 |
|
|
|||||
U.S. President Donald Trump signed an executive order on Monday ordering the creation of a sovereign wealth fund within the next year, saying it could potentially buy the short video app TikTok. Trump offered little in the way of detail and it was unclear how such a wealth fund would work. Typically such funds rely on a country’s budget surplus to make investments, but the U.S. operates at a deficit. Its creation also would likely require approval from Congress. “We’re going to create a lot of wealth for the fund,” Trump told reporters. “And I think it’s about time that this country had a sovereign wealth fund.” Trump had previously floated such a government investment vehicle as a presidential candidate, saying it could fund “great national endeavors” like infrastructure projects such as highways and airports, manufacturing, and medical research. Administration officials did not say how the fund would operate or be financed, but Trump has previously said it could be funded by “tariffs and other intelligent things.” Treasury Secretary Scott Bessent told reporters the fund would be set up within the next 12 months. “We’re going to monetize the asset side of the U.S. balance sheet for the American people,” Bessent said. “There’ll be a combination of liquid assets, assets that we have in this country as we work to bring them out for the American people.” The Biden administration also was considering establishing such a fund prior to Trump’s election in November, according to The New York Times and Financial Times. Investors on Wall Street said the news came as a surprise. “Creating a sovereign wealth fund suggests that a country has savings that will go up and can be allocated to this,” said Colin Graham, head of multi-asset strategies at Robeco in London. “The economic rules of thumb don’t add up.” There are over 90 such funds across the world managing over $8 trillion in assets, according to the International Forum of Sovereign Wealth Funds. In another surprise twist, Trump suggested the wealth fund could buy Tiktok, whose fate has been up in the air since a law requiring its Chinese owner ByteDance to either sell it on national security grounds or face a ban took effect on Jan. 19. Trump, after taking office on Jan. 20, signed an executive order seeking to delay by 75 days the enforcement of the law. Trump has said that he was in talks with multiple people over TikTok’s purchase and would likely have a decision on the app’s future in February. The popular app has about 170 million American users. “We’re going to be doing something, perhaps with TikTok, and perhaps not,” Trump said. “If we make the right deal, we’ll do it. Otherwise, we won’twe might put that in the sovereign wealth fund.” Jarrett Renshaw, Pete Schroeder, and Suzanne McGee, Reuters
Category:
E-Commerce
January was a long month, but we finally have some good news in 2025: Bookseller Barnes & Noble plans to open at least 60 new stores this year, topping last years record of 57 stores and marking a steady revival of its brick-and-mortar bookstores across the country. “[Barnes & Noble] is experiencing strong sales in its existing stores and has been opening many new stores after more than 15 years of declining store numbers,” the company told Fast Company. “In 2024, Barnes & Noble opened more new bookstores in a single year than it had in the whole decade from 2009 to 2019 . . . [The company] is enjoying a period of tremendous growth as the strategy to hand control of each bookstore to its local booksellers has proven so successful.” As Fast Company previously reported, after more than a decade of shuttering locations, ultimately closing 150 locations, the chain started ramping up again in 2023 with some 30 new stores. Some of its newest locations opening this year will be in prime retail locations, such as a new D.C. flagship store in upscale Georgetown. 2025 marks a new era for Barnes & Noble and other bookstores thanks to a few factors, including digital fatigue, TikTok’s #BookTok, the loneliness epidemic, and a rise in so-called third spaces (more on that below). But first, heres a list of the cities where Barnes and Noble will be opening new locations in 2025. New Barnes & Noble locations already open in 2025 Bellevue, Washington Town & Country, Texas Naples, Florida Superior, Colorado Brentwood, California Barnes & Noble locations yet to open in 2025 Barnes & Noble told Fast Company the chain also currently has 37 signed leases for upcoming stores in the following statesplus a number of other leases in the works (though it did not offer a timeline for when we can expect the new stores): California Florida Colorado Texas Washington Pennsylvania Ohio Virgina New York Nebraska Michigan Illinois Connecticut Arizona New Hampshire Maryland Kansas Why is there a bookstore revival? While it might seem counterintuitive in this age of digital consumption, with people often buried in their phones, bookstores (and books!) are actually making a comeback. One major reason is the rise of TikTok’s community of avid readers, #BookTok, which has been credited with helping authors sell millions of books, and has evolved into one of the more popular corners of the platform, with creators making videos of book hauls, reviews, and bookcase setups, and swapping recommendations. “Since the rise of BookTok during the pandemic, bookstores have seen a significant surge in popularity, especially among young people,” Barnes & Noble told Fast Company. “Our stores have become popular social spots, offering an experience that online shopping simply cant match.” There’s also a recent rise in “third places,” which are gathering places outside of work and home where people can go to be around other people or meet friends, like coffee shops, bars, and gyms. With loneliness and isolation at an all-time high, people are returning to these third places, including bookstores, because they are free and safe environments stocked with reading material, and often coffee and cold drinkswhich draws in more visitors (this is why many newer bookstores have added a coffee shop or café to help make the store more inviting). Bookstores also offer a way to be around like-minded people who have similar interests. That’s why, around the country, niche bookstoresromance bookstores, in particularare also booming. In fact, more than 20 have opened in the last few years, up from just two in 2020. One of those new bookstores is Lovestruck Books, which just opened smack in the center of Harvard Square in Cambridge, Massachusetts. The delightfully decorated store has more than 12,000 books, in addition to a retail area with candles, tea, stationery, and a George Howell Coffee shop. (Author’s note: Yes, I admit that I’ve been thereand ended up staying for an hour. I highly recommend finding a bookstore near you!)
Category:
E-Commerce
Teslas stock (Nasdaq:TSLA) moved lower once again Monday, falling almost 5% in midday trading, the continuation of a fairly steady decline since Donald Trump took office. Shares of the automaker (trading at around $384 per share in midday trading) are down more than $43 a share since their close on Jan. 17, a dip of more than 10%. That comes as CEO Elon Musk has been spending a large percentage of his time running the Department of Government Efficiency in Washington, D.C. and not focusing as heavily on Tesla. The steady drop in Teslas stock is likely due to a variety of factors. Mondays decline follows news that Tesla has lost market share in Sweden and Norway, despite a large increase in overall car demand. In January, Tesla sold 405 new vehicles in Sweden, a 44% drop from the year prior. Norway was down 38% with 689 vehicle sales. Also, the looming enforcement of tariffs on China and Canada (Mexico has been given a one-month delay) are scaring investors. Musk recently conceded on an earnings call with analysts that while Tesla has tried to localize its supply chain, its still very reliant on parts from across the world for all our businesses. Therefore, the imposition of tariffs, which is very likely, will have an impact on our business and profitability. Canada is a key supplier of automotive parts, as is China. And Canadian officials are specifically focusing some of their ire about Trumps tariffs on Musk. Premier Doug Ford announced Monday Ontario would scrap a $100 million contact with Starlink, which is part of Musks SpaceX. (Musk met that news with a tweet reading, Oh well Monday afternoon.) Earnings miss The concern surrounding overseas sales and tariffs comes on the heels of the companys disappointing fourth quarter earnings last Wednesday. The company reported earnings of 73 cents per share, compared to analyst expectations of 76 cents and revenues of $25.71 billion, versus an anticipated $27.26 billion. Revenues were down 8% compared to the same quarter the year prior. Last year marked the first time Tesla deliveries came in lower than the year before. All totaled, the automaker delivered 1.8 million vehicles to customers in 2024. (Tesla does not report precise sales figures, so deliveries are the best barometer of that figure.) Tesla did not reply to Fast Companys request for comment about the stock drop. The company did see a big surge in stock price following Trumps election last November, but has surrendered most of those gains. Tesla closed at just over $342 per share on Nov. 20. It peaked just under $480, but now stands around $384. Tesla stock also has a staggeringly high price-to-earnings ratio. On Monday, it stood at 188.95, compared to Apple and Microsoft, which are in the low- to mid-30s, and the average, which generally ranges from 20 to 25. (Higher P/E ratios indicate a company could be overvalued.) Shareholder questions Musk himself could be causing some of the investor agita, however. His focus on DOGE and government issues has not escaped the companys shareholders. Prior to the Q4 earnings call, investor-submitted questions in the companys digital forum with a slew of concerns about the amount of time Musk is spending at the White House, along with some of his recent actions, including a gesture that has been likened to a Nazi salute. A sampling of those reads: How much time does Elon Musk intend to spend at the White House and on government activities vs time and effort dedicated to Tesla? How much time does Elon Musk devote to growing Tesla, solving product issues, and driving shareholder value vs. his public engagements with Trump, DOGE, and political activities? Do you believe hes providing Tesla the focus it needs? Does the board plan to review the negative image that Elon Musk is having on the Tesla brand and the conflicts between his politics and the Mission Statement? We cant pretend that Elons erratic actions arent negatively effecting [sic] the stock price and brands reputation. What is your plan to curtail the CEOs behavior, and/or replace his position to secure a more likely longevity as a brand? None of those questions were answered.
Category:
E-Commerce
All news |
||||||||||||||||||
|
||||||||||||||||||