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TODAY’S HEADLINE NEWS 👀

New Car Prices Would Rise Under Trump’s Tariff Threat

Billions in cars and parts cross U.S. borders daily. Trump’s proposed 25% tariffs on Canada and Mexico could grind that to a halt triggering an industry wide economic fallout, and higher car prices for consumers.

Hours after his inauguration, Trump announced the tariffs would start Feb. 1. Automakers and analysts are bracing for impact, or hoping it’s a bluff. “It feels like a negotiating tactic,” said Mark Wakefield of AlixPartners.

Tariffs aim to push production to the U.S., but the fallout could be brutal. Cross border supply chains are finely tuned, and disrupting them means higher costs, slumping sales, and job cuts. Sticker prices would rise, leaving buyers clinging to old cars.

With thin profit margins, automakers would pass costs to customers. “Tariffs inflate prices,” said Erik Gordon of the University of Michigan. “Sales and production will drop.”

North American automaking relies on free trade. Under NAFTA and now the USMCA, vehicles cross borders multiple times during production. Tariffs would hit almost every car sold in the region.

Manufacturers like Hyundai have prepared, building U.S. plants to dodge policy shifts. But for others, a 25% tariff could mean reengineering an industry, and the cost won’t be small.

“The stakes are massive,” said Wakefield. “This could reshape everything.”

Netflix Subscriber Growth Drives New Price Hikes

Netflix ended 2024 on a high, surpassing 302 million global subscribers. This subscriber growth helped it achieve annual operating income of over $10 billion for the first time. Driven by record breaking content and strategic shifts, the streaming giant reported a 16% revenue jump in the fourth quarter, with net income rising to $1.87 billion. Shares climbed 14.5% in after hours trading.

Season two of Squid Game shattered viewership records, CarryOn entered Netflix’s Top 10 films, and live events like Jake Paul vs. Mike Tyson and NFL Christmas Day games attracted millions. Netflix’s live programming strategy is gaining traction, with NFL games drawing 27 million viewers at peak, including Beyoncé’s halftime show. Despite this, the company reiterated it won’t pursue full season sports packages.

Amid success, Netflix raised prices across the U.S., Canada, Portugal, and Argentina. Premium plans now cost $24.99, while the ad supported tier rose to $7.99. The company also cracked down on password sharing, charging $8.99 to add a member to ad free accounts.

Ad supported plans accounted for 55% of new signups last quarter, with ad revenue projected to double by 2025. CEO Greg Peters emphasized Netflix’s diverse appeal, stating, “No single title drives engagement, it’s the whole service.”

With live events, new seasons of Wednesday and Stranger Things, and bold ventures like Greta Gerwig’s Narnia, Netflix is poised to dominate 2025.

Alcohol Industry Faces Mounting Pressure as Habits Shift

A fifth of U.S. adults account for 90% of alcohol sales, according to a 2023 Bernstein analysis. Philip Cook, a Duke University professor emeritus, stated, “Heavier drinkers are where the money is.” And not surprisingly the alcohol industry relies heavily on its most loyal consumers.

Yet, the industry's dependence on heavy drinkers is under scrutiny. Federal guidelines may soon lower the recommended daily drink limit, adding cancer warnings to alcohol packaging. Studies link alcohol to seven cancers, including breast and liver. One drink a day increases death risk, according to a recent report.

Shifting habits also squeeze sales. Health concerns, cannabis legalization, GLP-1 drugs like Ozempic, and generational shifts are driving declines. Beer, wine, and spirits makers now lean on customers like Kevin Turner, 39, who enjoys weekend bar visits and keeps a stocked home bar. "Alcohol is delicious poison," he said.

Industry veterans acknowledge the challenge. Ann Mukherjee, former North America chief at Pernod Ricard, noted companies prefer to rely less on heavy drinkers for sustainability. Meanwhile, efforts to curb overconsumption, like corporate responsibility campaigns and warnings about drunk driving, coexist with aggressive lobbying to block stricter federal guidelines.

Some drinkers remain unfazed. Tara Prinzivalli, 45, a radiation therapist in Staten Island, drinks wine nightly. “Cancer isn’t something I think about with wine,” she said.

The industry’s struggles mount. Sales of Constellation Brands, maker of Modelo and Meiomi, have plummeted. BrownForman, owner of Jack Daniel’s, is cutting 12% of its workforce amid a bourbon glut.

As reliance on heavy drinkers grows, the industry's future looks more precarious. Still, a cancer warning label or stricter guidelines may not be enough to change deep rooted habits among its most loyal customers.

Trump Meme Coins Roil’s Crypto Industry

The crypto world cheered Trump’s return until he launched, $TRUMP and $MELANIA, meme coins with no purpose but speculation. The $TRUMP token hit a $7.8 billion market cap, $MELANIA followed at $800 million.

Critics slammed the move as a conflict of interest, with Trump profiting from tokens while shaping policy. Even loyalists balked when $MELANIA debuted 48 hours later, tanking $TRUMP’s value by half before it rebounded.

Industry veterans cried foul, calling it a “rug pull” scheme. Trump affiliated entities hold 80% of $TRUMP’s supply, shielding themselves from lawsuits. Meanwhile, crypto leaders worry the spectacle undermines years of rebuilding trust after FTX’s collapse.

“This mocks everything we’ve built,” said one investor. Others see it as a signal that the crypto bubble may have peaked, even as Bitcoin hit $109,000 before inauguration.

The meme coin frenzy begs the question is Trump building a legacy, or cashing in on chaos?

THIS WEEK IN BUSINESS NEWS

Inauguration Day And Trumps Inaugural Address

Donald J. Trump was sworn in for a second term as president on Monday. President Trump delivered a speech that echoed familiar themes of division, darkness, and his self styled role as America’s savior.

Speaking indoors due to inclement weather, Trump painted a grim picture of a country in turmoil. He described a government rife with corruption, a society in disrepair, and a citizenry besieged by crime and disasters. Casting himself as the solution to these challenges, Trump declared, “I was saved by God to make America great again,” likening his trials to those faced by Washington and Lincoln and claiming a unique place in American history.

Though less combative than some of his past rhetoric, Trump’s speech included pointed criticisms of Democrats and the Biden administration. He lamented the slow recovery in North Carolina after Hurricane Helene and accused leaders of ignoring ongoing wildfires in California, framing these failures as evidence of broader governmental incompetence.

One of the most striking elements of the address was Trump’s invocation of “Manifest Destiny,” a phrase historically tied to American expansionism. Trump used it to outline a bold and controversial vision that included planting the American flag on Mars, renaming the Gulf of Mexico to the Gulf of America, and reclaiming the Panama Canal. “We gave it to Panama, not China, and we’re taking it back,” he said, drawing some of his strongest applause.

The speech wasn’t without its share of exaggerations and falsehoods. Trump overstated the death toll from the construction of the Panama Canal, made dubious claims about unfair fees for U.S. ships, and repeated unverified accusations about undocumented immigrants. He also promised unattainable outcomes, such as halting all illegal border crossings instantly.

Notably absent from the address were detailed discussions of major issues like tariffs, healthcare, and government spending. While Trump briefly mentioned plans to tax foreign nations through a new “External Revenue Service,” much of his economic vision remained vague.

In a rare moment of restraint, Trump avoided explicit promises of retribution against his political enemies, focusing instead on ending what he described as the “weaponization” of government power. “The scales of justice will be rebalanced,” he said. “Never again will the immense power of the state be weaponized to persecute political opponents, something I know something about.”

Trump’s second inaugural address, though more subdued than his usual fare, doubled down on his characteristic mix of grandiosity, grievance, and bold ambition. It left the nation wondering what his next four years as a term limited president will bring.

Costco Union Workers Authorize Strike

Union workers at Costco have voted overwhelmingly, 85% in favor, to authorize a strike as contract talks stall. The current agreement, covering over 18,000 workers, expires January 31.

Teamsters General President Sean O’Brien warned that Costco faces a hard deadline. “Our members won’t work a day past Jan. 31 without a historic, industry leading agreement,” he said.

The union accuses the retailer of refusing to present a fair offer. Costco has yet to comment. With the deadline looming, the standoff puts pressure on both sides to reach a deal, or face disruption.

Trump Holds Off on Tariffs Orders Broad Trade Review

President Trump will not impose new tariffs immediately but will sign an executive order Monday to investigate trade issues with countries like China, Canada, and Mexico. This measured step delays immediate trade wars but sets the stage for future tariffs, potentially reshaping international supply chains.

The order directs federal agencies to examine trade deficits, unfair practices, and loopholes that have allowed Chinese goods to avoid tariffs. It also explores creating an "External Revenue Service" to manage duties and reviewing tariffs tied to national security.

While Trump has paused new tariffs for now. Though he remains convinced they will protect U.S. workers, boost revenue, and pressure foreign governments. His inauguration speech promised an overhaul of the trade system to restore the American Dream.

Foreign governments, wary of retaliation, are already preparing countermeasures. Canada, Mexico, and the European Union have threatened tariffs on U.S. goods like orange juice and whiskey if targeted.

Economists warn tariffs could hurt households and businesses through higher prices and retaliatory actions. Trump’s actions leave allies and rivals on edge, with global trade relationships hanging in the balance.

Biden Warns Of Rising Oligarchy As Billionaires Flood Washington

In his farewell address, President Biden sounded the alarm, America risks becoming an oligarchy. The warning comes as billionaires descend on Washington, drawn by power and opportunity under President Trump’s administration.

At least a dozen billionaires, including Elon Musk and Trump himself, hold top roles in the incoming government. Musk, the world’s richest man at $429 billion, joins an elite team of the ultra wealthy reshaping the nation's power structures. Critics compare it to the Gilded Age, but with billionaires now taking the reins directly.

Washington’s luxury real estate market is booming. Cabinet picks like Howard Lutnick and Scott Bessent are snapping up multi million dollar homes. Musk, rumored to eye the Line Hotel for a private club, will have an office near the White House.

The influence of wealth is clear. Donors turned officials are poised to oversee industries that built their fortunes, blurring lines between public service and private gain. Critics warn of the consequences, while some call it meritocracy in action.

Trump’s billionaire-packed administration promises change, but the cost to American democracy remains uncertain.

Costco Stands Firm on Diversity

Costco won’t budge, and given the consumer friction they solve they don’t need to. As other companies scale back diversity efforts, the warehouse giant defends its commitment to inclusion, tying it directly to business success.

Ahead of its annual meeting, Costco urged shareholders to reject a proposal claiming diversity initiatives could harm stock value. The board went further, arguing diversity boosts innovation and attracts talent, fueling the "treasure hunt" experience customers love.

CEO Ron Vachris doubled down after a customer complaint about hiring practices. “We’ve never used quotas,” he replied. “If these policies offend you, I won’t change them.”

While pressure mounts on companies like Walmart and Meta to abandon DEI policies, Costco’s loyalty-driven model gives it room to resist. Activists pushing boycotts admit Costco’s devoted customer base makes it a tough target. “You don’t mess with a beloved company,” one said.

Costco’s high wages and worker-focused policies back its stance, though diversity at the top remains limited. Over 70% of managers are men, and 81% are white. Critics argue the company isn’t immune to DEI risks, but Costco insists inclusion strengthens its business.

As corporate America retreats, Costco is betting that sticking to its principles pays off.

LOS ANGELES FIRES

Fresh Stiff Santa Ana Winds Threaten Fire Containment Efforts

Southern California is on edge again as powerful Santa Ana winds and bone dry conditions fuel a heightened wildfire threat. Less than two weeks after deadly blazes killed 27 people and scorched thousands of homes, the National Weather Service has warned of a "particularly dangerous situation" in Los Angeles and Ventura counties. Gusts are expected to hit 70 mph along the coast and up to 100 mph in the mountains, while single digit humidity lingers through Thursday.

Firefighters are still battling the Palisades and Eaton fires, which together have destroyed more than 14,000 structures since fierce winds ignited them on January 7. The Palisades fire, blackening over 37 square miles near the coast, is 52% contained, while the Eaton fire, further inland, is 81% contained. Crews remain wary as strong winds threaten to whip embers across containment lines.

Residents from Los Angeles to San Diego are being urged to prepare for evacuation as critical fire weather persists. Ash and dust advisories are in effect, with high winds dispersing debris from burned zones. Governor Gavin Newsom has deployed fire crews and aircraft across the region to respond rapidly to any new outbreaks.

Inspectors are combing through the fire zones, assessing damage as the toll mounts. In the Palisades fire area, residents of some evacuated neighborhoods have begun returning, but concerns remain high. Meanwhile, two individuals impersonating firefighters were arrested attempting to enter restricted zones, highlighting the tension gripping the region.

For Southern Californians, it’s another week of vigilance, with wind, flames, and uncertainty looming large.

SPORTS

NCAA National Championship Game Tonight

NFL 2025 Playoffs Bracket (Updated)

Here is the playoff bracket update for Conference Championship weekend. The winner of each game next weekend advances to Super Bowl LIX on February 9, 2025 🏈

💰️ Smart Money Matters 💰️ 

Culture Corner

Artificial Dye Red No. 3 Banned By FDA 

The FDA is banning Red No. 3, a synthetic dye linked to cancer in lab rats, from food and ingested drugs. Food manufacturers have until 2027 to remove it from products like Pop Tarts and candy corn.

Red 3, approved in 1969, is made from petroleum and gives foods a bright cherry red hue. It was banned from cosmetics in 1990 but remained legal in food, thanks partly to industry lobbying. Consumer advocates argued the dye violates a 1958 law prohibiting additives that cause cancer in animals or humans, even at tiny doses.

The ban comes amid growing scrutiny of food additives. California recently passed a similar law, and Europe has banned Red 3 in most products for years. Companies like Kellogg and Ferrara are already phasing it out.

Critics call the dye’s risks unacceptable for its purely cosmetic use. “It’s absurd Red 3 was banned in lipstick but still allowed in candy for kids,” said CSPI President Peter Lurie.

The move highlights a shift toward stricter food safety rules, with consumer groups pushing for bans on other chemicals like BPA and titanium dioxide.

ECONOMY

Tariffs Trump Threatened Are On Hold And Under Review

President Trump, on Monday, held off on immediately imposing tariffs on imported goods but signed an executive order setting the stage for a sweeping review of America’s trade practices. The move signals a calculated, measured approach to his campaign promise of reshaping trade relations, delaying potential clashes with foreign governments prepared to retaliate with their own tariffs.

The executive order tasks federal agencies with scrutinizing trade deficits, deals with China, Canada, and Mexico, and loopholes like de minimis exemptions that allow low value goods to bypass tariffs. It also explores creating an “External Revenue Service” to collect duties, aiming to bolster revenue and enforce trade rules.

Though tariffs remain on hold, Trump’s team is eyeing aggressive measures, including universal tariffs, higher levies on China, and targeted taxes on Mexico and Canada. The president remains steadfast in his belief that tariffs can protect U.S. industries, fill the Treasury, and strengthen America’s leverage in global trade negotiations.

During his inauguration, Trump promised an overhaul of the trade system, claiming tariffs would generate “massive amounts of money” and restore the American dream. His administration continues to debate the legal mechanisms to implement these measures, confident in the broad powers granted to the presidency under trade laws.

While some U.S. manufacturers credit Trump era tariffs for aiding their survival, economists warn of rising costs for businesses and households, along with the risk of retaliation from key trading partners. Canada, Mexico, and the European Union have already prepared countermeasures, targeting American exports like orange juice, whiskey, and peanut butter.

The global stakes are high. Trump’s first term nearly doubled the average tariff rate, disrupting international trade and intensifying economic tensions. As Washington braces for the potential fallout, Trump’s executive order keeps foreign governments guessing, setting the stage for what could be a new chapter in trade wars.

FINANCE

CFO Optimism For 2025 Runs High

With elections behind them and 2025 ahead, CFOs are eyeing brighter days. Deloitte’s Q4 CFO Signals Survey shows optimism climbing sharply. Seventy two percent of finance leaders now expect the North American economy to improve within a year, up from 19% last quarter. Confidence in Europe is also rising, with 37% forecasting better conditions, a notable rebound.

Revenue and earnings projections reflect this shift. CFOs predict a 10.8% revenue boost in 2025, compared to just 2.4% last quarter. Earnings estimates jumped to 7.6%, up from 2.1%. Risk appetite is back to with as 67% say it’s a good time to take risks, a dramatic leap from 12% in Q3.

Capital spending is set to surge, with organizations planning an 8.7% increase, fueled by record cash reserves and lower interest rates. While 46% of CFOs plan to hold cash, 44% aim to invest in new ventures, and 43% are eyeing acquisitions, buoyed by expectations of relaxed antitrust policies under the new administration.

Tech and talent dominate internal priorities. Generative AI deployment and agility concerns top worries at 51%. Wage growth, projected at 7.3%, signals tightening labor markets. CFOs plan to link pay to performance, promote from within, and rework benefits to manage costs. Upskilling and automation rank high for 2025 workforce strategies.

Despite rising optimism, challenges loom. CFOs remain wary of economic risks, geopolitical tensions, and market volatility. Yet, as Steve Gallucci of Deloitte notes, finance leaders are balancing growth opportunities with caution, positioning their firms for long term success. The survey, conducted in November, included 200 CFOs from companies with over $1 billion in revenue.

POLITICS

Protestant Bishop In A Bipartisan Service Pleads Case For Immigrants To Trump

The service had begun at Washington National Cathedral, with President Trump seated, ready for the prayer that was to close the tumultuous inauguration events. It was a service of unity, something the country was sorely lacking.

The Right Rev. Mariann Budde, Episcopal bishop of Washington, stood at the pulpit, her voice filled with solemnity. She spoke of honesty, humility, and dignity, the pillars of unity. Then, she turned to Trump, urging him to have mercy on the scared, the marginalized, and those who fear for their safety under his policies. She asked him to extend compassion to immigrants, to those who clean our buildings and work the night shifts.

Budde’s words echoed in the cathedral. Her words drawing a stark contrast to Trump’s own inauguration speech, which had painted a grim picture of a nation in decline. She reminded him that unity is built on mercy, not division. Her sermon circulated widely after the service, striking a nerve with many, including Rep. Mike Collins, who called for her deportation.

The service, though marked by its interfaith participation, felt charged, with many seeking a message of healing. For Budde, it was a plea for the soul of the nation. Afterward, Trump left the cathedral without comment, his presidency beginning in the shadow of deep division.

THE GRIND FACTORY ⚙️

UNIQUELY INTERESTING

💡 Epiphany Moments

Starbucks began in 1971, as small shop in Seattle's Pike Place Market. Three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker sold high quality coffee beans, tea, and spices. It became a local favorite, known for its focus on quality.

In 1982, Howard Schultz joined the company. A trip to Italy inspired him when he saw coffeehouses as gathering places and imagined Starbucks becoming more than just a seller of beans. By 1987, with investors’ help, Schultz bought the company and set his vision in motion.

Starbucks grew quickly, transforming into a coffeehouse chain. Espresso drinks, lattes, and cappuccinos became staples. Stores opened across the U.S., then the world. Starbucks became a global phenomenon with thousands of locations.

Innovation followed soon thereafter. New drinks, food, and mobile ordering kept customers coming back. Starbucks also embraced social responsibility, ethical sourcing, sustainability, and community engagement became part of its brand.

Today, Starbucks is more than coffee. It’s a cultural icon, a meeting place, and a symbol of modern life. Built on quality, customer experience, and constant evolution, Starbucks became a brand the world recognizes and loves.

 🍎 One Smart Apple

Sun Microsystems was born on February 24, 1982, the brainchild of four innovators, Scott McNealy, Vinod Khosla, Andy Bechtolsheim, and Bill Joy. The idea for the company came from Bechtolsheim’s project at Stanford University, where he built the Sun-1, a powerful workstation running Unix operating system with advanced graphics capabilities.

The name “Sun” stood for Stanford University Network, a nod to its academic origins. From its start Sun Microsystems made waves with groundbreaking ideas, carving out a niche in network computing. They pioneered technologies like the Java programming language and the Network File System (NFS), reshaping how systems communicated.

Sun’s rise was swift, and widely exposed in the business press. Their high performance workstations and servers became staples across industries, known for reliability and speed. By the early 2000s, the company had solidified its place as a tech titan.

All good stories have a good ending. In 2010, Oracle Corporation acquired Sun Microsystems for $7.4 billion, folding its legacy into Oracle’s operations. It was the culmination of decades of innovation that was born from collaboration and vision. 🍏 

 HEALTH & LONGEVITY •ᴗ• This Week For A Long Life

Longevity Essentials Are Simply Making Good Choices

Longevity comes down to choices. Eat well. Stick to whole foods fruits, vegetables, lean proteins, and healthy fats. Avoid processed junk. The Mediterranean diet, heavy on fish and olive oil, is linked to longer life.

Move often. Exercise regularly, 150 minutes of moderate activity a week will do. Add strength training twice a week. Enjoy what you do, and you’ll stick with it.

Sleep matters. Get 7-9 hours a night. Go to bed at the same time. Build a calming bedtime routine.

Stress kills. Manage it with meditation, deep breathing, or time in nature. Keep strong social connections they’re vital.

Don’t smoke. If you drink, do it sparingly.

Visit your doctor. Regular checkups, screenings, and vaccines can catch problems early.

Keep your mind sharp. Learn new things. Stay curious. Stay connected. Life is long if you live it right.

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