My Investing Muse (14Apr25)
Layoffs & Closure news
-
The Lululemon store on the corner of 25th and Broadway in Uptown Oakland has quietly closed its doors for good. - SF Gate
-
Meta, the Menlo Park-based tech giant behind Facebook, WhatsApp and Instagram, is shutting three side-by-side buildings at its large office complex across the bay in Fremont. - SF Gate
-
LL Flooring agreed to sell up to 219 stores and the company's Sandston, Va., distribution center to a subsidiary of private equity firm F9 Investments for a $1 million fixed amount, an inventory price of 57% of landed cost value of acquired inventory and assumed cure costs. - The Street
-
ENERGY DEPT FLAGS 8,500 JOBS FOR POSSIBLE TERMINATION UNDER TRUMP’S FEDERAL WORKFORCE CUTS The U.S. Energy Department has identified over 8,500 “nonessential” positions—including 500 tied to nuclear weapons programs—that could be eliminated under Trump’s executive order for federal downsizing. The cuts span both the Department of Energy and the National Nuclear Security Administration (NNSA), which manages the U.S. nuclear arsenal. Of DOE’s 17,500 federal workers, only 9,004 were labeled “essential.” Critics warn such reductions could endanger energy security, nuclear safety, and innovation. Though no final decisions have been made, the move follows a February mistake in which layoffs at NNSA were reversed after it was found those workers were vital to nuclear stockpile maintenance. Source: AP News
-
Large US companies filed for bankruptcy at the fastest rate in 15 years in the first three months of 2025, S&P Global Market Intelligence said on Thursday (Apr 10). - Business Times
The above are some of the layoff and closure news. Let us monitor this, as this can lead to market-wide concerns.
Tariff Updates
Here are some news extracts concerning tariffs:
Image
China has imposed new trade restrictions on samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. These metals are critical to American big tech. - X user Astraia Intel
Commerce Secretary Lutnick says tariffs on semiconductors and electronics will come in “a month or so.” - X user The Kobeissi Letter (13Apr25)
The US publishes reciprocal tariff exclusions for computers, smartphones, and chip-making equipment. - X user The Kobeissi Letter. It is a concession, but it can also look like inadequate planning. Is this the first list of several exemptions? Why does this start with technology? Is there a different queue for other products for tariff review? Who is listening to the smaller businesses?
Can the tariffs be a way to drain the swamp so that future federal funds do not suffer abuse, waste and fraud? Temporal pains were mentioned. Are tariffs the means to an end that we do not understand? Will the pain be too much for some?
What happens between America and China is not a clash of Tariffs. It is about a clash of cultures.
When there are no orders at 54%, there would be no orders at 104%. Who will suffer more? It is not about folding. It is about how it is done. Let us build bridges instead of walls.
If globalization brings prosperity, what happens when we move away from it? It will be interesting to see how the USA will respond. There will be a few groups of countries:
1. Those who accepted and decided not to contest the tariffs.
2. Those who do not accept the tariffs and asked to meet up
3. Those who decided to drop their tariffs against the US and asked to meet up
4. Those who have responded by raising their tariffs.
The US responses will set precedences for the countries to take reference. Singapore has an FTA in place, and both countries enjoy trade without existing tariffs. However, the Liberation Day announcement has applied a base 10% tariff on Singapore exports to the USA. While the government has asked not to contest, it is interesting to hear from Trump how we can revert back to "no tariffs" - how can we work towards to revert back to the status quo? More volatility is expected. Let us consider some hedging.
My final thoughts
The USA has made some exemptions concerning tariffs. We can expect more “exemptions” made when understanding of their impact reaches the ears and considerations of the leaders.
The current global economy is built upon globalization. Protectionism and De-globalization are inflationary. The idea of reciprocal tariffs is a good move to restore some fairness in the market. The tension and hassle that the tariff have brought much distress. The perception of America as a reliable and consistent global leader has been questioned.
Will there be new trading blocs and alliances formed? Will there be a new world order in a few weeks? Can this be done in time to avoid a possible downturn?
Sometimes, sentiments drive the market more than data. Kingdoms rise and kingdom fall.
Let us review our expenditures, income, and savings. Let us spend within our means, invest with what we can afford to lose, and avoid leverage. I am reviewing my holdings and plan to cut losses with businesses losing their competitive advantages. I would also consider hedging and adding some defensive positions.
Let us do our due diligence before we take up any positions. Let us have a successful week ahead.
Comments