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After an initial wave of optimism following the Federal Reserve’s indication of potential rate cuts in 2025, Wall Street’s attention has quickly shifted back to the persistent headwinds that have been troubling the market: the looming threat of tariffs and the potential risks associated with the booming, but perhaps overhyped, artificial intelligence sector.

The short-lived rally quickly fizzled, reflecting a sense among market strategists that the fundamental challenges facing investors remain firmly in place.

Dennis Debusschere, president of 22V Research, succinctly captured the mood, stating that now that markets are through the Fed meeting, the focus will shift back to President Trump’s tariffs and the possibility of reciprocal duties.

How these potential policy shifts might impact corporate profits this year is, according to Debusschere, “absolutely what the market’s been struggling with.”

This struggle was evident as both Nike (NKE) and FedEx (FDX) stocks took a hit after the companies warned that economic headwinds, including potential tariffs, could negatively impact their earnings.

The concerns surrounding tariffs are multi-layered.

Investors are grappling with uncertainty about which companies will be directly affected, the potential for retaliatory counter-tariffs, and the broader implications of price increases for consumers.

The market’s tariff concerns have many layers.

There’s the question of which companies will be impacted by tariffs.

There’s the question of which companies could be impacted by counter-tariffs.

And then there are further questions on how any potential price increases in some industries could also raise prices for other products.

The overall fear is that these factors could dampen consumer spending and slow down overall economic activity.

The jerky market action proves that investors are struggling to know how to react.

Piper Sandler chief investment strategist Michael Kantrowitz told Yahoo Finance that clarity is needed.

Until we get to April 2, we’re kind of sitting and waiting for some direction and for some clarity.

Kantrowitz said that policy uncertainty was the leading factor in the recent market sell-off, which in turn clouded the outlook for the Federal Reserve and corporate earnings.

AI: boom or bubble?

The recent market turbulence wasn’t solely attributable to tariff anxieties.

A significant factor has been the correction in the “Magnificent Seven” tech stocks, which have had their worst quarter compared to the S&P 500 since 2022.

As such, the most popular trade of the last couple of years has had its rating dropped.

Morningstar’s chief US market strategist David Sekera has gone so far as to describe the recent market action as a “bear market in artificial intelligence stocks.”

Given the outsized influence of large-cap tech companies on the S&P 500, some strategists worry that further declines in these stocks could trigger a broader market downturn.

“A key reason we have been forecasting a slump in the S&P 500 in 2026 is an assumption that fading enthusiasm for AI would prompt a valuation-driven slide in the index then rather than in 2025,” wrote Capital Economics chief markets economist John Higgins.

Accordingly, it is possible the bursting of the AI bubble is just happening sooner than we had envisaged.

The Federal Reserve’s pronouncements provided a brief respite, but the underlying concerns about tariffs and the sustainability of the AI boom continue to cast a shadow over Wall Street, leaving investors bracing for further volatility as the market seeks direction.

The post From Powell to policy: Wall Street grapples with Tariffs, tech risks after Fed’s signals appeared first on Invezz

The US Treasury Department on Friday lifted economic sanctions against Tornado Cash, a cryptocurrency mixing service that had been accused of enabling illicit financial activities, including money laundering for North Korean hackers.

The move follows a legal challenge from cryptocurrency advocates and a court ruling that found the sanctions exceeded the Treasury’s authority.

Tornado Cash, which allows users to obscure the origins and destinations of digital transactions, was blacklisted by the Treasury’s Office of Foreign Assets Control (OFAC) in 2022.

Regulators claimed the platform was used to launder over $7 billion in illicit funds, including $455 million stolen by the North Korean state-backed hacking group Lazarus.

Despite reversing the sanctions, the Treasury maintained that North Korea’s cybercrime operations remained a serious threat.

Officials said the administration would continue to explore other measures to combat the misuse of digital assets for criminal purposes.

“Digital assets present enormous opportunities for innovation and value creation for the American people,” said Secretary of the Treasury Scott Bessent. 

“Securing the digital asset industry from abuse by North Korea and other illicit actors is essential to establishing US leadership and ensuring that the American people can benefit from financial innovation and inclusion.”

Tornado Cash’s TORN token surged over 75% following the Treasury’s decision, marking a significant market shift.

Legal battle and court ruling

The decision to lift the sanctions comes after a lengthy court battle initiated by six Tornado Cash users, who were financially backed by cryptocurrency exchange Coinbase.

The plaintiffs argued that sanctioning open-source software amounted to an infringement on free speech and hindered technological development.

A federal appeals court ruled in their favor in November 2024, finding that the Treasury had overstepped its authority.

The court determined that Tornado Cash’s immutable smart contracts did not meet the legal definition of “property” under US sanctions laws, making OFAC’s designation invalid under the International Emergency Economic Powers Act.

Judge Don Willett, writing for the court, acknowledged that while the technology could be used for illicit purposes, the responsibility for regulating such tools lay with Congress rather than the judiciary.

The ruling raised broader concerns about how US agencies apply financial sanctions in the rapidly evolving world of decentralized finance.

How cryptocurrency regulation is shaping up under Trump

The Biden administration’s stance on cryptocurrency regulation has come under scrutiny, particularly as former President Donald Trump has positioned himself as a pro-crypto candidate.

Earlier this month, Trump signed an executive order establishing a strategic cryptocurrency reserve and hosted a White House summit with industry leaders to discuss regulatory changes.

Meanwhile, legal scrutiny of Tornado Cash is not over.

Co-founder Roman Storm is awaiting trial in the US on charges of facilitating over $1 billion in illicit transactions.

Another developer, Alexey Pertsev, was sentenced last year in the Netherlands to more than five years in prison for money laundering.

The lifting of sanctions on Tornado Cash highlights the ongoing tension between regulators and the cryptocurrency industry, as governments worldwide struggle to balance financial innovation with the need for oversight and security.

The post TORN surges over 75% as US lifts Tornado Cash sanctions, citing legal and policy concerns appeared first on Invezz

LATAM’s cryptocurrency landscape continues to grow.

This week’s highlights come from Argentina, which recently granted Crypto.com operating approval. Meanwhile, Hellium installed 100 mobile hotspots in Mexico.

The National Securities Commission (CNV) of Argentina has approved Crypto.com to operate as a Virtual Asset Service Provider (VASP), according to their official website.

This achievement is a crucial milestone for the organization, as they continue to pursue a complete operating license under the new restrictions published on March 14.

Alain Yacine, president of Crypto.com for Latin America, expressed delight in the achievement and enthusiasm for giving Argentine customers and merchants a safer and more comprehensive crypto trading experience.

The Latin American market, notably Argentina, is quickly increasing bitcoin usage, making it a key emphasis of Crypto.com’s growth plan.

According to recent research, nearly half (46%) of Argentine respondents believe it is vital to spend cryptocurrency via a debit card, with more than half (57%) planning to invest in cryptocurrencies within the next year.

Argentina has more than 10 million crypto asset accounts, indicating a strong interest in financial technology and digital currency.

According to Crypto.com, local stablecoin activity makes up 61.8% of transaction volume, much exceeding the global average of 44.7%.

This demonstrates a desire for financial security in an unpredictable economic climate.

The expanding legal frameworks are critical for user safety, as they seek to promote transparency and protection inside Argentina’s crypto ecosystem, paving the road for a more regulated market.

Helium installs 100 mobile hotspots across 18 cities in Mexico

Helium is growing its network in Mexico, with the recent installation of 100 new mobile hotspots, bringing the total number to 736 across the nation.

According to Cointelegraph, this big breakthrough comes after the company’s collaboration announcement with Movistar in February. Helium, noted for its decentralized wireless communication platform built on the Solana blockchain, aims to improve user connectivity and service quality while encouraging community-driven network growth.

Helium has recorded a total of 281.83 GB of data moved over the last 30 days, showing strong activity in the region. Daily data transmission amounts vary greatly, with peaks surpassing 40 GB on some days and low activity on others.

This variance implies that the network has a dynamic usage pattern, which is maintained by community members who contribute to its expansion by adding new hotspots and earning HNT awards for their efforts.

Bitso: 39% of the crypto community in LATAM preferred stablecoins in 2024

According to Bitso’s most recent estimate, in 2024, 39% of Latin American users would turn to stablecoins as a haven in the face of economic crises such as inflation and currency depreciation.

The “Panorama Cripto en América Latina” report shows a considerable movement toward stablecoins such as USDC and USDT, indicating a growing demand for these assets as a hedge against economic volatility.

According to Cointelegraph, this desire matches broader developments in the region’s cryptocurrency market, as more people seek out digital assets that offer stability.

The research also indicates a shift in customer preferences, with Bitcoin’s percentage of sales falling from 38% in 2023 to 22% in 2024.

This reduction can be ascribed to Bitcoin’s rising price and a popular investing technique among users known as “HODL,” in which investors keep their Bitcoin rather than sell.

Other cryptocurrencies are also gaining traction, with altcoins such as Ethereum and Solana holding their positions and meme coins such as PEPE and DOGE seeing significant rises in popularity, demonstrating a wide range of interest in digital assets.

Furthermore, the paper highlights major trends in key nations such as Argentina, Brazil, and Colombia. In Argentina, hyperinflation and capital constraints have increased stablecoin adoption by 11%, increasing the total to 1.6 million users.

Brazil’s regulatory developments and DeFi growth have resulted in stablecoins accounting for 26% of purchases, with a customer base of 1.9 million.

Finally, in Colombia, the collapse of the Colombian peso has reinforced stablecoins as the preferred option among users, suggesting a regional response to economic uncertainty.

The post LATAM crypto news: Crypto.com gains Argentina approval, Helium expands in Mexico appeared first on Invezz

During his campaign, presidential candidate Donald Trump has put forward a proposition that could drastically alter the financial landscape for millions of Americans: the elimination of taxes on tips.

While the concept of allowing service workers to keep more of their earnings sounds appealing on the surface, economists and policy analysts are divided on its potential impact, warning of unintended consequences that could disproportionately affect the working class.

A tax cut with strings attached? Examining the potential benefits

Proponents of the policy argue that it would provide much-needed relief to those working in tipped industries.

A report from The Budget Lab at Yale University estimates that eliminating tip taxes could result in an average tax cut of $1,700 per year for affected families.

However, the Yale report also notes that this benefit would be concentrated among a relatively small group of Americans.

“About 4% of families report tips to the IRS, and those who do are disproportionately young, unmarried, and lower-income,” the report states.

“This means that many tipped workers do not pay income tax to begin with and would not benefit from a new deduction.”

Critics of the plan caution that it could have several negative side effects.

Without careful safeguards, the elimination of tip taxes could exacerbate “tipping fatigue,” leading businesses to pressure customers into tipping more frequently, even for services where it is not traditionally expected.

The Economic Policy Institute (EPI) suggests that this change could make it easier for businesses to expect higher gratuities, even adding “recommended gratuity” to invoices with the expectation that consumers won’t speak up.

Furthermore, highly paid professionals like lawyers and financial advisors could exploit the system by reclassifying their fees as tips to avoid paying taxes, the EPI added.

The current disdain for tipping culture goes beyond young people or those on a budget.

Nearly 9 in 10 Americans think tipping culture is out of hand, according to a recent survey from WalletHub.

What’s more, about 60% think businesses are replacing employee salaries with customer tips.

A more fundamental concern is that eliminating taxes on tips could incentivize employers to lower base wages for tipped workers.

Under federal law, employers can pay tipped employees as little as $2.13 per hour, provided that they “customarily and regularly receive more than $30 a month in tips.”

This reliance on tips creates financial instability for workers and shifts the responsibility of providing a living wage from employers to customers.

The fiscal impact

Another potential downside of eliminating tip taxes is the significant reduction in federal revenue.

Yale estimates that the losses could exceed $100 billion over the next decade, even before accounting for behavioral changes that might further erode the tax base.

Because the government is already strapped for cash, that could lead to the further defunding of social programs that benefit lower-income, tipped employees.

According to the EPI:

The tax benefits could accrue primarily to high-income taxpayers, yet the revenue losses would harm the public overall, as governments would have less funding for high-quality public education, safe roads, public health, and anti-poverty programs for children and families.

While Donald Trump has championed the elimination of tip taxes, the issue has also garnered support from some Democrats, including Kamala Harris. However, these endorsements often come with caveats, such as restrictions on the scope of the policy and calls for increases in the minimum wage.

As the debate over tip taxes continues, it is essential to consider the potential benefits and drawbacks for all stakeholders, ensuring that any changes to the system promote fairness and economic opportunity for all Americans.

The post Tax-free tips: Trump’s promise could save over $100 billion, but at what cost? appeared first on Invezz

The US Treasury Department on Friday lifted economic sanctions against Tornado Cash, a cryptocurrency mixing service that had been accused of enabling illicit financial activities, including money laundering for North Korean hackers.

The move follows a legal challenge from cryptocurrency advocates and a court ruling that found the sanctions exceeded the Treasury’s authority.

Tornado Cash, which allows users to obscure the origins and destinations of digital transactions, was blacklisted by the Treasury’s Office of Foreign Assets Control (OFAC) in 2022.

Regulators claimed the platform was used to launder over $7 billion in illicit funds, including $455 million stolen by the North Korean state-backed hacking group Lazarus.

Despite reversing the sanctions, the Treasury maintained that North Korea’s cybercrime operations remained a serious threat.

Officials said the administration would continue to explore other measures to combat the misuse of digital assets for criminal purposes.

“Digital assets present enormous opportunities for innovation and value creation for the American people,” said Secretary of the Treasury Scott Bessent. 

“Securing the digital asset industry from abuse by North Korea and other illicit actors is essential to establishing US leadership and ensuring that the American people can benefit from financial innovation and inclusion.”

Tornado Cash’s TORN token surged over 75% following the Treasury’s decision, marking a significant market shift.

Legal battle and court ruling

The decision to lift the sanctions comes after a lengthy court battle initiated by six Tornado Cash users, who were financially backed by cryptocurrency exchange Coinbase.

The plaintiffs argued that sanctioning open-source software amounted to an infringement on free speech and hindered technological development.

A federal appeals court ruled in their favor in November 2024, finding that the Treasury had overstepped its authority.

The court determined that Tornado Cash’s immutable smart contracts did not meet the legal definition of “property” under US sanctions laws, making OFAC’s designation invalid under the International Emergency Economic Powers Act.

Judge Don Willett, writing for the court, acknowledged that while the technology could be used for illicit purposes, the responsibility for regulating such tools lay with Congress rather than the judiciary.

The ruling raised broader concerns about how US agencies apply financial sanctions in the rapidly evolving world of decentralized finance.

How cryptocurrency regulation is shaping up under Trump

The Biden administration’s stance on cryptocurrency regulation has come under scrutiny, particularly as former President Donald Trump has positioned himself as a pro-crypto candidate.

Earlier this month, Trump signed an executive order establishing a strategic cryptocurrency reserve and hosted a White House summit with industry leaders to discuss regulatory changes.

Meanwhile, legal scrutiny of Tornado Cash is not over.

Co-founder Roman Storm is awaiting trial in the US on charges of facilitating over $1 billion in illicit transactions.

Another developer, Alexey Pertsev, was sentenced last year in the Netherlands to more than five years in prison for money laundering.

The lifting of sanctions on Tornado Cash highlights the ongoing tension between regulators and the cryptocurrency industry, as governments worldwide struggle to balance financial innovation with the need for oversight and security.

The post TORN surges over 75% as US lifts Tornado Cash sanctions, citing legal and policy concerns appeared first on Invezz

In a key policy statement on Friday, President Donald Trump reaffirmed his commitment to reciprocal tariffs while hinting at potential “flexibility” in their implementation.

Despite mounting requests for exemptions, Trump maintained that his administration would consistently enforce the tariffs, signaling a firm stance on trade while leaving room for strategic adjustments.

“People are coming to me and talking about tariffs, and a lot of people are asking me if they could have exceptions,” Trump told reporters in the Oval Office.

“And once you do that for one, you have to do that for all.”

The president, known for his strong support of tariffs as a tool to protect American industries, insisted that his core trade principles remained unchanged.

Addressing concerns over his recent decision to grant a temporary one-month exemption to major automakers, he clarified,

“I don’t change. But the word flexibility is an important word. Sometimes it’s flexibility. So there’ll be flexibility, but basically, it’s reciprocal.”

Trump’s ‘Liberation Day’ tariff plan

Trump has championed the April 2 start date for his reciprocal tariffs as America’s “liberation day.”

Under this policy, tariff rates will be adjusted to match those other countries impose on US goods.

Additionally, the administration is evaluating how other non-tariff barriers—such as value-added taxes—could be addressed through new trade measures.

The tariff strategy has drawn sharp criticism from global trade partners and investors, who fear escalating trade tensions.

Financial markets have reacted cautiously to Trump’s series of tariff-related announcements, with concerns that protectionist policies could disrupt global supply chains and trigger economic retaliation.

China trade tensions escalate

As Trump pushes ahead with his tariff agenda, tensions between the US and China remain high.

Beijing has already imposed retaliatory tariffs on U.S. agricultural products in response to Washington’s broader duties on Chinese imports.

The president revealed plans to speak directly with Chinese President Xi Jinping to discuss the ongoing trade dispute.

However, with both countries doubling down on their trade policies, analysts warn that negotiations may prove difficult.

Since returning to the White House, Trump has made tariffs a central pillar of his economic strategy.

His administration argues that the policy will level the playing field for American businesses, but critics fear it could spark a full-scale trade war.

As the April 2 deadline approaches, global markets and trade partners will be closely watching how the US implements its reciprocal tariff plan—and whether Trump’s promise of “flexibility” will translate into meaningful exemptions.

The post Trump’s latest stand on reciprocal tariffs: signals ‘flexibility’ but stands firm on trade policy appeared first on Invezz

This morning, I was meant to be on my way to Heathrow Airport, bags packed and boarding pass ready for a 9:30 AM British Airways flight to Mumbai.

I’d just opened the Bolt app to book my ride when a news alert stopped me cold: Heathrow, Europe’s busiest airport, was shut down due to a massive power outage caused by a fire at a nearby substation.

My travel plans—weeks in the making—evaporated, leaving me relieved I hadn’t left yet but stunned by the chaos I’d narrowly dodged.

As I followed the unfolding crisis, the numbers painted a grim picture.

Heathrow, a global hub handling over 1,300 flights daily, was paralyzed.

By day’s end, officials confirmed 1,351 flights were canceled or diverted, affecting up to 291,000 passengers, per aviation analytics firm Cirium.

For those trapped in the turmoil—and those like me, spared by timing—this wasn’t just a disruption; it was a glaring sign of an airport stretched to its limits, reigniting debates over its capacity and resilience.

A cautious restart looms

After hours of uncertainty, Heathrow Airport issued a release offering hope.

“Our teams have worked tirelessly since the incident to ensure a speedy recovery,” a spokesperson said.

We’re pleased to say we’re now safely able to begin some flights later today. Our first flights will be repatriation flights and relocating aircraft.

They added, “They told travelers not to go to the airport unless advised to do so by their airline, adding:

We will now work with the airlines on repatriating the passengers who were diverted to other airports in Europe. We hope to run a full operation tomorrow and will provide further information shortly.

They noted, “Heathrow uses as much energy as a small city, so getting back to a full and safe operation took time.”

The warning was academic for me—I hadn’t left my doorstep—but it highlighted the crisis’s depth.

Limited operations resume tonight with repatriation flights and aircraft repositioning, aiming for a full schedule tomorrow.

Yet, with disruptions expected to linger, recovery feels fragile.

A fire sparks a shutdown

The trouble started late Thursday when a blaze broke out at the North Hyde substation in Hayes, three miles from Heathrow.

The fire, fueled by a transformer holding 25,000 liters of cooling oil, raged into Friday, cutting power to the airport.

The London Fire Brigade sent 10 fire engines and 70 firefighters, with Deputy Commissioner Jonathan Smith calling it “challenging and very hazardous.”

By midday, the fire was 90% out, but its impact was total.

The outage hit 67,000 West London households, with 5,000 still powerless by late Friday.

At Heathrow, backup generators faltered, unable to sustain a facility with city-scale energy needs. Flights stopped, terminals dimmed, and chaos took hold.

Passengers bear the brunt

Though I stayed home, others weren’t so lucky. Taylor Collier-Brown, stranded in Geneva with her hockey team, told NBC News,

“Eleven hockey girls with a match tomorrow can’t make it back—the whole team is in Geneva.”

British Airways CEO Sean Doyle called it “unprecedented,” warning of a “huge impact” over the weekend.

We were due to operate more than 670 flights carrying around 107,000 customers today.

With crew rest rules and scattered planes, tonight’s eight long-haul flights after 7 PM help few—including me, still grounded.

Experts and politicos weigh in

The shutdown has experts sounding alarms.

Aviation consultant John Strickland said, “This is a massive dislocation—like a contained version of 9/11. Recovery is a logistical nightmare.”

Dr. Alan Mendoza of the Henry Jackson Society told The Times,

The UK’s critical infrastructure isn’t hardened enough. This could repeat without upgrades.

Ruth Cadbury, Commons Transport Committee chair, added on BBC News, “This raises serious resilience questions.”

The outage also reignites the debate over Heathrow’s third runway, stalled for years over environmental and political hurdles.

The unfolding situation at Heathrow Airport, one of the world’s busiest travel hubs, has taken a dramatic turn with the involvement of the Metropolitan Police’s Counter-Terrorism Command.

What began as a power outage at a critical electrical substation in West London has morphed into something far more complex, injecting a layer of intrigue that has gripped public attention.

The police have been careful in their wording, stating, “There’s no direct evidence of sabotage,” yet their decision to investigate the possibility underscores the gravity of the incident.

This isn’t a routine power cut; it’s an event with potential implications for national security, given its cascading effects on what authorities describe as “critical national infrastructure.”

The substation in question, located in an exposed area of Hayes, has become the focal point of speculation.

Its vulnerability has drawn unsettling comparisons to a series of sabotage attacks on France’s rail network ahead of the 2024 Paris Olympics.

In that case, coordinated acts disrupted high-speed train lines, revealing how seemingly mundane infrastructure can become a target in modern asymmetric threats.

Here, too, the substation’s accessibility raises questions about whether this was a deliberate act masked as an accident or a genuine failure exacerbated by poor planning.

The Counter-Terrorism Command’s insistence on keeping an “open mind” reflects a cautious approach, but it also fuels uncertainty.

Are we dealing with a freak technical fault, or is this the opening salvo in a broader scheme? The ambiguity stokes tension, leaving the public—and officials—on edge as they await clarity.

This isn’t just about Heathrow; it’s about the fragility of interconnected systems that underpin modern life.

Airports, power grids, and transport networks are the arteries of a nation, and any disruption sends shockwaves far beyond the initial point of failure.

The police’s involvement elevates the stakes, suggesting that even if sabotage isn’t confirmed, the mere possibility demands a reassessment of how we protect these vital assets.

For now, the investigation unfolds behind closed doors, but its shadow looms large over the chaos playing out in plain sight.

Global and local fallout mounts

The ripple effects of the substation failure have been swift and far-reaching, touching lives and economies across continents.

With Heathrow’s runways darkened, 120 airborne flights were forced to divert to alternate airports—Gatwick, Manchester, Paris, and beyond.

Major airlines scrambled to adapt.

Qantas, for instance, rerouted its Singapore and Perth flights to Paris, arranging bus transfers for passengers to reach London—a logistical nightmare that underscores the scale of the disruption.

Cathay Pacific opted to cancel its Hong Kong services outright, while United Airlines turned seven flights back mid-journey, stranding passengers and crews alike.

Each decision reflects the domino effect of a single point of failure, amplifying the incident from a local outage to a global headache.

Closer to home, the impact in Hayes was visceral.

Resident Shakty described a “massive explosion” to The Independent, a sound that shattered the morning calm and heralded the evacuation of 150 people.

Schools closed, streets emptied, and a community found itself at the epicenter of a crisis it didn’t ask for.

The power outage initially left 16,300 homes in the dark, a number that dwindled to 5,000 by afternoon as engineers worked to restore supply. Yet the damage was done—both literally and figuratively.

Sky News estimates financial losses could climb to £20-30 million, a figure that captures everything from grounded planes to lost business. IAG, British Airways’ parent company, saw its stock dip, a tangible sign of investor unease.

Travel expert Simon Calder, speaking to BBC News, painted a grim picture: disruptions could linger “into next week,” tarnishing the UK’s reputation as a reliable global hub.

The human cost is harder to quantify but no less real. Passengers faced hours of uncertainty, their plans—business trips, holidays, reunions—upended by forces beyond their control.

In Hayes, families endured cold homes and disrupted routines, a stark reminder that infrastructure failures don’t discriminate.

The convergence of global and local fallout reveals a system stretched to its breaking point, where one incident can unravel months of planning and leave a trail of chaos in its wake.

Are we prepared?

The power failure at Heathrow Airport has cast a harsh spotlight on the fragility of critical infrastructure underpinning one of the world’s busiest aviation hubs.

Beyond the immediate chaos—120 diverted flights, 291,000 stranded passengers, and estimated losses of £20-30 million—the incident has exposed systemic vulnerabilities that resonate far beyond the UK.

Heathrow, handling 83.9 million passengers annually (based on 2023 figures from the Civil Aviation Authority, with growth projected into 2025), operates at near-capacity with just two runways and a sprawling network of supporting infrastructure.

The substation failure revealed how a single disruption can cripple this ecosystem.

Powerless terminals grounded flights, halted baggage systems, and left air traffic control scrambling.

Simon Calder, a travel expert speaking to BBC News, warned that disruptions could persist “into next week,” highlighting a lack of redundancy.

Unlike a storm or strike—events airports routinely plan for—this outage was a stark reminder that resilience isn’t just about weatherproofing; it’s about safeguarding the unseen arteries of power and connectivity.

Data underscores this vulnerability. The UK’s National Grid reports that 80% of its substations are over 25 years old, with many, like the one in Hayes, built in an era when demand was lower and security less scrutinized.

Paul Watters, an infrastructure analyst at the University of Surrey, told The Guardian,

“We’ve underinvested in modernizing these systems. A substation failure shouldn’t bring a global hub to its knees.”

Heathrow’s own “small city” analogy—housing 76,000 workers and 1,300 flights daily—falls flat when its energy backbone proves so brittle.

The incident raises a broader question: if a key node fails, where’s the backup?

Lessons from other airports

Contrast Heathrow’s predicament with other major airports and the gaps in preparedness become clearer.

Singapore’s Changi Airport, which served 58.9 million passengers in 2023 (per Changi Airport Group), operates with a triple-redundancy power system.

When a 2017 cable fault threatened operations, backup generators and a secondary grid kicked in within minutes, limiting delays to under an hour.

Changi’s design reflects a proactive stance—its $1.7 billion Terminal 5 expansion, due by 2030, includes microgrids to further insulate against outages.

Dr. Lim Wei Shen, a Singaporean aviation consultant, noted in a 2024 Straits Times interview, “Resilience isn’t an afterthought here; it’s engineered into the system.”

Atlanta’s Hartsfield-Jackson, the world’s busiest airport with 104.6 million passengers in 2023 (per Airports Council International), faced a similar test in December 2017.

A fire at an underground power facility blacked out the airport for 11 hours, canceling 1,200 flights.

The fallout—$50 million in losses and a scathing Federal Aviation Administration report—prompted a $300 million overhaul.

Today, dual power feeds and on-site generators ensure no single failure can repeat the chaos.

John Selden, Hartsfield-Jackson’s general manager, told CNN in 2023, “We learned the hard way: you don’t skimp on redundancy.”

Meanwhile, Dubai International (DXB), with 86.9 million passengers in 2023, integrates solar power and advanced battery storage, reducing reliance on external grids.

A 2022 trial saw DXB weather a regional blackout with zero flight disruptions.

These examples highlight a proactive ethos absent at Heathrow, where capacity debates—like the stalled third runway—often overshadow infrastructure hardening.

Cascading consequences and economic fallout

The Heathrow outage didn’t just strand travelers; it reverberated globally.

Qantas diverted flights from Singapore and Perth to Paris, United Airlines turned back seven planes, and Cathay Pacific canceled Hong Kong routes.

Sky News pegged losses at £20-30 million, but the ripple effects—stock dips for IAG (down 2.1% per Bloomberg) and disrupted supply chains—could push the toll higher.

The UK’s Department for Transport notes aviation contributes £22 billion annually to GDP; a prolonged hit risks denting that figure and the nation’s image as a reliable hub.

Locally, 16,300 powerless homes in Hayes dropped to 5,000 by afternoon, but the initial evacuations and school closures disrupted thousands.

Shakty, a resident quoted by The Independent, described a “massive explosion,” hinting at the outage’s violent onset.

Dr. Emily Carter, an energy policy expert at UCL, told BBC Radio 4, “This isn’t just about Heathrow—it’s a wake-up call for how interconnected our systems are. One failure and the dominoes fall.”

Security and sabotage concerns

The Metropolitan Police’s Counter-Terrorism Command stepping in adds a chilling dimension.

While “no direct evidence of sabotage” exists, the substation’s exposed location—echoing French rail attacks before the 2024 Olympics—raises red flags.

The UK’s Centre for the Protection of National Infrastructure warns that 30% of critical sites lack adequate physical security.

If deliberate, this could signal a new frontier in asymmetric threats. Even if accidental, it exposes a soft underbelly.

Heathrow’s partial restart offers relief, but the cracks remain.

Globally, airports like Changi and Hartsfield-Jackson show resilience is achievable with investment—Changi’s $50 million annual infrastructure budget dwarfs Heathrow’s stretched resources.

UK Energy Secretary Ed Miliband called the outage “unprecedented” on BBC Radio 4, hinting at a review, but concrete action lags.

For 291,000 passengers and a rattled nation, this isn’t a one-off—it’s a warning.

Ageing grids, limited backups, and security gaps require more than hope—they demand a strategic overhaul before the next failure becomes even costlier.

The post Heathrow’s fragile wings: a small fire exposes major flaws appeared first on Invezz

During his campaign, presidential candidate Donald Trump has put forward a proposition that could drastically alter the financial landscape for millions of Americans: the elimination of taxes on tips.

While the concept of allowing service workers to keep more of their earnings sounds appealing on the surface, economists and policy analysts are divided on its potential impact, warning of unintended consequences that could disproportionately affect the working class.

A tax cut with strings attached? Examining the potential benefits

Proponents of the policy argue that it would provide much-needed relief to those working in tipped industries.

A report from The Budget Lab at Yale University estimates that eliminating tip taxes could result in an average tax cut of $1,700 per year for affected families.

However, the Yale report also notes that this benefit would be concentrated among a relatively small group of Americans.

“About 4% of families report tips to the IRS, and those who do are disproportionately young, unmarried, and lower-income,” the report states.

“This means that many tipped workers do not pay income tax to begin with and would not benefit from a new deduction.”

Critics of the plan caution that it could have several negative side effects.

Without careful safeguards, the elimination of tip taxes could exacerbate “tipping fatigue,” leading businesses to pressure customers into tipping more frequently, even for services where it is not traditionally expected.

The Economic Policy Institute (EPI) suggests that this change could make it easier for businesses to expect higher gratuities, even adding “recommended gratuity” to invoices with the expectation that consumers won’t speak up.

Furthermore, highly paid professionals like lawyers and financial advisors could exploit the system by reclassifying their fees as tips to avoid paying taxes, the EPI added.

The current disdain for tipping culture goes beyond young people or those on a budget.

Nearly 9 in 10 Americans think tipping culture is out of hand, according to a recent survey from WalletHub.

What’s more, about 60% think businesses are replacing employee salaries with customer tips.

A more fundamental concern is that eliminating taxes on tips could incentivize employers to lower base wages for tipped workers.

Under federal law, employers can pay tipped employees as little as $2.13 per hour, provided that they “customarily and regularly receive more than $30 a month in tips.”

This reliance on tips creates financial instability for workers and shifts the responsibility of providing a living wage from employers to customers.

The fiscal impact

Another potential downside of eliminating tip taxes is the significant reduction in federal revenue.

Yale estimates that the losses could exceed $100 billion over the next decade, even before accounting for behavioral changes that might further erode the tax base.

Because the government is already strapped for cash, that could lead to the further defunding of social programs that benefit lower-income, tipped employees.

According to the EPI:

The tax benefits could accrue primarily to high-income taxpayers, yet the revenue losses would harm the public overall, as governments would have less funding for high-quality public education, safe roads, public health, and anti-poverty programs for children and families.

While Donald Trump has championed the elimination of tip taxes, the issue has also garnered support from some Democrats, including Kamala Harris. However, these endorsements often come with caveats, such as restrictions on the scope of the policy and calls for increases in the minimum wage.

As the debate over tip taxes continues, it is essential to consider the potential benefits and drawbacks for all stakeholders, ensuring that any changes to the system promote fairness and economic opportunity for all Americans.

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Greenland is experiencing a sharp rise in international visitors, fuelled by a mix of geopolitical attention from the US and significant infrastructure upgrades.

The opening of a new airport in the capital Nuuk in November 2024 has coincided with a 14% year-on-year increase in passengers on international flights to the island this January, according to Statistics Greenland.

At the same time, heightened global interest in the Arctic’s rare earth resources and new direct flight routes are accelerating the island’s transition from a fishing-dependent economy to a broader tourism and mining-led growth model.

Nuuk airport opens direct US route

Nuuk’s new international airport is now Greenland’s central gateway, cutting travel times and removing the need for stopovers in Copenhagen and Kangerlussuaq.

United Airlines is scheduled to begin direct flights from New York to Nuuk in June 2025, replacing the previously indirect travel route that involved transit via the former US military base.

The changes are already making an impact. Visit Greenland reported that three-quarters of local tourism operators saw higher bookings in the three months following the Nuuk airport launch.

Further expansion is planned. Ilulissat, Greenland’s leading tourist destination, will open a new international airport in 2026.

Another airport is currently under construction in Qaqortoq in the island’s south.

US spotlight lifts Greenland’s global profile

Greenland’s geopolitical visibility rose sharply after US President Donald Trump’s public interest in the island.

The arrival of Donald Trump Jr. at Nuuk’s new airport in January 2025 drew further media coverage.

Since then, the president has reiterated his aim to bring Greenland under US control, citing its rare earth mineral potential as key to national strategic interests.

This renewed focus has had commercial effects. Greenland Cruises, a company offering boat tours around the island’s icebergs and fjords, has reported higher-than-average bookings for the season.

Though local operators are expanding cautiously, financial institutions are urging them to increase capacity in preparation for a potential boom in Arctic tourism.

Tourism, and mining are seen as growth pillars

Greenland is aiming to reduce its economic dependence on fishing, which currently accounts for 95% of its exports.

The government is banking on tourism and mining to drive future growth.

Attractions include the island’s UNESCO-listed ice fjords, expansive glaciers, and marine life such as whales, which draw international travelers.

Alongside natural beauty, the country is also seeing a rise in pride and interest in Inuit culture.

This combination of ecological and cultural appeal is positioning Greenland as a key Arctic destination.

The tourism infrastructure expansion is being led by Greenland Airports, whose CEO Jens Lauridsen said the island expects “significant growth” in visitors this summer.

However, some tour operators remain cautious, choosing to wait until 2025 data becomes available before committing to large-scale investments.

EU, Singapore models shape Arctic strategy

While much of the recent growth is attributed to physical infrastructure and geopolitical focus, Greenland’s long-term economic strategy also draws inspiration from regulatory frameworks in the European Union and Singapore.

The island is looking to develop a digital asset economy alongside physical tourism and resource sectors.

This whole-of-government approach to economic development reflects broader efforts in the Arctic to secure sustainable growth while navigating increasing international attention.

Greenland’s rare earth reserves, vital for high-tech manufacturing, have placed it at the intersection of environmental stewardship and global economic competition.

As the 2025 summer season approaches, Greenland’s evolving profile as both a strategic and tourist destination is expected to attract continued interest from governments, investors, and travelers alike.

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US stocks have retreated in the past few months as concerns about Donald Trump’s tariffs continued. The Nasdaq 100 index has moved into a correction after falling by almost 12% from its highest point this year. Similarly, the Dow Jones and the S&P 500 indices have pulled back sharply.

These stocks reacted mildly to this week’s Federal Reserve interest rate decision. In it, the committee left interest rates unchanged between 4.25% and 4.50% and hinted that they would remain there for a while. Stocks jumped initially and then pulled back as investors waited for Friday’s options expiry. 

Top US stocks to watch next week

The US earnings season has ended, with just a few companies expected to publish their financial results. Some of the most notable ones are Oklo (OKLO), Intuitive Machines (LUNR), GameStop (GME), Chewy (CHWY), and Walgreens Boots Alliance (WBA).

Oklo stock

Oklo, a company associated with Sam Altman, will be one of the top stocks to watch next week as it publishes its financial results. These results come as the Oklo stock price has crashed by over 53% from its highest point this year. 

Oklo shares have dived as investors took profit following last year’s surge. At the time, the stock jumped from $5.53 to almost $60 as demand for modular reactor companies rose because of AI demand. 

Oklo’s results will not show much since the company is still in development and has yet to start making money. Investors will react to its cash burn and potential order intake.

GameStop stock

GameStop, the most popular meme stock, will be in the spotlight as the company publishes its financial results on Tuesday. These numbers will likely show that the company’s business continued deteriorating as demand for physical games and consoles waned. 

The average estimate is that GameStop’s revenue dropped by 17.6% in the fourth quarter to $1.48 billion. Its annual revenue will be $4.02 billion, followed by $3.75 billion next year. 

With its business deteriorating, the company is said to be considering a Bitcoin strategy as we recommended a few months ago. Such a move would see it emulate MicroStrategy, which has become a juggernaut. 

Intuitive Machines (LUNR)

The other top stock to watch will be Intuitive Machines, the embattled space company. LUNR stock price has crashed by over 70% after a recent failed mission. It has dropped to the lowest level since October last year. 

While Intuitive Machine’s earnings will be important, investors will focus on its recent mission and how it will affect its business. The expectation is that LUNR made over $55.7 million in the fourth quarter, translating to an annual revenue of $228 million. It will then make $342 million next year, but the recent incident may hurt its performance. 

Chewy (CHWY) stock

The other top stock to watch next week will be Chewy, a company that sells pet food in the United States. These numbers will come at a time when the Chewy stock price has crashed by about 20% amid growth concerns.

Analysts anticipate the results to show that the revenue rose by almost 13% to $3.2 billion. This will translate to an annual revenue figure of about $11.8 billion, a 5.93% annual growth. The average Chewy stock price forecast is $38.78, up from the current $32.3.

Lululemon (LULU)

Lululemon stock has crashed by almost 25% from its highest level this year as concerns about competition, growth, and Donald Trump’s tariffs. Therefore, analysts expect that the company’s sales will be $3.6 billion, a 11.8% increase from a year earlier. 

Read more: Lululemon stock: valuation reset done, 20% gains possible

Walgreens Boots Alliance (WBA)

Meanwhile, Walgreens, the second-biggest pharmacy chain in the US, will be a top stock to watch next week as it releases its numbers. The data will show whether the company has returned to growth this year. Analysts anticipate the results to show that its revenue rose by 2.3% in the February quarter to $37.9 billion. 

While these numbers are important, their impact on the stock will be limited as the company is being acquired by Sycamore Partners

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