What we’re reading (5/30)
“Trump Says Steel, Aluminum Tariffs Will Double To 50%” (Wall Street Journal). “President Trump said he would double tariffs on imported steel, a move he said would bolster the domestic industry and protect U.S. jobs. Trump announced the higher duties at a rally near Pittsburgh promoting a $14 billion deal between Tokyo-based Nippon Steel and U.S. Steel, which the president said would ensure U.S. control over the storied steelmaker.”
“Why Is Medtronic Spinning Off Its Diabetes Business?” (Dealbreaker). “Medtronic’s decision to spin out its diabetes division into a separate entity marks a major shift — one that allows the medical device giant to shed a lower-margin, consumer-facing business, while also giving the diabetes business an opportunity to refine its focus in a competitive market. Last week, Medtronic announced the intent to separate its diabetes business into a new standalone company. The new company, which remains unnamed, is expected to launch within 18 months.”
“Ninety Years Ago” (Scott Sumner). “In late July 1933, President Roosevelt enacted one of the most destructive economic policies in all of American history. The President’s Re-employment Agreement mandated an immediate 20% rise in hourly nominal wages. The stock market crashed. This action aborted a promising economic recovery that had raised industrial production by 57% between March and July 1933. By May of 1935, industrial production was actually lower than on the day the wage policy was enacted. Almost exactly 90 years ago, on May 27, 1935, the Supreme Court saved FDR from his folly. The entire NIRA was ruled unconstitutional, including its wage-fixing provisions. Industrial production almost immediately began rising rapidly, and FDR won a historic landslide victory in the November 1936 election.”
“UnitedHealth’s Collapse Reveals The Flaw At The Heart Of Medicare Advantage” (CNBC). “The company faces three federal investigations, looking at allegations of civil and criminal fraud and antitrust violations. The Wall Street Journal reported in February, for instance, that the DOJ is investigating whether UnitedHealth made its clinician employees record questionable diagnoses that make Medicare Advantage patients appear sicker than they are. This practice, known as ‘upcoding,’ triggered extra federal payments. (UnitedHealth told the Journal it stands ‘by the integrity of our Medicare Advantage program.’)”
“Summer Rentals In The Hamptons Are Down 30%” (CNBC). “Summer rentals in the Hamptons are down 30% from the same period in previous years, according to Judi Desiderio of William Raveis Real Estate. Brokers who focus on ultra-high-end rentals are seeing an even bigger drop and say their rental business is down between 50% and 75%. Some renters may be holding out for better deals or waiting to book, but brokers privately say there are other factors at play.”
