White House trade adviser Peter Navarro discusses President Trump's tariff policy following the House vote to end levies on Canadian imports. He also says JPMorgan CEO Jamie Dimon needs to cap credit card interest rates. ...

Question-and-Answer SessionAbsolutely. So maybe we'll just kick off at the top of the house. Again, we find ourselves in a cross current of geopolitical uncertainty, tariff policy, but at the same time, it feels like corporates are feeling good to start the year, deregulation across sectors, potential for lower rates. So maybe let's start with how your consumer, corporate, institutional and wealth clients are considering these factors as they think about activity levels in '26?Michael SantomassimoSenior EVP ...

Financial Data and Key Metrics Changes - For Q2 2026, net sales were $118.2 million, reflecting a 9% increase from $108.5 million in the prior year quarter, marking the ninth consecutive quarter of year-over-year sales growth [12] - GAAP operating income for the quarter was $9.0 million, or 7.6% of sales, compared to $11.7 million in the prior year quarter, which included a $5 million gain from the sale of a manufacturing facility [12][13] - The current quarter's operating income increased by 35% compared to adjusted operating income of $6.7 million or 6.1% of sales in the prior year quarter [13] Business Line Data and Key Metrics Changes - The increase in sales was primarily driven by higher unit volume in sourced soft seating products and pricing from tariff surcharges, partially offset by lower unit volume in made-to-order soft seating products and Homestyles branded ready-to-assemble products [12] - Sales order backlog at the end of the period was $82.4 million, which includes estimated tariff surcharges [12] Market Data and Key Metrics Changes - Industry demand remains uneven, with consumer behavior showing variability influenced by economic uncertainty and inflation concerns [8] - Feedback from retail partners indicates that consumer engagement fluctuates, impacting overall industry demand [8] Company Strategy and Development Direction - The company is focusing on agility, discipline, and long-term value creation, with a strong emphasis on new product introductions and strategic account growth [4][5] - Flexsteel is actively evaluating cost reduction opportunities and alternative supply chain options to strengthen its long-term position [10] Management's Comments on Operating Environment and Future Outlook - The management acknowledges that the U.S. economy shows resilience, but housing activity and discretionary spending remain inconsistent, weighing on overall industry demand [8] - The company expects some margin dilution in the second half of fiscal 2026 due to higher cost inventory burdened with tariffs, but remains confident in its ability to manage costs and protect margins [15][31] Other Important Information - The company ended the quarter with a cash balance of $36.8 million and working capital of $126 million, with no bank debt [14] - The increase in working capital was driven by higher cost inventory due to tariffs and an intentional increase in safety stock of top-selling products [15] Q&A Session Summary Question: Can you talk about unit volumes and pricing as far as how that impacted the quarter? - The tariff revenue in the quarter was approximately $9.5 million, with unit volumes relatively flat compared to the prior quarter, although some categories saw increases while others experienced declines [19][20] Question: What portion of your sales is now coming from new products? - Over the last 6-8 quarters, 30%-40% of overall sales have been derived from new products, which is a substantial driver for gaining market share [22] Question: Are there additional retailers that you think you may be underpenetrated in? - The company has identified about 20 large independent retailers as strategic accounts, with potential for significant growth through existing and emerging relationships [25][26] Question: How do you expect to offset tariff impacts going forward? - The company has been able to mitigate tariff impacts through pricing actions and cost savings initiatives, but expects some margin dilution in the back half of the year due to higher cost inventory [29][31] Question: Was there anything unusual regarding the tax rate this quarter? - There was a slight impact related to foreign taxes, but the tax rate going forward is expected to align more closely with the full-year tax rate [32]

Core Insights - General Motors is shifting vehicle production from China and Mexico to a factory in Kansas, ending the production of the Chevrolet Bolt EV at the Fairfax Assembly Plant [1][4] - The economic and political landscape, influenced by the Trump administration's tariff policies and the cessation of the federal EV tax credit, has increased production costs for vehicles made in China and Mexico [2] - The production of the 2027 Chevy Bolt EV is expected to conclude in approximately 18 months, with its price set at $29,990, making it one of the most affordable EVs in the U.S. market [3] Production Changes - The next-generation Buick Envision will be produced at the Kansas facility starting in 2028, while the gas-powered Chevrolet Equinox will transition from Mexico to Kansas by mid-2027 [4] - GM has indicated that the Bolt will have a limited production run, with plans already in place for the Equinox to replace it at the Fairfax plant [5] Future Investments - GM has committed to future investments in the Fairfax Assembly Plant for the development of new affordable EVs, although the timeline for these investments remains uncertain [5]

Group 1: Dollar Index and Market Reactions - The dollar index (DXY00) rose by +0.18% on Wednesday after recovering from early losses, influenced by President Trump's comments on tariffs related to Greenland [1][4] - Initial concerns about potential higher tariffs from President Trump on European countries pressured the dollar, coinciding with a significant decline in US pending home sales [2][3] - The dollar continues to face underlying weakness due to expectations of a -50 basis point interest rate cut by the FOMC in 2026, while other central banks are expected to adjust rates differently [5][6] Group 2: Economic Indicators - US pending home sales in December fell by -9.3% month-over-month, marking the largest decline in 5.5 years, which was worse than the expected -0.3% [3] - US construction spending in October increased by +0.5% month-over-month, surpassing expectations of +0.1% [3] Group 3: Central Bank Policies - The Federal Reserve is increasing liquidity in the financial system by purchasing $40 billion a month in T-bills, contributing to dollar pressure [6] - The market is currently pricing in a 5% chance of a -25 basis point rate cut at the FOMC's next meeting scheduled for January 27-28 [4]

Core Points - President Trump claimed victory over inflation, stating that the U.S. has "virtually no inflation" and that consumer prices are decreasing rapidly [2] - Federal data contradicts Trump's claims, indicating that inflation remains elevated, with the consumer price index at a 2.7% annual rate as of December 2025 [3] - Core CPI, which excludes volatile food and energy prices, is at 2.6%, indicating persistent inflation concerns for policymakers [4] Inflation and Tariffs - Trump's tariff policy is contributing to upward pressure on inflation, complicating claims of victory over inflation [5] - The average effective tariff rate in the U.S. is 17.5%, the highest since 1932, significantly up from around 2% at the beginning of 2025 [6] - Consumers are expected to pay an additional $1,300 to $1,700 in 2026 due to current tariff rates compared to pre-2025 levels [7] Consumer Price Trends - Mortgage rates have decreased to an average of 6.21%, down from over 7% in January 2025, translating to approximately $1,800 in annual savings on a $300,000 loan [10][11] - National rent index fell by 0.8% in December, with an overall decline of 1.3% year-over-year, now averaging $1,356 [12] - Car payments have increased, with the average monthly payment for new vehicles reaching $772, up from $754 at the end of 2024 [14][15] Energy and Grocery Prices - Gasoline prices have decreased by nearly 10% to an average of $2.81 per gallon since Trump took office [16] - Electricity prices have surged nearly 7% over the past year, driven by increased demand from data centers [18] - Grocery prices have risen by 2.4% year-over-year, with specific items like beef and coffee seeing significant price increases of 16% and 20%, respectively [19][20] Airfare Trends - Airline fares have declined by more than 3% year-over-year, supported by lower jet fuel prices [21][22] - The price data does not account for ancillary fees, which can significantly impact travelers' budgets [23]

Group 1: Report Industry Investment Rating - No relevant content found Group 2: Core Viewpoints of the Report - Short - term, with weakened macro - level driving factors, precious metal prices are expected to fluctuate weakly at high levels and price volatility may remain high. However, due to uncertainties such as the Iran geopolitical situation and tight silver spot, prices are difficult to decline continuously. Long - term, the upward logic of precious metals remains unchanged, and the strategy is to buy on dips or sell slightly out - of - the - money put options [3]. - Medium - to - long - term, the Fed is still in an easing cycle, global geopolitical uncertainties will continue, and the credit risk of the US dollar will increase. The allocation demand of global central banks, institutions, and residents is expected to continue, so the medium - to - long - term center of gold prices will likely move up. Long - term investors are advised to buy on dips [4]. Group 3: Summary by Relevant Catalogs 1. Price Data - On January 16, 2026, compared with January 15, 2026, London gold spot decreased by 0.2% to $4597.99 per ounce, London silver spot increased by 0.9% to $90.51 per ounce, COMEX gold decreased by 0.2% to $4601.50 per ounce, COMEX silver increased by 1.1% to $90.32 per ounce, AU2602 decreased by 0.3% to 1032.32 yuan per gram, AG2602 decreased by 0.7% to 22555 yuan per kilogram, AU (T + D) decreased by 0.2% to 1030.20 yuan per gram, and AG (T + D) decreased by 0.5% to 22541 yuan per kilogram [3]. - Regarding price spreads, on January 16, 2026, compared with January 15, 2026, the gold TD - SHFE active price spread increased by - 28.9% to - 2.12 yuan per gram, the silver TD - SHFE active price spread increased by - 77.8% to - 14 yuan per kilogram, etc. [3]. 2. Position Data - On January 16, 2026, compared with January 15, 2026, the gold ETF - SPDR increased by 1.01% to 1085.67 tons, the silver ETF - SLV increased by 0.07% to 16073.05851 tons. COMEX gold non - commercial long positions increased by 7.92% to 296183 contracts, non - commercial short positions decreased by 3.97% to 44945 contracts, and non - commercial net long positions increased by 10.37% to 251238 contracts. COMEX silver non - commercial long positions decreased by 0.10% to 47337 contracts, non - commercial short positions decreased by 15.66% to 15277 contracts, and non - commercial net long positions increased by 9.53% to 32060 contracts [3]. 3. Inventory Data - On January 16, 2026, compared with January 15, 2026, SHFE gold inventory decreased by 0.10% to 100053 kilograms, SHFE silver inventory decreased by 1.81% to 626843 kilograms. COMEX gold inventory increased by 0.01% to 36135901 troy ounces, COMEX silver inventory decreased by 0.98% to 429156441 troy ounces [3]. 4. Interest Rate/Exchange Rate/Stock Market Data - On January 16, 2026, compared with January 15, 2026, the US dollar/Chinese yuan central parity rate increased by 0.02% to 7.01, the US dollar index increased by 0.03% to 99.37, the 2 - year US Treasury yield increased by 0.84% to 3.59%, the 10 - year US Treasury yield increased by 1.68% to 4.24%, the VIX increased by 0.13% to 15.86, the S&P 500 decreased by 0.06% to 6940.01, and NYMEX crude oil increased by 0.08% to 59.22 [3]. 5. Market Review and Influencing Factors - On January 16, the main contract of Shanghai gold futures closed down 0.31% to 1032.32 yuan per gram, and the main contract of Shanghai silver futures closed down 1.26% to 22483 yuan per kilogram [3]. - The sharp adjustment of precious metal prices in the night session last Friday was due to: the cooling of the Iran situation reducing safe - haven demand; the change of the most likely Fed chair candidate hitting market rate - cut expectations; the suspension of new tariffs on critical minerals imports easing silver's tariff risk; and the Shanghai Futures Exchange's risk - control measures on silver [3].

Core Insights - The First Trust RBA American Industrial Renaissance ETF (AIRR) achieved a 30% return in 2025, significantly outperforming the S&P 500's 16% gain, due to its concentrated investment in small and mid-cap industrial companies aligned with the onshoring theme [1][2]. Performance Highlights - AIRR's top three holdings, Comfort Systems USA, C.H. Robinson, and MasTec, each experienced gains exceeding 60%, with Comfort Systems USA surging 123% driven by demand for HVAC and building systems from new domestic manufacturing facilities [2][4]. - The fund's concentrated exposure, with 91% of assets in industrials and only 52 holdings, allowed it to capitalize on the onshoring thesis effectively [1][7]. Tariff Policy Impact - The future performance of AIRR is heavily dependent on the continuation and scope of tariff policies from the Trump administration, which incentivize domestic manufacturing by increasing the cost of foreign production [5]. - Monitoring tariff announcements and potential expansions beyond China is crucial, as any indication that tariffs are temporary could weaken the long-term investment case for domestic industrial growth [6]. Holdings and Rebalancing - AIRR's concentration risk is notable, with the top 10 positions accounting for approximately 36% of assets, necessitating quarterly rebalancing to maintain exposure to small and mid-cap companies with positive earnings estimates [7].

Investment Announcements - Apple has announced a $600 billion investment in U.S. manufacturing and workforce training [1] - Johnson & Johnson plans to invest $55 billion in U.S. manufacturing, research and development, and new technologies [1] - Hyundai is investing $26 billion in the U.S. to enhance automotive production capacity and localize key components [1] - Toyota has announced plans to invest up to $10 billion in its U.S. operations over the next five years [4] Economic Outlook - Despite criticism of Trump's tariff policies, major companies continue to view the U.S. as a reliable place for investment, indicating strong confidence in the U.S. market [2] - The manufacturing sector has not yet seen a boom, with U.S. manufacturing activity contracting for the ninth consecutive month in November [3] - Trump claims that the return of factories from countries like Germany, Japan, and Canada is driven by companies wanting to avoid tariffs, leading to significant capital investments [3] Industry Trends - The auto industry is highlighted as a key sector experiencing a revival due to tariff policies, with companies returning to the U.S. for production [4][5] - Trump asserts that the U.S. is on the verge of unprecedented economic growth, attributing this to his tariff policy [5]

Core Viewpoint - iRobot has filed for Chapter 11 bankruptcy protection, indicating significant financial distress and a plan to be acquired by Picea Robotics, its primary manufacturer [1][6]. Financial Performance - iRobot's revenue in the third quarter was $145.8 million, a decrease from $193.4 million year-over-year, reflecting a 24.6% decline [7]. - The company reported an operating loss of $17.7 million, contrasting with a profit of $7.3 million in the same quarter of the previous year [7]. Market Impact - Following the bankruptcy announcement, iRobot's stock price fell over 65% from $4.32, indicating a severe negative reaction from the market [4]. - The company faced challenges due to tariff policies, resulting in increased costs of $23 million and a 33% drop in U.S. sales in the third quarter compared to the previous year [5][6]. Strategic Outlook - CEO Gary Cohen emphasized that the transaction with Picea Robotics aims to secure iRobot's long-term future and maintain continuity for consumers and partners [2]. - iRobot plans to continue operations during the bankruptcy proceedings, including maintaining its app functionality and customer support [4].