Author: Jack Mulligan
The much-anticipated merger between Capri Holdings and Tapestry Inc., which aimed to create a powerhouse of luxury fashion brands, has officially been called off. This decision comes after the Federal Trade Commission (FTC) successfully blocked the deal in court, leading both companies to mutually agree on termination due to regulatory hurdles. Regulatory Hurdles and Termination Capri and Tapestry announced Thursday that they have mutually agreed to end their $8.5 billion merger. The companies cited the improbability of securing regulatory approval before the deal’s expiration in February. The move comes after the FTC’s successful lawsuit to block the merger, which claimed…
After months of resistance, Seven & i Holdings has started preliminary talks with Canadian convenience store giant Alimentation Couche-Tard regarding a $47 billion takeover bid. This development arrives as a fresh, competing offer emerges from the founding Ito family, adding complexity to what could become Japan’s largest-ever corporate acquisition. Three individuals familiar with the situation revealed that “preliminary and limited” discussions between the advisors of Seven & i and Couche-Tard have commenced. Couche-Tard’s interest in acquiring the world’s largest convenience store chain, 7-Eleven, dates back over 20 years, with its formal approach becoming public in August. If successful, the acquisition…
Argentine President Javier Milei’s first year tackling inflation has been mixed, with the annual rate still exceeding 200%. However, investor sentiment indicates optimism for substantial improvement in the coming year. Market data suggests a potentially sharp reduction in inflation, with monthly rates predicted to dip to 1.9% and annual figures possibly falling to 25%, as reported by local brokerage PPI. This projection would be markedly below economists’ consensus of 35% and the lowest annual rate Argentina has seen in seven years. Current Inflation Landscape Argentina has been grappling with triple-digit annual inflation for nearly two years. While the peak annualized…
President-elect Donald Trump has revived his campaign persona as the self-proclaimed “Tariff Man” with a proposal to impose significant new tariffs on U.S. imports. Trump suggested sweeping levies of 10% to 20% on all imported goods, with a more aggressive 60% tariff on imports from China. His plan also includes a 200% tariff on vehicles from Mexico and a similar rate on Deere & Co. if the company moves production south of the border. These bold tariff strategies are part of Trump’s protectionist approach to bolster domestic manufacturing and reduce dependence on foreign production. Legal Hurdles and Congressional Approval Despite…
China is stepping up efforts to support its economy as it braces for potential economic headwinds from President-elect Donald Trump’s return to office. The key concern: Trump’s proposed tariffs of up to 60% on Chinese-made goods that could exacerbate the country’s existing economic troubles. New Measures to Combat Local Government Debt The Standing Committee of the National People’s Congress (NPC) unveiled a fiscal package that includes a substantial 6 trillion yuan ($840bn) fund to alleviate local government debt. This initiative, set to run through 2026, aims to curb debt levels that have accumulated from decades of infrastructure-driven growth, now strained…
President-elect Donald Trump has consistently highlighted tariffs as a cornerstone of his economic policy, proposing a 10% to 20% blanket tariff on all imports and even higher rates of 60% to 100% on goods from China. Trump’s vision is to leverage these tariffs as a source of revenue and as a tool for rebalancing economic relations with other nations. “We’ve given to the world for 75 years; now it’s time they pay us back,” Trump stated during a September debate. At their core, tariffs are taxes on imported goods, but they are not directly paid by the exporting country. Instead,…
Tesla’s stock soared by more than 14% on Wednesday, buoyed by investor enthusiasm following Donald Trump’s return to the White House. With Trump’s plans that could reduce EV subsidies and impose tariffs on Chinese imports, Tesla and its CEO Elon Musk appear poised to gain a strategic advantage over smaller EV competitors. Market Impact and Industry Shift While Tesla surged, shares of other electric vehicle makers saw significant declines. Nio, based in Shanghai, dropped 5%, while U.S.-based Rivian and Lucid Group fell by 9% and 8%, respectively. According to Wedbush analyst Dan Ives, Tesla’s unmatched scale could provide it with…
China’s services sector experienced its fastest growth in three months during October, according to a new private-sector survey. Early indications suggest that Beijing’s recent stimulus measures are beginning to improve business conditions, providing a much-needed boost to the economy. The Caixin/S&P Global services purchasing managers’ index (PMI) rose to 52.0 in October, up from 50.3 in September. A reading above 50 indicates expansion, and the latest figure signals renewed momentum for the sector after months of sluggish growth. Stimulus Measures and Economic Growth The uptick in services activity aligns with the official PMI data released last week, which showed non-manufacturing…
The latest report from the International Monetary Fund (IMF) paints a grim picture of Iran’s economy, predicting that the country’s economic turmoil will continue to worsen. The IMF’s data indicates that Iran faces severe fiscal challenges, with escalating debt, runaway inflation, and shrinking economic growth. These challenges are compounded by ongoing U.S. sanctions and the government’s growing reliance on borrowing to fill budget shortfalls. Iran’s Fiscal Crisis Hinges on Global Oil Prices Iran’s budget woes are heavily tied to global oil prices. The IMF estimates that to avoid a budget deficit in 2024, Iran would need oil prices to soar…
The flood disaster in Spain worsened this week, as the death toll rose to at least 205 in what has now become the deadliest flood event in the nation’s modern history. Valencia remains under an amber weather alert, with residents and officials preparing for more potential rainfall in already devastated regions. Since Wednesday, emergency responders have been scrambling to reach isolated communities, as thousands remain stranded without basic necessities like food, water, and electricity. Ongoing Flood Warnings and Escalated Emergency Response Spain’s weather agency, Aemet, announced Friday that the storm is far from over. “The meteorological emergency is not over.…