May 8, 2025

Shares of Tesla were flat in premarket trading Thursday after the EV maker denied a Wall Street Journal report that its board was searching for a replacement for chief executive Elon Musk.

The report, citing comments from sources familiar with the discussions, said that Tesla’s board members reached out to several executive search firms to work on a formal process for finding the company’s next CEO. Shares of Tesla fell as much as 3% in overnight trading on trading platform Robinhood following the news, before paring losses.

Tesla chair Robyn Denholm wrote on the social media platform X that the report was “absolutely false.”

“Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company,” she wrote.

“This is absolutely false (and this was communicated to the media before the report was published). The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead.”

It comes after a sharp drop in the electric vehicle giant’s sales and profits, with its top and bottom lines missing estimates in the first quarter. Musk has admitted that his involvement with the Trump administration could be hurting the automaker’s stock price.

The mega-billionaire said on a Tesla earnings call last week that he plans to spend just a “day or two per week” running the so-called Department of Government Efficiency beginning in May.

Tesla’s total revenue slipped 9% year-on-year to hit $19.34 billion in the January-March quarter. This falls short of the $21.11 billion forecast by analysts, LSEG data shows.

Revenue from its automotive segment declined 20% year-on-year to $14 billion, as the company needed to update lines at its four vehicle factories to start making a refreshed version of its popular Model Y SUV. Tesla also attributed the decline to lower average selling prices and sales incentives as a drag on revenue and profit.

Its net income plunged 71% to $409 million, or 12 cents a share, from $1.39 billion or 41 cents a year ago.

Since the start of the year, its shares have plunged over 30%.

Amazon founder Jeff Bezos plans to sell up to 25 million shares in the company over the next year, according to a financial filing on Friday.

Bezos, who stepped down as CEO in 2021 but remains Amazon’s top shareholder, is selling the shares as part of a trading plan adopted on March 4, the filing states. The stake would be worth about $4.8 billion at the current price.

The disclosure follows Amazon’s first-quarter earnings report late Thursday. While profit and revenue topped estimates, the company’s forecast for operating income in the current quarter came in below Wall Street’s expectations.

The results show that Amazon is bracing for uncertainty related to President Donald Trump’s sweeping new tariffs. The company landed in the crosshairs of the White House this week over a report that Amazon planned to show shoppers the cost of the tariffs. Trump personally called Bezos to complain, and Amazon clarified that no such change was coming.

Bezos previously offloaded about $13.5 billion worth of Amazon shares last year, marking his first sale of company stock since 2021.

Since handing over the Amazon CEO role to Andy Jassy, Bezos has spent more of his time on his space exploration company, Blue Origin, and his $10 billion climate and biodiversity fund. He’s used Amazon share sales to help fund Blue Origin, as well as the Day One Fund, which he launched in September 2018 to provide education in low-income communities and combat homelessness.

Netflix is on a winning streak.

The streaming giant’s stock has traded for 11 straight days without a decline, the company’s longest positive run ever.

Its previous record was a nine-day stretch in late 2018 and early 2019 when the stock traded up for four days, was unchanged for a day and then traded positively for another four days.

The stock is also trading at all-time high levels since it went public in May 2002.

This new streak comes on the heels of Netflix’s most recent earnings report on April 17, in which it revealed that revenue grew 13% during the first quarter of 2025 on higher-than-forecast subscription and advertising dollars.

Netflix has been one of the top performing stocks during the first 100 days of President Donald Trump’s second term, with shares up more than 30% since mid-January. The company has been largely unaffected by Trump’s tariffs and trade war with China and is a service that consumers are unlikely to cut during a recession.

Meanwhile, traditional media stocks have been slammed by a tumultuous market prompted by Trump’s trade policy. Warner Bros. Discovery has lost nearly 10% since Trump took office, while Disney is down 13% in that same period.

Netflix continues to forecast full-year revenue of between $43.5 billion and $44.5 billion.

“There’s been no material change to our overall business outlook,” the company said in a statement last month.

As investors worry about the potential impact of tariffs on consumer spending and confidence, Netflix’s co-CEO Greg Peters said on the company’s earnings call, “Based on what we are seeing by actually operating the business right now, there’s nothing really significant to note.”

“We also take some comfort that entertainment historically has been pretty resilient in tougher economic times,” Peters said. “Netflix, specifically, also, has been generally quite resilient. We haven’t seen any major impacts during those tougher times, albeit over a much shorter history.”

JPMorgan said Thursday that it sees more upside for shares.

“NFLX has established itself as the clear leader in global streaming & is on the pathway to becoming global TV…Advertising Upfronts in May should serve as a positive catalyst to shares,” analysts wrote.

While Netflix has hiked its subscription prices — its standard plan now costs $17.99, its ad-supported plan is $7.99 and premium is $24.99 — it appears to have retained its value proposition for customers. But it’s unclear if the subscriber base is growing or shrinking because the company recently stopped sharing details on its membership numbers, instead focusing on revenue growth.

Chinese bargain retailer Temu changed its business model in the U.S. as the Trump administration’s new rules on low-value shipments took effect Friday.

In recent days, Temu has abruptly shifted its website and app to only display listings for products shipped from U.S.-based warehouses. Items shipped directly from China, which previously blanketed the site, are now labeled as out of stock.

Temu made a name for itself in the U.S. as a destination for ultra-discounted items shipped direct from China, such as $5 sneakers and $1.50 garlic presses. It’s been able to keep prices low because of the so-called de minimis rule, which has allowed items worth $800 or less to enter the country duty-free since 2016.

The loophole expired Friday at 12:01 a.m. EDT as a result of an executive order signed by President Donald Trump in April. Trump briefly suspended the de minimis rule in February before reinstating the provision days later as customs officials struggled to process and collect tariffs on a mountain of low-value packages.

The end of de minimis, as well as Trump’s new 145% tariffs on China, has forced Temu to raise prices, suspend its aggressive online advertising push and now alter the selection of goods available to American shoppers to circumvent higher levies.

A Temu spokesperson confirmed to CNBC that all sales in the U.S. are now handled by local sellers and said they are fulfilled “from within the country.” Temu said pricing for U.S. shoppers “remains unchanged.”

“Temu has been actively recruiting U.S. sellers to join the platform,” the spokesperson said. “The move is designed to help local merchants reach more customers and grow their businesses.”

Before the change, shoppers who attempted to purchase Temu products shipped from China were confronted with “import charges” of between 130% and 150%. The fees often cost more than the individual item and more than doubled the price of many orders.

Temu advertises that local products have “no import charges” and “no extra charges upon delivery.”

The company, which is owned by Chinese e-commerce giant PDD Holdings, has gradually built up its inventory in the U.S. over the past year in anticipation of escalating trade tensions and the removal of de minimis.

Shein, which has also benefited from the loophole, moved to raise prices last week. The fast-fashion retailer added a banner at checkout that says, “Tariffs are included in the price you pay. You’ll never have to pay extra at delivery.”

Many third-party sellers on Amazon rely on Chinese manufacturers to source or assemble their products. The company’s Temu competitor, called Amazon Haul, has relied on de minimis to ship products priced at $20 or less directly from China to the U.S.

Amazon said Tuesday following a dustup with the White House that had it considered showing tariff-related costs on Haul products ahead of the de minimis cutoff but that it has since scrapped those plans.

Prior to Trump’s second term in office, the Biden administration had also looked to curtail the provision. Critics of the de minimis provision argue that it harms American businesses and that it facilitates shipments of fentanyl and other illicit substances because, they say, the packages are less likely to be inspected by customs agents.

Footwear giant Skechers has agreed to be acquired by private equity firm 3G Capital for $63 per share, ending its nearly three-decade run as a public company, the retailer announced Monday.

The price 3G Capital agreed to pay represents a 30% premium to Skechers’ current valuation on the public markets, which is in line with similar takeover deals. Shares of Skechers soared more than 25% after the transaction was announced.

“With a proven track-record, Skechers is entering its next chapter in partnership with the global investment firm 3G Capital,” Skechers’ CEO, Robert Greenberg, said in a news release.

“Given their remarkable history of facilitating the success of some of the most iconic global consumer businesses, we believe this partnership will support our talented team as they execute their expertise to meet the needs of our consumers and customers while enabling the Company’s long-term growth,” he said.

The transaction comes at a difficult time for the retail industry and in particular, the footwear sector, which relies on discretionary spending and overseas supply chains that are now in the crosshairs of President Donald Trump’s trade war. 

Last week Skechers signed onto a letter penned by the Footwear Distributors and Retailers of America trade group asking for an exemption from Trump’s tariffs.

And, a little over a week ago, Skechers withdrew its full-year 2025 guidance “due to macroeconomic uncertainty stemming from global trade policies” as companies brace for a drop in consumer spending that will disproportionately impact the footwear and apparel sectors. 

Skechers declined to say how much of its supply chain is based in China, which is currently facing 145% tariffs, but cautioned that two-thirds of its business is outside of the U.S. and therefore won’t see as much of an impact. 

A source close to the deal who spoke on the condition of anonymity to discuss nonpublic details said the trade environment didn’t force Skechers into a deal and that 3G Capital had been interested in acquiring the company for years.

Tariffs do present some uncertainty in the short term, but 3G Capital believes the long-term outlook of Skechers’ business remains attractive and is well positioned for growth, the person said.

Skechers is the third-largest footwear company in the world behind Nike and Adidas.

Greenberg will stay on as Skechers’ CEO and continue enacting the company’s strategy after the acquisition is completed.

The Bank of England has cut interest rates for the fourth time since August, lowering the base rate to 4.25% from 4.5%, as the central bank grapples with weakening growth, persistent inflation, and global trade disruptions driven by President Trump’s tariff war.

In a closely watched decision, the Bank’s Monetary Policy Committee (MPC) was split. Five members, including Governor Andrew Bailey, supported the 0.25-point cut, while two members backed a larger 0.5-point reduction. The remaining two opted to leave rates unchanged. The split vote surprised analysts, many of whom had expected an 8-1 outcome in favour of a quarter-point cut.

The move brings UK interest rates to their lowest level in two years, amid a fragile global economic backdrop and rising concern over the impact of Trump’s 10% blanket tariff on imports and 145% levy on Chinese goods.

“Inflationary pressures have continued to ease, so we’ve been able to cut rates again today,” said Bailey. “But the past few weeks have shown how unpredictable the global economy can be. That’s why we need to stick to a gradual and careful approach.”

The Bank revised its UK growth forecast downward, projecting GDP to expand by 1% in 2025, 1.25% in 2026, and 1.5% in 2027, a notable downgrade from its previous outlook in February. It also warned that Trump’s tariffs could shave 0.3% off UK growth over the next two years.

While the central bank has not yet factored in the expected UK-US trade deal, anticipated to be announced later today, Bailey welcomed the news, calling it “good news all round.”

Though the global trade war poses a drag on growth, the MPC said it could exert downward pressure on UK inflation, especially as Chinese goods are rerouted to the UK and global energy prices soften.

The Bank now forecasts that UK inflation will peak at 3.5% this summer, before easing to its 2% target by early 2027. That projection is helped by disinflationary effects from global trade shifts and lower oil prices.

However, unemployment is forecast to rise to 5% by the end of next year, from 4.4% today, as economic activity slows.

The Bank acknowledged the £25 billion employers’ National Insurance hike, announced by Chancellor Rachel Reeves last October, is beginning to have a modest impact on hiring. But it said the effect on employment so far has been “fairly small.”

Political and market reactions

Reeves welcomed the rate cut, calling it “good news” for households and businesses: “It makes homeownership more accessible, car finance more affordable and eases the pressure on those paying off personal loans,” she said, though acknowledging families still face cost-of-living challenges.

Economists and analysts broadly expect further cuts. Goldman Sachs forecasts up to seven more quarter-point cuts through early 2026. External MPC members Swati Dhingra and Alan Taylor supported a larger cut, citing global risks and weaker export prices. Meanwhile, Catherine Mann and Huw Pill voted to hold rates steady, citing labour market resilience and persistent inflation expectations.

Lower borrowing costs are expected to breathe life into the UK property market. Matt Thompson, head of sales at Chestertons, said:

“More rate cuts on the horizon and sub-4% mortgage deals will boost buyer activity — particularly among first-time buyers who were sidelined by previous Stamp Duty changes.”

But he warned that limited housing supply could mean waiting for further cuts risks missing out in a competitive market.

Despite fragile growth and political pressure, the Bank reiterated its cautious approach, signalling more rate cuts are likely — but only gradually. With global trade volatility, fiscal headwinds, and investor nerves in play, the MPC faces a fine balancing act in the months ahead.

As Chief Economist George Lagarias at Forvis Mazars summed up: “When growth is sluggish and expected to slow, inflation concerns tend to subside. The UK may face a period of stagflation, but such episodes don’t tend to last — and the Bank knows it.”

Read more:
Bank of England cuts interest rates to 4.25% amid global trade tensions and slowing growth

British Steel has launched a recruitment drive for more than 180 new roles less than a month after the UK government intervened to save the company and protect 2,700 jobs at its Scunthorpe plant.

The move follows a dramatic state rescue in which ministers stepped in after Chinese owner Jingye Group declined to fund a £500 million bailout, prompting an emergency sitting of Parliament and the passage of legislation to bring the steelmaker under temporary state oversight.

With the company’s future now stabilised, British Steel has announced a new jobs fair in Scunthorpe to fill 165 roles at its flagship site, and a further 17 vacancies at its Teesside and Skinningrove facilities in North Yorkshire.

“With the backing of the UK government, we are focused on cementing British Steel as one of the world’s leading manufacturers of steel,” said Allan Bell, the senior director appointed as interim chief executive by ministers.

“These are exciting opportunities across our business, offering rewarding careers which will play important roles in building stronger futures for our business and the UK economy.”

The new roles span a wide range of functions, including legal, environmental chemistry, engineering, labouring, and facilities maintenance. The company says the recruitment push is necessary to meet rising customer demand and to support an increase in production across all sites.

British Steel employs more than 3,000 people, the majority based in Scunthorpe — home to the UK’s last remaining blast furnace producing virgin steel. The government moved to protect the site because of its strategic national importance, serving key sectors such as construction and the railways.

Jingye, British Steel’s Chinese owner, had previously planned to shut the blast furnace as early as this summer, sparking concerns over the UK’s ability to produce primary steel. However, under the government’s direction, the closure has been postponed, with new leadership seeking to transition to greener steelmaking over the next three years.

Interim CEO Bell is backing a £2 billion plan to follow in the footsteps of Tata Steel, which is shifting operations at Port Talbot to electric arc furnaces using recycled scrap. The transition is seen as essential to meet emissions targets and ensure long-term viability for the sector.

British Steel’s rescue and restart of hiring come at a critical moment for the UK’s industrial base. The government cited the company’s role as a “national industrial asset”, underlining its contribution to domestic supply chains and critical infrastructure.

With the raw materials supply chain for iron ore and coking coal now secured, British Steel says it is ready to scale up production and chart a more sustainable future.

The recruitment event, to be held later this month in Scunthorpe, marks a symbolic turning point — not only in the company’s recovery, but in the UK’s renewed commitment to domestic industrial resilience.

Read more:
British Steel to recruit 180 workers after government rescue secures future