We're joined on Bloomberg TV and radio by Republican Senator Rand Paul of Kentucky. Senator, it's great to have you back on Bloomberg. Welcome.Thanks, Robert. Absolutely. I'm going to start with the government shutdown, which is, of course, driving so much of the conversation here in Washington, D.C. And you're in a unique situation. You're standing alone among Republicans in the Senate.Are you. The last debt and deficit hawk among Republicans in the upper chamber. Feels that way sometimes.Yeah. You know, t ...

Core Points - President Trump defends tariffs as a necessary correction to trade imbalances, asserting that the U.S. will no longer be exploited by other nations [1][2] - The U.S.-Canada trade relationship is significant, with Canada being America's second-largest trading partner and its largest foreign investor [5][7] - Tariff revenues have reached record levels, totaling $215.2 billion for fiscal year 2025, with August and September alone contributing $62.6 billion [8][9] Trade Relations - The U.S.-Canada trade relationship was valued at over $762 billion last year, with Canada depending on the U.S. for more than 75% of its exports and nearly 50% of its imports [7] - U.S. exports to Canada were approximately $350 billion in 2024, highlighting the depth of economic ties [7] Tariff Revenues - Tariff revenues have shown a steady increase, rising from $17.4 billion in April to $29 billion in July [9] - The Supreme Court is currently reviewing the legality of Trump's tariffs, which are a central aspect of his economic policy [12][14] Business Impact - American businesses pay import taxes directly, which are often passed on to consumers through higher prices, indicating that consumers bear much of the tariff burden [11]

Tariffs, higher costs and Chinese retaliation hit hard https://t.co/l4uWKRDWW3 ...

The UK’s steel sector warned of a potentially existential crisis after the European Union proposed raising tariffs to shield its own ailing sector https://t.co/O1X1EAFpBT ...

Core Insights - Tariffs are exerting additional pressure on commercial construction budgets, as highlighted by new research from Cushman & Wakefield [1] Group 1: Impact of Tariffs - The imposition of tariffs is leading to increased costs in the commercial construction sector, affecting overall project budgets [1] - Research indicates that these tariffs are contributing to a rise in material costs, which is a significant concern for construction firms [1] Group 2: Industry Response - Companies in the construction industry may need to reassess their budgeting strategies to accommodate the rising costs due to tariffs [1] - The research suggests that firms could explore alternative materials or suppliers to mitigate the financial impact of tariffs [1]

Core Points - The meeting between President Trump and Canadian Prime Minister Mark Carney is expected to be tense due to ongoing trade tensions and tariffs imposed by the U.S. on Canadian goods [1][2] - Canada has been significantly affected by U.S. tariffs on steel, aluminum, lumber, and trucks, with no resolution in sight [2][10] - The U.S. is leveraging its strong economy against Canada, which is facing economic struggles, to renegotiate trade agreements, particularly the USMCA [3][15] Trade Relations - The U.S. is reviewing the USMCA ahead of the 2026 deadline, indicating a shift in trade negotiations and rules [3][15] - Canada’s economy is described as being in turmoil, with a widening goods trade deficit and collapsing exports, which gives the U.S. leverage in negotiations [16][17] - The Canadian agricultural market, particularly in the egg sector, is criticized for its supply management system, which is seen as detrimental to Canadian consumers [9][10] Economic Impact - Canada’s residential housing market constitutes 43% of its GDP, highlighting its economic vulnerability [13] - The Canadian economy is described as being in "free fall," with an overblown housing market posing risks for future stability [14] - The U.S. aims to negotiate lower prices for steel and lumber to support affordable housing and manufacturing, which are critical for its own economy [12][15]

Core Insights - Steel Dynamics, Inc. (NASDAQ: STLD) has experienced a moderate performance over the past year, with a stock price increase of approximately 9% [1] - The company is influenced by two tariff factors: higher steel and aluminum prices enhance the competitiveness of domestic steelmakers, while tariffs have a counteracting effect [1] Company Performance - The stock has added about 9% over the past year, indicating a stable performance in a fluctuating market [1] - The interplay of tariffs and commodity prices is critical in determining the company's market position and profitability [1] Industry Context - The domestic steel industry is affected by external tariff policies, which can either bolster or hinder competitiveness depending on market conditions [1]

Core Insights - McCormick & Company, Incorporated (MKC) reported third-quarter fiscal 2025 results showing volume-led growth and resilience despite a challenging cost environment, with both earnings and sales increasing year over year and surpassing the Zacks Consensus Estimate [1] Financial Performance - Adjusted earnings per share rose to 85 cents, up from 83 cents in the prior year, exceeding the Zacks Consensus Estimate of 81 cents, driven by higher operating income and disciplined cost management, although gross margin softened due to rising commodity costs and tariffs [2] - Net sales reached $1,724.9 million, a 3% increase year over year, including a 1% positive currency impact, beating the consensus mark of $1,715 million; organic sales grew 2%, supported by volume growth of over 1% and a 1% contribution from pricing [3] - Gross profit for the quarter was $645.1 million, down from $649.9 million in the previous year, with gross margin contracting 130 basis points to 37.4%; adjusted gross margin also contracted 120 basis points due to elevated input costs [4] Segment Performance - Consumer segment sales advanced 4% year over year to $973 million, with organic sales growing 3% driven by improved volume and mix; adjusted operating income rose 4% to $194 million [6] - Flavor Solutions segment sales increased 1% to $752 million, with organic sales up 1% on pricing; adjusted operating income dipped 2% to $100 million due to higher input costs and tariffs [7] Financial Health - McCormick ended the quarter with cash and cash equivalents of $94.9 million, long-term debt of $3.1 billion, and total shareholders' equity of $5.8 billion; year-to-date operating cash flow was $420.2 million, with expectations for robust cash generation in fiscal 2025 [8] Future Outlook - The company reiterated its sales growth outlook for fiscal 2025 while lowering profitability guidance due to rising commodity costs and tariffs, expecting net sales growth of 0-2% [9][10] - Adjusted EPS is now projected between $3.00 and $3.05, indicating 2-4% year-over-year growth, down from the previous expectation of $3.03 to $3.08 [11]

Tariffs and Competitive Advantage - Amazon hasn't felt significant tariff pressure due to heavy inventory and its marketplace structure [2] - Amazon's marketplace has a structural advantage because 60% of items are sold by third-party sellers who price competitively [2][9] - Amazon is relatively well insulated from the impact of tariffs due to its marketplace model [9][10] Prime Day and Holiday Season - October Prime Day is aimed at capturing wallet share for the holiday season, unlike the June/July event which tests logistics [4][10] - The analyst believes that Amazon is trying to capture as much wallet share heading into the holiday season [4] - The analyst dismisses misleading headlines about Prime Day orders being down year-over-year, maintaining a positive outlook on Amazon [11] - Prime Day remains a significant revenue catalyst for Amazon [10] AI and Technology - Amazon is heavily invested in Anthropic in the AI space [5] - Amazon is well-positioned to capitalize on AI, though it's less associated with OpenAI compared to some peers [6] - Amazon is expected to have the technology to maximize e-commerce revenue, including potential AI agents or instant shopping features [15] Stock Performance and AWS - Amazon's year-to-date stock performance is flat, underperforming some AI-related stocks [5] - Strength in Amazon Web Services (AWS) revenue in the September quarter could drive a stock rally in the back half of the year [16][17] - The analyst has a buy rating on Amazon with a $272 price target [17] Retail Competition - Amazon is trying to compete more on value by offering a $5 grocery option [13] - Amazon benefits from a core consumer with a higher income compared to Dollar General [13]

Core Insights - Amazon is currently not feeling significant pressure from tariffs due to heavy inventory built in anticipation of these tariffs [2][3] - The company's marketplace model, where 60% of items are sold by third-party sellers, provides a structural advantage that helps maintain competitive pricing [2][9] - Prime Day in October is viewed as a strategic move to capture consumer spending ahead of the holiday season, contrasting with the earlier Prime Day which focused on logistics testing [4][10] Financial Performance - Year-to-date, Amazon's stock performance is flat, underperforming compared to other tech stocks, particularly those heavily involved in AI [5][16] - The company has made favorable comments regarding the impact of tariffs in its second-quarter earnings call, indicating resilience in its retail position [12] Competitive Landscape - Amazon's competitive advantage is highlighted against retailers like Dollar General, as Amazon's core consumers tend to have higher incomes [13] - The company is actively trying to compete on value, such as offering $5 grocery items [13] Technology and Innovation - Amazon is expected to leverage technology, including AI, to enhance e-commerce revenue, although the effectiveness of chatbot shopping remains uncertain [14][15] - The performance of Amazon Web Services (AWS) in comparison to competitors like Microsoft Azure and Google Cloud will be crucial for potential stock rallies in the latter half of the year [16]