Trade Wars
Consumers to Spend Record Amount on Holidays
Consumers seem to be in a spending mood. According to the National Retail Federation’s annual consumer survey consumers plan to spend $890.49 per person on average this year on holiday gifts, food, decorations and other seasonal items. The amount is the second-highest in the survey’s 23-year history and falls only 1.3% less than last year’s record of $901.99. “Time and again, Americans prioritize spending on loved ones for holidays despite economic uncertainty,” NRF Vice President of Industry and Consumer Insights Katherine Cullen said in a statement.
Out of the total, $627.93 will go to gifts for family and friends. The remaining $262.56 will be used on seasonal items like food or candy, decorations and greeting cards. As with other years, consumers plan to shop across numerous destinations this holiday season. Online continues to be the top holiday shopping destination, with 55% planning to make purchases digitally. That is followed by grocery stores (46%), department stores (44%) and discount stores (42%). According to the survey, the top gifts consumers would like to receive include gift cards (50%), clothing or accessories (46%), books and other media (27%), personal care or beauty items (23%) and electronics (22%).
Read more at Material Handling & Logistics
GM Shares Surge on Raised Guidance
General Motors raised its 2025 financial guidance Tuesday after beating Wall Street’s top- and bottom-line earnings expectations for the third quarter, while lowering its expected impact from tariffs. GM’s third-quarter revenue of $48.59 billion was down less than 1% from $48.76 billion in the same period last year. Earnings per share were $2.80 adjusted vs. $2.31 expected and adjusted EBIT was $3.38 billion vs. $2.72 billion expected.
GM’s new outlook signals strength for the automaker heading into the fourth quarter and beats Wall Street analysts’ current expectations for the last three months of the year. The updated guidance includes adjusted earnings before interest and taxes of between $12 billion and $13 billion, or $9.75 to $10.50 adjusted EPS, up from $10 billion to $12.5 billion, or $8.25 to $10 adjusted EPS, and adjusted automotive free cash flow of $10 billion to $11 billion, up from $7.5 billion to $10 billion.
Read more at CNBC
Coca-Cola Tops Earnings And Revenue Estimates But Says Demand For Drinks Is Still Soft
Coca-Cola reported quarterly earnings and revenue that topped expectations, but the beverage giant said that demand for its drinks is still soft. Earnings per share were 82 cents adjusted vs. 78 cents expected and revenue was $12.41 billion adjusted vs. $12.39 billion expected Coke reported third-quarter net income attributable to shareholders of $3.7 billion, or 86 cents per share, up from $2.85 billion, or 66 cents per share, a year earlier. Net sales rose 5% to $12.46 billion. Coke’s organic revenue, which strips out acquisitions, divestitures and foreign currency, increased 6%.
Worldwide, Coke saw the largest volume growth from its water, sports, coffee and tea segment. Its bottled water and sports drinks both saw volume increase 3%, while coffee and tea reported volume growth of 2%. The company’s sparkling soft drinks volume was flat for the quarter, while its juice, value-added dairy and plant-based beverage segment reported that volume shrank 3%. The company reiterated its full-year forecast. Coke is expecting comparable earnings per share to rise 3% and organic revenue to increase 5% to 6%. Looking ahead to 2026, Coke is projecting a slight tailwind to both its revenue and comparable earnings from currency fluctuations.
Read more at CNBC
Nestlé Cutting 4K Jobs In Supply Chain, Manufacturing
Nestlé said Thursday it will cut 16,000 jobs during the next two years as the packaged food giant reduces costs to accelerate a turnaround of its business. The reduction represents about 6% of the company’s 277,000 global workforce. The job cuts will include 12,000 corporate workers across functions and geographies. Another 4,000 people will come from staffing reductions in manufacturing and supply chain.
The Nespresso and Hot Pockets maker also increased its cost savings target, aiming to trim 3 billion Swiss francs, or $3.8 billion, in expenses by the end of 2027 from the company’s previous goal of $3.14 billion. The moves by Nestlé indicate newly appointed CEO Philipp Navratil plans to continue efforts started by his predecessor to rightsize the sprawling food and beverage company that has been embroiled by executive turmoil and challenges to its business in recent years.
Read more at Supply Chain Dive
Cleveland-Cliffs Executives See ‘Significant Rebound’ in Steel Demand
Leaders of steel manufacturer Cleveland-Cliffs Inc. said Oct. 20 they are seeing “a significant rebound in domestic steel demand” now that tariffs have been in place for several months. And they say the automotive industry is in the lead and likely to bring with the construction and broader manufacturing sectors. Chairman, President and CEO Lourenco Goncalves and CFO Celso Goncalves said the tariffs and other trade measures put in place this year by the Trump administration have started to change user behavior.
That, Lourenco Goncalves said on a conference call with analysts, is showing up most conspicuously among automotive original equipment manufacturers, a hatful of whom have recently signed multi-year agreements for Cliffs steel that “will generate a lot more margin, including margin per ton.” In addition, Celso Goncalves pointed out that other parts of the steel market also are showing signs of better demand. “We have finally started to see a bit of restocking activity in the distributor and end-user markets, an indication that the new tariff reality for those buyers is setting in,” he said. “The signs of a real recovery are forming.”
Read more at IndustryWeek
Amazon's Massive AWS Outage Points To A Key Weakness In The Modern Internet
Amazon's AWS is back online after a day-long outage that impacted companies and organizations across the country and globe, knocking out websites and apps for millions. According to Amazon, the outage originated at the company's Virginia data center, called US-East-1, and had to do with a domain name system issue and Amazon's DynamoDB database service. Think of the domain name system as a kind of phone book for the internet that takes the URLs that we type into our browsers' address bars — www.yahoofinance.com, for instance — and translates them into the numerical IP addresses that computers recognize. Amazon's DynamoDB, meanwhile, is a database that allows customers to store and access data.
This isn't the first time we've seen global internet outages as a result of one of the three main cloud players, which also include Microsoft and Google, going offline. AWS had an issue in 2023 that knocked websites offline, and CrowdStrike's faulty update took down large swaths of Microsoft's cloud services in 2024. And while major enterprises and government offices often rely on more than one cloud provider to avoid going offline, smaller companies and organizations may not have the kind of cash necessary to subscribe to multiple cloud services.
Read more at Yahoo Finance
Viasat Expands Into Defense Satellite Market Through Space Force Program
Viasat has expanded beyond commercial broadband services to develop customized satellites for defense applications, leveraging its commercial satellite portfolio to meet the Pentagon’s growing demand for secure, resilient communications in orbit, SpaceNews reported Thursday. The company is developing a dual-band X/Ka-band geostationary satellite for the U.S. Space Force’s Protected Tactical Satcom-Global, or PTS-G, program, which seeks smaller, jam-resistant satellites based on commercial technologies. The satellite’s design is built on the Viasat-3 high-throughput broadband satellite, built for geostationary Ka-band communications.
Viasat’s entry into the defense satellite sector follows its 2023 Inmarsat acquisition, which broadened its space portfolio and refocused its priorities on mobility and government markets. The company plans to explore opportunities on the Maneuverable Geosynchronous Orbit Commercial Satellite-Based Services, or MGEO, program and the Golden Dome missile defense initiative.
Read more at Executive Biz
Self-Driving Trucks Transport Goods On Texas Freeways In Expansion Push
Aurora driverless trucks have begun transporting goods on the nation's freeways. That means more efficiency, but also job losses for truck drivers. Chris Urmson knows his big idea to revolutionize the trucking industry can cause uneasiness at first. "It's really rational for people to have doubts; this is something new. It's interesting, challenging," said Urmson, CEO of Aurora Innovation, a company developing self-driving technology for big rig trucks.
Aurora trucks without a safety driver on board are already on the road in Texas, hauling loads for FedEx on the busy Interstate 45 corridor between Dallas and Houston. The Aurora Driver uses a combination of cameras, radar and LiDAR to see around it, similar to other autonomous vehicles like Waymo robotaxis currently deployed in San Francisco and other cities in California. Aurora developed a special kind of light-sensing LiDAR, First Light, that it placed around the trucks so the autonomous driver can see much farther down the road. Urmson calls it the company's secret sauce.
Read more at ABC7 California
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