🌎 Shrinking Economy

The US economy shrank for the first time in three years

The world’s largest economy took a rare drop. A flood of economic data released on Wednesday, showing the US economy shrank for the first time in three years.

Honey, I shrunk the economy

Data from the US Commerce Department painted an ugly picture (for the most part), uncovering the US economy’s first stint of negative growth since Q1 of 2022.

• The US’s gross domestic product—or the value of all the goods and services it produces—fell 0.3%, short of economists’ predictions of a 0.4% growth.

What dragged the GDP down? A massive, unexpected spike in imports. After Trump announced his tariff plans, the number of goods entering the country increased by 41% from the previous quarter as businesses stocked up on inventory.

But… it is worth noting that the Commerce Department subtracts imports from GDP calculations, since they’re money spent on goods made in other countries, not in the US.

It’s not as bad as you think

While a shrinking economy is sure to raise some eyebrows, other data released in the report shows the overall picture isn’t as bad as we might think it is, according to financial magazine Barron’s.

While it’s rare for GDP to dip during a period of expansion, economists say the fundamentals remain solid:

• Consumer spending rose 1.8%, and core growth—measured by real final sales to private domestic buyers—climbed a healthy 3%.

No, the drop doesn’t mean a recession is coming. While the GDP’s dip may fuel some panic, the details point to an economy still humming beneath the surface. As Stephen Miran of the Council of Economic Advisers put it, “There’s a lot of weird numbers in this data,” but they don’t point to a recession.

Tensions boil between Pakistan and India in Kashmir region

We could be on the brink of an East vs. West proxy war. Two days ago, Pakistan claimed it shot down an Indian spy drone in its airspace, the latest escalation in an increasingly volatile conflict between the two countries.

Now, as the US and China get involved, could continued conflicts lead to a broader war?

Developing conflict

Tensions between India and Pakistan have intensified following a deadly terrorist attack on April 22 in the resort town of Pahalgam, where four gunmen killed 26 people, primarily Indian tourists.

• India claims that at least two of the attackers were Pakistani nationals, however, Pakistan disputes any involvement with the shooters.

Following the attack, diplomatic ties have only gotten worse. India suspended a crucial water treaty, cutting off Pakistan’s access to 80% of its irrigation water, and conducted a missile test over the weekend. In response, Pakistan shut its airspace to India and warned of a potential nuclear retaliation if India strikes.

It’s all about territory

The April 22 attack happened in the Indian-controlled mountainous region of Kashmir, where India and Pakistan have fought three wars since the two countries were partitioned from former British India in 1947 (see conflict history).

• The nuclear-armed nations and longtime adversaries both administer a part of Kashmir, but each claims to own the entire region, prompting one conflict after another.

The latest developments come as tensions rise again, giving way for Western and Eastern powers, including the US and China, to show their support for opposing sides.

• Chinese foreign minister Wang Yi said that “China has always supported the Pakistani side” and offered aid to the nation, but later voiced the need for de-escalation, calling for both sides to “exercise restraint.”

• On the other hand, the US “stands strong with India”, as Vice President JD Vance, Secretary of State Marco Rubio, and President Trump pledged their support. The US also urged the two nations to de-escalate, asking them to “maintain peace” and avoid a regional war.

The US and China are unlikely to get too involved: A broader East vs. West war is highly unlikely because neither the US nor China is treaty-bound to intervene, and both want to avoid direct conflict or economic disruption. Not to mention, India and Pakistan's nuclear capabilities are a strong deterrent against full-scale war.

ESA launches satellite to “weigh” the world’s 1.5 trillion trees 

It’ll be at least 10 pounds. Tell me I’m wrong. The European Space Agency successfully launched a groundbreaking satellite designed to measure the weight of the world’s forests and track their carbon storage.

Our planet’s rainforests are often called “the lungs of the Earth”, as they store billions of tons of carbon. However, seeing as there are more than 1.5 trillion trees around the world, it’s almost impossible to know how much carbon they hold.

Until now, that is

The satellite, named Biomass, lifted off from Kourou, New Guinea, on Tuesday. By sometime today, it will make a “series of intricate maneuvers” to deploy a 40-foot-wide mesh reflector to receive data from Earth’s forests.

• The satellite directly measures woody biomass, including trunks, branches, and stems, bypassing impenetrable forest canopies using a 12-meter radar antenna.

Unlike older satellites, which struggled to penetrate the leafy layers, Biomass can see beyond them, getting to the source of where most of the world’s carbon is found.

Why does this matter? During its five-year mission, the satellite will generate yearly maps, giving scientists an unprecedented view of forest health and carbon storage. Scientists hope the data will improve climate models and track deforestation to help achieve the goal of stopping forest loss by 2030.

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Commanders announce $3.7 billion deal to return team to DC

The Washington Commanders are coming home. Commander’s owner, Josh Harris, and DC Mayor Muriel E. Bowser announced a $3.7 billion agreement earlier this week to relocate the team to the site of the historic RFK Stadium.

New scenery

The new stadium, expected to open in 2030, will be built upon the site of the historic Robert F. Kennedy Memorial Stadium, the Commanders’ home field from 1961 to 1996, which is currently being demolished.

On top of the beloved location, the development will also get a few new features:

• With 177 acres of total space, the stadium would be the focal point of retail stores, restaurants, parks, and residential properties.

• The brand-new, roofed stadium will boast 65,000 seats, which is enough to potentially host an upcoming Super Bowl.

A big investment

The project includes the single largest private investment in the history of DC, as the Commanders are setting aside $2.7 billion, while the city government will provide $500 million.

• A local organization, Events DC, will cover the rest of the $3.7 billion price tag.

Economic boon: Over the next three decades, the Commanders project that the campus will generate around $15.6 billion in direct spending, $4 billion in tax income, and over 2,000 permanent jobs.

“Grandpa robbers” accused of Kim Kardashian jewelry heist stand trial

Honestly, I completely forgot this happened. Earlier this week, a trial began for the 10 suspects who tied up Kim Kardashian, held her at gunpoint, and stole around $6 million in jewelry during Paris Fashion Week in 2016.

Heist henchmen

The suspects are nine men and one woman, mainly in their 60s and 70s (hence grandpa robbers), who are accused of breaking into Kardashian’s hotel room while her bodyguard was absent and raiding her suite.

• According to prosecutors, five men disguised as police officers forced a night concierge to guide them to Kardashian’s room, where she was gagged, tied up, and locked in a bathroom.

• They then stole around $6 million in jewelry, including a $4 million engagement ring from her ex-husband, Kanye West.

They got away with it… for a little bit. The suspects escaped initially, with some fleeing the scene on foot and others on bicycles. However, not long after, authorities discovered DNA left on the restraints used to bind Kardashian, which later led to their arrests.

• Out of the original 12 defendants, one has passed away, and another, who has advanced dementia, is considered unfit to stand trial.

• As of now, five are charged with executing the heist, and five with being accessories.

Looking ahead: Kardashian is set to testify in person on May 19, and the trial is expected to run until May 23. If you want to keep up with the trial, click here for updates.

FAST FACTS
Catch up on this week’s weird news

Mammal Music: Ronan, a 15-year-old California sea lion, can accurately keep rhythm to various music genres, challenging the belief that only humans and a few vocal-learning species can synchronize their movements to a beat.

Atomic Accurate: Researchers have developed a new atomic clock that measures quantum beats from a cesium atom 'fountain,' which has an error rate of one second every 100 million years.

Satellite Surge: Amazon launched its first batch of internet satellites in an attempt to rival SpaceX, which dominates the industry with over 6,750 satellites currently in orbit.

Jet Jitters: According to the US Navy, a $60 million jet was lost at sea after falling off a US aircraft carrier shortly following a sharp maneuver to evade fire from Houthi rebels.

Code Computing: Microsoft CEO Satya Nadella said that 20%-30% of the company’s code was written by AI. Talk about a time saver.