April 22 2025

Stocks Tumble, Gold Soars to Record $3,500 as Trump Attacks Fed

Harvard Sues Trump Administration

Justice Department Pushes Google Breakup to Curb Search Monopoly

FTC Sues Uber Over Deceptive Subscription Claims

Mr. Vance Goes to India: US Tries to Create Anti-China Ally, Gain Market Access

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1. Stocks Tumble, Gold Soars to Record $3,500 as Trump Attacks Fed

Gold hit a record $3,500 a troy ounce for the first time on Tuesday, as Donald Trump’s sustained attack on US Federal Reserve chair Jay Powell added to fears over the central bank’s independence and the prospects for the world’s largest economy. In a rush to haven assets, gold climbed as much as 2 per cent to $3,500.10, cementing its position as one of the biggest winners from Trump’s return to the White House. In a post on his Truth Social platform on Monday, Trump branded Powell “Mr Too Late” and urged the central bank to lower borrowing costs “NOW”. The wave of criticism comes after Powell warned last week that the administration’s sweeping tariffs would lead to slower growth and higher inflation. Trump “ratcheting up pressure on Powell to ease monetary policy is raising concerns about Fed independence, which has triggered a flight to haven assets,” said Ewa Manthey, a commodities strategist at ING. Trump’s broadside on Monday sent the S&P 500 down 2.4 per cent and the tech-heavy Nasdaq closed 2.6 per cent lower. The Stoxx Europe 600 fell 0.6 per cent in early trading on Tuesday — but futures contracts implied Wall Street would rebound at the open. The criticism of Powell, whose term ends in May 2026, comes after simultaneous falls in US stocks, bonds and the dollar in recent weeks have led to worries that the volatility unleashed by Trump’s trade war could become a broader rejection of dollar assets.

Editors note: I’m skeptical that Trump criticizing Powell is the main reason stocks fell. Stocks were overvalued and looking for an excuse to fall. Still, the US President attacking the institution of the Fed (take the personalities out of it), is important news.
Source: FT

2. Harvard Sues Trump Administration

Harvard, the world’s wealthiest university, sued the Trump administration on Monday, fighting back against its threats to slash billions of dollars from the school’s research funding as part of a crusade against the nation’s top colleges. The lawsuit signaled a major escalation of the ongoing fight between higher education and President Trump, who has vowed to “reclaim” elite universities. The administration has cast its campaign as a fight against antisemitism, but has also targeted programs and teaching related to racial diversity and gender issues. Earlier this month, it sent Harvard a list of demands that included auditing professors for plagiarism, reporting to the federal government any international students accused of misconduct, and appointing an outside overseer to make sure that academic departments were “viewpoint diverse.” Alan M. Garber, Harvard’s president, accused the government in a statement on Monday of trying to wield “unprecedented and improper control.” Dr. Garber said the consequences of the government’s actions would be “severe and long lasting.”

Editors note: the Trump Admin loves this anti-elite fight.
Source: NYT

3. Justice Department Pushes Google Breakup to Curb Search Monopoly

The Justice Department said on Monday that the best way to address Google’s monopoly in internet search was to break up the $1.81 trillion company, kicking off a three-week hearing that could reshape the technology giant and alter the power players in Silicon Valley. Judge Amit P. Mehta of the U.S. District Court for the District of Columbia ruled in August that Google had broken antitrust laws to maintain its dominance in online search. He is now hearing arguments from the government and the company over how to best fix Google’s monopoly and is expected to order those measures, referred to as “remedies,” by the end of the summer. In an opening statement in the hearing on Monday, the government said Judge Mehta should force Google to sell its popular Chrome web browser, which drives users to its search engine.

Editors note: forcing Google to sell Chrome wouldn’t be that big of deal and wouldn’t address real issues in its ad business.
Source: NYT

4. FTC Sues Uber Over Deceptive Subscription Claims

The US Federal Trade Commission has sued ride-hailing app Uber, saying it made “false or misleading” claims about its subscription service, in the latest sign that Donald Trump’s administration is embracing an aggressive stance against Big Tech groups. The regulator alleged the company’s Uber One service failed to deliver promised savings and proved difficult to “cancel anytime” as promised, according to a complaint filed in a California court on Monday. “Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” said FTC chair Andrew Ferguson. “Uber not only deceived consumers about their subscriptions, but also made it unreasonably difficult for customers to cancel.” The FTC’s action adds to a series of lawsuits brought by successive US administrations against large technology companies. The case signals that the Trump administration will continue to clamp down on these groups despite recent overtures made by tech executives. Uber denied the FTC’s claims and said its sign-up and cancellation processes were “clear, simple, and follow the letter and spirit of the law”. Uber and its chief executive Dara Khosrowshahi each donated $1mn to Trump’s inauguration earlier this year.
Source: FT

5. Mr. Vance Goes to India: US Tries to Create Anti-China Ally, Gain Market Access

A. India is searching for any sign that it will be able to dodge the steep tariffs threatened by the Trump administration as it rushes to reorder global trade. So on Monday, as Vice President JD Vance began a four-day visit, Indians closely examined the images that emerged for any clues — and many liked what they saw. First there were Mr. Vance’s three young children, dressed in Indian attire as they stepped one by one from the airplane. Then there was the family photo outside a marble-and-sandstone temple, with Mr. Vance, his Indian American wife, Usha Vance, and their children draped in garlands. Capping it all was Mr. Vance’s warm embrace of Prime Minister Narendra Modi, who presented the Vance children with peacock feathers. senior Indian officials and some analysts took Mr. Vance’s presence in India as a sign that the United States intended to continue working toward the bilateral trade agreement outlined by Mr. Trump and Mr. Modi when the Indian leader visited Washington in February. In recent years, India has sought to make its ties with the United States a pillar of its foreign policy strategy, as the American government looked to India to help counter a rising China. But India has found itself on uncertain ground with Mr. Trump back in office. The president has both praised Mr. Modi’s leadership and harangued the Indian government for high tariffs that make it tough for U.S. companies to enter the market.

B. The Trump administration intends to press India to give online retailers such as Amazon and Walmart full access to its $125bn ecommerce market, as part of a trade deal being negotiated under the threat of increased tariffs. According to industry executives, lobbyists and US government officials, the US plans to push Prime Minister Narendra Modi’s government for a level playing field on ecommerce in wide-ranging talks on a US-India trade agreement set to also cover sectors from food to cars.
Source: NYT, FT

April 22, 1970: The First Earth Day

The 1962 publication of Rachel Carson's book _Silent Spring—_about the effects of pesticides—is often cited as the beginning of the modern environmental movement in the U.S. Sustainability, organic eating and the “back-to-the-land” movement continued to gain steam throughout the 1960s. The first Earth Day indeed increased environmental awareness in America, and in July of 1970, the Environmental Protection Agency was established by special executive order to regulate and enforce national pollution legislation. Earth Day also led to the passage of the Clean Water and Endangered Species Acts.

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Sources

1. https://www.ft.com/content/2ebab5f0-8d8a-4f3a-b7be-f489abca3dde
2. https://www.nytimes.com/2025/04/21/us/harvard-lawsuit-trump-administration.html
3. https://www.nytimes.com/2025/04/21/technology/google-search-remedies-hearing.html?campaign_id=7&emc=edit_mbae_20250421&instance_id=153021&nl=morning-briefing:-asia-pacific-edition®i_id=279126082&segment_id=196448&user_id=2c1c6898d4514014305be9647762af86
4. https://www.ft.com/content/85380603-f547-4732-91d4-df09e49f6085
5. https://www.nytimes.com/2025/04/21/world/asia/trump-tariffs-vance-modi-india.html?campaign_id=7&emc=edit_mbae_20250421&instance_id=153021&nl=morning-briefing:-asia-pacific-edition®i_id=279126082&segment_id=196448&user_id=2c1c6898d4514014305be9647762af86
6. https://www.ft.com/content/ac858997-8dc4-495f-ba9e-81b8f9758332