Good morning, CFOs. U.S. consulting firms have offered billions in additional cuts to their contracts; the IMF slashed its U.S. and global economic forecasts; companies are locking in rates; plus, Tesla revenue drops.

Some of the biggest U.S. consulting firms have offered billions in additional cuts to their contracts after the Trump administration told firms that they needed to pony up deeper price concessions—or face consequences.

Seven of the 10 largest consulting firms to the government have now offered up to $20 billion in savings by proposing to either terminate existing contracts or reduce the scope of their work within federal agencies, according to a person familiar with the negotiations. Some firms are now proposing to offer credits toward their work or artificial-intelligence services free of charge.

For weeks, officials within the General Services Administration, which helps oversee procurement for the federal government, have pushed companies including Accenture, Booz Allen Hamilton, Deloitte, IBM and others to justify their work with the government and to propose substantial cost savings. While companies met a deadline last month to identify potential cuts to existing projects, administration officials later told firms that they were unimpressed with the size and scope of the reductions proposed.

📆 Earnings

• Alaska Air
• AT&T
• Boeing
• Chipotle
• IBM
• Lam Research
• Whirlpool

📈 Economic Indicators

The Census Bureau reports new residential real estate sales data for March.

Companies are locking in a portion of the interest rate on their future bond sales after President Trump’s tariff plans rattled the Treasury market this month.

Many regular issuers in the corporate bond market—such as utilities, real-estate firms and financial institutions—rushed in recent weeks to take advantage of what's known as pre-issuance hedging, according to corporate bankers and advisers. The strategy involves effectively fixing the underlying Treasury rate on a near-term bond issuance. The total interest rate that companies pay on a bond consists of the yield on a Treasury bond with a similar maturity, plus an additional amount known as a credit spread.

Tariff plans unveiled by the president on April 2—which included a 10% tariff on all U.S. imports plus additional levies on other countries—sparked volatility in the bond market. The yield on the 10-year Treasury note, which stood at about 4.4% on Monday, initially declined after Trump’s announcement to below 4%, on fears of a U.S. recession, and then topped 4.5% days later, amid a market selloff. The administration on April 9 walked back its plans but kept in place the 10% tariff and also raised levies on China.  

The market volatility prompted many companies to pull the trigger on pre-issuance hedging plans, particularly as yields initially declined, bankers and advisers said. The strategy may continue to appeal to companies that want additional certainty about the cost of issuing debt, given the prospect of higher Treasury yields stemming from economic pressures including inflation, the outlook for the U.S. budget deficit and the weakening dollar, advisers said.

—Kristin Broughton

Tesla net income slid 71% in the first quarter, as the company struggled to overcome competitive pressure overseas and a reputational hit from Chief Executive Elon Musk’s polarizing role in the Trump administration.

The company also reported adjusted earnings-per-share of 27 cents, which missed analysts’ expectations of 41 cents.

Tesla revenue fell in the first quarter after a steep decline in automotive sales, including double-digit percentage drops in crucial markets including the U.S., China and Germany.

• Tesla Has a Deep Hole to Pull Out Of

• U.S. shares rebounded Tuesday, with major indexes climbing 2.5% or more and big tech stocks regaining some ground lost a day earlier.
• Boeing has agreed to sell portions of its Digital Aviation Solutions business to Thoma Bravo in an all-cash deal worth $10.55 billion as it looks to double down on its core business.

📰 Other headlines

• Senators Demand Federal Reserve Turn Over Records on Failed Fintech Synapse
• Global Economy Set for Slowdown as Tariffs Herald New Era, IMF Says
• Gold Price Sets New Intraday Record Above $3,500
• Kimberly-Clark Cuts Profit Outlook as New Tariff Costs Mount
• Capital One Profit Rises Ahead of Discover Merger
• SAP Posts Higher 1Q Revenue, Operating Profit
• JD Vance Sees an India That America Can Work With
• Three Factories, $355,000 and the Maddening Quest to Make a Clear Can
• Heard on the Street: Warren Buffett Timed His Apple Stock Sale to Perfection. What’s Next?
• Offices Ditch Harsh Fluorescent Lights. New Tech Is On the Way.
• From Hermès Bags to Sally Hansen Nail Polish: The Art of Jacking Up Prices
• $1 Trillion of Wealth Was Created for the 19 Richest U.S. Households Last Year
• What Drawn-Out Capital Flight Could Do to U.S. Markets

The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax accounting, regulation, capital markets, management and strategy.

Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew.

You can reach us by replying to any newsletter, or email Walden at walden.siew@wsj.com.