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Donald Trump has a message for critics who think turning the U.S. government into a major stockholder of Intel is a “socialist” move: More is coming.“I will make deals like that for our Country all day long,” the president posted on Truth Social after critics piled on, adding later about future ownership stakes: “I want to try and get as much as I can.”One possible target: defense contractors, whom Commerce Secretary Howard Lutnick told CNBC Tuesday were ripe for the picking, given the U.S. government is a big customer.Free-market conservatives were already wary of Trump’s tendency to interfere in corporate decision-making by, for example, telling Apple where it should make iPhones, or even demanding a cut of Nvidia’s sales of chips to China. But the Intel move is a startling defiance of Republican orthodoxy that says governments shouldn’t try to pick corporate winners and losers and risk messing things up as owners by rewarding executives for politically smart but financially stupid decisions.The U.S. government is getting a 10% stake in Intel through the conversion of billions in previously granted government funds and pledges, making it one of Intel’s largest shareholders.“If socialism is government owning the means of production, wouldn’t the government owning part of Intel be a step toward socialism?” Sen. Rand Paul (R-KY) said in a post on X. “Terrible idea.”Scott Lincicome, a Cato Institute trade expert, says Intel could end up making decisions now to please Trump even if they’re impractical, say, by going ahead with plans to open a long-promised chipmaking factory in Ohio. And even short-term gains from government ownership, such as more companies buying Intel semiconductors, will hurt business in the end by saddling those companies with inferior chips.“Intel might simply gain customers from folks that are looking to stay on Trump’s good side,” he said. “But innovation requires ruthless competition, an endless drive for an advantageand now they might accept a disadvantage because they need the political win.”Many Republicans remained silent on the issue, prompting others to suggest they are free-market hypocrites.“For so many of my self-described true conservatives, you’re going to have to explain to me how this reconciles with true conservatism and true free-market capitalism,” Sen. Thom Tillis (R-NC) told CBS in an interview. “I don’t see it.”Early last year, the Biden administration agreed to provide Intel with billions of dollars in funding under the CHIPS Act for it to build semiconductor manufacturing factories around the country, part of a plan to produce 20% of the world’s most advanced chips in the U.S. by 2030, up from zero at the time.Trump argues that he got the Intel stake for free by converting $11.1 billion of funding into the equity stake. He also notes that Intel shares shot higher after he struck the deal Friday, handing a big win to U.S. taxpayers.“I love seeing their stock price go up, making the USA RICHER, AND RICHER,” Trump posted Monday morning before the stock trading began. “More jobs for America!!! Who would not want to make deals like that?”The price of Intel stock fell slightly both Monday and Tuesday, and investors have reason to be cautious.In a filing to its investors after the deal was announced, Intel warned that it may lose overseas customers reluctant to buy from a U.S. government-owned business. The company has lost more than $22 billion since the start of 2023 after largely missing out on the frenzy surrounding artificial intelligence.James Secreto, a former Biden administration official who helped hammer out the CHIPS Act grants, said a falling stock price is a big danger given Trump’s tendency to measure his success and failure by gyrations in the public market and his willingness to jawbone companies to do things to help him politically.“The Trump administration now owns Intel’s success or failure,” said Secreto, former Commerce Secretary deputy chief of staff. “The next question is how far will the U.S. government go to defend its equity position?He called the Intel stock purchase a “bridge too far” even for Democrats who believe government help is needed occasionally. “For the sake of national security, we still need Intel to win on performance, not politics,” Secreto said.That Trump would be labeled a “socialist” by members of his own party is ironic, given that he has long wielded that term against his opponents.Yet in some ways, the Intel move fits a pattern.Trump has erected the highest tariffs in decades, a trading strategy that his party has long rejected, and has tried to influence corporate decisions the GOP used to say were best left to business owners. In addition to telling Apple not to shift production to India, he has gotten Coca-Cola to change ingredients and warned Walmart not to raise prices.There have also been a series of moves that will directly benefit or hurt the government, depending on how businesses perform.In June, Trump struck a deal approving Nippon Steel’s takeover of U.S. Steel in exchange for a “golden share” that essentially gives the U.S. government veto power to ensure national security interests are protected against cutbacks in steel production. In July, he spent $400 million of taxpayer money on MP Materials stock to make the U.S government the biggest owner in the Las Vegas rare earths miner. Then, earlier this month, came his deal with Nvidia and AMD to give the U.S. government a 15% cut of revenue from selling certain chips to China.A White House official who spoke on condition of anonymity to describe internal deliberations said the deals with Intel, Nvidia, and U.S. Steel are seen as one-offs, necessary moves because the companies have outsized importance to the country’s national security. The source likened the deals to the government’s departure from free market principles when it limits American aerospace companies from selling fighter jets to countries like China.Some conservatives aren’t buying it.“This isn’t about funding innovation,” said influential conservative radio host Erick Erickson on Friday. “It’s a paradigm shift towards socialism.”In addition to Lutnick’s comments about targeting defense contractors, Trump’s top economic adviser has also hinted about what is likely coming next. He said the president is interested in setting up a sovereign wealth fund in which federal government would invest in an array of companies.“There’ll be more transactions, if not in this industry then other industries,” said Kevin Hassett, the director of the National Economic Council.One prominent politician did voice support for the Intel deal, but it more likely hurts than helps Trump’s cause with Republicans.“Taxpayers should not be providing billions of dollars in corporate welfare to large, profitable corporations like Intel without getting anything in return,” said Vermont enator Bernie Sanders, a self-described democratic socialist and Trump antagonist. “The taxpayers of America have a right to a reasonable return on that investment.”AP reporter Michelle L. Price contributed from Washington. By Bernard Condon, AP Business Writer
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E-Commerce
Cracker Barrel released a new logo earlier this month and, to put things lightly, it didnt go over well. The restaurant chain lost nearly $100 million in market value as it faced outrage from across the internet. The backlash was so intense that Cracker Barrel, which operates nearly 660 locations, reversed course less than 10 days later. We thank our guests for sharing your voices and love for Cracker Barrel, the company announced on its social media. We said we would listen, and we have. Our new logo is going away and our Old Timer will remain. Cue the adage, if it aint broke, dont fix it. How has Cracker Barrel stock responded to reversal? The late Tuesday announcement brought a spike in Cracker Barrels stock (Nasdaq: CBRL), with share prices increasing by about 6% through after-hours and into premarket trading Wednesday morning. The shares had already closed up 6.35% after President Trump called on Cracker Barrel to make the change. Unsurprisingly, the White House quickly took credit after Cracker Barrel announced it would bring back its old logo. Corporate rebrands are often not well received Minimalist rebrands have become increasingly common (companies ranging from Yahoo to Intel to to Burberry have rolled out more simplified logos over the years), but backtracking on a new logo so quickly is rare. Still, Cracker Barrel isnt the only American company to do a quick turnaround afterward. Two of the most notable instances took place 15 years ago. First, there was Tropicana, which back in 2009 replaced its iconic straw in an orange logo and distinct topography with a generic glass of orange juice. Customers were very underwhelmed. PepsiCo, its owner during the fiasco, completely undid everything except the orange lid. In 2024, Tropicana underwent another rebrand, this time emphasizing its best features with a retro typeface and bright colors. Then theres Gap, which debuted a new logo in 2010. It lasted for a matter of days before the retailer removed it and began crowdsourcing for an alternative.
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E-Commerce
Massive walls of dust and debris called haboobs that roll through the U.S. Southwest can be awe-inspiring and terrifying, especially for motorists caught in their path.Thunderstorms spawn the phenomenon and can create a wall of dust thousands of feet tall and several miles wide, reaching speeds of 60 mph (97 kph) or more.Here’s what to know. How do haboobs form? Thunderstorms can produce strong downdrafts that hit the ground at 50 to 80 mph (80 to 129 kph) and then spread in all directions, said Sean Benedict, a meteorologist at the National Weather Service’s Phoenix office.The winds stir up loose dust and dirt, including from arid areas and farm fields, that get blown along in front of the approaching storm cell.If thunderstorms don’t keep developing, the dust dissipates. But rain-cooled air in front of a storm can keep pushing warm air upward, generating new storms and more downdrafts, Benedict said.When that happens, the haboob can keep growing, and some travel as far as 100 miles (161 kilometers), he said.“It’s all dependent on whether they’re moving through an area that’s prone to [generating] dust,” said Benedict, noting that there’s a prominent dust corridor between Phoenix and Tucson.Haboobs also can form in arid areas of Nevada, New Mexico, and Texas. It’s unclear whether haboobs will become more frequent Scientists say localized bursts of rain in the U.S. Southwest during the monsoon season in summer have become more intense since the 1970s as the atmosphere heats up due to human-caused climate change.At the same time, it’s raining less often as droughts last longer and some arid areas expand. Climate change increases the odds of both severe drought and heavier storms that could set the stage for more intense dust storms in the future.Benedict said it’s difficult to say whether haboobs will become more frequent. The storms require a specific set of circumstances, and land use, such as farming, can affect how much dust gets picked up, he said.Not all dust storms are haboobs, which are specifically associated with downdrafts from thunderstorms.The National Oceanic and Atmospheric Administration says the Phoenix area experiences one to three large dust storms a year. How to stay safe The National Weather Service issues dust warnings if it anticipates that thunderstorms and high winds moving through dust-prone areas could reduce visibility to a quarter mile or less. That’s especially important when conditions are favorable for clusters of storms, Benedict said.Haboobs can form quickly, catching drivers by surprise, blotting out the sun, and reducing visibility to zero. Experts recommend that motorists pull off the roadways as far as possible, stop their vehicles, and turn off their lights.“People on the roads, when they can’t see anything, they’re just gonna try to follow those taillights in front of them,” and run into parked cars, Benedict said. “If there is an accident, you might not know, and you just get these big pileups. So it’s definitely very dangerous when the visibility drops down that low.” The Associated Press’s climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters, and funded coverage areas at AP.org. By Tammy Webber, Associated Press
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