Yen Strengthens on Prospects of Narrower Japan-U. S. Rate Differential
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Private equity recruiting of junior bankers is a state of upheaval. Here's what we know so far.
Getting a job in private equity is notoriously tough, especially for junior talent. To be considered, you must generally be on a competitive investment banking career track and willing to do anything to interview for jobs that will not start for another two years. As convoluted as it sounds, the mad dash known as on-cycle recruiting has long had one constant: It typically kicked off every summer in chaotic fashion, forcing aspiring dealmakers to drop everything at a moment's notice to compete. Not this year. For the first time in recent memory, the starting gun never fired. PE's chaotic recruiting race has been put on ice—indefinitely—leaving junior bankers in limbo. Instead of starting their finance careers with future-dated private equity jobs, junior bankers are entering the fall uncertain about when they might get the chance to compete — raising questions about this career path. Business Insider has been tracking the twists and turns, from JPMorgan's early crackdown to the new policies taking shape across a range of firms, from Goldman Sachs to Bank of America. The story is far from over. Industry recruiters say it's too early to know whether the PE recruiting playbook is just delayed or being rewritten. We'll update this page as things unfold. Stay tuned. Read the original article on Business Insider 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
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37 minutes ago
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Japan posts unexpectedly strong GDP, helped by resilient exports
By Makiko Yamazaki and Kantaro Komiya TOKYO (Reuters) -Japan's economy grew much faster than expected in the second quarter as export volumes held up well against new U.S. tariffs, giving the central bank some of the conditions it needs to resume interest rate hikes this year. Gross domestic product (GDP) rose 1.0% on an annualised basis, government data showed on Friday, marking the fifth straight quarter of expansion after the previous quarter's contraction was revised to growth. However, analysts warn global economic uncertainties fuelled by U.S. tariffs could weigh on the world's fourth-largest economy in the coming months, especially as automakers struggle to keep prices down for American customers. "The April-June data masked the real effect of Trump's tariffs," said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute. "Exports were strong thanks to solid car shipment volumes and last-minute demand from Asian tech manufacturers ahead of some sectoral tariffs. But these aren't sustainable at all." The increase in GDP was helped by surprisingly resilient exports and capital expenditure and compared with median market expectations for a 0.4% gain in a Reuters poll. It followed a 0.6% rise in the previous quarter, which was revised up from a 0.2% contraction. The reading translates into a quarterly rise of 0.3%, better than the median estimate of a 0.1% uptick. The strong data contrasts with China, which saw factory output growth hit an eight month low and retail sales slow sharply in July. Private consumption, which accounts for more than half of Japan's economic output, rose 0.2%, compared with a market estimate of a 0.1% increase. It grew at the same pace as the previous quarter. Consumption and wage trends are factors the Bank of Japan is watching to gauge economic strength and determine the timing of its next interest rate action. Capital spending, a key driver of domestic demand, rose 1.3% in the second quarter, versus a rise of 0.5% in the Reuters poll. Net external demand, or exports minus imports, contributed 0.3 of a point to growth, versus a 0.8 point negative contribution in the January-March period. The United States imposed 25% tariffs on automobiles and auto parts in April and threatened 25% levies on most of other Japanese imports. It later struck a trade deal in July that lowered tariffs to 15% in exchange for a U.S.-bound $550 billion Japanese investment package. Japanese economy minister Ryosei Akazawa told a press conference that the latest GDP results confirmed that the country's economy was recovering modestly. "Looking ahead, we expect better employment and income conditions and policy measures to support the modest recovery," he said. "But we need to be mindful of downside risks from U.S. trade policies." Akazawa said the U.S. tariffs are likely to push down Japan's real GDP by 0.3-0.4%. The government last week cut its inflation-adjusted growth forecast for this fiscal year to 0.7% from the initially projected 1.2%, predicting U.S. tariffs would slow capital expenditure while persistent inflation weighs on consumption. Exports have so far avoided a major hit from U.S. tariffs as Japanese automakers, the country's biggest exporters, have mostly absorbed additional tariff costs by cutting prices in a bid to keep domestic plants running. The economic resilience, along with a U.S.-Japan trade deal struck last month, supports views the BOJ could hike interest rate later this year. However, economists expect exports will suffer in the coming months as they start passing on costs to U.S. customers. "It's possible the economy could slip into decline in the July-September quarter as exports slow," Shinichiro Kobayashi, principal economist at Mitsubishi UFJ Research and Consulting, said. "For the economy to fully pick up, private consumption holds the key. Consumption could improve towards the end of the year as inflation gradually slows and sentiment recovers," he said. 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
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38 minutes ago
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Cava Shares Crash. Should Investors Buy the Stock on the Dip or Run for the Hills?
Key Points Cava shares sank after its same-store sales growth slowed. The company still has a long expansion runway, and therefore, plenty of growth potential for the stock. 10 stocks we like better than Cava Group › Shares of Cava Group (NYSE: CAVA) plunged after the Mediterranean-themed restaurant operator's same-store sales growth slowed in its fiscal second quarter (ended July 13), missing expectations. The stock is now down nearly 40% year to date as of this writing. Let's dive into the company's latest results and prospects to see if investors should buy the dip or steer clear of the stock. Same-store sales growth slows After reporting double-digit growth in comparable-restaurant sales (comps) each of the past four quarters, Cava's growth slowed considerably in its fiscal Q2. Comps edged up just 2.1% with guest traffic largely flat. That was well below the 6.1% increase that analysts were expecting, based on market intelligence site StreetAccount's estimates, and a big slowdown from recent quarters. Metric Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2005 Comps growth 14.4% 18.1% 21.2% 10.8% 2.1% Traffic 9.5% 12.9% 15.6% 7.5% -- Price and product mix 4.9% 5.2% 5.6% 3.3% 2.1% Data source: Cava Group. The company started the quarter strong, but once it lapped the introduction of its popular grilled steak a year ago, growth slowed. In response, Cava plans to push forward with more menu innovations, including the introduction of chicken shawarma in the coming weeks and cinnamon sugar pita chips. It said tests of chicken shawarma in select markets went well, and it expects the new item to help drive comps. Overall revenue for the quarter climbed 20% year over year to $278.2 million. It opened 16 new restaurants in the period, bringing its total to 398 locations, a nearly 17% increase compared to a year ago. It entered two new markets during the quarter, in Pittsburgh and Michigan. Management now plans to open between 68 to 70 new locations this fiscal year, up from a prior forecast of 64 to 68. Long term, management's goal is to reach at least 1,000 stores by 2032. Its restaurant-level margins (RLMs) came in at 26.3% in the quarter, down slightly from 26.5% a year ago. RLMs measure how profitable a chain's individual restaurants are before corporate costs, and they're an important restaurant industry metric. The company's RLMs just trail the 27.4% figure of Chipotle Mexican Grill despite having much lower scale than its larger rival. On the profitability front, Cava's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 23% year over year to $42.1 million. The company also generated $98.9 million in operating cash flow in the quarter and free cash flow of $21.9 million. Management lowered its full-year comps outlook for the year, taking it from 6% to 8% growth down to a range of 4% to 6% growth. But it maintained its 2025 adjusted EBITDA outlook of $152 million to $159 million, and its RLM margin forecast of 24.8% to 25.2%. Should investors buy the dip? In hindsight, with the restaurant industry's comps growth slowing in general, combined with the lapping of the introduction of Cava's highly popular grilled steak, it may not be that big of a surprise to see the chain's comps growth slow dramatically. That said, it doesn't take away from the fact that Cava is still a highly popular concept. The company's biggest opportunity is still its ongoing expansion. With fewer than 400 locations, it has a long growth runway that it is able to self-fund. These are also highly productive stores with an impressive average unit volume of nearly $3 million and top-tier RLMs. Trading at a forward price-to-earnings ratio (P/E) of nearly 123 and a forward price-to-sales ratio (P/S) of 7 based on 2025 analyst estimates, Cava stock is not cheap. However, if the company gets to 1,000 store locations in 2032, it could be generating close to $4.5 billion in revenue with consistent mid-single-digit comps growth. With Chipotle currently sporting a forward P/S ratio of 4.8, Cava stock has the potential to more than double over the next seven years if it were to trade at the same multiple that Chipotle does today. That's a strong outlook, and the restaurant chain could still expand beyond that point. As such, the stock's year-to-date slump does present an interesting opportunity. Long-term investors can consider taking a starter position in Cava now and add more shares on future dips. Should you invest $1,000 in Cava Group right now? Before you buy stock in Cava Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Cava Group 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 $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends Cava Group and recommends the following options: short September 2025 $60 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy. Cava Shares Crash. Should Investors Buy the Stock on the Dip or Run for the Hills? was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
