What’s in Bloom – Third Week of February 2025

By Claire Madden on February 20, 2025

Weekly data-driven insights on the markets and economy

1. Apple’s new budget iPhone Apple announced the new iPhone 16e on Wednesday, priced at $599 and set to go on sale later this month. The iPhone 16e, which is priced lower than Apple’s main iPhone models, features the A18 chip, Face ID scanner, and a modern design, making it capable of running the same apps and games as more expensive models. Apple is releasing its new low-cost iPhone as sales have been mixed in recent quarters and the company seeks growth for its most important product category.[i]
2. Microsoft’s quantum leap Microsoft announced Majorana 1, its first quantum computing chip, on Wednesday. After nearly two decades of research, the chip employs eight topological qubits using indium arsenide and aluminum. This development is significant as it represents a major leap in computing power, potentially solving complex problems beyond the reach of classical computers.[ii]
3. Trump’s tariff expansion President Trump announced on Wednesday plans to expand U.S. tariffs to include automobiles, pharmaceuticals, and semiconductors, with duties of around 25% that could increase over time. Trump emphasized that the tariffs are encouraging overseas companies to return to the U.S., while experts warn that pharmaceutical tariffs could drive up drug prices and cause shortages. The impact on semiconductors remains uncertain, but companies like Taiwan Semiconductor, Nvidia, and Apple could be affected.[iii]
4. Homebuilding hurdles U.S. single-family homebuilding fell sharply in January due to snowstorms and freezing temperatures. Higher costs from tariffs and elevated mortgage rates are likely to limit a rebound. President Trump’s trade policy could challenge builders, while higher borrowing costs and tariffs on raw materials are expected to push up building costs and hold back homebuyers.[iv]
5. Nike and SKIMS collaborate Announced on Tuesday, Nike has teamed up with SKIMS to launch a new activewear line called NikeSKIMS, aiming to compete with brands like Lululemon, Alo Yoga, and Vuori. The collection includes apparel, footwear, and accessories, and will debut this spring with a global rollout planned for 2026. This partnership is part of Nike’s strategy to attract more female consumers and regain market share. For SKIMS, the collaboration offers growth opportunities and could strengthen its position ahead of a potential IPO.[v]
6. KFC relocates headquarters Kentucky Fried Chicken (KFC) is relocating its U.S. headquarters from Louisville, Kentucky, to Plano, Texas, as part of Yum Brands’ plan to have two corporate headquarters: one in Plano and the other in Irvine, California. Despite the move, Yum and the KFC Foundation will maintain corporate offices in Louisville and plan to build a new flagship restaurant there. This shift follows a trend of companies moving to Texas for its business-friendly policies. ^[vi]

• [i] Leswig, Kif. “Apple unveils cheaper iPhone 16e powerful enough to run AI.” CNBC, 19 Feb. 2025, https://www.cnbc.com/2025/02/19/apple-unveils-iphone-16e-with-ai-.html. Accessed February 19, 2025.
• [ii] Novet, Jordan. “Microsoft reveals its first quantum computing chip, the Majorana 1.” CNBC, 19 Feb. 2025, https://www.cnbc.com/2025/02/19/microsoft-reveals-its-first-quantum-computing-chip-the-majorana-1.html. Accessed February 19, 2025.
• [iii] Cox, Jeff. “Trump suggests 25% tariffs on autos, pharma and semiconductors that could go even higher.” CNBC, 19 Feb. 2025, https://www.cnbc.com/2025/02/19/trump-suggests-25percent-tariffs-on-autos-pharma-and-semiconductors-that-could-go-even-higher.html. Accessed February 19, 2025.
• [iv] Mutikani, Lucia. “Frigid temperatures chill US single-family homebuilding; tariffs a potential drag.” Yahoo!, 19 Feb. 2025, https://finance.yahoo.com/news/us-single-family-housing-starts-133805445.html. Accessed February 19, 2025.
• [v] Fonrouge, Gabrielle. “Nike teams up with Kim Kardashian shapewear brand Skims as it looks to reach more women.” CNBC, 18 Feb. 2025, https://www.cnbc.com/2025/02/18/nike-teams-up-with-skims-to-launch-new-brand.html.Accessed February 19, 2025.
• [vi] Lucas, Amelia. “KFC moves U.S. headquarters from Kentucky to Texas.” CNBC, 18 Feb. 2025, https://www.cnbc.com/2025/02/18/kfc-moves-us-headquarters-from-kentucky-to-texas.html. Accessed February 19, 2025.