Greetings N2K reader!

This week’s world famous news haiku competition™ is about new limits for a rent algorithm that prosecutors say lets landlords drive up prices. Send me your entry — to our spiffy new email address, haiku at cheddar dot com — by noon ET on Thursday for consideration by your Cheddar peers! Also…

Don’t miss the Sunset gift guide!

Need the perfect gift? Sunset’s 2025 Holiday Gift Guide has you covered! With beautifully curated selections, there’s something for everyone on your list. Cozy up in the luxurious Flock Robe ($165) or add charm to any table with the Otto Napkin ($20). For the chefs, the Little Zipper Pot Holder ($35) is as stylish as it is practical. Nature lovers will adore the Case Study® Ceramics Birdhouse ($75) or the stunning Ceramics Small Cylinder with Stand. Want to give experiences? Share joy with the Sunset Box ($69.99) or a subscription to Sunset Magazine ($29.95). Shop now for thoughtful, unique gifts!

And now for something completely different!

—Matt Davis, Need2Know Chedditor

News You Need2Know

• Costco sues to recover tariff payments

• Disney sets 2026 deadline to appoint new CEO

  • Disney $DIS is on a mission to address its CEO suc …

  • As his contract ends in December 2026, Iger aims t …

• Is a December cut the Fed’s holiday surprise?

• From runway to Wall Street: AeroMexico’s CEO on IP …

• Elon Musk discusses AI, investments, and immigrati …

• Poll of the day: Is Elon Musk “making more than he …

What’s the stock market up to, eh?

$SPX ( ▲ 0.59% ) $DJI ( ▲ 0.06% ) $NDX ( ▲ 0.97% )

Companies mentioned in today’s newsletter

$COST ( ▼ 0.36% )  $DIS ( ▼ 1.48% )  $TFC ( ▼ 1.85% )  $REVRQ ( 0.0% )  

Costco sues to recover tariff payments

Costco $COST ( ▼ 0.36% ) (where I’m an executive member, btw…and where I like the rotisserie chicken) is taking legal action against the Trump administration's tariffs, filing a lawsuit to demand a refund on duties imposed under the International Emergency Economic Powers Act (IEEPA). The retailer argues that the tariffs, implemented through a presidential executive order, are unlawful. In its filing, Costco claims, “Because IEEPA does not clearly authorize the president to set tariffs... the Challenged Tariff Orders cannot stand and the defendants are not authorized to implement and collect them.”

The lawsuit comes as various companies challenge the sweeping tariffs enacted during Trump’s presidency. Since their imposition, importers have paid nearly $90 billion, with the government collecting $205 billion in total tariffs through late October.

Although the scope of Costco’s financial losses due to the tariffs has not been disclosed, the company noted significant impacts on its imports, which include many fresh food staples. In a May earnings call, Chief Financial Officer Gary “Lite” Millerchip highlighted that products imported from China comprised about 8% of Costco's U.S. sales. Despite these challenges, he emphasized that Costco had chosen not to increase prices on key items like pineapples and bananas to “make sure that we're protecting the member." Which I appreciate.

Costco now joins companies like Revlon $REVRQ ( 0.0% ) and Kawasaki in seeking tariff refunds. The Supreme Court is likely to rule on the legality of the tariffs soon.

Song of the Day: Aerosmith with Yungblud, ‘My Only Angel’

Aerosmith and Yungblud’s (aka English genre-melder Dominic Harrison, who was born in 1997…) single “My Only Angel” blends energetic rock with Joe Perry’s iconic guitar work. Praised for its catchy chorus, it’s a fresh departure for Aerosmith and a modern rock intro for Yungblud fans. A commercial hit, it debuted at #1 on the Hard Rock Songs chart. You can’t help wondering when Stephen Tyler is going to start looking older than Yungblud, though.

Disney sets 2026 deadline to appoint new CEO

Disney $DIS ( ▼ 1.48% ) is on a mission to address its CEO succession plan by announcing Bob Iger’s replacement by early 2026. The move comes after Iger’s unexpected return to the top position in 2022 following Bob Chapek’s departure, after Iger, let’s say…knifed him in the back in the Battle of the Bobs™.

As his contract ends in December 2026, Iger aims to work closely with the upcoming CEO, ensuring a seamless handover. If it’s anything like last time around it’s possible, of course, that the new person might not make it through that “close working relationship” with their job.

Currently, the frontrunners for the coveted role are Disney Parks head Josh “Watch your back” D’Amaro and TV executive Dana “Watch your back, also” Walden. D’Amaro has been praised for his leadership in facilitating the growth of Disney Parks and cruises. Meanwhile, Walden, who is responsible for Disney Entertainment, brings a wealth of experience in television and streaming services. Both have already showcased their strategic visions to Disney’s board.

To maintain stability, Disney has extended contracts for key leaders like the CFO and HR head until 2027–2029. Iger once mused on running for president, to give you an idea of the size of the man’s ego.

Quote of the Day

Is a December cut the Fed’s holiday surprise?

The holiday shopping season is underway, and with it comes big questions about the consumer, inflation, and the Federal Reserve. Truist’s $TFC ( ▼ 1.85% ) Mike Skordeles, noted that the consumer’s health is "challenged, definitely." He described a "two-speed economy" where the high end is doing well, but the midline and lower end are "still spending, but not spending at the same pace." Consumers are also "extremely selective," focusing on value.

Regarding the 2.2% GDP growth forecast, Mike highlighted key drivers: stability in tariffs, a "rather large boost in incomes" from tax refunds in Q1 2026 — roughly the size of another STIMI check — and "large marginally lower borrowing costs as we go through the year."

On the prospect of a December Fed rate cut, Mike pushed back on aggressive market odds. He said that while lower rates "do help consumers and businesses," there's a worry about "additional inflation based on tariffs as we move forward." Therefore, the 80%+ odds seen in the market might be "a little bit overly aggressive. It’s probably closer to a toss-up," he said. Ultimately, whether the cut happens in December or January, he concluded, "it's probably not meaningful for markets."

Grinchy, Mike. Grinchy.

Should you check your 401(k) today?

👍️ 

Yep.

From runway to Wall Street: AeroMexico’s CEO on IPO

Andrés Conesa, CEO of AeroMexico, is celebrating the airline’s return to the public market with an IPO on the New York Stock Exchange. "It closes one chapter and it's time we start another one," Conesa said, expressing pride that the company is now "part of only the best companies trading."

The move marks a significant strategic decision, as the new listing provides a clear set of benefits. Conesa highlighted that being public on the NYSE "opens new sources of capital that's really important," and "forces you to be on top in terms of corporate governance, which is key." Beyond capital, he also noted the importance of visibility in recruiting: "It helps also to attract and retain talent."

Addressing industry challenges in 2025, Conesa emphasized the company's resilient strategy. He stated, "Basically what we have in in the airline is flexibility." The focus remains on a less cyclical customer base, as "we are again concentrated on the corporate and the medium to high-end luxury." Looking ahead, the CEO is optimistic: "For 2026 we're expecting a better outlook," he said.

Elon Musk discusses AI, investments, and immigration on podcast

Just two weeks after being slammed by Billie Eilish as a “F—ing Pathetic P—- B—-h Coward” for hoarding money while nearing trillionaire status, Elon Musk has done some positive softball press a thought-provoking two-hour interview on Nikhil Kamath’s WTF Podcast, sharing his insights on the future of work, AI, investments, and immigration.

Musk’s predictions for the next 10–20 years involve a “post-work” era enabled by AI and robotics. “My prediction is that, in the future, working will be optional. Advances in AI and robotics will bring us to a point where working is optional… People can play this back in 20 years and say it was wrong, but I think it will be correct,” Musk said.

He didn’t mention the loss of income that could come alongside that prediction. Then again I don’t imagine a loss of income is something that worries him too much.

Addressing fears surrounding “evil” AI, Musk emphasized the importance of instilling positive values into artificial intelligence. “There’s some danger… that it can be potentially destructive. Pursuing truth, appreciation of beauty, and having curiosity are the three most important things for AI,” he said.

Musk also praised the contributions of Indian talent to the United States. “America has benefitted immensely from talented Indians… My direct observation is there is always a scarcity of talented people,” he remarked. Though pro-immigration, he acknowledged flaws in systems like the H-1B visa program, urging “refinement” rather than elimination.

For aspiring entrepreneurs, Musk advised focusing on societal contributions over financial gain: “Be a net contributor to society… If you focus on providing useful products and services, money will come naturally,” he said. He reinforced the importance of creating value, saying, “Making more than you take — that’s what really matters.”

Let us know what you think of Mr. Musk’s interview in today’s poll. 👇🏻

Poll of the day: Is Elon Musk “making more than he takes?”

Poll of the day: Y’all aren’t buying Black Friday

We asked: Did you spend more money on Black Friday this year than last year?

You answered:

⬜️⬜️⬜️⬜️⬜️⬜️ Heck yes. I spent so much more, and I'm proud to say so. (26) ⬜️⬜️⬜️⬜️⬜️⬜️ I did spend more, but only because an AI bot told me to. (9)

 🟨⬜️⬜️⬜️⬜️⬜️ I did not spend more because I am a Gen Xer or Millennial with an arts degree, and the robots ate my job and I am living back at my parents' house now. I would splurge on some tranquilizers, but I don't have insurance. (43)

🟨🟨🟨🟨🟨⬜️ Eh, I spent about the same as last year. (211)

🟩🟩🟩🟩🟩🟩 I'm sorry, what? There was some sort of retail event this past week? (224)

🟨🟨⬜️⬜️⬜️⬜️ I think people are more than their spending habits and consumption choices. And that's why I read N2K. For the haikus. (80)

⬜️⬜️⬜️⬜️⬜️⬜️ No, because I already spent $800 taking a small army of children to see "Zootopia 2." (10)

603 Votes

via @beehiiv polls

Need2Know is covered by Cheddar’s Terms of Service.