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On June 16, CICC pointed out that in the first half of 2025, although policy uncertainty has increased significantly, the global economy as a whole is running smoothly, and other major central banks except the Federal Reserve continue to cut interest rates. In the second half of the year, the economic momentum of the United States and non-US regions will converge, mainly driven by the slowdown in the US economy. Non-US regions have certain advantages due to relatively loose monetary policies and room for repair of output gaps, but the extent of repair in the second half of the year is constrained by high policy uncertainty and the front-end of exports and growth in the first half of the year. Against this background, we are more optimistic about opportunities in non-US regions in the second half of the year, remain relatively optimistic about the European market, and increase the weight of emerging markets. However, we believe that the differentiation of regional performance may be smaller than in the first half of the year, and we recommend a balanced allocation.Market News: The Swiss Embassy, which represents US interests in Tehran, has been closed until further notice.According to Iranian media Rouydad24: In the early hours of Monday local time, the air defense system near the Pasteur Center area was activated. This area is the official residence of Irans supreme leader and president.On June 16, WuXi Biologics announced on the Hong Kong Stock Exchange that on June 14, the companys board of directors was informed by one of the companys major shareholders that it had entered into a block transaction agreement with Morgan Stanley International plc, pursuant to which the placing agent has agreed to place 82,940,000 existing shares of the company held by Biologics Holdings (equivalent to approximately 2.04% of the total issued share capital of the company as of the date of this announcement) at a price of HK$26.60 per share to parties independent of and not connected with the company. Note: WuXi Biologics (02269.HK)s latest closing price is HK$28.On June 16, the article stated that protecting the rights of car owners is a must-answer question for the development of the automobile industry. Looking forward to the future of new energy vehicles, technological progress and consumer rights protection will surely move forward in tandem. All parties work together to build a comprehensive and multi-level rights protection network, so that consumers can buy and use cars with peace of mind, which will surely continue to inject confidence and motivation into the high-quality development of the new energy vehicle industry.

Costco Margins Are Impacted by Growing Freight And Labor Expenses, And The Stock Price Falls

Charlie Brooks

May 27, 2022 09:50

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Costco Wholesale Corp (NASDAQ:COST) announced a decline in gross margins on Thursday, impacted by rising freight and labor expenses across the United States. The news sent shares of the membership-only retailer down 2% and overshadowed an otherwise positive quarterly report.


Fresh COVID-19 lockdowns in China and the Russia-Ukraine conflict have compounded the problem for U.S. businesses.


Costco announced that it would increase prices in certain food categories in order to battle inflation.


Retailers such as Walmart (NYSE:WMT) Inc and Target Corp (NYSE:TGT) have warned that decades-high inflation will have a negative impact on their earnings, as shoppers hesitate from purchasing non-essential and high-margin goods.


The average Costco buyer earns more than the average Walmart and Target shopper, allowing Costco to generate quarterly earnings and revenue that easily exceeds expectations.


Memberships and sales have been boosted by the company's efforts to keep gas prices several cents below the national average.


Costco, in contrast to Walmart, reported that there has not been a significant shift from branded products to its private label product, Kirkland Signature.


"We aren't really observing a decline in commerce. This year, more money is being spent on tickets, dining out, travel, tires, and gasoline "In a post-earnings conference call, Robert Nelson, senior vice president of finance and investor relations, said.


Costco's gross margins decreased by 99 basis points in the third quarter.


According to data from Refinitiv IBES, Costco's total sales for the quarter ending May 8 increased by 16 percent to $52.60 billion, surpassing analysts' projections of $51.71 billion.


Excluding adjustments, Costco's earnings per share were $3.17, exceeding analysts' expectations of $3.03.