An Independent Fed Is Sacrosanct
The next morning, one of the advisers whose explanations are unnecessary went on CNBC to continue the administration's attack on the Fed. 'Has the organization succeeded in its mission?,' Mr. Bessent asked rhetorically. 'If this were the [Federal Aviation Administration] and we were having this many mistakes, we would go back and look at why has this happened.'
Clearly, Mr. Powell's insistence on looking at the inflationary possibilities of tariffs before leaping into lower interest rates is annoying Mr. Trump and his top aides. But the president can't fire him. The Supreme Court has made clear that it will exempt the Federal Reserve Board from its steady broadening of presidential power over independent agencies. In an order issued in May, the Court wrote, 'The Federal Reserve is a uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States.'
Policy disagreements aren't enough to satisfy the legal requirement for firing Mr. Powell. Despite the president's transparent campaign to morph the Fed chairman's management of the board's headquarters renovation into a fraud charge that would meet the requirement, the odds are that Mr. Powell will serve out the remainder of his term, which ends in May. The real issue is what comes next.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
24 minutes ago
- Yahoo
Alstom S.A: Alstom's first quarter 2025/26: Commercial momentum off to a good start, outlook confirmed
Order intake at €4.1 billion. Rolling Stock book-to-bill ratio back at 1.0x Sales at €4.5 billion, up 2.8% vs. last year, of which 7.2% organic Fiscal year 2025/26 outlook and medium-term ambitions confirmed23 July 2025 – Over the first quarter of 2025/26 (from 1 April to 30 June 2025), Alstom booked €4.1 billion of orders. The Group's sales reached €4.5 billion in the quarter, up 2.8% vs. last year. Foreign exchange represented a 2.7% headwind on sales, owing to the appreciation of the euro against major currencies compared to the same period last year. Scope was a 1.5% headwind thanks to the sale of the North American conventional signalling business last year. Therefore, the Group's organic sales increased by 7.2% vs. last year. The backlog, as of 30 June 2025, settled at €92.3 billion, providing strong visibility on future sales. Key figures Reported figures(in € million) 2024/25Q1 2025/26Q1 % ChangeReported % ChangeOrganic Orders received1 3,645 4,075 +11.8% +13.6% Sales 4,389 4,514 +2.8% +7.2% Geographic and product breakdowns of reported orders and sales are provided in Appendix 1. 'Alstom's commercial performance is off to a good start. First-quarter orders have surpassed the €4 billion mark, with a strong view on the pipeline for the second quarter, bolstered by momentum in North America. All product lines have contributed to organic sales growth, particularly with projects in Germany beginning to ramp up. We confirm guidance for this fiscal year and Alstom's medium-term ambitions. Stability and visibility underscore the resilience of our business and our teams,' said Henri Poupart-Lafarge, Chief Executive Officer of Alstom *** Detailed review During the first quarter of 2025/26 (from 1 April to 30 June 2025), Alstom recorded €4,075 million in orders, compared to €3,645 million over the same period last fiscal year. Over three months, orders for Services, Signalling and Systems reached 42% of the total order intake. On a regional level, Europe accounted for 85% of the Group total order intake. In France, Alstom received an order from SNCF Voyageurs for 96 additional RER NG trainsets for the RER D line, under the framework agreement signed in 2017. Financed by Île-de-France Mobilités, the order is worth approximately €1.7 billion. The contract brings the total number of RER NG trainsets ordered to 262. In Bulgaria, Alstom, leading the BULEMU consortium, signed a contract with the Ministry of Transport and Communications for the supply of 35 Coradia Stream interregional electric trains and 15 years of maintenance services. The contract is valued at €720 million, with Alstom's share amounting to €600 million. Sales were €4,514 million in Q1 2025/26 (from 1 April to 30 June 2025) versus €4,389 million in Q1 2024/25 (up 2.8% on a reported basis and 7.2% on an organic basis). Rolling Stock sales reached €2,416 million, representing an increase of 3% on a reported basis and 5% on an organic basis, driven by the ramp-up of projects in Germany, alongside continued strong execution in France, the US, and Italy. Services reported €1,070 million of sales, stable on a reported basis and up 2% on an organic basis, supported by a ramp-up of projects in Germany, Italy and South Africa and continuous execution in North America. Signalling sales stood at €603 million, down 5% on a reported basis, impacted by the sale of the North American conventional signalling business last year. Sales were up 9% on an organic basis, marked by execution progress across all regions, particularly in France, Italy, and Germany. For Systems, Alstom reported €425 million sales, up 25% on a reported basis and 36% on an organic basis, benefiting from a strong ramp-up of turnkey projects in Brazil and the Philippines, as well as sustained activity in Mexico and France. The book-to-bill ratio is 0.9x over the quarter. *** Key project deliveries During the first quarter of 2025/26, Alstom's teams delivered key milestones across all regions. In France, the first metro train for Grand Paris Express Line 18 was delivered, and Omneo trains entered service on the Marseille–Toulon–Nice line. In the UK, a new Aventra fleet – belonging to the Adessia product family – began operations for London Northwestern Railway, and, in Sweden, Alstom executed the first commercial deployment of ERTMS. In India, metro services commenced in Kanpur and Indore, enhancing urban mobility. In the U.S., Alstom delivered the first Innovia automated people mover to Hartsfield-Jackson Atlanta International Airport. *** Assumptions for FY 2025/26 The outlook for FY 2025/26 is based on following main assumptions: Supportive market demand Number of cars produced stable vs FY 2024/25 Mitigating US tariffs impact Outlook for FY 2025/26 Group and Rolling Stock book-to-bill ratio above 1.0x Sales organic growth between 3% to 5% aEBIT margin around 7% Free Cash Flow generation to be within the €200 to €400 million range Seasonality driving consumption FCF of up to €(1)bn in H1 2025/26 Over the three years from FY 2024/25 to FY 2026/27, the Group expects to deliver at least €1.5 billion in free cash-flow, despite Contract Working Capital being a headwind over that period. *** Medium-term ambitions are confirmed as per the May 14, 2025, full year announcement. *** Financial calendar 13 November 2025 2025/26 Half-Year Results *** Conference Call Alstom is pleased to invite the analysts to a conference call presenting its first quarter orders and sales for the fiscal year 2025/26 on Wednesday 23 July at 8:30 am (Paris time), hosted by Bernard Delpit, EVP and CFO. A live audiocast will also be available on Alstom's website: Alstom's first quarter orders and sales for FY 2025/26. To participate in the Q&A session (audio only), please use the dial-in numbers below: France: +33 (0) 1 7037 7166 UK: +44 (0) 33 0551 0200 USA: +1 786 697 3501 Canada: 1 866 378 3566 (toll free) Quote ALSTOM to the operator to be transferred to the appropriate conference. *** ALSTOM™, Adessia™, Aventra™, Coradia Stream™, Innovia™ and Omneo™ are protected trademarks of the Alstom Group About Alstom Alstom commits to contribute to a low carbon future by developing and promoting innovative and sustainable transportation solutions that people enjoy riding. From high-speed trains, metros, monorails, trams, to turnkey systems, services, infrastructure, signalling and digital mobility, Alstom offers its diverse customers the broadest portfolio in the industry. With its presence in 63 countries and a talent base of over 86,000 people from 184 nationalities, the company focuses its design, innovation, and project management skills to where mobility solutions are needed most. Listed in France, Alstom generated sales of €18.5 billion for the fiscal year ending on 31 March 2025. For more information, please visit Press:Philippe MOLITOR - Tel.: +33 (0)7 76 00 97 79 Thomas ANTOINE - Tel.: +33 (0) 6 11 47 28 Investor relations:Cyril GUERIN - Tel.: +33 (0)6 07 89 36 Guillaume GAUVILLE - Tel: +44 (0)7 588 022 Estelle MATURELL ANDINO - Tel: +33 (0)6 71 37 47 56 Jalal DAHMANE - Tel: +33 (0)6 98 19 96 This press release contains forward-looking statements which are based on current plans and forecasts of Alstom's management. Such forward-looking statements are relevant to the current scope of activity and are by their nature subject to a number of important risks and uncertainty factors (such as those described in the documents filed by Alstom with the French AMF) that could cause reported results to differ from the plans, objectives and expectations expressed in such forward-looking statements. These such forward-looking statements speak only as of the date on which they are made, and Alstom undertakes no obligation to update or revise any of them, whether as a result of new information, future events or otherwise. This press release does not constitute or form part of a prospectus or any offer or invitation for the sale or issue of, or any offer or inducement to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for any shares or other securities in the Company in France, the United Kingdom, the United States or any other jurisdiction. Any offer of the Company's securities may only be made in France pursuant to a prospectus having received the approval from the AMF or, outside France, pursuant to an offering document prepared for such purpose. The information does not constitute any form of commitment on the part of the Company or any other person. Neither the information nor any other written or oral information made available to any recipient, or its advisers will form the basis of any contract or commitment whatsoever. In particular, in furnishing the information, the Company, the Joint Global Coordinators, their affiliates, shareholders, and their respective directors, officers, advisers, employees or representatives undertake no obligation to provide the recipient with access to any additional information. APPENDIX 1A – GEOGRAPHIC BREAKDOWN Reported figures 2024/25 % 2025/26 % (in € million) 3 months Contrib. 3 months Contrib. Europe 2,570 70% 3,472 86% Americas 318 9% 258 6% Asia / Pacific 237 7% 330 8% Middle East / Africa 520 14% 15 0% Orders by destination 3,645 100% 4,075 100%Reported figures 2024/25 % 2025/26 % (in € million) 3 months Contrib. 3 months Contrib. Europe 2,494 57% 2,672 60% Americas 894 20% 833 18% Asia / Pacific 624 14% 652 14% Middle East / Africa 377 9% 357 8% Sales by destination 4,389 100% 4,514 100% APPENDIX 1B – PRODUCT BREAKDOWN Reported figures 2024/25 % 2025/26 % (in € million) 3 months Contrib. 3 months Contrib. Rolling stock 1,410 39% 2,365 59% Services 1,199 33% 751 18% Systems 119 3% 128 3% Signalling 917 25% 831 20% Orders by product line 3,645 100% 4,075 100%Reported figures 2024/25 % 2025/26 % (in € million) 3 months Contrib. 3 months Contrib. Rolling stock 2,338 53% 2,416 54% Services 1,073 24% 1,070 24% Systems 341 8% 425 9% Signalling 637 15% 603 13% Sales by product line 4,389 100% 4,514 100% APPENDIX 2 - NON-GAAP FINANCIAL INDICATORS DEFINITIONSThis section presents financial indicators used by the Group that are not defined by IFRS or other generally accepted accounting principles.1.1. Orders receivedA new order is recognised as an order received only when the contract creates enforceable obligations between the Group and its customer. When this condition is met, the order is recognised at the contract value. If the contract is denominated in a currency other than the functional currency of the reporting unit, the Group requires the immediate elimination of currency exposure using forward currency sales. Orders are then measured using the spot rate at inception of hedging instruments. Book-to-Bill The book-to-bill ratio is the ratio of orders received to the amount of sales traded for a specific period. Gross margin % in backlogGross Margin % in backlog is a KPI that presents the expected performance level of firm contracts in backlog. It represents the difference between the sales not yet recognized and the cost of sales not yet incurred from the contracts in backlog. This % is an average of the portfolio of contracts in backlog and is meaningful to project mid- and long-term profitability. Adjusted Gross Margin before PPAAdjusted Gross Margin before PPA is a KPI that presents the level of recurring operational performance. It represents the sales minus the cost of sales, adjusted to exclude the impact of amortisation of assets exclusively valued when determining the PPA in the context of business combination as well as significant, non-recurring 'one off' items that are not expected to occur again in subsequent years. EBIT before PPAFollowing the Bombardier Transportation acquisition and with effect from the fiscal year 2021/22 condensed consolidated financial statements, Alstom decided to introduce the 'EBIT before PPA' KPI aimed at restating its Earnings Before Interest and Taxes ('EBIT') to exclude the impact of amortisation of assets exclusively valued when determining the PPA in the context of business combination. This KPI is also aligned with market practice. Adjusted EBITAdjusted EBIT ('aEBIT') is a KPI that presents the level of recurring operational performance. This KPI is also aligned with market practice and comparable to the Group's direct competitors. Since September 2019, Alstom has opted for the inclusion of the share in net income of the equity-accounted investments into the aEBIT even though this component is part of the operating activities of the Group (because there are significant operational flows and/or common project execution associated with these entities). This mainly includes Chinese joint ventures, namely CASCO joint venture for Alstom as well as, following the integration of Bombardier Transportation, Alstom Sifang (Qingdao) Transportation Ltd., Jiangsu Alstom NUG Propulsion System Co. corresponds to Earning Before Interests and Tax adjusted for the following elements: net restructuring expenses (including rationalisation costs) tangibles and intangibles impairment capital gains or loss/revaluation on investments disposals or controls changes of an entity any other non-recurring items, such as some costs incurred to realise business combinations and amortisation of an asset exclusively valued in the context of business combination, as well as litigation costs that have arisen outside the ordinary course of business and including the share in net income of the operational equity-accounted investments. A non-recurring item is a significant, 'one-off' exceptional item that is not expected to occur again in subsequent EBIT margin corresponds to Adjusted EBIT expressed as a percentage of sales. EBITDA + JV dividendsEBITDA before PPA plus dividends from joint ventures is the EBIT before PPA, before depreciation and amortisation, with the addition of the dividends received from joint ventures. Adjusted net profitThe 'Adjusted Net Profit' KPI restates Alstom's net profit from continued operations (Group share) to exclude the impact of amortisation of assets exclusively valued when determining the PPA in the context of business combination, net of the corresponding tax effect. This indicator is also aligned with market practice. Free cash flow Free Cash Flow is defined as net cash provided by operating activities less capital expenditures including capitalised development costs, net of proceeds from disposals of tangible and intangible assets. Free Cash Flow does not include any proceeds from disposals of most directly comparable financial measure to Free Cash Flow calculated and presented in accordance with IFRS is net cash provided by operating activities. Free Cash Flow conversion rateFree Cash Flow Conversion ratio is computed as Free Cash Flow of the period divided by the adjusted net profit of the same period. Alstom uses the Free Cash Flow conversion ratio to measure its ability to convert adjusted net profit into Free Cash Flow in a defined period. Funds from OperationsFunds from Operations 'FFO' in the EBIT before PPA to Free Cash Flow statement refers to the Free Cash Flow generated by Operations, before Working Capital variations. Contract and Trade Working CapitalContract Working Capital is the sum of: Contract Assets & Liabilities, which includes the Customer Down-Payments Current provisions, which includes Risks on contracts and Warranties Trade Working Capital is the Working Capital that is not strictly contractual, hence not included in Project Working Capital. It includes: Inventories Trade Receivables Trade Payables Other elements of Working Capital defined as the sum of Other Assets/Liabilities and Non-Current provisions Net cash/(debt)The net cash/(debt) is defined as cash and cash equivalents, marketable securities and other current financial asset, less borrowings. Pay-out ratio The pay-out ratio is calculated by dividing the amount of the overall dividend with the 'Adjusted Net profit from continuing operations attributable to equity holders of the parent, Group share' as presented in the management report in the consolidated financial statements. Organic basis This press release includes performance indicators presented on a reported basis and on an organic basis. Figures given on an organic basis eliminate the impact of changes in scope of consolidation and changes resulting from the translation of the accounts into Euro following the variation of foreign currencies against the Group uses figures prepared on an organic basis both for internal analysis and for external communication, as it believes they provide means to analyse and explain variations from one period to another. However, these figures are not measurements of performance under IFRS.Q1 2024/25Q1 2025/26 (in € million) Reported figures Exchange rate and scope impact Comparable FiguresReportedfigures % Var Rep. % Var Org. Orders 3,645 58 3,5874,075 11.8% 13.6% Sales 4,389 178 4,2114,514 2.8% 7.2%1 Non - GAAP. See definition in the appendix. Attachment PR Alstom Q1 2025-26 Results- EN - VFinalSign in to access your portfolio
Yahoo
24 minutes ago
- Yahoo
Trump announces 'massive' Japan trade deal
Donald Trump announced Tuesday a "massive" trade deal with Japan, marking a key breakthrough for major US trade partners as they scramble to strike agreements before the end of the month. In an attempt to slash his country's colossal trade deficit, the US president has vowed to hit dozens of countries with punitive "reciprocal" tariffs if they do not hammer out a pact with Washington by August 1. The breakthrough makes Japan one of five countries to have signed an agreement -- along with Britain, Vietnam, Indonesia and the Philippines -- after Trump promised in April he would get "90 deals in 90 days". "We just completed a massive Deal with Japan, perhaps the largest Deal ever made," he wrote on his Truth Social platform. He said that under the deal, "Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits". He did not provide further details on the unusual investment plan, but said it "will create Hundreds of Thousands of Jobs". Japanese exports to the United States were already subject to a 10 percent tariff, which would have risen to 25 percent on August 1 without a deal. Duties of 25 percent on Japanese autos -- an industry accounting for eight percent of Japanese jobs -- were also already in place, plus 50 percent on steel and aluminium. Japanese Prime Minister Shigeru Ishiba said that the autos levy had now been cut to 15 percent, sending Japanese car stocks soaring, with Toyota and Mitsubishi up around 14 percent each. "We are the first (country) in the world to reduce tariffs on automobiles and auto parts, with no limits on volume," he told reporters. "By protecting what needs to be protected, we continued the negotiations with an aim to reach an agreement that meets the national interest of both Japan and the United States," Ishiba added. "In this agreement with President Trump, I think we were able to realise such an agreement." - Rice imports - However, Japan's trade envoy Ryosei Akazawa, who secured the deal on his eighth visit to Washington, said the 50 percent tariffs on steel and aluminium would remain. Akazawa also said that increased defence spending by Japan -- something Trump has pressed for -- was not part of the agreement. Trump said Tuesday that Japan has also agreed to "open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things". Rice imports are a sensitive issue in Japan, and Ishiba's government -- which lost its upper house majority in elections on Sunday -- had previously ruled out any concessions. Japan currently imports 770,000 tonnes of rice tariff-free under its World Trade Organization commitments, and Ishiba said it would import more US grain within this. Ishiba said Wednesday that the deal does not "sacrifice" Japan's agricultural sector. Tatsuo Yasunaga, the chair of Japan Foreign Trade Council welcomed the trade deal announcement but said the business community needed to see details to assess its impact. "I highly commend the fact that this major milestone has been achieved and dispelled the uncertainty that private companies had been concerned about," Yasunaga said. Naomi Omura, an 80-year-old voter, said it was "disappointing that Japan cannot act more strongly" towards the United States. Tetsuo Momiyama, 81, said that Ishiba "is finished... It's good timing for him to go." Reports claimed Wednesday that he aims to step down soon following the election debacle. - China talks - Trump has been under pressure to wrap up trade pacts after promising a flurry of deals ahead of his deadline. The White House on Tuesday also laid out details of a deal with Indonesia, which would see it ease critical mineral export restrictions and also face a 19 percent tariff, down from a threatened 32 percent. Trump also said that levies on the Philippines, another close strategic US ally, would be cut by one percentage point to 19 percent after hosting President Ferdinand Marcos. But negotiations are still ongoing with much larger US trading partners China, Canada, Mexico and the European Union. US Treasury Secretary Scott Bessent said Tuesday that he would meet his Chinese counterparts in Stockholm next week. Leaders of the world's two biggest economies imposed escalating, tit-for-tat levies on each other's exports earlier this year, reaching triple-digit levels. But in talks in Geneva in May they agreed to lower them temporarily until August 12. bur-stu/dan Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNN
24 minutes ago
- CNN
Trump announces US-Japan trade deal
President Donald Trump announced a long-awaited trade agreement with Japan on Tuesday night, a framework between the allies and major trading partners that appeared elusive just weeks ago. CNN's Kristie Lu Stout breaks down what's in the deal.
