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Kevin Hassett calls for NY Fed to punish economists over tariff research

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Kevin Hassett calls for NY Fed to punish economists over tariff research

White House economic advisor Kevin Hassett on Wednesday called for the New York Federal Reserve to punish economists who published a research paper that found that the bulk of the burden of the Trump administration’s tariffs are falling on U.S. businesses and consumers.

“The paper is an embarrassment. It’s, I think, the worst paper I’ve ever seen in the history of the Federal Reserve system,” Hassett said in an interview on CNBC’s “Squawk Box.”

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“The people associated with this paper should presumably be disciplined, because what they’ve done is they’ve put out a conclusion which has created a lot of news that’s highly partisan based on analysis that wouldn’t be accepted in a first-semester econ class,” Hassett continued.

The New York Fed’s research found that U.S. businesses and consumers bore 86% of the tariff burden, while foreign exports bore 14% of the burden as of November 2025. The researchers found that the share borne by U.S. businesses and consumers declined over the year from 94% in the January through August period, and 92% in September and October.

FED DISSENT GROWS AS SOME OFFICIALS WEIGH RETURN TO INTEREST RATE HIKES AMID STUBBORN INFLATION

Kevin Hassett, director of the National Economic Council, smiles outside of the White House.

Kevin Hassett, director of the National Economic Council, called for New York Fed researchers to face punishment over their research finding that the U.S. is bearing most of the cost of tariffs. (Aaron Schwartz/CNP/Bloomberg/Getty Images)

They also found that the average tariff rate jumped last year as the Trump administration raised the import levies, rising from 2.6% at the beginning of 2025 to 13% at the end of the year. The report found that the average tariff rate peaked at around 16% in April and May, following the president’s announcement of his “Liberation Day” tariffs.

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“Our results show that the bulk of the tariff incidence continues to fall on U.S. firms and consumers,” the New York Fed wrote, noting that its findings were consistent with a pair of recent studies on U.S. tariff pass-through showing American importers absorbing nearly all the cost.

TARIFFS MAY HAVE COST US ECONOMY THOUSANDS OF JOBS MONTHLY, FED ANALYSIS REVEALS

Donald Trump Liberation Day tariffs

President Donald Trump announced a dramatic hike in tariffs during his “Liberation Day” event in April 2025, though some of the tariffs were implemented at lower levels than those he revealed. (Chip Somodevilla/Getty Images)

Those findings are also similar to those contained in another analysis by the nonpartisan Congressional Budget Office (CBO), which noted in its recently released 10-year budget and economic outlook that foreign exporters are absorbing about 5% of the tariff costs with the remaining 95% falling on U.S. firms and consumers. 

The CBO found that U.S. businesses would pass on about 70% of their tariff costs to consumers, with the remaining 30% coming out of their profit margins. After accounting for domestic producers raising prices because of reduced foreign competition, the “net effect of tariffs is to raise U.S. consumer prices by the full portion of the cost of the tariffs borne domestically (95 percent),” the CBO found.

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CBO’s analysis also projected that the new tariffs imposed over the last year will have increased the personal consumption expenditures (PCE) index by about 0.8 percentage points on aggregate by the end of 2026. PCE inflation is the Fed’s preferred inflation gauge and was most recently at 2.8% in November, well above the Fed’s 2% target.

TRUMP CREDITS TARIFFS FOR HUNDREDS OF BILLIONS GAINED WITH ‘VIRTUALLY NO INFLATION,’ TOUTS SECURITY

Hassett went on to defend the Trump administration’s tariffs during the CNBC interview, saying that American consumers are better off for them, while saying the New York Fed’s analysis was an “embarrassment.”

“Prices have gone down. Inflation is down over time. Import prices dropped a lot in the first half of the year, that leveled off, and real wages were up $1,400 on average last year, which means that consumers were made better off by the tariffs,” Hassett said on CNBC. 

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“So consumers couldn’t have been made better off by the tariffs, if this New York Fed analysis was correct. It’s really just an embarrassment,” Hassett said.

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Snacks remain a problem for The Campbell’s Co.

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Snacks remain a problem for The Campbell’s Co.

Business unit recovery “taking longer than anticipated,” CEO says.

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Family offices look to Hong Kong

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Family offices look to Hong Kong

Hong Kong’s Victoria Harbour.

Yaorusheng | Moment | Getty Images

As the Iran war rocks Dubai’s safe-haven image, Hong Kong’s expanding tax incentives for family offices may attract wealthy individuals reconsidering their Middle East exposure, lawyers and consultants told Inside Wealth.

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“We’re seeing a lot more interest in Hong Kong. This interest, especially in the last two weeks, has shot through the roof,” said Gaven Cheong, partner and fund formation lawyer at Charles Russell Speechlys. 

Cheong, who is based in Hong Kong, said he has conversations on a near-daily basis with families who are considering setting up family offices in Hong Kong, including those who previously left the region.

In late February, the Hong Kong government proposed several new tax incentives for single-family offices, family-owned investment holding vehicles and investment funds. One of the most notable proposals would extend tax breaks on gold, cryptocurrencies, private credit and overseas real estate, among other assets. Hong Kong’s Financial Secretary, Paul Chan, said the legislation will be submitted by June.

In 2023, Hong Kong introduced tax concessions for family offices with the aim of luring wealthy investors back to the region after 2019 protests prompted a wealth exodus. An estimated 4,200 millionaires left Hong Kong that year alone, according to investment migration consultancy Henley & Partners. 

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Many mainland Chinese families chose to move their firms from Hong Kong to Singapore for its political neutrality, tax-friendly regime and independent courts, according to Singapore-based lawyer Edmund Leow. 

Between 2020 and 2024, Singapore’s family office population surged from 400 to more than 2,000, according to the Monetary Authority of Singapore.

“There was a mad rush to set up family offices in Singapore, and Hong Kong realized they needed to do something otherwise a lot of their families would shift,” said Leow, senior partner in Dentons Rodyk’s corporate practice group.

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Leow said many of Hong Kong’s tax concessions are modeled after those of Singapore. Some of Hong Kong’s newly proposed tax breaks, such as the exemption on gold, already exist in Singapore.

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Leow said he views the latest Hong Kong proposals as “incremental changes” that won’t drastically shift the value proposition for setting up a family office there versus Singapore. Some clients even have family offices in both jurisdictions, he said.

“It depends a lot on the person and what this person wants. If this person is politically aligned with China, then maybe they might choose Hong Kong for that reason, because Hong Kong is part of China. But on the other hand, if they’re looking for a politically neutral country, then they might go for Singapore,” Leow said. 

“If your business is in China, you need to have good relationships with the Chinese government. That would be a reason for choosing Hong Kong,” he added.

According to Deloitte research commissioned by the Hong Kong government, Hong Kong had nearly 3,400 single-family offices as of the end of 2025, an increase of 681 since the end of 2023.

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Cheong said he views the potential tax break on cryptocurrencies, however, as a meaningful differentiator between Singapore’s and Hong Kong’s tax systems. While the Hong Kong legislation has yet to be revealed in full, thus far the exemption is broader than that of Singapore, he said. 

Anthony Lau, Hong Kong leader of Deloitte Private, said the domicile is also advantageous to family offices who want to relocate quickly. 

Family offices do not need to apply for an exemption in order to qualify for tax breaks in Hong Kong, he said. 

In Singapore, it takes about three months to get approval for the exemption. Still, that’s an improvement: The process previously took about 12 months before the waiting time was cut by Singapore’s financial regulator last year.  

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Lau added Hong Kong’s tax system also does not require family offices to invest locally. In Singapore, family offices have to allocate either 10 million SGD (about $7.85 million) or 10% of their assets under management (whichever is lower) in designated local investments.

However, it’s too early to say whether families will personally relocate from Dubai to Hong Kong, he said. 

“If you want to diversify your risk and want more exposure in Asia, then obviously they want to move part of their investments outside a potential conflict zone,” he said. “But whether the family or family members would really move to Hong Kong, I think that’s a question mark.”

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RLX Technology earnings in focus as China regulatory storm looms

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RLX Technology earnings in focus as China regulatory storm looms

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Is There Any Chance for Jordan Spieth to Win the British Open 2026?

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Three-time major winner Jordan Spieth learned patience the hard way to snap a four-year win drought ahead of the 85th Masters

Jordan Spieth, the 2017 Open Champion at Royal Birkdale, enters the conversation for the 2026 British Open with legitimate chances despite long odds and a career marked by injury setbacks and inconsistent form. The 32-year-old Texan, a three-time major winner, has shown signs of resurgence in early 2026, raising questions about whether he can reclaim elite status on links turf where he once thrived.

Three-time major winner Jordan Spieth learned patience the hard way to snap a four-year win drought ahead of the 85th Masters
Three-time major winner Jordan Spieth
GETTY IMAGES NORTH AMERICA / Steve DYKES

The 154th Open Championship is set for July 16-19 at Royal Birkdale Golf Club, the same venue where Spieth captured the Claret Jug nine years ago with a wire-to-wire performance that included a dramatic final-round 69 to hold off Matt Kuchar by three strokes. That victory remains his only Open win, but his record in the championship is strong: he has never missed a cut in 11 starts, with multiple top-10 finishes and a proven affinity for creative shot-making in windy, unpredictable conditions.

Current futures odds for 2026 list Spieth around +4000 to +5500 across major sportsbooks like DraftKings, FanDuel and BetMGM, placing him in the 40-1 to 55-1 range. Scottie Scheffler leads at +300 to +400, followed by Rory McIlroy (+650 to +800), Jon Rahm (+1100) and Xander Schauffele (+1400 to +1600). Spieth’s price reflects his world ranking slide — he has hovered outside the top 50 in recent months — but also acknowledges his pedigree on links courses and potential for a breakout.

Spieth’s 2026 season has shown promise after years hampered by a nagging left wrist injury requiring surgery in late 2024. He returned fully healthy for the new year, stating in January interviews that he felt “as good as I’ve ever been” structurally, with no pain and improved mechanics after a clean offseason. Early results back the optimism: a T24 at the Sony Open in Hawaii (68-68-68-69, -7), T29 at the AT&T Pebble Beach Pro-Am (-13), T12 at The Genesis Invitational (-11) and T11 at the Arnold Palmer Invitational (-6). These finishes include multiple top-15s and solid ball-striking, with data from sources like Data Golf showing positive strokes gained in approach and around-the-green play.

The wrist, which plagued him since 2017 and led to compensatory swing habits, is no longer an issue. Spieth has emphasized building consistency through more competitive rounds, and his early 2026 performances indicate progress toward that goal. He missed the cut at the Phoenix Open but rebounded strongly elsewhere, suggesting the foundation is there for a stronger summer push.

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Royal Birkdale suits Spieth’s game. The course, a par-70 links layout known for firm fairways, deep bunkers and fescue-lined rough, rewards precision iron play, creativity from trouble and strong putting under pressure — all strengths during his 2017 triumph. Wind and weather often amplify the need for adaptability, an area where Spieth excels with his imagination around the greens and ability to manufacture shots.

Experts note his historical success in The Open: beyond the win, he finished T4 in 2015, T6 in 2016 and has contended in several others. His never-miss-cut streak underscores reliability in major conditions, and links golf favors scramblers who can recover from errant drives — a skill Spieth has honed over his career.

Challenges remain. Spieth’s putting, once world-class, has been streaky, and his driving accuracy has dipped at times. The field will feature dominant players like Scheffler, who has won multiple majors recently, and McIlroy, seeking the career Grand Slam. LIV Golf stars like Rahm and Bryson DeChambeau add depth, while emerging talents such as Ludvig Åberg and Tommy Fleetwood contend at shorter odds.

Yet Spieth’s major resume — Masters 2015, U.S. Open 2015, Open 2017 and PGA Championship 2015 runner-up — gives him an edge in big events. He sits one major shy of the career Grand Slam, a motivator that could fuel a strong run. In recent comments, Spieth expressed belief that consistency is “right around the corner,” pointing to improved balance between aggression and patience.

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Analysts see value in his odds. At +4000 or longer, Spieth offers upside for bettors given his Birkdale history and current upward trajectory. If he carries early-season momentum into summer events like the Memorial or Travelers, his price could shorten significantly by July.

The Open’s rotating venues and emphasis on links mastery keep doors open for veterans like Spieth. Past champions at Birkdale include legends like Arnold Palmer and Tom Watson, but Spieth proved he can conquer it. With health on his side and form trending positively, there’s a genuine chance — perhaps not favored, but far from improbable — that he hoists the Claret Jug again in 2026.

As the golf world turns toward the majors, Spieth’s story remains one of resilience. The kid who once dominated now seeks revival, and Royal Birkdale could provide the stage for another memorable chapter.

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Brakes firm Surface Transforms files administration notice and warns on job cuts after GM contract loss

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Knowsley firm hires restructuring advisers and starts ‘cost rationalisation exercise’

Surface Transforms in Kirkby

Surface Transforms, in Kirkby(Image: Liverpool Echo)

Supercar brakes firm Surface Transforms has appointed restructuring advisers and filed a notice of intention to appoint administrators as it deals with the fallout of losing its biggest client. The Knowsley business, which two years ago received a £13.2m loan through Liverpool City Region Combined Authority, announced last week it had lost its contract with global car giant General Motors (GM).

GM last year provided 84% of the group’s revenues and had also given it millions of pounds of support. Surface Transforms said the contract loss had a “material impact on the company’s ability to trade”.

Today Surface Transforms announced its shares would be suspended from trading on AIM and that it had appointed Alvarez and Marsal (A&M) as corporate restructuring advisers, with directors working with A&M to “understand the options available to the company to provide the best outcome for all stakeholders”.

The company also said it had “initiated a cost rationalisation exercise as a consequence of the reduced production volumes” following the contract loss. It will start consulting with staff over potential redundancies and layoffs.

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The board also confirmed it was filing with the High Court a notice of intention to appoint A&M as administrators. It said that once the notice was filed “the company will be protected against any creditor enforcement action for a period of ten working days and will continue to work with A&M on the options available to the company”.

Surface Transforms is the UK’s only manufacturer of carbon‐ceramic brake discs. In 2023, Liverpool City Region Combined Authority announced that Mayor Steve Rotheram’s Urban Development Fund – part funded by the European Regional Development Fund (ERDF) – was offering a £13.2m loan to the business to help it grow its Knowsley base and to create jobs.

At the time, Surface Transforms CEO Kevin Johnson said: “We are delighted to have secured this capital expenditure loan, which will enable us to execute our strategic growth plans and further strengthen our position as a leader in carbon fibre reinforced ceramic automotive brake discs.”

BusinessLive last week asked the Combined Authority what Surface Transforms’ announcement might mean for its loan. A spokesperson said: “We are aware of the situation and are in dialogue with the company to fully understand the current position. It would not be appropriate to make any further comment at this time.”

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Asian market beckons for i-screen

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Asian market beckons for i-screen

After a decade in business, a diagnostic testing platform is planning its next move.

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Earnings call transcript: Sleep Number’s Q4 2025 results show mixed trends

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Earnings call transcript: Sleep Number’s Q4 2025 results show mixed trends

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Lloyds, Bank of Scotland and Halifax apps showed customers other users' transactions

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Lloyds, Bank of Scotland and Halifax apps showed customers other users' transactions

The Lloyds Banking Group customers reported being able to view payments and charges from other sources.

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Aboriginal firms seek AUKUS shift as WA procurement leads nation

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Aboriginal firms seek AUKUS shift as WA procurement leads nation

WA’s Indigenous business sector is eager to diversify into defence to latch onto job opportunities coming through the AUKUS partnership.

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Rapala VMC Corporation (RPNMF) Q4 2025 Earnings Call Transcript

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript

Rapala VMC Corporation (RPNMF) Q4 2025 Earnings Call March 12, 2026 5:00 AM EDT

Company Participants

Tuomo Leino – Executive VP, General Counsel, Head of Sustainability & Secretary of the Board
Cyrille Viellard – President & CEO
Miikka Tarna – Chief Financial Officer

Conference Call Participants

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Joonas Häyhä – OP Corporate Bank plc, Research Division

Presentation

Tuomo Leino
Executive VP, General Counsel, Head of Sustainability & Secretary of the Board

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Welcome to this Investor Relations call of Rapala VMC Corporation covering the Full Year 2025. My name is Tuomo Leino, and I am here with President and CEO, Cyrille Viellard.

Cyrille Viellard
President & CEO

Good morning, everyone.

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Tuomo Leino
Executive VP, General Counsel, Head of Sustainability & Secretary of the Board

And CFO, Miikka Tarna.

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Miikka Tarna
Chief Financial Officer

A very good morning to you all.

Tuomo Leino
Executive VP, General Counsel, Head of Sustainability & Secretary of the Board

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We will first hear from Cyrille and after that, Mikika will go through the key figures. After the presentations, we are open to questions. So, without further ado, Cyrille, if you may.

Cyrille Viellard
President & CEO

Thank you, Tuomo, and thank you very much to all of you again for attending our call today. It has now been for me 1 year since I have been entrusted with leading Rapala VMC with our global management team. We have delivered what we targeted in 2025 in a highly disrupted trading environment, with fluctuating tariffs and slow consumption in our European markets. We have grown sales. We have improved comparable EBIT and improved our financing situation. So, a big thanks to our global Rapala VMC team for their hard work, passion and dedication.

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If we look, as you see on the chart at the last 5 years, we are back in sales

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