Trade & Tariffs - Swiss watchmakers anticipate a US tariff deal to avoid inventory shortages in America [1]

Market Overview - U.S. equity markets closed higher, driven by optimism over potential monetary easing despite concerns about softening labor data [1][2] - The S&P 500 rose by 0.83% to 6,502.08, the Nasdaq Composite increased by 0.98% to 21,707.69, and the Dow Jones Industrial Average gained 350.06 points, or 0.77%, to settle at 45,621.29 [1] Economic Data - The ADP private payrolls report indicated only 54,000 jobs were added in August, significantly below the revised 106,000 jobs in July, suggesting a slowdown in job creation [2] - Despite the weak employment numbers, stock prices increased as traders interpreted the data as supportive of a potential rate cut by the Federal Reserve [2] Focus on Financially Resilient Stocks - In the current macroeconomic environment, it is crucial to focus on companies with strong financial fundamentals beyond just sales and earnings [3] - A critical analysis of a company's financial background, including coverage ratios, is essential for informed investment decisions [4] Interest Coverage Ratio - The Interest Coverage Ratio is a key indicator of a company's ability to pay interest on its debt, calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense [5][6] - Companies with strong interest coverage ratios, such as Vertiv Holdings, Stride, Ralph Lauren, and The Cheesecake Factory, are highlighted for their financial resilience [10] Company Performance - Vertiv Holdings: Zacks Consensus Estimate indicates sales and EPS growth of 24.5% and 34% respectively, with shares advancing 75.2% in the past year [14] - Stride, Inc.: Expected sales and EPS growth of 11% and 5.9% respectively, with a stock increase of 104.1% in the past year [15] - Ralph Lauren Corporation: Anticipated sales and EPS growth of 6% and 19.8% respectively, with shares rising 85.6% in the past year [16] - The Cheesecake Factory: Projected sales and EPS growth of 5.1% and 9.6% respectively, with a stock increase of 63.1% in the past year [17]

Company Performance - Kering, owner of Gucci, is at one of the lowest points in its history [1] - Francois-Henri Pinault's two-decade-long reign at Kering is ending [1]

Breaking: Giorgio Armani, the designer and business mogul who brought subtle Italian luxury to the world stage and conquered Hollywood, has died. He was 91. https://t.co/pzBbemun5y ...

Group 1 - Burberry is set to re-join the U.K.'s FTSE 100 index later this month, one year after being relegated from it [1] - The upgrade is part of a quarterly reshuffling at the London Stock Exchange Group (LSEG) and reflects Burberry's recovery under CEO Joshua Schulman's leadership [1] - Burberry shares were down approximately 1.1% by 8:40 a.m. London time [2] Group 2 - Burberry fell out of the FTSE 100 in September 2024, ending a 15-year presence in the index [2] - The company will return to the FTSE 100 alongside Metlen Energy & Metals, with changes effective from September 22 [2] - Homebuilder Taylor Wimpey and student accommodation business Unite Group will exit the FTSE 100 and move to FTSE 250 [3]

Core Viewpoint - The pricing of the Italian luxury brand Max Mara in China is reported to be more than double that in Europe, leading to controversy on social media [1] Group 1: Pricing Discrepancy - Max Mara's pricing strategy in China results in prices that are over 100% higher than those in Europe [1] - The significant price difference has sparked discussions and debates among consumers on social media platforms [1] Group 2: Store Response - A store manager indicated that staff are not informed about overseas pricing, but domestic products typically have promotional discounts that can make them more affordable [1] - The manager also mentioned that while purchasing through purchasing agents may offer better prices, the after-sales service may not be as convenient as buying directly from the store [1]

A year after losing its spot in Britain’s blue-chip benchmark, Burberry is returning to the UK’s stock-market elite https://t.co/9VvWzgGGLg ...

Luxury Goods & Sports - High-dollar luxury watches and custom diamond jewelry are being sported by top tennis players at the US Open [1] - The jewelry is worth tens of thousands of dollars [1]

European luxury stocks got a boost on Tuesday after HSBC Holdings upgraded sector heavyweights LVMH and Kering SA on the expectation of a Chinese consumer comeback https://t.co/EphKcsuw13 ...

Heard on the Street: The best investment in the luxury-goods industry over the last five years was American—not European https://t.co/L0YsK4jrcf ...