Latest news with #Saunders
4 days ago
- Business
US producer prices unchanged with wholesale inflation remaining under control
WASHINGTON -- U.S. wholesale inflation cooled last month, despite worries that President Donald Trump's tariffs would push prices higher for goods before they reach consumers. The Labor Department reported Wednesday that its producer price index was unchanged last month from May after rising 0.3% the previous month. June wholesale prices rose 2.3% from a year earlier, the smallest year-over-year gain since September. Both measures came in below what economists had expected. Excluding volatile food and energy prices, so called core producer prices were also unchanged from May and up 2.6% from June 2024. The report on wholesale inflation arrived a day after the Labor Department reported that consumer prices last month rose 2.7% from June 2024, the biggest year-over-year gain since February, as Trump's sweeping tariffs pushed up the cost of everything from groceries to appliances. Consumer prices and producers prices do not always move in tandem, however. Bradley Saunders, North America economist at Capital Economics, saw some signs of the impact of Trump's tariffs in a 0.3% increase in core wholesale goods prices. Furniture prices rose 1% from May and home electronics 0.8%, he noted. Both of those types of goods are heavily imported. But producer prices at steel mills fell 5.5% despite Trump's hefty 50% tax on imported steel. Some companies bought products before Trump rolled out his tariffs and have relied on those inventories to keep a lid on prices. But Saunders warned that those inventories are running low and that Trump plans to impose stiff tariffs (such as 25% levies on Japanese and South Korean imports) starting Aug. 1. 'We are not out of the woods yet,'' Saunders wrote in a commentary. The producer price report showed that auto retailers' profit margins dropped 5.4%, suggesting that car dealers were eating the cost of Trump's 25% tariff on some imported cars and auto parts. That might explain why new vehicle prices fell last month in the consumer price report Tuesday. 'We doubt that auto retailers will continue to absorb the tariffs indefinitely,'' wrote Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics, 'but they have room to fall a good deal further after they surged during the spike in sales as people sought to get ahead of tariffs on imported vehicles.'' Wholesale prices can offer an early look at where consumer inflation might be headed. Economists also monitor the report closely because some of its components, notably measures of health care and financial services, flow into the Federal Reserve's preferred inflation gauge — the personal consumption expenditures, or PCE, index. Inflation began to flare up for the first time in decades in 2021, as the economy roared back with unexpected strength from COVID-19 lockdowns. That prompted the Fed to raise its benchmark interest rate 11 times in 2022 and 2023. The higher borrowing costs helped bring inflation down from the peaks it reached in 2022, and last year the Fed felt comfortable enough with the progress to cut rates three times. But it has turned cautious this year while it waits to see the inflationary impact of Trump's trade policies. Trump has aggressively stepped up pressure on the Fed to cut rates, which has been seen as a threat to the central bank's independence.
Time of India
4 days ago
- Business
- Time of India
US inflation trend: Producer prices remain flat in June; tariff effects may hit harder from August
Wholesale inflation in the US showed no increase in June, indicating continued restraint on upstream price pressures despite mounting concerns over President Donald Trump's sweeping tariffs, according to fresh data from the Labor Department. The producer price index (PPI), which tracks prices before they reach consumers, was flat in June compared to the previous month, following a 0.3% uptick in May. On a year-on-year basis, wholesale prices rose 2.3%, the smallest increase since September and lower than economists had forecast, AP reported. Core PPI—which excludes food and energy—was also unchanged from May and up 2.6% from June 2024. The report came a day after the government said consumer prices rose 2.7% year-on-year in June, the sharpest rise since February. That increase was attributed in part to tariffs raising prices on imported goods ranging from appliances to groceries. However, economists warned that wholesale and retail inflation do not always move in lockstep. Bradley Saunders, North America economist at Capital Economics, flagged a 0.3% increase in core wholesale goods as a sign of tariffs beginning to bite. 'Furniture prices rose 1% from May and home electronics 0.8%,' Saunders noted, pointing out both are heavily import-reliant sectors. Still, wholesale steel prices fell 5.5%, defying expectations despite Trump's 50% tariff on imported steel. Saunders suggested some companies may be drawing on pre-tariff inventories, but warned this buffer may soon run out. New 25% tariffs on Japanese and South Korean imports are set to kick in from August 1. 'We are not out of the woods yet,' he cautioned. Retailers too are feeling the squeeze. Profit margins at auto retailers dropped 5.4%, suggesting dealers are absorbing some of the cost from Trump's 25% tariff on foreign cars and parts. That aligns with Tuesday's consumer inflation report showing a dip in new vehicle prices. Samuel Tombs, chief US economist at Pantheon Macroeconomics, told AP this may not last. 'We doubt that auto retailers will continue to absorb the tariffs indefinitely,' he wrote, adding that prices could fall further before rebounding. Wholesale prices offer early signals of inflationary trends that affect consumers. They also feed into the Federal Reserve's preferred inflation gauge, the personal consumption expenditures (PCE) index. After raising interest rates 11 times across 2022 and 2023 to combat post-pandemic inflation spikes, the Fed cut rates three times in 2024. But in 2025, it has paused further easing as it monitors the impact of Trump's trade policies. The president has also stepped up political pressure on the Fed to resume rate cuts, raising concerns about the central bank's independence. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Yahoo
10-07-2025
- Sport
- Yahoo
Exclusive: Former Liverpool Star Hails ‘Brilliant' Arne Slot, Florian Wirtz Signing and More
Arne Slot's Sensational Debut Season: Dean Saunders' Exclusive Thoughts Arne Slot's first season at Liverpool could hardly have gone better. Arriving with the enormous challenge of following Jurgen Klopp, Slot not only met expectations but exceeded them, guiding Liverpool to a Premier League title in his debut campaign. Speaking exclusively to Anfield Index, Dean Saunders shared his views on Slot's success and why Liverpool fans should be excited for the season ahead. Advertisement Winning Over the Dressing Room 'Arne Slot has done brilliantly,' Saunders said. 'He must have been so tempted to do things his own way, but he's managed not to change too much. That's the clever part of it for me because the players will have missed Jurgen Klopp.' Saunders highlights how important it was for Slot to win the trust of key players like Mohamed Salah early on. Slot's ability to blend his own ideas carefully with the Klopp foundations showed both humility and intelligence. Saunders added, 'If Slot had started doing things differently to what made Klopp successful, and the team had lost a couple of games, the players would have been asking 'who is this bloke?'' That early man-management was critical in creating a unified dressing room that could fight for the title. Photo: IMAGO Advertisement Navigating Challenges in Europe Liverpool's Champions League exit at the hands of eventual winners Paris Saint-Germain was tough to take. But Saunders sees no shame in that. 'Liverpool had a great start, they won a lot of games. They were knocked out of the Champions League, but Paris Saint-Germain are a brilliant side – everyone can see how good they are.' The experience in Europe will likely fuel the team next season, offering valuable lessons that Slot and his coaching staff can build on. Exciting Summer Signings Looking ahead, Saunders was full of praise for Liverpool's transfer business. 'Frimpong is a different player to Trent. He's good going forward, a great athlete and you're going to see him galloping up and down that right flank.' Advertisement Replacing Trent Alexander-Arnold is no small task, but Jeremie Frimpong brings energy and dynamism. On the left, Milos Kerkez arrives to compete with, not replace, Andy Robertson. Saunders emphasised, 'I wouldn't sell Andy Robertson. He's 31, a proven left-back and I wouldn't write him off. Kerkez can work with Robertson and learn how to play for Liverpool.' The most exciting addition, though, is Florian Wirtz. Saunders described him as 'a cross between Jack Grealish, James Maddison and Philippe Coutinho.' That type of creativity and unpredictability could be the key to unlocking deep defensive blocks next season. X: @LFC Advertisement Liverpool's title chances Despite strong competition, Saunders is optimistic. 'Arsenal have made some good signings and Manchester City look as if they will improve, but I still make Liverpool favourites.' With Slot's smart leadership, a settled squad and exciting new arrivals, Liverpool have every reason to believe they can defend their Premier League crown. The Anfield faithful will be hoping that this is just the start of a new era of success under Slot.
Yahoo
08-07-2025
- Business
- Yahoo
J.C. Penney to hold down prices for back to school, holiday despite Q1 declines
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. J.C. Penney's total Q1 net sales fell 4.3% year over year to $1.3 billion, according to financial filings Monday. Exceeding expectations were JCPBeauty, which saw double-digit year-on-year comp sales, along with fine jewelry, home, men's and kids'. Net loss widened 9.5% to $69 million. Consolidated adjusted EBITDA swung into the black, reaching $2 million from last year's negative $3 million; this year's result excludes one-time restructuring charges, mostly vendor write-offs and other severance charges. The department store warned that tariffs threaten profits but also stated that it 'plans to maintain pre-tariff pricing on back-to-school basics and other key holiday areas.' Despite the sales and profit declines, this was a decent quarter for J.C. Penney, given that 'sales are now deteriorating at a much shallower pace than previously,' according to GlobalData Managing Director Neil Saunders. 'This isn't exactly a win – especially as the decline comes off the back of weakness in the prior year – but it provides a little comfort that JCP is not on a headlong dash to irrelevance,' he said by email. The department store's recently unveiled 'Yes, J.C. Penney' campaign helped boost traffic by 600 basis points year over year and brand search by 22%, according to its filing. This is backed up by research from which found that, after ads began running in April, 'traffic to the chain picked up significantly,' with visits to stores up 0.7% in April and 3% in May compared to last year. In some areas, those included single shoppers, which suggests that younger consumers are discovering the brand, per report. The retailer's integration into Catalyst Brands earlier this year is also paying off, according to the filing. Synergies from the January tie-up with various Authentic Brands Group brands and their operators helped bring selling, general and administrative costs down by $36 million compared to a year ago. The more modest declines in Q1 mean that Penney is not the worst-performing department store, which Saunders said was its fortune for the better part of last year. 'Again, this is a crumb of comfort, but it will provide some confidence to management. It also underlines that the work the company has done to improve stores and invest in ranges might be having an impact,' he said. 'The losses remain a modest concern but given JCP's wider financial position and its place as part of a larger group, it is not a disaster.' 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
Business Wire
08-07-2025
- Business
- Business Wire
Texas Inn Reduces Prices on Half Its Menu
RICHMOND, Va.--(BUSINESS WIRE)--Texas Inn, the iconic Virginia restaurant known for serving 'good, fast, and cheap' food, announced lower prices on nearly half of its menu items. With locations in Lynchburg, Harrisonburg, and Richmond, the Virginia Legacy Restaurant chain has been able to leverage lower food costs with vendors and find local sources for many of its day-to-day needs. The result? Cheaper prices for all four locations in Virginia. The result? Cheaper prices for all four locations in Virginia. Share 'Inflation and rising costs have been killing us over the past 4 years,' said Managing Partner & Owner Dave Saunders. 'But we completed a comprehensive food cost analysis and identified opportunities to lower overall operating costs on food and supplies, mainly through re-negotiating with vendors and finding sources closer to home for the things we need." Some of the classic menu items that will now be cheaper include: Cheesy Western Hot Dogs Breakfast Plates & Sides Fries & Onion Rings Signature burgers such as the Tommy Burger, FlameBurger, and HarrisonBurger 'The T Room,' as it's known by regulars, discovered almost all of its food and supplies come from within the United States, with more than half sourced within the Commonwealth of Virginia. Although tariffs have had a small effect on some items, like coffee from Colombia and some produce from Mexico, prices for those menu items will not be impacted. Following a detailed food cost analysis, Texas Inn streamlined its vendor relationships through combination contracting, allowing the restaurant to consolidate suppliers, reduce overall food costs, and pass those savings on to customers through lower menu prices. 'We know every dollar counts right now,' says Saunders. 'The Texas Inn has always put our loyal customers first. This isn't a limited-time offer; this is a long-term commitment to providing more value and serving our community.' New menu prices have already begun to take place. To learn more, visit About Texas Inn The Texas Inn, known by locals as 'The T Room,' is one of Virginia's oldest restaurants, founded in 1935. Now with four locations – Lynchburg, Cornerstone, Richmond and Harrisonburg – the legendary diner still serves '1,500 people, 15 at a time' and has served more than 9 million customers. Learn more at
