US President Donald Trump and Tesla CEO Elon Musk speak to the press as they stand next to a Tesla vehicle on the South Portico of the White House on March 11, 2025 in Washington, DC.
Mandel Ngan | AFP | Getty Images
Developments from the White House are growing more exciting and unpredictable than those 1,000-episode Asian drama serials.
On Thursday, “So much for being Mr. NICE GUY” Donald Trump reverted to being a nice guy and had a “very good call,” in his words, with Chinese president Xi Jinping over trade issues. Following the call, Trump said that officials from both countries will meet to negotiate further. Trump had previously described the process of reaching an agreement with Xi as “extremely hard,” while Treasury Secretary Scott Bessent said that talks between the U.S. and China are “a bit stalled,” which makes the positive outcome of the call even more of a breakthrough.
But Trump’s no longer playing nice with Elon Musk. Just last Friday, the U.S. president at a farewell ceremony to Musk’s role at DOGE called the latter “terrific” and said “he will, always, be with us.” Starting from the weekend, however, Musk began blasting Trump’s “big, beautiful bill,” which on Thursday culminated in a public spat between the former compatriots in the White House. Trump acknowledged Thursday that “Elon and I had a great relationship” — note the use of the past tense — but he doesn’t know “if we will anymore.”
Unlike the twists and turns of a television series, however, the White House’s relationships with others — a drama equally or more entertaining than fiction to some — have concrete effects on the economy and markets. Tesla’s shares, for instance, tanked 14% after its CEO feuded with the U.S. President. A viewer cannot be completely absorbed, lest, in losing themselves in the spectacle, they lose their investments as well.
What you need to know today
Trump talks to Xi on trade
U.S. President Donald Trump and his Chinese counterpart Xi Jinping on Thursday had a “very good call” for about 90 minutes which focused “almost entirely” on trade, Trump wrote on Truth Social. He added that U.S. and China officials will meet soon for more talks to resolve an ongoing trade war. Beijing’s Ministry of Foreign Affairs and China’s embassy in the U.S. said earlier Thursday that Trump had requested the call with Xi.
Ugly spat between Trump and Musk
Trump on Thursday called Tesla CEO Elon Musk “CRAZY” and threatened to cut his companies’ government contracts as the two men feuded over a major tax bill. In response, Musk said Space X will begin decommissioning its Dragon spacecraft “immediately.” “Without me, Trump would have lost the election,” Musk added later. Shares of Tesla sank more than 14%.
Europe’s central bank cuts rates
The European Central Bank on Thursday lowered its key interest rate to 2% from 2.25% and trimmed its inflation expectations to 2% from its March forecast of 2.3% on the back of a stronger euro and lower energy costs. The ECB left its growth forecast for 2025 unchanged at 0.9% because of a stronger-than-expected first three months of the year paired with a weaker outlook.
U.S. markets dragged down by Tesla
U.S. stocks fell Thursday, weighed down by Tesla shares tanking. The S&P 500 retreated 0.53%, the Dow Jones Industrial Average lost 0.25% and the Nasdaq Composite lost 0.83%. Microsoft’s stocks, however, climbed 0.8% to hit a record and reclaim the title of the world’s largest company by market capitalization. Europe’s Stoxx 600 index ticked up 0.16%. Euro zone government bonds rallied on Thursday amid the ECB’s rate cut.
Circle shares pop after IPO
Shares of Circle Internet Group soared 168% on Thursday after the stablecoin company and its selling shareholders raised almost $1.1 billion in an initial public offering. The stock opened at $69 on the New York Stock Exchange after its IPO priced at $31. At one point, shares traded as high as $103.75. Circle joins Coinbase, Mara Holdings and Riot Platforms as one of the few pure-play crypto companies to list in America.
[PRO] A mild jobs report is best: JPMorgan
Investors should be rooting for a May jobs report that shows the labor market is holding up just fine as opposed to a big surprise in either direction, according to a JPMorgan trading desk note. Too low, and equities will take a hit; too high, and the bond market will react.
And finally…
Mathisworks | Digitalvision Vectors | Getty Images
Corporate layoffs have ramped up in recent weeks. Here are the companies making cuts
Companies are under increasing pressure to trim costs against the backdrop of global economic uncertainty brought on by Trump’s tariff policies. Several companies have announced price hikes.
Layoffs are another way to pull back.
Though many companies declined to provide specific reasoning for announced workforce reductions — instead lumping the layoffs with larger cost-cutting strategies or growth plans — tech leaders are starting to cite artificial intelligence as a clear consideration in hiring and head-count reductions.
CNBC looks at some of the companies that have announced layoffs in recent weeks.
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