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Yahoo
32 minutes ago
- Yahoo
Charter Sheds 80,000 Pay TV Customers in 2nd Quarter, But Streaming Strategy Slows Losses
Shares of Charter Communications fell over 13% on Friday as the cable giant missed Wall Street earnings expectations for its second quarter of 2025, continued to bleed pay TV customers and lost 117,000 Internet customers. Total revenue grew 0.6% to $13.8 billion, boosted by growth of 24.9% in residential mobile and 2.8% growth in residential Internet revenues but offset by lower residential video and advertising sales revenues. Video revenue fell 10% to $3.5 billion, driven by a higher mix of lower priced video packages, $67 million in costs for programmer streaming applications and 'more unfavorable bundled allocation' year over year, offset by price increases. More from TheWrap As Skydance-Paramount Merger Closes, the 'South Park' Trump Takedown Shows the Fight Is On | Analysis Charter Sheds 80,000 Pay TV Customers in 2nd Quarter, But Streaming Strategy Slows Losses 'The Bear' Season 4 Debuts to 917 Million Minutes, Ranking Midway on Nielsen Charts Netflix Thriller 'Untamed' Debuts at No. 1 on Streaming Top 10 | Chart The company shed 80,000 pay TV customers during the quarter for a total of 12.6 million. But the decline marked an improvement from a loss of 408,000 video customers during the same period a year ago, driven by new pricing and packaging launched in September and the early benefits from the inclusion of streaming services in Spectrum's expanded basic packages. Spectrum TV Select packages currently offer the ad-supported versions of Disney+, ESPN+, HBO Max, Paramount+, Peacock, AMC+, ViX and Tennis Channel, with ESPN Unlimited, Hulu, Discovery+ and BET+ slated to launch later this year. Charter began launching a la carte streaming apps to customers without traditional video packages in July, including broadband only. It also plans to launch its video marketplace in the coming months, where users will be able to manage their streaming apps in one place. Advertising sales revenue fell 6.7% to $371 million, primarily driven by lower core and political revenue. Excluding political revenue, ad sales revenue fell 4.4% driven by a challenged local and national ad market, offset by higher advanced ad revenue and better inventory selling capabilities. Here are the quarter's results: Net income: $1.3 billion, up 5.7% from $1.2 billion a year ago. Revenue: $13.8 billion, a 0.6% year-over-year increase, compared to $13.76 billion expected by analysts surveyed by Yahoo Finance. Earnings per share: $9.18 per share, compared to $9.66 per share expected by analysts surveyed by Yahoo Finance. Adjusted EBITDA: $5.7 billion, up 0.5% year-over-year from $5.67 billion a year ago. The latest quarterly results come as Charter previously revealed plans to merge with the privately-held Cox Communications in a $34.5 billion deal to create a mobile, broadband and video giant. The combined company, which will change its name to Cox Communications within a year after closing, was expected to have a total of 35.9 million Internet customers, 14.4 million video customers, 10.6 million mobile lines and 7.6 million voice customers as of the first quarter of 2025, per an investor presentation. Charter and Cox expect to generate $500 million in cost savings within three years after the deal's closing. In a public interest statement filed with the Federal Communications Commission, the companies said the deal would increase choice and give consumers in Cox's footprint the ability to lower their monthly bills by choosing Charter plans, improve the combined company's scale for investment, build a strong competitor to Big Tech and advance quality career opportunities and growth for American workers. Charter is also set to acquire Liberty Broadband. Under the terms of that deal, which is expected to close at the same time as the Cox deal, Liberty Broadband shareholders will receive 0.236 of a share of Charter common stock for each share of Liberty Broadband common stock held, with cash to be issued in lieu of fractional shares. Charter expects to retire roughly 45.6 million shares currently owned by Liberty Broadband and to issue roughly 34 million shares to holders of Liberty Broadband stock. Despite losing 117,000 Internet customers for a total of 29.9 million, the segment's revenue grew by 2.8% year-over-year to $6 billion, driven by 'promotional rate step-ups, rate adjustments and a favorable change in bundled revenue allocation year-over-year.' Mobile service revenue grew 24.9% to $921 million as the company added 500,000 mobile lines during the quarter for a total of 10.9 million, offset by 'less favorable bundled revenue allocation' year-over-year. Other revenue grew 18.9% to $839 million, driven by higher mobile devices sales and a one-time benefit. 'Absent [the Affordable Connectivity Program], we have not seen a material change in the competitive landscape,' Charter CEO Chris Winfrey told analysts on Friday. 'We remain confident that we'll return to Internet customer growth over time through our operating strategy of delivering the best networks and products at the best value for customers, combined with unmatched service.' Looking ahead, Charter expects to grow EBITDA for full year 2025, but warned the third and fourth quarters would be pressured due to last year's political advertising strength. Chief financial officer Jessica Fischer noted a $13 million headwind due to storms and tornadoes in the St. Louis area, Ohio and the broader Midwest. It also expects approximately $11.5 billion in capital expenditures for full year 2025, down from previous guidance of $12 billion, reflecting the timing of 'network evolution spend and lower commercial and subsidized rural line extensions spend.' The majority of the $500 million shortfall will be spent in 2026, Fischer said, and 2025 will be the company's 'peak capital spend' year. Additionally, the company now expects that cash tax payments in calendar year 2025 will total just over $1 billion, down from a range of $1.6 billion to $2 billion, citing new federal tax legislation. 'The new tax legislation will ultimately save us several billion dollars in cash taxes over the next five years, helping to finance our capital expenditures and investments and supporting our free cash flow for at least the next five years, while creating higher free cash flow per share, essentially permanently,' Fischer added. 'We appreciate the efforts of the President Trump and Congress to restore these key business tax provisions, which will provide capital intensive companies like ours the visibility to continue pursuing our long term investments, including the significant investments we will make in the Cox network, driving benefits for customers and employees and improving our competitiveness.' Charter stock is up 3% in the past year, but down 6% year to date. The post Charter Sheds 80,000 Pay TV Customers in 2nd Quarter, But Streaming Strategy Slows Losses appeared first on TheWrap.
Yahoo
an hour ago
- Yahoo
Trump tariffs live updates: US, Japan differ on trade-deal profits; Trump raises tariff baseline rate
The US-Japan trade deal may already be under pressure, as reports on Friday suggest the two sides disagree on how to split profits from Japan's $550 billion investment into the US. President Trump announced the deal on Tuesday, which includes a 15% tariff on imported goods and a $550 billion Japanese investment. However, the sides do not seem aligned on profit sharing, with Japan seeking a split based on contributions, while the US says it would keep 90%. The Japan trade deal may have set a precedent for Trump's new baseline tariff rate. As the US finalized the deal with Japan and advanced talks with the EU, Trump said tariffs would range from 15% to 50%, with tougher partners facing higher rates. Trump's April "Liberation Day" tariffs had set a baseline rate of 10% on all US trading partners. The new floor has taken shape as the US makes progress on deals that have settled around that number. The US and European Union are closing in on a pact, multiple reports have said, even as EU members approved possible retaliatory package on over $100 billion worth of US goods. Reports say US tariffs on EU imports would dip to 15%, instead of the 30% Trump has threatened from Aug. 1. Earlier this week, Trump also said the US had also struck a trade deal with the Philippines, which will see the country's imports face a 19% tariff into the US. Trump said US exports will face no import tax in the Philippines as part of the deal. The White House also unveiled new details of a confirmed trade agreement with Indonesia. Yahoo Finance's Ben Werschkul reported that a 19% tariff will apply to Indonesian goods, as well as a 40% rate on any 'transhipped' goods. US officials said no tax would apply to "99%" of US imports. The deal developments come as prospects for larger pacts with India and Canada remain in question. Trump has threatened 25% to 35% tariffs on those larger trade partners. Read more: What Trump's tariffs mean for the economy and your wallet Here are the latest updates as the policy reverberates around the world. Japan, US differ on how trade-deal profits will be split Japan said Friday that profits from the $550 billion investment deal with the US will be shared based on how much each side contributes. A government official suggested the US will also put in significant funds, but details of the scheme remain unclear. The White House had announced earlier in the week that the US would retain 90% of the profits from the $550 billion US-bound investment and loans that Japan would exchange in return for reduced tariffs on auto and other exports to the US. This would mean that returns would be split 10% for Japan and 90% for the US, according to the White House official, and that it would be "based on the respective levels of contribution and risk borne by each side." Bloomberg News reports: Read more here. Trump: US will sell 'so much' beef to Australia President Trump said on Thursday that the US will sell "so much" beef to Australia, following Canberra relaxing import restrictions. Trump added that other countries who had refused US beef products were on notice. Reuters reports: Read more here. World's No. 3 automaker Kia takes $570M tariff hit in Q2 Reuters reports: Read more here. Puma shares dive after warning of full-year loss, US tariff impact Puma ( shares fell 17% on Friday after the sportswear brand said that it now expects an annual loss due to a decline in sales and US tariffs denting profit. Reuters reports: Read more here. LG Energy Solution warns of slowing EV battery demand due to U.S. tariffs, policy headwinds Reuters reports: South Korean battery firm LG Energy ( Solution warned on Friday of a further slowdown in demand by early next year due to U.S. tariffs and policy uncertainties after it posted a quarterly profit jump. Its major customers Tesla (TSLA) and General Motors (GM) warned of fallout from U.S. tariffs and legislation that will end federal subsidies for EV purchases on September 30. "US tariffs and an early end to EV subsidies will put a burden on automakers, potentially leading to vehicle price increases and a slowdown in EV growth in North America," CFO Lee Chang-sil said during a conference call. Read more here. US business activity rises; tariffs fuel inflation concerns US business activity rose in July, but companies increased the prices for goods and services, supporting the view from economists that inflation will accelerate in the second half of 2025 and it will mainly be due to tariffs on imports. Reuters reports: Read more here. It sounds like Trump now has a new minimum tariff rate: 15% President Trump set a new rhetorical floor for tariffs on Wednesday night in comments in a shift that raises the president's baseline rate from 10%. Yahoo Finance's Ben Werschkul writes: Read more here. Keurig Dr. Pepper brewer sales volume drops 22%, CEO says tariff impacts 'will become prominent' Keurig Dr. Pepper CEO Tim Cofer said that tariffs are putting additional pressure on the company in an earnings call Thursday, especially when it comes to its coffee business, which KDP expects to be "subdued" for the remainder of the year. "Commodity inflation will build as we roll into the back half and we roll into our higher cost hedges on green coffee," Cofer said. "The tariff impacts will become prominent. And we all know that tariff situation is a bit fluid." Keurig is one of the biggest coffee importers in the US, along with Starbucks (SBUX) and Nestle (NSRGY). The US sources most of its coffee from Brazil, which is set to face 50% tariffs on its products on Aug. 1, and Colombia, which faces a tariff rate of 10%. In Keurig's coffee business, appliance volume decreased 22.6% during the quarter, reflecting impacts of retailer inventory management, and K-Cup pod volume decreased 3.7%, reflecting category elasticity in response to price increases, the company reported. "Our retail partners will likely continue to manage their inventory levels tightly, in particular on brewers," Cofer commented. "And then finally, you know we did a round of pricing at the beginning of the year. We've announced another round of pricing that will take effect next month, and we'll need to closely monitor how that elasticity evolves." Read more about Keurig earnings here. The EU's Trump insurance As my colleague detailed below, EU member states voted to impose tariffs on over $100 billion of US goods from Aug. 7. The Financial Times reported that this move that allows the bloc to impose the levies quickly at any point in the future should its trade relationship with the US take a turn for the worse. From the report: Read more here (subscription required). Europe approves $100B-plus tariff backup plan A report in the Wall Street Journal on Thursday said that the European Union has now approved its retaliatory tariff package on US goods that could start in August if no trade agreement is reached. The EU announced on Wednesday that it will hit the US with 30% tariffs on over $100 billion worth of goods in the event that no deal is made and if President Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after Aug. 1. The US exports, which would include goods such as Boeing (BA) aircraft, US-made cars and bourbon whiskey would all face heavy tariffs that match Trump's 30% threat. The approval of the package comes despite the growing optimism that the US and EU will reach a deal that would put baseline tariffs on the bloc at 15%, matching the level the US applied to Japan. The EU is keen to reach a deal with the US but as a cautionary measure has approved 30% tariffs if a deal is not made. Trump tariffs wreaking havoc in Brazil's citrus belt Reuters reports: Read more here. South Korea weighs US investment pledge to trim auto tariff Trade discussions between the US and South Korea have led both sides to investigate the idea of creating a fund to invest in American projects. A report said this possible deal would be similar to the agreement Japan struck Tuesday with President Trump. The details of the plan are still not clear, but the US has been seeking pledges totaling hundreds of billions of dollars. However, further talks on a deal between the two sides may have to wait as a trade meeting between the US and South Korea has been postponed after Treasury Secretary Scott Bessent became unavailable due to a scheduling conflict, South Korea's Finance Ministry said Thursday. Bloomberg reports: Read more here. Hyundai Motor warns of bigger hit from US tariffs after Q2 profit fall Hyundai Motor ( HYMTF) reported a drop in second-quarter operating profit on Thursday. The company cited US tariffs on vehicles and parts as the reason for the decline and that President Trump's trade war had weighed on its bottom line, the automaker also warned of a bigger impact in the current quarter. The group's South Korean shares fell 2% Thursday. Reuters reports: Read more here. Trump lifts tariff baseline rate, warns countries face 15-50% range President Trump appears to have raised the minimum US tariff rate to 15%, up from 10%, as he prepares to set new reciprocal tariffs before his Aug. 1 deadline. 'We'll have a straight, simple tariff of anywhere between 15% and 50%,' Trump said Wednesday at an AI summit in Washington. 'A couple of — we have 50 because we haven't been getting along with those countries too well.' Trump's latest statement that tariffs would begin at 15% is a new twist in his efforts to impose duties on almost every US trading partner. The US and Japan reached a trade agreement this week of 15%, which could be one reason why the US president has decided to increase the baseline tariff rate. The European Union said on Wednesday that it is getting ready to impose 30% tariffs on over $100 billion worth of US goods if no deal is made and if Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after the Aug. 1 deadline. Reports from The Financial Times on Wednesday have said that the EU and the US are now closing in on a 15% trade deal on European imports. Bloomberg News reports: Read more here. EU, US reportedly close in on trade deal The Financial Times reports: And more from Bloomberg: Read more here. Trump says he will trade 'Tariff points' for open markets to the US President Trump pushed one of his priorities in negotiating trade deals on Wednesday, and it wasn't exactly trade deficits. He suggested the US would reduce tariffs in exchange for countries opening their markets, i.e., putting zero tariffs on American-made products. "I will always give up Tariff points if I can get major countries to OPEN THEIR MARKETS TO THE USA," Trump posted on Truth Social. "Another great power of Tariffs. Without them, it would be impossible to get countries to OPEN UP!!! ALWAYS, ZERO TARIFFS TO AMERICA!!!" Trump's social media post came after the European Union announced it was preparing countermeasures against US tariffs, including a 30% tariff on over $100 billion worth of goods. Meanwhile, Indonesia agreed to drop its tariffs on US goods to 0% for 99% of trade. Detroit Three automakers raise concerns about Japan trade deal A group representing General Motors (GM) Ford (F) and Chrysler-parent Stellantis (STLA) raised concerns on Tuesday about the US-Japan trade deal, which could cut tariffs on auto imports from Japan to 15% while leaving tariffs on imports from Canada and Mexico at 25%. Reuters reports: Read more here. SAP falls as trade war concerns temper strong cloud growth Bloomberg News: Read more here. EU readies over $100B no-deal plan to match US 30% tariff The European Union announced on Wednesday it plans to hit the US with 30% tariffs on over $100 billion worth of goods in the event that no deal is made and if President Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after Aug. 1. A European Commission spokesman said that the first part of countermeasures would combine an already approved list of tariffs on $24 billion of US goods and a previously proposed list on an additional on $83 billion of American products into one package. The US exports, which would include goods such as Boeing (BA) aircraft, US-made cars and bourbon whiskey would all face heavy tariffs that match Trump's 30% threat. Bloomberg News reports: Read more here. European auto shares rally after US-Japan trade deal Bloomberg News reports: Read more here. Japan said Friday that profits from the $550 billion investment deal with the US will be shared based on how much each side contributes. A government official suggested the US will also put in significant funds, but details of the scheme remain unclear. The White House had announced earlier in the week that the US would retain 90% of the profits from the $550 billion US-bound investment and loans that Japan would exchange in return for reduced tariffs on auto and other exports to the US. This would mean that returns would be split 10% for Japan and 90% for the US, according to the White House official, and that it would be "based on the respective levels of contribution and risk borne by each side." Bloomberg News reports: Read more here. Trump: US will sell 'so much' beef to Australia President Trump said on Thursday that the US will sell "so much" beef to Australia, following Canberra relaxing import restrictions. Trump added that other countries who had refused US beef products were on notice. Reuters reports: Read more here. President Trump said on Thursday that the US will sell "so much" beef to Australia, following Canberra relaxing import restrictions. Trump added that other countries who had refused US beef products were on notice. Reuters reports: Read more here. World's No. 3 automaker Kia takes $570M tariff hit in Q2 Reuters reports: Read more here. Reuters reports: Read more here. Puma shares dive after warning of full-year loss, US tariff impact Puma ( shares fell 17% on Friday after the sportswear brand said that it now expects an annual loss due to a decline in sales and US tariffs denting profit. Reuters reports: Read more here. Puma ( shares fell 17% on Friday after the sportswear brand said that it now expects an annual loss due to a decline in sales and US tariffs denting profit. Reuters reports: Read more here. LG Energy Solution warns of slowing EV battery demand due to U.S. tariffs, policy headwinds Reuters reports: South Korean battery firm LG Energy ( Solution warned on Friday of a further slowdown in demand by early next year due to U.S. tariffs and policy uncertainties after it posted a quarterly profit jump. Its major customers Tesla (TSLA) and General Motors (GM) warned of fallout from U.S. tariffs and legislation that will end federal subsidies for EV purchases on September 30. "US tariffs and an early end to EV subsidies will put a burden on automakers, potentially leading to vehicle price increases and a slowdown in EV growth in North America," CFO Lee Chang-sil said during a conference call. Read more here. Reuters reports: South Korean battery firm LG Energy ( Solution warned on Friday of a further slowdown in demand by early next year due to U.S. tariffs and policy uncertainties after it posted a quarterly profit jump. Its major customers Tesla (TSLA) and General Motors (GM) warned of fallout from U.S. tariffs and legislation that will end federal subsidies for EV purchases on September 30. "US tariffs and an early end to EV subsidies will put a burden on automakers, potentially leading to vehicle price increases and a slowdown in EV growth in North America," CFO Lee Chang-sil said during a conference call. Read more here. US business activity rises; tariffs fuel inflation concerns US business activity rose in July, but companies increased the prices for goods and services, supporting the view from economists that inflation will accelerate in the second half of 2025 and it will mainly be due to tariffs on imports. Reuters reports: Read more here. US business activity rose in July, but companies increased the prices for goods and services, supporting the view from economists that inflation will accelerate in the second half of 2025 and it will mainly be due to tariffs on imports. Reuters reports: Read more here. It sounds like Trump now has a new minimum tariff rate: 15% President Trump set a new rhetorical floor for tariffs on Wednesday night in comments in a shift that raises the president's baseline rate from 10%. Yahoo Finance's Ben Werschkul writes: Read more here. President Trump set a new rhetorical floor for tariffs on Wednesday night in comments in a shift that raises the president's baseline rate from 10%. Yahoo Finance's Ben Werschkul writes: Read more here. Keurig Dr. Pepper brewer sales volume drops 22%, CEO says tariff impacts 'will become prominent' Keurig Dr. Pepper CEO Tim Cofer said that tariffs are putting additional pressure on the company in an earnings call Thursday, especially when it comes to its coffee business, which KDP expects to be "subdued" for the remainder of the year. "Commodity inflation will build as we roll into the back half and we roll into our higher cost hedges on green coffee," Cofer said. "The tariff impacts will become prominent. And we all know that tariff situation is a bit fluid." Keurig is one of the biggest coffee importers in the US, along with Starbucks (SBUX) and Nestle (NSRGY). The US sources most of its coffee from Brazil, which is set to face 50% tariffs on its products on Aug. 1, and Colombia, which faces a tariff rate of 10%. In Keurig's coffee business, appliance volume decreased 22.6% during the quarter, reflecting impacts of retailer inventory management, and K-Cup pod volume decreased 3.7%, reflecting category elasticity in response to price increases, the company reported. "Our retail partners will likely continue to manage their inventory levels tightly, in particular on brewers," Cofer commented. "And then finally, you know we did a round of pricing at the beginning of the year. We've announced another round of pricing that will take effect next month, and we'll need to closely monitor how that elasticity evolves." Read more about Keurig earnings here. Keurig Dr. Pepper CEO Tim Cofer said that tariffs are putting additional pressure on the company in an earnings call Thursday, especially when it comes to its coffee business, which KDP expects to be "subdued" for the remainder of the year. "Commodity inflation will build as we roll into the back half and we roll into our higher cost hedges on green coffee," Cofer said. "The tariff impacts will become prominent. And we all know that tariff situation is a bit fluid." Keurig is one of the biggest coffee importers in the US, along with Starbucks (SBUX) and Nestle (NSRGY). The US sources most of its coffee from Brazil, which is set to face 50% tariffs on its products on Aug. 1, and Colombia, which faces a tariff rate of 10%. In Keurig's coffee business, appliance volume decreased 22.6% during the quarter, reflecting impacts of retailer inventory management, and K-Cup pod volume decreased 3.7%, reflecting category elasticity in response to price increases, the company reported. "Our retail partners will likely continue to manage their inventory levels tightly, in particular on brewers," Cofer commented. "And then finally, you know we did a round of pricing at the beginning of the year. We've announced another round of pricing that will take effect next month, and we'll need to closely monitor how that elasticity evolves." Read more about Keurig earnings here. The EU's Trump insurance As my colleague detailed below, EU member states voted to impose tariffs on over $100 billion of US goods from Aug. 7. The Financial Times reported that this move that allows the bloc to impose the levies quickly at any point in the future should its trade relationship with the US take a turn for the worse. From the report: Read more here (subscription required). As my colleague detailed below, EU member states voted to impose tariffs on over $100 billion of US goods from Aug. 7. The Financial Times reported that this move that allows the bloc to impose the levies quickly at any point in the future should its trade relationship with the US take a turn for the worse. From the report: Read more here (subscription required). Europe approves $100B-plus tariff backup plan A report in the Wall Street Journal on Thursday said that the European Union has now approved its retaliatory tariff package on US goods that could start in August if no trade agreement is reached. The EU announced on Wednesday that it will hit the US with 30% tariffs on over $100 billion worth of goods in the event that no deal is made and if President Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after Aug. 1. The US exports, which would include goods such as Boeing (BA) aircraft, US-made cars and bourbon whiskey would all face heavy tariffs that match Trump's 30% threat. The approval of the package comes despite the growing optimism that the US and EU will reach a deal that would put baseline tariffs on the bloc at 15%, matching the level the US applied to Japan. The EU is keen to reach a deal with the US but as a cautionary measure has approved 30% tariffs if a deal is not made. A report in the Wall Street Journal on Thursday said that the European Union has now approved its retaliatory tariff package on US goods that could start in August if no trade agreement is reached. The EU announced on Wednesday that it will hit the US with 30% tariffs on over $100 billion worth of goods in the event that no deal is made and if President Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after Aug. 1. The US exports, which would include goods such as Boeing (BA) aircraft, US-made cars and bourbon whiskey would all face heavy tariffs that match Trump's 30% threat. The approval of the package comes despite the growing optimism that the US and EU will reach a deal that would put baseline tariffs on the bloc at 15%, matching the level the US applied to Japan. The EU is keen to reach a deal with the US but as a cautionary measure has approved 30% tariffs if a deal is not made. Trump tariffs wreaking havoc in Brazil's citrus belt Reuters reports: Read more here. Reuters reports: Read more here. South Korea weighs US investment pledge to trim auto tariff Trade discussions between the US and South Korea have led both sides to investigate the idea of creating a fund to invest in American projects. A report said this possible deal would be similar to the agreement Japan struck Tuesday with President Trump. The details of the plan are still not clear, but the US has been seeking pledges totaling hundreds of billions of dollars. However, further talks on a deal between the two sides may have to wait as a trade meeting between the US and South Korea has been postponed after Treasury Secretary Scott Bessent became unavailable due to a scheduling conflict, South Korea's Finance Ministry said Thursday. Bloomberg reports: Read more here. Trade discussions between the US and South Korea have led both sides to investigate the idea of creating a fund to invest in American projects. A report said this possible deal would be similar to the agreement Japan struck Tuesday with President Trump. The details of the plan are still not clear, but the US has been seeking pledges totaling hundreds of billions of dollars. However, further talks on a deal between the two sides may have to wait as a trade meeting between the US and South Korea has been postponed after Treasury Secretary Scott Bessent became unavailable due to a scheduling conflict, South Korea's Finance Ministry said Thursday. Bloomberg reports: Read more here. Hyundai Motor warns of bigger hit from US tariffs after Q2 profit fall Hyundai Motor ( HYMTF) reported a drop in second-quarter operating profit on Thursday. The company cited US tariffs on vehicles and parts as the reason for the decline and that President Trump's trade war had weighed on its bottom line, the automaker also warned of a bigger impact in the current quarter. The group's South Korean shares fell 2% Thursday. Reuters reports: Read more here. Hyundai Motor ( HYMTF) reported a drop in second-quarter operating profit on Thursday. The company cited US tariffs on vehicles and parts as the reason for the decline and that President Trump's trade war had weighed on its bottom line, the automaker also warned of a bigger impact in the current quarter. The group's South Korean shares fell 2% Thursday. Reuters reports: Read more here. Trump lifts tariff baseline rate, warns countries face 15-50% range President Trump appears to have raised the minimum US tariff rate to 15%, up from 10%, as he prepares to set new reciprocal tariffs before his Aug. 1 deadline. 'We'll have a straight, simple tariff of anywhere between 15% and 50%,' Trump said Wednesday at an AI summit in Washington. 'A couple of — we have 50 because we haven't been getting along with those countries too well.' Trump's latest statement that tariffs would begin at 15% is a new twist in his efforts to impose duties on almost every US trading partner. The US and Japan reached a trade agreement this week of 15%, which could be one reason why the US president has decided to increase the baseline tariff rate. The European Union said on Wednesday that it is getting ready to impose 30% tariffs on over $100 billion worth of US goods if no deal is made and if Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after the Aug. 1 deadline. Reports from The Financial Times on Wednesday have said that the EU and the US are now closing in on a 15% trade deal on European imports. Bloomberg News reports: Read more here. President Trump appears to have raised the minimum US tariff rate to 15%, up from 10%, as he prepares to set new reciprocal tariffs before his Aug. 1 deadline. 'We'll have a straight, simple tariff of anywhere between 15% and 50%,' Trump said Wednesday at an AI summit in Washington. 'A couple of — we have 50 because we haven't been getting along with those countries too well.' Trump's latest statement that tariffs would begin at 15% is a new twist in his efforts to impose duties on almost every US trading partner. The US and Japan reached a trade agreement this week of 15%, which could be one reason why the US president has decided to increase the baseline tariff rate. The European Union said on Wednesday that it is getting ready to impose 30% tariffs on over $100 billion worth of US goods if no deal is made and if Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after the Aug. 1 deadline. Reports from The Financial Times on Wednesday have said that the EU and the US are now closing in on a 15% trade deal on European imports. Bloomberg News reports: Read more here. EU, US reportedly close in on trade deal The Financial Times reports: And more from Bloomberg: Read more here. The Financial Times reports: And more from Bloomberg: Read more here. Trump says he will trade 'Tariff points' for open markets to the US President Trump pushed one of his priorities in negotiating trade deals on Wednesday, and it wasn't exactly trade deficits. He suggested the US would reduce tariffs in exchange for countries opening their markets, i.e., putting zero tariffs on American-made products. "I will always give up Tariff points if I can get major countries to OPEN THEIR MARKETS TO THE USA," Trump posted on Truth Social. "Another great power of Tariffs. Without them, it would be impossible to get countries to OPEN UP!!! ALWAYS, ZERO TARIFFS TO AMERICA!!!" Trump's social media post came after the European Union announced it was preparing countermeasures against US tariffs, including a 30% tariff on over $100 billion worth of goods. Meanwhile, Indonesia agreed to drop its tariffs on US goods to 0% for 99% of trade. President Trump pushed one of his priorities in negotiating trade deals on Wednesday, and it wasn't exactly trade deficits. He suggested the US would reduce tariffs in exchange for countries opening their markets, i.e., putting zero tariffs on American-made products. "I will always give up Tariff points if I can get major countries to OPEN THEIR MARKETS TO THE USA," Trump posted on Truth Social. "Another great power of Tariffs. Without them, it would be impossible to get countries to OPEN UP!!! ALWAYS, ZERO TARIFFS TO AMERICA!!!" Trump's social media post came after the European Union announced it was preparing countermeasures against US tariffs, including a 30% tariff on over $100 billion worth of goods. Meanwhile, Indonesia agreed to drop its tariffs on US goods to 0% for 99% of trade. Detroit Three automakers raise concerns about Japan trade deal A group representing General Motors (GM) Ford (F) and Chrysler-parent Stellantis (STLA) raised concerns on Tuesday about the US-Japan trade deal, which could cut tariffs on auto imports from Japan to 15% while leaving tariffs on imports from Canada and Mexico at 25%. Reuters reports: Read more here. A group representing General Motors (GM) Ford (F) and Chrysler-parent Stellantis (STLA) raised concerns on Tuesday about the US-Japan trade deal, which could cut tariffs on auto imports from Japan to 15% while leaving tariffs on imports from Canada and Mexico at 25%. Reuters reports: Read more here. SAP falls as trade war concerns temper strong cloud growth Bloomberg News: Read more here. Bloomberg News: Read more here. EU readies over $100B no-deal plan to match US 30% tariff The European Union announced on Wednesday it plans to hit the US with 30% tariffs on over $100 billion worth of goods in the event that no deal is made and if President Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after Aug. 1. A European Commission spokesman said that the first part of countermeasures would combine an already approved list of tariffs on $24 billion of US goods and a previously proposed list on an additional on $83 billion of American products into one package. The US exports, which would include goods such as Boeing (BA) aircraft, US-made cars and bourbon whiskey would all face heavy tariffs that match Trump's 30% threat. Bloomberg News reports: Read more here. The European Union announced on Wednesday it plans to hit the US with 30% tariffs on over $100 billion worth of goods in the event that no deal is made and if President Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after Aug. 1. A European Commission spokesman said that the first part of countermeasures would combine an already approved list of tariffs on $24 billion of US goods and a previously proposed list on an additional on $83 billion of American products into one package. The US exports, which would include goods such as Boeing (BA) aircraft, US-made cars and bourbon whiskey would all face heavy tariffs that match Trump's 30% threat. Bloomberg News reports: Read more here. European auto shares rally after US-Japan trade deal Bloomberg News reports: Read more here. Bloomberg News reports: Read more here.
Yahoo
4 hours ago
- Yahoo
Americans are struggling to pay bills and feeling anxious about it, FINRA study shows
After a dozen years of a steady climb, there has been a sharp drop in people's ability to make ends meet and save for emergencies. The decrease is substantial, according to the FINRA Investor Education Foundation's new National Financial Capability Study. 'We're seeing a 10 percentage point decrease in the proportion of adults saying that they find it easy to cover their expenses, to pay their bills, from our last survey data published three years ago,' Olivia Valdes, FINRA's senior researcher, told Yahoo Finance. More Americans report spending more than their income, and only a quarter report being satisfied with their current personal financial condition, down from about a third previously. A growing number of folks are also feeling anxious about their finances, Valdes said. 'It's similar when we talk about spending versus saving. More than ever, adults in our data are outspending their income,' she said. According to the data, 26 million more people are struggling to make ends meet than three years ago, and that's across all income bands. Not surprisingly, only 46% of adults have set aside enough money to cover three months' worth of living expenses in case of an emergency, down from 53%. Rise in credit card debt is a factor The number of people who always pay their credit cards in full each month (53%) has slipped by six percentage points, ending the steady increase seen over the previous 15 years. Credit card debt has jumped to nearly 4 in 10 users, from 33% three years ago. Troubling, too, is that nearly half of credit card holders engage in at least one behavior likely to generate hefty interest or fees, such as paying the minimum due, paying late fees, paying over-the-limit fees, or using the card for cash advances. The drivers — rising food and housing costs. Read more: The best ways to pay off credit card debt Brimming with confidence Equally eye-opening from the study is the share of Americans who are bright-eyed about their future finances. Seven in 10 Americans said, "I'm confident that I can meet my financial goals." Delusional? It looks that way when you dig deeper. Nearly 6 in 10 adults have never calculated how much money they need to save for retirement, according to the data. 'Many Americans may not be planning for retirement for several reasons — younger adults might view retirement as too distant to focus on immediately,' Valdes said. Only 30% of people ages 18-34 have calculated their retirement needs, compared to 48% of those 55 and older. There are also sharp differences by household income. Only a fraction — 17% — of those with incomes under $25,000 have tried to plan for retirement, compared to nearly 6 in 10 of those earning $75,000 or more. The reality is that while drilling down to what your retirement needs might be an inexact science, financial knowledge can help get you closer to having enough saved, and ignoring it is never the best road to take. Read more: Retirement planning: A step-by-step guide Financial literacy is 'generally low' That's a problem given the generally low levels of financial literacy in the US. The average respondent correctly answered 3.3 out of seven financial literacy questions posed in the survey. A growing number of people, however, simply answered they didn't know. The questions ran the gamut. For example, suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow? The possible answers: more than $102, exactly $102, less than $102, and don't know. Another was: If interest rates rise, what will typically happen to bond prices? Rise, fall, stay the same, or is there no relationship? Another question: True or false: A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage, but the total interest over the life of the loan will be less. Despite low levels of financial literacy, people tend to have inflated views of their financial knowledge. A majority of respondents (64 percent) give themselves high marks. Those with higher financial literacy are more likely to have taken steps to plan for their long-term financial future, such as calculating retirement savings needs, according to the researchers. 'The low rates of retirement planning are concerning because understanding your specific retirement requirements and saving accordingly is crucial to having sufficient resources in retirement,' Valdes said. Sign up for the Mind Your Money weekly newsletter By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Making ends meet trumps saving for retirement What about actually saving for retirement, not just plotting it out? 'A large swath of the population isn't saving for retirement,' Valdes said. 'Part of this may be because they're struggling elsewhere to make ends meet in their daily lives.' The proclivity to save tends to be influenced by factors like income and education level: 8 in 10 college graduates have a retirement account, in contrast to fewer than 4 in 10 of those with no college education. And only 16% of respondents with incomes less than $25,000 have a retirement account, while 85% with incomes of $75,000 or more have one. All told, just over half of respondents had some kind of investment, either in retirement accounts, outside of retirement accounts, or but how about the staggering number who have nothing invested? That could have repercussions when you consider three decades of living costs many people might need to have set aside. More people are now expecting that they're going to live to 80 or 90 or even more years, and the average life expectancy in America is now 78. 'One of the most important things to help people build and protect wealth is not just their knowledge about financial concepts, but the attitudes that they have, the behaviors that they engage in, whether they're planning ahead, how they feel about their finances, all those things are important indicators of financial capability,' Gerri Walsh, president of the FINRA Investor Education Foundation, told Yahoo Finance. And for those checking if you answered FINRA's questions correctly: The answers are more than $102; fall; true. Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including the forthcoming "Retirement Bites: A Gen X Guide to Securing Your Financial Future," "In Control at 50+: How to Succeed in the New World of Work," and "Never Too Old to Get Rich." Follow her on Bluesky. Sign up for the Mind Your Money newsletter
