Latest news with #Downtowns
Yahoo
02-07-2025
- Business
- Yahoo
Cruises Profit as Cost-Conscious Travelers Set Sail This Summer
(Bloomberg) -- America's Independence Day holiday is fast approaching, but instead of the usual beach barbecues and fireworks displays, many US travelers are setting sail for some exotic port. Struggling Downtowns Are Looking to Lure New Crowds NYC Commutes Resume After Midtown Bus Terminal Crash Chaos What Gothenburg Got Out of Congestion Pricing California Exempts Building Projects From Environmental Law The cruise industry has emerged as the popular option for cost-conscious vacationers looking for something more affordable than a typical trip. From January through May, Americans across income levels cut their spending on airlines, lodging and other forms of leisure as economic uncertainty rose and the US dollar weakened, but cruises kept growing, a Bank of America Institute study found. 'If you want to go visit a Caribbean island, the best value by far is doing it on a cruise ship,' Truist Securities analyst C. Patrick Scholes said. A record 19 million Americans are expected to go on a cruise this year, up 4.5% from 2024 and the third straight year of all-time high volume, according to projections from the American Automobile Association. Cruise Lines International Association projects that passenger numbers worldwide will increase 9% in 2025 and continue to climb through 2028. The growth is showing up in the bottom lines of cruise operators, with Carnival Corp. posting better than expected second-quarter earnings and raised its outlook for the second half last week. Since then, Carnival's shares are up 23% compared with a 3% gain in the S&P 500, and are trading at the highest level in four years. Meanwhile, Royal Caribbean Cruises Ltd.'s stock has soared 18% and is at an all-time high, Norwegian Cruise Line Holdings Ltd. is up 14% and Viking Holdings Ltd. has gained 8.8%. 'Cruise companies were hit hard earlier in the year by perceived recession risk, and now represent maybe the most clear-cut buying opportunity given a more resilient macro environment,' Citigroup analyst James Hardiman wrote in a note to clients last month. Low Inflation Risk In addition, the industry isn't being hit hard by inflation, at least not yet. Cruises operate with a long reservation calendar, so many of these trips were books in 2024, according to Don Bucolo, co-founder of the travel blog 'Eat Sleep Cruise.' 'They have a very long booking curve, so they have a lot of visibility into next year,' Melius Research analyst Conor Cunningham said. In times of economic unease, cruises become attractive travel options because they're far cheaper than flying to your destination and staying at a hotel or Airbnb. For example, a three-day Royal Caribbean cruise to the Bahamas this January costs $469 per person, while a three-night stay at the Atlantis resort at Paradise Island Bahamas costs $894. Passengers lined up on a Brooklyn dock on June 29 preparing to board a ship headed to the Bahamas agreed with the value proposition. 'It's not only your hotel, it's your transportation and your restaurants,' said Nicholas Picard. 'So it's just something that brings us back for more.' Picard, a nurse, said that the need to be careful financially weighed more on his travel plans this year than in the past. Another passenger, Amy Gravell, said that her seven-day stay at a resort in the Bahamas last year cost twice as much as the week-long cruise she was about to embark on. One appealing aspect is the up-front cost of traveling by boat. Passengers on a cruise have a clearer idea of how much they're going to spend since so much is included in the price, according to Gabriel Podbereski, a pilot from Miami who also creates content about cruises on Instagram and YouTube under the handle @thecruisevibe. Young Cruisers 'Many travelers find the pricing strategy on a cruise to return a higher value for their dollar, especially as the USD and CAD have seen a continued weakening,' said Gina Gabbard, chief strategy officer at First In Service, a travel experience company with advisers worldwide. The company has seen 'ongoing growth' in its cruise business, Gabbard said, and the trend is continuing. Part of the enthusiasm for the industry is being driven by increasing numbers of younger travelers who are opting for cruises. In addition, the business has recovered from the debacles of a decade ago that gave cruising a bad reputation, as captured in the recent Netflix documentary 'Trainwreck: Poop Cruise,' about a 2013 voyage on a Carnival ship where passengers went four days on a without power. 'If we go back 10 years ago, we see this industry went from self-hurt to self-help,' Truist's Scholes said. One corner of the market that isn't seeing a boost from the growth of cruise vacations is fuel demand. In part that's because cruise ships represent a small fraction of the marine fuel market, said Iain Mowat, principal analyst for refining and oil product markets at Wood Mackenzie. Cruise ships are also becoming more fuel efficient. Fuel consumption per available lower berth day decreased 6.3% compared to the prior year, Carnival reported in its 2025 Q2 earnings release. Improved fuel efficiency mitigates some of the increased demand for fuel, according to Alex Hodes, director of energy market strategy at StoneX. While the cruise industry is thriving in a tough economic environment, with the big operators trading at records, for investors the question is how long they can keep it up. With each quarter of growth, the comparisons get more difficult to beat, so they need to continue enticing new travelers for the trend to stick. 'Really, this was a stock sector, if we go back to last year, that really did extremely well,' Scholes said. 'They would beat every quarter and have big earnings raises. I think that the ability to have really large beat and raises is going to be pressured.' SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too America's Top Consumer-Sentiment Economist Is Worried How to Steal a House China's Homegrown Jewelry Superstar Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
02-07-2025
- Business
- Yahoo
Treasuries Fall for Second Day With Focus on US Jobs Numbers
(Bloomberg) -- Treasuries are set for a second daily drop heading into a double whammy of labor data, following an unexpected jump in US job opening numbers. Struggling Downtowns Are Looking to Lure New Crowds Sprawl Is Still Not the Answer California Exempts Building Projects From Environmental Law What Gothenburg Got Out of Congestion Pricing US 10-year yields rose four basis points to 4.28%, climbing after reaching a two-month low Tuesday. Two-year rates, which are more sensitive to changes in monetary policy, advanced two basis points to 3.79%. With the job openings data pointing to a hotter economy, market expectations are building that today's ADP Research employment numbers and Thursday's non-farm payrolls could also reflect that. It's leading traders to pare bets on Federal Reserve interest-rate cuts, with swaps evenly split on two or three quarter-point reductions by year-end, with only a 15% chance the first cut is delivered later this month. 'The data put the latest dovishness to the test,' said Evelyne Gomez-Liechti, a strategist at Mizuho International Plc. She says a rate cut this month is unlikely and a reduction of more than a quarter-point in September looks like a stretch. Private-sector payroll numbers published by ADP Research are forecast to rise to 98,000 in June, from 37,000 previously, according to a Bloomberg poll of economists. Investors are also contending with President Donald Trump's sweeping budget bill, which was narrowly passed in a Senate vote Tuesday and carries implications for the deficit. The House plans to vote on the bill Wednesday as Republicans rush to complete work on the legislation by a July 4 deadline set by the President. The House-passed version of the package was most recently estimated by the CBO to boost the deficit by some $2.8 trillion. Open interest data shows traders added new long positions into the recent bond market rally. Outstanding positions in US 10-year bond futures exceeded 5 million lots last week for the first time since the contract expiring in September became the most actively traded one month ago. (Adds positioning in bond futures in the final paragraph) SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too How to Steal a House China's Homegrown Jewelry Superstar America's Top Consumer-Sentiment Economist Is Worried Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
02-07-2025
- Business
- Yahoo
Treasuries Fall for Second Day With Attention on US Jobs Numbers
(Bloomberg) -- Treasuries are set for a second daily drop heading into a double whammy of labor data, following an unexpected jump in US job opening numbers. Struggling Downtowns Are Looking to Lure New Crowds Sprawl Is Still Not the Answer California Exempts Building Projects From Environmental Law What Gothenburg Got Out of Congestion Pricing US 10-year yields rose four basis points to 4.28%, climbing after reaching a two-month low Tuesday. Two-year rates, which are more sensitive to changes in monetary policy, advanced two basis points to 3.79%. With the job openings data pointing to a hotter economy, market expectations are building that today's ADP Research employment numbers and Thursday's non-farm payrolls could also reflect that. It's leading traders to pare bets on Federal Reserve interest-rate cuts, with swaps evenly split on two or three quarter-point reductions by year-end, with only a 15% chance the first cut is delivered later this month. 'The data put the latest dovishness to the test,' said Evelyne Gomez-Liechti, a strategist at Mizuho International Plc. She says a rate cut this month is unlikely and a reduction of more than a quarter-point in September looks like a stretch. Private-sector payroll numbers published by ADP Research are forecast to rise to 98,000 in June, from 37,000 previously, according to a Bloomberg poll of economists. Investors are also contending with President Donald Trump's sweeping budget bill, which was narrowly passed in a Senate vote Tuesday and carries implications for the deficit. The House plans to vote on the bill Wednesday as Republicans rush to complete work on the legislation by a July 4 deadline set by the President. The House-passed version of the package was most recently estimated by the CBO to boost the deficit by some $2.8 trillion. SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too How to Steal a House America's Top Consumer-Sentiment Economist Is Worried China's Homegrown Jewelry Superstar Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P.
Yahoo
02-07-2025
- Business
- Yahoo
Gold Holds Gains as Trump Tax Bill Stokes US Deficit Concerns
(Bloomberg) -- Gold held an advance, with investors weighing concerns about the US fiscal position after the Senate passed President Donald Trump's multitrillion-dollar tax bill. Struggling Downtowns Are Looking to Lure New Crowds Sprawl Is Still Not the Answer California Exempts Building Projects From Environmental Law Bullion held near $3,340 an ounce, after rallying 2% over the previous two sessions. The latest version of the the president's signature legislation — which is expected to widen the deficit by $3.3 trillion over the next decade — now heads to the House for approval. If it passes, that could benefit gold's appeal as a haven, with investors already reconsidering their allocations to US assets amid Trump's disruptive trade and economic agendas. Persistent weakness in the dollar — which is trading at the lowest level since 2022 — continued to support gold, offsetting pressure from rising Treasury yields after a report on Tuesday showed an increase in US job openings. While higher yields tend to pose a headwind for non-interest-bearing bullion, a weaker greenback makes the metal cheaper for most buyers as it's priced in the US currency. Gold is up by more than a quarter this year and is trading around $160 short of a record high set in April, supported by demand for havens as investors grappled with heightened geopolitical and trade tensions. The rally has also been supported robust central-bank purchases. Spot gold was little changed at $3,341.84 an ounce as of 8:09 a.m. in Singapore. The Bloomberg Dollar Spot Index slipped 0.1%, and is down 0.6% so far this week. Silver and palladium edged higher, while platinum was flat. Looking ahead, the government's June employment report, due Thursday, is expected to show a slowdown in nonfarm payroll growth and an uptick in the unemployment rate. Federal Reserve policymakers have consistently characterized labor-market conditions as strong in recent weeks, and any signs of softness could bolster the case for interest-rate cuts — a scenario that tends to benefit gold. Investors also continued to monitor US trade negotiations, with Trump saying he is not considering delaying his July 9 deadline for higher tariffs to resume. Still, there are signs that traders are becoming increasingly less worried by the president's unpredictable stance on levies, as the economy remains healthy and Corporate America appears to be taking his policies in its stride, for now. SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too How to Steal a House America's Top Consumer-Sentiment Economist Is Worried China's Homegrown Jewelry Superstar Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P.
Yahoo
01-07-2025
- Business
- Yahoo
Traders' Fear of Missing Out on Stock Gains Outweighs Tariff Concerns
(Bloomberg) -- President Donald Trump's tariff pause is set to end on July 9, with few deals locked in and scant progress in negotiations. Yet the stock market that once swung wildly on trade headlines appears to see little risk, as equity indexes sit near all-time highs and volatility evaporates. Struggling Downtowns Are Looking to Lure New Crowds Sprawl Is Still Not the Answer California Exempts Building Projects From Environmental Law What gives? In part, the calm is being fueled by expectations that Trump will extend his tariff deadline based on his pattern of threatening harsh measures and subsequently backing down, a strategy analysts and strategists call 'TACO' for 'Trump Always Chickens Out.' But more importantly, Wall Street pros see no sense in fighting the market's momentum as the economy remains healthy and Corporate America appears to be taking trade policies in stride — at least for now. 'There's still some focus on July 9, but so many other factors are being watched these days, too,' said Michael Kantrowitz, chief investment strategist at Piper Sandler & Co. 'Once again, investors are less worried. In the absence of a spike in rates, inflation or the unemployment rate, stocks will continue to grind higher.' The S&P 500 Index just closed out its best quarter since December 2023 and cleared the 6,200 level before dipping back below on Tuesday. The technology-heavy Nasdaq 100 Index had its best quarter since March 2023 as the stock market's usual leaders are taking their place at the front of the line again. Both posted losses in the first quarter. Meanwhile, traders have amped up their allocations to the market's riskiest corners. Even institutional investors, who mostly stayed put for much of the 25% upswing since April, are gradually moving off the sidelines. And options data shows that Wall Street isn't concerned about substantial volatility anytime soon. Smart Money In 'Trade deals of some kind are likely to come, and underneath, earnings estimates have stabilized after falling in the immediate aftermath of April,' Steven Chiavarone, senior portfolio manager and equity strategist at Federated Hermes, said in a Bloomberg Television interview on Monday. 'What started out as just a relief rally is starting to become something real, and that's what sucks those investors in — slowly and reluctantly.' The S&P 500's double-digit surge from its April 8 trough just before Trump paused his tariffs has largely been driven by retail investors. Now, the so-called smart money is starting to buy in as the rally shows few signs of stopping. Systematic strategies last week ratcheted up their exposure to equities, though they still remain underweight, with positioning in most sectors below the historical average, according to data compiled by Deutsche Bank AG's Parag Thatte. Markets have priced out 84% of macroeconomic risk, based on an assessment by Piper Sandler's Kantrowitz of high-yield credit spreads, leaving room for stocks to move even higher despite the S&P 500 adding more than $10 trillion in value since early April. The optimism has defied war in the Middle East, uncertainty around the macroeconomic outlook, and a lack of clarity on trade. 'We were pretty bullish for June on things that have nothing to do with Trump — this just has to do with the fact there's other stuff going on that's quite positive,' said Alexander Altmann, global head of equities tactical strategies at Barclays Plc. The strategist cited bank deregulation, big tech firms' continued spending on artificial intelligence, and Trump's $3.3 trillion tax and spending bill as factors bolstering the economy. The Senate passed the bill on Tuesday in 51-50 vote with Vice President J.D. Vance casting the deciding ballot. But it could still face resistance in the House of Representatives. Of course, none of this is to say that the risks facing the market have gone away. Even if Trump extends his tariff pause, there are other levies that are likely to raise expenses for companies or consumers — or both. Tempered Enthusiasm 'We're still going to end up with high tariff rates and absorb that cost at some point in the future,' Altmann said. 'This is a market where it's very hard to look and trade more than four weeks ahead right now. And it's very hard to have a strong opinion on events that could or could not happen six months from now.' The way things stand, exporting nations without a bilateral accord in place by July 9 will face tariffs Trump presented on April 2, ones that are much higher than the current baseline 10% so-called reciprocal rate applied to most countries. The UK has locked in a deal that reduced some proposed levies but kept the reciprocal rate in place and left unresolved one of Britain's pain points — 25% duties on steel. The US and China finalized a trade understanding reached in Geneva, US Commerce Secretary Howard Lutnick said last week, but described it as far from comprehensive and with key questions remaining. And Trump has threatened to ramp up tariffs on Japan. 'We don't have any significant trade deals — we have some memorandums of understanding, we have some agreement to move forward, but we don't have anything concrete,' said Kate Moore, chief investment officer of Citigroup Inc.'s wealth unit. 'I've been surprised, to be very honest with you, that the market seems to not care about it. It's one of the reasons why this doesn't feel like a fundamentally-driven market, despite the fact that we see a lot of strength in technology and artificial intelligence.' At the same time, JPMorgan Chase & Co.'s trading desk says the setup is bullish, projecting a streak of all-time highs as earnings carry positive momentum with trade deals expected to be announced. Andrew Tyler, the bank's head of global market intelligence, is looking out for the June nonfarm payrolls report due Thursday. As long as it remains above 100,000, he expects stocks to keep logging fresh records. A survey by Bloomberg of economist estimates sees it coming in at 110,000. 'For now, the market will look through those potential events,' Tyler wrote in a note to clients on Monday, referring to trade turbulence. 'Further, we think the July 9 date gets rolled to avoid any market volatility.' --With assistance from Matt Turner. SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too America's Top Consumer-Sentiment Economist Is Worried How to Steal a House China's Homegrown Jewelry Superstar Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P. Sign in to access your portfolio
