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The Trade Shockwave

From crumbling consumer confidence to Hollywood's collapse at the Chinese box office, here’s everything that shook the corporate, economic, and political world since our last post.

🏢 Corporate Actions

📊 Earnings in Focus

  • Goldman Sachs posted a 15% jump in Q1 profits ($4.7B), largely from trading, but flagged “material global risks” due to trade tensions.
  • BlackRock’s CEO Larry Fink issued a stark warning: “A U.S. recession is on the horizon” as instability escalates from Trump's tariff regime.
  • Delta, Logitech, Diageo, and others have pulled forward guidance amid policy unpredictability.

🎬 Hollywood’s China Crash

The trade cold war is freezing out U.S. films in China. Here’s the harsh drop-off:

Or check this AI-recreated chart showing the collapse of franchise performance from previous movies to their latest sequels:

(📉 Moana, Venom, Kung Fu Panda, and more—all saw 50-90% drops.)

📉 Economic Trends

📉 Consumer Sentiment Hits Rock Bottom

  • The University of Michigan Consumer Sentiment Index has hit a historic low.
  • Inflation fears reached a 44-year high, dragging retail confidence and investor expectations into the mud.

🏦 Fed Watch

  • The Fed signals potential rate cuts if tariffs persist, as pressure mounts from falling consumer spending and shaky job growth.

🇧🇷 Brazil Outlook

  • Brazilian economists revised GDP forecasts downward due to sluggish exports and rising borrowing costs.

📰 Top News Stories

🔥 Tariff Domino Effect

  • China retaliated with sweeping import bans and screening limits on U.S. media and entertainment, prompting studio panic in Hollywood.
  • President Trump paused some tariffs for 90 days, but markets remain nervous over what’s next.

🏛️ Political Heat

  • Trump's national emergency declaration under IEEPA continues to stir debate as economists question long-term consequences.
  • Democrats begin crafting campaigns around “Tariff Recession,” hoping to win swing states hit by export losses.

🔮 What’s Next?

  • All eyes on corporate earnings this week—especially tech and retail—to gauge tariff impact.
  • If consumer sentiment doesn’t rebound, we could see a recession-consumption spiral heading into Q3.
  • Hollywood studios are expected to pivot strategies, favoring international co-productions to regain Chinese market access.

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