 |
|
|
|||||
President Donald Trump says he has finally found a way to achieve his goal of removing Federal Reserve Chair Jerome Powell, accusing him of mismanaging the U.S. central bank’s $2.5 billion renovation project.The push comes after a monthslong campaign by Trump to try to rid himself of the politically independent central banker, who has resisted the president’s calls to slash interest rates out of concerns about the administration’s tariffs sparking higher levels of inflation.The president indicated Tuesday that Powell’s handling of an extensive renovation project on two Fed buildings in Washington could be grounds to take the unprecedented and possibly legally dubious step of firing him. “I think it sort of is,” Trump said.“When you spend $2.5 billion on, really, a renovation, I think it’s really disgraceful,” Trump said, adding that he never saw the Fed chair as someone who needed a “palace.”The project has been underway for years, going back to Trump’s first term. But it only recently caught the White House’s attention. Trump maintains that Fed rate cuts would lower the costs of government borrowing, while Powell has warned that a premature rate cut could worsen inflation and ultimately raise those borrowing costs.The risk of the Fed losing its political independence could undermine America’s financial markets, possibly leading to a meltdown in stocks and investors charging a premium to lend to the U.S. economy.Here’s what to know: Ousting Powell risks setting off market panic The Fed chair has been an obstacle in Trump’s efforts to gain total control over the executive branch.Powell and his board have the dual mandate of maximizing employment and keeping prices stable, a task that can require them to make politically unpopular moves such as raising interest rates to hold inflation in check. The general theory is that keeping the Fed free from the influence of the White Houseother than for nominations of Fed officialsallows it to fulfill its mission based on what the economy needs, instead of what a politician wants.An attempt to remove Powell from his job before his term ends in May 2026 would undercut the Fed’s long-standing independence from day-to-day politics and could lead to higher inflation, higher interest rates and a weaker economy.The Supreme Court recently signaled that the president can’t fire Powell simply because Trump disagrees with him on interest rates. But legally he could do so “for cause,” such as misconduct or dereliction of duty.Trump’s workaround appears to be that Powell misrepresented the renovation project in congressional testimony and that the cost is excessive, thus meriting his dismissal. The Fed’s main headquarters is over 90 years old The Fed says its main headquarters, known as the Marriner S. Eccles building, was in dire need of an upgrade because its electrical, plumbing and HVAC systems, among others, are nearly obsolete and some date back to the building’s construction in the 1930s.The renovation will also remove asbestos, lead and other hazardous elements and update the building with modern electrical and communications systems. The H-shaped building, named after a former Fed chair in the 1930s and ’40s, is located near some of Washington’s highest-profile monuments and has references to classical architecture and marble in the facades and stonework. The central bank is also renovating a building next door that it acquired in 2018.The Fed says there has been periodic maintenance to the structures but adds that this is the first “comprehensive renovation.” The renovation costs have ballooned over the years Trump administration officials have criticized the Fed over the project’s expense, which has reached $2.5 billion, about $600 million more than was originally budgeted.Like a beleaguered homeowner facing spiraling costs for a remodeling project, the Fed cites many reasons for the greater expense. Construction costs, including for materials and labor, rose sharply during the inflation spike in 2021 and 2022. More asbestos needed to be removed than expected. Washington’s local restrictions on building heights forced it to build underground, which is pricier.In 2024, the Fed’s board canceled its planned renovations of a third building because of rising costs.The Fed says the renovations will reduce costs “over time” because it will be able to consolidate its roughly 3,000 Washington-based employees into fewer buildings and will no longer need to rent as much extra space as it does now. White House budget director calls renovations ‘ostentatious’ Russ Vought, the administration’s top budget adviser, wrote Powell a letter last Thursday that said Trump is “extremely troubled” about the Fed’s “ostentatious overhaul” of its facilities.The Fed’s renovation plans call for “rooftop terrace gardens, VIP private dining rooms and elevators, water features, premium marble, and much more,” Vought said in his letter.Powell has disputed the claims, which were given wide circulation in a paper issued by the Mercatus Center, a think tank at George Mason University, in March 2025. The paper was written by Andrew Levin, an economist at Dartmouth College and former Fed staffer.“There’s no VIP dining room,” Powell said last month during a Senate Banking Committee hearing. “There’s no new marble. . . . There are no special elevators. There are no new water features. . . . And there’s no roof terrace gardens.”Some of those elements were removed from initial building plans submitted in 2021, the Fed says.But the White House also takes issue with the Fed reducing its renovation costsThe Fed’s changes to its building plans have opened it up to another line of attack: White House officials suggest the Fed violated the terms of the approval it received from a local planning commission by changing its plans.In its September 2021 approval of the project, the National Capital Planning Commission said it “Commends” the Fed for “fully engaging partner federal agencies.” But because the Fed changed its plans, the administration is indicating it needed to go back to the commission for a separate approval.Essentially, White House officials are saying Powell is being reckless with taxpayer money because of the cost of the renovation, but they are also accusing him of acting unethically by scaling back the project to save money.James Blair, the White House deputy chief of staff whom Trump named to the commission, said last Thursday in a post on X that Powell’s June congressional testimony “leads me to conclude the project is not in alignment with plans submited to & approved by the National Capital Planning Commission in 2021.”Speaking last Thursday at the planning commission meeting, Blair said he intends to tour the construction site, review materials from the Fed on how the approved 2021 renovation plans have changed and circulate a letter among his colleagues on the commission that would go to Fed officials. The Fed has asked for an independent review of the project The central bank says, in a series of frequently asked questions on its website, that it is “not subject to the direction” of the commission and has only complied with its directives voluntarily.Instead, the Fed said it is accountable to the Senate and House of Representatives, and is also overseen by an independent inspector general, not the White House. Powell has asked the inspector general to review the costs of the renovation project. Christopher Rugaber and Josh Boak, Associated Press
Category:
E-Commerce
One of the most critical companies in the chipmaking industry is seeing its stock price drop precipitously today. Dutch semiconductor company ASML Holding N.V. (Nasdaq: ASML) reported its second-quarter 2025 results, beating on its most critical metrics, but its stock price is still declining in premarket trading. The reason? Executives made comments about its upcoming 2026 fiscal year that have investors concerned. Heres what you need to know. The most important non-chip company in the chip industry ASML Holding N.V. is headquartered in Veldhoven, Netherlands, and is arguably the most important technology company within Europes borders. Given that ASML is critical to the worlds chipmaking supply chain, the company is also one of the most important tech giants in the world. ASML is not a chipmaker itself. However, it produced the machines that make the chips inside your devices. These machines are known as extreme ultraviolet lithography (EUV) photolithography machines, and they use light to etch patterns into the silicon wafers used in chipmaking. While the world has several photolithography machine companies, ASML is the worlds only maker of EUV photolithography machines. EUV technology is critical in the worlds most advanced chips, including those made by Apple for its Apple Silicon chips and the chips produced by Nvidia, which are crucial for artificial intelligence servers. ASMLs customers include Nvidia and TSMC, the maker of Apples chips. The Dutch company sells its EUV machines to these companies, enabling them to produce their own chips. As noted by CNBC, ASMLs most advanced photolithography machines can be the size of a double-decker bus and cost as much as $400 million each. Without ASMLs machines, the world’s semiconductor manufacturing capability grinds to a halt. ASML beats, but 2026 comments worry investors Thanks to the rise of artificial intelligence, chipmakers are pumping out more advanced chips than everchips that require the EUV photolithography machines that ASML offers. Given that, its little surprise that ASML exceeded investor expectations in its most recent financial quarter. Today, the company announced its Q2 2025 results, in which it reported: 7.7 billion (about $8.9 billion) in net sales 2.3 billion (about $2.6 billion) in net income Gross margin of 53.7% Earnings per share of 5.90 (about $6.85) To put those net sales and net income figures into greater perspective, CNBC notes that analysts were expecting net sales of 7.52 billion (about $8.7 billion) and net income of 2.04 billion (about $2.3 billion). In other words, ASML handily beat expectations. The company also reported net bookingsa metric that indicates customer demandof 5.5 billion (about $6.3 billion), of which 2.3 billion (about $2.6 billion) is for its most advanced EUV photolithography machines. Analysts had been expecting net bookings of 4.19 billion (about $4.8 billion). Why is ASML stock falling? However, despite the welcomed Q2 results, ASMLs stock price has plunged in premarket trading after the company announced its latest financials. That fall has to do with two main factors. First, ASMLs Q3 forecast disappointed investors. The company said it expects to post total net sales of between 7.4 billion (about $8.6 billion) and 7.9 billion. It also expects its gross margin to be between 50% and 52% for the period. The company also said it expects its full fiscal 2025 total net sales to equate to an increase of 15%. As noted by CNBC, analysts had been expecting Q3 net sales to be around 8.3 billion (about $9.1 billion). ASMLs 15% growth forecast for full-year sales was also lower than what it had previously forecast. However, the second factor may be the primary reason for ASML’s share price decline this morningcomments made by ASML executives regarding its 2026 outlook. Announcing its Q2 results, ASML CEO Christophe Fouquet touched on expectations for 2026. Looking at 2026, we see that our AI customers’ fundamentals remain strong, Fouquet said. At the same time, we continue to see increasing uncertainty driven by macro-economic and geopolitical developments. Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage. In other words, ASMLs CEO is admitting he does not know if the company will grow in 2026. His comments suggest that the main uncertainty surrounding its growth potential are related to President Trumps tariffs. ASML is a foreign company that sells a significant amount to American companies, yet it does not have widespread operations in America, making it a potential target for retaliation from Trump and his goal to bring manufacturing back to the United States. Fouquet did not say there would not be growth, but given the tariff uncertainty, he seems to feel it’s more prudent to prepare investors for that possibility. But thats a cautionary message investors have not taken well. As of the time of this writing, ASML shares are down over 7% in premarket trading to $764 per share. Yesterday, shares had closed above $823. As of yesterdays close, ASML shares were up over 18% since the beginning of the year.
Category:
E-Commerce
Stage fright is not a term youd associate with Elvis Presley, but in 1968 he was all shook upwith nerves. Ahead of his make-or-break comeback special after years floundering in Hollywood, the King had cold feet. He told the specials director, Steve Binder, he was terrified, adding, “I dont know if I can do this . . . just me and a guitar in front of people?” He half-joked to his entourage about retreating to Hawaii. Apart from a few close confidants, no one has ever witnessed these intimate moments of reservation. But starting July 17 in London, guests at Elvis Evolution will see an AI-generated Elvis play out these fears, and other key moments of his life. The immersive event will be powered by various types of tech, but the creators want to ensure that none of them get in the way of the magic of being transported back in time. Layered Reality puts on experiential events comprising three layers: tech, theater, and physical elements. The tech is multifaceted, from augmented reality to 3D audio effects; the theater comprises traditional sets and live actors; the physical elements are sensory stimulants like touch and taste. Thats a really intoxicating combination, says founder and CEO Andrew McGuinness. Often they’re kept in separate worlds. We firmly believe they belong together. The company has deployed this mix of elements for Londoners three times before, including in retellings of War of the Worlds, and The Gunpowder Plot, hosted in the eerie vaults below the Tower of London. The new endeavor is far from a 17th-century plot against a kingthough, this one also has a king, or rather, the King. Elvis records the soundtrack to Love Me Tender in a Los Angeles studio in August 1956. [Photo: Courtesy of Elvis Presley Enterprises, LLC/Layered Reality] Back in time with theater and tech Guests will be escorted through a story-based experience of Presleys life, from a young boy, through the rebellious leg shakes of the 50s, through the opulent Vegas years, all on purpose-built sets at Immerse LDN, a new immersive entertainment complex on the River Thames waterfront. Groups will walk through scenes like a 50s diner and a dressing room. At times, walls and sets will move around them. Theyll take on different points of view. You are literally going to walk in his shoes at one point, says Simon Reveley, head of studios, not indicating if those shoes are blue suede. [Image: Courtesy of Layered Reality] Different scenes will employ different tech tactics. We are very deliberately technology agnostic, McGuinness says, stressing that tech is simply a tool to enhance the experience. When it’s at its best, the technology gets out of the way. In past Layered Reality shows, tech ranged from subtle to sensory: in one scene in The Gunpowder Plot, for example, guests hide in pitch dark from priest hunters, with spatial audio and LED floor lights simulating creeping footsteps; in another, a VR-enhanced boat ride layers motion effects with water sprays, cool air, and the salty scent of the seablending physical cues with digital immersion to trick the brain into believing the experience. [Image: Courtesy of Layered Reality] For Elvis, they dont want to give away too much to ruin the element of surprise. Of course, music will be central. Through it all, artificial intelligence helps to remaster sounds, and upscale fotage quality. AI Elvis But AIs starring role is in AI Elvis himself. Guests will come face to face with the recreation of Presley. Layered Reality trained the AI on hours and hours of footage, feeding an algorithm concert clips, Cine 8 films, and thousands of photos. AI Elvis has been done before in 2022, on Americas Got Talent. An actor served as Elvis deepfake double, creating movements to make it look as if Presley were performing Devil in Disguise (with a deepfake Simon Cowell). Reveley explains that with more advanced facial generative AI, you can now tune the algorithm to lean more into the original source material than the human actor. AI can pick up on minute nuances, vital for someone whose expressions, like the lip curl, were so iconic. We all know them so well, and so does the machine learning algorithm, Reveley says. Much of the purpose of AI Elvis is to unearth footage that happened but wasnt capturedlike the nerves before the 68 TV special. Ethics and delays Recreating imagined scenes raises ethical questions, of whether a person no longer living would want to share their most intimate moments with the world. But the team insists its project is different from the Simon Cowell duetor the AI Anthony Bourdain that was controversially made to narrate part of a documentarybecause they arent fabricating something that never happened. AI [is] being a digital archivist rather than an originator, McGuinness says. The Presley estate is also heavily involved, and granted the team access to all the footage. (The Presley estate did not respond to Fast Companys request for comment.) Still image from Singer Presents ELVIS, known as the Kings 1968 comeback special. [Photo: Courtesy of courtesy of Elvis Presley Enterprises, LLC/Layered Reality] To create AI Elvis, Layered Reality partnered with the Mill, a visual effects agency that won an Oscar for bringing Oliver Reed back to life in Gladiator. The Mill was a subsidiary of the postproduction giant Technicolor Group, which since 1915 set the industry standard for color entertainment. But in February, after years of financial struggles, Technicolor went bust. (Fast Company reached out to the Mill to confirm it was also affected, but didnt hear back.) That caused delays; though Layered Reality had ownership of AI Elvis, it had work to finish. They scrambled to hire artists from The Mill on contract to complete the final phases. They pushed back the start date twice, from the original planned date of March. A post-pandemic events boom Its now on course to welcome guests, to experience what McGuinness views as part of a live entertainment revolution. It views its competitors not as other tech or AI companies, but anything else you could be doing that night, from a musical, to mini golf, to that Italian restaurant on the corner of your street [where] youll end up spending 130 pounds. Given that comparison, McGuinness thinks 75 pounds ($102) for a standard ticket is fair. Were in the memory business, [and] too much of our money is still spent on immemorable things, he says. The business banks on a rising demand for these types of events. The term experience economy has existed since 1998, when it appeared in Harvard Business Review, but COVID-19 accelerated the allure, boosting the popularity of experiences like Cosm in Los Angeles and the Sphere in Las Vegas. With that backdrop, Elvis Evolution hopes it can usher in a modern-day comeback. Of course, the 68 one turned out to be a tour de force, full of raw vocals and black leather. Nerves dissipated, and gave way to humor. “I sang to turtles and palm trees for years, Elvis told the audience about his movie career. This is a lot better, dont you think?”
Category:
E-Commerce
All news |
||||||||||||||||||
|
||||||||||||||||||