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Shein says it's under investigation by the Federal Trade Commission as it prepares for Hong Kong IPO

Shein's U.S. business is under investigation by the Federal Trade Commission, the fast-fashion giant revealed in documents connected to its upcoming Hong Kong initial public offering. In the filing, the Chinese-founded company didn't say what the FTC is investigating, but the disclosure appears to be the first time the probe was made public. "We are actively cooperating with the FTC. … Although it is possible that we may reach a settlement with the FTC in connection with the investigation, we currently cannot predict the probable outcome of the investigation and the timing of such outcome, and we cannot rule out that such outcome could occur in the near term," Shein wrote in the document, filed with the entity that operates the Hong Kong Stock Exchange. "The outcome of the investigation, whether in settlement or otherwise, may require us to make significant monetary payments that could have a material adverse effect on our financial condition and results of operations," the company added. The FTC declined to comment. Shein didn't return a request for comment from CNBC seeking additional information. The FTC is the U.S.' leading consumer protection agency with a mission to stop "deceptive or unfair business practices." It has previously investigated companies for things like suppressing bad reviews, hidden fees or misleading prices, shipping and refund practices, and issues related to privacy and data, among many other issues. One of the FTC's areas of focus is "dark patterns," which it describes as "design tricks and psychological tactics, such as pre-checked boxes, hard-to-find-and read disclosures, and confusing cancellation policies" to make consumers more willing to give up their money or data. Shein is known to offer countdown timers, gamified discounts and flash sales, among other tactics, on its app to create a sense of urgency and get consumers to spend. In a 2022 report explaining dark practices, the FTC referenced countdown timers in general as one example of a common dark pattern. Shein, which rose to global prominence after the Covid-19 pandemic, previously tried to go public in the U.S., but turned its ambitions to London and ultimately Hong Kong after facing extreme political pushback over its business practices. Its listing in Hong Kong was recently approved, but it's unclear when it will start trading. Get this delivered to your inbox, and more info about our products and services.

Shein says it's under investigation by the Federal Trade Commission as it prepares for Hong Kong IPO
Europe
BBC Business

Shell profits double as oil prices rise due to Iran war

Image source, Getty ImagesByJennifer Meierhans and Shanaz Musafer, Business reportersPublished30 July 2026, 08:00 BSTUpdated 2 hours agoShell's profits for the second quarter of the year have more than doubled after the Iran war pushed up oil prices. The oil giant posted profits of $9.84bn (£7.37bn) for the April-to-June period, up from $4.26bn at the same point last year. The price of crude has risen since the outbreak of the US-Israel war with Iran due to major disruption to global supplies of oil and liquefied natural gas (LNG) through the Strait of Hormuz. But energy prices have also seen sharp swings during the conflict, which has boosted Shell's trading business. Shell chief executive Wael Sawan said the company's "operational performance enabled very strong results during another quarter of severe disruption in global energy markets". Together with its profits of $6.92bn for the first three months of the year it means Shell has seen a 70% surge in first-half earnings. Shell and other energy giants such as BP and Norway's Equinor have seen bumper profits this year, partly down to trading on oil price swings. Before the conflict began, the price of Brent crude, the global benchmark for oil prices, was around $73 a barrel. Since then, it has peaked above $120 but also fallen back below $100 as speculation has swirled over when the Strait of Hormuz will reopen. These big movements in the oil price can widen the gap between buying and selling prices which typically enables traders to make bigger profits. However, the conflict in the Middle East has also affected some of Shell's operations. Its LNG production in Qatar has been shut down since early March because of the conflict, and its Pearl gas-to-liquids facility in Qatar suffered "extensive damage" when it was hit by a missile attack in March. The company has said repairs could take about a year.

Shell profits double as oil prices rise due to Iran war
Europe
The Guardian

US borrowing costs hit 19-year high as Fed holds interest rates

Kevin Warsh said the Federal Reserve would not waver in its commitment to tackling rising prices. Photograph: Mark Schiefelbein/APView image in fullscreenKevin Warsh said the Federal Reserve would not waver in its commitment to tackling rising prices. Photograph: Mark Schiefelbein/APUS interest ratesUS borrowing costs hit 19-year high as Fed holds interest ratesBank’s chair pledges to keep up fight against inflation but decision brings fears of a failure to keep pace US government borrowing costs have hit their highest level since 2007 after the Federal Reserve voted to hold its key interest rate steady, feeding fears that the central bank may not move fast enough to tame a rise in inflation. The yield – or interest rate – on the 30-year US Treasury bond rose 14 basis points to nearly 5.24%, a 19-year high, after the Fed announced its decision to hold its main rate at between 3.5% and 3.75% for the fifth meeting in a row. Kevin Warsh, the Fed chair, said the bank would “not waver” in its commitment to tackling rising prices. A prolonged period of high inflation meant that some Americans believed the central bank had an “implicit target” above its 2% target, he added. “There is no soft implicit target: not on this committee’s watch,” Warsh said. “There’s only a target and it’s 2%. This Fed will not waver … Our credibility rests on performing our duties and delivering on our responsibilities.” The decision to leave rates on hold has spooked investors who are worried about the US economy’s ability to absorb a rise inflation, triggered by Donald Trump’s war in Iran. US inflation cooled to an annual rate of 3.5% in June after Washington and Tehran agreed a brief ceasefire – but this has since ended, with both sides exchanging fire and sending oil prices climbing higher again. Felix Schmidt, a senior economist at the bank Berenberg, said Warsh had not “conclusively answered the question of why the Fed did not hike”. He noted that the Fed chair had implied at a press conference that an interest rate rise in the near term might not be necessary due to the rise in bond yields, which has already pushed up the cost of borrowing across the US economy. “Perhaps Warsh hopes that higher capital market interest rates will help fight inflation in the short term, while the US central bank under new leadership decides on its approach,” Schmidt said. Before the Fed’s meeting this week, financial markets had priced in a 30% chance of a rate rise and, in the absence of such a move, nearly a 100% chance of an increase at the Fed’s September meeting. After Wednesday, however, traders put the chance of a rate rise in September at about 57%, according to CME Group’s FedWatch tool.

US borrowing costs hit 19-year high as Fed holds interest rates
Asia
The Hindu BusinessLine

Strong credit growth, capital inflows likely to support Indian markets; rupee outlook improves: Report

India's domestic growth momentum and improving capital flows could provide support to the Indian markets in the coming months, even as foreign investors' overall equity exposure remains weak, according to a Jefferies research report. Jefferies noted that India recorded net foreign buying of $2.45 billion in equities in July, helped by an unwind of the memory trade. However, foreign investors remained net sellers of Indian equities to the tune of $25.4 billion year-to-date, highlighting continued pressure from overseas flows. The report said the more encouraging signal is coming from the domestic economy, with bank credit growth accelerating to 17-18 per cent year-on-year, the highest level in more than a decade. Corporate lending has emerged as the strongest segment, growing at around 20 per cent, while loans to agriculture and retail expanded 17 per cent and 16 per cent, respectively. Jefferies also pointed to healthy automobile and property demand, suggesting that domestic consumption and investment activity are providing an important counterbalance to volatile global capital flows. The outlook for the rupee has also improved, supported by stronger foreign currency inflows. The Reserve Bank of India's scheme to attract foreign currency deposits from non-resident Indians has generated about $41 billion of inflows so far. Jefferies expects the total to potentially rise to $80-100 billion over the next two months before the scheme ends. In addition, foreign investors have brought in $8.7 billion into Indian government bonds since the beginning of June after interest income on such holdings was made tax-free. Jefferies said these developments increase the likelihood of rupee stabilisation. The currency, which had touched 96.96 per US dollar in May, was at 95.17 at the time of the report. On monetary policy, the report noted that the RBI kept its policy rate unchanged for the fourth consecutive meeting while retaining a neutral stance. Jefferies' India strategist Mahesh Nandurkar expects only one 25-basis-point rate hike during the current tightening cycle. Jefferies sees a more supportive domestic backdrop for India, driven by strong credit growth, resilient demand and improving foreign currency flows. However, elevated cumulative foreign selling remains a key risk for the market, making the sustainability of domestic growth and further capital inflows important factors to watch ahead. 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.

Strong credit growth, capital inflows likely to support Indian markets; rupee outlook improves: Report
North America
CNBC Finance

Coca-Cola tops earnings estimates, hikes full-year outlook as demand for drinks climbs

Coca-Cola on Tuesday reported quarterly earnings and revenue that topped Wall Street's estimates, fueled by higher demand for its drinks. The company also hiked its full-year forecast. Coke is now projecting comparable earnings per share growth of 9% to 10%, up from its prior forecast of 8% to 9%. It also expects organic revenue to increase about 5%, on the high end of its earlier range of 4% to 5%. Coke reported second-quarter net income of $4.43 billion, or $1.03 per share, up from $3.81 billion, or 89 cents per share, a year earlier. Excluding asset impairments, restructuring costs and other items, the company earned 97 cents per share. Net sales rose 7% to $13.38 billion. Coke's organic revenue, which excludes acquisitions, divestitures and currency fluctuations, jumped 6% in the quarter. The company's global unit case volume increased 5%, and every one of its reporting segments saw volume growth. The metric strips out pricing to reflect demand more accurately. The consumer environment is "dynamic," CEO Henrique Braun said in a statement. The comment followed rival PepsiCo saying that shoppers' budgets tightened in the second quarter, leading to weaker sales in the U.S. for its snacks and drinks. Global oil prices have swung dramatically due to the U.S. war with Iran, leading many consumers to temper their spending. In Coke's home market, the national average gas price hit a four-year high of $4.56 per gallon in late May. But Coke's results do not show consumers cutting back. Even in North America, volume grew 3% in the quarter. The company credited its global World Cup campaign with driving higher demand. Two drinks in particular, its namesake soda and Powerade, saw higher volumes that the company attributed, in part, to the tournament's marketing. Coke volume increased 5% and Powerade volume climbed 8% in the quarter. Coke's water, sports, coffee and tea segment was the top performer this quarter, with volume growth of 6%. Out of those four categories, all but coffee saw their volume increase during the quarter. Coke's sparkling soft drinks segment reported volume growth of 4%, helped in part by the lift in demand for its namesake soda and its line extensions. Coca-Cola Zero Sugar saw volume climbed 16%, while Diet Coke, or Coca-Cola Light as it is known in some markets, reported volume growth of 7%.

Coca-Cola tops earnings estimates, hikes full-year outlook as demand for drinks climbs
North America
CNBC Finance

UPS beats earnings expectations, raises full-year guidance

United Parcel Service on Tuesday posted second-quarter earnings results that beat Wall Street expectations and raised its full-year outlook. For the quarter ended June 30, UPS reported net income of $604 million, or 71 cents per share, down significantly from $1.28 billion, or $1.51 per share, in the year-ago period. Adjusting for one-time items, the company reported a profit of $1.5 billion, or $1.76 per share. The company also raised its full-year 2026 guidance, now expecting consolidated revenue of $91.2 billion and adjusted diluted EPS of roughly $7.22 per share. "Our second-quarter results marked an expected and significant shift in our performance and we delivered both consolidated revenue and non-GAAP adjusted operating profit growth," CEO Carol Tomé said in a release. "We entered the second half of the year with strong momentum and are raising our full-year consolidated revenue, non-GAAP adjusted operating profit and non-GAAP adjusted diluted EPS guidance." UPS is in the midst of a turnaround strategy aimed at positioning the company for long-term and sustainable growth. The company is focused on enhancing automation in its networks and tapping into growing markets, including healthcare logistics. For the second quarter, UPS reported a 6% increase in domestic revenue, driven by an increase in revenue per piece, and a 12.5% increase in international revenue. Supply chain solutions revenue rose 7.8%, in part due to growth in healthcare logistics. The company added that it has achieved roughly $1.2 billion of program benefits from its network reconfiguration program, expecting to reach $3 billion by the end of the year. 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.

UPS beats earnings expectations, raises full-year guidance
North America
CNBC Finance

Nike was once China's sneaker king. Here's why its sales have fallen 30%

Sports-related products are the fastest growing consumer category in China and participation in sports and exercise is at its highest level in decades. The overall sportswear market has ballooned 51% in the past five years, fueled by a new focus on healthy living, according to GlobalData. But instead of thriving during China's sports renaissance, Nike's business in the region is languishing. Sales have fallen from the prior year eight quarters in a row, and the overall business has shrunk 30% since 2021, with annual revenue hitting its lowest level in eight years at the end of May. China was once Nike's fastest-growing region, beloved by investors for its high margins and potential for sustained growth. Now, it's the company's smallest market and has become a drain on a global turnaround that some on Wall Street believe is taking too long. Some U.S. analysts expect Nike's China business to recover once its North America operations stabilize, but experts on the ground told CNBC its challenges in the region are deeper, and far different, from what it faces at home. Young Chinese shoppers are increasingly choosing domestic brands over expensive foreign names as part of a larger "China Chic" movement, and consumers are hungry for a localized assortment — not the same product that's being replicated from Utah to Shanghai. Nike is also working to overhaul its distribution model in China, which critics say has become messy, overly complex and driven by discounts. "In a way, Nike has just become irrelevant," said Yaling Jiang, the founder of consumer research firm ApertureChina and an expert on the Chinese consumer. "I don't think young people can remember what's the last new thing they've done. But if you mention Adidas to them, they will tell you about … their pet clothes, pet jerseys, or their China jackets." During its most recent earnings call, Nike's outgoing finance chief Matt Friend couldn't say when the China business would return to growth, telling analysts that revenue trends in the near term "will be in line" with recent performance and "profitability will bottom before sales." In January, Nike CEO Elliott Hill announced Cathy Sparks, a 25-year Nike veteran, would become the next vice president and general manager of Greater China, reporting directly to him. In an interview with CNBC, she said Nike is taking the steps it needs to reconnect with Chinese consumers. "The one thing that I have certainly learned over the last six months is that the Chinese consumer has changed and they have high standards for what they want through product connections, engagement with the brand," said Sparks. "We know that if we can design footwear and apparel, lifestyle or performance, that's specifically targeted towards the unique needs of Chinese consumers, we'll drive full price revenue." A Nike spokesperson pushed back on the idea that the company has lost relevance in the region and said what's changed is younger shoppers are looking for "hyperlocal connections," including through events and broader cultural moments. "Nike has been in China for more than 40 years, and from day one, our approach has been to start with local consumer insight and turn that insight into inspiration, innovation and storytelling that can spark movement," the spokesperson said. When Nike turned to China as its next major growth market in the mid-2000s, it won by largely replicating its global strategy and betting that popular clothes and shoes in the Western world would also land with Chinese shoppers.

Nike was once China's sneaker king. Here's why its sales have fallen 30%
North America
CNBC Finance

Procter & Gamble revenue misses estimates as volume stays unchanged

Procter & Gamble on Wednesday reported mixed quarterly results, as underwhelming demand for its products resulted in weaker-than-expected sales. P&G reported fiscal fourth-quarter net income attributable to the company of $3.04 billion, or $1.26 per share, down from $3.62 billion, or $1.48 per share, a year earlier. Excluding restructuring costs, transaction gains and other items, the company earned $1.43 per share. Net sales rose 2% to $21.2 billion. The company's organic revenue, which excludes acquisitions, divestitures and currency fluctuations, was unchanged for the quarter, thanks to flat volume across P&G's portfolio. During P&G's full fiscal year 2026, the company has reported volume growth in just one quarter. Like many consumer companies, it has seen demand for its products weaken as shoppers have grown more value conscious, substituting cheaper private label versions instead or stretching their shampoos and laundry detergents further. For the fiscal fourth quarter, P&G's beauty division was the top performer, posting 3% volume growth. The segment includes Pantene shampoo and Olay and SK-II skincare products. Fabric and home care was the only other reporting segment to see volume growth. The division, which includes Tide detergent and Swiffer, reported that its volume rose 1% in the quarter. P&G's baby, feminine and family care division as well as its grooming business both reported that volume fell 1%. Health care was the worst performer for P&G this quarter. The division, which houses Oral-B and Vicks, saw its volume shrink 3%, fueled by declining sales of its oral care products. Looking ahead to the next fiscal year, the company is not projecting a significant upswing in demand for its products. For fiscal 2027, P&G expects core earnings per share in a range of $6.89 to $7.11. The company is also projecting all-in sales growth in the range of 1% to 3% compared with the prior year. Wall Street was anticipating earnings per share of $7.04 and revenue growth of 2.7% for fiscal 2027. P&G is currently estimating a $1 billion headwind after taxes from higher costs for raw materials, energy and transportation. Combined with its projections for a higher net interest expense, lower non-operating income and unfavorable exchange rates, P&G anticipates an 8% — or 56 cent — drag on its earnings per share for fiscal 2027.

Procter & Gamble revenue misses estimates as volume stays unchanged
Asia
The Hindu BusinessLine

Shahpur Kandi dam nears completion, Ujh project gets revival push

The Shahpur Kandi dam project is nearing completion, while the revival process of the Ujh multipurpose project has been finalised. Once commissioned, the two projects are expected to generate hundreds of megawatts of electricity and provide irrigation to large tracts of land in Jammu and Kashmir and Punjab. Sharing a video on social media, Singh said the Shahpur Kandi project on the Ravi river was almost complete. “The foundation stone of the project was laid in 1984 by the then prime minister Indira Gandhi, but after her assassination, successive Congress governments forgot about the project,” Singh said. “Despite the Ravi river being allocated to India under the Indus Waters Treaty, which is now in abeyance, its waters used to flow into Pakistan,” Singh said. He said the Ujh project, located on the Ujh river, a tributary of the Ravi, had been conceived nearly 100 years ago during the reign of the Maharaja but had never been executed. “The project has now been finalised and work will begin soon in a phased manner,” Singh said. Once completed, the Ujh project is expected to irrigate around 98,000 hectares of land in Punjab’s Gurdaspur and Pathankot districts and Jammu and Kashmir’s Samba and Kathua districts. The renewed push for projects on the eastern rivers follows India’s decision to place the Indus Waters Treaty in abeyance after the April 2025 Pahalgam attack and subsequent military action between India and Pakistan. Since then, the government has accelerated work on several pending hydropower and irrigation projects. The Shahpur Kandi project is expected to generate up to 206 MW of electricity and provide irrigation to around 5,000 hectares in Punjab and 32,173 hectares in Jammu and Kashmir. The Ujh multipurpose project is designed to generate between 186 MW and 212 MW of electricity, depending on the final configuration and operational parameters. Officials say the projects will help improve water utilisation, strengthen irrigation infrastructure and add to the region’s power-generation capacity.

Shahpur Kandi dam nears completion, Ujh project gets revival push