Core Insights - Carter's, a children's clothing retailer, plans to close 150 stores and cut 300 jobs over the next three years due to low margins and increased costs driven by tariffs [1][2][4] Store Closures and Job Cuts - The company will close approximately 100 stores by 2026, primarily as leases expire, and will reduce office-based roles by 15%, resulting in annual savings of $35 million [1][5][6] - The decision to suspend new openings of U.S. locations and reduce product offerings by 20-30% is part of the strategy to enhance operational efficiency [1][6] Financial Impact of Tariffs - Higher tariffs have significantly impacted the company's margins, with estimates indicating a net impact of $25 million to $35 million on fourth-quarter earnings [2][4] - Gross margins were affected by $20 million in Q3 2025, with expectations of a $40 million impact in Q4 [4][6] Strategic Focus - The CEO emphasized the need to enhance a performance-driven culture, aiming for greater ownership and accountability among fewer employees [5][6] - Due to ongoing uncertainties regarding tariffs, the company has opted not to provide sales and earnings guidance for 2025 [6]

Short-term bonds can offer income, flexibility, and stability in a diversified portfolio. This episode of Market Sense explores how short-term bonds have performed in the current economic environment, especially with more rate cuts on the table. A Fidelity bond fund manager will also discuss how inflation, tariffs, and Fed policy are shaping bond market dynamics. Topics covered: • Interest rate cuts • Bonds & short-term bonds • Tariffs, Government debt, and Fed Independence • Active vs. Passive 00:00 Introd ...

Trade Relations & Geopolitics - India's absence from the Asian summit in Kuala Lumpur suggests stalled trade deal progress with the US [2] - Oil imports from Russia are a major obstacle in finalizing a trade deal between the US and India [2][5] - The US imposing a 50% tariff on India is putting considerable pressure on India's economy [4] - Balancing relations with Russia (a major oil supplier) and the US is a delicate act for India [6] Investment & Market Performance - Investors are becoming more selective about investments in India due to cooling tensions between the US and India [3] - While India's market is up year-to-date, it's trailing behind the rebound of China, Japan and Argentina [4] - UBS's CIO of emerging markets is more bullish on Chinese tech due to the tariff pressures on India [4] Oil Market Dynamics - India has increased imports of discounted Russian oil following the Russia-Ukraine conflict [3] - The Trump administration's tariffs on Russian oil are forcing India to reduce purchases faster than initially planned [3] - Russia has been a significant oil supplier to India for years [6]

Core Viewpoint - The Federal Reserve (Fed) is expected to cut interest rates by 100 basis points in the near future, aligning with market expectations and macroeconomic conditions [2][5][11]. Macroeconomic Perspective - There has been a softening in the labor market, indicating downside risks, which suggests that the Fed should adopt a neutral stance rather than a restrictive one [4]. - The Treasury and silver markets have already priced in a 3% policy rate, necessitating the Fed to validate this expectation to maintain easier financial conditions [5]. Interest Rate Strategy - The Fed should implement a gradual approach to rate cuts, potentially reducing rates by 25 basis points at each of the next three or four Federal Open Market Committee (FOMC) meetings [8][9]. - A steady approach is preferred to avoid creating negative market psychology or exacerbating bubble risks [9]. Inflation Concerns - There is a belief that the effects of tariffs on inflation have not fully materialized, with about 50% of respondents in a survey acknowledging this [10]. - The potential for inflation to arise from corporations passing on costs to consumers is acknowledged, but the focus is on the downside risks to economic activity, particularly consumer spending among lower-income groups [14].

Welcome back to the exchange. We're a little more than 24 hours from the Fed decision, but 28 days into the government shutdown for the impact of that and the ongoing trade uncertainty, uh, all of that could have a future a fate or could impact the future of rate cuts. We turn to Steve Leeman with the results of the latest CNBC Fed survey. Steve, >> thanks Leslie. Yeah, responders to the October CNBC Fed Service. rate cut on the way from this meeting, the next meeting in December, and possibly one in Januar ...

Welcome back to the exchange. We're a little more than 24 hours from the Fed decision, but 28 days into the government shutdown for the impact of that and the ongoing trade uncertainty, uh, all of that could have a future a fate or could impact the future of rate cuts. We turn to Steve Leeman with the results of the latest CNBC Fed survey. Steve, >> thanks Leslie. Yeah, responders to the October CNBC Fed Service. rate cut on the way from this meeting, the next meeting in December, and possibly one in Januar ...

Let's talk about the data if we can. You're in a position now where you've got a ton of data yourself. What's it like at the Federal Reserve.Just this idea of flying blind without having that official data. What does that mean. On the margin, they can still use private sources and they can talk to businesses.The sense is that hiring is sluggish. I think you hear that from business. You also hear from business.We're not we may be belt tightening, but we're not firing significantly either. And so the reason t ...

Let's get you to the region with MSNBC senior White House reporter Von Hillyard in South Korea ahead of tomorrow's summit. Also with us, Axio's chief economic correspondent Neil Irwin. Von, tell us more about these latest economic agreements and the president's message this morning.>> Right. This was a big 24 hours for him in Japan, meeting their new conservative first ever female prime minister, named prime minister by their parliament just literally last week. and the prime minister Sai Takahichi.She made ...

Core Insights - Carter's plans to close 150 stores across North America by 2028 due to financial strain from tariffs [1][5] - The company will reduce its office workforce by 300, representing a 15% cut, by the end of 2025 [1] - The annual gross pre-tax impact of additional import duties is estimated to be between $200 million and $250 million [2] Financial Performance - In the third quarter of 2025, net sales decreased by 0.1% to $757.8 million, down from $758.5 million in the same period of the previous fiscal year [2] - The US wholesale segment saw a decline of 5.1%, while gains were noted in US retail and international segments [3] - Operating income fell by 62.2% to $29.1 million, with operating margin shrinking to 3.8% from 10.2% a year earlier [3] Net Income and Future Outlook - Net income for the quarter was $11.6 million, or $0.32 per diluted share, compared to $58.3 million, or $1.62 per diluted share, in the third quarter of 2024 [4] - The company anticipates additional charges in the fourth quarter related to severance and outplacement services, estimated between $4 million to $5 million [5] - Planned store closures are expected to impact stores contributing approximately $110 million in annual net sales [6] Strategic Adjustments - Carter's is adjusting its sourcing strategy, with countries like Vietnam, Cambodia, Bangladesh, and India expected to account for 75% of product sourcing spend in fiscal 2025, while China's share will drop to less than 3% [6]

Core Insights - Inflation remains persistently high, indicating ongoing economic challenges [1] - Tariffs may not be temporary, suggesting potential long-term impacts on trade and pricing [1] - Wage pressures are increasing, which could affect labor costs and consumer spending [1] Inflation - Inflation is described as "stubbornly high," reflecting a significant concern for the economy [1] Tariffs - The article suggests that tariffs might not be temporary, which could lead to sustained higher costs for businesses and consumers [1] Wage Pressures - Rising wage pressures are noted, indicating that companies may face increased labor costs, impacting profitability and pricing strategies [1]