Texas Stock Exchange Stands by 2026 Debut
The Texas Stock Exchange is on track to make its debut as a trading venue early next year as its powerful rivals intensify their push into the state, said Jeb Hensarling, an adviser to the proposed marketplace and former US congressman.
After the start of trading, the upstart exchange aims eventually to add dual listings, initial public offerings and exchange-traded products, Hensarling said Tuesday in an interview with Bloomberg Television. The TXSE is seeking federal regulatory approval as a national securities exchange after applying earlier this year.
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Business of Fashion
12 minutes ago
- Business of Fashion
Farm Rio Raises Prices, Slows Exports to US
A Brazilian fashion company that's known for colourful prints sported by celebrities including Justin Bieber and Beyoncé is selectively raising prices to cushion the impact of tariffs while scaling back exports to the US. Azzas 2154 SA, owner of the Farm Rio brand, has already increased some prices in the US and is considering shifting parts of its production to Europe from China, chief executive officer Alexandre Birman said during an interview at Bloomberg's headquarters in New York. 'We don't know where tariffs will stop, but we've temporarily slowed US-bound imports,' Birman said. Azzas, one of Brazil's largest apparel exporters, is navigating turbulence in both the US and its home market, where high interest rates have fueled concerns about demand. Globally, sales for mid-tier fashion-focused brands have largely held up, but companies have warned the outlook for the second half is unclear. Brazil's apparel sales have remained healthy so far this year, but Azzas' international expansion may be hindered by higher tariffs. There's also opportunity: Birman sees an opening for Brazilian footwear manufacturing as companies look for alternative sourcing countries to avoid US duties. 'If tariffs on Chinese goods rise above 50 percent, we become competitive,' he said. 'In that case, we'd need to accelerate investments to expand local output, as China's production quality has improved significantly in recent years.' The US hiked tariffs to as high as 145 percent before they were scaled back to 30 percent for 90 days as the countries work toward an agreement. US President Donald Trump has also raised tariffs for countries across the board, and threatened the EU with a levy of 50 percent if no deal is reached. US states and small businesses are challenging the levies at the US Court of International Trade, which earlier ruled against the tariffs. A federal appeals court has temporarily allowed the tariffs to continue, but US trade policy will ultimately be decided by a combination of court rulings and trade negotiations between the US and foreign countries. In subsequent comments to Bloomberg, Birman said that Trump's policies have are causing uncertainty. If duties continue to rise, Azzas may move apparel production to Turkey or Portugal — a shift that would also support the European rollout of its Farm Rio brand. The company currently has a limited number of stores in the region. It's also looking to expand in the Middle East, Mexico and South America. The Farm Rio brand has six stores in the US and more than 100 in Brazil. Azzas, which was formed from the 2024 merger of Arezzo and Grupo Soma, has seen only a 'small impact' from tariffs so far, Birman said. The Belo Horizonte, Brazil-based company is focused on accelerating synergies and improving its cash flow as it merges operations. The group is streamlining operations with an eye on return on invested capital, he added, and hasn't ruled out deals related to its brands. The company also owns high-income brands including Animale, Maria Filó, Cris Barros and Fábula, among others. Birman also has a brand under his own name that sells shoes costing from $400 to $1,000. Actress Emily Blunt wore the shoes during the 2023 Oscar awards. Quarterly Results The integration is starting to deliver results, Birman said, with gains expected as the company streamlines logistics and shipping operations and combines areas such as e-commerce and customer service. In the first quarter, revenue rose sharply from a year earlier. Investors are watching closely for signs of progress. Ruben Couto, an analyst at Banco Santander, said in a recent note to clients that the company's negative operational cash flow and high capital expenditures contributed to higher debt last quarter. To counter this and instil financial discipline, employee bonuses are now tied to Azzas' free cash flow, Birman said. Management also plans to lower capital expenditures by 120 million reais ($21 million) next year by reducing spending on technology and opening new stores via franchisees. Birman downplayed a report from Valor Econômico, a Brazilian newspaper, that there's tension with Grupo Soma founder Roberto Jatahy. 'There are points of divergence that generate interesting debates,' Birman said of his relationship with Jatahy. He added that 'everything is governed by a valid agreement, including a 10-year lock-up plan, to uphold its terms.' Last year, the company's major shareholders agreed to a lock-up plan that restricts the sale of their stakes except in specific cases. Birman and Jatahy are major shareholders in the combined entity, and Soma generates about 30 percent of revenue. Azzas' Brazil-listed stock has advanced more than 50 percent so far this year, with much of the jump following the company's first-quarter earnings release last month. Birman added he has a 'deep: relationship with Farm Rio's founders, Katia Barros and Marcello Bastos. 'We have a fashion connection, there's a constructive relationship with strategy to improve the business,' he said. By Rachel Gamarski Learn more: Why Tariffs Haven't Led to Soaring Prices – Yet Fashion brands will eventually need to offset higher costs for imports. But after raising prices again and again since the pandemic, some retailers are more worried about alienating shoppers than how they'll pay their customs duties.
Yahoo
30 minutes ago
- Yahoo
‘So Bad It's Good': Buying Window Opens for Battered Small Caps
(Bloomberg) -- The smallest US stocks have entered a historically favorable time of year, boosting hopes that the beleaguered group can rebound after a dismal start to 2025. ICE Moves to DNA-Test Families Targeted for Deportation with New Contract The Global Struggle to Build Safer Cars NYC Residents Want Safer Streets, Cheaper Housing, Survey Says The Buffalo Architect Fighting for Women in Design Small-cap stocks have outpaced their bigger counterparts 60% of the time in June since 1990, according to an analysis from Evercore ISI strategist Julian Emanuel. That seasonality has been even more pronounced when larger stocks are trouncing smaller ones, as they are this year: In those instances, the returns of smaller stocks have bested the larger peers in June every single time. Such a period would be a long-awaited bright spot for small-cap investors, should history repeat. The Russell 2000 Index, a small-cap benchmark, hasn't made a fresh record high since 2021 and has fallen 5.9% year-to-date as uncertainty sparked by President Donald Trump's trade war shocked markets. The S&P 500 has also seen its share of dizzying swings, but is up 1.5% for the year and stands within a few percentage points of February's all-time high. 'It is truly a case of small caps being 'so bad, it's good,' right now,' Emanuel said. 'Buy these stocks for a possible performance-reversion trade in June, and perhaps for longer if macro catalysts such as trade deals materialize.' Small-cap stocks initially benefited from the enthusiasm that gripped markets following Trump's election late last year, as investors bet that the lower taxes and reduced regulation he had promised would help smaller companies. But the administration's focus on tariffs — another key part of Trump's platform — sparked worries that small-cap firms would be more vulnerable to the economic disruptions that a trade war could bring, souring investors on the category in the early months of 2025. Bearish Bets While a rally in some of the market's riskier names has boosted small-cap stocks, positioning data shows that traders remain largely negative on the group. Open interest in bullish call options on the biggest fund tracking the Russell 2000 was hovering near the lowest level since February relative to put options earlier this week, suggesting market participants are bracing for more declines. The measure has become slightly more bullish over the last trading session. Meanwhile, bearish bets against small-caps have been growing. Short interest in dollar terms in the iShares Russell 2000 ETF — which shows how much bearish investors have at risk on their wagers — has risen to the highest level since 2022, according to data from S3 Partners. Still, the buildup of bearish positions also creates the conditions for a squeeze higher, if rising prices or favorable news causes those investors to unwind their bets on small-cap stocks, said Jeff Jacobson, derivatives specialist at 22V Research. 'We have seen these 'consensus' ideas flip very quickly on short notice,' Jacobson said. Signs that the US is reaching constructive agreements with its trading partners and strong economic data could heighten the group's appeal, strategists said. While its still early days, small-cap stocks are so far enjoying a tailwind this month. The Russell 2000 has outperformed the S&P 500 by over half a percentage point in the first three trading days of June. Technical strategists, who analyze chart patterns to predict where stocks may be headed next, are also seeing constructive signals. The Russell 2000 is near an 'inflection point' at its current level of around 2,100, according to analysts at Piper Sandler. A break could see it rise 19% to 2,500 by mid-August, they wrote on Wednesday. Jacobson, of 22V, also expects a 'decent-sized move higher' in the small-cap index in the short term. 'It is a window of opportunity,' he said. Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
39 minutes ago
- Yahoo
2 Recession-Proof Stocks to Buy and Hold
Even amid an uncertain economic environment, reliable companies can be found. Zoetis helps people care for pets, which many consider as honorary family members. HCA Healthcare offers services in high demand, regardless of economic conditions. 10 stocks we like better than Zoetis › President Trump's trade policies are sparking concerns about a potential recession. Though it's hard to predict an upcoming economic downturn, it's never a bad idea for investors to buy shares of companies that can perform relatively well even in bad times. These corporations often have robust underlying businesses built to deliver consistent results and superior returns over the long run. Here are two great examples for investors to consider: Zoetis (NYSE: ZTS) and HCA Healthcare (NYSE: HCA). Zoetis, a leading animal health company, has faced some challenges over the past year. The company's recent financial results weren't great, and it is dealing with increased competition for some of its growth drivers, including Apoquel, a medicine to treat allergic itch in dogs. However, as Zoetis points out, there is significant whitespace in this niche. It estimates that 13 million dogs are eligible for the medicine but aren't on any prescription, and another 7 million are undertreated. The company currently treats 12 million dogs with Apoquel and Cytopoint, a similar medicine. Although Zoetis markets products for livestock, poultry, and other animals, the company's work with pets, particularly cats and dogs, is one of the primary reasons it can survive a recession relatively unscathed. People view their pets as family members and are more than willing to pay a significant amount to ensure they are well cared for. The increased humanization of pets should also be a significant long-term growth driver for Zoetis, a trend that is particularly prevalent among younger generations, who are less likely to have children than older ones. It might be pushing it to say that pets are the new kids, but it's not too far from the truth for many pet owners. The rest of Zoetis' business grants it significant diversity. The animal health leader generally grows its revenue at rates faster than the industry average, something it has been able to do for a while, despite competition, through the continuous development of newer medicines. Two of its more recent important approvals, Solensia and Librela that treat osteoarthritis pain in cats and dogs, respectively, are becoming key growth drivers, too. So, despite being slightly in the red over the trailing-12-month period, Zoetis is well-equipped to handle a recession if one is coming, while delivering strong returns in the long run. Lastly, the stock is also an excellent pick for income seekers despite its unimpressive forward yield of 1.2%. Zoetis has increased its payouts by 502% in the past decade. Whether it's for dividends or growth, the healthcare specialist is a great option. HCA Healthcare's business remains in high demand even in recessions. The company is a leading hospital chain in the U.S., and even during economic downturns, people still require critical medical care. True, some procedures performed in the company's facilities are optional. Even for those that aren't, patients may sometimes postpone them when things get tough. So, there will be an impact on the company's results, but it should be fairly minimal. Over the past year, the company has faced another source of headwinds. Various natural disasters, including hurricanes, impacted its financial results in some areas, resulting in lower revenue than anticipated. Still, HCA Healthcare continues to deliver decent updates. In the first quarter, the company's revenue increased by a modest 5.7% year over year to $18.3 billion. Its earnings per share came in at $6.45, up 8.8% compared to the year-ago period. Despite this headwind, HCA Healthcare's long-term prospects are attractive. An aging population that will require more medical care should lead to increased spending on precisely the kinds of services it offers. HCA Healthcare has also deepened its relationships with physicians, patients, and third-party payers over time, partly through the adoption of more services. It would be challenging for any newcomer to seriously challenge HCA Healthcare, considering the ecosystem it has already built, which arguably grants it a network effect. Although there is competition, HCA Healthcare has generally increased its market share over the past decade. The stock should continue delivering superior returns long after the next recession hits, whenever that happens. Before you buy stock in Zoetis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Zoetis wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Zoetis. The Motley Fool recommends HCA Healthcare. The Motley Fool has a disclosure policy. 2 Recession-Proof Stocks to Buy and Hold was originally published by The Motley Fool 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
