Walmart to Invest $6 Billion in Mexico in 2025 to Add Locations
The expansion will create 5,500 jobs, Chief Executive Officer Ignacio Caride said at Mexican President Claudia Sheinbaum's daily news conference. The company will use the funds to open more stores under the Bodega Aurrera, Sam's Club, Walmart Supercenter and Walmart Express brands, the company said in a statement.
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The Hill
2 hours ago
- The Hill
Would a weaker dollar be a good thing for the US?
The strength of the U.S. dollar influences trade, inflation and investment, but as President Trump noted Friday, the currency's power comes with trade-offs. 'I'm a person that likes a strong dollar, but a weak dollar makes you a hell of a lot more money,' Trump told reporters Friday. The president added that a strong dollar helps keep inflation in check and feels good psychologically, but argued, 'You can't sell anything.' His mixed messaging highlights tension policymakers have long grappled with: There isn't a simple connection between the strength of a country's currency and the strength of its economy. On one hand, a strong dollar makes imported goods cheaper for American consumers, but on the other, a weaker dollar makes U.S. products more competitive abroad, benefiting exporters. What does it mean when the dollar is strong vs. weak? The dollar is considered strong when it rises in value against other currencies, as measured by the exchange rate. If a dollar can buy more of another currency than before, that means it's getting stronger relative to that currency. Tourists notice this when traveling abroad and exchanging money. Earlier this year, the U.S. dollar and the euro were nearly at parity, or worth practically the same. Today, $1 is worth about 0.85 euros, meaning Americans visiting Italy will notice they get fewer euros in exchange for their dollars than just a few months ago. In that sense, the dollar has weakened relative to the euro. But the value of the U.S. dollar — and other currencies — is constantly changing due to supply and demand, shaped by factors like monetary policy, inflation and investor sentiment. The dollar has been weakening recently, falling more than 10 percent in the first half of the year when compared to a basket of currencies from major U.S. trading partners. The last time the dollar weakened this much at the start of the year was 1973, according to The New York Times. What are the advantages of a strong dollar? American tourists get more value for their money abroad when the dollar is strong, but you don't have to leave the country to experience the upside. One of the main benefits is that it lowers the cost of imports, making foreign products cheaper for consumers. But shoppers buying Mexican tequila and Canadian maple syrup aren't the only ones who come out ahead — a strong dollar also lowers input costs for businesses that rely on imports, easing inflationary pressures. A U.S. automaker importing parts from Mexico would pay fewer dollars for the same peso-priced components when the dollar strengthens against the peso. Lower input costs for U.S. companies put pressure on foreign competitors to cut prices to stay competitive, another potential win for American consumers. More broadly, as the world's primary reserve currency, a strong dollar projects global confidence and reinforces trust in the U.S. financial system. It's often seen as a sign of economic strength. 'When we have a strong dollar, one thing happens — it sounds good,' Trump told reporters Friday. What are the disadvantages of a strong dollar? A strong dollar can hurt American exporters because it makes U.S. goods more expensive in foreign markets. Boeing, for example, exports large numbers of aircraft globally, and when the U.S. dollar strengthens, those planes become more expensive to foreign buyers paying in other currencies. American firms that don't export can also feel the pinch, as they often compete with imports. A strong dollar can make it harder for Made-in-the-USA products to hold their own against cheaper goods from abroad. 'You can't sell tractors, you can't sell trucks, you can't sell anything,' Trump said of a strong dollar on Friday. 'It is good for inflation, that's about it.' While a strong dollar tends to ease U.S. inflationary pressures, it also intensifies inflation abroad — a dynamic that, in today's interconnected global economy, can ultimately be bad for business. Another point: A strong dollar raises the cost of visiting the U.S., which can dampen tourism. In the end, the strength of the dollar is a balancing act, with trade-offs that ripple across the global economy. Whether it helps or hurts depends on where you sit and what you're trying to sell.
Yahoo
16 hours ago
- Yahoo
Why Chipotle (CMG) Shares Are Plunging Today
What Happened? Shares of mexican fast-food chain Chipotle (NYSE:CMG) fell 13.6% in the afternoon session after the company reported disappointing second-quarter results and cut its full-year sales forecast, citing a challenging consumer environment. The fast-casual chain's comparable-restaurant sales fell by 4% in the second quarter, a steeper decline than analysts had anticipated. This drop was primarily driven by a 4.9% decrease in customer transactions, indicating fewer people visited its stores. While total revenue rose 3% to $3.1 billion, it fell slightly short of Wall Street estimates. The most significant concern for investors was the company's revised outlook. Chipotle now projected its full-year comparable sales to be 'approximately flat,' a sharp downgrade from its previous forecast of 'low-single-digit' growth. Management attributed the weaker performance and outlook to ongoing volatility in consumer spending. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Chipotle? Access our full analysis report here, it's free. What Is The Market Telling Us Chipotle's shares are not very volatile and have only had 5 moves greater than 5% over the last year. Moves this big are rare for Chipotle and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 17 days ago when the stock dropped 3.4% on the news that the major indices pulled back (Nasdaq -0.8%, S&P 500 -0.77%), largely due to escalating concerns surrounding the July 9th deadline for new US tariffs, now amplified by specific announcements. Earlier in the day, President Trump confirmed that Japan and South Korea would face new 25% tariffs on their imports to the US, effective August 1st. These announcements came ahead of the broader July 9th expiration of a 90-day pause on reciprocal tariffs, which failed to produce comprehensive trade deals with most nations. This action against two major trading partners, coupled with the ongoing threat of further tariffs on countries associated with the BRICS bloc, injected significant uncertainty and apprehension into global markets. Investors were likely reacting to the increased costs for businesses, potential disruptions to global supply chains, and the broader implications for international trade relations. Chipotle is down 24% since the beginning of the year, and at $45.52 per share, it is trading 31.2% below its 52-week high of $66.16 from December 2024. Investors who bought $1,000 worth of Chipotle's shares 5 years ago would now be looking at an investment worth $2,013. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
New York Times
19 hours ago
- New York Times
Bipartisan Pair of House Members to Meet With Sheinbaum in Mexico
A bipartisan pair of congressmen is set to travel to Mexico next week to meet with President Claudia Sheinbaum and other top government officials as President Trump stokes tension between the United States and its southern neighbor. Representatives Don Bacon, Republican of Nebraska, and Ro Khanna, Democrat of California, are planning one of the first formal trips by members of Congress to meet with Ms. Sheinbaum. With Mr. Trump's tariffs driving up prices and his immigration crackdown affecting the region, Mr. Khanna and Mr. Bacon said they hoped to use their visit to figure out how policymakers in Washington could pursue a more constructive approach. 'This is one of our closest allies — one of the nations that most impacts life here in terms of the economy, in terms of the culture, in terms of immigration,' Mr. Khanna said in an interview ahead of the trip. 'And Trump, I think, has really put strains on that relationship with these tariffs.' Mr. Bacon said he was hoping the trip would help him 'understand our neighbors better.' 'I know what we feel about the border,' Mr. Bacon said. 'I think it's going to be fascinating to hear the Mexican leadership perspective on trade, border, cyber, national security.' Mexico has been at the center of the president's trade war and his often whipsawing pronouncements about slapping financial penalties on nations that do not bow to his wishes. Mr. Trump has imposed a 25 percent tariff on a wide range of Mexican goods, and just last week threatened to increase the penalty to 30 percent on Aug. 1 if the country failed to stop drug cartels and the flow of fentanyl into the United States. Mr. Bacon, who represents a swing district that includes Omaha and recently announced he would not seek re-election, is among the few Republicans who has pressed for more congressional oversight of tariff decisions, including those that would apply to Mexico. Want all of The Times? Subscribe.
