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High Drama and Big Impact: Trump’s Bold Tariff Plans and What to Expect

Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
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Microsoft's Azure Growth Slows, Testing Investor Confidence Amid AI Investments

 

Microsoft Corp’s Azure cloud-computing service reported slower quarterly growth, disappointing investors eager for returns from the company’s substantial investments in artificial intelligence (AI) products.

Key Takeaways:

  1. Slowing Growth in Azure: Azure's revenue grew by 29% in the fiscal fourth quarter, down from a 31% rise in the previous quarter. AI contributed eight percentage points to this growth, up from seven in the prior period.

  2. Impact on Shares: Microsoft’s shares fell about 3% in premarket trading on Wednesday following the announcement.

  3. AI Investments and Challenges: CEO Satya Nadella has integrated AI technology from OpenAI into Microsoft’s products, including digital assistants called Copilots. However, corporate customers are just starting to adopt these AI assistants, which still face some challenges.

  4. Capital Expenditures: Capital expenditures jumped to $19 billion in the fourth quarter, up from $14 billion in the previous quarter, as Microsoft invests heavily in data centers and servers to meet cloud and AI service demand.

  5. Earnings and Revenue: Total revenue increased by 15% to $64.7 billion in the fourth quarter, with adjusted profit at $2.95 per share, meeting analysts' expectations.

  6. Future Outlook: CFO Amy Hood indicated that while Azure growth would continue to slow in the current quarter, investments in data centers and servers would drive growth acceleration in the second half of fiscal 2025.

  7. Cybersecurity and Gaming: Microsoft’s cybersecurity products and Xbox video-gaming unit showed strong performance, with Defender for Cloud surpassing $1 billion in revenue and a 61% increase in Xbox content and services revenue.

Despite the slowing growth in Azure, Microsoft's significant investments in AI and cloud infrastructure are expected to pay off in the longer term, with a positive outlook for the second half of fiscal 2025.

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