US Bars Harvard From Enrolling Foreigners

Friday, May 22nd, 2025

World Events — US Bars Harvard From Enrolling Foreigners

Bloomberg

The Trump administration has barred Harvard University from enrolling international students, revoking its Student and Exchange Visitor Program certification and forcing current foreign students to transfer or risk losing their legal status. The Department of Homeland Security justified the move by citing an “unsafe campus environment” and alleged ties to the Chinese Communist Party, accusing Harvard’s leadership of permitting anti-American and pro-terrorist activities, particularly targeting Jewish students. This unprecedented action compounds Harvard’s financial challenges, as the university already faces a freeze on $2.6 billion in funding and the potential loss of its tax-exempt status, while also threatening broader economic impacts for Massachusetts, where international students contribute significantly to the local economy and workforce. Homeland Security Secretary Kristi Noem indicated the ban could extend to other universities and outlined conditions under which Harvard could regain certification, including submitting records of student disciplinary actions and protest activities within 72 hours. Harvard has condemned the government’s action as unlawful, emphasizing the invaluable contributions of its international community and warning that such measures threaten academic freedom and the future of higher education in the U.S.

Tech — BYD Under Pressure 

Bloomberg

The recent collapse of two major BYD dealership groups in China—Xingqi Group in Liaoning and Qiancheng Holdings in Shandong—highlights the mounting financial distress in the country’s automotive retail sector, even for dealers selling China’s top car brand. These closures, which have left hundreds of customers without service or recourse, are symptomatic of broader challenges: a fiercely competitive market, a rapid shift to electric vehicles (EVs), and a slowdown in consumer spending have led to high inventory levels and shrinking service revenues. BYD’s rollout of new advanced driver assistance technology forced dealers to clear out older stock through aggressive price cuts, deepening their financial woes as inventory at BYD outlets surged to among the highest in the industry. Nationwide, thousands of dealerships have shuttered amid a relentless price war and tightening credit, with many more facing losses or capital crunches, underscoring that even market leaders are not immune to the sector’s structural pains.

Market —  G-7 Warns of “Excessive Imbalance” In Global Economy 

Bloomberg

Finance ministers and central bank governors from the Group of Seven (G-7) nations have pledged to address “excessive imbalances” in the global economy, a move widely interpreted as targeting China’s state-driven economic practices, though the final communique omitted explicit mention of the country. The G-7 officials emphasized the need for a coordinated approach to counteract “non-market policies and practices” that undermine international economic security, and called for analysis of market concentration and supply chain resilience. The statement also highlighted concerns over the surge in low-value international shipments—often from Chinese retailers—which can strain customs systems and facilitate illicit trade. Alongside economic issues, the G-7 condemned Russia’s ongoing war in Ukraine and signaled readiness to intensify sanctions if a cease-fire is not achieved, reaffirming their commitment to keep Russian sovereign assets frozen until Moscow ends its aggression and compensates Ukraine. Despite underlying disagreements over tariffs and language on Russia, the group presented a united front in seeking a more balanced and transparent global economic system.

Society — OpenAI’s Plan to Kill the iPhone

Bloomberg

Jony Ive, the legendary former Apple design chief credited with shaping the iPhoneand other iconic products, has joined forces with OpenAI in a $6.5 billion deal that will see his hardware startup, io, acquired and merged into the AI giant.Ive and OpenAI CEO Sam Altman are betting on the creation of a groundbreaking family of AI-powered devices that could redefine how people interact with technology, aiming to move users “beyond screens” and potentially disrupt the smartphone’s dominance. Despite the excitement and anticipation surrounding this Silicon Valley partnership, industry observers note that it will be far more difficult for OpenAI and Ive to deliver a truly revolutionary device than for Apple to maintain its iPhone supremacy by integrating advanced AI into its existing ecosystem, given Apple’s vast manufacturing expertise, entrenched user base, and established supply chains. While the collaboration has energized both companies and stoked speculation about a major technological shift, the challenge of convincing users to adopt a new category of AI hardware—and overcoming Apple’s formidable “lock-in” effect—means the odds are long for this ambitious attempt to “kill the iPhone.”

The Daily Spark 

While tariffs on China have declined from 145% to 30%, the headwind to corporate earnings from tariffs remains significant because of the overall jump in the average tariff rate from 3% in January to 18% today, see the first and second chart below. We are already beginning to see weakness in the economic data with a significant decline in the earnings revisions ratio since Liberation Day, see the third chart.

Song Recommendation — Falling Apart (Morgan Wallen) 

Quote of the Day 

“There is always some madness in love. But there is also always some reason in madness.” ― Friedrich Nietzsche