Trump's Trade Deals Come With Few Details to Flesh Out Big Numbers
Trump touted landmark agreements with Japan and the European Union in the past week, adding to pacts with a handful of smaller economies. An extension of the US-China tariff truce is also in the works. The administration is taking a victory lap, claiming vindication for Trump's bargaining style as he prepares a raft of import-tax hikes before an Aug. 1 deadline.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
23 minutes ago
- Yahoo
Starbucks stock drops after US same-store sales fall for 6th straight quarter
Starbucks (SBUX) reported a sixth straight quarterly drop in US same-store sales on Tuesday as the company continues to grapple with an uncertain consumer environment and its CEO's turnaround efforts. US same-store sales fell 2%, in line with the prior quarter's drop but less than the 2.5% drop that had been forecast. That was driven lower by a 4% decline in comparable transactions. Wall Street expected a sharper 4.5% decline. Starbucks "fixed a lot and done the hard work on the hard things to build a strong operating foundation and based on my experience of turnarounds, we are ahead of schedule," CEO Brian Niccol, who previously led the turnaround at Chipotle, said in the release. Starbucks stock was down about 2% in morning trade on Wednesday; the stock rose as much as 4% in immediate reaction to the results late Tuesday. Shares of Starbucks are roughly unchanged so far this year. Global same-store sales fell 2%, more than the 1.5% decline expected, per Bloomberg data, marking an acceleration from the previous quarter's 1% drop. Same-store sales in China rose 2% against forecasts for a 1.4% rise, driven by beverage innovation. The jump was driven by an increase in transactions, which was offset by a decline in the average ticket as the company lowered prices to compete with rival Luckin Coffee (LKNCY). This marks the second straight quarter of positive growth for its operations in China as the company seeks out a partner in the region. Niccol said Starbucks seeks a local partner that shares the same "belief that there's this opportunity to grow" and can set up the brand long-term. Adjusted earnings per share came in at $0.50, missing forecasts for $0.65 per share. Revenue rose 5% to $9.5 billion, more than the $9.3 billion that had been forecast. Read more: Live coverage of corporate earnings Since joining the company last fall, Niccol has tried to change the fortunes of the coffee chain by cutting staff earlier this year and announcing plans this month to require more staff to be in the office four days per week. The company has also incentivized its management team to more aggressively turn around the business, offering executives performance-based stock grants focused on cutting costs. The company plans to prioritize a cozy coffeehouse atmosphere and move away from pickup-focused experiences for customers. Consequently, Starbucks plans to execute small, targeted renovations of its stores, amounting to approximately $150,000 per location, to bring back the thousands of chairs for patrons it took away. For new locations, Niccol said it was able to cut the build cost by roughly 30% and will introduce a new stand-alone prototype in fiscal 2026 that will have 32 seats and a drive-through. Starbucks is also investing $500 million dollars of additional labor hours in its US stores over the next year. The plan is a part of its new operating model, dubbed Green Apron service, which is set to roll out to US locations by mid-August. CFO Cathy Smith called it "a foundational operating model that establishes the repeatable, consistent, scalable standards that we want and need in customer service." So far, transactions, sales, and customer service times have improved based on a pilot of 1,500 stores in eight weeks, Niccol said. Innovation is a key part of its strategy, too. Protein cold foam, set to hit the menu in the fourth quarter, will include 15 grams of protein with no added sugar. The company is also exploring coconut water-based tea and improved artisanal food options. Since Starbucks was ridiculed over its complex menus, Niccol said its approach to innovation has changed. "This innovation is being co-built with our baristas in our stores, versus we build it in the support center, we throw it over the wall, and we hope that our baristas can figure it out, right?" he said. "Those days are over," he added. "We're going to build it with the field and our baristas in store at the start of the process." The company did not provide official guidance for the year, but Smith said, "We are confident that 2026 will continue to improve" as it rolls out its Back to Starbucks strategy and eyes the return of the coveted Pumpkin Spice Latte next month. She added, "Taking into account that we have a lot in flight, combined with the uncertain consumer environment, we are conservative on how the current year-over-year trends will change in the fourth quarter for the US company-operated business." — Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ 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
Yahoo
23 minutes ago
- Yahoo
Do You Believe in the Upside Potential of Adient PLC (ADNT)?
Hotchkis & Wiley, an investment management company, released its 'Hotchkis & Wiley Mid-Cap Value Fund' second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter of 2025, equity market performance experienced significant volatility, primarily due to changes in U.S. trade policies and escalating geopolitical tensions. The fund lagged behind the Russell Midcap Value Index in the second quarter, gaining 3.63% vs 5.35% for the index. Please review the fund's top 5 holdings to gain insight into their key selections for 2025. In its second-quarter 2025 investor letter, Hotchkis & Wiley Mid-Cap Fund highlighted stocks such as Adient plc (NYSE:ADNT). Adient plc (NYSE:ADNT) is a manufacturer of seating systems and components. The one-month return of Adient plc (NYSE:ADNT) was -0.45%, and its shares lost 14.29% of their value over the last 52 weeks. On July 29, 2025, Adient plc (NYSE:ADNT) stock closed at $22.08 per share with a market capitalization of $1.855 billion. Hotchkis & Wiley Mid-Cap Fund stated the following regarding Adient plc (NYSE:ADNT) in its second quarter 2025 investor letter: "Adient plc (NYSE:ADNT), domiciled in England (with corporate offices in Plymouth, MI; Milwaukee, WI; Burscheid, Germany; and Shanghai, China), is one of the world's largest supplier of seating systems and a leading components supplier for automotive interiors. Shares rose over the period on improved earnings and improved sentiment around the potential impact of tariffs. We continue to believe Adient is an attractive company with a leading global position in automotive seating, a market segment that fairs well as the auto industry incorporates more advanced technologies." A carpenter assembling an automotive seating system, using components, frames and mechanisms. Adient plc (NYSE:ADNT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Adient plc (NYSE:ADNT) at the end of the first quarter, which was 25 in the previous quarter. While we acknowledge the potential of Adient plc (NYSE:ADNT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Adient plc (NYSE:ADNT) and shared Hotchkis & Wiley Mid-Cap Value Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. 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
Yahoo
23 minutes ago
- Yahoo
US pending home sales fall more than expected in June
WASHINGTON (Reuters) -Contracts to buy previously owned U.S. homes dropped more than expected in June, weighed down by higher mortgage rates. The National Association of Realtors said on Wednesday pending home sales, based on signed contracts, fell 0.8% last month. Economists polled by Reuters had forecast contracts, which become sales after a month or two, advancing 0.3%. Pending home sales decreased 2.8% from a year earlier. "The data shows a continuation of small declines in contract signings despite inventory in the market increasing," said Lawrence Yun, the NAR's chief economist. 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
