As the Trump administration intensifies efforts to acquire Greenland from Denmarkor take it by forcesome Silicon Valley tech investors are promoting the frozen island as a site for a so-called freedom city, a libertarian utopia with minimal corporate regulation, three people familiar with the matter told Reuters.
The discussions are in early stages, but the idea has been taken seriously by Trump’s pick for Denmark ambassador, Ken Howery, who is expected to be confirmed by Congress in the coming months and lead Greenland-acquisition negotiations, the people said. Howery, whose involvement with the idea hasn’t been previously reported, once co-founded a venture-capital firm with tech billionaire Peter Thiel, a leading advocate for such low-regulation cities. Howery is also a longtime friend of Elon Musk, a top Trump adviser.
Howery declined to comment. The White House did not respond to requests for comment. Sources who spoke to Reuters requested anonymity to discuss private conversations.
The vision for Greenland, one of the people said, could include a hub for artificial intelligence, autonomous vehicles, space launches, micro nuclear reactors and high-speed rail.
The discussions reflect a longstanding Silicon Valley movement to establish low-regulation cities globally, including in the United States, which Trump himself promised to do in a 2023 campaign video. Proponents use different names for variations on the idea, including startup cities or charter cities, with the common goal of spurring innovation through sweeping regulatory exemptions.
The administrations consideration of such a quixotic quest underscores the growing clout of tech magnates and Trumps increasingly expansionist foreign policy. After campaigning on a largely isolationist platform, Trump has since his November election suggested taking back the Panama Canal, annexing Canada and redeveloping the war-torn Gaza Strip after seizing the beachfront land from displaced Palestinians.
Greenland is about three times the size of Texas with a population of only 57,000. But the island is strategically important to the U.S. military, which has a base there, and contains substantial deposits of minerals, including rare-earths.
Trump has refused to rule out taking Greenland by military force if Denmark wont sell it.
We have to have Greenland, Trump said late last month as his Vice President, J.D. Vance, visited a U.S. military base on the island.
Vance toured Greenland with his wife Usha Vance, a visit that ignited protests from Greenlanders, who overwhelmingly oppose becoming part of America, polls show. The island is owned by Denmark but governs itself. Greenland’s new prime minister, Jens-Frederik Nielsen, said the U.S. visit signalled a “lack of respect.”
Speaking to troops at the U.S. military base, Vance accused Denmark of failing to protect Greenland from very aggressive incursions from Russia, and from China and other nations, without detailing the alleged aggression.
The government of Denmark declined to comment on the idea of U.S. tech investors founding a city there. Greenland didn’t respond.
NEW MANIFEST DESTINY
The freedom-city movement reflects a fascination with settling new American frontiers, rooted in nostalgia for the nations 1800s western expansion. Expanding to Greenland can be the dawn of a new Manifest Destiny, said tech investor Shervin Pishevar, referring to the 19th-century philosophy that America was an exceptional nation with a God-given mission to conquer territory.
Thiel, a libertarian and early Trump supporter, wrote in 2009 that he no longer considered democracy compatible with freedom and has advocated escaping politics by colonizing outer space or seasteadingbuilding communities in ungoverned oceans.
Fellow venture capitalist Marc Andreessen, an informal adviser to Musks Department of Government Efficiency (DOGE), is part of a tech-investor consortium seeking to build a city on grazing land outside San Francisco. Another venture capitalist and informal DOGE adviser, Joe Lonsdale, also promotes low-regulation cities. In a statement to Reuters, Lonsdale celebrated expanding our country to Greenland but did not comment on plans for a city there.
Thiel and Andreessen, leading proponents and financiers of the startup-city movement, are among those supportive of a Greenland outpost, two of the sources said. Reuters could not determine whether the two billionaires are actively lobbying the Trump administration for a Greenland city.
Andreessen declined to comment. Thiel spokesman Jeremiah Hall said: Peter isnt involved in any plans or discussions regarding Greenland.” Musk did not respond to comment requests.
Thiel has invested along with Andreessen and Pishevar in Pronomos Capital, a venture-capital firm that has launched a half dozen charter-city projects globally, according to Pronomos founder Patri Friedman, the grandson of famous free-market economist Milton Friedman. Most Pronomos projects are in development and negotiations with various governments, Friedman said, but it has helped finance one existing startup community in Honduras called Próspera.
Pronomos also invested in Praxis, a city-building venture that in October announced $525 million in financing for a new city. Praxis’ investors include Lonsdale, a fund launched by OpenAI CEO Sam Altman and his brothers, and Pishevar, who co-founded Hyperloop One, a defunct venture once championed by Musk.
Praxis cofounder Dryden Brown told Reuters other companies have approached Praxis about helping to establish a Greenland city. Brown flew to Greenland last year. He advocates for building a city there in part because its harsh environment could provide a test site for colonizing Marsone of Musks highest ambitions.
“We must build a prototype of Terminus on Earth before departing for Mars, Brown posted on X in November, using Musks term for a red-planet settlement. I believe Greenland is the place, @elonmusk.
Rachael Levy and Alexandra Ulmer, Reuters
A new executive order from President Donald Trump that’s part of his effort to invigorate energy production raises the possibility that his Department of Justice will go to court against state climate change laws aimed at slashing planet-warming greenhouse gas pollution from fossil fuels.Trump’s order, signed Tuesday, comes as U.S. electricity demand ramps up to meet the growth of artificial intelligence and cloud computing applications, as well as federal efforts to expand high-tech manufacturing. It also coincides with “climate superfund” legislation gaining traction in various states.Trump has declared a “national energy emergency” and ordered his attorney general to take action against states that may be illegally overreaching their authority in how they regulate energy development.“American energy dominance is threatened when State and local governments seek to regulate energy beyond their constitutional or statutory authorities,” Trump said in the order.He said the attorney general should focus on state laws targeting climate change, a broad order that unmistakably puts liberal states in the crosshairs of Trump’s Department of Justice.Michael Gerrard, director of the Columbia University’s Sabin Center for Climate Change Law, said it would be an “extraordinarily bold move” for the federal government to go to court to try to overturn a state climate law.Gerrard said the quickest path for Trump’s Department of Justice is to try to join ongoing lawsuits where courts are deciding whether states or cities are exceeding their authority by trying to force the fossil fuel industry to pay for the cost of damages from climate change.
Democrats say they won’t back down
Democratic governors vowed to keep fighting climate change.California Gov. Gavin Newsom accused Trump of “turning back the clock” on the climate and said his state’s efforts to reduce pollution “won’t be derailed by a glorified press release masquerading as an executive order.”New York Gov. Kathy Hochul and New Mexico Gov. Michelle Lujan Grisham, cochairs of the U.S. Climate Alliance, which includes 22 governors, said they “will keep advancing solutions to the climate crisis.”
Climate superfund laws are gaining traction
Vermont and New York are currently fighting challenges in federal courts to climate superfund laws passed last year. Trump suggested the laws “extort” payments from energy companies and “threaten American energy dominance and our economic and national security.”Both are modeled on the 45-year-old federal superfund law, which taxed petroleum and chemical companies to pay to clean up of sites polluted by toxic waste. In similar fashion, the state climate laws are designed to force major fossil fuel companies to pay into state-based funds based on their past greenhouse gas emissions.Several other Democratic-controlled states, including New Jersey, Massachusetts, Oregon, and California, are considering similar measures.The American Petroleum Institute, which represents the oil and natural gas industries, applauded Trump’s order that it said would “protect American energy from so-called ‘climate superfunds.'”“Directing the Department of Justice to address this state overreach will help restore the rule of law and ensure activist-driven campaigns do not stand in the way of ensuring the nation has access to an affordable and reliable energy supply,” it said.
Court battles are already ongoing
The American Petroleum Institute, along with the U.S. Chamber of Commerce, filed the lawsuit against Vermont. The lawsuit against New York was filed by West Virginia, along with several coal, gas and oil interests and 21 other mostly Republican-led states, including Texas, Ohio, and Georgia.Make Polluters Pay, a coalition of consumer and anti-fossil fuel groups, vowed to fight Trump’s order and accused fossil fuel billionaires of convincing Trump to launch an assault on states.The order, it said, demonstrates the “corporate capture of government” and “weaponizes the Justice Department against states that dare to make polluters pay for climate damage.”Separately, the Department of Justice could join lawsuits in defense of fossil fuel industries being sued, Gerrard said.Those lawsuits include ones filed by Honolulu, Hawaii, and dozens of cities and states seeking billions of dollars in damages from things like wildfires, rising sea levels and severe storms.In the last three months, the U.S. Supreme Court has declined to get involved in a couple climate-themed lawsuits.One was brought by oil and gas companies asking it to block Honolulu’s lawsuit. Another was brought by Alabama and Republican attorneys general in 18 other states aimed at blocking lawsuits against the oil and gas industry from Democratic-led states, including California, Connecticut, Minnesota, New Jersey, and Rhode Island.
Trump’s order set off talk in state Capitols around the U.S.
That includes Pennsylvania, where the governor is contesting a court challenge to a regulation that would make it the first major fossil fuel-producing state to force power plant owners pay for greenhouse gas emissions.John Quigley, a former Pennsylvania environmental protection secretary and a senior fellow at the University of Pennsylvania’s Kleinman Center for Energy Policy, wondered if the Department of Justice would begin challenging all sorts of state water and air pollution laws.“This kind of an order knows no bounds,” Quigley said. “It’s hard to say where this could end up.”
Associated Press reporter Sophie Austin in Sacramento, California, contributed to this report. Follow Marc Levy on X at: https://x.com/timelywriter
Marc Levy, Associated Press
The Prada Group announced a deal Thursday to buy Italy’s Versace from the U.S. luxury group Capri Holdings under terms that value the fashion house at 1.25 billion euros ($1.4 billion).Prada said the addition of Versace’s “highly recognizable aesthetic . . . constitutes a strongly complementary addition” to its portfolio, which includes the Prada and Miu Miu fashion brands. It said Milan-based Versace offered “significant untapped growth potential.”The final value of the deal will be adjusted at closing, expected in the second half of the year. It will be funded by 1.5 billion euros in new debt and has been approved by the Prada and Capri Holdings board of directors.“Versace will maintain its creative DNA and cultural authenticity, while benefitting from the full strength of the Group’s considerable consolidated platform, including industrial capabilities, retail execution and operational expertise,” Prada said in a statement.Versace, founded in 1978 by the late Gianni Versace, has been owned since 2018 by Capri Holdings, which includes Michael Kors and Jimmy Choo.Capri Holdings paid $2 billion for Versace, but had been struggling in the recent era of “quiet luxury” to position the stalwart of Italian fashion with its sexy silhouettes and loud patterns.Last month, Capri Holdings named Dario Vitale as creative director to replace Donatella Versace, who assumed the role after her brother’s 1997 murder. Vitale came from Miu Miu, the stunningly successful youth-driven brand in the Prada Group.Versace was given the new role of chief brand ambassador in the shakeup, which was widely viewed as setting the scene for the long-rumored Prada sale. Miuccia Prada acknowledged the group’s interest on the sidelines of Milan Fashion Week in February.
Colleen Barry, Associated Press
Tech giant Apple chartered cargo flights to ferry 600 tons of iPhones, or as many as 1.5 million, to the United States from India, after it stepped up production there in an effort to beat President Donald Trump’s tariffs, sources told Reuters.
The details of the push provide an insight into the U.S. smartphone company’s private strategy to navigate around the Trump tariffs and build up inventory of its popular iPhones in the United States, one of its biggest markets.
Analysts have warned that U.S. prices of iPhones could surge, given Apple’s high reliance on imports from China, the main manufacturing hub of the devices, which is subject to Trump’s highest tariff rate of 125%.
That figure is far in excess of the tariff of 26% on imports from India, but which is now on hold after Trump called a 90-day pause this week that excludes China.
Apple “wanted to beat the tariff,” said one of the sources familiar with the planning.
The company lobbied Indian airport authorities to cut to six hours the time needed to clear customs at the Chennai airport in the southern state of Tamil Nadu, down from 30 hours, the source added.
The so-called “green corridor” arrangement at the airport in the Indian manufacturing hub emulated a model Apple uses at some airports in China, the source said.
About six cargo jets with a capacity of 100 tons each have flown out since March, one of them this week just as new tariffs kicked in, the source and an Indian government official said.
The packaged weight of an iPhone 14 and its charging cable come to about 350 grams (12.35 oz), Reuters measurements show, implying the total cargo of 600 tons comprised about 1.5 million iPhones, after accounting for some packaging weight.
Apple and India’s aviation ministry did not respond to a request for comment. All the sources sought anonymity as the strategy and discussions were private.
Apple sells more than 220 million iPhones a year worldwide, with Counterpoint Research estimating a fifth of total iPhone imports to the United States now come from India, and the rest from China.
Trump consistently increased U.S. tariffs on China, to stand at 125% by Wednesday, from 54% earlier.
At the 54% tariff rate, the $1,599 cost of the top-end iPhone 16 Pro Max in the United States would have surged to $2,300, calculations based on projections by Rosenblatt Securities show.
SUNDAY SHIFTS
In India, Apple stepped up air shipments to meet its goal of a 20% increase in usual production at iPhone plants, attained by adding workers, and temporarily extending operations at the biggest Foxconn India factory to Sundays, the source added.
Two other direct sources confirmed the Foxconn plant in Chennai now runs on Sundays, which is typically a holiday. The plant turned out 20 million iPhones last year, including the latest iPhone 15 and 16 models.
As Apple diversifies its manufacturing beyond China, it has positioned India for a critical role. Foxconn and Tata, its two main suppliers there, have three factories in all, with two more being built.
Apple spent about eight months to plan and set up the expedited customs clearance in Chennai, and Prime Minister Narendra Modi’s government asked officials to support Apple, one senior Indian official said.
Foxconn shipments from India to the United States surged in value to $770 million in January and $643 million in February, compared to the range of $110 million to $331 million in the prior four months, commercially available customs data shows.
More than 85% of the January and February air shipments of Foxconn were offloaded in Chicago, Los Angeles, New York and San Francisco.
Foxconn did not respond to Reuters’ queries.
Aditya Kalra, Abhijith Ganapavaram and Munsif Vengattil, Reuters
The European Union’s executive commission said Thursday it will put retaliation measures on hold for 90 days to match President Donald Trump’s pause on his sweeping new tariffs on global trading partners and leave room for a negotiated solution.European Commission President Ursula von der Leyen said that the commission, which handles trade for the bloc’s 27 member countries, “took note of the announcement by President Trump.”New tariffs on 20.9 billion euros ($23 billion) of US goods will be put on hold for 90 days because “we want to give negotiations a chance,” she said in a statement.But she warned: “If negotiations are not satisfactory, our countermeasures will kick in.”Trump imposed a 20% levy on goods from the EU as part of his onslaught of tariffs of 10% and upward against global trading partners but said Wednesday he will pause them for 90 days to give countries a chance to negotiate solutions to U.S. trade concerns.Countries subject to the pause will face Trump’s 10% baseline tariff.Before Trump’s announcement, EU member countries voted to approve a set of retaliatory tariffs on $23 billion in goods in response to his 25% tariffs on imported steel and aluminum that took effect in March. The EU, the largest trading partner of the U.S., described them as “unjustified and damaging.”The EU tariffs were set to go into effect in stages, some on April 15 and others on May 15 and Dec. 1. The EU commission didn’t immediately provide a list of the goods.Members of the EU the world’s largest trading bloc have said they prefer a negotiated deal to resolve a trade war that damages the economies on both sides. The bloc’s top trade official has shuttled between Brussels and Washington for weeks trying to head off a conflict.The targeted goods are a tiny fraction of the 1.6 trillion euros ($1.8 trillion) in U.S.-EU annual trade. Some 4.4 billion euros in goods and services crosses the Atlantic each day in what the European Commission calls “the most important commercial relationship in the world.”The EU has targeted smaller lists of goods in hopes of exerting political pressure and avoiding economic damage from a wider escalation of tit-for-tat tariffs.The EU is also working on a further set of countermeasures in response to Trump’s blanket 20% tariff on all European goods, now suspended. That could include measures aimed at U.S. tech companies and the services sector as well as trade in goods.Still, von der Leyen said that Europe intends to diversify its trade partnerships.She said that the EU will continue “engaging with countries that account for 87% of global trade and share our commitment to a free and open exchange of goods, services, and ideas,” and to lift barriers to commerce inside its own single market.“Together, Europeans will emerge stronger from this crisis,” von der Leyen said.-McHugh reported from Frankfurt, Germany
Lorne Cook and David McHugh, Associated Press
One recent rainy afternoon, I found myself in an unexpected rolephilosophy teacher to a machine. I was explaining the story of the Bhagavad Gita to a leading large language model, curious to see if it could grasp the lessons at the heart of one of the world’s most profound philosophical texts. The LLMs responses were impressively structured and fluent. They even sounded reflective at times, giving a sense that the AI model knew that it was itself part of this millennia-long conversation.
Yet there was something fundamental that was missing from all the answers the machine gave methe lived experience that gives wisdom its true weight. AI can analyze the Gita, but it does not feel Arjuna’s moral dilemma or the power of Krishna’s guidance. It does not struggle with duty, fear, or consequence, and it does not evolve through a process of personal growth. AI can simulate wisdom, but it cannot embody it.
The irony wasn’t lost on me. One of humanity’s oldest philosophical texts was testing the limits of our newest technology, just as that technology challenges us to rethink what it means to be human.
Technology is just one part of the story
As a founder of several technology companies and an author on innovation, I’ve followed AI’s evolution with both excitement and trepidation. But it was as a father that I first truly understood how important this technology will be for all of us.
When my son was diagnosed with multiple myeloma, a rare blood cancer, I spent hundreds of hours using LLMs to find and analyze sources that might help me understand his condition. Every flash of insight I gained and every machine hallucination that steered me down the wrong path left a permanent mark on me as a person. I began to see that the technical challenges involved in implementing AI are just one part of the story. Much more important are the philosophical questions this technology raises when it leaves its imprint on our lives.
Arjuna, Krishna, and the Morality of Inaction
In the Bhagavad Gita, the warrior Arjuna faces an impossible choice. Seeing his family and teachers arrayed on the battlefield across from him in the opposing army, he lays down his weapons. Unwilling to harm those he loves, he believes that inaction will absolve him of responsibility for the deaths that will take place when the armies clash.
His charioteer, the god Krishna, disagrees, sharing an invaluable piece of wisdom that still resonates today: “No one exists for even an instant without performing action; however unwilling, every being is forced to act.”
Arjuna may think that his refusal to participate in the battle removes him from the moral fray just as it does from the physical conflict. But Krishna shows him that this is not so. Sitting out the battle will have consequences of its own. Krishna may not kill those he values on the other side, but without his protection, many on his own side will fall. His choice not to act is an action with consequences of its own.
Decisions (and Nondecisions) Have Consequences
This mirrors our predicament with AI. Many people today wish they could opt out of the AI revolution entirelyto disengage from a technology that writes essays, diagnoses diseases, powers weapons of war, and mimics human conversation with often unsettling accuracy. But as Krishna taught Arjuna, inaction is not an option. Those who want to wash their hands of the problem empower others to make decisions on their behalf. There is no way to rise above the fray. The only question is whether or not we will engage wisely with AI.
This wisdom extends beyond individual choices to organizational and societal responses. Every business decision about whether to adopt AI, every regulatory framework that governments consider, every educational curriculum that addresses (or ignores) AI literacyall are actions with consequences. Even choosing not to implement AI is itself a significant action with far-reaching effects. As Krishna taught Arjuna, we cannot escape the responsibility of choice.
AI As a Mirror of Societyand Business
AI systems, and LLMs in particular, hold up a mirror to humanity. They reflect back at us all the human-created content they have been trained on, both the good and the bad. And this has ethical, social, and economic implications.
If AI-driven recommendations reinforce past trends, will innovation and sustainability suffer? If algorithms favor corporate giants over independent brands, will consumers be nudged toward choices that consolidate market power? AI doesn’t just reflect historyit is shaping the future of commerce. As such, it requires careful human oversight.
Recently, I conducted an experiment with a major retailer’s recommendation engine. The algorithm consistently steered me toward established brands with large advertising budgets, even when smaller companies offered better products or alternative options that might have interested me. This algorithmic preference wasn’t maliciousit simply optimized for historical purchasing patterns and profit margins. Yet its cumulative effect could make it harder for innovative, purpose-driven companies to gain visibility, potentially slowing the adoption of alternative business models.
AI and Philosophy
AI-driven automation is also transforming the workforce, reshaping entire industries, from journalism to customer service to the creative arts. This transition is bringing new efficiencies but it also raises critical questions: How do we ensure that the economic displacement of human workers does not widen inequality? Can we create AI systems that augment human work rather than replace it?
These are not just technical questions but questions with deeply philosophical ramifications. They demand that we think about issues such as the value of labor and the dignity of work. At a time when so much attention is being paid to bringing manufacturing jobs back to the United States, they also have an intensely political dimension. Will reshoring matter if these jobs, and many more, are automated within just a few years?
As AI becomes more capable, we must also ask whether our reliance on it weakens human creativity and problem-solving skills. If AI generates ideas, composes music, and writes literature, will human originality decline? If AI can complete complex tasks, will we become passive consumers of algorithmic output rather than active creators? The answers to these questions will depend not just on AI’s capabilities but on how we choose to integrate this technology into our lives.
The Middle Way
Public sentiment toward AI swings between utopian optimism and dystopian dread, and I have witnessed this same polarization firsthand in boardrooms and policy discussions. Some see AI as a panacea for global problemscuring diseases, reversing climate change, creating prosperity. Others fear mass unemployment, autonomous weapons, and existential threats. I have seen senior leaders chasing the latest technology without thinking about how it can help deliver on the companys mission while others reect out of hand the possibility that AI could do more than automate a small number of IT services.
The Buddha taught the virtue of the Middle Way: a path of balance that avoids extremes. Between the fascination of the AI maximalists and the fear of the AI Luddites lies a more balanced approachone informed by both technological innovation and ethical reflection.
We can strike this balance only if we start by asking what values should guide the development and implementation of AI. Should efficiency always take precedence over human well-being? Should AI systems be allowed to make life-and-death decisions in healthcare, warfare, or criminal justice? These are ethical dilemmas we must confront now. We cannot afford to sit idle while these questions are answered in a piecemeal way depending on what seems to be most convenient at the moment. If we allow unreflective answers about AI usage to become deeply embedded in our social structures, it will be all but impossible to change course later.
The Path Forward
Jean-Paul Sartre, the influential French existentialist philosopher, argued that human beings are condemned to be freeour choices define us and we cannot escape the need to impose meaning on life through those choices. The AI revolution presents us with a new defining choice. We can use this technology to amplify distraction, division, and exploitation, or we can take it as a catalyst for human growth and development.
Transcending what we are now does not mean finding an escape from our humanity but rather finding a way to fulfill its potential at the highest possible level. It means embracing wisdom, compassion, and moral choice while acknowledging our limitations and biases. AI should not replace human judgment but rather complement itembodying our highest values while compensating for our blind spots.
As we stand at this technological crossroads, the wisdom of ancient philosophical traditions offers valuable guidance, from the Bhagavad Gita and Buddhist mindfulness to Aristotle’s virtue ethics and Socratess self-reflection. These traditions remind us that technological progress must be balanced with ethical development, that means and ends cannot be separated, and that true wisdom involves both knowledge and compassion.
Just as the alchemists of old sought the philosopher’s stonea mythical substance capable of transforming base metals into goldwe now seek to transform our technological capabilities into true wisdom. The search for the philosopher’s stone was never merely about material transformation but about spiritual enlightenment. Similarly, AI’s greatest potential lies not in its technical capabilities but in how it might help us better understand ourselves and our place in the universe.
A more human future
This journey of philosophical reflection cannot be separated from technological development; it must be integral to it. We must cultivate what the ancient Greeks called phronesisthe practical wisdom that can guide action in complex situations. This wisdom enables us to navigate uncertainty, to accept that we cannot predict every outcome of technological change, and yet to move forward with both courage and caution.
By balancing innovation with caution, efficiency with meaning, and technological progress with human values, we can create a future that enhances rather than diminishes what is most valuable about being human. We can build AI systems that amplify our creativity rather than replacing it with mechanistic outputs, that expand our choices rather than constraining them, that deepen our human connections rather than substituting virtual alternatives.
In doing so, we may finally realize what philosophers have sought throughout history: not just mastery over nature, but wisdom about how to live well in an ever-changing and uncertain world.
U.S. stocks soared to one of their best days in history on a euphoric Wall Street Wednesday after President Donald Trump said he would back off on most of his tariffs temporarily, as investors had so desperately hoped he would.The S&P 500 surged 9.5%, an amount that would count as a good year for the market. It had been sinking earlier in the day on worries that Trump’s trade war could drag the global economy into a recession. But then came the posting on social media that investors worldwide had been waiting and wishing for.“I have authorized a 90 day PAUSE,” Trump said, after recognizing the more than 75 countries that he said have been negotiating on trade and had not retaliated against his latest increases in tariffs.Treasury Secretary Scott Bessent later told reporters that Trump was pausing his so-called ‘reciprocal’ tariffs on most of the country’s biggest trading partners, but maintaining his 10% tariff on nearly all global imports.China was a huge exception, though, with Trump saying tariffs are going up to 125% against its products. That raises the possibility of more swings ahead that could stun financial markets. The trade war is not over, and an escalating battle between the world’s two largest economies can create plenty of damage. U.S. stocks are also still below where they were just a week ago, when Trump announced worldwide tariffs on what he called “Liberation Day.”But on Wednesday, at least, the focus on Wall Street was on the positive. The Dow Jones Industrial Average shot to a gain of 2,962 points, or 7.9%. The Nasdaq composite leaped 12.2%. The S&P 500 had its third-best day since 1940.The relief came after doubts had crept in about whether Trump cared about the financial pain the U.S. stock market was taking because of his tariffs. The S&P 500, the index that sits at the center of many 401(k) accounts, came into the day nearly 19% below its record set less than two months ago.That surprised many professional investors, who had long thought that a president who used to crow about records for the Dow under his watch would pull back on policies if they sent markets reeling.Wednesday’s rally pulled the S&P 500 index away from the edge of what’s called a “bear market.” That’s what professionals call it when a run-of-the-mill drop of 10% for U.S. stocks, which happens every year or so, graduates into a more vicious fall of 20%. The index is now down 11.2% from its record.Wall Street also got a boost from a relatively smooth auction of U.S. Treasurys in the bond market Wednesday. Earlier jumps in Treasury yields had rattled the market, indicating increasing levels of stress. Trump himself said Wednesday that he had been watching the bond market “getting a little queasy.”Analysts say several reasons could be behind the rise in yields, including hedge funds and other investors having to sell their Treasury bonds to raise cash in order to make up for losses in the stock market. Investors outside the United States may also be selling their U.S. Treasurys because of the trade war. Such actions would push down prices for Treasurys, which in turn would push up their yields.Regardless of the reasons behind it, higher yields on Treasurys add pressure on the stock market and push upward on rates for mortgages and other loans for U.S. households and businesses.The moves are particularly notable because U.S. Treasury yields have historically droppednot risenduring scary times for the market because the bonds are usually seen as some of the safest possible investments. This week’s sharp rise had brought the yield on the 10-year Treasury back to where it was in late February.After approaching 4.50% in the morning, the 10-year yield pulled back to 4.34% following Trump’s pause and the Treasury’s auction. That’s still up from 4.26% late Tuesday and from just 4.01% at the end of last week.Of course, the trade war is not over. Bessent and Trump clearly showed their anger at China, which has been ratcheting up its own tariffs on U.S. goods and announcing other countermeasures with each move Trump has made.China earlier said it would raise tariffs on U.S. goods to 84% on Thursday. “If the U.S. insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end” the Ministry of Commerce said.Later the U.S. Treasury secretary said in a message to countries worldwide, but perhaps most directly aimed at China, “Do not retaliate, and you will be rewarded.”Wednesday’s rally provided the latest reminder that some of the U.S. stock market’s best days have been clustered around some of its worst days historically. That’s one of the reasons many financial advisers suggest not trying to time the market and selling stocks and other investments meant for the long term when nervous, because of the risk of missing out on such huge up days.The biggest gain for the S&P 500 since World War II was an 11.6% surge on Oct. 13, 2008, for example. That was during the depths of the Great Recession, when worries were high that the financial system was collapsing and the S&P 500 was in the midst of a nearly 57% plunge from its peak in late 2007 until its bottom in March 2009. A couple weeks later, the index had another one of its best days in history, soaring 10.8%.Wednesday’s gains were widespread across the U.S. stock market, and 98% of the stocks in the S&P 500 index rallied.Leading the way were airlines and other stocks that need customers feeling confident enough to travel for work or for vacation.Delta Air Lines soared 23.4%. Earlier in the day, it had pulled financial forecasts for 2025 as the trade war scrambles expectations for business and household spending and depresses bookings across the travel sector. All told, the S&P 500 rocketed higher by 474.13 points to 5,456.90. The Dow Jones Industrial gained 2,962.86 to 40,608.45, and the Nasdaq composite surged 1,857.06 to 17,124.97.In stock markets abroad, indexes tumbled across most of Europe and much of Asia after they closed before Trump’s announcement.London’s FTSE 100 dropped 2.9%, Tokyo’s Nikkei 225 sank 3.9% and the CAC 40 fell 3.3% in Paris. Chinese stocks were an outlier, and indexes rose 0.7% in Hong Kong and 1.3% in Shanghai.
AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
Stan Choe, AP Business Writer
Yesterday was a head-spinning day in the markets. After President Donald Trump announced out of the blue that he would be placing a 90-day pause on reciprocal tariffs for many countriesexcluding Chinastocks rallied. As noted by CNBC, the S&P 500 had its biggest one-day gain since 2008. It surged 9.52% to 5,456. Meanwhile, the Dow rallied 7.87%, and the Nasdaq climbed 12.16%.
Yet despite the market recovery, one stock had a particularly bad day. WW International, Inc. (Nasdaq: WW), owner of the WeightWatchers brand of weight management products, saw its shares crash over 62%. Heres what you need to know about the WW stock plunge.
WW International reportedly mulling Chapter 11 bankruptcy
The main driver of WW International, Inc.s stock price fall yesterday was a report from the Wall Street Journal that said the company was preparing to file for bankruptcy in the coming months. After the report was published, WW stock plummeted.
Its important to note that WW International has said nothing publicly about any bankruptcy plans or the WSJs report. However, the WSJ cited people familiar with the matter in its reporting.
Fast Company has reached out to WW International for confirmation of its bankruptcy plans.
According to the report, one of the big financial challenges affecting WW International is that the company has over $1.4 billion worth of bonds and loans that are set to come due in 2028 and 2029. The report also says that the company would prefer to restructure its balance sheet outside of court processes, but because WW International is publicly traded, that option is likely not feasible.
Ozempic and a lackluster 2024
The report notes that one of the main challenges WeightWatchers has faced in recent years is the rise of weight loss drugs like Ozempic. This, combined with an aging subscriber base and a failure to attract younger users, has resulted in a diminished brand image.
Partly due to the above, the company has faced financial headwinds. In February, WW International reported its full-year Fiscal 2024 results, in which it said that it made $785.9 million in revenues but that subscription revenues were down 5.6% from the year earlier.
The company also reported an operating loss of $236.2 million for fiscal 2024 and a net loss of $345.7 million. Announcing its results at the time, the companys new CEO, Tara Comonte, acknowledged the company was in a period of significant transition as we navigate industry shifts and reposition our business for long-term growth.
In 2024, the company launched a telehealth arm aimed at providing weight loss drugs, but that endeavor has struggled.
Early in 2024, WeightWatchers lost its most prominent board member, Oprah Winfrey, when the media mogul announced her departure from the company because she wanted to avoid any appearance of a conflict of interest with a TV show she was making about weight loss drugs.
WW stock plummets
After the Wall Street Journal published its report about WW Internationals alleged bankruptcy plans, WW stock plummeted yesterday. Shares fell a staggering 62.21% in the trading session. But while that is a massive double-digit drop, it only equated to a per-share loss of slightly over 28 cents. WW shares had already been below $1 per share since early February. They ended up closing at 0.175 yesterday.
As of the time of this writing, in premarket trading this morning, WW shares have recovered slightlyup about 2.9% to around 18 cents per share.
Year to date, WW shares have fallen over 86%, and over the past 12 months, WW shares have declined more than 91% as of yesterdays close. Over the past five years, WW shares are down more than 99%. Back in June 2018, WW shares traded above $100 per share.
Jason Momoa is a tough act to follow. Especially if youre a Guinness marketer. Last year, the brand partnered with Momoa to direct and star in a U.S. spot for his favorite beer that ended up getting 13 billion impressions.
So this year, Guinness decided to celebrate an even more valuable partnerits actual customers and fans. For the newest iteration of the long-running Lovely Day for a Guinness taglinefirst rolled out in a 1935 ad campaignthe brand collected stories from customers across all 50 states.
Among the stories is the Treme Brass Brand in New Orleans, who share pints of Guinness before taking the stage. The Chicago Plumbers Union are in there, as theyve been dyeing the Chicago River green on St. Patricks Day since 1962. Theres also Minnesotas Brainerd Jaycees Ice Fishing Extravaganza, which claims to be the worlds largest ice fishing competition.
Guinnesss North American vice-president of marketing Joyce He says the goal was to illustrate how Guinness is not just for St. Patricks Day or an Irish pub (though it is very much about those things). As we delved into the work, the bit that bubbled up that felt so magical was, instead of writing a story and casting actors, we know there’s real people out there who love the brand and have their real Guinness moments, so let’s go and find them, says He.
Real fans
Created with agency Uncommon, the new campaign solicited stories from real U.S. customers before St. Patricks Day to find as many as it could to feature. The move is the latest example of a brand shining the spotlight on its own customers for a major advertising moment, like Taco Bells Super Bowl ad featuring more than 400 fans.
The more than 250-year-old brand has seen a surge in popularity recently, even running short on supply in the UK ahead of the holidays late last year. Some credit the boost to an overall interest in stout among younger customers, which includes the viral splitting the G social trend. Whether youre aiming to get your beer level down to evenly split the word Guinness on a pint glass in your first sip or not, He is hoping the diversity of locations and occasions in the new campaign will give people ideas.
We know there’s a massive opportunity beyond the pub, she says. Of course, a Guinness in a pub is amazing and magical, but it’s also really great with Mexican food, and Asian food, and seafood and oysters. I think what’s worked really well for us is honestly just staying true to what’s been true about the brand for over 260 years, and just finding new ways to share that with beer people and being really, really focused about it.
Commercial tradition
Guinness has long navigated the balancing act between its Irish heritage and the place of prominence in pubs and St. Patricks Day that comes with it and extending its reach to a broader audience.
Here are three of its best-ever ads to defy the Guinness stereotype.
Surfer (1998)
Directed by Jonathan Glazer (The Zone of Interest, Under The Skin, Sexy Beast), this ad won every major advertising award, and has been named by many as one of the best commercials of all-time.
Sapeurs (2014)
Here the brand heads to Brazzaville, the capital of the Republic of Congo, in celebration of the Society of Elegant Persons of the Congo, or Sapeurs. Created with AMV BBDO, the spot spotlights a real group of men from all walks of life, who make up the group united by a love of style. The ad was also complemented by a short doc called The Men Inside The Suits, and won director Nicolai Fuglsig a 2015 Directors Guild Award for Outstanding Achievement in Commercials.
Compton Cowboys (2018)
This was another portrait of a compelling group of friends, this time in Compton, California. Another from AMV BBDO, the ad is told from the perspective of Keenan Abercrombie, who tells us about how he and his friends care for and ride horses in their city better known for its gang violence.
Over the last year, there has been no shortage of new career trends: From the great stay to revenge quitting, employees are rethinking their careers, their relationship to their employers, and redefining what success looks like as we potentially head into a recession. The latest trend: the glass elevator. Just like in Charlie and the Chocolate Factory, the glass elevator can take you in any direction in your career.
We are seeing a new glass elevator trend in the workplace, where more people are opting for horizontal job moves at their current employer instead of seeking a different role at a new company, shares Jennifer Roberts, AVP of talent and organizational development, AT&T. This glass elevator takes you not just up and down but sideways and, in any direction, people looking for growth and new career possibilities are moving to other disciplines or organizations.
Roberts shares that she has seen many of their employees switch careers every 3 to 4 years to gain new experience, without having to leave the company. In fact, she says that at AT&T, they saw 12,800 lateral moves in 2024. She and other leaders expect to see more job-function crossover in the years to come.
So, should you get on the glass elevator or not? Are you better off making a horizontal move or taking that set of stairs towards your next promotion? Heres three things to consider before you decide to get on this elevator:
Will this help with your job security?Layoffs are continuing only a few months into 2025. A number of companies either cut jobs already this year or have more layoffs planned. And for many organizations, a potential recession plus the inflation rate will force leaders to make tough calls when it comes to their workforce this year. They wont just be eliminating roles that are no longer needed, but may also need to let go of individuals in order to survive as a company.
If you are concerned about stability in your current role and notice that your projects are no longer a priority for the company, its time to get your resumé ready. And consider both internal and external opportunities. This might be a moment to look at a horizontal move: to go and take an assignment in a part of the organization thats growing, and where they need more talent to scale their efforts. You can look at internal openings, and you can also make connections and meet leaders overseeing new initiatives where they may need your skillset. Or they like your background and experiences and are willing to invest in upskilling you. A horizontal move in this case can help you with job security and also help you gain new experience and continue to grow in your career.
Will you have training and support to take on this assignment?Before stepping on the glass elevator and accepting a horizontal move, be sure to ask if you will have the support to be successful in this role. Here are questions to consider before taking on this move:
How long will this assignment be for?Gain an understanding of how long you are expected to be in this role. Things may change in the organization, and knowing how long leadership expects you to be in this role can help you mentally prepare for this commitment.
Will my prior role be backfilled?Ensure your manager and leadership is aligned to your moving to this new assignment. Dont put yourself in a position where you are required to do your old job and your new job for an extended period of time. You and the team wont be set up for success.
What does success in the role look like?Review the job description with your future manager. Also ask what success looks like for them. What will they have hoped you would have accomplished a year from now? Are there KPIs/goals/metrics they can share? Will you have access to training and on-boarding? Are there mentors you will be paired with who can help you learn how this team works and how to get your job done?
Reflecting on these questions and getting some of the answers will help you determine if this is the right next move for you.
Whats next after this ride on the glass elevator?
One of the best pieces of career advice my father ever gave me was this: Every assignment is a stepping stone to what you are meant to do next. And sometimes, I was so busy getting that next assignment, that next promotion, that next big initiative, I didnt stop to think about what happens after it ends. I never asked myself or others what I should plan to do next; I wish I had been more proactive, instead of reactive, in my career.
If you are going to get on the glass elevator, and take a horizontal job, make sure to ask the question: What comes after this? Its important to discuss this with your network at work before committing to this new assignment. Talk to your current manager, former managers, the person who may be your future manager on this assignment, and trusted colleagues and mentors at work. Get their advice and perspective, particularly if they have taken on a horizontal assignment in their career.
Once you finish this assignment, what would you do next? Would you go back to your former division, or take on another assignment on this team? What does the path to promotion look like after taking on an assignment like this? How does this make you more or less marketable internally as a candidate for roles?
The glass elevator may or not not be the right next career move for you. And in this current market, its important to explore all options, particularly if you want to stay and try to grow in your current company. So whether you take the stairs or get on the glass elevator, make sure you ask the right questions so you can make the best decisions, both in the short term and long term, for your career.
