Target beat Q2 expectations but markets were rattled by the announced departure of long-time CEO Brian Cornell, sending shares down over 10% in pre-market trading. Adjusted EPS was $2.05 versus a $2.02 consensus and revenue came in at $25.2bn versus $24.9bn expected. Despite the beat, same-store sales fell 1.9% year-on-year and overall revenue declined 0.9%. Stores saw sales drop more than 3% while online grew 4.3%; non-retail revenue rose 14.2%, helped by the Roundel ad business, membership programs and third‑party marketplaces.
The company reaffirmed its fiscal 2025 outlook, forecasting a low single-digit revenue decline and adjusted EPS of $7–$9, which the report notes is above the $7.30 Wall Street expectation. Cornell will step down effective 1 February 2026 and COO Michael Fiddelke, a 20‑year company veteran, will take over. Fiddelke is already leading a newly formed Enterprise Acceleration Office to speed innovation and improve operational efficiency.
Target remains under pressure: shares are down more than 22% year‑to‑date while the S&P 500 is up 9%. Investor concerns include weak store traffic, rising costs and potential tariff-driven price increases of up to 8%. The company has also faced political backlash over DEI initiatives and Pride product collections, including a 2024 boycott that produced a one‑day 22% share decline; Target said in 2025 it would scale back some DEI programs, but those issues continue to affect sentiment. #Target #Retail #Roundel #DEI #FiatNews
Novo Nordisk is shifting strategy under new CEO Maziar Mike Doustdar, instituting a global hiring freeze for non‑key roles and warning of possible further job cuts as it seeks to restore competitiveness after losing U.S. leadership in obesity drugs to Eli Lilly. The company, which employs over 78,000 people, has said the pause is part of broader cost‑cutting and efficiency measures; most current openings are in the U.S. and China, with only eight listed in Denmark. #NovoNordisk #NVO
Shares rose on Monday after the U.S. FDA approved Wegovy for treatment of metabolically associated steatohepatitis, a severe form of fatty‑liver disease that can lead to cirrhosis or cancer. Analysts note the market for this indication is smaller than obesity or diabetes but could help stabilize the company amid intensifying competition from Eli Lilly and others. "This is quite a promising sign," analyst Branislav Soták said, adding it is "not a fundamental turnaround yet, but a signal the company could protect part of its market." He also said he had viewed an entry price around $60 per share as attractive and that the stock was trading near $52, calling it still a speculative investment. #Wegovy #NASH #LLY
Novo Nordisk also signaled efforts to strengthen international ties: chairman Helge Lund met Chinese Vice President Han Zheng, who urged deeper cooperation between global pharmaceutical firms and China as the country continues market opening and reforms. #FiatNews
Estée Lauder shares tumbled after the company issued a weak fiscal‑year profit outlook and flagged tariff costs as a material drag on earnings. The owner of M·A·C and Clinique forecasts adjusted EPS of $1.90–$2.10 for the year ending June 2026, below Bloomberg analyst estimates, and says rising U.S. tariffs will shave roughly $100m off profitability. Shares fell as much as 14% in pre‑market trading; they were still up about 20% year‑to‑date, outpacing the S&P 500.
CEO Stéphane de La Faverie is cutting costs through layoffs and outsourcing while shifting distribution toward e‑commerce channels such as Amazon and TikTok, a strategic move away from heavy reliance on department stores. Long‑term performance hinges on a sales recovery in China—where demand has slowed—and on regaining U.S. market share amid competition from newcomers and rival brands including L’Oréal.
Estée Lauder now expects organic annual net‑sales growth of 0–3%, versus a 1.9% consensus in a Bloomberg survey; that would follow an 8% revenue decline in the just‑ended fiscal year. Source: Bloomberg. #EL #EstéeLauder #China #FiatNews
Bond markets are bracing for Friday’s Jackson Hole speech by Fed Chair Jerome Powell, which could confirm market bets on imminent rate cuts. Traders currently price a 25bp cut in September and at least one more before year-end; two-year Treasury yields have fallen to about 3.75%, steepening the curve after weak July payrolls. Powell is expected to stress that the Sept. 17 decision will depend on incoming labor and inflation data.
Some investors are positioning for a larger move: sizeable option trades imply bets on a 50bp cut next month, though recent strength in producer prices makes such a step less likely. Key data to watch include U.S. jobs on Sept. 5. Political pressure from the administration — including calls to lower borrowing costs and scrutiny of economic statistics — adds to the backdrop.
Market participants caution restraint. "Powell has the opportunity to say something that moves the market, but I'm not sure he will," says Kelsey Berro of JPMorgan Asset Management. "The Fed is under enormous pressure," adds Scott DiMaggio of AllianceBernstein. "It will depend on labor market data," says Gregory Faranello of AmeriVet Securities. "Aggressive rate cuts would mean the Fed ignores remaining higher inflation risks," warns Ed Al-Hussainy of Columbia Threadneedle. #Fed #JacksonHole #Rates #FiatNews
Chinese collectible toy maker Pop Mart reported record first-half results, with revenue surging 440% to ¥5.6 billion and net profit rising nearly 400%. Shares climbed over 5% at the Hong Kong open and have gained more than 245% year-to-date to HK$310.6, trading at their highest level since the company’s December 2020 listing and surpassing industry names like Mattel by market value. #PopMart #Labubu #Mattel
CEO Wang Ning said the company is “comfortably on track” to reach this year’s revenue target of ¥20 billion and that hitting “¥30 billion… should be quite easy.” The jump was driven by strong global demand for the Labubu character and higher-margin overseas sales; the “The Monsters” series generated ¥4.81 billion (34.7% of total revenue), while four other series contributed over ¥1 billion combined.
Pop Mart plans to expand its international footprint from about 140 stores to more than 200 by year-end, adding roughly 10 stores in the U.S. to bring the U.S. total to about 50. Management is exploring new markets in the Middle East, Central Europe and Latin America and says it aims to build an entertainment franchise, though material financial benefits from films or parks are not expected in the near term.
Analysts offered mixed views: Lotus Asset Management’s Hao Hong suggested short-covering may have amplified the rally and expects new highs in coming weeks, while Citi analysts pointed to strong IP management and overseas expansion as growth drivers. Morningstar’s Jeff Zhang warned of uncertainty over the long-term popularity of characters like Labubu and said shares appear overvalued. In June, Chinese state media urged tighter oversight of blind-box products for children under eight, proposing age verification and parental consent measures. #FiatNews
Karel HavlĂÄŤek of the opposition ANO movement said the Czech Republic should abandon what he called excessive fiscal discipline and instead invest to spur economic growth, confirming that an ANO government would roll back the current administration’s austerity measures. HavlĂÄŤek said reducing debt is desirable but must follow a restart of the economy. "We are obsessed with stories about rising public debt," he said. "I would like to reduce the debt gradually, but that is possible only if we first restart the economy." #CzechRepublic #ANO #HavlĂÄŤek #economy
HavlĂÄŤek said ANO would fund infrastructure and social-service investments that could modestly increase the deficit but raise long-term revenue by supporting business activity. He indicated room to lift the deficit from the current 2.2% of GDP to about 3%—the Maastricht threshold. By contrast, the Fiala government halved the deficit over four years through cuts and higher taxes; the pandemic pushed the deficit to a record 5.8% of GDP. Ratings agency Fitch has said it expects a prospective ANO government would maintain reasonable fiscal policies.
The proposal pits growth-focused spending against calls for budget balance from Czech National Bank governor Aleš Michl. "As a nation we unnecessarily punish ourselves over the budget, even though our financial situation is not bad," HavlĂÄŤek added. Sources: Bloomberg, STEM. #FiatNews
Eurostat reported that annual consumer inflation across the European Union quickened to 2.4% in July, up from 2.3% in June. The EU-wide month-on-month change was +0.1%, while the eurozone’s inflation rate was confirmed at 2.0% year-on-year for July, unchanged from June and matching the agency’s earlier flash estimate.
Eurostat’s harmonized measure shows inflation in the Czech Republic eased to 2.5% year-on-year in July from 2.8% in June. National statistics differ: the Czech Statistical Office (ČSÚ) earlier reported a 2.7% annual rise for July (down from 2.9% in June), reflecting methodological differences between Eurostat and ČSÚ.
By country, the lowest annual inflation rates in July were recorded in Cyprus (0.1%) and France (0.9%), with Ireland at 1.6%. The highest annual increases were in Romania (6.6%), Estonia (5.6%) and Slovakia (4.6%). For context, July 2024 headline inflation stood at 2.8% in the EU and 2.6% in the euro area. #inflation #EU #Eurozone #CzechRepublic #FiatNews
UK inflation rose to 3.8% in July, the highest rate in a year and a half, driven mainly by food and transport, the national statistics office said. The reading was up from 3.6% in June and slightly above economists' forecasts of 3.7%. #UK #inflation #BoE
Services inflation accelerated to 5.0% from 4.7% in June, exceeding the Bank of England’s 4.9% estimate — a metric the central bank monitors closely. For comparison, US inflation held at 2.7% in July and the eurozone’s flash rate was 2.0%.
The figures increase pressure on the Bank of England’s policy stance. The BoE cut its base rate by 0.25 percentage points earlier this month to 4.00%, a decision that passed narrowly after four of nine Monetary Policy Committee members voted to keep rates unchanged. "The economy is going through a period of high inflation and weak growth, which is likely to last until next spring," said Ian Stewart, chief economist at Deloitte. #FiatNews
Intel shares have jumped nearly 30% over the past month after reports of a possible U.S. government stake and a $2 billion investment from SoftBank, pushing the chipmaker’s valuation back to dot‑com bubble levels. The stock now trades at about 53 times expected earnings for the next 12 months, the highest reading since early 2002, according to Bloomberg data.
"The shares look incredibly expensive. This kind of multiple is a bet that the government will pressure Intel’s customers so hard that it becomes the winner," said Wayne Kaufman, chief market analyst at Phoenix Financial Services. Reports say President Donald Trump’s administration has discussed acquiring up to a 10% stake, which could make the U.S. the company’s largest shareholder. Commerce Secretary Howard Lutnick indicated any government stakes would likely be non‑voting, and Lutnick has suggested the idea could extend to other chipmakers tied to CHIPS Act grants.
Bloomberg expects Intel to generate adjusted profit exceeding $1 billion over the next four quarters after a roughly $1.3 billion loss in the prior four. From 2018–2021 the company averaged more than $20 billion in annual profit. Analysts remain cautious: under 8% of analysts tracked by Bloomberg rate the stock a buy and nearly 80% are neutral. "We have no idea what Intel can achieve in earnings growth, because it lags in technology, and growth doesn’t come from cutting costs," said Nancy Tengler of Laffer Tengler Investments. Paul Nolte of Murphy & Sylvest Wealth Management added that a government stake could help short‑term but pose long‑term risks. CEO Lip‑Bu Tan’s cost‑cutting has improved the path back to profitability but has also raised concerns about a retreat from technological leadership. Sources: Bloomberg, CNBC. #INTC #FiatNews
Chinese tech group Xiaomi plans to sell its first electric vehicles in Europe by 2027 and aims to compete globally with Tesla and BYD. Xiaomi’s market value has risen by roughly $120bn over the past year amid growing interest in its EV ambitions; the move follows a softer EU stance on major Chinese investment relative to U.S. tariffs. #Xiaomi #Tesla #BYD #EVs #FiatNews