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North America
CNBC Finance

Darden Restaurants stock falls as Olive Garden reports slower growth

Darden Restaurants on Thursday reported quarterly earnings and revenue that narrowly missed analysts' expectations as same-store sales growth at Olive Garden slows. Shares of the company fell as much as 5% in premarket trading but pared back their losses as executives reassured investors on the company's earnings conference call. The stock was down about 2% in morning trading. Short-term challenges like consumers' cyclospora concerns and the World Cup tournament weighed on Darden's same-store sales during the quarter, executives said. However, CEO Rick Cardenas said that Darden's restaurant chains are performing better in September, and costs of key commodities, like beef, are projected to improve later in the fiscal year. Here's what the company reported for the quarter ended Aug. 30 compared with what Wall Street was expecting, based on a survey of analysts by LSEG: Darden reported fiscal first-quarter net income of $233.4 million, or $2.04 per share, down from $257.8 million, or $2.19 per share, a year earlier. The company's same-store sales increased 3.1% during the fiscal quarter as each of Darden's business units reported growth. But the World Cup weighed on demand for Darden's restaurants early in the quarter, dragging the company's same-store sales down by 80 basis points, or 0.8%, CFO Raj Vennam said. LongHorn Steakhouse was once again the top performer of the portfolio this quarter, as same-store sales rose 6.2%. The chain has overtaken Olive Garden to become Darden's top performer, although it still accounts for a smaller share of the company's overall revenue. Olive Garden saw its same-store sales inch up 1.1%. While it is still the company's largest chain by both number of locations and sales, Olive Garden has seen its growth weaken as diners have become more choosy about their spending. And while many consumers may think about pasta or breadsticks when they consider dining at Olive Garden, the chain was not immune to industry concerns about the deadly cyclospora outbreaks this summer tied to fresh produce. "During the quarter, Olive Garden was prepared to communicate about one of its core brand equities, unlimited soup, salad and breadsticks, but quickly pivoted away from their planned marketing support in response to external events that led to broader consumer concern about lettuce," Cardenas told analysts on the company's quarterly earnings call. To fuel sales further, Olive Garden is going to lean into weekday lunch occasions. Cardenas said the team is working on "several opportunities" focused on value to drive more traffic during the relatively sleepy daypart. Darden's fine-dining business reported same-store sales growth of 1.6%. The segment includes chains like The Capital Grille and Ruth's Chris.

Darden Restaurants stock falls as Olive Garden reports slower growth
North America
CNBC Economy

Switzerland is keeping rates at 0% — for now

Switzerland's central bank kept its key interest rate at 0% on Thursday, defying the tightening cycle that has begun among many of its major peers. But market watchers say it's only a matter of time before it's forced into raising rates. Thursday's decision marked a divergence from policy decisions by the banks of Switzerland's major trading partners: the European Central Bank, the U.S. Federal Reserve and the Bank of Japan, which have all begun raising interest rates to ward off rising inflation. The central banks of Canada and the U.K., also major trading partners, are expected to follow suit later this year. The unique Swiss economy has kept it somewhat insulated from the inflationary surge seen in neighboring nations and economic peers. In August, Switzerland's annual inflation rate ticked up to 0.8%, pushed higher due to rising gasoline, diesel and heating oil costs — but it's a far cry from levels seen in the U.S., U.K. and euro zone. Their respective central banks have inflation targets of 2%, while the SNB's objective is to keep inflation between 0% and 2%. The SNB is widely expected to eventually embark on its own hiking cycle. Traders are pricing odds of a hike versus a hold at close to 50-50 in December — and more than a 90% chance the SNB will begin hiking by early 2027. LSEG's data shows traders are betting on the SNB's key rate rising to at least 0.75% by next September. One of the factors that helps keep inflation low is the Swiss franc's safe-haven status. The currency's strength puts deflationary pressure on the country. As the currency appreciates, imports — which play a significant role in the economy — become cheaper. Because of the franc's potential to curb inflation and economic activity if it appreciates suddenly or excessively, the SNB also monitors exchange rates in its task of maintaining "appropriate monetary conditions." As investors sought protection from widespread market volatility in 2025, the Swiss franc rose more than 12% against the dollar — but the greenback has clawed back around 4% against the franc so far this year. Speaking to CNBC's Carolin Roth on Thursday, SNB Chairman Martin Schlegel said policymakers had decided to keep rates unchanged based on the inflation picture.

Switzerland is keeping rates at 0% — for now
Europe
BBC Business

Tourism tax needs to be more flexible in Wales, warns expert

Last week, Anglesey council rejected introducing the visitor levy for now, over concerns for its tourism industry, while Gwynedd and Conwy councils both postponed making any decision on the nightly fee. It is down to local authorities to decide whether they want to introduce the Welsh government legislation - meaning from 2027 a fixed price can be charged per person, per night - and applies to both adults and children. The Welsh government said the legislation allowed for decisions to be taken at a local level, with councils able to introduce the levy "to support investment in tourism services and facilities". A tourism tax, or levy, is a charge which would need to be paid by anyone staying overnight in any area which introduces it. The idea is that it covers, or contributes to, the costs which authorities face as a result of the tourism industry. If a local authority decides to introduce the tourism tax, fees for people staying in hostels, shared rooms and tent pitches would be 75p + VAT per person per night, while most other types of accommodation would be charged at £1.30 + VAT. But according to Dr Linda Osti, senior tourism lecturer at Bangor University, decisions on how much is charged, and how a levy is brought in, should be made on a more local level instead of a one-size-fits-all approach. "It's one legislation for every county and and it's applied at county level, when we should think about sub-county level," she said. "Geographically, if we think about Gwynedd... we cannot have the same levy on Eryri or Porthmadog. The same legislation cannot work for Cardiff or in Anglesey, on the coast. Osti also suggested there was a "mistrust" from tourism businesses on how local authorities would spend money generated from tourism tax, compared to places like the Italian alps where decisions are made through smaller co-operatives. Earlier this month, it was announced that regional mayors in England would gain new powers to charge an uncapped levy on overnight stays for visitors. Osti, who co-authored a 2024 report for the Welsh government studying how visitor levies worked in other countries, external, said: "If we compare what we know from England, which is very little at the moment, it appears to be much more flexible.

Tourism tax needs to be more flexible in Wales, warns expert
North America
CNBC Economy

Global debt tops $365 trillion as economists sound alarm over 'vicious cycle'

Ever-higher costs to service mounting debt loads pose a major risk to governments around the world, economists have warned. Global debt rose by $10 trillion in the first half of the year to top $365 trillion, according to research published by the Institute of International Finance on Wednesday. State debts are rising as yields on medium- and long-term government bonds issued by a slew of the world's biggest economies hit their highest levels in more than a decade — including in the U.S., Japan, France and the U.K. Rising yields reflect growing investor discomfort at rising interest rates, persistent energy cost pressures, tepid economic growth and high fiscal spending. The IIF highlighted the four major economies in particular as facing "persistently large deficits and rising interest expenses — challenges long associated with debt-distressed emerging market sovereigns." The Washington-based group found that advanced economies paid over $3.3 trillion in interest on internationally traded government bonds last year, more than global spending on AI ($2.6 trillion), defense ($3.1 trillion), or clean energy ($2.3 trillion). Debt has become a political issue, creating a "vicious cycle between elections and short-term quick fixes, and a long-term vulnerability as the marginal utility of higher debt diminishes," the IIF warned. "As benchmark rates rise, interest expense is set to surge, while structural pressures from healthcare and public pension spending remain largely unaddressed," it added. In its economic outlook published Wednesday, the Paris-based Organisation for Economic Co-operation and Development said that rising bond yields showed the need for greater efforts to "contain and reallocate government spending, improve public sector efficiency and strengthen revenues." Reforms are needed to ensure longer‑term debt sustainability and ensure governments can react to future shocks, it said. International Monetary Fund (IMF) chief Kristalina Georgieva meanwhile told the BBC in an interview this week that shocks to the global economy were "pushing debt levels up like a staircase not to heaven," as she criticized a lack of government action. "There are these two things that must be done: bring debt levels down, put fiscal consolidation as a priority, and make sure that the central banks deliver on their mandate for price stability," she said. "It is impossible to stress strongly enough how critical it is to get the courage to take the steps that are necessary. These are politically tough steps to take, but necessary steps to take."

Global debt tops $365 trillion as economists sound alarm over 'vicious cycle'
North America
CNBC Economy

France's fresh budget battle threatens to topple another government

France is paying an ever-higher risk premium on its debt as investors brace for a third straight year of drama over its annual budget, which threatens to topple yet another leader. The yield on the country's 10-year government bonds — known as OATs — popped above 4.5% on Friday for the first time since 2008, and has since held above that threshold. It was last seen trading with a yield of 4.6696% on Thursday. France's 10-year yield is now more than one percentage point higher than the payout on German 10-year bonds for the first time since the height of the euro zone sovereign debt crisis in 2012. The market continues to demand greater compensation for lending to France than it does to Italy or Greece — the problem children of the crisis. Further across the yield curve, France has some of the highest government borrowing costs in the G7 group of advanced economies. French Prime Minister Sébastien Lecornu's fragile minority government will submit a draft proposal for the 2027 package to parliament in early October, which will be debated through the month ahead of a Nov. 17 vote. Lecornu has said he will target 54 billion euros ($61.8 billion) in spending cuts, insisting that greater fiscal discipline is needed to quell France's ballooning debt load and reduce one of the euro area's biggest budget deficits. Some economists say France is on an unsustainable path after Fitch's downgrade of the country's credit rating last year. On Saturday, the French finance ministry said it expects national debt to reach a ​record high of 119.3% of gross domestic product in 2026, ‌with a projected debt-to-GDP ratio of 121.7% in 2027. But ever since France's July 2024 snap election failed to deliver an absolute majority in parliament, political division in the National Assembly — which includes the far-right National Rally, the left-wing New Popular Front and Lecornu's center-right grouping — has come to a head over budget disputes. Administrations were ousted in no-confidence votes in December 2024 and September 2025, while it took Lecornu until February this year to pass the 2026 budget via a constitutional clause allowing him to bypass parliament. "A tough draft budget for 2027 risks toppling the government despite a widely held desire to avoid a political crisis before the presidential election next spring," Mujtaba Rahman, managing director for Europe at Eurasia Group, said in a note on Monday. Measures such as a partial freeze on pensions will be opposed by parliamentary factions, Rahman said, but Lecornu is likely determined to end the probable last months of his premiership "by forcing through a budget that will, in theory at least, begin the lengthy task of cleaning up France's state finances." That could involve compromise on certain issues in talks with rival parties in the coming weeks, or once again resorting to special constitutional powers to pass a budget by the mid-December deadline, Rahman added.

France's fresh budget battle threatens to topple another government
North America
CNBC Finance

MGM Resorts shares sink 11% after Barry Diller's People Inc. rescinds takeover offer

Barry Diller's People Inc. has rescinded its proposal to buy MGM Resorts International, sending shares of the casino giant down roughly 11% on Thursday. The update comes nearly four months after Diller's company offered to purchase MGM Resorts for $48.30 per share. People Inc. already owns a roughly 26.1% stake in MGM. Diller, chairman of People Inc. — formerly known as IAC — attributed the decision to the complicated nature of the deal. "There are lots of ingredients that go into a proposal of this kind on its way to completion," Diller said in the press release. "We didn't feel the mix was coming together in the way we had hoped and have decided not to pursue taking the company private at this time." CNBC's David Faber reported Thursday that Diller backed off the deal in part because of the significant debt load it would have created for the company. "We at People Incorporated remain open to and interested in the possibility of a strategic transaction with MGM Resorts and look forward to considering a range of alternatives," he said in the release. Earlier this week, shareholders of Caesars Entertainment approved an offer from billionaire Tilman Fertitta to acquire the casino company for $17.6 billion. Caesars shareholders will receive $31 per share in cash. 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.

MGM Resorts shares sink 11% after Barry Diller's People Inc. rescinds takeover offer
North America
CNBC Economy

World heads into food crises 'blind' as U.S. aid cuts squeeze UN food agency, experts warn

SINGAPORE — Other nations will have to fill the funding gap at the UN Food and Agriculture Organization as Washington pulls back, according to Phil Hogan, a former European Union commissioner who is now running to lead the world's biggest food agency. "It is important to continue to support [the agency] financially ... as the United States pulls back from some of these programs, other member countries of the FAO will have to step in to ensure all the animal disease issues and food safety issues remain in place," Hogan told CNBC in an exclusive interview in Singapore on Wednesday. The Trump administration has drastically scaled back U.S. foreign aid by dismantling the U.S. Agency for International Development (USAID), once the world's largest humanitarian donor. Hogan, Ireland's former EU agriculture and trade commissioner, is now the frontrunner to become director-general of the Rome-based agency that oversees global rules for food security and sounds alarms over looming famines. He is on a weeks-long tour in Asia to meet regional leaders, ahead of a vote among member countries next summer when current chief Qu Dongyu's term expires in July. UN agencies and virtually all international humanitarian response NGOs and research organizations are struggling for funding as donors, notably but not only the U.S., have sharply reduced foreign assistance, said Chris Barrett, an agricultural and development economist at Cornell University. The funding shortfalls mean "less monitoring and surveillance for early warning of looming problems," and limit the world's ability to cushion the blows to poor families suddenly facing higher food prices," said Barrett. That ultimately leads to more severe hunger problems and sociopolitical unrest as populations grow frustrated with governments that cannot safeguard their food security, he warned. More than a quarter of the world's population faced moderate or severe food insecurity in 2025, and over 266 million people face acute hunger this year, according to the World Health Organization and UN World Food Programme. The conflict around the Strait of Hormuz and the war in Ukraine are "contributing towards potential disasters in 2027 in many parts of the world," Hogan said, adding that El Niño would compound the risk. The Middle East war and the subsequent crisis in the strategically vital Strait of ‌Hormuz have stoked fears of a global agrifood ​catastrophe as flows of fertilizer and energy exports essentially ground to a halt. The FAO sounded the alarm that poor countries were most exposed, as delayed commodity supplies could lead to lower output, higher inflation and weaker global growth. The prolonged war in Ukraine has also snarled global wheat trade through the Black Sea, compounding economic effects and undermining food security in vulnerable countries. Forecasts of a powerful El Niño weather event may further threaten global food security. Any reform plan for the agency must reckon with a tighter budget, Hogan said. "We have to be conscious of the fact that we have less money." His first 100 days would focus on moving staff out of headquarters and into offices in so-called "hunger hotspots" characterized by severe food shortages. The candidate also stressed cost efficiency and collaborations with other UN agencies in implementing the organization's mandate of providing regular access to enough high-quality food and ending hunger and malnutrition.

World heads into food crises 'blind' as U.S. aid cuts squeeze UN food agency, experts warn
Europe
BBC Business

Avanti West Coast services to be nationalised next year

Image source, Danehouse/Getty ImagesByPeter HoskinsBusiness reporterPublished53 minutes agoAvanti West Coast train services will be nationalised from March next year, the government has announced. "For years, we've heard stories of Avanti underperforming, with passengers left paying the price. Enough is enough," Transport Secretary Heidi Alexander said. The move is part of a government plan to improve rail infrastructure, cut train delays and improve experiences for passengers. Avanti West Coast's managing director said he was "proud of what we've achieved over the last six years". The company's contract was due to come to an end on 7 March. In a post on social media, Prime Minister Andy Burnham echoed Alexander's comments. "For years, people have been expected to put up with Avanti's cancellations, delays, overcrowding, and a service that has failed them time and time again," he said. Andy Mellors, managing director at Avanti West Coast, said: "We're proud of what we've achieved over the last six years – from refurbishing our Pendolino fleet and introducing our new Evero trains to running more services than ever before." He added: "Over the coming months, we'll work closely with the government to ensure a seamless transition into public ownership while remaining focused on delivering for our customers and communities." In May, Avanti West Coast said one-in-seven rail services will be cut on its busiest routes following a government request to reduce spending. The company - a joint venture between FirstGroup (70%) and Italian state operator Trenitalia (30%) - predicted the move would cause minimum disruption to passengers and not reduce revenues. Companies such as Avanti West Coast have their finances heavily influenced by the Department for Transport (DfT) due to contracts introduced in March 2020 at the start of the Covid-19 pandemic. All train services operated under DfT contracts are being transferred to public ownership.

Avanti West Coast services to be nationalised next year
Europe
The Guardian

EU says Trump’s plan to ban US diesel exports would ‘negatively impact both sides’

Trump is reportedly considering a 90-day export ban on diesel fuel to ease high pump prices for US households. Photograph: Patrick T Fallon/AFP/Getty ImagesView image in fullscreenTrump is reportedly considering a 90-day export ban on diesel fuel to ease high pump prices for US households. Photograph: Patrick T Fallon/AFP/Getty ImagesOilEU says Trump’s plan to ban US diesel exports would ‘negatively impact both sides’US president’s suggested 90-day export ban before midterm elections could bring even higher fuel prices across Europe The EU has warned Donald Trump against plans to ban US diesel exports to the global market, saying the move would negatively affect Europe and the US. The European Commission has reacted with “concern” to reports this week that the US president could prevent diesel from reaching the global market. Trump is reportedly considering a 90-day export ban to provide a temporary respite from high pump prices for US households before the midterm elections, after US diesel reached a record average of $6.52 (£4.93) a gallon. “I’ve ​said let’s not send ‌out the diesel. ‌We make a lot of diesel … I’ve called for it. ‌I’ve called for it within my people,” he said. Olof Gill, a spokesperson for the EU’s executive arm, said on Thursday “any disruption would risk negatively impacting both sides” and the EU expected “close partners to consult each other before taking measures that affect shared markets”. The EU made the diplomatic intervention as experts said that the potential export ban could be “devastating” for Europe, and traders scrambled to assess the continent’s reliance on imports from the US. The US energy secretary, Chris Wright, has warned that banning exports was a “blunt tool” that could harm US fuel supplies in the long term. For Europe, the ban could be far more damaging. US diesel exports have made up a third of the continent’s imports this year, as supplies from war-damaged refineries in the Middle East and Russia have plummeted. By August, the US supplied about half of Europe’s diesel imports. Pump prices have already climbed to record highs across Germany and the Netherlands, leading to calls for political leaders to protect households from rising costs. In the UK, motorists may be only days away from fresh all-time highs, raising concerns over the economic impact of further price hikes for hard-pressed households. The RAC said the average cost of diesel was 197.75p a litre on Thursday, up from 142.38p before the start of the Iran war. “A US export ban would be devastating for diesel supply in Europe, which would struggle to replace supply,” said Josh Michalowski, the head of European diesel pricing at Argus Media, a commodities data provider. View image in fullscreenDiesel prices in some parts of the UK have passed £2 a litre – and reached £2.17 a litre at BP Kinross Services in Perthshire, Scotland. Photograph: Murdo MacLeod/The GuardianFuel stations across Europe are unlikely to run dry, because Europe produces about 70% of the diesel it consumes from domestic refineries. It also stores fuels in reserve. But experts fear that competing for cargoes on the global market would lead to higher market prices.

EU says Trump’s plan to ban US diesel exports would ‘negatively impact both sides’