% of its petroleum. Today, we are net energy exporters. That’s what American strength looks like.

Tariffs don’t just harm industry; they jeopardize the nation’s ability to address its most urgent economic challenge: the federal deficit.

For 70 years, the U.S. has enjoyed extraordinary fiscal privilege as issuer of the world’s reserve currency. That status created what was effectively a limitless credit card. It enabled the nation to fight two wars while cutting taxes and bailing out the economy during the 2008 financial crisis and COVID-19 without triggering a collapse in investor confidence. But now, the limits of that privilege are being tested.

Debt has surpassed $36 trillion, and interest payments are projected to soon exceed the entire defense budget. Left unaddressed and compounded by demographic shifts, this trend will undermine the country’s ability to respond to the next crisis.

Businesses aren’t revived from default by cost-cutting alone. You have to innovate and grow. The same principle applies nationally. Pro-growth, pro-investment policies, not protectionist barriers, are what drive innovation, rebuild industrial strength and restore fiscal sustainability.

The president’s decision to pause new tariffs was a step in the right direction. However, the recent statements about complicated tariff exclusions is no way to govern. Businesses still face deep uncertainty. No company can commit to long-term investments when its cost structure may shift every 90 days. That kind of volatility discourages hiring, delays expansion and weakens the very growth the country needs to outpace its debt.

President Trump has a bold vision for a new golden age of American strength. That vision is within reach, but only if the country doubles down on the innovation, investment and fiscal responsibility that President Trump campaigned on.

Reviving American greatness means building forward, not looking backward. We win the future not by raising walls around our economy but by building and dominating industries that will define the next century.

Tanveer Kathawalla is the founder and managing partner of , an Alexandria-based investment company. He is a graduate of George Washington University and has an MBA in finance from the University of Virginia’s Darden School of Business.

General Dynamics submarine designers to strike on May 18 if contract deal isn’t reached


SUMMARY:

  • 2,500 workers may strike shipyard on May 18
  • Union demands include wage hikes, pension restoration, COLA
  • Contract talks continue after April 4 contract expiration
  • awarded $12.4B Navy contract for submarines

GROTON, Conn. (AP) — About 2,500 workers at General Dynamics’ Electric Boat shipyard in Connecticut plan to strike on May 18 if a tentative contract agreement is not reached with the , the union president announced during a rally Thursday.

About 300 union members cheered the announcement made by Bill Louis, president of the Marine Draftsmen’s Association-United Auto Workers of America, Local 571, The Day of New London newspaper reported.

“We’re officially putting the company on notice that if we don’t have an agreement at 11:59 p.m., we strike at midnight May 18,” Louis told the union members, most of whom are essentially responsible for designing the U.S. Navy’s nuclear submarine fleet.

A message was left seeking comment with an EB spokesperson in Groton.

The looming strike comes as a day after the U.S. Navy awarded EB’s parent company, -based General Dynamics, a contract worth more than $12.4 billion for the construction of two Virginia-class submarines authorized during last fiscal year. The funding also covers improved worker pay.

More than two-thirds of the union membership voted last month to authorize a strike if a deal couldn’t be reached on a new contract.

The union’s contract expired on April 4, but leadership has agreed to continue bargaining with EB. They’ve demanded higher wages over four years, the restoration of pension benefits for all members, cost of living adjustments and profit sharing with General Dynamics, among other changes.

“The clock has run out on corporate greed,” President Shawn Fain told members during a rally last month. “And I’ll tell you, this is a new UAW where the membership comes first and we refuse to aim low and settle lower.”

EB’s earlier now-expired offer had included a 23.3% general wage increase over the life of the contract, plus benefits and an increased package.

The company has acknowledged it has been “actively preparing a business continuity plan in the event of a work stoppage,” adding it will “not waver from our commitment to continue building submarines, the nation’s top national security priority.”

Home ownership further out of reach as rising prices, high mortgage rates widen affordability gap

SUMMARY:

  • Buyers now need $114K income to afford a median-priced home
  • average 6.76%, up from 4.1% six years ago
  • rose over 50% between 2019 and 2024
  • Listings and price reductions are increasing in many cities



LOS ANGELES (AP) — Home ownership is receding further out of reach for most Americans as elevated mortgage rates and rising prices stretch the limits of what buyers can afford.

A homebuyer now needs to earn at least $114,000 a year to afford a $431,250 home — the national median listing price in April, according to data released Thursday by

The analysis assumes that a homebuyer will make a 20% down payment, finance the rest of the purchase with a 30-year fixed-rate mortgage, and that the buyer’s housing costs won’t exceed 30% of their gross monthly income — an often-used barometer of housing affordability.

Based off the latest U.S. median home listing price, need to earn $47,000 more a year to afford a home than they would have just six years ago. Back then, the median U.S. home listing price was $314,950, and the average rate on a 30-year mortgage hovered around 4.1%. This week, the rate averaged 6.76%.

The annual income required to afford a median-priced U.S. home first crossed into the six figures in May 2022 and hasn’t dropped below that level since. Median household income was about $80,600 annually in 2023, according to the U.S. Census bureau.

In several metro areas, including San Francisco, Los Angeles, New York and Boston, the annual income needed to afford a median-priced home tops $200,000. In San Jose, it’s more than $370,000.

Rock-bottom mortgage rates turbocharged the during the pandemic, fueling bidding wars for homes that pushed up sale prices sometimes hundreds of thousands of dollars above a seller initial asking price. U.S. soared more than 50% between 2019 and 2024.

The U.S. housing market has been in a sales slump since 2022, when mortgage rates began to climb from their pandemic-era lows. Sales of previously occupied U.S. homes fell last year to their lowest level in nearly 30 years. In March, they posted their largest monthly drop since November 2022.

It’s not all bad news for prospective homebuyers.

Home prices are rising much more slowly than during the pandemic housing market frenzy. The national median sales price of a previously occupied U.S. home rose 2.7% in March from a year earlier to $403,700, an all-time high for March, but the smallest annual increase since August.

In April, the median price of a home listed for sale rose only 0.3% from a year earlier, according to Realtor.com.

Buyers who can afford current mortgage rates have a wider selection of properties now than a year ago.

Active listings — a tally that encompasses all homes on the market except those pending a finalized sale — surged 30.6% last month from a year earlier, according to Realtor.com. jumped between 67.6% and 70.1% in San Diego, San Jose and Washington D.C.

As properties take longer to sell, more sellers are reducing their asking price. Some 18% of listings had their price reduced last month, according to Realtor.com.

“Sellers are becoming more flexible on pricing, underscored by the price reductions we’re seeing, and while higher mortgage rates are certainly weighing on demand, the silver lining is that the market is starting to rebalance,” said Danielle Hale, chief economist at Realtor.com. “This could create opportunities for buyers who are prepared.”

Wall Street gains ground following a stronger-than-expected report on the US job market

SUMMARY:

  • gains 1.3%, aiming for nine-day win streak
  • U.S. adds 177,000 jobs in April, beating expectations
  • Microsoft and lead tech sector gains; Apple slips
  • Tariff tensions still loom over economic and market outlook



NEW YORK (AP) — rose in morning trading on Friday following a stronger-than-expected report on the U.S. job market.

The S&P 500 gained 1.3%, putting the index on track for a ninth straight day of gains. The Industrial Average rose 449 points, or 1.1%, as of 11:06 a.m. Eastern. The Nasdaq composite rose 1.4%.

The gains were broad. Technology stocks were among the companies doing the heaviest lifting. Microsoft surged 2.1% and Nvidia rose 2.6%. Apple, however, fell 3.3% after the iPhone maker estimated that tariffs will cost it $900 million.

Banks and other financial companies also made solid gains. JPMorgan Chase rose 2.1% and Visa jumped 1.6%.

Employers added 177,000 jobs in April. That marks a in hiring from March, but it was solidly better than economists anticipated. However, the latest job figures don’t yet reflect the effects on the of President Donald Trump’s across-the-board tariffs against America’s trading partners. Many of the more severe tariffs that were supposed to go into effect in April were delayed by three months, with the notable exception of tariffs against China.

“We’ve already seen how will react if the administration moves forward with their initial tariff plan, so unless they take a different tack in July when the 90-day pause expires, we will see market action similar to the first week of April,” said Chris Zaccarelli, chief investment officer for Northlight Asset Management.

The S&P 500 slumped 9.1% during the first week of April as Trump announced a major escalation of his with more tariffs. The market has now clawed back its losses since then, helped by a string of resilient earnings reports from U.S. companies, hopes for de-escalation of tensions with China and expecations that the Federal Reserve will still be able to cut rates a few times this year.

The job market is being closely watched for signs of stress amid trade war tensions. Strong employment has helped fuel solid consumer spending and economic growth over the last few years. Economists are now worried about the impact that taxes on imports will have on consumers and businesses, especially about how higher costs will hurt hiring and spending.

The economy is already showing signs of stress. The U.S. economy shrank at a 0.3% annual pace during the first quarter of the year. It was slowed by a surge in imports as businesses tried to get ahead of Trump’s tariffs.

The current round of tariffs and the on-again-off-again nature of Trump’s policy has overshadowed planning for businesses and consumers. Companies have been cutting and withdrawing financial forecasts because of the uncertainty over how much tariffs will cost them and how much they will squeeze consumers and sap spending.

Hopes remain that Trump will roll back some of his tariffs after negotiating trade deals with other countries. China has been a key target, with tariffs of 145%. Its Commerce Ministry said Beijing is evaluating overtures from the U.S. regarding the tariffs.

Investors had a relatively quiet day of earnings reports following a busy week. Exxon Mobil fell 0.2% after reporting its lowest first-quarter profit in years. Rival Chevron rose 0.5% after it also reported its smallest first-quarter profit in years.

Falling crude oil prices have weighed on the sector. Crude oil prices in the U.S. are down about 18% for the year. They fell below $60 per barrel this week, which is a level at which many producers can no longer turn a profit.

Block slumped 21.9% after reporting a sharp drop in first-quarter profit that fell short of analysts’ forecasts. The financial technology company behind Cash App cited a pullback in consumer spending on travel and other discretionary items as a key reason for the results.

Treasury yields rose in the bond market. The yield on the 10-year Treasury rose to 4.30% from 4.22% late Thursday.

Phenix Commerce Center lands first tenant

SUMMARY:

Global e-commerce fulfillment, warehousing and logistics provider Cirro Global will be the first tenant to move into Phenix Commerce Center in Hampton.

Cirro, also known as US Elogistics Services, is 149,685 square feet in one of the two warehouses at 30 Aberdeen Road. According to a Thursday news release, the transaction marks the largest lease in the region for a newly constructed Class A facility in over a year.

“The City of Hampton is excited to welcome US Elogistics Services Corp. as the first tenant in the new Phenix Commerce Center,” Mayor Jimmy Gray said in a statement. “Hampton’s world-class workforce, proximity to the Port of Virginia, and transportation infrastructure are essential ingredients for the success of this project in addition to the new industrial space that the company will occupy. We look forward to US Elogistics Services Corp.’s long-term success in Hampton.”

Kansas City, Missouri-based NorthPoint Development broke ground on the two-building, 840,000-square-foot in November 2023 and wrapped up construction in January. The site has a 540,470-square-foot warehouse, Building 1, and the almost 300,000-square-foot warehouse that Cirro will be occupying, Building 2.

NorthPoint built the $113.8 million project on the former site of the Virginia School for the Deaf and Blind and Multi-Disabled, a state facility that closed in 2008.

Hampton City Council’s 2022 vote to allow NorthPoint to transform the former school’s 63-acre site into industrial warehouses was controversial, with critics contending it was an inappropriate way to honor the school’s legacy and fearing the project would bring noise and traffic. But Hampton officials at the time cited local tax revenue that would be generated as well as the developer’s estimated creation of 250 jobs as beneficial aspects to the project.

NorthPoint declined to disclose the financial terms of the lease. NorthPoint spokesperson Natasha Rickel said that Cirro plans to move to the site this summer. Cirro did not immediately return requests for comment seeking more information about what it plans to do with the leased space.

Cirro has more than 80 fulfillment centers in over 30 countries. It provides cross-border and domestic shipping as well as e-commerce services. Its North American headquarters is located in Monroe Township, New Jersey.

NorthPoint does not yet know what companies will lease the remainder of the Phenix center.

“Our brokerage team, Colliers, has been fielding inquiries and showing the available space to other potential tenants,” Rickel said in an email. “I can’t speak to any specific move-in dates because we don’t have any signed lease agreements quite yet, but we are actively showing the space.”

NorthPoint believes the proximity to the Port of Virginia will be attractive for potential tenants that may find Hampton a good fit for their business needs.

“The Port of Virginia welcomes Cirro to its new facility in Hampton,” said CEO Stephen Edwards in a statement. “This strategic location will help Cirro capitalize on the efficiency, growth and global reach of America’s most modern gateway, The Port of Virginia. We look forward to supporting this opportunity.”