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Asia
The Hindu BusinessLine

Consumer appliances makers gear up for festival season with increased production

Consumer appliance makers are gearing up for the festival season with ramped up production, expanded product portfolios and a strong focus on the premium segment. Players said they are expecting to witness strong consumption momentum in the second half of the year while retailers have begun early channel stocking. The key demand season kickstarts from Onam in Kerala and lasts till Diwali, which is in November this year. This period contributes significantly to annual sales of the consumer durables and electronics sector. Earlier this year, issues arising out of the West Asia conflict led to production and supply chain-related challenges for the industry. This included commercial LPG shortage and labour shortages, which have normalised now. Players have also had to take price hikes to mitigate the impact of higher raw material costs and rupee depreciation especially in air-conditioners. Sanjay Chitkara, Director and Co-Chief Sales and Marketing Officer, LG Electronics India said, “We operate on a three-month production planning cycle and we have already done festival preparation and ordering. We are also encouraging our retail partners for pre-festival buying and are seeing early channel stocking. During the festival season, washing machines, refrigerators, large-sized TVs, among others dominate the sales. We are well-positioned to capture festive season demand with an expanded large-screen and premium portfolio which includes new launches across QNED and OLED line-ups and French-Door refrigerators.” Retailers too are betting big on growing demand for premium products. Premchand Devarakonda, CFO, Electronics Mart India Ltd said, “Categories such as televisions, air-conditioners, refrigerators, smartphones and washing machines are likely to see steady demand, with AI-enabled features, smart connectivity and energy-efficient solutions emerging as important purchase considerations. We expect the upcoming festive season to bring healthy momentum to the consumer durables market, with EMIL expecting double-digit growth during the festive period.” Kamal Nandi, Business Head and EVP at Appliances Business of Godrej Enterprises Group said, “From July onwards some of the supply chain and production-related issues arising out of the West Asia crisis, have eased out and we have increased our production across our plants. Full preparations are underway as we expect the festival season to perform well. The festival demand is generally driven by the premium segment, which is expected to be strong.” Players said while inflationary pressures remain a key monitorable, it is not expected to have an impact on the premium segment. Pankaj Rana, CEO, Hisense India said, “With our Sri City facility now operational and our portfolio expanding beyond televisions into categories such as air conditioners and washing machines, we are entering the festive season with a broader portfolio, stronger retail presence and greater supply readiness. We are optimistic about the season and expect strong double-digit growth.” Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments. We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

Consumer appliances makers gear up for festival season with increased production
North America
CNBC Finance

Chipotle stock falls on potential link to salmonella outbreak in Minnesota

Chipotle Mexican Grill said Tuesday it temporarily pulled jalapenos from restaurants in Minnesota after learning that their supply may have been linked to a salmonella outbreak. "We have a robust ingredient traceability system and, upon learning of a potential Salmonella outbreak in the supply chain impacting several food service retailers, we proactively identified jalapeños as a potential common ingredient from a common lot, removed them from the restaurants where they had been distributed, and replaced them with product from different growers," Chipotle spokesperson Laurie Schalow said in a statement to CNBC. The stock reaction indicates investors see the news as a callback to Chipotle's past as the poster child for food safety issues. The burrito chain was implicated in at least five separate foodborne illness outbreaks between 2015 and 2018. Chipotle added more training for employees, sick days and an enhanced food safety program to put those troubles in the past, and it is now seen as an industry leader on the issue. Foodborne illness has also been top of mind for many consumers lately. The ongoing cyclospora outbreak has led to more than 6,700 cases confirmed by the Centers for Disease Control and Prevention. Michigan public health authorities on Monday also confirmed the first two deaths linked to the outbreak. Though Chipotle does not serve any ingredients linked to the cyclospora outbreak, the company said concerns about the foodborne illness affected its sales in the second half of July. Get this delivered to your inbox, and more info about our products and services. Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

Chipotle stock falls on potential link to salmonella outbreak in Minnesota
North America
CNBC Finance

How Disney parks are bucking a travel slowdown

Disney parks are defying a slump in international travel to the U.S., posting record quarterly revenue for the company's experiences division on Wednesday. The experiences segment, which includes Disney's theme parks, cruise line, resorts and consumer products, reported nearly $10 billion in revenue for the fiscal third quarter, a 10% jump from the same quarter a year prior and a quarterly record. The division has seen record revenue for six consecutive quarters. The division recorded operating income of more than $3 billion, up 20% from the same period a year prior. Shares of Disney gained more than 3% Wednesday. "It's important, I think, to highlight that we're performing significantly better than our competition," Disney CEO Josh D'Amaro said during Wednesday's earnings call. "And in doing that, delivering strong volume and per [capita] spending results. And to remind everyone we're achieving this even during a period where there's a fair amount of macro uncertainty." Last month, rival Comcast reported lags in theme park attendance, particularly in Orlando, Florida. While tourism grew worldwide last year, the United States was the only major destination to see a drop in foreign visitors, according to the World Travel & Tourism Council. Overall, international travel to the U.S. fell 6%, the organization found. Travel bans, visa fees and invasive searches at ports of entry are all factors in international travelers leaving the United States off their travel itineraries, according to the WTTC. Trade frictions, geopolitical unease and safety concerns have also contributed to the drop in demand for travel stateside, travel experts told CNBC. And yet, at Disney, domestic park attendance was up 3% and guest spending rose 4%, Chief Financial Officer Hugh Johnston told CNBC. He also called out the "very strong attendance" at Walt Disney World in Orlando. "Those numbers are somewhat different than what you would have seen from our competitor down there, as well as some of the reported traffic coming through Orlando [International] Airport," he added. The company attributed strong attendance to its Cool Kids Summer promotion, which features kid-focused character meet-and-greets, dance parties and air-conditioned hangout spots as well as free water park admission for hotel guests. Disney also recently refreshed and reimagined park attractions like Buzz Lightyear's Space Ranger Spin, Big Thunder Mountain Railroad and the Muppets-themed Rock 'n' Roller Coaster. "Disney activated their fans to visit the theme parks during the quarter using a mix of marketing and discounting campaigns targeting young families and residents," said Gavin Doyle, founder of MickeyVisit.com. "Despite a massive slate of upcoming rides that might have encouraged guests to delay their visits, Disney has found ways to create urgency and enticing opportunities to visit the theme parks now."

How Disney parks are bucking a travel slowdown
Europe
The Guardian

‘Mamma mia!’: Trump tariffs refund ignites 53% profit spike at Nintendo

Nintendo said sales of its Switch 2 console, which was released last summer, maintained strong momentum but overall sales dropped 10%. Photograph: Richard A Brooks/AFP/Getty ImagesView image in fullscreenNintendo said sales of its Switch 2 console, which was released last summer, maintained strong momentum but overall sales dropped 10%. Photograph: Richard A Brooks/AFP/Getty ImagesNintendo‘Mamma mia!’: Trump tariffs refund ignites 53% profit spike at NintendoProfit jump fuelled largely by unknown US refund amount as Japanese video game firm records quarterly sales drop Nintendo has reported a jump in profits, as the Japanese game maker’s earnings were buoyed up by a long-awaited refund on Donald Trump’s tariffs. The company said profits surged 53.5% to ¥147.4bn (£694m) over the three months to June, substantially beating expert forecasts for ¥77.8bn. Nintendo said sales of its Switch 2 console, which was released last summer, “maintained strong sales momentum”, while popular games such as Yoshi and the Mysterious Book, Star Fox, and Pokémon Pokopia “performed steadily”. However, that did not make up for an overall drop in sales compared with the same period last year, with revenue down by 10% to ¥517.8bn. Instead, Nintendo said profits were aided by a refund on US tariffs, after the country’s supreme court ruled in February that Donald Trump’s sweeping “liberation day” trade levies were illegal. The Trump administration has refunded about $100bn from the tariffs charged before the court ruling, representing 60% of the total $165bn collected. Trump has continued to pitch tariffs as a solution for the US economy, bringing back domestic production, securing better trade deals and closing the deficit in the federal budget. Nintendo’s Tokyo-listed shares were up 2.87% on Thursday after the earnings release. The company filed a lawsuit weeks after the US supreme court ruling, demanding a full refund from the White House that would cover what it spent on tariffs, plus interest. While a refund now appears to have come through, Nintendo stopped short of confirming the full amount, at a time when it is still appears to be resisting calls to pass those refunds on to consumers. Last month, Nintendo was hit with a class action lawsuit on behalf of customers, which claims the company hiked its prices because of tariffs but later benefited from the refunds. Nintendo’s lawyers described the lawsuit as “meritless”, and that the price customers paid represented “the purchase price of the goods they wanted and received.” Last month, Trump imposed a fresh round of tariffs on more than 80 countries, including Japan, in a move that is likely to pose further problems for companies such as Nintendo. However, a coalition of 25 US states are now suing the Trump administration over the levies, potentially opening the door to another round of refunds for beleaguered exporters.

‘Mamma mia!’: Trump tariffs refund ignites 53% profit spike at Nintendo
Asia
The Hindu BusinessLine

US or China: Washington to tell partners they must pick sides in AI race

AI ‌race between US, China at pivotal point as Chinese open-weight models gain against OpenAI, Anthropic. The US is preparing to tell dozens of countries they must pick sides in ⁠the artificial intelligence race with China, warning they will be excluded from a US-led AI coalition if they also sign up for Beijing’s competing framework, according to a US official and an internal draft reviewed by Reuters. Washington last year launched the Pax Silica initiative aimed at securing supply chains ‌for AI models, semiconductors and critical minerals, amid a fierce technology rivalry with Beijing. About two dozen countries have joined, including Kazakhstan, a key potential source of critical minerals that has also joined China’s coalition, as well as ‌close US allies such as Japan, Australia and South Korea. The draft letter, prepared by the State Department, is addressed to ‌the ⁠35 signatories of a US “AI Opportunity Statement” signed in June, which includes members of the non-binding Pax Silica ⁠framework and other countries that have expressed a desire to align cooperation on AI with Washington. By pressing countries to choose sides the US hopes to starve China of resources in a race to make the most sophisticated AI, which could be used for military or economic dominance. In July, Chinese President Xi ​Jinping launched a rival “World Artificial Intelligence Cooperation Organization”, promoting his ‌country’s open-weight technology as a challenge to US influence over the fast-moving sector. Kazakhstan is the only country so far known to have joined both initiatives, setting off alarm bells in Washington. “To be part of everything is to be part of nothing. Signature of the Pax Silica Declaration is not merely a membership subscription, but a commitment,” the letter says, urging ‌countries to “choose deliberately” on AI. “It cannot be held alongside membership in duplicative initiatives whose expectations conflict with our ​own,” the letter said, without specifically mentioning China. Reuters could not determine when the US intends to send the letter or whether it might be amended before sending. The draft was undated. The State Department told ⁠Reuters it would not comment on “purportedly leaked internal documents.” China’s embassy in Washington said the country opposes politicizing trade and technology issues. “Such actions will only stifle global AI advances and serve no one’s interests,” an embassy spokesperson said. The Pax Silica agreement aims to push US allies and partners toward joint projects and export controls, and ultimately reduce reliance on adversaries for critical minerals, AI models and the semiconductor chips that power them. The race between the US and China for technological leadership has reached a pivotal moment, as Chinese open-weight AI models have made rapid gains against proprietary systems from US companies such as OpenAI and Anthropic. The exponential growth of the technology’s capabilities, including the ability to hack autonomously, has forced a global reckoning over its power. Beijing is weighing restrictions on overseas access to some of China’s leading ‌AI models, highlighting the growing tension with its stringent national security agenda. The US touted Kazakhstan in June as the first country in Central Asia to ​join Pax Silica, bringing significant reserves of critical minerals that fuel advanced technologies. China has used its current near-monopolies over critical minerals as a retaliatory weapon in a tariff war launched last year by US President ⁠Donald Trump, who has ramped up US efforts to source the minerals domestically and from allies. Members of Pax Silica have access ⁠to shared investment opportunities in AI-related projects while those who sign the AI Opportunity Statement have symbolically agreed on a “common purpose” and “shared vision” with the US, according to the statement posted on the State Department’s website.

US or China: Washington to tell partners they must pick sides in AI race
North America
CNBC Finance

Tanger CEO says World Cup drove up traffic, sales this summer

Tanger CEO Stephen Yalof said the store operator saw traffic increase in June and July due to international and domestic tourism tied to the World Cup. "We knew when you get these new visitors that come for a huge magnet event like World Cup, you've got one opportunity to introduce them to your brand, and then hopefully they become a great ambassador for the brand if they have a great experience," Yalof told CNBC on Wednesday. The company, which has shopping centers in eight of the 11 host cities for the tournament, said it also saw sales increase and its athletic brands perform strongly amid a boom in excitement and business around the World Cup. "Traffic drives sales. Traffic and sales always move together," Yalof said. "For the year, we're up about 5% sales-wise, which is pretty substantial." Yalof said the company saw World Cup tourists looking for a "real American experience," like eating at a Chick-Fil-A or listening to American music, noting that many of those options are located within the four walls of a Tanger center or next to one. "What we add to the mix is that value shopping experience, particularly in our outlet centers, which give these customers the opportunity to shop American brands like Polo and Michael Kors and Kate Spade and Coach and Nike, and buy that product at the best possible price," he added. Yalof said the company was prepared to take the most advantage of summer traffic from the World Cup to build "long-term customer loyalty" for its products and brands. He said the company also saw more domestic traffic, as more Americans choose to travel within the country this year due to rising oil prices and the current geopolitical macroenvironment. Because Tanger centers include retail, food and beverage, and entertainment, Yalof said the company saw customers come to its stores for one experience and stay for others. "That's what's going to keep us and make us top of mind when these people come back or when they go and they tell their friends about the wonderful experience they had when they came and visited," Yalof said. Tanger also reported strong second-quarter results on Tuesday afternoon, citing strength in "enhanced marketing and traffic-driving initiatives across our portfolio." On a call with analysts, Yalof added that the strength in the current movie business and box office has also helped.

Tanger CEO says World Cup drove up traffic, sales this summer
North America
CNBC Finance

Disney weighs free, ad-supported streaming, says it has sold out Super Bowl ad spots

During an earnings call with investors on Wednesday, CEO Josh D'Amaro said the company is exploring a free, ad-supported streaming product for consumers. "We see it as a way to expand our reach to a customer segment that's more price-sensitive, and expanding our reach ... is one of our strategic priorities," D'Amaro said. He added that unlike many of Disney's ad-supported competitors, the company has more ad inventory that "would actually help us accelerate our ad revenue growth." "A free offering could help us drive top of funnel Disney+ subscriber growth," D'Amaro said, though he fell short of making any official announcements. Business Insider earlier reported that Disney was considering a free offering. Free, ad-supported streaming services like Fox Corp.'s Tubi, Paramount Skydance's Pluto TV and Roku's The Roku Channel have been garnering more viewers as the cost of streaming has risen across various services. Cheaper, ad-supported plans for major streaming players like Netflix and Disney+ have also become increasingly important to attract more customers and boost profitability. Advertising for live sports and streaming has remained strong, even in a more competitive environment. Disney also announced Wednesday that it has sold out ad spots for the upcoming Super Bowl, which will air on the company's ABC and ESPN networks in February. The Super Bowl has long beckoned the highest ad rates of any live TV programming. This year, 30-second spots have reportedly been sold for $9 million. Disney Chief Financial Officer Hugh Johnston told investors on Wednesday that Disney was "pleased" with commitments from its recent "upfront" negotiations and noted volume commitments were up double-digits compared to last year. "Upfronts" are the annual slate of content pitches to advertisers. Johnston said other marquee live events, such as the College Football National Championship, the Grammys and Oscars helped to drive ad sales. "Overall, the current tone I would have is to characterize the market is healthy in sports," Johnston said on Wednesday's call, "but at the same time, competitive in streaming, especially given the growth of supply in the marketplace."

Disney weighs free, ad-supported streaming, says it has sold out Super Bowl ad spots
North America
CNBC Finance

McDonald's earnings beat estimates, chain announces new U.S. head to accelerate growth

McDonald's on Tuesday reported mixed quarterly results as same-store sales growth in the U.S. slowed. The company also announced that Skye Anderson is assuming the role of president of its U.S. business, effective Tuesday, as it tries to boost performance in its home market. She succeeds Joe Erlinger, who led the division for more than six years. Anderson, a 26-year McDonald's veteran, previously served as chief operating officer of McDonald's USA and led its Global Business Services unit before that. "While our playbook is working around the world, we see an opportunity to raise the bar in the U.S. and accelerate performance in our largest market," McDonald's CEO Chris Kempczinski said in a statement. The burger giant reported second-quarter net income of $2.36 billion, or $3.32 per share, up from $2.25 billion, or $3.14 per share, a year earlier. Excluding restructuring charges and other items, McDonald's earned $3.38 per share. The company's global same-store sales ticked up 1.3%, meeting Wall Street's expectations, according to StreetAccount estimates. McDonald's U.S. same-store sales increased 0.8% in the quarter. The chain said that average check rose, but traffic to its domestic restaurants fell. In early May, the burger chain launched a new drink lineup of refreshers and crafted sodas in its home market. However, it faced tough comparisons with the year-ago period, when it rolled out a global limited-time meal tie-in with the "Minecraft" movie. McDonald's saw stronger results outside of the U.S. Its international operated markets segment reported same-store sales growth of 1.5%, while its international developmental licensed markets division saw same-store sales rise 1.9%. In June, the company revealed a new growth strategy at its biennial worldwide convention for franchisees. A new restaurant design, better-tasting food and drinks, consumer-led innovation, and improved customer service are the four cornerstones of the new plan. The chain wants to become diners' first choice, every time. Get this delivered to your inbox, and more info about our products and services. Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

McDonald's earnings beat estimates, chain announces new U.S. head to accelerate growth
North America
CNBC Economy

Private companies added just 44,000 workers in July, below expectations, ADP reports

Hiring at private companies slowed considerably in July, with most of the job growth coming from healthcare, payrolls processing firm ADP reported Wednesday. Nonfarm job growth excluding government totaled a seasonally adjusted 44,000 for the month, below the downwardly revised 95,000 in June and less than the Dow Jones consensus forecast for 75,000. On net, all of the gains came from the services sector, which added 47,000 while goods-producing companies saw a decline of 3,000. Of those jobs, the education and health services sector produced 36,000, continuing a long-standing trend for the industry in leading employment growth. Financial activities added 10,000, professional and business services contributed 9,000, and the other services category saw a gain of 6,000. Trade, transportation and utilities lost 8,000 while natural resources and mining was off 6,000. Manufacturing saw growth of just 2,000 while construction added 1,000. Distribution among company size was relatively balanced, with firms employing fewer than 50 people leading with 23,000 new jobs. Pay gains held steady at 4.4% annually for those staying in their jobs. However, job switchers saw a 7% increase, the largest since August 2025. "Job-changers are highly sensitive to real-time economic conditions, and their rapid pay growth implies supply constraints in parts of the labor market," ADP's chief economist, Nela Richardson, said. "Typical hiring patterns, meanwhile, are changing as employers react to shifting macroeconomic conditions." The monthly employment gain was the smallest since January during a year in which the labor market has steadied after showing little progress in 2025. Most Federal Reserve officials have expressed confidence in the jobs picture and are putting inflation concerns at the forefront. The Fed has kept its benchmark interest rate steady, though markets are betting on a hike before the end of the year if the inflation data does not improve. The ADP report comes two days before the Bureau of Labor Statistics releases its official nonfarm payrolls report for July. Economists surveyed by Dow Jones expect that count to show 83,000 hires, up from June's 57,000, and the unemployment rate holding at 4.2%.

Private companies added just 44,000 workers in July, below expectations, ADP reports