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China, U.S. eye tariff pause extension after talks

  

SUMMARY:  

  • China and U.S. held two days of trade talks in Stockholm 
  • Officials discussed extending the Aug. 12 tariff deadline 
  • China says discussions were “candid and constructive” 
  • U.S. team to consult with President Trump on next steps 

 

STOCKHOLM (AP) — The United States and China have agreed to work on extending a deadline for new tariffs on each other after two days of trade talks in Stockholm concluded on Tuesday, according to Beijing’s top trade official.

The U.S. side says the extension was discussed, but not decided.

China’s international trade representative  said the two sides had “in-depth, candid and constructive” discussions and agreed to work on extending a pause in tariffs beyond an Aug. 12 deadline for a .

“Both sides are fully aware the importance of maintaining a stable, healthy China-U.S. economic and trade relations,” Li said, without elaborating how the extension would work.

U.S. Treasury Secretary Scott Bessent described the talks as a “very fulsome two days with the Chinese delegation.”

He said they touched on U.S. concerns over China’s purchase of Iranian oil, supplying Russia with dual-use tech that could be used on the battlefield, and manufacturing goods at a rate beyond what is sustained by global demand.

“We just need to de-risk with certain, strategic industries, whether it’s the rare earths, semiconductors, medicines, and we talked about what we could do together to get into balance within the relationship,” Bessent said.

He stressed that the U.S. seeks to restore domestic manufacturing, secure purchase agreements of U.S. agricultural and energy products, and reduce trade deficits.

Meeting in the Swedish capital

The latest round of talks opened Monday in Stockholm to try to break a logjam over tariffs that have skewed the pivotal commercial ties between the world’s two largest economies.

The two sides previously met in Geneva and London to address specific issues — triple-digit tariffs that amounted to a trade embargo and export controls on critical products — China’s chokehold on rare earth magnets, and U.S. restrictions on semiconductors.

Monday’s discussions lasted nearly five hours behind closed doors at the office of Swedish Prime Minister Ulf Kristersson. Before the talks resumed Tuesday, Kristersson met with Bessent and U.S. Trade Representative over breakfast.

A possible Trump-Xi meeting

The talks in Stockholm unfolded as President Donald Trump is mulling plans to meet Chinese President Xi Jinping, a summit that could be a crucial step toward locking in any major agreements between their two countries.

“I would say before the end of the year,” Trump told reporters aboard Air Force One on Tuesday.

On his Truth Social media platform, Trump insisted late Monday that he was not “seeking” a summit with Xi, but may go to China at the Chinese leader’s invitation, “which has been extended. Otherwise, no interest!”

Bessent told reporters the summit was not discussed in Stockholm but that they did talk about “the desire of the two presidents for the trade team and the Treasury team to have trade negotiations with our Chinese counterparts.”

Greer said the American team would head back to Washington and “talk to the president about” the extension of the August deadline and see “whether that’s something that he wants to do.”

Striking tariff deals

The U.S. has struck deals over tariffs with some of its key trading partners — including Britain, Japan and the European Union — since Trump announced earlier in July elevated tariff rates against dozens of countries. China remains perhaps the biggest challenge.

“The Chinese have been very pragmatic,” Greer said in comments posted on social media by his office late Monday. “We have tensions now, but the fact that we are regularly meeting with them to address these issues gives us a good footing for these negotiations.”

Many analysts had expected that the Stockholm talks would result in an extension of current tariff levels, which are far lower than the triple-digit percentage rates proposed as the U.S.-China tariff tiff reached a crescendo in April, sending world markets into a temporary tailspin.

The two sides backed off the brink during bilateral talks in Geneva in May and agreed to a 90-day pause — which ends Aug. 12 — of those sky-high levels. They currently stand at of 30% on Chinese goods, and China’s 10% tariff on U.S. products.

The long view

While China has offered few specifics of its goals in the Stockholm talks, Bessent has suggested that the situation has stabilized to the point that Beijing and Washington can start looking toward longer-term balance between their economies.

Since China vaulted into the global trading system more than two decades ago, Washington has sought to press Beijing to encourage more consumption at home and offer greater market access to foreign, including American-made goods.

Wendy Cutler, a former U.S. trade negotiator and now vice president at the Asia Society Policy Institute, said Trump’s team would today face challenges from “a large and confident partner that is more than willing to retaliate against U.S. interests.”

Rollover of tariff rates “should be the easy part,” she said, warning that Beijing has learned lessons since the first and “will not buy into a one-sided deal this time around.”

Goodbye Stockholm

Bessent said the “overall tone of the meetings was very constructive” while Li said the two sides agreed in Stockholm to keep close contact and to “communicate with each other in a timely manner on trade and economic issues.”

On Monday, police cordoned off a security zone along Stockholm’s vast waterfront as rubbernecking tourists and locals sought a glimpse of the top-tier officials through a phalanx of TV news cameras lined up behind metal barriers.

Flagpoles at the prime minister’s office were festooned with the American and Chinese flags.

Congressional committee demands GMU president testify

Summary

  • GMU president called to testify before congressional committee
  • House Judiciary investigating “discrimination” at Mason
  • University is under four federal investigations opened in July

President , whose university already faces four federal investigations launched this month by the , has now been called to testify before the -controlled .

U.S. Rep. Jim Jordan, the committee’s chairman, and U.S. Rep. Chip Roy, chair of the Subcommittee on the Constitution and Limited Government, sent Washington a letter Tuesday stating, “[I]t appears there is a pervasive culture of intolerance at George Mason that violates the spirit, if not the letter, of the Act. During your tenure, George Mason seems to have engaged in racial discrimination in the hiring and promotion of faculty and staff contrary to both federal statutes and executive order.”

The Ohio and Texas congressmen, both Republicans, requested extensive information about George Mason’s diversity, equity and inclusion programs, which the letter says are in violation of the Civil Rights Act of 1964. The letter requested that Washington appear for a “transcribed interview” with the committee.

The letter also demands that Washington produce “all documents and communications” from his first day as George Mason’s president (July 1, 2020) to the present regarding DEI, “antiracism, and/or inclusive excellence,” as well as any document referring to a job applicant’s race or gender, the use of race or diversity in the hiring of faculty or staff, and the university’s antiracism and inclusive excellence task force and equity advisers programs. It asks for any document from Nov. 1, 2024, to the present that is related to compliance with a federal mandate or executive order related to DEI.

The documents are due by 10 a.m. Aug. 12, and Washington must schedule his testimony by that date, the letter says.

The congressmen’s letter, made public in a news release Tuesday, echoes the U.S. ‘s July 17 investigation and the U.S. Department of Education’s July 10 probe into alleged race- and sex-based discrimination in hiring and promotions at George Mason that disadvantage white and male candidates, allegations Washington denied in a statement earlier this month.

Meanwhile, George Mason faculty groups and others, including federal and state Democratic lawmakers and regional business organizations, have defended Washington, who is George Mason’s first Black president. Many have accused the Trump administration of using its powers to drive Washington out of office, drawing parallels to Jim Ryan’s resignation as the University of Virginia’s president in June, after a similar campaign by the DOJ’s civil rights division accused Ryan of failing to dismantle U.Va.’s DEI structures.

The congressmen’s letter accuses George Mason, the state’s largest public university by enrollment, of not fully complying with federal law following President Donald Trump’s executive order eliminating DEI offices at universities. “George Mason simply changed its name to the ‘Office of Access, Compliance and Community,'” the letter alleges, with the university making “mere cosmetic changes to its discriminatory DEI programs.”

On Friday, the Justice Department’s civil rights division targeted the university’s faculty senate, which passed a resolution last week in support of Washington, and requested in a letter that the members of the senate and the president’s office preserve “all written communications” regarding the resolution, including earlier drafts, emails, texts and voice mails.

American Association of University Professors President Todd Wolfson, a Rutgers University professor, issued a statement Tuesday in support of the Mason and called the DOJ letter “a gross misuse of federal power to chill speech, silence faculty members, and undermine shared governance. It is an attack on academic freedom, plain and simple.”

He also called on George Mason’s , which is set to meet Friday and to discuss Washington’s job performance, to “stand with their faculty and president by rejecting this attempt to weaponize federal authority against shared governance. They must not only refuse the DOJ’s request but also affirm that faculty speech will be protected, not punished.”

U.S. job openings dip to 7.4M as market cools

  

SUMMARY:  

  • June fell to 7.4M from 7.7M in May 
  • Quit rate declined, suggesting reduced worker confidence 
  • Layoffs remained largely unchanged last month 
  • Fed rate hikes and trade uncertainty slowing hiring 

 

WASHINGTON (AP) — Employers posted 7.4 million job vacancies last month, a sign that the American job market continues to cool.

The Labor Department reported Tuesday that job openings in June were down from 7.7 million in May and were about what forecasters had expected.

The Job Openings and Labor Turnover Survey (JOLTS) showed that layoffs were little changed in June. But the number of people quitting their jobs — a sign of confidence in their prospects elsewhere — dropped last month to the lowest level since December. Hiring also fell from May.

Posting on Bluesky, Glassdoor economist Daniel Zhao wrote that the report “shows softer figures with hires and quits rates still sluggish. Not dire, not amazing, more meh.”

The U.S. job market has lost momentum this year, partly because of the lingering effects of 11 interest rate hikes by the inflation fighters at the in 2022 and 2023 and partly because President Donald Trump’s have created uncertainty that is paralyzing managers making hiring decisions.

On Friday, the Labor Department will put out unemployment and hiring numbers for July. They are expected to show that the unemployment rate ticked up to a still-low 4.2% in July from 4.1% in June. Businesses, government agencies and nonprofits are expected to have added 115,000 jobs in July, down from 147,000 in June, according to a survey of economists by the data firm FactSet.

The seemingly decent June hiring numbers were weaker than they appeared. Private payrolls rose just 74,000 in June, fewest since last October when hurricanes disrupted job sites. And state and local governments added nearly 64,000 education jobs in June – a total that economists suspect was inflated by seasonal quirks around the end of the school year.

So far this year, the economy has been generating 130,000 jobs a month, down from 168,000 last year and an average 400,000 a month from 2021 through 2023 during the recovery from COVID-19 lockdowns.

Employers are less likely to hire, but they’re also not letting workers go either. Layoffs remain below pre-pandemic levels.

Inova Fairfax Hospital ranks No. 1 in Va. for fifth year

SUMMARY:

  • U.S. News & World Report ranked No. 1 in Virginia and the Washington, D.C. metro area for fifth consecutive year
  • VCU Medical Center ranked No. 2 in Virginia, top in Richmond
  • The , based on performance metrics like mortality rates and patient outcomes, assessed over 4,400

For the fifth year in a row, Inova Fairfax Hospital in Falls Church has taken the top spot for Virginia and the Washington, D.C. metropolitan region on ‘s annual list of the nation’s best hospitals.

U.S. News and World Report’s 2025-2026 Best Hospitals rankings, released Tuesday, evaluated data from more than 4,400 hospitals across 15 adult specialties and 22 procedures and conditions. However, only 13% of hospitals being assessed earned a “best hospitals” designation.

“Earning this recognition for the fifth year in a row reflects the relentless commitment of our physicians, nurses, team members and partners to delivering world-class, patient-centered care every single day,” said Inova Fairfax Hospital President Dr. Steve Narang in a statement “It’s a proud moment for all of us at Inova Fairfax and a reflection of the trust our community places in us.”

Inova Fairfax Hospital also ranked 32nd in the nation for obstetrics and gynecology care, up from 36th place last year.

To determine the Best Hospitals, U.S. News analyzed each hospital’s performance based on objective measures, including risk-adjusted mortality rates, preventable complications and the level of nursing care. The publication states that the Best Hospitals Specialty rankings methodology and measure patient outcomes using data from over 800 million patient care records.

“For more than three decades, U.S. News has been an invaluable guide for patients,” said U.S. News Managing Editor and Chief of Health Analysis Ben Harder in a statement. “With a ‘Best Hospital’ recognition, Americans, in consultation with their medical providers, can confidently choose a hospital known for providing superior care for their specific illness or condition.”

U.S. News and World Report evaluated 120 hospitals in Virginia. The in Virginia are as follows:

1. Inova Fairfax Hospital, Falls Church
2. VCU Medical Center, Richmond
3. Norfolk General Hospital, Norfolk
4. (Virginia Hospital Center), Arlington County
5. (tie) Chippenham and Johnston-Willis Hospitals, Richmond
5. (tie) Medical Center, Charlottesville
5. (tie) Winchester Medical Center, Winchester
8. Carilion Roanoke Memorial Hospital, Roanoke
9. Mary Washington Hospital, Fredericksburg
10. (tie) Bon Secours St. Mary’s Hospital, Richmond
10. (tie) Sentara Virginia Beach General Hospital, Virginia Beach

Virginia Commonwealth University Medical Center ranked second in Virginia for the third consecutive year and first in Richmond for the 15th year in a row. The hospital was also ranked 41st for orthopedics. Sheltering Arms Institute, a joint venture between and Sheltering Arms, was ranked 27th for rehabilitation.

VCU Medical Center also ranked second in Virginia and 14th in the mid-Atlantic for children’s care, ranking nationally in two children’s specialties. U.S. News and World Report’s evaluation of the VCU hospital included data from Children’s Hospital of Richmond at VCU.

“To be recognized time and time again by U.S. News is a great honor and truly a testament to our team members’ undeniable commitment to this community,” Jim Willis, interim president of VCU Medical Center, said in a statement. “From implementing the latest innovations in robotic surgery to improving access to life-saving care, we are dedicated to making sure each person who walks through our halls receives high-quality care.”

placed third in the state and No. 1 for the Virginia Beach-Norfolk-Newport News area.

“We are proud to be recognized for excellence in improving the health of the Hampton Roads community,” said Sentara Health Senior Vice President Dana Weston Graves, who also serves as acute care president for Sentara’s Southeast Market – Norfolk.

7 Virginia businesses land on Fortune Global 500

Summary

  • leads Virginia-based businesses listed on 2025
  • RTX moves up 35 spots, passes , which fell 47 spots
  • General Dynamics rises 44 spaces in annual ranking

Once again, seven Virginia companies made the Global 500 list of the world’s largest corporations by revenue, which was released Tuesday.

Freddie Mac, the McLean government-sponsored home mortgage company, is still the state’s top-ranked company at No. 80 this year, up eight spaces from 2024’s list. According to Fortune, Freddie Mac reported $122 billion in revenue in fiscal 2024, up 13% from the previous year.

The , however, has shaken up the leadership of Freddie Mac and Fannie Mae, another government-sponsored housing finance system. Several board members have been removed from Freddie Mac, and CEO Diana Reid was fired in March, only six months after she was named the corporation’s new permanent head. CEO Michael J. DeVito retired in March 2024. Michael Hutchins, who served as interim CEO following DeVito’s departure, is back as interim chief as of March.

Meanwhile, RTX, the Arlington County aerospace and defense contractor formerly known as Raytheon Technologies, is at No. 153, up 35 spots and passing by Arlington-based aerospace and government contractor Boeing, which fell 47 spots to No. 206 this year.

RTX reported $80.7 billion in revenue for last year, up 17.2% year-over-year, and Boeing was down 14.5% in revenue, reporting $66.5 billion in fiscal 2024. That’s an $11.8 billion decrease from fiscal 2023, a reflection of the some of the fallout the company’s experienced since the January 2024 midair blowout of a Boeing jet’s door plug. In the following months, Boeing CEO Dave Calhoun resigned, and Robert K. “Kelly” Ortberg succeeded him as the company’s chief executive.

In May, Boeing and the U.S. reached a deal that will allow the company to avoid criminal prosecution for allegedly misleading U.S. regulators about the 737 Max jetliner before two of the planes crashed and killed 346 people in 2018 and 2019. Under the agreement, Boeing would pay and invest more than $1.1 billion, including an additional $445 million for the crash victims’ families, the Justice Department said.

The Justice Department and Boeing came to an earlier agreement in 2024 for $2.5 billion, following the Alaska Airlines blowout, but a federal judge rejected the plea deal in December 2024.

The rest of Virginia’s companies on the list of the world’s largest corporations, based on total revenues for fiscal years ending on or before March 31, are , , General Dynamics and .

Once again, Walmart and .com landed the top two spots, with Walmart reporting $680.9 billion in revenue for 2024, and Amazon bringing in $637.9 billion; both are increases from last year.

Goochland County’s Performance Food Group reported $54.6 billion, up 2.5% from 2023, and Capital One reported $53.9 billion in revenue, up 9% from last year, and a move up 33 spaces. General Dynamics saw its revenue rise 12.9% last year to $47.7 billion, which gave it a boost of 44 spaces in the 2025 list. Northrop Grumman, meanwhile, rose two spaces and reported $41 billion in fiscal 2024 revenue, up 4.4%.

These are the Virginia-based companies that made the 2025 Fortune Global 500 list, in order of ranking:

80) Freddie Mac, McLean

153) RTX, Arlington County

206) Boeing, Arlington County

267) Performance Food Group, Goochland County

271) Capital One Financial, McLean

318) General Dynamics, Reston

380) Northrop Grumman, Falls Church

Judge blocks Youngkin university board appointees

Summary

  • In win for Democratic state senators, Fairfax County Circuit judge stops U.Va., GMU, VMI boards from seating rejected Youngkin appointees
  • Says in ruling for preliminary injunction that state senators proved “irreparable harm”
  • GMU’s board set to meet Friday to discuss university president’s performance
  • Attorney general plans to appeal to state supreme court

In a win for Virginia Senate Democrats, a judge ruled in favor of their motion to stop three Virginia universities from recognizing eight gubernatorial board appointees who were rejected by a state Senate committee in June.

The appointees for the universities’ boards of visitors include former Virginia Attorney General Ken Cuccinelli, former state Secretary of Commerce and Trade Caren Merrick and others with significant conservative political and business connections, and the ruling comes as George Mason’s president is under heavy federal scrutiny by the , which opened four federal probes into GMU in the past month.

On Friday, Judge Jonathan Frieden heard arguments from the plaintiffs’ attorney, Mark Stancil of Willkie Farr & Gallagher, who said the state Senate’s Privileges & Elections Committee has the right to reject gubernatorial appointees on its own during special sessions, and from Christopher Michel, an attorney with Quinn Emanuel representing the state attorney general’s office for three university rectors, who argued that the entire General Assembly has to be called to vote on the matter.

Frieden’s order letter issued a preliminary injunction to prevent the three rectors of , and ‘s boards from seating the rejected appointees. In court, Frieden said he expected the losing side — in this case, the defendants — to send an argument to stay the judgment by Wednesday morning, and that the plaintiffs would be able to send a response by Wednesday evening, allowing the judge to rule on the two arguments by Friday morning, when George Mason’s board is set to meet.

The state attorney general’s office said Tuesday that it plans to appeal the ruling to the Supreme Court of Virginia.

The nine senators, which include eight members of the Senate Privileges & Elections Committee and Senate President Pro Tempore L. Louise Lucas, sued because and Virginia said that the rejected appointees were still valid members of boards, and appeared to be granting the boards’ rectors the go-ahead to seat the new appointees as legitimate board members.

“The nullification of plaintiffs’ votes constitutes irreparable harm whether the disputed appointees’ continued service on the GMU, U.Va. and VMI boards would result in decisions with which the plaintiffs agreed or disagreed,” Frieden wrote in Tuesday’s decision. He concluded that the state Senate has delegated to the committee the responsibility of confirming or rejecting all gubernatorial appointees to boards, so the committee’s action in June to not confirm the eight university board members was on behalf of the 40-seat Senate.

“Accordingly, the Constitution of Virginia required the rejected appointees to immediately cease their participation on their respective boards. They have not done so,” Frieden wrote. “Instead, following the legal advice of the attorney general, the defendant rectors of the George Mason University and University of Virginia boards of visitors and president of the Virginia Military Institute have continued to recognize the rejected appointees as members of their respective governing boards. Moreover, they intend to continue to do so.”

George Mason Rector Charles “Cully” Stimson was ordered to not recognize the votes of the university’s four disputed appointees or include them in closed sessions, special meetings or appoint them to board committees. According to Mason’s board website, one rejected appointee, former Federal Trade Commission chair Maureen Ohlhausen, was named to the powerful executive committee as a member-at-large, and she was made part of the academic programs, diversity and university community committee.

In addition to Ohlhausen and Merrick, Florida attorney Charles J. Cooper and former U.S. deputy secretary of education William D. Hansen are among the rejected appointees to Mason’s board. VMI appointees John Hartsock, deputy chief of staff for U.S. Rep. Ben Cline; Stephen Reardon, an attorney with Spotts Fain; and Jose Suarez, a Florida businessman, are also blocked from participating in its board, as is Cuccinelli’s participation on U.Va.’s board.

“Although we are disappointed in the ruling, we were prepared for this possibility,” Miyares spokesman Shaun Kenney said in a statement. “This case is straightforward. The constitution is clear that it is the General Assembly, not a fraction of a Senate committee, that is authorized to act. We will quickly file an appeal with the Supreme Court of Virginia and are confident in our position.”

U.Va. issued a statement: “The university will comply with today’s ruling and move forward with important university business. As we prepare for the new academic year, the board of visitors and U.Va. leaders remain focused on serving our community and our commonwealth through our education, research and patient care missions.”

Cuccinelli’s photo and bio page were no longer on U.Va.’s BOV webpage as of Tuesday afternoon, and VMI had removed its disputed board members’ online presence as well. George Mason’s board webpage still included the rejected appointees several hours after the ruling.

The hearing was fast-tracked because George Mason’s board is set to meet this week. The agenda calls for a closed session at 11 a.m. Friday to discuss ‘s job performance. Washington’s diversity, equity and inclusion efforts have been specifically targeted in the U.S. Department of Education and Department of Justice investigations, according to letters issued by both departments.

The federal investigations into Mason are centered on alleged race- and sex-based discrimination in hiring and promotion in favor of women and people of color, as well as alleged failure to protect Jewish students and staff from antisemitic attacks.

But critics, including state and federal legislators and faculty members, say that the investigations are politically motivated and targeted to try to drive out Washington, and many have said that the George Mason board, made up entirely of Youngkin appointees, has failed to support the university president.

Democratic state Sen. Aaron Rouse, chair of the Senate Privileges and Elections Committee, said in a statement that the ruling “is a victory for the rule of law, for the Senate’s constitutional role, and for the people of Virginia. It also sends a clear message that attempts to impose political control over our public universities, whether from Richmond or Washington, will not go unchecked.” 

In her own statement, Lucas said, “The Trump-Youngkin administration launched another blatant partisan power grab, this time targeting some of the top universities in the country, right here in Virginia. Once again, they tried to break the law in their attempt to force our progressive university leaders to bow to their will, but today they failed.”

VMI and George Mason did not immediately respond to requests for comment Tuesday.

Union Pacific, Norfolk Southern seek 1st transcontinental railroad through massive merger

Summary

  • announces $85B bid to acquire
  • Merger would create first U.S. coast-to-coast railroad network
  • Deal could spark final wave of national railroad consolidation
  • No single rail company has ever spanned both U.S. coasts

OMAHA, Neb. (AP) — Union Pacific is seeking to buy Norfolk Southern in a $85 billion deal that would create the first in the U.S, and potentially trigger a final wave of rail mergers across the country.

The proposed merger, announced Tuesday, would marry Union Pacific’s rail network in the West with Norfolk’s rails that snake across Eastern states.

The nation was first linked by rail in 1869, when a golden railroad spike was driven in Utah to symbolize the connection of East and West Coasts. Yet no single entity has controlled that coast-to-coast passage that so many businesses rely on.

The railroads said the tie-up would streamline deliveries of raw materials and goods across the country by eliminating several days of delays when shipments are handed off between railroads. The AP first reported the merger talks earlier this month a week before the railroads confirmed the discussions last week.

Any deal would be closely scrutinized by antitrust regulators that have set a very high bar for railroad deals after previous consolidation in the industry led to massive backups and snarled traffic.

But if the deal is approved, the two remaining major American railroads — BNSF and CSX — will face tremendous pressure to merge so they can compete. The continent’s two other major railroads — Canadian National and CPKC — may also get involved.

Some big shippers like chemical plants may be wary of the merger because of fears about the monopoly power the combined railroad would wield over rates, but other major rail customers, like and UPS, may back the deal if it means their packages will arrive more quickly and reliably. Those big companies, along with unions and communities across the country that the railroads cross, will have a chance to weigh in on the deal before the U.S. Surface Board.

Consumers would benefit if the deal does reduce shipping rates and delivery times as the railroads predict.

There’s speculation that this deal might win approval under the pro-business , but the STB is currently evenly split between two Republicans and two Democrats. The board is led by a Republican, and Trump will appoint a fifth member before this deal will be considered.

Union Pacific is offering $20 billion cash and one share of its stock to complete the deal. Norfolk Southern shareholders would receive one UP share and $88.82 in cash for each one of their shares as part of the deal that values NS at roughly $320 per share. Norfolk Southern closed at just over $260 a share earlier this month before the first reports speculating about a deal.

Union Pacific’s stock rose slightly to $229.35 in premarket trading, while Norfolk Southern’s stock dipped more than 2% to $279.95.

Union Pacific CEO Jim Vena, who has been championing a merger, said the deal could make it possible for lumber from the Pacific Northwest and plastics produced on the Gulf Coast and steel made in Pittsburgh to all reach their destinations more seamlessly.

“Railroads have been an integral part of building America since the Industrial Revolution, and this transaction is the next step in advancing the industry,” Vena said.

A combined Union Pacific and Norfolk would have an advantage because they won’t have to hand off shipments in the middle of the country anymore, enabling them to make deliveries more quickly and likely at a lower rate.

U.S. railroads have already gone through extensive consolidation. There were more than 30 major freight railroads in the early 1980s. Today, six major railroads that handle the majority of shipments nationwide.

Rival BNSF, owned by Berkshire Hathaway, has the war chest to pursue an acquisition of it chooses. CEO Warren Buffett is sitting on more than $348 billion cash and he may be interested in completing one last major deal before he gives up his role as chief exeucutive at the end of the year.

Last week Buffett threw cold water on reports that he had enlisted Goldman Sachs to advise him on a potential rail deal in an interview with CNBC, but given that he rarely uses investment bankers that doesn’t mean that he and his successor, Greg Abel, aren’t considering their options. After all, Buffett reached the agreement to buy the rest of BNSF for $26.3 billion in a private meeting with the CEO in 2009.

Yet there’s widespread debate over whether a major rail merger would be approved by the Surface Transportation Board, which has established a high bar for consolidation in the crucial industry.

That’s largely because of the aftermath of an industry consolidation nearly 30 years ago that involved Union Pacific. Union Pacific merged with Southern Pacific in 1996 and the tie-up led to an extended period of snarled traffic on U.S. rails. Three years later, Conrail was divvied up by Norfolk Southern and CSX, which led to more backups on rails in the East.

However, just two years ago, the STB approved the first major rail merger in more than two decades. In that deal, which was supported by big shippers, Canadian Pacific acquired Kansas City Southern for $31 billion to create the CPKC railroad.

There were some unique factors in that deal that combined the two smallest major freight railroads. The combined railroad, regulators reasoned, would benefit trade across North America.

Union Pacific and Norfolk Southern said they expect to submit their application for approval within the next six months and hope the deal would get approved by early 2027.

On Tuesday, Norfolk Southern reported a $768 million second-quarter profit, or $3.41 per share, as volume grew 3%. That’s up from $737 million, or $3.25 per share, a year ago, but the results were affected by insurance payments from its 2023 East Palestine derailment and restructuring costs.

Without the one-time factors, Norfolk Southern made $3.29 per share, which was just below the $3.31 per share that analysts surveyed by FactSet Research predicted.

Amazon cancels data center in Louisa County


SUMMARY:

  • withdrew plans for a third data center campus after strong community opposition
  • Residents cited concerns about noise, traffic, and quality of life
  • Two other Amazon in the county are still under construction

has withdrawn its application to build a third data center in Louisa County, following backlash from county residents against the project.

Attorney Charles W. Payne, representing Amazon, sent a letter to the county’s senior planner, Tom Egeland, informing the county that the tech giant is withdrawing its applications for a conditional use permit and other actions that would allow Amazon to build a 7.2 million-square-foot data center campus on 1,370 acres in the county.

The site would have been located in the Mineral area, south of Davis Highway (Route 22) and north of Jefferson Highway (Route 33), surrounding Northeast Creek. Wooded land, vacant land and scattered residential areas surround the site.

Amazon decided to withdraw its proposal due to feedback received at a June 11 county community meeting, Payne said. At that meeting, roughly 100 residents gathered to raise concerns about the proposed campus, fearing that the center would bring noise, traffic, strain the electrical grid and lower property values.

County resident Jennifer Davis said she lives on a farm near the site and enjoys gazing at the stars and appreciating the peace and quiet. She said she wouldn’t be able to do that with the data center.

A site plan for Amazon Web Service’s proposed third data center campus in Louisa County, as it appeared in the land use amendment application. Image Courtesy Louisa County

“I’m telling you, I don’t want you here,” she told Amazon representatives at the June meeting. “I haven’t heard anybody in this room … that wants you here. Does anybody here want them here? I haven’t heard of it. So please go back and take it somewhere else, because you’re not welcome in Louisa.”

Given the feedback, Payne said Amazon believed it was best to “reevaluate the proposed project” and withdraw the zoning applications.

“We have heard the community and appreciate the desire for more robust input in any future projects that may be brought forward in the county, and we are confident that this is a goal that can be accomplished,” Payne wrote.

At the June 11 meeting, Amazon representatives said the now-canceled project could have generated $115 million annually for the county.

Had the project gotten county approval, it would have been the third AWS data center in the county. Two AWS data center campuses are already under construction, with one being built at the Lake Anna Technology Campus and the other at North Creek Technology Campus, both of which are in the county’s Technology Overlay District.

County spokesperson Cindy King noted that when the projects were initiated, the facilities were permitted by right. However, she said the board of supervisors has since changed the district so that new data center applications require a conditional use permit, which in turn requires public input. For that reason, Amazon’s proposed third data center project in the county faced more scrutiny.

Amazon has announced plans to invest a total of $35 billion in Virginia by 2040, with $11 billion of that total allocated to the two data centers in Louisa County that are currently under construction. In Payne’s letter, he thanked the county for its ongoing support for the Lake Anna and Northeast Creek Technology Campuses.

“Your recognition that these planned investments will expand the tax base to support schools, first responders, parks and infrastructure reflects a shared commitment to strengthening core public services while protecting the natural beauty and community values that define Louisa County,” he wrote.

Stocks dip after record highs amid trade deal, Fed watch

  

SUMMARY:  

  • slips 0.2% after five-day record streak 
  • Dow drops 136 points; posts slight gain 
  • Markets steady following U.S.-EU framework 
  • and Fed rate decision loom this week 

 

NEW YORK (AP) — U.S. stock indexes are drifting on Monday after the United States agreed to tax cars and other products coming from the European Union at a 15% rate, lower than President Donald Trump had earlier threatened. Many details are still to be worked out, though, and Wall Street is heading into a week full of potential flashpoints that could shake markets.

The S&P 500 slipped 0.2% in late trading after setting an all-time high every day last week. The Industrial Average was down 136 points, or 0.3%, with a little less than an hour remaining in trading, and the Nasdaq composite was 0.1% higher, coming off its own record.

Tesla added 3.7% after its CEO, Elon Musk, said it signed a deal with Samsung Electronics that could be worth more than $16.5 billion to provide chips for the electric-vehicle company. Samsung’s stock in South Korea jumped 6.8%.

Other companies in the chip and artificial-intelligence industries were strong, continuing their run from last week after Alphabet said it was increasing its spending on AI chips and other investments to $85 billion this year. Chip company Advanced Micro Devices rose 3.7%, and server-maker Super Micro Computer climbed 8.6%.

They helped offset a 9% drop for Revvity. The company in the life sciences and diagnostics businesses reported a stronger profit for the latest quarter than Wall Street expected, but its forecast for full year profit disappointed analysts.

Companies are broadly under pressure to deliver solid growth in profits following big jumps in their stock prices the last few months. Much of the gain was due to hopes that Trump would walk back some of his stiff proposed tariffs, and critics say the broad U.S. looks expensive unless companies produce bigger profits.

More fireworks may be ahead this week. “This is about as busy as a week can get in the markets,” according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.

Hundreds of U.S. companies are lined up to report how much profit they made during the spring, with nearly a third of all the businesses in the S&P 500 index scheduled to deliver updates. That includes market heavyweights Apple, , Meta Platforms and Microsoft. Those companies have grown so huge that their stock movements can almost dictate what the overall S&P 500 index does. Microsoft alone is worth roughly $3.8 trillion.

On Wednesday, the will announce its latest decision on .

Trump has been angrily calling for the Fed to cut interest rates, a move that could give the economy a boost. But Fed Chair Jerome Powell insists that he wants more data about how Trump’s tariffs are affecting the economy and inflation before the Fed makes its next move. Lower interest rates can fuel inflation, and the economy only recently came out of its scarring run where inflation briefly topped 9%.

The widespread expectation on Wall Street is that Fed officials will wait until September to resume cutting interest rates, though a couple of Trump’s appointees could dissent in the vote. The Fed has been on hold with interest rates this year since cutting them several times at the end of 2024.

This week will also feature several potentially market-moving updates about the economy. On Tuesday will come reports on how confident U.S. consumers are feeling and how many jobs openings U.S. employers were advertising. Wednesday will show the first estimate of how quickly the U.S. economy grew during the spring, and economists expect to see a slowdown from the first three months of the year.

On Thursday, the latest measure of inflation that the Federal Reserve prefers to use will arrive. A modest reading could give the Fed more leeway to cut interest rates in the short term, while a hotter-than-expected figure could make it more cautious.

And Friday will bring an update on how many more workers U.S. employers hired during June than they fired.

Treasury yields held relatively steady in the bond market ahead of all that action. The yield on the 10-year Treasury edged up to 4.41% from 4.40% late Friday. The two-year Treasury yield, which more closely tracks expectations for Fed action, rose to 3.93% from 3.91%.

In stock markets abroad, indexes dipped in Europe following the announcement of the trade deal’s framework.

Chinese stocks rose as officials from the world’s second-largest economy prepared to meet with a U.S. delegation in Sweden for trade talks. Stocks climbed 0.7% in Hong Kong and 0.1% in Shanghai.

Indexes were mixed across the rest of Asia, where Japan’s Nikkei 225 fell 1.1% for one of the world’s bigger losses.

GMU Faculty Senate targeted in DOJ letter

SUMMARY:

The head of the U.S. Department of Justice’s division sent a letter Friday requesting that George Mason University’s rector provide “all written communications” regarding a resolution its faculty senate passed last week in support of President .

Dated July 25, the letter signed by Assistant Attorney General Harmeet K. Dhillon says that the department was informed of the resolution commending “Washington’s efforts to ensure ‘faculty and staff demographics … mirror student demographics’ at GMU,” according to her letter. George Mason is Virginia’s largest public university and its most racially and ethnically diverse, with 39,763 students enrolled in fall 2024, and 66.3% of all students are listed as nonwhite.

“This statement is concerning as it indicates the GMU Faculty Senate is praising President Washington for engaging in race- or sex-motivated hiring decisions to achieve specific demographic outcomes among faculty and staff,” Dhillon writes. “According to Justice [Ketanji Brown] Jackson and all eight of her colleagues on the United States Supreme Court, such hiring practices violate Title VII of the Civil Rights Act.”

Dhillon cites multiple legal cases in the letter, including the 2023 Harvard case that eventually led to the U.S. Supreme Court’s ruling to overturn affirmative action in college admissions.

Dhillon writes that although her division intends to submit a “detailed information request” this week, the DOJ would like to review the faculty senate resolution, as well as any drafts and “all written communications,” including emails, texts, voice mails and other forms of electronic communications, between members of the faculty senate, or between the president and his office staff and faculty senate members.

“Please immediately take the necessary steps to preserve all such documents and to notify both the members of the faculty senate and President Washington’s office of the obligation to preserve these documents and electronic communications,” Dhillon concludes. A Department of Justice spokesperson said it had no comment beyond the letter Monday.

Dhillon opened two investigations into the university in July, in addition to two probes launched by the U.S. Department of Education since July 1. The letter, which has not yet been made public by the DOJ, is the first apparent federal inquiry about GMU faculty members’ resolution to support Washington, whose actions to enhance diversity, equity and inclusion at the university have been criticized by the and conservative members of George Mason’s board of visitors.

Multiple groups, including federal and state Democratic lawmakers, George Mason’s American Association of University Professors chapter and regional business organizations, have taken measures to support Washington, the university’s first Black president and its leader since July 2020. Some say that the Trump administration is using the DOJ and the DOE to drive out Washington, and that George Mason’s board of visitors, which has firing power over the university’s president, has not done enough to support him.

The DOJ’s July 25 letter, like others regarding the university, was addressed to Rector Charles “Cully” Stimson and Mike Fragoso, a Torridon Law attorney hired to represent the university in the DOJ matters. Stimson and Fragoso did not immediately respond to a request for comment on the letter Monday.

Professor Solon Simmons, president of the George Mason Faculty Senate, said Monday that he has seen the letter and has been advised by multiple people that he should hire an attorney. He said in a written statement that Dhillon’s letter is “inaccurate.”

The faculty senate “did not commend President Gregory Washington’s efforts to ensure ‘faculty and staff demographics . . . mirror student demographics’ at GMU. The language we used is simply a direct quote from page 31 of a five-year strategic document adopted by the board of visitors,” Simmons wrote. “An outcome the board committed to was to, ‘faculty and staff demographics that mirror student demographics.’ It is not our language; it is theirs.”

The five-year strategic document was released in 2023 after the board approved it in December 2022. It lists goals for the university that include expanding opportunities for students, integrating “inclusive principles and practices,” and expanding research at George Mason. In a section titled, “Exemplify a university culture of access and inclusion,” the university includes “faculty and staff demographics that mirror student demographics” under outcomes it aims to achieve.

The faculty senate resolution, which was approved July 24, refers to the four federal investigations launched since July 1, declares its confidence in Washington’s leadership and calls for the board of visitors to “affirm its commitment to a fair, independent, transparent and comprehensive annual review” of Washington’s job performance.

The resolution also calls for the board to “provide the strongest defense possible of President Washington and the university’s leadership during these investigations” and to “not give in to political pressures to issue penalties before due process and proper investigations have been completed.”

On Aug. 1, the board is set to discuss in closed session Washington’s work performance, according to its agenda released last Friday. Meanwhile, this week a Fairfax County judge is set to rule on a requested injunction motion filed by nine state Senate Democrats that would prevent the boards of George Mason, the and from seating eight gubernatorial appointees who were rejected by a Senate committee in June.