Break Out the (Finger Lakes) Champagne

Yancey’s fancy Champagne Cheddar Cheese retails for just $7.98. “Kissed” by “Finger Lakes Champagne,” the cheese is paying scant regard to the concerns of French Champagne makers, who insist that Champagne must come from the Champagne region of France — or English Cheddar makers, who likewise love to insist that Cheddar must come from a place called Cheddar. Still, it might well be the closest any of us get to a real taste of French Champagne in the coming months if President Donald Trump’s threat to impose a 200% tariff on Champagne goes ahead. Zut alors!

Meanwhile, today’s cheddlines you Need2Know are all strictly legitimate and come from where they’re supposed to without skirting any official definitions; I promise. I would also like to apologize to reader Kaira, who got in touch yesterday to say this:

Which is in fact…not true. The song was a collaboration between the two groups, as the single’s 12” single cover shows (below). But it’s fair to say that I might have given top billing to the supporting act in yesterday’s email when I was describing who sang the lyric, “a body like Arnold with a Denzel face,” and for that, I AM sorry.

In related and somewhat disturbing news, a founding member of En Vogue also told the New York Times yesterday that she’s been living in her car for the last three years. It’s like I’m channeling the zeitgeist here without even realizing. Now I suggest we all watch the video of the song before we dive into today’s news. There’s not a weak voice in the group!

Today's Cheddlines You Need2Know

• Wall Street tumbles as trade war escalates

• SpaceX, NASA delay astronaut rescue

• Can Intel’s new CEO stop the rot?

• 'Vanderpump Hotel' comes to Las Vegas

• Ohtani bringing MLB energy to Fortnite

I’ll sign off here with a quote from En Vogue founder Dawn Robinson:

“Saying that I’m living in my car and actually not living in my car would be a stupid publicity stunt. But this is not publicity.” 🥂

No. It is not.

—Matt Davis, Need2Know Chedditor

P.S. EU alcohol stocks have reacted badly to 200% tariff threats from the U.S., on our ‘gram.

Quote of the Day

Should You Check Your 401(k) Today?

👎

(nope…see below)

Companies mentioned in today’s newsletter

$SPX ( ▼ 4.84% ) , $BA ( ▼ 10.47% ) , $SPACEX.P ( 0.0% ) , $INTC ( ▲ 2.05% ) ,$AMZN ( ▼ 8.98% ) , $CDNS ( ▼ 6.05% ) , $TSM ( ▼ 7.64% ) , $AAPL ( ▼ 9.25% ) , $BRCM ( 0.0% ) , $NVDA ( ▼ 7.81% ) , $CZR ( ▼ 9.52% )  

Wall Street tumbles as trade war escalates

Wall Street’s sell-off accelerated yesterday after President Donald Trump upped the stakes in his trade war by threatening huge taxes on European wines and alcohol. Not even a double-shot of good news on the U.S. economy could stop the bleeding.

The S&P 500 $SPX ( ▼ 4.84% ) was down 1.2% in afternoon trading, caught in a battering stretch that's driven the index roughly 10% below its record, which was set just a few weeks ago. Wall Street calls such steep drops a “correction.”

The turbulence is a result of uncertainty about how much pain Trump will let the economy endure through tariffs and other policies in order to reshape the country/world as he wants. The president has said he wants manufacturing jobs back in the United States, along with a smaller U.S. government workforce and other fundamental changes.

Trump's latest escalation came Thursday when he threatened 200% tariffs on Champagne and other European wines, unless the European Union rolls back a “nasty” tariff announced on U.S. whiskey. The European Union unveiled that move on Wednesday, in response to U.S. tariffs on European steel and aluminum.

From the New York Times:

U.S. households and businesses have already reported drops in confidence because of all the uncertainty about which tariffs will stick from Trump’s barrage of on-again, off-again announcements. That’s raised fears about a pullback in spending that could sap energy from the economy. Some U.S. businesses say they’ve already begun to see a change in their customers' behavior because of the uncertainty.

A particularly feared scenario for the economy is one where its growth stagnates but inflation stays high because of tariffs. Few tools are available in Washington to fix what's called “stagflation.” If the Federal Reserve were to cut interest rates to boost the economy, for example, that could also push inflation higher.

Good news came on both those economic fronts Thursday.

One report showed inflation at the wholesale level last month was milder than economists expected. It followed a similarly encouraging report from the prior day on inflation that U.S. consumers are feeling. However, “the question for markets is whether good news on the inflation front can make itself heard above the noise of the ever-changing tariff story," said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.

A separate report, meanwhile, said fewer U.S. workers applied for unemployment benefits last week than economists expected. It’s the latest signal that the job market remains relatively solid overall. If that can continue, it could allow U.S. consumers to keep spending, and that’s the main engine of the economy.

While few are predicting a recession, particularly with the job market remaining relatively solid, recent reports have shown a souring of confidence among U.S. consumers and companies. Privately, many CEOs are questioning the tariff strategies but would need to see the stock market fall by 20% to criticize the president publicly, the Wall Street Journal reported on Wednesday.

SpaceX, NASA delay astronaut rescue

In the vast, quiet expanse of space, two NASA astronauts, Suni Williams and Butch Wilmore, find themselves in a peculiar yet challenging situation. Originally deployed for what was supposed to be an eight-day mission on June 5, 2024, their stay at the International Space Station (ISS) has now extended beyond nine months. The astronauts — seasoned and trained to expect the unexpected — have adapted to their extended stay, engaging in ongoing station maintenance and scientific experiments.

Suni and Butch were scheduled to return on a Boeing $BA ( ▼ 10.47% ) spacecraft, but safety concerns regarding the vehicle have prolonged their stay in space. This is where SpaceX $SPACEX.P ( 0.0% ) stepped in, but yesterday’s planned launch from Florida's Cape Canaveral Space Force Station, intended to send a replacement crew to the ISS, was postponed due to a hydraulic issue on the ground.

The Falcon 9 rocket's mission was critical not just for sending four new crew members to orbit but also for clearing the way for the two stranded astronauts’ journey back to Earth. Despite the setbacks and extended duration away from Earth, both astronauts have maintained a positive outlook on their situation. I sorta wish they would have a barnstorming row up there, just for the drama, but apparently that’s not how astronauts work.

From @cheddar

Can Intel’s new CEO stop the rot?

Intel has appointed Lip-Bu Tan as its new CEO. While Tan may not be a household name to the general public, his reputation as a consistent underdog within the tech industry precedes him. Now, Tan faces the colossal task of steering Intel back to its former glory.

Once synonymous with the very silicon that powered…Silicon Valley, Intel has encountered rough waters as of late, navigating stiff competition and internal challenges. Yet, Tan’s track record suggests that his underdog strategies and deep industry connections could be the ingredients Intel needs for a rejuvenation. His appointment has already shown positive market reactions, with Intel shares surging by more than 10% $INTC ( ▲ 2.05% ) following the announcement.

Born in Malaysia, raised in Singapore, and now an American citizen, Lip-Bu Tan's journey to the pinnacle of Silicon Valley is rather inspiring. Holding a background in nuclear engineering from the Massachusetts Institute of Technology and an MBA from the University of San Francisco, Tan founded Walden International in 1987. Walden, named after Henry David Thoreau’s testament to living unconventionally, became a vehicle for Tan’s unorthodox investment strategies that often ran counter to the prevailing winds.

Tan’s philosophy was simple – he believed that small teams of engineers with visionary chip design ideas could take on the incumbents of the silicon industry. This belief led him to back hundreds of startups, including notable investments like Annapurna Labs, which was later acquired by Amazon $AMZN ( ▼ 8.98% ) for $370 million, forming the backbone of Amazon's in-house chip division. As CEO of Cadence Design Systems $CDNS ( ▼ 6.05% ) from 2009 to 2021, Tan demonstrated his exceptional leadership and strategic insight, focusing on providing sophisticated design software while forming a strong partnership with Taiwan Semiconductor Manufacturing Co. (TSMC) $TSM ( ▼ 7.64% ) . Under his stewardship, Cadence’s stock appreciated by an astonishing 3,200%, carving its way into being a pivotal tool for the industry's giants, including Apple $AAPL ( ▼ 9.25% ) , Broadcom $BRCM ( 0.0% ) , and others moving towards in-house AI chip design.

With the tech world at a pivotal juncture, particularly in AI and chip design, Lip-Bu Tan’s underdog spirit and strategic acumen may be exactly what Intel needs to navigate the challenges ahead. Or, you know, he could sell the company to Nvidia $NVDA ( ▼ 7.81% ) .

'Vanderpump Hotel' comes to Las Vegas

Acclaimed reality TV star Lisa Vanderpump is teaming up with Caesars Entertainment $CZR ( ▼ 9.52% ) to introduce a one-of-a-kind hospitality experience: The Vanderpump Hotel. Set to grace the iconic Las Vegas Strip in early 2026, the venture promises to be a game-changer in the luxury boutique hotel sector. Or, at the very least, it promises to be something.

Located at the heart of Las Vegas Boulevard and Flamingo Road, The Cromwell hotel will undergo an extensive transformation to become The Vanderpump Hotel. The project marks Vanderpump's newest venture in Las Vegas, following the success of her restaurant endeavors with Caesars Entertainment, including the Vanderpump Cocktail Garden.

Vanderpump, at 64, is embracing this new challenge with open arms. Unlike her previous projects, which started from the ground up, this endeavor involves reimagining a pre-existing structure. "It's a very different challenge because it's an existing building," Vanderpump said. The ambition is to refurbish the property while retaining the boutique hotel's intimate essence and distinctive character, aligning seamlessly with the Vanderpump brand's reputation for sophistication and charm.

In partnership with her design partner, Nick Alain, Vanderpump plans to bring her unique flair to the 188-room property, which will include 19 luxurious suites. Their goal is to craft spaces that echo the brand's signature style, fostering an environment of "attainable luxury,” which I believe is an oxymoron…or maybe I’m the moron. You choose.

Ohtani bringing MLB energy to Fortnite

About 1 million people are playing Fortnight as you read this story. Now the worlds of Major League Baseball and video gaming are set for an epic collaboration, as the renowned Los Angeles Dodger Shohei Ohtani joins Fortnite's Icon Series. Ohtani, a three-time unanimous MVP, is the first MLB player to make an appearance in the wildly popular game. Beginning March 17, fans will have the chance to outfit their characters in gear inspired by the superstar.

Ohtani's influence on the game extends beyond his skills on the real-world field to dazzle in digital form. Donning his Los Angeles Dodgers uniform, Ohtani's Fortnite outfit will be available in three styles: the classic home whites, the away grays, and a special LEGO style for Lego Fortnite fans. The Samurai Shohei outfit, specially crafted for the 2025 Tokyo Series between the Dodgers and the Cubs, is also grabbing the spotlight. Joining Ohtani in Fortnite is 'Decoy,' his beloved bobblehead companion inspired by his real-life pet dog. Of course he is! Woof!