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August 31 – According to the Associated Press, U.S. Treasury Secretary Scott Bessant said on Sunday that the Trump administration plans to impose sanctions on another bank this week to crack down on transactions related to Iran. Bessant will meet separately with finance officials from major and developing economies during the G20 summit to push for economic isolation of Iran. Bessant said, “If necessary, we will resort to financial violence. We are letting people know that we know who you are, and you know who you are, and this must stop.”UDI Robotics announced on the Hong Kong Stock Exchange that it plans to issue 45 million H shares for its Hong Kong listing, with an issue price between HK$14.45 and HK$19.55 per share, and trading is expected to begin on September 9.Conflict Updates: 1. Yemeni armed forces intercepted Iranian cargo destined for the Houthi rebels in the Red Sea. 2. UK Maritime Security Information Agency: An oil tanker was attacked in the Strait of Hormuz. 3. US officials stated they observed the Iranian Revolutionary Guard preparing to launch mines into the Strait of Hormuz. 4. US officials: US forces attacked southern Iranian islands to prevent them from laying mines. 5. Iranian Revolutionary Guard: The attack on Larak Island resulted in multiple injuries; the aggressors will be punished. 6. Explosions were heard in Jordan; the Iranian Revolutionary Guard claimed to have launched missiles at US bases. Other Events: 1. A senior Syrian official visited Libya for the first time in 14 years; the Syrian embassy resumed operations. 2. The Iranian Navy Commander refuted Trumps claims, stating that the Iranian Navy remains combat-ready. 3. Greece is reportedly planning to sign a $3.4 billion air defense agreement with Israel. 4. Irans Supreme Leader: The way to resolve regional issues lies in unity. 5. According to IRNA: The Iranian President will visit Kyrgyzstan on Monday. 6. US media: Senior US military officials advised Hegerseth that a large-scale operation against Iraq is unsustainable. 7. Pakistani Foreign Ministry: The first meeting of the Mecca Agreement Strategic Political and Defense Committee will be held in Istanbul on August 31.On August 31, Russian Presidential Press Secretary Dmitry Peskov stated on the 30th that Russia remains open to holding peace talks with Ukraine in Turkey, but the conditions for resuming talks are not yet in place. According to TASS, Peskov said that Russia remains open to Russia-Ukraine peace talks, "but unfortunately, we cannot say that the preconditions (for continuing negotiations) are met at present, because these conditions simply do not exist." Peskov also emphasized that if the presidents of Russia, the United States, and Ukraine hold a trilateral meeting, its purpose will only be to finalize an agreement, which will not be a "simple deal" but will inevitably go through a very complex process involving numerous details.Brent crude oil has returned to the $90/barrel mark, rising 2.3% on the day.

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.