Today's News You Need2Know

• U.S. economy shrinks 0.3%

• Self-driving tech coming to your car soon

• 'Rocky Horror' gets 4k treatment

• We toured the new Partners Coffee factory!

• UPS Plans to Make 20,000 Job Cuts

Companies mentioned in today’s newsletter

$SPX ( ▲ 0.0% )  $GOOGL ( ▲ 0.21% )  $TM ( ▲ 1.16% )  $TSLA ( ▼ 2.33% )  $DIS ( ▼ 0.81% )  $UPS ( ▼ 0.57% )  $AMZN ( ▲ 0.19% )  

U.S. economy shrinks 0.3%

As George from “Seinfeld” would say, there’s nothing more terrifying than shrinkage.

So take cover, Costanza! The U.S. economy contracted by 0.3% in the first quarter of the year, marking its first decline in three years.

Analysts attribute the downturn to a giant squid gumming up the works of the global economy President Donald Trump’s trade policies (sorry, I’m just so bored of this particular thread of news, aren’t you?), which triggered a surge in imports as businesses scrambled to avoid impending tariffs. The surge — imports grew at a remarkable 41% — had a significant negative impact on economic growth, shaving five percentage points off the GDP. Additionally, consumer spending slowed from 4% growth in late 2024 to just 1.8% growth early in the year, and federal government spending fell sharply by 5.1%.

The stock market reflected the unease created by these economic challenges, with major indices like the S&P 500 $SPX ( ▲ 0.0% ) experiencing declines yesterday on the news of the numbers. Inflation also remains a pressing concern. The Federal Reserve’s preferred metric for inflation, the PCE price index, rose at an annual rate of 3.6% — far above the Fed’s target of 2%.

While the surge in imports is expected to ease in the second quarter, economists warn that Trump’s erratic trade policies and the substantial tariffs on China could dampen long-term growth. Stagflation — a giant stag, gumming up the the works of the global economy stagnant growth paired with rising inflation — is a growing concern, leaving the Federal Reserve in a precarious position as it balances interest rates and growth stability.

Self-driving tech coming to your car soon

Good news! Pretty soon you’ll be able to take a nap while you’re driving a Corolla — but on purpose, not because you’re exhausted from working 18-hour days to pay for your family’s basic needs. Even better, right?

In a groundbreaking move, Alphabet-owned $GOOGL ( ▲ 0.21% ) Waymo and Toyota $TM ( ▲ 1.16% ) have struck a partnership aimed at integrating autonomous driving technology into personal vehicles. It seeks to leverage Waymo's robotaxi technology alongside Toyota's vehicle expertise to develop next-generation driver assistance and autonomous features for individually-owned cars.

This isn't Waymo's first foray into collaborative ventures, but it represents a significant evolution as traditional automakers increasingly shift focus towards developing autonomous systems for personal use, rather than solely concentrating on ride-hailing fleets.

The announcement arrives amid a surge in Waymo’s commercial operations, which have now expanded to cover key cities like San Francisco, Los Angeles, Phoenix, and Austin, serving 250,000 paid rides per week.

Waymo’s plans with Toyota come when competitors like Tesla $TSLA ( ▼ 2.33% ) are ramping up efforts in autonomous technology. While Tesla CEO Elon Musk recently criticized the cost-efficiency of Waymo’s robotaxis, few takes him seriously when he talks about “cost-efficiency” since his U.S. operation focused on it accompanied a 6% rise in government spending. Tesla is also set to launch its own fully autonomous rides in Austin with its Model Y vehicles equipped with upgraded self-driving systems pretty soon.

Would you like a self-driving car? Let us know in today’s poll! 👇🏻

Today on the ‘gram:

Post of the day: clickholebot

'Rocky Horror' gets 4k treatment

My parents went to see the original stage production in London before conceiving me, which explains a lot.

Fans of “The Rocky Horror Picture Show” are gearing up to do the time warp again as the cult classic celebrates its 50th anniversary with a brand-new 4K Ultra HD restoration. Spearheaded by the Walt Disney $DIS ( ▼ 0.81% ) Studios restoration team, the 10-month project delivers a visually stunning, immersive experience, complete with a newly mixed Dolby Atmos audio track and the fully restored original mono soundtrack for purists.

“The Rocky Horror Picture Show” has defied expectations to become a cornerstone of global pop culture. Producer Lou Adler reflected on the milestone, telling the Hollywood Reporter, “What began as a small, rebellious project has become a global celebration of individuality, community, and creative freedom.”

The remaster, which will include a Blu-ray release and feature a special anniversary logo, coincides with ongoing weekly screenings of the movie around the world. Director Jim Sharman’s adaptation of Richard O’Brien’s stage musical follows actors Barry Bostwick and Susan Sarandon as they navigate the bizarre world of Dr. Frank-N-Furter (played by Tim Curry), a cross-dressing mad scientist who identifies as a "sweet transvestite.”

Would you believe that the film remains controversial half a century after its release?

Should you check your 401(k) today?

👎🏻

No.

We toured the new Partners Coffee factory!

Stepping into Partners' new Williamsburg Roastery is to immerse yourself in a world where coffee rhymes with community (if you’ve drunk enough of it, I guess).

"We started roasting coffee in 2012 out of our original cafe and roastery in Williamsburg, Brooklyn," explains Sam Klein, with Partners, "servicing our own cafes as well as wholesale accounts, retail customers, grocery customers, and across the country as well."

Now they need a bigger boat — I mean Roastery. They need a bigger roastery.

Partners is not just about serving a great cup of coffee; it’s about fostering relationships that extend from New York City’s bustling streets to the remote farms where their beans originate. Klein's role involves forging crucial connections across the coffee industry's intricate supply chains. "In many cases, our menu comes from supply chains that we've bought coffee from for 10-plus years," he said, which is actually only half as long as I’ve been a so-called “journalist.” These longstanding relationships ensure the quality and ethical sourcing of their coffee.

However, the coffee industry faces significant challenges. Klein points out, "Five years ago, the industry was talking about the coffee price crisis. Now we're sort of looking at a different issue where the price hasn't just increased, but it's increased pretty dramatically in a short period of time." These price hikes, coupled with something called “climate change” affecting production, make sustainability a key focus. "The issue has been climate focused," Klein says, noting the impact of "persistently really hot, really dry weather in Brazil."

Despite these challenges, Partners remains committed to quality and innovation. Check out the video to go inside!

Quote of the Day: Lou Adler

UPS Plans to Make 20,000 Job Cuts

UPS said will cut 20,000 jobs this year from its 490,000-strong workforce as part of a long-term cost-reduction plan. The company said “macroeconomic uncertainty” prevents it from updating its forecasts for revenue and profits for 2025, and many of its customers are shipping fewer goods in light of the tariffs. The firm is also about to halve the volume of packages it delivers for Amazon because many such deliveries aren’t profitable.

My main question is whether they might let me have one of those cool vans at some point, since they don’t appear to need them to deliver packages any longer. Imagine driving along with the door open. Eh?

Poll of the Day: Do you want a self-driving car?

Results from Wednesday’s poll: You’re not buying the dip

The stock market is down 7% since inauguration day. We asked if you were optimistic about it going up soon. 80% of you are pessimistic:

🟨⬜️⬜️⬜️⬜️⬜️ So I'm optimistic it's going to start going up pretty soon (98)

 🟩🟩🟩🟩🟩🟩 So I'm pessimistic and think it's gonna go down more before it goes up (414)

512 Votes — via @beehiiv polls