Latest news with #US-Canadian
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17 hours ago
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RBC's Calvasina Says Too Early to Dismiss Tariff Hit to Earnings
(Bloomberg) -- The US reporting season is off to a strong start, but it would be premature to write off the impact of tariffs on inflation and corporate earnings, according to RBC Capital Markets strategists. The High Costs of Trump's 'Big Beautiful' New Car Loan Deduction Can This Bridge Ease the Troubled US-Canadian Relationship? Budapest's Most Historic Site Gets a Controversial Rebuild Trump Administration Sues NYC Over Sanctuary City Policy The team led by Lori Calvasina said early trends suggest US companies have been resilient to the trade war so far. However, a slate of executives have warned that the effects will become clearer in the second half of the year, they said. 'It's still too early to assume tariffs won't generate inflation pressures,' Calvasina wrote in a note that was published Sunday, after the trade agreement between the European Union and the US was announced. 'It also poses a risk to the path of stock prices if company outlooks for 2026 don't end up being as rosy as investors have been anticipating.' US stocks have rallied to record highs as investors bet earnings would continue to be robust. About 82% of S&P 500 companies have beaten second-quarter earnings estimates to date, the largest share in almost four years, according to data compiled by Bloomberg Intelligence. Progress in US trade negotiations has also lifted sentiment. In the latest agreement announced Sunday, Washington and the European Union agreed on a pact that will see the bloc face duties of 15% on most of its exports. Some market forecasters including Morgan Stanley's Michael Wilson have turned more optimistic about the S&P 500 as they expect earnings to remain upbeat. On Monday, Oppenheimer & Co.'s John Stoltzfus upgraded his year-end target for the benchmark to 7,100 points — the highest among strategists tracked by Bloomberg. However, others like UBS Group AG's Bhanu Baweja have previously warned the market was too optimistic about profit margins being protected even in the face of higher levies. Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Elon Musk's Empire Is Creaking Under the Strain of Elon Musk Confessions of a Laptop Farmer: How an American Helped North Korea's Wild Remote Worker Scheme Scottish Wind Farms Show How to Counter Nimby Opposition ©2025 Bloomberg L.P.
Yahoo
21 hours ago
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UPS Withholds Outlook on Market Upheaval After Mixed Quarter
(Bloomberg) -- United Parcel Service Inc. declined to provide earnings guidance as it struggles to get a handle on volatility in the market, underscoring the challenges for the courier's effort to reconfigure its network and revitalize its business. Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus Can This Bridge Ease the Troubled US-Canadian Relationship? Trump Administration Sues NYC Over Sanctuary City Policy An Abandoned Art-Deco Landmark in Buffalo Awaits Revival The company said Tuesday that it would not give a revenue or operating profit forecast for the full year 'given the current macro-economic uncertainty.' UPS offered limited predictions around capital expenditures and dividend payments in 2025, and said it still expects $3.5 billion in expense reductions from its ongoing turnaround plan. The hazy outlook suggests a rebound remains out of reach and extends the uncertainty around UPS' business after the company said in April it wouldn't update prior expectations. While many companies suspended guidance early this year due to volatility stemming from President Donald Trump's trade policies, a number of those outlooks have been restored more recently. 'The overall US economy demonstrated continued resilience, but our sector, specifically the US small package market, was unfavorably impacted by US consumer sentiment that was near historic lows,' Chief Executive Officer Carol Tomé said on a conference call to discuss quarterly results. The Atlanta-based courier is struggling to recapture the volume it experienced during the early years of the pandemic, when consumers turned to online shopping while stuck at home. The comedown, exacerbated for UPS by the threat of a union strike that sent some customers to rival firms, has proven stubborn thanks to weak demand across the economy. The company is also grappling with deep-rooted issues such as too much unprofitable volume and high cost structures. Adjusted earnings in the second quarter were $1.55 a share, UPS said in a statement, narrowly missing the $1.56 average of analyst estimates compiled by Bloomberg. Package revenue $14.08 billion was better than expected. UPS shares fell 6.6% as of 9:36 a.m. in New York, the most intraday since April 3. The stock tumbled 19% this year through Monday's close, while the S&P 500 Index gained 8.6%. 'Sentiment was decidedly negative heading into' earnings, wrote JPMorgan analyst Brian Ossenbeck. 'The results and lack of guidance will do little to change that at this point.' To solve some of its woes, UPS has said it's excising more than half of its Amazon business, which represented as much as 11.8% of UPS' total revenue last year. As it pulls away from its largest customer, UPS is focusing on shipments that bring in higher margins than low-value e-commerce parcels. To reorient around smaller volumes, UPS is closing and consolidating facilities and automating them, as well as reducing headcount. Earlier this month the company offered its first-ever voluntary separation agreement to full-time union drivers. The offer includes $1,800 per year of service with a minimum payout of $10,000 for drivers to leave the company. The buyout reflects the unprecedented moment that UPS finds itself in. After more than a century of continual growth, the company is now seeking to slim down its delivery network, and with it, its ranks. While UPS focuses on internal efficiencies, there is less the company can do about trade policies affecting its business. New tariffs, especially the end of the de minimis exemption allowing certain imports into the country duty-free, hit the company's most profitable trade lane, reducing average daily volume between the US and China by 35%, a bigger hit than the company had expected, Chief Financial Officer Brian Dykes said on a conference call with analysts. Another miscalculation adding to UPS' costs in recent months was the decision to break away from a partnership with the US Postal Service in which the company handed off packages to the agency for pricey last-mile deliveries. UPS brought those deliveries in house this year, and found that the cost was higher than expected. Tomé told analysts Tuesday that the company has 'reengaged' with the Postal Service, coinciding with new leadership at the agency. (Updates shares, adds CEO, analyst comments from the fourth paragraph.) Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts Elon Musk's Empire Is Creaking Under the Strain of Elon Musk ©2025 Bloomberg L.P. 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
Yahoo
21 hours ago
- Business
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Chinese Crypto Giant Bitmain Plans US Factory in Trump-Era Push
(Bloomberg) -- Bitmain Technologies Ltd., the world's largest manufacturer of crypto mining hardware, plans to open its first US facility in the coming months, a strategic pivot riding the 'Made in America' boom in digital assets. Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus Can This Bridge Ease the Troubled US-Canadian Relationship? Trump Administration Sues NYC Over Sanctuary City Policy An Abandoned Art-Deco Landmark in Buffalo Awaits Revival The company intends to officially open a new headquarters and assembly line in either Texas or Florida by the end of the third quarter. Initial output is expected in early 2026, with full-scale production ramping up later in the year, according to Irene Gao, Bitmain's global business chief. The move reflects the renewed wave of American industrial policy favoring domestic production, and operational necessity. As Washington reshapes supply chains around national industrial policies, crypto mining — once a fringe pursuit — is joining the ranks of strategic industries, like semiconductors and energy. Bitmain expects local production to speed up deliveries and repairs for US customers, Gao said. Labor costs are higher, she added, but the move still makes commercial sense — especially in light of uncertainty around tariffs. The US push for Bitcoin supremacy represents 'a unique opportunity,' said Gao, Bitmain's president of mining and chief global business officer, in an interview. Bitmain holds a commanding share of the market for computers used to mine crypto, but US President Donald Trump's trade war has disrupted its American business. Shipments from the Beijing-based company have been held up amid heightened Customs and Border Protection scrutiny, while in January the US Commerce Department blacklisted its artificial-intelligence affiliate, accusing it of 'acting at the behest of Beijing to further the PRC's goals of indigenous advanced chip production.' Further complicating matters is Trump's campaign-trail pledge to concentrate Bitcoin mining activity in the US. Bitmain announced the launch of a US facility about a month after his November 2024 election victory, without divulging its location. Gao said Bitmain intends to hire 250 local employees in the first phase, trained for both manufacturing and site-level maintenance. Bitcoin miners use specialized computers to solve mathematical problems in order to verify blockchain transactions and earn rewards. It's a market Bitmain has dominated since 2013 despite significant changes in the makeup of the energy-intensive industry. Now though with Chinese supply chains under fire and US crypto firms gaining political clout, Bitmain is pushing to secure access to US markets. The US is considered the mining sector's global fulcrum, rising to the fore after a ban in China. Publicly listed American miners — such as Mara Holdings Inc., Riot Platforms Inc. and CleanSpark Inc. — are collectively worth tens of billions of dollars. Trump's sons Eric Trump and Donald Trump Jr. have helped to set up a crypto mining venture named American Bitcoin Corp., in partnership with Hut 8 Corp. and a group of investors. Hut 8 in November 2024 announced the purchase of 31,145 Bitmain machines to upgrade its mining fleet, with delivery expected early 2025. Bitmain's current production capacity includes facilities spread across Southeast Asia — a region vulnerable to stiff trade-protection measures from the Trump administration. What obstacles Bitmain may encounter as it seeks a foothold in the US remain to be seen. Chinese Bitcoin miners operating on US soil drew scrutiny over security concerns during former President Joe Biden's administration. US regulators have not clarified whether crypto hardware will be subject to the same export checks as artificial-intelligence chips. Bitmain has maintained its lead through proprietary technology that enables mass production of powerful mining chips at low cost. While a flurry of US-based companies, including Jack Dorsey's Block Inc. and MARA Holdings-backed Auradine, have entered the mining hardware business, they are yet to match the global scale of China's top manufacturers. --With assistance from David Pan. (Expands tout) Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts Elon Musk's Empire Is Creaking Under the Strain of Elon Musk ©2025 Bloomberg L.P. 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
Yahoo
a day ago
- Business
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Trump Official Says More Talks Needed to Clinch India Deal
(Bloomberg) -- US Trade Representative Jamieson Greer said 'more negotiations' will be needed with India on a trade deal just days before an Aug. 1 deadline for higher tariffs. Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus Can This Bridge Ease the Troubled US-Canadian Relationship? Trump Administration Sues NYC Over Sanctuary City Policy Washington needs additional talks to gauge how ambitious India's government is willing to be to secure a trade agreement, Greer said in an interview on CNBC on Monday. He acknowledged he had previously suggested a deal with New Delhi might be imminent, but highlighted that India's historic policy of strongly protecting its market meant that reducing barriers would represent a major reversal. 'We continue to speak with our Indian counterparts, we've always had very constructive discussions with them,' he said. The comments indicate that India's hopes of securing an interim trade deal before the Aug. 1 deadline are fading as New Delhi and Washington are yet to find a common ground on contentious issues. While India was among the first nations to approach the White House for trade talks earlier this year, it has recently toughened its stance in negotiations. India's Ministry of Commerce and Industry didn't immediately respond to an email seeking further comment. 'They have expressed strong interest in opening portions of their market, we of course are willing to continue talking to them,' Greer said. 'But I think we need some more negotiations on that with our Indian friends to see how ambitious they want to be.' He spoke a few days after Indian Commerce Minister Piyush Goyal said he was optimistic that an agreement could be reached to avert threatened tariffs of 26%. Goyal insisted there weren't any sticking points in the US-India relationship, and said that immigration rules — including those around H-1B visas for skilled workers — had not come up in talks. Greer did not say what would happen if no deal was reached with India by the White House's deadline. US President Donald Trump has touted zero tariffs in the preliminary agreements with the European Union and Japan, while promising to impose even higher duties on Aug. 1 for countries that haven't cut deals. Follow Bloomberg India on WhatsApp for exclusive content and analysis on what billionaires, businesses and markets are doing. Sign up here. Trump has separately threatened to hit countries like India and China with 'secondary tariffs' for buying oil from Russia. As part of its trade negotiations, India has expressed willingness to offer zero tariffs on some goods like auto components and pharmaceuticals, while barriers on sectors like agriculture and dairy remain red lines it won't breach in the final agreement, Bloomberg News reported earlier this month. 'The thing to understand with India is their trade policy for a very long time has been premised on strongly protecting their domestic market. That's just how they do business' Greer said. 'And the president is in a mode of wanting deals that substantially open other markets, that they open everything or near everything.' Slow Business The uncertainty on India-US trade agreement has slowed business activity in some sectors, with industries from gems to toys and textiles witnessing order suspensions. Kanodia Global, a manufacturer and exporter of home fabrics and textiles to the US, said customers including Walmart Inc. are turning cautious and holding out on giving large orders. US buyers want shorter delivery time as they don't want their money stuck while the final tariff rate changes, said the company's director Ashish Kanodia. 'Our orders are stuck in limbo. If certainty is there, we will be able to move forward.' Sabyasachi Ray, executive director at The Gem and Jewellery Export Promotion Council, also expressed concern over weak business. 'People are tired,' he said. 'We will be highly affected. But something has to come, so we will see.' (Updates with more details from 13th paragraph) Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off Elon Musk's Empire Is Creaking Under the Strain of Elon Musk ©2025 Bloomberg L.P.
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a day ago
- Business
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Lutnick Sees Likely 90-Day Extension of China Trade Truce
(Bloomberg) -- Commerce Secretary Howard Lutnick said a 90-day extension of a trade truce with China was a likely outcome with negotiations between the two countries underway in Stockholm. Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus Can This Bridge Ease the Troubled US-Canadian Relationship? Trump Administration Sues NYC Over Sanctuary City Policy 'Is that a likely outcome? Sure, it seems that way, but let's leave it to President Trump to decide,' Lutnick said in an interview Monday on Fox News when asked about reports that the two nations were considering keeping their tariff agreement in place for another three months. Lutnick's comments followed the start of a new round of talks between the world's two largest economies — this time in Stockholm, where Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent led the respective delegations. Earlier rounds saw Washington and Beijing agree to reduce tit-for-tat levies and ease export controls on certain technology and rare-earth minerals, easing tensions that had rattled financial markets as Trump moves to enact a sweeping tariff agenda. But that agreement is set to expire on Aug. 12, leading to new discussions aimed at extending the truce and giving the US and China more time to address issues such as duties tied to fentanyl trafficking that President Donald Trump has levied and concerns about Chinese purchases of sanctioned Russian and Iranian oil. The two sides are slated to continue talks on Tuesday. The China trade talks also come as the US gears up for a separate deadline for other trading partners, with so-called reciprocal tariffs slated to kick in on Aug. 1 against dozens of economies. Trump initially unveiled those rates in April — before pausing them after they sparked market turmoil and giving economies a change to negotiate lower duties with the US. But that stretch has seen few deals actually materialize even after Trump extended the initial mid-July deadline to August. The president has begun issuing letters unilaterally setting rates for countries that were not able to negotiate a deal. Trump has said more letters are coming for more than 150 countries. Earlier Monday, he said that he was considering tariffs in the range of 15% to 20% for those remaining nations. Lutnick said Trump is still weighing possible deals even with the deadline just days away. 'He's done these big deals. He's got really all the cards in front of him,' Lutnick said. 'As he said, he's going to decide what the tariff rate is, how much these countries are going to open their markets.' 'That's what we're going to do this week. We're going to basically — he's going to consider a few deals, of course he will, but basically what he's going to do is he's going to set the tariff rate for everybody and do that by the end of the week,' he added. Trump has shown a willingness to lower rates for countries that come with fresh offers even after announcing their levies, including Japan which was told it faced a 25% rate for Aug. 1 but was able to reduce that to 15%, including for its crucial auto exports, in a deal the US president said would include the creation of a $550 billion fund to make investments in the US. South Korea is also seeking a deal, with negotiators discussing with the creation of their own fund to invest in US projects in exchange for a lower tariff rate, including on auto exports. Lutnick said that South Korean negotiators 'flew to Scotland,' where Trump is on a trip, to meet with the Commerce secretary and US Trade Representative Jamieson Greer. 'I mean, think about how much they really, really want to get a deal done,' Lutnick said. Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off Elon Musk's Empire Is Creaking Under the Strain of Elon Musk ©2025 Bloomberg L.P. 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
