Financial Data and Key Metrics Changes - Average daily sales increased by 4% year over year, reaching approximately $966 million for Q1 2026, primarily driven by a price increase of 4.2% [11][20] - Gross margin for the quarter was 40.7%, consistent with expectations and flat compared to the prior year [15][22] - Reported operating margin was 7.9%, while adjusted operating margin was 8.4%, slightly above the midpoint of expectations [16][23] - GAAP EPS was $0.93, up from $0.83 in the prior year, and adjusted EPS was $0.99, compared to $0.86, reflecting a 15% improvement [23] Business Line Data and Key Metrics Changes - Core customer sales grew approximately 6% year over year, while national accounts improved by 3%, and public sector sales declined by 5% due to the federal government shutdown [12][21] - Daily sales in vending increased by 9% year over year, representing 19% of total company sales, while sales to customers with an implant program grew by 13% [21] Market Data and Key Metrics Changes - Demand across primary markets was described as stable, with aerospace remaining strong, while automotive and heavy truck showed some softness [17] - Average daily sales for fiscal December improved approximately 2.5% year over year, despite a month-over-month decline of roughly 20% due to holiday timing and customer shutdowns [18][19] Company Strategy and Development Direction - The company is focused on reconnecting with core customers and optimizing its sales organization to enhance customer experience and cost structure [4][5] - A growth forum is planned to engage approximately 1,400 associates with suppliers, aimed at accelerating growth through collaboration [7][8] - The company aims to maintain a strong culture and improve financial visibility through technology enhancements [9][10] Management's Comments on Operating Environment and Future Outlook - Management described the operating environment as stable, with expectations for continued traction on growth initiatives and price stability [17][30] - Despite challenges in December, management remains confident in achieving mid-single-digit growth for the fiscal year, supported by ongoing productivity initiatives [30] Other Important Information - The company reaffirmed its commitment to reducing greenhouse gas emissions by 15% by 2030 and has been recognized as a best company to work for [10] - Free cash flow for the quarter was approximately $7.4 million, representing about 14% of net income, with expectations of 90% free cash flow conversion for the fiscal year [24] Q&A Session Summary Question: What drove the 4% price increase and expectations for 2Q? - Management indicated that the price increase was in line with expectations, driven by prior price actions and ongoing inflation, particularly in metalworking [32][34] Question: What is the impact of IEEPA tariffs if ruled invalid? - Management noted that there would be an initial hit from lower inventories, followed by benefits as lower-cost inventory is received [36] Question: Clarification on the mid-single-digit growth comment? - Management expressed confidence in outperforming historical seasonal trends due to price and growth initiatives, despite typical seasonality suggesting lower growth [38][40] Question: Insights on public sector sales normalization? - Management expects public sector sales to return to normal levels, with a 50 basis point benefit anticipated in 2Q if no further government shutdown occurs [42] Question: Details on cost measures and service model adjustments? - Management explained that recent cost measures were aimed at optimizing the service organization to align with sales optimization efforts [43][46] Question: Expectations for gross margin and operating expenses in 2Q? - Management anticipates gross margins to be around 40.8% with potential upside, while operating expenses are expected to be variable based on sales growth [48][49]

J P M O R G A N Asia Pacific Economic Research 22 December 2025 Global Data Watch: Asia China's post-tariff export diversification is broader than presumed No place to hide: China's post-tariff export diversification is broader than presumed A recurring theme characterizing 2025 has been that Chinese domestic demand disappointments have been offset by external sector resilience. Even as US tariffs on China at ~32% are among the highest in the world, China's goods exports have grown by 5% in 2025, in line wi ...

“Between December 2021 and November 2025, GeM’s Forward Auction module facilitated auctions worth more than Rs 2,200 crore, conducted over 13,000 auctions, onboarded more than 23,000 registered bidders and enabled participation from over 17,000 auctioneers,” the commerce and industry ministry said in a statement.A forward auction is a digital bidding process through which government departments sell assets such as scrap, e-waste, old vehicles, machinery and leasehold properties, including buildings and lan ...

BANGKOK (AP) — Japan's exports climbed 6% in November from a year earlier, with shipments to the United States rising for the first time since March as uncertainties over tariffs abated following a trade deal with the Trump administration. The preliminary data released Wednesday showed Japan's total imports rose 1.3% last month over a year earlier, leaving a surplus of 322.2 billion yen (about $2.1 billion). Exports to the U.S. rose nearly 9% from the year before as shipments of cars, chemicals and came ...

Group 1 - Russian companies are focusing on expansion opportunities in the Global South despite Western sanctions, as stated by Andrei Kostin, CEO of VTB [1][2] - VTB has been involved in foreign acquisitions of oil companies, including the acquisition of India's Essar Oil, now known as Nayara Energy, in 2017 [2] - Nayara Energy is targeting the domestic Indian market exclusively, with no plans for exports, and continues to operate despite previous sanctions [3] Group 2 - Kostin believes that Russian oil companies like Rosneft and Lukoil will find new opportunities similar to VTB's shift in focus after sanctions [4] - The demand for Russian oil remains strong, and any restrictions that increase oil prices benefit exporters [4] - VTB plans to expand its presence in India by opening an office in Mumbai, recognizing India's potential to increase exports to Russia, particularly in machinery and pharmaceuticals [6]

Summary of J.P. Morgan's 2026 China Economic Outlook Industry Overview - The report focuses on the **Chinese economy** and its outlook for 2026, highlighting challenges and opportunities in various sectors. Key Economic Forecasts - **Real GDP Growth**: Expected to slow from **4.9% in 2025** to **4.4% in 2026** [2][5][22] - **Nominal GDP Growth**: Forecasted at **4.0% in 2025** and **4.2% in 2026** [2][5] - **CPI Inflation**: Projected to rise to **0.6% in 2026** from **0.0% in 2025** [2][5] - **PPI Deflation**: Expected to persist, with a forecast of **-1.3% in 2026** [2][5] - **Policy Rate**: Anticipated to remain stable around **1.4%** [2] Core Insights - **Economic Resilience**: Despite trade war fears, China's economy showed resilience in 2025, with exports and fiscal expansion supporting growth [5][6][9] - **Deflationary Pressures**: Production continues to outpace demand, leading to intensified deflation and a decline in nominal GDP growth to **4.3%** [5][7] - **Investment Trends**: Investment growth is expected to recover, particularly in high-tech manufacturing, but real estate investment is projected to contract by another **10%** [5][40] - **Consumption Growth**: Modest consumption growth is anticipated, with limited support from subsidies and transfers [5][26][33] Policy and Structural Changes - **15th Five-Year Plan**: Emphasizes advanced manufacturing and technology indigenization, with a lukewarm approach to services [13][14] - **Fiscal Policy**: A fiscal impulse of **0.4-0.5% of GDP** is expected, with total bond issuance reaching **14.5 trillion yuan** in 2026 [5][66] - **Monetary Policy**: The PBOC is expected to implement measured monetary easing, including rate cuts and RRR adjustments [70][78] Trade and Export Dynamics - **Export Growth**: Expected to moderate to **3.4% in 2026**, with net exports contributing less to GDP growth [49][48] - **US-China Trade Relations**: The fragile truce in trade relations may impact future export dynamics, with tariffs likely remaining elevated [18][20][51] Risks and Challenges - **Downside Risks**: Include potential bankruptcies due to anti-involution measures, further deterioration in the housing market, and renewed US-China tensions [89] - **Upside Potential**: Larger-than-expected fiscal expansion and stronger policy shifts towards consumption could enhance growth prospects [89] Additional Considerations - **Household Consumption**: Remains low due to high savings rates driven by job insecurity and a weak social safety net [30][33] - **Investment Recovery**: Uneven, with public investment expected to outpace private investment, particularly in high-tech sectors [39][40] This summary encapsulates the critical insights and forecasts from J.P. Morgan's 2026 China Economic Outlook, providing a comprehensive overview of the anticipated economic landscape.

Core Insights - Deere & Company is a significant player in the manufacturing and distribution of equipment for agriculture, construction, and forestry sectors, operating through four main segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services [1] Price Target Adjustments - The consensus price target for Deere has declined over the past year, with the recent average at $543, down from $562.33 in the previous quarter, indicating a more cautious outlook from analysts [2][6] - Analyst Mircea Dobre from Robert W. Baird has set a price target of $487 for Deere, reflecting concerns over cost pressures and slipping earnings estimates [3][6] Upcoming Earnings Report - Deere is preparing to announce its fourth-quarter earnings amidst challenges, with a history of surpassing earnings expectations, but current conditions may complicate this trend [4] - The upcoming earnings report is highly anticipated as it will provide insights into how the company is managing current challenges compared to its competitor, Caterpillar, which is experiencing revenue growth [5][6]

Trade Deal Overview - The U.S. and Switzerland are nearing a trade deal to reduce tariffs imposed by President Trump from 39% to potentially 15% [1][2] - The reduction aims to align Swiss tariffs with those imposed on EU exports to the U.S. [2] Economic Impact - The high tariffs have negatively affected Swiss exports, particularly in key sectors such as watches, jewelry, machinery, chocolate, electronics, and pharmaceuticals [4] - Shares of Swiss companies, including Swatch Group and Richemont, saw an increase following news of the potential tariff reduction [4] Government Response - Swiss officials, including Economy Minister Guy Parmelin, are in regular contact with U.S. authorities regarding the ongoing discussions [3] - The Swiss economy ministry has refrained from commenting on the negotiations, indicating a cautious approach [3]

Core Viewpoint - The potential trade war initiated by President Trump's tariff plans could lead to a significant downturn in the U.S. stock market, with estimates suggesting a drop of up to 20% in the S&P 500 due to heightened tariffs on major trading partners, particularly China [2][5]. Group 1: Tariff Implications - President Trump's proposed tariffs on China could reach as high as 100%, significantly impacting U.S. companies that rely on Chinese imports, such as Walmart, which sources approximately 60% of its merchandise from China [3][5]. - The initial tariff plans included raising tariffs on China to 54%, with discussions of a potential 245% tariff, which would severely affect the economies of major trade partners like Canada and Mexico [2][4]. Group 2: Economic Impact - A trade war with China is expected to have immediate and widespread effects on the U.S. economy, potentially leading to inflation rates similar to the 9% level experienced in mid-2022, which severely diminished consumer purchasing power [2][7]. - The uncertainty surrounding tariff negotiations has created volatility in the stock market, as the unpredictability of presidential decisions complicates forecasts for many companies and industries [7][8]. Group 3: Retaliation Risks - China may retaliate against U.S. companies operating within its borders, which could include major retailers like Starbucks and Walmart, further complicating the trade dynamics and impacting their operations [6][9].

Market Overview - The stock market has shown resilience in June following a significant rally from April lows, with the Nasdaq and S&P 500 maintaining their positions ahead of the second quarter earnings season starting in mid-July [1] - The bullish sentiment is supported by ongoing trade war progress, controlled inflation, and growing corporate earnings [1] Investment Strategy - Investors are encouraged to remain engaged with the market and continue purchasing stocks, even amid bearish sentiment [2] - A recommended approach for stock selection in June includes targeting companies with improving earnings outlooks that achieve a Zacks Rank 1 (Strong Buy) and demonstrate efficient profit generation [2] Return on Equity (ROE) - ROE is a critical metric for assessing a company's ability to generate profits from shareholder equity, calculated as net income divided by shareholder's equity [3] - A higher ROE indicates effective management in creating value and controlling costs, while a decline in ROE may signal potential issues [4] Stock Screening Criteria - The screening process includes several parameters: - Zacks Rank equal to 1, indicating strong earnings estimate revisions [4] - Stock price greater than or equal to $5 to avoid volatility [5] - Price/Sales Ratio less than or equal to 1 for better value [6] - Broker Rating of Strong Buy equal to 100% [7] - ROE greater than or equal to 10% to filter out underperforming companies [7] Company Spotlight: Marubeni - Marubeni (MARUY) is a Japanese trading and investment conglomerate involved in a diverse range of products and services across nearly 70 countries [9] - The stock has appreciated 250% over the past decade, outperforming the S&P 500's 200% increase, and is currently trading at a 35% discount to its sector [10] - Marubeni's ROE stands at 13.5%, significantly higher than the industry average of 3.13%, and it offers a dividend yield of 2.71% [11]