California is considering a one-time tax on billionaires to counteract federal budget cuts affecting healthcare funding. This proposal has sparked debate, with some business leaders opposing it due to concerns about its impact on California's economy. The tax would need voter approval, and Senator Bernie Sanders is supporting the campaign to gather enough signatures for it to be on the ballot.
Key Facts
California may introduce a 5% tax on individuals with over $1 billion in assets.
The tax aims to recover funds lost due to the One Big Beautiful Bill Act (OBBBA) by President Trump, requiring more eligibility checks for Medicaid.
Senator Bernie Sanders is campaigning for the tax to be included in the November ballot.
Business leaders worry the tax will harm California's economy and encourage billionaires to leave the state.
Google cofounders Larry Page and Sergey Brin have reportedly moved to Florida, possibly to avoid the tax.
Governor Gavin Newsom, despite a budget deficit, is not supporting the tax measure.
California's economy heavily relies on its tech industry, and losing tech billionaires might destabilize it.
President Trump's adviser, Kevin Hassett, criticized a Federal Reserve study that claimed U.S. businesses and consumers are bearing the majority of costs from tariffs. Hassett called for disciplinary action against the economists involved, arguing that the study presented a partisan viewpoint. The study aligns with other reports indicating high tariff costs are passed on to U.S. buyers.
Key Facts
Kevin Hassett is the director of the National Economic Council and an adviser to President Trump.
Hassett criticized a Federal Reserve study that said U.S. firms and consumers bear 90% of tariff costs.
The study was conducted by the New York Federal Reserve and is consistent with findings from other research groups.
Hassett described the study as an embarrassment and suggested economists involved should be disciplined.
President Trump's administration has been critical of the Federal Reserve, focusing mainly on interest rate issues.
The Supreme Court is reviewing a legal challenge related to President Trump's global tariffs.
Inflation in the U.S. recently decreased, according to the Department of Labor.
Hassett claims tariffs have benefited consumers by increasing real wages.
Go Raw LLC is recalling a specific batch of their Quest brand Cat Food Chicken Recipe Freeze Dried Nuggets because it may have low levels of thiamine (vitamin B1). The recall affects products sold in 10 states, and there has been one reported illness in a cat that has now recovered.
Key Facts
Go Raw LLC is recalling one lot of Quest Cat Food due to low thiamine levels.
Thiamine deficiency in cats can cause digestive and nervous system problems.
The affected product comes in 10-ounce bags with lot code C25288.
The product was sold in stores in Illinois, Texas, California, Michigan, Rhode Island, Pennsylvania, Oregon, Washington, Utah, and Colorado.
Customers can return the recalled cat food for a full refund.
The company received a report of illness, but the affected cat has recovered.
Pet owners noticing symptoms in their cats are advised to contact a veterinarian.
For questions, customers can contact Go Raw LLC by phone or email.
The Federal Reserve officials are divided on interest rate decisions, according to the minutes from their January meeting. Some members suggest raising rates if inflation remains high, while others support keeping rates steady or making further cuts. Economic signs show job growth and stable inflation, but concerns about tariffs and future inflation persist.
Key Facts
Federal Reserve officials are split on what to do about interest rates.
Some want to raise rates if inflation stays high, while others prefer keeping rates steady or cutting them further.
The labor market seems to be stabilizing, but not everyone agrees on the strength of job recovery.
Businesses are dealing with tariff-related costs, which may affect inflation.
AI-related technology gains may help reduce inflation pressure.
Recent data shows an increase of 130,000 jobs and a slight drop in the Consumer Price Index.
President Trump plans to nominate Kevin Warsh as the new Fed chair, with Jerome Powell's term ending in May.
More Americans cannot pay their car loans, with the rate higher than during the 2008 financial crisis. The serious delinquency rate on subprime auto loans has hit 6.9 percent. Total auto debt now stands at $1.67 trillion.
Key Facts
The 60-day delinquency rate on subprime auto loans is now 6.9 percent, surpassing the 2008 peak of 5 percent.
Auto debt in the U.S. has increased by $312 billion over the past five years, reaching a total of $1.67 trillion.
Subprime financing, which is riskier, accounts for about 14 percent of all auto loans, totaling $234 billion.
Higher vehicle prices and interest rates are significant factors in the inability to pay auto loans.
Car prices climbed during the pandemic due to supply chain issues, leading to high levels of debt.
Experts say that defaults on auto loans are a warning sign for the broader economy and could hint at future economic trouble.
Rising defaults could mean fewer people are able to get to work, impacting local economies.
Berkshire Hathaway, led by CEO Warren Buffett, invested $350 million in The New York Times six years after selling its newspapers. The company also increased its shares in Chevron and reduced its holdings in Bank of America and Apple. These changes in investments came during Buffett's last quarter as CEO before Greg Abel took over.
Key Facts
Warren Buffett's company, Berkshire Hathaway, invested $350 million in The New York Times.
The investment comes six years after Buffett sold all of Berkshire's newspapers.
Buffett previously predicted a decline for newspapers but believed national brands like The New York Times could succeed.
Berkshire Hathaway also increased its investment in Chevron to over 130 million shares.
The company sold off roughly 50 million Bank of America shares but still holds about 81 million shares in the bank.
Berkshire reduced its Apple holdings by approximately 10 million shares but retains nearly 228 million shares.
These investment changes were part of Warren Buffett's last quarter as CEO before Greg Abel succeeded him in January.
Senator Bernie Sanders and Governor Gavin Newsom disagree over a plan to introduce a new tax on billionaires in California. Sanders supports the tax, while Newsom opposes it, citing concerns about its impact on the state's economy.
Key Facts
The proposed tax targets billionaires in California.
Senator Bernie Sanders supports the tax plan.
Sanders will campaign in Los Angeles to gain support for the proposal.
Tech industry leaders in Silicon Valley oppose the tax, threatening to leave the state.
Governor Gavin Newsom is against the tax, fearing it could harm the state's finances.
Sanders is a well-known democratic socialist and has criticized wealth inequality for years.
Newsom believes the tax could make California less competitive compared to other states.
BAE Systems, a large defense company, reported record sales in 2025, but workers at some of its UK sites are on strike over pay issues. The company made a profit of £2.6 billion, but union members are demanding larger pay increases, saying the company should share more of its profits with employees. BAE says its current offer is fair and aims to resolve the strike with minimal disruption.
Key Facts
BAE Systems reported a record profit of £2.6 billion for 2025.
Sales at BAE increased by 10% to a record £30.7 billion.
Workers at BAE sites in Warton and Samlesbury are on strike over pay.
The union, Unite, wants a 5.2% pay increase for workers.
BAE offered its employees a 3.7% pay raise for 2026.
Unite represents 5,000 workers, and over 1,200 are on strike.
The company expects its profits to grow by about 10% in 2026.
BAE claims its current pay offer is among the best in the market.
The Trump family company has applied for trademark rights to use President Donald Trump's name on airports and related items. This move relates to discussions about naming Palm Beach airport after him and ensuring his name is not misused.
Key Facts
The Trump Organization applied for trademarks on airports using President Trump's name.
The trademarks include items like buses, umbrellas, travel bags, and flight suits found at airports.
The company does not plan to charge fees for using the name at the proposed Florida airport.
The trademark applications were influenced by a Florida bill proposing to rename Palm Beach airport after Trump.
There is also a discussion involving a tunnel between New York and New Jersey and Dulles International Airport potentially bearing Trump's name.
The Trump Organization claims the applications aim to protect the Trump name from unauthorized use.
Stephen Colbert is in a public disagreement with CBS over what content he can share on his late-night show. He claimed CBS stopped him from airing an interview with a political candidate, James Talarico, which CBS denied.
Key Facts
Stephen Colbert hosts "The Late Show" on CBS.
Colbert claimed CBS stopped him from airing an interview with James Talarico, a political candidate.
CBS denied that their lawyers told Colbert he couldn't show the interview.
Colbert responded to CBS's denial by discarding their statement playfully during a show.
The issue touches on a topic known as 'equal time,' which refers to providing equal airtime to political candidates.
IKEA is planning to open new stores in several U.S. cities by 2026, including locations in Chicago, Tulsa, Fort Collins, and Los Angeles. This move is a response to increasing store closures in the retail sector and comes despite economic challenges such as inflation. The company aims to continue expanding in the U.S. market with a focus on smaller store formats and increased accessibility.
Key Facts
IKEA will open new stores in Chicago, Tulsa, Fort Collins, and Los Angeles in 2026.
These openings are part of a total of ten new store locations planned for that year.
Los Angeles will get its first city-center IKEA store in Culver City.
Tulsa will see its first IKEA store, marking the company's entry into Oklahoma.
Other planned locations include Gurnee Mills in the Chicago area.
Previously announced locations are Houston–Webster; Chantilly/Dulles; Rockwall; Phoenix; University Park in Dallas; and Huntsville, Alabama.
IKEA opened 14 new retail locations in fiscal year 2025.
IKEA reported $5.3 billion in total sales last year, with $1.9 billion from online sales.
A label inside a bag from the American manufacturer Tom Bihn, made in 2004, refers to a "president" as an "idiot." This label recently gained attention on social media. The company founder, Tom Bihn, said the message might have been intended as a personal joke and not aimed at a political figure.
Key Facts
A label inside a bag by Tom Bihn calls a "president" an "idiot," and this message resurfaced online.
The label was made in 2004 and includes French text.
Tom Bihn's founder stated it may have been a joke about himself and not aimed at a specific leader.
The label was initially unnoticed by Bihn due to his limited French language skills.
Tom Bihn, founded in 1972 and based in Seattle, ships bags internationally.
The Pew Research Center reported declining positive views of the U.S. in many countries by 2025.
Some believe the label may have referred to then-French President Jacques Chirac, though Bihn disagreed.
The resurgence of the label coincides with varied international perceptions of the U.S.
Les Wexner, a billionaire and founder of L Brands, is set to testify about his past ties with Jeffrey Epstein. Wexner claims to have ended his connection with Epstein in 2007 and denies any knowledge of Epstein's crimes. Despite recent scrutiny, local institutions benefitting from Wexner's donations have not cut ties with him.
Key Facts
Les Wexner is an influential businessman from Ohio, known for founding L Brands.
Wexner is scheduled to testify about his relationship with Jeffrey Epstein to a U.S. House Committee.
Wexner reportedly ended his relationship with Epstein in 2007 and accused him of taking $46 million.
New documents from the U.S. Department of Justice mention Wexner as a "co-conspirator," though he hasn't been charged.
Wexner has been described as a former close friend of Epstein by Ghislaine Maxwell.
Local institutions, including Ohio State University, are not currently cutting ties with Wexner despite negative attention.
Wexner's wealth has supported various philanthropic efforts in Ohio, such as funding education and the arts.
He is also expected to testify in a lawsuit related to sexual abuse at Ohio State University during his time on the board.
Japan has committed nearly $36 billion to three energy and materials projects in Texas, Ohio, and Georgia as part of a U.S.-Japan trade agreement. These projects include a crude export terminal, a natural gas facility, and a synthetic industrial diamond plant. This investment marks the first part of Japan's $550 billion pledge under the trade deal.
Key Facts
Japan is investing nearly $36 billion in U.S.-based projects in Texas, Ohio, and Georgia.
The Ohio project is a $33 billion natural gas facility with a 9.2-gigawatt capacity.
The Texas project involves a $2.1 billion offshore crude oil export terminal.
The Georgia facility is a $600 million synthetic industrial diamond plant.
Japan's investments are part of a $550 billion commitment tied to reducing U.S. tariffs on Japanese imports.
The trade deal aims to boost U.S. energy capacity and reduce dependence on foreign supplies.
President Trump and Prime Minister Takaichi announced the projects as part of a strategic investment initiative.
The projects aim to strengthen U.S. energy infrastructure and critical material supply chains.
Pepsi has launched a new prebiotic soda called Pepsi Prebiotic Cola, which is now available in the US. This drink includes prebiotic fiber, aimed at improving gut health, and comes in two flavors: original cola and cherry vanilla. The introduction follows a trend of healthier beverage options among consumers.
Key Facts
Pepsi introduced the Pepsi Prebiotic Cola after its initial success during Black Friday last year.
The drink contains 3 grams of prebiotic fiber, a natural ingredient that helps support gut health.
It is available in original cola and cherry vanilla flavors, with no artificial sweeteners, 30 calories, and 5 grams of sugar.
Coca-Cola had previously launched its own prebiotic soda with more fiber content.
The drink is sold in 12 oz. single cans and 8-packs.
Prebiotics are known to support digestion and the immune system by nourishing good bacteria in the gut.
A healthy intake of prebiotics has been linked to several health benefits, including better blood sugar control and reduced cancer risk.
Some individuals with digestive conditions may react negatively to high prebiotic intake.
An elderly farmer in Pennsylvania, Mervin Raudabaugh, refused a $15 million offer from developers aiming to convert his farm into data centers. He chose to sell the land to a conservation group for less money, ensuring it remains farmland. This decision highlights concerns about the challenges American farmers face with land preservation against rising development pressures.
Key Facts
Mervin Raudabaugh, an 86-year-old farmer, turned down over $15 million from developers who wanted to build data centers on his land.
The developers offered $60,000 per acre for the 261 acres located in Silver Spring Township, Pennsylvania.
Raudabaugh sold the land to the Lancaster Farmland Trust for under $2 million to ensure it stays farmland.
Rising costs of equipment and development pressure are making it harder for family farms to survive.
U.S. farmers face challenges from extreme weather and volatility in global trade.
A U.S. government report warned that data center electricity use might triple by 2028, potentially increasing pressure on land use.
Data centers used about 4.4% of U.S. electricity in 2023 and might consume up to 12% by 2028.
The U.S. Food and Drug Administration (FDA) issued a Class II risk warning for Woodland Foods LLC's recall of Arrowroot Flour. The recall was due to the potential presence of foreign material that could cause temporary health issues if consumed.
Key Facts
Woodland Foods LLC recalled Woodland Gourmet Arrowroot Flour on January 16 due to possible contamination.
The FDA classified the recall as Class II, meaning there is a low chance of serious health consequences.
Possible foreign materials could include metal or plastic fragments.
These materials can cause choking, dental damage, or digestive injuries.
The affected flour lot IDs are provided, and the product was distributed to Kentucky.
No illnesses have been reported in connection with this recall as of February 17.
The FDA advises against consuming the affected product.
Foreign material contamination is a common issue in food processing and can arise from raw materials.
Plans to raise the minimum wage for young workers in the UK could face delays. The government had promised to pay young people aged 18 to 20 the same wage as those over 21. However, there are discussions about postponing these changes.
Key Facts
The UK government promised to equalize the minimum wage for all adults, removing age differences.
There is a proposal to raise wages for 18 to 20-year-olds to match those of people over 21.
Government officials are considering delaying this wage increase but not abandoning it.
Youth unemployment in the UK is currently high, with 16.1% of people aged 16 to 24 jobless.
The overall unemployment rate in the UK rose to 5.2% recently.
Currently, people over 21 in the UK must be paid £12.21 an hour, while those aged 18 to 20 are paid £10.
Some business leaders argue that raising the minimum wage increases hiring costs.
The discussion to delay the wage increase was first reported by The Times newspaper.
UK inflation fell to 3% in January, down from 3.4% in December. The drop was due in part to lower fuel prices, airfares, and certain food items. This decrease makes it more likely that the Bank of England will reduce interest rates soon.
Key Facts
UK inflation rate decreased to 3% in January from 3.4% in December.
Lower fuel prices, airfares, and food prices (such as bread and meat) contributed to the decrease.
Prices are still rising, but at a slower pace than before.
Chancellor Rachel Reeves stated that reducing the cost of living is a top priority.
This is the lowest inflation rate since March of the previous year.
Some prices like hotel stays and takeaways increased, partly offsetting the decline.
The Bank of England might lower interest rates, making borrowing cheaper.
December's inflation increase was affected by temporary events like Christmas flight costs.
The budget introduced a rise in the tax-free personal allowance by £2,250, making it £17,000. This change is intended to give workers more take-home pay and counteract a lower than planned increase in the minimum wage. Some support the change for providing financial relief, while others are concerned about its impact on government finances.
Key Facts
The tax-free personal allowance has increased by £2,250 to £17,000.
This change allows individuals to keep more of their earnings before paying taxes.
The rise aims to offset a smaller increase in the minimum wage, which was reduced from 9.9% to 5%.
The new allowance for couples is now doubled to £34,000.
The adjustment could help workers' pay equate to a planned 9.9% minimum wage rise.
Critics are worried about the cost of this tax change to the island's financial reserves.
The budget also included inflation-linked increases in various benefits, including carer’s allowance.
Some believe higher take-home pay will boost the economy by enabling more consumer spending.
