BUSINESS

The yield agreement, seen as a step toward finally advancing the stalled market structure bill, hasn’t yet fully won industry support.

AT&T has rapidly lost phone customers as rivals ramp up deals and discounts on wireless services. Amid these challenges, the carrier risks further hurting loyalty after recently warning customers of a major change to its wireless plans. Last year, Verizon and AT&T doubled down on device promotions and free line offers to lure and retain customers amid elevated switching behavior in the wireless market. More consumers have been searching for lower phone plan prices amid economic uncertainty, even exploring wireless service from nontraditional providers such as mobile virtual network operators (MVNOs) and cable TV/internet companies. Amid shifting customer behavior, recent U.S. Bureau of Labor Statistics data found that wireless service prices have decreased over the past year.“It’s a perfect storm in wireless right now, and for a change, it’s the consumer that is benefiting,” said MoffettNathanson analyst Craig Moffett, in a statement to The Washington Post in December. As competition heats up, AT&T’s postpaid phone churn (the percentage of customers who cut their phone service) hit 0.98% in the fourth quarter of 2025, up from 0.85% in the same quarter a year earlier, according to the company’s most recent earnings report. Also, 255,000 prepaid phone customers ended their service during the quarter, raising churn in that segment to 2.89%, up 16 percentage points year over year. The losses come after AT&T decreased and restricted its autopay discount for some customers in April last year, a change that sparked backlash. In December, it also hiked a key fee that customers pay for on their monthly bills.The carrier has also been receiving criticism for allegedly bait-and-switching customers by hitting them with larger-than-anticipated monthly bills after getting them to switch from rivals with generous discounts. AT&T warns customers of upcoming wireless plan price hikesDespite facing higher churn, AT&T has decided to raise its wireless plan prices. In a new message on its website, the carrier warns customers that prices for “retired unlimited plans” will increase in April. These are wireless plans that were active before July 24, 2025.AT&T customers who have a single phone line on one of these plans will see their monthly price increase by $10. Those with multiple phone lines will be hit with a $20 price hike (this will be the total monthly increase, not per line).AT&T said that these price increases will help it “continue providing reliable network service, quality products, and great customer experiences.”Related: AT&T rolls out major upgrade for customers, challenging T-MobileTo lessen the blow of the price hikes, it is adding an extra 20GB of hotspot data per month to these older phone plans. The move from AT&T comes after it introduced three new phone plans earlier this month, which include AT&T Value 2.0, AT&T Extra 2.0 and AT&T Premium 2.0. In a press release, the carrier states that customers can get “real value” with this new lineup, “without having to choose the highest-priced plan.”AT&T advertised these new plans in its price-hike announcement, hinting that the change is the carrier’s way of encouraging customers to upgrade. 

AT&T is raising prices for “retired unlimited” phone plans after launching newer ones on March 13.Jonathan Weiss/Shutterstock

Customer backlash puts AT&T at risk of more losses In a statement to TheStreet, RTMNexus CEO Dominick Miserandino said that AT&T’s latest price increase is “a massive gamble.”“AT&T is playing a high-stakes game of chicken with its own customers,” said Miserandino. “Raising prices while you’re already fighting record churn is a massive gamble. They are basically trying to tax the customers who are too busy to switch plans.”Some AT&T customers are already contemplating jumping ship from the company, as many took to social media platform Reddit to express irritation over the change. “I’m very upset. This week they roll out new plans, then 2 days later they screw longtime customers by jacking up our rates, AND then cut the discount to public sector workers (health/teachers/etc), I may finally move to Visible+ Pro in protest,” wrote one AT&T customer.More Telecom News:T-Mobile drops 2 new phone plans to stop customers from fleeingVerizon CEO shifts gears after 2.25 million customers departAT&T closes billion-dollar acquisition to win back customers“Might finally be time to switch to T-Mobile or an mvno,” wrote another.“With 4 lines it will be a $20 increase! That’s insane. I’ve been with ATT forever, but guess I will need to start looking at alternatives,” wrote another AT&T customer. Frustrating customers is the last thing AT&T needs. Last year, a WhistleOut survey found that the carrier is already at risk of losing millions of customers due to high mobile plan prices. How rising wireless costs are impacting customer behavior:Consumers pay around $80 per monthfora single line on an AT&T phone plan.By comparison, MVNO customers spend roughly $44 per month for a single line.About 42% of customers across AT&T, T-Mobile and Verizon report that their monthly billshave spiked over the past year, which is 7% higher than average. Rising costs are pushing 58% of these customers to think about switchingcarriers.Around 34% say they are considering joining an MVNO in the near future. Elevated mobile plan prices could cause AT&T to lose69.4 million customers. 
Source: WhistleOut
Related: T-Mobile angers customers as it quietly expands major device fee

Looking for help with today’s New York Times Pips? We’ll walk you through today’s puzzle and help you match dominoes to tiles.

Federal Reserve Chair Jerome Powell just last week downplayed stagflation fears but Wall Street is growing increasingly uneasy as rising energy prices tied to the Iran War threaten to reignite inflation and jolt the U.S. economy into a recession.Economists have sharply raised their recession odds in recent days, warning that an oil-driven inflation shock could complicate the Fed’s attempt to balance the risks of higher price pressures and the softening labor market.Moody’s Analytics in a new note forecasts a near 50% chance of an economic downturn in the next 12 months, far higher than the typical 20% baseline.Others, as first reported by CNBC March 25, have also lifted their forecasts:Wilmington Trust:45%Goldman Sachs:30%. EY Parthenon:40%, with the caveat that “those odds could rapidly rise in the event of a more prolonged or severe Middle East conflict.”The concern?Not just slower growth but that higher oil prices that could feed into broader sticky inflation thus forcing the Fed to keep benchmark interest rates higher for longer.Note: History has shown us that the initial hit of energy shock passes very quickly into core prices.“The negative consequences of higher oil prices happen first and fast,” Moody’s Analytics Chief Economist Mark Zandi said. “I’m concerned recession risks are uncomfortably high and on the rise,” Zandi said. “Recession is a real threat here.”He and others say a diplomatic resolution to the Iran War that restores oil flows could prevent the worst-case scenario.“If oil prices stay where they are through the second quarter, that’ll push us into a recession,” Zandi added.What the Fed dual mandate requires The Fed’s dual congressional mandate requires it to balance full employment and price stability.Lower interest rates support hiring but can fuel inflation.Higher rates cool prices but can weaken the job market.The two goals often conflict, operate on different timelines and are influenced by unpredictable global events like pandemics and wars. Fed cites inflation risk from Iran WarEven before the outbreak of the Iran War, the Fed faced a dilemma from worrisome risks to both sides of its congressional mandate: higher unemployment rates and sticky inflation from tariffs.More Fed:J.P. Morgan pushes back on Fed’s 2026 rate-cut forecastThe Federal Reserve’s 11-1 vote on March 18 to hold the benchmark Federal Funds Rate steady at 3.50% to 3.75% underscores the central tension now driving U.S. monetary policy.Investors are no longer debating whether risks to the Fed’s dual mandate exist but which risk matters more to the U.S. economy.

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Powell pushes back on stagflation concernsThe Iran War, by driving energy costs sharply higher, has reopened the traditional stagflation dilemma of rising prices with slowing growth.In its March 18 statement, the Federal Open Market Committee said “uncertainty about the economic outlook remains elevated” because the “implications of developments in the Middle East for the U.S. economy.’’The expected increase in inflation and lower growth from the oil shock has prompted calls of stagflation threats, which conjures up the dreaded 1970s economy that took years to rebound.As I reported, Powell told reporters after the March 18 FOMC meeting that he didn’t see any current signs of stagflation.The Fed Chair said the U.S. economy “is doing a good job,’’ despite the many challenges. Comparisons to the 1970s debacle were erroneous, Powell insisted.“I would reserve the term stagflation for a much more serious set of circumstances,” he said. “That is not the situation we’re in.”“I always have to point out that that was a 1970s term at a time when unemployment was in double figures, and inflation was really high,” Powell said. “That’s not the case right now.”Fed’s 2026 forecast on interest rates unchangedThe Fed’s March median Summary of Economic Projections or “dot plot” calls for a single 25 basis point rate cut in 2026, and an additional 25 basis point cut in 2027, the same as the December 2025 forecast.Related: Morgan Stanley issues stark warning on Fed rate outlookBut Powell noted in his press conference that the rate cut was not guaranteed, especially if the projected decrease in inflation doesn’t occur. “While the Fed didn’t take rate cuts completely off the table, the rates market did,’’ Morgan Stanley wrote in a recent note. “Powell’s focus on inflation risk and similar concerns from other central banks this past week to bond market pricing to a 40% chance of a Fed rate hike by October.”Labor-market risk adds to economic concernsBeyond energy prices, economists say the labor market is a key pressure point.The U.S. economy created just 116,000 jobs for all of 2025 and lost 92,000 in February. While the unemployment rate has held steady at 4.4%, that’s largely been because of what’s known as the “no hire, no fire” trend in which employers aren’t hiring but also not firing staff.Excluding the robust gains in healthcare-related fields — more than 700,000 in all — payrolls outside those areas declined by more than half a million over the past year.“I think there’s much less inflation risk than [Fed officials] think, and more risk to the labor market to the downside than they stated,” Luke Tilley, chief economist at Wilmington Trust, said.Dan North, senior U.S. economist at Allianz, said the aging U.S. population will increase the need for healthcare jobs in the future.“The demand for those jobs is going to be there,’’ North said. “But it’s no way to run a railroad if you’re doing it on one engine.”Fed’s Waller urges caution on war impactFederal Reserve Governor Christopher Waller said he would support interest-rate cuts later this year if the labor market continued to weaken.But he also warned in a CNBC interview March 20 that energy supply disruptions from the Iran War could stoke inflation, which he had expected to decline this year as the impact of President Donald Trump’s tariffs faded.“Caution is warranted,” Waller said. “It doesn’t mean that I’m going to stay put for the rest of the year. I just want to wait and see where this goes.”Sustained Iran War heightens recession riskFor investors, consumers and policymakers, the economic path forward appears to be narrowing its options as the Iran War continues.If energy prices — by the barrel and at the gas pump — remain elevated and begin fueling higher inflation across multiple sectors, then the Fed’s interest-rate pause may continue even if the labor market weakens.This tension raises the risk of a monetary policy mistake, leaving the U.S. economy — facing increasingly polarized midterm elections — vulnerable to both recessionary and persistent inflationary pressures.Related: Goldman Sachs resets recession risks for 2026

Restaurant analyst says the tie-in with the Netflix film will be a huge hit for the Golden Arches

Decades of neglect of a once world-class fighter fleet have led to decay and obsolescence in the face of the most advanced air armada ever unleashed against a country.

Shares of the Fundrise Innovation Fund have surged as investors look to invest in private AI companies, but history suggests that these high valuations aren’t tenable.

Nio (NIO) just reported its first-ever quarterly profit, signaling a potential shift from a cash-burning EV story to one driven by operating leverage.This milestone drew Jim Cramer to flip his stance on the company from bearish to bullish, saying Nio stock could be a good speculative play:Keep in mind that on an episode on October 20, 2025, a caller mentioned Nio stock, and Cramer responded, “I don’t know. NIO is a, look, it probably goes to $10. Then you have to sell it, OK?”Here’s what investors need to know.What Nio’s first-ever profit means for the stockNio’s Q4 results showed strong top-line growth and improving profitability. Revenue rose 83.6% year over year to $4.95 billion, while adjusted net profit came in at $103.9 million.More importantly, adjusted operating profit reached $178.9 million. That figure gives a clearer view of the core business.In the auto industry, net income can be influenced by one-time items and accounting adjustments. Operating profit provides a cleaner view of the underlying business, showing whether scale, cost control, and vehicle economics are improving.That’s where Nio stands out. The company benefited from higher deliveries and stronger gross margins, suggesting each vehicle sold is contributing more meaningfully to profits.The market responded quickly with shares jumping more than 15% following the results.Analysts expect Nio’s revenue to grow from about $12.7 billion in 2025 to $18.7 billion in 2026, marking a 47% increase.Related: Rivian, Uber robotaxi deal may (finally) kickstart sharesFull-year trends also improved. Revenue rose 33%, while net losses narrowed. Nio remains unprofitable on an annual basis, but the Q4 result didn’t come against a weakening backdrop.For many investors, this marks a potential inflection point. Revenue growth may finally be flowing through to earnings instead of being absorbed by fixed costs.Nio has yet to reach full-year profitabilityGrowth is then expected to slow but remain solid, with analysts expecting revenue to reach roughly $21.7 billion in 2027, up another 16%.Management remains confident this momentum can continue, with CEO William Li saying the company expects “a year-over-year volume growth of 40% to 50%,” for fiscal year 2026. That kind of expansion is important in a capital-intensive business. Higher volumes allow Nio to spread fixed costs like factories and R&D across more vehicles, supporting margin improvement.Margins are already expected to move in the right direction.As CEO William Li noted in Nio’s Q4 earnings call on March 10th, “the continuous improvement in margin was mainly driven by strong sales growth, a higher mix of high-margin models and also continued vehicle cost optimization.”

Robert Way/Getty Images

The company’s gross margin is projected to rise from 13.6% in 2025 to 16.5% in 2026, then to 17.1% in 2027 and 17.8% in 2028.GAAP operating margins show an even clearer shift. Operating margins are expected to improve from -16.0% in 2025 to -3.4% in 2026, then to roughly breakeven at -0.4% in 2027. By 2028, analysts expect operating margins to turn positive at about 2.1%.That timeline points to a key inflection point. While Nio has already posted a profitable quarter, consensus analyst estimates suggest full-year GAAP operating profitability may not arrive until around fiscal year 2028.Nio’s Onvo push could drive growth, but execution mattersNio has been increasing deliveries, and its new Onvo brand is a key part of that strategy.Onvo targets a more mass-market customer base, which could expand Nio’s reach and improve plant utilization.If Onvo succeeds, it could help accelerate revenue growth while improving cost absorption across Nio’s production base. More Automotive:Hyundai admits deadly defect caused more injuries than previously knownConsumer Reports names 5 popular EVs with the best real-world rangeUber targets 50,000 robotaxis in major Rivian, Nvidia dealsNio’s battery-swap network adds another potential advantage. The system offers convenience and could strengthen customer loyalty, which may support pricing power over time.As CEO William Li put it, “the continued expansion of the power swap network will enhance the EV user experience and provide a unique defensible competitive advantage.”A profitable quarter makes these investments look more strategic. If Nio can continue growing deliveries while maintaining pricing discipline, both revenue and gross margins could trend higher.Nio still faces pressure in China’s brutal EV marketEvery growth story comes with some risk.China remains one of the toughest EV markets globally. Rivals like BYD and Li Auto continue to push pricing lower, and even small price cuts can have an outsized impact on margins.Onvo itself introduces execution risk. While it can drive volume, lower-priced vehicles may pressure per-unit economics if Nio is forced to compete more aggressively on price.The battery-swap network also comes with meaningful costs. It requires ongoing capital investment, and its long-term value depends on whether it can drive enough adoption to justify that spending.For now, investors are watching a few key metrics closely.Adjusted operating profit shows whether the business is improving, but it doesn’t stand alone. Revenue growth and gross margins matter just as much.If Nio can grow deliveries, maintain pricing, and expand margins at the same time, the business may begin to look more durable.If not, the recent rally could prove short-lived.Investors have long discounted Nio for ongoing losses and dilution risk. A single profitable quarter starts to change that narrative, but only sustained execution will confirm it.The next phase will determine whether this marks a true turning point or just a temporary step forward.Related: UBS has a message for Tesla stock investors

Restaurant analyst says the tie-in with the Netflix film will be a huge hit for the Golden Arches

While battling the U.S., Iran’s rulers are also staging a war-within-a-war, aimed at destroying the SpaceX stations enabling daredevil dissidents to connect with the Web.