29 May 2025 Emerging bond dynamic and regime change Toronto The tariff threat to the tariff retreat has now been reduced to a two-day cycle. Donald Trump threatened Europe with a higher 50% tariff last Friday and then on Sunday extended the deadline for Europe to come to an agreement from 1 June to 9 July. This latest twist and turn will have further convinced investors of what many were already assuming, based on GREED & fear's meetings with investors in North America this week. That is, that the 47th Pres ...

Group 1: Nike (NKE) - Nike has experienced weak quarterly results due to soft demand for its products, particularly impacted by initial China tariff announcements [3][4] - Despite these challenges, Nike's shares have rebounded 9% over the past month, outperforming the S&P 500 following a recent de-escalation announcement regarding tariffs [3] - The earnings outlook for Nike's current fiscal year has been negative but is beginning to shift positively, although investors are advised to remain cautious until there is further clarity on the tariff situation [5] Group 2: Target (TGT) - Target's shares have struggled in 2025, down nearly 30%, underperforming both the S&P 500 and many peer retailers, primarily due to a less favorable product mix [9][10] - The company's inventory has been heavily weighted towards discretionary items, which have seen declining consumer interest post-pandemic, leading to a 5.7% year-over-year decline in comparable store sales [11] - Target's recent quarterly results have not provided the relief shareholders were hoping for, indicating ongoing challenges in sales growth [11][14] Group 3: Overall Market Context - Both Nike and Target have faced significant pressure in recent years, with weak quarterly results attributed to suboptimal product assortments for their consumers [14] - Investors are advised to wait for further clarity on the tariff issues and the ability of both companies to re-engage their consumer base before making investment decisions [14]