Marketplace Morning Report

Miami Beach has long been a famous (or infamous) destination for spring break revelers. But the city is starting to be over it; past spring breaks have devolved into stampedes, stabbings and even fatal shootings. Now, the city has drawn up rules to keep tourists and residents safe — but some locals wonder how that could affect businesses that rely on spring breakers. Also: less environmental regulation and rising corporate bond yields.

Federal agencies have until today to submit reorganization plans to the Office of Management and Budget. Those plans include layoffs, and the Social Security Administration is not immune. The agency is slated to reduce its staff by 7,000 employees, and many are worried about the problems that could result. Then, a wide-ranging antitrust probe into Microsoft is moving ahead, and students are suing the feds after staff cuts at federally-run tribal colleges.

From the BBC World Service: The president of Germany’s central bank, Joachim Nagel, has told the BBC that tariffs under U.S. President Donald Trump could push Germany into another recession — and he backs the European Union’s retaliatory actions. Also: The U.S. is once again sending military aid and intelligence support to Ukraine, which may unlock a multibillion-dollar rare mineral deal between the two countries. We’ll hear more.

Elevator parts, beer cans, gym equipment, metal furniture — these are just a few of the hundreds of goods now subject to President Donald Trump’s 25% tariffs, not just on steel and aluminum but lots of things made from those metals. The tariffs are coming amid concerns trade policy could cause a recession. We’ll hear more. Plus, solar power is on a tear, and inflation dipped amid market uncertainty.

Delta, American, Southwest and United have all cut their first-quarter growth forecasts or warned of slowing demand. This downturn comes five years to the week after the official start of the COVID-19 pandemic, when airlines faced a truly existential threat. We take a look back. Plus, in a much-needed break, the consumer price index showed cooling inflation in February. And we break down expansions in steel and aluminum tariffs.

From the BBC World Service: Greenland remains in U.S. President Donald Trump’s sights, but residents of the vast, mineral-rich Danish territory have elected a pro-business, pro-independence party in its general elections. We’ll hear more. Also: Another morning, another set of tariffs. The European Union hits back with reciprocal tariffs after the U.S. imposed a blanket 25% tax on steel and aluminium imports. And what’s the Chinese response to U.S. import taxes?

Americans took on an additional $74 billion in credit card debt last year, according to WalletHub, which is actually a smaller increase than we saw in 2023. But in 2024, Americans defaulted on $59 billion in credit card debt — a 34% jump from 2023. We’ll hear more. Also on the show: China’s deflation woes, a major crypto heist tied to North Korea and the market ripple effects of continued uncertainty.

Markets are a bit calmer this morning, after the NASDAQ had its steepest drop since 2022 and the S&P 500 tumbled 2.5% yesterday. Investors are looking forward to new data out today and this week that might offer insights into U.S. economic health. This comes after the Trump administration discounted market reaction to its tariff policies. Then, what economic legacies have been left by the COVID-19 pandemic five years on?

From the BBC World Service: Asian stock markets have continued to fall as investors raise concerns about the detrimental impact of President Donald Trump’s tariffs and a potential U.S. recession. Then, on the final day of the National People’s Congress, progress on artificial intelligence has been celebrated. And hackers allegedly linked to North Korea have cashed out at least $300 million of their record-breaking $1.5 billion heist from crypto company Bybit.

Economists believe the risk of recession is higher, surveys show. Sources of economic uncertainty include tariffs, federal layoffs and immigration policy. Today, we’ll chat about a shift in how top government officials are describing the projected path of the economy. Also, both houses of Congress must pass a stopgap funding bill by this Friday night to avoid a partial government shutdown. And, when is the “golden window” to put your house on the market?

There’s a clear divide over some sunnier economic data that’s been released over the past few months and how consumers are actually experiencing this economy. On today’s show, we discuss how some headline figures — like unemployment and inflation — can mislead rather than paint a full picture. Plus, some economists and investors are worried about the direction of the U.S. economy, which President Donald Trump said is headed for “a period of transition.”

From the BBC World Service: The Japanese government begins a rare auction of its emergency rice stockpiles in a bid to drive down the surging price of the national staple; rice prices have roughly doubled over the past year. Then, China’s retaliatory tariffs on billions of dollars’ worth of U.S. goods are officially in force. Plus, we’ll hear how the war in Ukraine is creating a new middle class of Russians.

This week, Fitch Ratings found that 6.5% of subprime borrowers were at least two months late on their car payments. That’s the highest level since the agency began collecting this data in 1994. Other data finds that auto loan delinquency rates increased in 2024 across all income levels. What’s behind all this? Plus, tariffs already being felt across the economy. And later, a vintage race car mechanic reflects on the sights, sounds and feelings of racing.

This week, Dunkin’ dropped its surcharges on drinks with nondairy milk. Starbucks did the same late last year, as have some indie coffee shops. Today, we look at how the popularity of nondairy milks is changing how restaurants set prices. But first, we unpack the chaos of recent tariffs, including how they affect a free trade agreement between the U.S., Canada and Mexico, and how trade policy uncertainty is impacting agricultural exporters.

From the BBC’s World Service: The world’s second-largest economy is struggling. The latest trade figures show that imports into China fell by more than 8% in January and February, compared to the same period last year. Then, following an emergency summit of European Union leaders, the bloc says it’s approved a plan that could allow for up to $870 billion in additional defense spending. Plus: a look at the instant noodles market in India.

New Congressional Budget Office calculations suggest a difficult path ahead for Republicans as they seek to find billions in budget cuts. The calculations show Republicans are unlikely to meet their cost-cutting goals without finding savings in health insurance programs that serve about 80 million low-income Americans and children. We’ll discuss. And later, we’ll parse out the current state of the job market and talk about the relationship between kids, social media and AI.

After the stock market closes today, Costco will release its latest quarterly earnings. While some retailers have backed away from commitments related to diversity, equity and inclusion, Costco has very publicly dug in. Will that affect the bottom line? Plus, Europe is going to be spending a lot more on defense. And later, we’ll get a preview of what the first jobs report under a new Trump presidency might look like.

From the BBC World Service: Following Germany’s plans to change its fiscal rules, the yield on its 10-year bund rose at its steepest in nearly 30 years, while French and Italian bond yields also surged. New, U.S. tariffs have pushed American yields higher, as well. We chat about some of the latest developments. Also: an emergency European summit on defense spending and back-and-forth decisions to open up tourism in North Korea.

U.S. businesses added 77,000 jobs in February, according to payroll processing company ADP — a dramatic drop from the 186,000 it estimated for January. It comes as firms are concerned about the impacts of tariffs and the potential for rising prices. We’ll discuss. But first, the Consumer Financial Protection Bureau is dropping its lawsuit against Zelle. And later, we’ll hear what layoffs mean for the morale and productivity of workers.

The second Trump administration is reportedly working on a plan to dramatically reduce the workforce at the Internal Revenue Service. As much as half of the workers at the tax collecting agency could be let go through a combination of layoffs, buyouts and attrition. Also on this morning’s show: We’ll preview the spring break travel economy and hear why wealth informs how quickly those affected by the Southern California wildfires can rebuild.