It is day 200 of the second Trump administration and Donald Trump's tariff regime is now officially in place. He has been celebrating since late last night. Just before midnight, he posted that billions of dollars, quote, largely from countries that have taken advantage of the United States for many years will start flowing into the United States. Then just after midnight, he posted, "Billions of dollars in tariffs are now flowing into the United States of America." Well, today Commerce Secretary Howard Lut ...

Investment Rating - The report maintains an investment rating of "A" for the textile and apparel industry [1] Core Insights - Adidas reported a 14% year-on-year revenue growth in its brand under constant currency for the first half of 2025, with total revenue reaching €12.105 billion, a 7% increase compared to the previous year [4][19] - The report highlights that all regional markets for Adidas achieved double-digit growth under constant currency [20] - The overall textile and apparel sector has shown a decline of 2.14% in the SW textile and apparel index, underperforming the broader market [22] Summary by Sections Company Performance - Adidas' FY2025H1 revenue increased by 7% to €12.105 billion, with a net profit growth of 121% to €798 million [4][19] - The company's gross margin improved by 0.9 percentage points to 51.9%, driven by lower product and transportation costs [5][19] - The report anticipates that for FY2025, Adidas will maintain its guidance of high single-digit revenue growth under constant currency, with operating profit expected to be between €1.7 billion and €1.8 billion [20] Market Dynamics - The textile and apparel sector's retail sales growth for the first half of 2025 was 3.1%, with sports and leisure goods showing a robust growth of 22.2% [11] - The report notes that the SW textile and apparel sector has lagged behind the broader market, with various sub-sectors experiencing declines [22] Regional Performance - In the European market, Adidas' revenue grew by 9% to €3.983 billion, while in North America, it increased by 6% to €2.523 billion [21] - The Greater China market saw an 8% revenue increase to €1.827 billion, and emerging markets experienced an 18% growth to €1.632 billion [21] Valuation Metrics - As of August 1, the PE-TTM for SW textile manufacturing was 20.94, while for SW apparel and home textiles, it was 27.69, indicating high valuation levels compared to historical averages [30]

Group 1: Financial Performance of Brands - Adidas reported lower-than-expected revenue but exceeded profit expectations, while VF and Puma had mixed results with VF outperforming on both revenue and profit, and Puma underperforming [1] - Adidas maintains its full-year revenue growth guidance and operating profit target of €1.7-1.8 billion, while VF expects a 2%-4% decline in revenue for FY26Q2 at constant exchange rates [1] - Puma anticipates a double-digit decline in revenue for FY25, with U.S. tariffs expected to negatively impact gross profit by approximately €80 million [1] Group 2: Impact of Tariffs - The recent U.S. tariffs are expected to significantly affect the profits of overseas sports brands throughout the fiscal year [1] - Adidas indicated that tariffs resulted in a negative impact of several million euros in FY25Q2, with an anticipated cost increase of €200 million in H2 due to current tariff conditions [1] - Kering plans to adjust prices to mitigate the impact of the 15% U.S.-Europe tariff, having already implemented price increases in Q2 and planning further adjustments for autumn products [2] Group 3: Opportunities for Manufacturers - The new U.S. tariffs, effective July 31, are expected to benefit cotton spinning leaders, as Southeast Asian countries face varying tariff rates, leading to increased procurement needs from overseas garment and footwear factories [3] - Manufacturers with established overseas production capabilities, such as Tianhong International Group and Baolong Oriental, are likely to gain from the shift in procurement patterns [3] - The trend of overseas brands considering sharing tariff costs with suppliers may further highlight the advantages of midstream yarn and fabric manufacturers with overseas production [3] Group 4: Investment Recommendations - The report recommends investing in high-growth segments such as Anta Sports and Xtep International, as well as companies like Hailan Home that are expected to improve in mid-year reports [4] - Manufacturers with positive mid-year forecasts, such as Baolong Oriental and Tianhong International Group, are highlighted as potential investment opportunities [4] - The report also suggests investing in undervalued Hong Kong stocks like Jiangnan Buyi and Tobo, and brands expected to benefit from the U.S. "Big and Beautiful" act, such as Samsonite and Prada [4]

Trade Policy & International Relations - The US president is increasing tariff pressure on India, a key trading partner, due to their purchases of Russian oil, accusing them of profiteering and funding Russia's war in Ukraine [1] - India criticized the tariff escalation as unjustified, highlighting previous US support for their plan to keep oil flowing globally at a price that would reduce Russia's revenue [2] - The president is demanding investment pledges from various countries and threatening trade partners with high tariffs if they don't provide the money [7] - The imposition of tariffs is viewed as a tax primarily borne by US importers [8][11] Economic Impact & Market Concerns - The president's actions towards India and Brazil suggest a pattern of constant uncertainty and threats regarding trade [12] - Concerns exist that reliance on tariff revenue could create a cycle of dependence [11] - Tariffs are expected to increase prices for consumers on everyday goods like shoes, coffee, and bananas [14] - The uncertainty caused by these trade policies is considered harmful to the economy [13] Alternative Strategies & Policy Debate - A previous strategy involved allowing countries like India to buy Russian oil at a capped price to maintain global oil supply while reducing Russia's revenue [6] - Questions are raised about whether the current administration has a better plan to hurt Russia without raising gas prices globally [7] - The current approach is seen by some as deviating from the principles of open markets and independent central banking that have historically supported the American economy [9][10]

Group 1: Market Overview - The Shanghai Composite Index closed at 3560, down 0.37% for the day and down 0.94% for the month [1] - The Shenzhen Composite Index closed at 2175, with a slight increase of 0.02% for the day and a decline of 1.15% for the month [1] - Large-cap indices showed a decline of 0.54% yesterday but a gain of 2.81% over the past month [1] Group 2: Industry Performance - The photovoltaic equipment sector saw a daily increase of 2.6% and a monthly increase of 10.12% [1] - The rubber industry increased by 2.53% yesterday and 1.8% over the past month [1] - The education sector rose by 2.23% yesterday and 4.18% over the past month [1] Group 3: Investment Insights - The insurance sector is expected to maintain a strong preference for interest-bearing bonds, with a potential increase in the attractiveness of equity assets due to changes in tax policies affecting bond interest income [10][8] - The insurance asset allocation is heavily weighted towards bonds, with 16.97 trillion yuan in bonds held, accounting for 48.6% of total assets [10][8] - The anticipated decline in new liability costs and regulatory support is expected to alleviate pressure on insurance asset allocation [10][8] Group 4: Employment Data Analysis - The U.S. labor market showed weakness in July, with non-farm payrolls increasing by only 73,000, significantly below the expected 104,000 [22][9] - The downward revision of employment figures for May and June by a total of 258,000 has raised concerns about the strength of the labor market [22][9] - The unemployment rate is expected to remain high, with projections suggesting it may stabilize around 4.5% [13][9] Group 5: Company-Specific Insights - Longsheng Technology is positioned for growth with its EGR systems and has diversified into new areas such as electric motor cores and robotics [19][17] - The company has established a strong market position in EGR systems, benefiting from increasing demand in commercial vehicles and stricter emission standards [19][17] - Longsheng's revenue from EGR systems is projected to reach 730 million yuan in 2024, with significant growth potential in its new business segments [19][17]

Investment Rating - The report maintains a "Buy" recommendation for Nobon Co., Ltd. in the non-woven cleaning products sector, highlighting its high growth potential [1]. Core Views - The textile and apparel sector has shown weaker performance compared to the market, with the SW textile and apparel index declining by 2.1% from July 28 to August 1, underperforming the SW All A index by 1.1 percentage points [4]. - The report emphasizes that domestic demand recovery is a crucial factor for investment in 2025, with quality domestic brands expected to reverse their current challenges [9][11]. Industry Data Summary - Retail sales for clothing, shoes, and textiles in China reached 742.6 billion yuan in the first half of 2025, reflecting a year-on-year growth of 3.1% [25]. - In terms of exports, China exported textiles and apparel worth 143.98 billion USD in the first half of 2025, a slight increase of 0.8% year-on-year, with textile yarns and fabrics contributing 70.52 billion USD, up 1.8%, while apparel exports decreased by 0.2% to 73.46 billion USD [30]. - Cotton prices have seen a decline, with the national cotton price B index reported at 15,221 yuan per ton, down 1.5% as of August 1, 2025 [36]. Company-Specific Insights - Nobon Co., Ltd. is positioned well in the non-woven cleaning products market, benefiting from partnerships with major clients like Sam's Club and Yonghui, which are expected to drive performance beyond expectations [9]. - Adidas reported a 2.2% year-on-year revenue increase to 5.95 billion euros in Q2 2025, with a notable 12% growth in the Adidas brand revenue when excluding currency effects and the Yeezy series [11]. - The report suggests that the textile manufacturing sector may see a recovery in expectations due to the ongoing U.S.-China trade negotiations and the potential for tariff adjustments [10].

Donald Trump's August 1st deadline is here. Well, almost. Tomorrow is the day new tariffs are set to take effect.The president's 90-day pause gave importers a chance to stockpile at a lower tariff rate, and many companies planned ahead, but some brands are already announcing price hikes. Joining us now, former chair of the Council of Economic Adviserss under President Biden, Jared Bernstein, and director of economic policy research at Veta Partners, Henrietta Trees. And Henrietta, starting with you, we know ...

Industry Challenges - Tariffs are slowing down Adidas's Samba and Puma's Speedcat sales [1] - Nike's resurgence presents another challenge for German sportswear makers [1]

Market Performance - The Hang Seng Index closed at 25,176, down 1.36% for the day and up 25.51% year-to-date [1] - The Hang Seng Tech Index fell 2.72% to 5,490, with a year-to-date increase of 22.89% [1] - The Dow Jones Index decreased by 0.38% to 44,461, with a year-to-date rise of 4.51% [1] - The S&P 500 Index closed at 6,362, down 0.12% for the day and up 8.18% year-to-date [1] Currency and Commodity Overview - The Renminbi Index stood at 95.710, down 0.22% over the past month and down 5.14% over six months [2] - Brent crude oil price increased by 8.15% over the past month to $72.210 per barrel, but decreased by 1.00% over six months [2] - Gold prices rose by 0.88% over the past month to $3,332.69 per ounce, with a significant increase of 19.24% over six months [2] Company-Specific Developments - JD.com announced a voluntary public acquisition offer for CECONOMY AG at €4.60 per share, with full support from CECONOMY's supervisory and management boards [13] - Adidas reported a 58% year-on-year increase in operating profit for Q2, reaching €546 million, surpassing market expectations [15] - Guotai Junan International successfully issued the first public digital native bond by a Chinese brokerage, with a size of up to $300 million [16] Economic Indicators - Eurozone GDP grew by 0.1% quarter-on-quarter in Q2, exceeding expectations, with an annual growth of 1.4% [17] - The U.S. GDP for Q2 showed an annualized growth of 3%, rebounding from a contraction in Q1 and surpassing the expected 2.4% [18]

to Morning Brief Market Sunrise. I'm Raman Karamali live from Yahoo Finance Studios in London. It's Wednesday, 30th July.Coming up on the show, Wall Street is gearing up for a big day. Policy makers at the Federal Reserve will make their call on interest rates and big tech is set to dominate corporate earnings. We'll have an update on how trade talks between China and the US went in Stockholm, and we'll have the details of the latest companies to warn about the cost of tariffs.So, grab your coffee and let's ...