Group 1: Tariff Costs and Impact - A Federal Reserve Bank of New York study found that nearly 90% of the cost of President Trump's 2025 tariffs was borne by US firms and consumers, contradicting claims that foreign countries were responsible for the costs [1][4][9] - In the first eight months of 2025, 94% of tariff costs were absorbed by American businesses and consumers, with this share decreasing to 92% in September and October, and further to 86% in November as foreign exporters began to take on more costs [1][2][9] Group 2: Revenue and Economic Effects - The US collected $30 billion in customs duties in January alone, leading to a fiscal year-to-date total of $124 billion, which represents a 304% increase from the same period a year earlier [10] - For the calendar year 2025, tariff collections reached $287 billion, nearly tripling the previous year's total, with projections indicating that levies will raise $171.1 billion in 2026, marking the largest tax increase since 1993 [10] Group 3: Domestic Investment and Supply Chain Diversification - Tariffs have reportedly spurred domestic investment and supply-chain diversification, with companies like Stellantis pledging $13 billion, Toyota $10 billion, and Apple announcing $600 billion in US investment [12] - China's share of US imports has decreased to below 10% in 2025, down from nearly 25% in 2017, as Mexico and Vietnam have gained market share, which advocates argue reduces dependence on a single foreign supplier [13]

Core Viewpoint - Spirit Airlines is undergoing significant restructuring due to its second bankruptcy in less than two years, which includes selling 20 Airbus jetliners and recalling some furloughed flight attendants to improve its financial situation [1][5][8]. Group 1: Aircraft Sale - Spirit Airlines has reached an agreement to sell 20 aircraft for approximately $533.5 million, with the potential for competing offers starting at around $554 million [7]. - The sale is expected to enhance the company's financial flexibility and will not impact the flight schedule as most of the aircraft are not currently in service [2][3]. - Proceeds from the sale will be used to pay off debt related to the aircraft and contribute to lower operational costs [4]. Group 2: Flight Attendant Recall - The company plans to recall 500 of the more than 1,300 flight attendants who were furloughed in December 2025 due to financial difficulties [8]. - Recalled flight attendants will receive notices on February 12, 2026, and will return to duty based on seniority as per the Collective Bargaining Agreement [9]. - The recall is aimed at addressing operational challenges faced by the airline and is viewed positively by the union representing the flight attendants [10].

Inflation Overview - Inflation slowed in January to 2.4%, the lowest pace since May 2025, following a positive jobs report, indicating the economy is currently avoiding the full impact of President Trump's tariffs [1][5] - The core inflation figure, excluding food and energy prices, decreased to 2.5%, marking the lowest level since 2021 [2] Employment Impact - Consumer inflation has been gradually decreasing from a peak of 3% in September, reaching 2.7% in December, while wholesale inflation remains elevated at 3% [3] - The strong payroll report indicated that US employers added 130,000 jobs in January, which may influence the Federal Reserve's decision-making regarding interest rates [3] Federal Reserve Response - The likelihood of a rate cut in the near term is diminished due to the robust employment numbers, as the Federal Reserve is balancing inflation concerns with employment growth [4]

Core Viewpoint - Paramount Skydance is actively seeking activist investors to challenge Warner Bros. Discovery's (WBD) sale of its studio and streaming service to Netflix, arguing that its offer of $30 per share is superior to Netflix's $27.75 bid [1][2][5]. Group 1: Activist Investor Involvement - Ancora Holdings has acquired a $200 million stake in WBD, aiming to persuade the board to reconsider the Netflix deal [2]. - Ancora believes the Netflix-WBD deal presents inferior value and significant regulatory risks compared to the Paramount offer [5]. - A major activist investor has received multiple inquiries from bankers to take a stake and vote against the Netflix deal, but has opted not to participate due to the challenges of activist campaigns in media companies [7]. Group 2: Shareholder Dynamics - The timing of WBD's shareholder vote complicates efforts to elect new directors who could oppose the sale to Netflix [8]. - Shareholders have tendered only a small fraction of the 2.6 billion shares outstanding for the Paramount offer, indicating a need for more persuasive arguments [9]. - Pentwater Capital Management, a significant WBD investor, has joined Paramount Skydance's efforts, potentially influencing the outcome of the bid [12]. Group 3: Regulatory Considerations - The Department of Justice's antitrust review of the Netflix deal raises concerns about potential monopolistic practices, which could impact the approval process [13]. - Paramount Skydance has sweetened its offer to include a $2.8 billion breakup fee if the Netflix deal is rejected, enhancing its position [13]. - There is speculation that if Paramount increases its bid to around $33 per share, it could force WBD to reopen the bidding process [17].

Core Viewpoint - Citigroup has approved a total compensation of $42 million for CEO Jane Fraser for 2025, marking a nearly 22% increase from the previous year, reflecting positive investor sentiment towards her management strategies [1][3]. Group 1: Compensation Details - The compensation package for CEO Jane Fraser includes a base salary of $1.5 million, cash incentives of $6.075 million, and the remainder in deferred incentives [3]. - In 2024, Fraser's total compensation was $34.5 million, indicating a significant increase in her earnings for 2025 [3]. Group 2: Market Performance - Citigroup's stock surged by 65.8% last year, outperforming peers and a bank stock index, largely due to Fraser's initiatives to streamline management, cut jobs, and divest businesses [1][5]. - The increase in Fraser's compensation aligns with similar raises for top executives at rival firms like Goldman Sachs and Morgan Stanley, as the industry anticipates a strong year for dealmaking [2]. Group 3: Regulatory Progress - Citigroup executives are optimistic about completing compliance work related to major regulatory penalties, which could allow the bank to focus more on profit growth after years of intensive compliance efforts [4].

Core Insights - McDonald's is successfully attracting budget-conscious consumers through value meals and promotions, resulting in a 6.8% increase in US sales in the fourth quarter, the largest rise in two years [1][6] - The company's value strategy is particularly effective among lower-income consumers affected by inflation, with holiday promotions contributing to increased customer traffic [2] - Consistency in offering value will be crucial as consumers remain selective in their spending [3] Financial Performance - McDonald's global comparable sales rose 5.7% in the fourth quarter, exceeding expectations, with adjusted earnings surpassing Wall Street estimates and revenue exceeding $7 billion [7] - The rebound in customer traffic has translated into stronger financial results, indicating that discount-driven traffic can lead to profitability [7] Competitive Landscape - McDonald's strategy stands out as many US restaurants struggle with foot traffic; lower-priced chains like Taco Bell and KFC have reported sales increases, while higher-priced competitors like Chipotle have seen declines [4] Future Plans - McDonald's aims to continue its affordability messaging while expanding its beverage offerings, including cold coffees and crafted sodas, targeting younger consumers [8] - A new McCafe-branded drink lineup is set to launch in the US and select international markets following a successful test in 500 stores [8]

When it comes to bling, Pandora is officially breaking up with silver — and sliding into platinum’s DMs.The world’s biggest jewelry brand by volume is leaning away from its once-signature sterling silver for shiny new platinum-plated pieces as precious metal prices go haywire, turning what used to be “affordable sparkle” into a profit-margin nightmare.Translation: silver got too expensive, and Pandora isn’t about to let wild metal markets mess with its charm bracelet empire.But according to jewelers, it’s a ...

Core Insights - McDonald's is adapting its menu to cater to customers using weight-loss drugs, focusing on high-protein options to meet the needs of GLP-1 users [1][5] Group 1: Menu Innovations - The company is testing high-protein menu items, which may include grilled chicken strips, cauliflower tortillas, and smaller burgers wrapped in lettuce [2][12] - Current menu items already include protein-rich options like Snack Wraps and Sausage Biscuit sandwiches, with the potential to increase protein content by adding extra ingredients [3][4] Group 2: Market Trends - The adoption of GLP-1 drugs for weight loss has surged, with 12.4% of Americans reportedly using these medications, more than doubling in the past year and a half [7] - Users of GLP-1 drugs are visiting fast food restaurants significantly less, with a 77% decrease in fast food visits and a 74% decrease in pizza restaurant visits [9][10] Group 3: Competitive Landscape - McDonald's is not alone in targeting this market; other chains like Chipotle and Shake Shack have introduced GLP-1 friendly menu items, indicating a broader industry trend towards health-conscious offerings [13][12] - Starbucks has also added protein-focused items to its menu, reflecting a shift in consumer preferences towards healthier options [14]

Mercedes-Benz on Thursday said its 2025 earnings were more than halved on a massive $1.2 billion hit related to President Trump’s tariffs – and warned that more challenges are on the way.The luxury German automaker’s full-year operating profit was 5.8 billion euros, or roughly $6.9 billion – a roughly 57% drop from 2024. It largely missed Wall Street expectations of $7.8 billion.Mercedes blamed the dismal results on steep costs from Trump’s auto tariffs and intense competition from foreign rivals, especiall ...

Ford on Tuesday posted its largest quarterly loss since 2008 amid losses in the automaker’s electric vehicle (EV) division, as well as the impact of tariffs and a fire that impacted an aluminum supplier.The Detroit automaker reported a fourth quarter net loss of $11.1 billion after previously disclosing large writedowns to its EV programs, which the company is realigning in response to lower-than-expected consumer demand and changing federal subsidies.“I think the customer has spoken,” Ford CEO Jim Farley s ...