U.S. equities staged a notable recovery in afternoon trading on Wednesday, January 21, 2026, as investor anxieties eased following President Donald Trump's remarks at the World Economic Forum in Davos, Switzerland. The major market indexes, which had suffered their steepest declines in months on Tuesday, clawed back some ground, signaling a cautious return of risk appetite. The rebound was largely attributed to President Trump's statement ruling out the use of force to acquire Greenland, a key point of geop ...

Core Insights - The Canadian retail sector is experiencing muted overall sales growth, with jewellery and related categories outperforming the broader market [1][2][3] Retail Performance Overview - Overall Canadian retail sales saw a minimal year-on-year increase of 2.4% in October 2025, with a month-on-month rise of 4.3% [2] - The slow growth is attributed to cautious consumer sentiment and macroeconomic challenges, with expectations for partial recovery in 2025 and gradual strengthening through 2026 [3] Jewellery Sector Analysis - The jewellery segment reported a significant year-on-year growth of 12.8% and a month-on-month increase of 5.3% in October 2025, indicating strong demand for premium goods [4] - Revenue for Canadian jewellery stores was estimated at approximately C$3.6 billion in 2025, despite a slight decline over the past five years, highlighting structural market shifts [5] Retail Challenges - There has been a decline in foot traffic in retail stores through October 2025, indicating a shift towards reliance on conversion rates and basket size for sales [6] - The lack of updated online traffic data for the jewellery segment limits the ability to analyze e-commerce performance effectively [7]

Market Outlook - The market is expected to experience a period of clarity and normalization in 2026, following a foggy and uncertain 2025, which is reflected in current market highs [2][6] - The administration's policies, particularly regarding tariffs, have positively influenced GDP and market performance, contradicting previous doomsday scenarios [4][6] Risks and Challenges - Policy risks remain a concern, but the focus is shifting towards unforeseen risks that could impact market optimism [3][4] - Potential inflationary pressures from tariffs are anticipated in the first quarter, but they are considered manageable within a strong economy [5][6] Monetary Policy - There is ongoing discussion about the appropriateness of cutting rates next year, especially with current GDP levels, as the Fed is on a trajectory to lower rates [7][9] - The administration is exploring innovative fiscal reforms, which may influence future monetary policy and economic conditions [8][9] Economic Innovations - The potential for transformative technologies such as longevity, AI, and power is highlighted, suggesting that these innovations could lead to a robust economy and possibly higher interest rates in the future [9]

Core Insights - Halewood Artisanal Spirits has confirmed significant workforce reductions in response to sales pressures, with employee numbers dropping over 40% from 390 to 225 in the last financial year [1][2] Financial Performance - The company reported a net turnover decline of 11% to £77.4 million ($104.6 million), primarily due to the ending of third-party whisky contracts and decreased sales of Crabbies ginger beer [3] - Adjusted EBITDA improved to £6.6 million from a loss of £7.3 million the previous year, while operating loss before exceptional items decreased to £3.4 million from £17.9 million [4] - The overall loss for the year was £18.3 million, an improvement from a loss of £22.7 million in the prior year [4] Strategic Adjustments - Halewood is scaling back international expansion projects and increasing outsourcing of production to Europe to manage rising costs, particularly in National Insurance and minimum wage [2] - The company aims to focus on driving down operational overhead and improving production efficiency while maintaining artisanal spirits as its core business, particularly gin and whisky [5]

Core Insights - The large services sector of the economy experienced growth in November for the sixth consecutive month, indicating a sustained positive trend in this area [1] - Inflationary pressures have eased, suggesting a potential stabilization in prices which could benefit consumer spending and overall economic health [1] - Businesses are adopting a cautious stance towards hiring and investment due to ongoing uncertainties related to tariffs, which may impact future growth prospects [1]

Labor Market & Inflation - Australia's annual wage growth remained elevated last quarter, indicating a tight labor market [1] - Persistently weak productivity contributes to inflationary pressures [1] - Inflationary pressures may take time to cool, posing a challenge for policy makers [1]

Group 1: Workforce Reduction and Management Changes - Target announced the elimination of 1,800 corporate positions, marking its first major workforce reduction in a decade, as incoming CEO Michael Fiddelke aims to reverse four years of stagnant sales [1] - The layoffs indicate that Target may lack the operational efficiency and strategic clarity needed to compete effectively in a challenging macro environment [5] Group 2: Financial Performance and Market Position - Target's market cap is valued at $43 billion, with its stock down 65% from all-time highs, underperforming peers such as Walmart and Costco [2] - Over the last 10 years, Target stock has returned 73% to shareholders after adjusting for dividend reinvestments, while Walmart and Costco have returned 564% and 620%, respectively [2] Group 3: Revenue and Sales Outlook - Target expects revenue to decline year-over-year in fiscal 2026, indicating challenges with inventory management and store traffic [4] - The retailer generates 50% of its sales from discretionary products, making it more vulnerable to economic downturns compared to Walmart, which generates 40% from discretionary items [4] Group 4: Operational Improvements and Consumer Trends - Target saw some improvement in the second quarter, with strengthening traffic and comparable sales trends, particularly in physical stores [6] - Notable strength was observed in gaming, toys, and trading cards, as customers responded positively to new products and innovation [6] Group 5: Strategic Adjustments and Future Outlook - Target has invested significant resources in managing tariff impacts through product development adjustments, sourcing changes, and supply chain modifications [8] - While short-term pressure on profit margins is expected, management believes that the bottom line will expand over the next 18 months [8]

AND CORE CPI UNLOCKING LOWER BOND YIELDS GOING INTO THE FEDERAL RESERVE DECISION. JOINING US IS TIFFANY WILDING. IS THIS A SOURCE OF COMFORT FOR THIS FEDERAL RESERVE NEXT WEEK.TIFFANY: WELL, I DO NOT KNOW. CERTAINLY IT IS GOOD NEWS ON INFLATIONARY PRESSURES. THE ARGUMENT THAT WE HAVE BEEN MAKING IS SYMPTOMATIC OF THIS REPORT IS THAT THE ECONOMIC ADJUSTMENT TO TARIFFS IS COMING THROUGH LESS ON A PRICE ADJUSTMENT AND INSTEAD COMPANIES ARE FINDING WAYS TO DEFEND MARGINS BY OFFSETTING OTHER COSTS. AND I THINK T ...

Group 1 - The U.S. small-business sentiment has declined slightly due to ongoing inflationary pressures and labor shortages, contributing to economic uncertainty [1][2] - The National Federation of Independent Business reported a 2.0-point drop in its optimism index for September, bringing it to 98.8, which is close to the long-term average of 98 points [2]

Group 1: Financial Performance - Card Factory reported a revenue increase of 5.9% to £247.6 million in the first half, despite a decline in adjusted profit before tax by 9% to £13.2 million [2][3][4] - Like-for-like store revenues improved by 1.5% year on year, while online sales at cardfactory.co.uk dropped by 11.3% [3][6] - Net debt rose by 5.3% to £78.9 million, although cash from operations improved significantly from £17.5 million to £30.5 million [4][6] Group 2: Cost Pressures - The decline in profits was attributed to rising costs, including significant increases in the National Living Wage and National Insurance contributions, with an expected cost inflation exceeding £20 million for the full financial year [6][9] - Investments aimed at improving efficiency, such as a new point of sale system, also contributed to the profit decline [6][7] Group 3: Strategic Initiatives - Card Factory's organic partnerships business saw a turnover increase of 15.7% year on year, attributed to the success of its full-service model [3] - The company acquired online greetings retailer Funky Pigeon for £24.1 million to enhance its digital growth strategy [10] Group 4: Future Outlook - The CEO expressed confidence in the company's growth strategy and preparedness for the upcoming festive season, maintaining guidance for adjusted pre-tax profit growth in the mid-to-high single-digit percentage range [9][10]