Before the Bell: Trump Mania

New tariffs, renewed uncertainty.

Tariffs are back—or perhaps they never really left. Donald Trump announced a 100% tariff on branded medicines imported into the U.S. Generic drugs and products from pharmaceutical companies with existing or planned production facilities in America will be exempt. New tariffs are also coming: 25% on trucks and 30% on kitchen and bathroom furniture and fittings. They take effect on October 1. Yesterday, Philips (-3%) and Siemens Healthineers (-3.5%) already lost ground on concerns over tariffs in the medical technology sector. In Brussels, the Bel20 slipped 0.8%, though Umicore (+5.1%) went against the trend. The Euro Stoxx 50 fell 0.4%. Just days after joining the Dutch AEX, WDP had its credit rating lifted by Moody’s from Baa1 to A3. Sofina rose 1.5% on the first day of its capital increase. In the U.S., the S&P 500 and the Nasdaq both lost 0.5%. CarMax (-20%) and Accenture (-2.7%) disappointed with their earnings, while Intel (+8.9%) climbed on speculation of an Apple (+1.8%) investment, and IBM (+5.2%) gained on strong quantum computing results.

This morning in Asia, shares are down about half a percent in both Tokyo and Hong Kong. In Belgium, Warehouses Estates Belgium will release results. In the U.S., the Fed will publish August inflation data along with the University of Michigan’s consumer sentiment index.

Starbucks loses its shine

Starbucks has been struggling with declining sales in its stores for a year and a half. The world’s largest coffee chain now plans to act by closing locations with weaker turnover. By the end of this month, more than 400 U.S. stores will be shut, including its flagship in Seattle and one in its own headquarters. At the same time, 900 office jobs will be cut, after another 1,100 earlier this year. Severance costs will exceed 1 billion dollars. Since February, Starbucks shares have lost more than 25% of their market value. Investors will hope the coffee cup soon looks half full again.

Capital questions

It is not unusual for listed companies to raise capital. If you hold the shares, you generally want to take part. That is also the case with Sofina. What we didn’t expect, however, was the sheer number of questions from our members—mostly practical ones—about the ongoing capital increase. Sofina is clearly a very popular stock among our community. Tomorrow, Pascal and Jim will dedicate a chapter of the Spamalot webinar to this transaction. They will share a few practical tips and answer the most frequently asked questions. Don’t miss it: these insights are useful not only now, but for future capital raises as well. Meanwhile, we’ll continue answering your questions—about this and other topics—on our forum.

Did you know…

that it was 111 years ago today that U.S. President Woodrow Wilson established the Federal Trade Commission (FTC), with the goal of regulating companies, preventing unfair competition, and protecting consumers?

This article was translated from Dutch and was originally published on Spaarvarkens.be.