Elon Musk's Pay Package Ratified by Tesla (NYSE:TSLA) Shareholders

 Elon musk was awarded a nearly $1,000,000,000,000 payment package by the shareholders of Tesla, which would be given out within the next decade. This would make Elon Musk's payment compensation the largest amount ever recorded.

However, this compensation does have conditions placed on it. The value of the company needs to be risen from $1.1T (Where it is at right now) to $8.5T. There also needs to be over 1 million Robotaxis and 1 million humanoid robots within commercial operations over the next 10 years. Once these goals are met, Musk's ownership stake within Tesla would raise to 29% of the company from about 15%.

The shareholders have ratified this by a more than 75% vote in favor during the shareholder's meeting on the 6th. Not all shareholders are in agreement, such as Norway's $2T sovereign wealth fund, which had voted no to the proposal as the company would be in a much more risky position. 

Former FTC Chair Lina Khan named as Co-Chair of Mamdani Transition Team

     

Former FTC Chair Lina Khan named as Co-Chair of Mamdani Transition Team

Former FTC Chair Lina Khan was named as Co-Chair of Zohran Mamdani's transition team after Mamdani won the New York City mayoral election on Tuesday. Lina Khan, who was appointed as Chair of the Federal Trade Commission under the Biden Administration, was seen as one of the most aggressive Chairs in terms of enforcing Antitrust laws. It's unclear how her previous role as Chair of the Federal Trade Commission will play a part in the transition team. However, historically, members of the transition team have been appointed to City offices. 

Business Insider: https://www.businessinsider.com/lina-khan-joins-zohran-mamdanis-transition-team-2025-11

Russia Calls to China

After Trump met with Xi Jinping, Russia wasted no time trying to show they were still close with China. Moscow doesn’t want to be left out as global power lines shift, and keeping Beijing as a dependable partner was at the top of their priority list. The three main concerns they had focused on were energy, trade, and security. 

China responded with courtesy, but they kept their distance, valuing stability and economic relations with the West. As of now, it seems as if this was more of an act of showmanship, but you never know. If it becomes more than a cry for reassurance, major new deals could shift things around. 

CNBC. (2025, November 3). Russia tries to re‑stake claim to China after Trump’s meeting with Xi Jinping.https://www.cnbc.com/2025/11/03/russia-tries-to-re-stake-claim-to-china-after-trumps-meeting-with-xi.html

Tech Layoffs Are Up But So Is AI Spending

Lately it feels like every week there’s news about another company cutting jobs, even as those same companies keep investing heavily in AI. In October, U.S. firms announced over 25,000 layoffs, and European companies cut more than 20,000 positions. At the same time, a recent survey found that 78% of U.S. executives say they’re under pressure to prove that AI projects are saving money and boosting profits.

The IMF says AI investment is one reason the U.S. economy hasn’t slowed down as much as expected, with growth projected around 2% for 2025. Still, it raises a big question, if automation keeps expanding while job cuts continue, will that help overall productivity or just widen the gap between tech industries and everyone else?

Source

https://www.reuters.com/business/world-at-work/global-firms-slash-jobs-amid-weak-sentiment-ai-push-2025-10-29/

Apple AirPods 3 Comes With Live Translation Feature

 Over the weekend Apple released their newest and most advanced Airpod Pro, the creatively named "Apple Airpod Pro 3". I am not normally inclined to write a new tech product review in an economics blog. However, this article, and the new technology in the Airpod is truly revolutionary and may be the first step towards never having to learn a foreign language ever again. Here is a blurb from Apple, 

"

With Live Translation,

powered by Apple Intelligence, you can listen to people speaking in different languages and hear translations through your AirPods Pro 3. To respond, just speak naturally, and your words will appear in the other person’s language on your iPhone screen. To make the experience even more magical, if you both have AirPods Pro 3, you can each speak in your own language and hear translations through your AirPods." 

This is revolutionary for many of us American, and British folk who tend to be incapable of learning foreign languages and rely solely upon others having a working knowledge of English when traveling internationally. 

Madison Darbyshire, an editor at Bloomberg.com writes about how the future of being able to translate perfectly, and to not have to "Try" will be of no benefit to humanity. Madison iscusses the joy and learning moments that come from mispronouncing your butchered French to a Maitre'd while trying to ask for a table for two. Or the intellectual stimulation that comes from trying to learn and understand a foreign language. Madison writes, 

"Technology has already all but eliminated the chance of getting lost on our way to dinner, limiting opportunities to stumble upon things we didn’t even know we were looking for. What happens when we stop misunderstanding, misreading and mistranslating? How much serendipity — and comedy — will simply cease?

Some of the best dishes I’ve ever eaten abroad showed up after I accidentally nodded yes when I meant no to a waiter listing specials faster than an auctioneer. It’s happened less and less since Google made it possible to translate a photo of a menu in real time, but my anecdotes have suffered. It would have made for a much better story if in Vietnam I’d actually ordered the goat testicles, thinking I was asking for chops."

I tend to agree with Madison, trying, and failing to learn Italian and French have led to some of the most fun, vulnerable, and cheerful memories I have. The future looks different, and while this technology will be useful, some of the charm of traveling, and trying and failing to immerse yourself in another's culture may be fading.

https://www.bloomberg.com/news/articles/2025-10-31/apple-airpods-new-translation-feature-has-a-major-downside?srnd=homepage-americas

AI Boom Lifts Stocks, But No Bubble Yet

 Goldman Sachs research argues that the global stock valuations in the tech sector especially have continued to rise, the current market still does not yet show the hallmarks of a true financial bubble. The gains are largely supported by the balance sheets of these tech leaders, strong corporates earnings, and disciplined capital spending. Although risks still remain like market concentration and possible over investment in AI, the financial conditions appear healthy and the rally is still grounded in the fundamentals. Goldman Sachs concludes that the valuations are stretched but not unsustainably inflated, with the biggest threat being disappointing earnings rather than widespread financial instability. 

https://www.goldmansachs.com/insights/articles/why-global-stocks-are-not-yet-in-a-bubble

China’s Rare Earth Restrictions Aim to Beat U.S. at Its Own Game

This New York Times article is about the ongoing tensions between the US and China. China has recently tightened their export controls on rare earth elements, which are critical materials used in electrical vehicles, wind turbines, and most importantly advanced electronics used for AI. These new restrictions could disrupt industries worldwide and heighten US China trade tensions. Analysts say that with its dominance over the production of these rare earth minerals and its control of other strategic industries, China may have an even greater ability than the US to weaponize supply chains. This shows how deeply global manufacturing depends on China’s rare earth processing capacity and has forced countries to seek alternative sources.

https://www.nytimes.com/2025/10/16/business/economy/china-rare-earths-supply-chain.html

Tariffs are expected to start showing up more in consumer prices as holiday shopping season starts

     Donald Trump's tariffs are expected to effect the 2025 holiday season. Consumer prices are expected to be raised while shoppers are looking for Christmas presents. Economists are not seeing a spike developing in common measures such as consumer price and the personal consumer indexes, they believe that tariffs will continue to keep those gauges elevated at a time when they should be moving lower. Tariff impacted have been disclosed so far as companies build up inventories ahead of the duties and absorbed impact through compressed profit margins. Bank of America is estimating tariffs are adding around 0.5% points to the core Personal Consumer Expenditures inflation rate which is around 2.9% rather than 2.4%. The Feds are taring 2% inflation, however tariffs are keeping prices higher than the goal. Consumers are currently paying higher prices on common goods like coffee, clothes, and furniture. Tariff costs of 50% to 70% are now being passed onto shoppers and business cover the rest. Imports from China, like fake Christmas trees will show how the tariffs will make seasonal goods more expensive. All costumers are expected to spend 40.6 billion dollars more than last holiday season as a whole and $132 dollars per shopper. This will result in consumers to use credit cards or take out loans for this up incoming holiday season.  

https://www.cnbc.com/2025/10/31/tariffs-are-expected-to-start-showing-up-more-in-consumer-prices-as-holiday-shopping-season-starts.html

Mortgage rates jump 20 basis points following Fed cut

 While the Federal Reserve cut its interest rate this week, mortgage rates moved higher, leaving many potential homebuyers surprised. According to the Mortgage News Daily, the average rate on a 30 year fixed mortgage increased 20 basis points after Jerome Powell's announcement and press conference. This is not the first time this happened however. Earlier in the week, the average rate dipped before spiking back up after comments made by the Fed. This was also seen the last time the Fed lowered rates in September, which caused a mortgage rate increase. 

   The recent dip in rates sparked an increase in refinancing activity, with applications up 111%. The jump in rates hasn't done much to entice new homebuyers, who still remain cautious amidst the high prices and limited inventory. While the Fed's actions are aimed at supporting the economy, for now buying homes just got more expensive for individuals. 

https://www.cnbc.com/2025/10/30/mortgage-rates-fed-cut.html

Development Finance Must Shift Away from Aid

This article focuses on how reducing humanitarian aid to developing nations is a better approach for decreasing their dependence on foreign aid and boosting their private investments. The United Nations (UN) set a target for developed nations to contribute 0.7% of their gross national income (GNI) as foreign aid. However, among the 33 members of the Organisation for Economic Co-operation and Development (OECD), only 4 nations met the UN's target, while 22 nations cut their aid budgets dramatically. These actions have created a ripple effect around the world as aid commitments are seeing a more effective strategy; this is the first annual drop in aid in 6 years. For instance, US President Donald Trump pulled apart the US Agency for International Development (USAID) and cut almost all foreign aid. While other countries are set to slowly reduce aid, the UK has a goal set by 2027 that aid should be cut by 0.2%.

Although these cuts are dramatic, there are investments elsewhere that are leading developing countries on a path of reduced dependence. The combination of trade, investment, infrastructure, green technology, and digital connectivity is strengthening these nations to reduce energy poverty and increase public services. A prime example of China's infrastructure investment in Sub-Saharan Africa has increased nighttime luminosity and boosted economic activity. With benefits that are only rising, this shows the immediate investment site has impacted a large area and will continue over time. 

https://www.project-syndicate.org/commentary/developing-countries-must-reduce-foreign-aid-dependence-by-justin-yifu-lin-and-yan-wang-2025-10

 

 

What’s happening this week in economics? Deloitte’s team of economists examines news and trends from around the world.

 In the United States, inflation picked up modestly in September, with the Consumer Price Index (CPI) rising about 3% year over year and 0.3% month‑to‑month. The increase was driven mainly by food and utility prices — for instance, food‑at‑home costs rose significantly, and electricity and natural gas costs jumped. At the same time, core inflation (which excludes volatile food and energy prices) rose 3% annually, while services inflation was relatively restrained — suggesting that underlying wage and labor‑market pressures may be easing. 

In China, growth is decelerating: real GDP grew 4.8% year‑over‑year in the third quarter, the slowest pace in a year, with investment in property down nearly 14% and retail sales growing just 3%.  The weakness in property and consumer demand is acting as a drag on the economy, even though manufacturing output was still reasonably strong. In the United Kingdom, inflation is starting to ease: the annual rise in consumer prices stabilized around 3.8%, and core inflation (excluding food and energy) fell to its lowest level since early 2024. 

Source : https://www.deloitte.com/us/en/insights/topics/economy/global-economic-outlook/weekly-update.html?utm 

Economy Trump cuts fentanyl tariffs on China to 10% as Beijing delays latest rare earths curbs by a year

 President Donald Trump and Chinese President XI Jinping met in Busan, South Korea, marking their first face-to-face meeting in six years. This meeting resulted in a partial easing of trade tensions. The U.S. agreed to lower overall trade tariffs on Chinese goods from 57% to 47% and fentanyl tariffs were cut in half.  China pledged to work harder to curb fentanyl exports, and Beijing also agreed to suspend its new export controls on rare earth minerals for a year. China plans to resume buying U.S. soybeans and other agricultural products, giving a boost to American farmers.

Despite progress, major issues remain unresolved. The meeting did not address key disputes such as the sale of Nvidia chips, Chinese oil purchases from Russia, or TikTok's future in the U.S. It is being said that this agreement is seen as a temporary truce rather than a trade deal. This indicates that underlying economic tensions, including China's industrial polices and market practices, persist. However, both leaders emphasized friendship and cooperation, signaling a short-term desire to stabilize relations between the two nations. 

https://www.cnbc.com/2025/10/30/trump-cuts-fentanyl-tariffs-on-china-to-10percent-says-us-reached-rare-earths-deal-.html

Tariffs are expected to start showing up more in consumer prices as holiday shopping season starts

        As holiday shopping season approaches, Americans could start to feel the delayed sting from tariffs introduced by President Trump earlier this year. While the early impact was softened by by companies build up inventories and them just eating up the costs, economists believe that prices will begin to feel pressure on everyday goods such as coffee, furniture and clothing prices. Bank of America predicts that tariffs will be adding about a half percentage point to the core PCE measure the federal Reserve uses. With tariffs BofA estimates that inflation would rise to 2.9% in September. 

        For consumers, shoppers are bearing about 50%-&0% of total tariff costs, while businesses bear the rest. These visible price increases, can shape how consumers feel about inflation, even influence people's spending behaviors. Economists warn that with holiday season approaching we could see further strain on imported goods like artificial Christmas trees. Had these inflation issues been in place during 2024 holiday season, shoppers would have spend an additional $40.6 billion. While some of these numbers might not dominate inflation statistics, one thing is clear that tariffs will make holiday spending a litte more expensive this year. 

https://www.cnbc.com/2025/10/31/tariffs-are-expected-to-start-showing-up-more-in-consumer-prices-as-holiday-shopping-season-starts.html