India Aghast at Donald Trump's ‘Dead' Economy Jibe, 25% Tariffs
While Indian government officials weighed a response and business groups tallied the cost of the trade barrier, the local social media flared up with users protesting Trump's comments and criticizing Indian Prime Minister Narendra Modi for not speaking up.
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Yahoo
9 minutes ago
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Why Starbucks must start delivering big-time
I have had a checkered history with Starbucks (SBUX). As an analyst during the Howard Schultz CEO era, I would camp out in stores for days studying everything the chain was doing wrong (and right). The stock was always priced for perfection, and I was trying to ensure that clients wouldn't be left holding the bag. My ensuing critical research reports weren't well-received by Starbucks. I still remember Schultz telling me to f*** off at an analyst day. I wasn't amused in the moment by a billionaire's lack of verbal control, but the next morning, I was back to my chipper self. You can't take this stuff personally. More than a decade later, I'm now a journalist with no bones to pick with Starbucks — just one providing context on this important stock. Current Starbucks CEO Brian Niccol is hard to root against. I originally met him at a Taco Bell investor day in New York City, maybe nine years ago. He was a good leader then and a better one today with a successful Chipotle (CMG) turnaround under his belt. The problem is that Starbucks' business isn't yet showing the Niccol magic. You can see the seeds he planted beginning to sprout — service times improving, sales not falling off a cliff, menus streamlining. In the quarter announced this week, the company teased a "wave" of innovation such as protein cold foam coffee, shorter mobile order pickup times, and a potential sale of part of the struggling China business. But again, Niccol's magic beans have barely sprouted green shoots, with Niccol almost one full year into the job. What Starbucks delivered in the quarter: Operating profit margins crashed in every business segment year over year. Overall operating margins plunged 660 basis points from a year ago. US same-store sales fell 2% on the back of a 4% traffic drop. Earnings per share tanked 46% from a year ago. No guidance provided. "Unfortunately, I think there were some choices made before me that really set us back on our ability to create that great customer connection between our barista and customer and provide the type of customer service that the Starbucks brand, frankly, is known for," Niccol told me on Yahoo Finance's Opening Bid (watch above). Some investors are clinging to the positives Niccol noted during the earnings call. They include low double-digit percentage same-store sales growth at college locations, improved transaction trends in the US toward the end of the quarter, and the aforementioned "wave" of menu innovation. Starbucks will also spend $500 million during the next year on increased labor investments — shy of Street whispers of about $1 billion. The company even teased the potential to reach peak operating margins again. But at this point, investors should be questioning when the inflection moment is in Starbucks' business, and what that inflection actually looks like. The turnaround wasn't in the just-completed quarter. It is unlikely to be the current quarter. Then, mix in high tariffs on coffee beans (including a 50% rate on Brazilian imports) and cautious US consumers. The stock has dropped 9% over the past week. But the valuation may still be too caffeinated. Shares trade on a price-to-earnings multiple of 31x forward earnings estimates as investors price in a Niccol-led comeback. That's asking a lot in the economic climate and against the backdrop of competitors like Dutch Bros. (BROS), Luckin (LKNCY), and countless others serving premium coffee. "More questions than answers ahead as investments into the biz stacking up and only some early signs of progress being made so far; we think downside risk is under-appreciated and rate the stock Underperform," Jefferies analyst Andy Barish wrote in a note. I worry Niccol has set the bar too high for short-term results, risking a letdown for hopeful investors if there isn't a clear inflection next quarter. Yahoo Finance's Invest Conference is coming up! Join me and the Yahoo Finance newsroom for our annual Invest conference, taking place in New York City, November 12-13. We just added a couple of new speakers to an already awesome lineup, with more on the way. Learn more about the conference and register today! Trust me, you will want to be in this room ahead of 2026. Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email
Bloomberg
11 minutes ago
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Yahoo
15 minutes ago
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'Big Beautiful Bill' imperils tribe's critical survival project: 'We still have homes that are not electrified'
'Big Beautiful Bill' imperils tribe's critical survival project: 'We still have homes that are not electrified' The vast majority of Americans can expect their electricity to be available when they need it — even though energy rates have risen significantly over the years, and there are emerging concerns about how new technologies could impact grid reliability. However, the One Big Beautiful Bill could uniquely threaten access to electricity for residents on the Hopi Tribe's reservation in Arizona, according to Tribal Business News, leaving tribal members vulnerable to extreme weather conditions, such as heat waves, and economic hardship as they fight to preserve their lands and cultural values. What's happening? President Donald Trump signed the Big Beautiful Bill, also known as House Resolution 1, into law July 4 after months of debate and amendments to the legislation by Congress. As expected, the final version of the bill is slashing many clean-energy tax incentives that the Hopi Tribe has relied on to expand access to electricity on the reservation, including electric credits for renewable projects that have reduced building costs by up to 30% to 50%. This could also imperil utility-scale solar projects meant to replace jobs and revenue after the 2019 closing of the Navajo Generating Station coal plant. The plant supplied others in the region with power while doing little to improve access to electricity on Hopi lands — while also releasing toxic, heat-trapping pollution into the surrounding area and atmosphere. Why is this important? According to the U.S. Department of Energy, a 2023 investigation into Tribal Electricity Access and Reliability found that lack of access to electricity on the Hopi Reservation and Trust Lands hit nearly 29%, whereas that percentage was just 1.4 for the average U.S. household. In an area where a round trip to the grocery store can take four hours, access to electricity can mean the difference between having food that's fit to eat or going without. Northeastern Arizona, where the Hopi reservation is situated, is also experiencing more frequent and intense heat waves because of a changing climate, making it all the more essential for residents to stay cool and protect themselves from the No. 1 weather-related killer. Hopi Tribal Chairman Timothy Nuvangyaoma told Tribal Business News that the passage of the Big Beautiful Bill has introduced "a lot of uncertainty" to the situation. "We're disappointed in leaders that don't look beyond their nose when it comes to those communities that rely on moving forward with this technology. We're in 2025 right now and we still have homes that are not electrified," Nuvangyaoma said. Do you think our power grid needs to be upgraded? Definitely Only in some states Not really I'm not sure Click your choice to see results and speak your mind. What is being done about this? While provisions in the Big Beautiful Bill do disincentivize many green projects that can improve access to electricity and stabilize rates — and cut the Tribal Energy Loan Guarantee Program — attorney Pilar Thomas told Tribal Business News that there's still a window of opportunity to get projects off the ground before tax incentives end. "The One Big Beautiful Bill Act is a big step backward, but I'm not quite as pessimistic as some, because most tribes are doing smaller projects," the partner at the Quarles and Brady law firm said. "... You've got to move, but I think tribes are doing mostly smaller projects for themselves, and I think those are still viable." The legislation also permanently reauthorized the New Markets Tax Credit, which has supported some tribal projects and makes it attractive for companies to build in underserved areas. For his part, Nuvangyaoma said the Hopi Tribe was "digesting" how the act could impact larger projects in development, including a 40-megawatt utility-scale solar array. Despite potential setbacks, he indicated his tribe still saw solar as a path toward achieving energy sovereignty. "I believe that there's people out there who see the impacts that tribal energy sovereignty can have, and so I am hopeful," he said. "We're always looking at what can be done in the darkest situations. We're used to that. With a little bit of light, we'll still move forward with development — we're acting as though none of our projects will be impacted until we can't do so anymore." Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet. Solve the daily Crossword
