Susan Schwab on Trump's Tariff Threats
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Business Insider
27 minutes ago
- Business Insider
Trump considers skipping G20 summit, slams South Africa's 'very bad' policies
United States President Donald Trump has indicated he may not attend the upcoming G20 summit scheduled to take place in South Africa this November, citing his disapproval of the country's policies. President Trump may skip the upcoming G20 summit in South Africa due to policy disagreements. Tensions between the U.S. and South Africa have escalated over issues including land reform laws, foreign policy stances, and relations with BRICS nations. Trump's potential absence highlights growing diplomatic friction, which could impact U.S.–Africa relations long-term. Trump's remarks come amid a deepening strain in U.S.–South Africa relations, fueled by long-standing disagreements over a range of issues including South Africa's land reform laws, its pro-Palestinian stance in the Israel–Gaza conflict, and its growing alignment with BRICS nations. These tensions have prompted the Trump administration to impose multiple sanctions on South Africa, including a 30% tariff on selected South African goods, a move that has further deteriorated bilateral relations. Speaking to reporters aboard Air Force One, Trump said, 'I think maybe I'll send somebody else because I've had a lot of problems with South Africa. They have some very bad policies.' South African officials have yet to issue a formal response to the statement. However, analysts warn that Trump's comments could escalate diplomatic friction ahead of the summit, which many see as a pivotal opportunity for developing countries to press for more inclusive global governance. Trump's policy dispute with South Africa Since the start of his second term in 2025, U.S. President Donald Trump has intensified tensions with South Africa, reviving a diplomatic chill driven by ideological rifts and competing global alliances. His administration has openly criticized South Africa's growing ties with Russia and China, its opposition to Western foreign policy, and its leadership role in BRICS and the Global South. The strain deepened earlier this year when US Secretary of State, Senator Marco Rubio declined an invitation to a G20 preparatory meeting in Johannesburg, citing South Africa's alignment with anti-Western regimes. Soon after, the White House instructed the U.S. Embassy in Pretoria to avoid making logistical arrangements for the G20 summit, signaling a potential boycott unless South Africa altered its stance. The friction reflects Washington's broader frustration with Pretoria's increasingly independent foreign policy, including support for Palestine, resistance to U.S.-backed sanctions, and its decision to host Russian President Vladimir Putin despite an ICC warrant. With the G20 summit now in focus, Trump's administration sees South Africa as part of a rising bloc challenging U.S. influence. What began as diplomatic friction has grown into a full-blown policy standoff that could redefine U.S.–Africa relations for years to come. Trump's potential absence from the summit could have diplomatic implications, as it would mark a rare snub of a major global economic forum hosted on African soil.
Bloomberg
27 minutes ago
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France's Lombard Says US Trade Deal Gives Businesses Visibility
French Finance Minister Eric Lombard said European Union's trade deal with the US gives companies the visibility needed to invest even if the tariffs are a 'lose-lose' situation. 'We found the best possible compromise for our economy,' he said on RTL radio Wednesday. 'If we had retaliated with tariffs of 15% to 20% on US products, it would have made life even more complicated for business — we found a balance that allows them to have visibility and to invest.'
Business Insider
35 minutes ago
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Apple Stock (AAPL) Faces Threat of Service Revenue Plunge
Apple (AAPL) stock may be surging but the main driver of that leap is increasingly coming under threat. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. According to an article in the Wall Street Journal, tech giant Apple's share climb over the last few years – see chart below – has come off the back of not its well-known iPhones but its services division. Services are the Core According to figures from IDC, Apple shipped 46.4 million iPhones globally in the second quarter of 2025, which is down on the 61 million it sold in the second quarter of 2015. As of 2025, it has a 15.7% market share and second place in the worldwide smartphone market. The company saw 1.5% year-over-year growth in Q2 2025, contributing to an overall market that edged up 1.0% to 295.2 million units. What has been really driving the Apple growth is the service side of its business such as iCloud storage and other subscriptions, paid apps and app advertising. Payments related to web search have quintupled since 2015, while device revenue has grown less than 40%. According to Bank of America, services generate gross profit margins over 70%, compared with between 30% to 40% for hardware sales. Bank of America analyst Wamsi Mohan believes that Apple's choice to break out the rapidly growing, highly profitable services segment is 'a reason why investors started paying a bigger earnings multiple for Apple shares.' The growth of services as seen on the chart below has been on the rise since 2020, although the rate is starting to slow. Risks on the Horizon There could be further risks on the horizon which could see it heading into reverse. One of those revolves around the fees Apple collects on sales in its App Store. Bank of America estimated that these account for a third of Apple's annual total services revenue. However, some developers believe the fees are too high and have asked regulators to force changes. Indeed, one California judge has ruled that Apple must allow app developers to sell their iPhone services from their own websites. That could lead to Apple losing 10% of its net profit in the worst-case scenario, although whether developers would make the shift is unlikely. Another element at risk is the money Alphabet-owned Google (GOOGL) pays Apple to ensure it gets to be the default search provider in Apple's Safari web browser. It accounted for about 6% of Apple's overall revenue in the 12 months through March, according to Bank of America. But because it has essentially no costs associated with it, it falls straight to the bottom line, where it accounts for 19%, or nearly a fifth, of Apple's total operating profit. It is also under pressure after the U.S. Justice Department won its antitrust case against Google. The department also asked the judge to throw out the Google and Apple contract. That move is being considered by the judge, which reportedly has led to Apple executives ''losing sleep.' The Apple dream could quickly become more of a nightmare for investors. Is AAPL a Good Stock to Buy Now? On TipRanks, AAPL has a Moderate Buy consensus based on 13 Buy, 11 Hold and 1 Sell ratings. Its highest price target is $275. AAPL stock's consensus price target is $229.11, implying a 7.89% upside.
