Brazil now faces major tariffs in response to its unprecedented efforts to interfere in the rights and freedoms of our American citizens and others with censorship, repression, weaponization, judicial corruption and targeting of political critics in the United States. I have a little problem saying this, because I must tell you, I was walking in and the leader of Brazil was walking out. We saw him and I saw him. He saw me and we embraced.And then I'm saying, can you believe I'm going to be saying this in ju ...

Core Insights - Tariffs are significantly impacting lululemon athletica inc.'s profitability, with expectations of a 220-basis-point hit to gross margin in fiscal 2025, translating to nearly $240 million in additional expenses [1] - The removal of the U.S. de minimis exemption has added costs to lululemon's e-commerce model, compounding the effects of higher reciprocal tariff rates [1] - The company has revised its full-year 2025 outlook, now anticipating a gross margin decline of 300 basis points, up from a previous estimate of 110 basis points [3] Financial Performance - In Q2 fiscal 2025, lululemon's gross margin contracted by 110 basis points year-over-year to 58.5%, primarily due to higher markdowns and tariffs [2] - Earnings per share (EPS) of $3.10 exceeded estimates, but revenues of $2.53 billion fell short, with flat U.S. sales and a 3% decline in comparable sales [2] - Operating margin decreased by 210 basis points to 20.7%, with SG&A expenses rising by 9% as the company invested in marketing and digital initiatives [2] Market Position and Competitors - lululemon's shares have dropped 54.7% year-to-date, compared to a 28.6% decline in the industry [7] - Competitors like Ralph Lauren and NIKE are also facing margin pressures due to tariffs, but are employing different strategies to mitigate these impacts [4][5][6] - Ralph Lauren has managed to expand its gross margin through higher retail prices and reduced discounting, while NIKE's margins are under pressure from promotional activities and supply chain challenges [5][6] Future Outlook - The company expects continued margin pressures in fiscal 2026, projecting a net $320 million impact despite ongoing cost mitigation efforts [1][3] - The Zacks Consensus Estimate indicates an 11.1% year-over-year decline in fiscal 2025 earnings, with a slight growth of 1.6% expected in fiscal 2026 [10] - Current valuation shows lululemon trading at a forward price-to-earnings ratio of 13.19X, higher than the industry average of 11.39X [9]

The OECD on Tuesday raised its growth forecast for the U.S. economy in 2025 on the back of AI investments, but noted that tariffs and lower net immigration are taking a toll and would lead to slowing growth next year. https://t.co/4EEcYi2CMG ...

The worst damage to the U.S. economy from the trade wars might be over, but businesses are still adjusting to higher tariff-related costs and a slowdown in customer demand that's causing them to cut back on hiring. ...

Core Insights - U.S. business activity has slowed for the second consecutive month in September, with firms facing increased costs due to tariffs but not passing these costs onto consumers, which is positive for inflation outlook [1][2] Group 1: Business Activity - The S&P Global's flash U.S. Composite PMI Output Index decreased to 53.6 in September from 54.6 in August, indicating a slowdown in both manufacturing and services sectors [2] - The measure of prices paid by businesses for inputs rose to 62.6 from 60.8, with tariffs cited as the main cause of cost increases [2] - The gauge of prices charged by businesses for goods and services fell to 56.0 from 58.3, as firms struggled to pass on higher costs due to weak demand and competition [2][3] Group 2: Inflation and Economic Outlook - Despite recent inflation increases, prices have not surged as anticipated following the implementation of tariffs, with consumers becoming more selective [2] - The number of companies able to raise selling prices has decreased, indicating squeezed margins but suggesting moderation in inflation [3] - The Federal Reserve has resumed cutting interest rates, lowering the benchmark overnight interest rate by 25 basis points to a range of 4.00%-4.25% and projecting continued reductions through 2025 [3]

Welcome to the program. So we've got a range of topics to work through. First of all, given the Federal Reserve and Chair Jay Powell is in focus later on this afternoon, a man who, of course, you know well, we'd love your reaction to the latest pressure on the Federal Reserve and the daylight, the division within the committee right now and the daylight between the Governor Meyer and coming out of the White House and everybody else.David, what's your reaction to that as it builds through the summer and as w ...

Welcome to the program. So we've got a range of topics to work through. First of all, given the Federal Reserve and Chair Jay Powell is in focus later on this afternoon, a man who, of course, you know well, we'd love your reaction to the latest pressure on the Federal Reserve and the daylight, the division within the committee right now and the daylight between the Governor Meyer and coming out of the White House and everybody else.David, what's your reaction to that as it builds through the summer and as w ...

Economic Outlook - The Chicago Federal Reserve President expressed caution regarding further interest rate cuts as the U.S. economy faces slower growth and a weaker labor market [1][2] - The Federal Open Market Committee (FOMC) voted 11-1 to lower the federal funds rate to a range of 4%-4.25%, marking the first easing of the year [2][3] Inflation and Interest Rates - Inflation has remained above the Fed's 2% target for over four and a half years, prompting a careful approach to aggressive rate cuts [2][4] - The FOMC's projections suggest a neutral funds rate around 3.1%, indicating potential for further cuts in the benchmark rate [3][4] Labor Market Insights - Recent trends show a significant softening in hiring, although the unemployment rate remains low at 4.3% historically [4] - The Chicago Fed introduced a labor market monitor that forecasts the unemployment rate and includes real-time labor statistics, indicating stability in the labor market [5][6]

Volvo expanding production operations in the United States and Philo joins us now with the company's CEO. Good morning, Phil. >> Good morning, Andrew.Hoken Samuelson back in the saddle again and we're talking again. Uh, now that you've returned as CEO of this company, um, we're going to talk about what your future plans are here in a bit. How did Volvo lose its way over the last couple of years.Yes, sales are up 1%, but what's been limiting your your potential. >> No, I wouldn't say we lose our way. maybe a ...

Core Viewpoint - Investors are closely monitoring upcoming earnings reports from AutoZone and Micron Technology to assess the effects of tariffs and a decelerating labor market [1] Company Summaries - AutoZone's earnings report is anticipated to provide insights into how the company is navigating the challenges posed by tariffs and labor market conditions [1] - Micron Technology's earnings will be scrutinized for indications of the semiconductor industry's response to external economic pressures, particularly tariffs [1] Industry Insights - The overall sentiment in the market is cautious as investors seek to understand the broader implications of tariffs and labor market trends on key sectors [1]