How Trump Is Dulling Tiffany & Co.’s Sparkle; Just Another Multi-billion Dollar Monday; Oil Vey! OPEC Squabbles Over Oil Cuts

Occupying 5th Ave…


Image courtesy of Boykung/

Despite occupying some of the the best real estate in the world, Tiffany & Co.’s New York flagship store is having some sales troubles no thanks to president-elect Donald Trump,  whose nearby police barricades, protests and secret service detail have taken a big chunk out of the store’s traffic. And that’s a huge problem, especially because the U.S. is Tiffany & Co.’s biggest market, and its Manhattan store accounts for 8% of the company’s sales. At least there’s China and Japan, whose currency fluctuations allowed consumers in those regions to take advantage of a strong yen that had them picking up all kinds of nifty goods from the iconic jeweler. Mainly because of that, the company posted a surprise 1.2% sales increase – the first sales rise in eight quarters. Same store sales didn’t fare as badly either, even though experts thought they would. Instead of declining an expected 2.8%, they fell just 2%. In the United States, presumably in locations where Trump does not reside, Tiffany & Co. experienced a smaller than expected drop, falling just 2% compared to last year at this time. The luxury jeweler scored a $95 million profit, pulling down 76 cents per share on sales of $949.3 million. Analysts only expected 67 cents to be added to shares with sales totaling $923.7 million.



Image courtesy of Stuart Miles/

Move over $3.36 billion. Move over $3.39 billion. The original sales estimates for cyber-Monday proved no match for the actual numbers. Adobe Digital Insights whipped out the results for this year’s post-Thanksgiving shopping extravaganza, which blew estimates out of the water and came in at a whopping $3.45 billion – over a 12% increase from last year’s cyber-Monday purchases. But what’s super weird is that apparently there were less deals on cyber-Monday than on Black Friday. However, Black Friday’s numbers were looking awfully green as well, setting a record with a 22% increase over last year and coming in at just $110 million less than cyber-Monday. Some analysts were a bit concerned that the abundance of web sales on Thanksgiving would put a dent in cyber-Monday’s digits. But wouldn’t you know it? That didn’t happen. Purchases made using Wall-Mart’s app jumped 150% while Amazon is expecting to report its best cyber-Monday. Ever. But you’re just going to have to take their word for it. As for losers, look no further than Macy’s. Perhaps it was karma for opening its doors at 5:00 pm on Thanksgiving Day, but the company experienced outages on its website that kept a lot of shoppers from making a lot of purchases on the company’s site. The amount of money the retailer likely lost was probably not enough to offset the fact that it opened its doors on Thursday. Boohoo.

Why can’t we oil just get along?


Image courtesy of Rawich/

The Organization of the Petroleum Exporting Countries, also known as OPEC, is having a big fancy meeting in Vienna tomorrow. At issue is the problem that there is way too much oil floating around all over the world. This oil glut is making oil prices low which makes for really good prices at the pump. However, the countries that produce all this oil don’t like that one bit and are trying to agree on how to fix it so that prices go up again and they can start making cold hard cash. Saudi Arabia, Iran and Iraq are the biggest oil producers and the logical step would be for each country to cut their production. But none of them want to do that. There’s a lot of ego involved. It’s like color war, but with actual valuable commodities at stake, besides national pride. Saudi Arabia is proposing cuts of 1.2 million barrels per day. However, Iran’s not down for making any cuts because it feels it needs to make up for lost time from all those years of Western sanctions it faced – and totally deserved – and still does deserve. Iraq is using ISIS as a very convenient, if somewhat legit excuse since it is, after all, fighting a war against a psychopathic terrorist organization, and the money it gets from selling oil helps fund that lofty endeavor. Rumor has it that Iran and Iraq are coming around but no word on whether Saudi Arabia will play ball. So stay tuned to see if and when more OPEC drama plays out, and how this drama will affect your wallet and your green car aspirations.


Debt Collectors Are on the Hook Now; Oracle Pays Big for NetSuite; VW’s Surprising Return to the Top of the Heap

Karma time…


Image courtesy of Stuart Miles/

The tables are turning on debt collectors and after forty years it’s about time. The Consumer Financial Protection Bureau (CFPB) has got big plans that involve some major federal oversight for an industry that has plagued tens of millions of Americans for decades. In 2015, the CFPB received a mind-blowing 85,000 complaints against the industry. So you might just find it comforting to know that debt collection agencies had to pay $136 million to the CFPB and several states over debt collection issues and sales of credit card debt. Now, before debt collectors make their first, sometimes-harrassing, phone call, they are required to substantiate the debt and gather information so as not to try and collect anything that they are not entitled to collect. Speaking of harassment, the industry will need to put the kibosh on their “excessive and disruptive” debt collection tactics or face consequences. Consumers will now even be able to request that debt collectors not contact them at work or during certain hours. Debt collectors will also be required to wait thirty days before contacting family members of a deceased consumer from whom they wish to collect. Some of the 9,000 debt collection agencies are pleased with the new regulations because they feel they will clear up ambiguities. But these are, after all, debt collectors we are talking about, and they are primarily concerned with how their costs will go up for compliance. However, they can probably afford a few upgrades given that the industry sees $13.7 billion in annual revenue with about 70 million Americans in the throes of debt collection. You see, sometimes there are happy endings. Sort of.

Silver lining…


Image courtesy of yodiyim/

Oracle is throwing down some major cash to pick up cloud computing business, NetSuite. Not that industry experts are particularly surprised. After all, Larry Ellison and his family already own about 40% of NetSuite shares. The deal is valued at $9.3 billion, which comes out to approximately $109 per share with a 20% premium on Wednesday’s closing price.  Larry Ellison will get about $3.5 billion out of it. So no doubt he’s celebrating. It’s one of Oracle’s biggest deals, with one just other ahead of it. NetSuite, which was founded in 1998,  supplies cloud-based business management services for about 30,000 companies in 100 countries. The company is touted as having paved the way for cloud-based computing and was the first company to offer business web-based applications. But the time now was ripe for some change and NetSuite apparently needed a little assistance from Oracle and its global reach to grow even greater. The official press release touted the companies as complementary to each other and that they will coexist in the marketplace forever. And that is just a beautiful and moving sentiment. Naturally, shares of both NetSuite and Oracle rose today, and why shouldn’t they. When the tide is high, all boats rise.

Winner winner…


Image courtesy of digidreamgrafix/

Diesel-gate be damned. Volkswagen is now the world’s largest automaker and there’s nothing you can do about it but scratch your head and drop your jaw. Even though sales in the U.S. continue to slump – though not as bad as you might think  – the German automaker sold more cars in the first six months of 2016 than Toyota, who is used to holding the title of world’s largest automaker. Volkswagen was poised to earn the title for the full year except the unfortunate emissions scandal put the kibosh on that goal. For four years in a row, Toyota was the world’s best-selling automaker through 2015. So it’s ego is probably feeling a bit bruised right about now. GM is in third place and experts don’t think it’ll ever win the top slot. Volkswagen sold 5.12 million cars to Toyota’s 4.99 million vehicles. Toyota’s sales were down by .6% over the same period last year while Volkswagen’s sales were miraculously up 1.5%.  To be fair, an earthquake in Japan damaged one of Toyota’s plants and that incident is being blamed for its shortfall in production. But apparently U.S. consumers seem to be more offended by the emissions rigging than the rest of the world with falling U.S. sales by 7%. However, the U.S. is a relatively small market for VW who counts Europe and China as its key markets. The question, though, remains if VW can keep it up and reclaim some glory.



GM’s Defect Debacle In Rearview Mirror; Overseas Deal Might Have Big Impact Here; Zen-tastic Quarter for Lululemon;

Emboldened or embattled?


Image courtesy of Salvatore Vuono/

Score one for GM, the not-so-embattled-anymore auto company that just won a second lawsuit in a series of bellwether cases. In case you have been hanging out in another solar system for the last couple of years, tons of drivers are filing tons of lawsuits against GM because they got into accidents which they say can be blamed on GM’s faulty ignition switches. After a two week trial and a single day of deliberations, two Louisiana plaintiffs, who crashed their car back in 2014 during a freak ice storm, will not be awarded any damages despite their automobile’s defect. This win bodes well for GM and it’s a good thing because there are hundreds more waiting in the legal wings.This case is the second in a series of six cases that will be used to test strategies, with each side getting to choose three cases to argue. This case was GM’s selection and the next bellwether case is scheduled for May. GM already paid out a lofty $2 billion to resolve a slew of legal claims against it, in addition to recalling millions of vehicles. That includes a $900 million settlement to Uncle Sam so that the government would graciously agree to drop its criminal probe into GM. Another $575 million was paid out to settle close to 1,400 civil cases. Then GM set up a $95 million victims compensation fund. In the meantime, 15 people were fired over the defect debacle – that would have cost a buck to fix, by the way –   as GM CEO Mary Barra has been on a mission to change the company culture. Good luck with that one.

Deal or no deal…


Image courtesy of digitalart/

You might not be so familiar with a Taiwanese company called Foxconn but it’s more than likely you’re using its product. That is, if you happen to use a very popular mobile device known as an iPhone. Turns out Foxconn assembles those nifty little phones. But that’s not news. What is news is that the company is set to snap up Japanese company, Sharps Electronics for $3.5 billon. And if you can believe it, some analysts think it’s a bad move. And that’s even after Foxconn knocked a couple of billion off of their initial offer when it was discovered that Sharp has literally billions of dollars worth of problems. But, oh well. In any case, if and when the deal goes through, it will be the biggest acquisition by a foreign company in Japan. But that’s beside the point. Foxconn is unofficially hoping that this acquisition, however fiscally risky it may be, will help give it an edge, albeit a slight one, for its production contracts with Apple, especially considering that Apple uses Sharp screens. Foxconn is well aware that Apple has been giving out production contracts to other companies too, and competition like that can’t be all that good for Foxconn. Hence, besides assembling the phone, Foxconn would also own the company that supplies the screens and well, wouldn’t that put Foxconn in a nice, cozy, almost secure spot with Apple.

Make lemonade yoga pants!


Image courtesy of Suat Eman/

Lululemon doesn’t seem to be bothered by increased competition from Nike and Under Armour, as evidenced by its fourth quarter earnings which were nothing short of…zen. And by zen, I mean that the athleisure company beat the Street’s predictions. The athletic apparel company enjoyed a nice little holiday shopping season with increased sales that gave it a profit of $117.4 million with 85 cents added per share. Analysts predicted the company would pick up just 80 cents per share. Maybe those analysts need to pick up some new Lululemon yoga pants, no? Revenue kicked up to $704.3 million, up from last year’s $602.5 million, and again, analysts only expected $692.6 million this quarter. Last year the company only earned $111 million and 78 cents per share. Lululemon is expecting to whip out a fourth quarter that is sure to please investors by picking up earnings between $483 million to $488 million and adding 28 cents to 30 cents a share. However, the perennial buzzkiller we call Wall Street would rather see Lululemon rake in $486.1 million adding 37 cents per share. In what might seem like an awfully bold statement, the yoga apparel company plans on doubling its earnings by 2020. In the meantime, it expects its full fiscal 2016 year to gain between $2.05 and $2.15 a share and that’s nothing to sneeze at. Except that Wall Street is hoping for earnings that will look more like $2.16 per share. Lululemon is pulling out all the stops to improve its margins and part of that means switching over to ocean freight as opposed to air freight. Apparently, air freight is a gigantic margin-money eater. Who knew.

OMG-D-P!!!!; No Bling In Tiffany & Co. Earnings; McDiss Day


Image courtesy of cooldesign/

Image courtesy of cooldesign/

China might be hogging center stage for its economic slowdown but the U.S. is stealing the spotlight now for the exact opposite reason. The exciting news off Wall Street today (okay, exciting is a stretch) is that the U.S. economy grew by a whopping (not a stretch) 3.7% instead of the initially estimated 2.3% growth rate. So let’s give a big shout out to the GDP for not repeating that awful first quarter growth rate of .6% which had everybody reeling and blaming a brutal winter and a slowdown at west coast ports. Business investments also saw a 4% increase even as low oil prices and a strong dollar continue to toy with our fiscal emotions. Shares went up across the indexes and the Dow Jones isn’t looking so scary right now, having gone up 1.4%. Consumer and government spending are up too. As if government spending ever goes down? So does this mean the Fed might once again forge ahead with its unwelcome plans to raise rates? Doubtful, for September anyway. But brace yourself because that hike is on the horizon.

You can forget breakfast…

Image courtesy of MR LIGHTMAN/

Image courtesy of MR LIGHTMAN/

Tiffany may have some sweet bling to offer but its earnings were anything but. The luxury goods retailer saw a 15.4% decrease in profits to $105 million, raking in 86 cents per share, a nickel short of estimates. So what gives? A strong dollar has got tourists shying away from Tiffany & Co. since they wouldn’t have been getting enough bang for their good old American bucks. However, Tiffany also saw a 21% increase in sales from Japan. The jeweler is also betting big on China, despite that fact that everyone else seems freaked about by the country’s slowing economy. Sales there are up. So clearly more than a few folks in China are plunking down lots of cash for some fancy Tiffany merchandise. Which makes perfect sense since China is the number two luxury market in the world. In fact, Tiffany is going ahead with plans to open two more stores there, adding to the thirty others already in the country and its 304 total stores. But shares of Tiffany are down 20% for the year and are currently hovering at an 18 month low. Interestingly enough (at least I thought so), less prestigious bling company Signet Jewelers Ltd., parent to both Kay and Jared Jewelers, saw some especially good earnings. Signet beat estimates of $1.15 per share to come in at $1.28 per share. Does this mean a shift in consumer preferences? Hmmm.

Off with their chicken supply…

Image courtesy of  joephotostudio/

Image courtesy of joephotostudio/

McDonald’s has cut ties with one of its chicken suppliers after some video was obtained from a Tennessee farm that supplies to Tyson, which in turn, supplies to McDonald’s. Unfortunately, these chicken farmers were allegedly using inhumane tactics on their farm – a big no-no if you wanna be in good with the Golden Arches. And while it was the right and noble thing to do to terminate their contact, McDonald’s still has not exactly landed in the good graces of Americans today. However, it has nothing to do with chicken. Only beef. As in a beef with Burger King. Perhaps you may have heard that today is National Burger Day. In a two page ad taken out in the New York Times and Chicago Tribune, Burger King wanted to join forces with McDonald’s on this auspicious day, put aside its McDiffferences, and offer up a McWhopper. Instead of graciously accepting this show of good beef, McDonald’s very undiplomatically declined the opportunity with CEO Steve Easterbrook writing, “We commit to raise awareness worldwide, perhaps you’ll join us in a meaningful global effort?” Can you say McOuch?

Deutsche Bank CEO’s are Leaving Early and No One is Shedding Tears; McDonald’s Numbers Not Totally Horrible; Smack Talk at the G7 Summit

You’re Fitschen kidding me…

Image courtesy of biosphere/

Image courtesy of biosphere/

In case you were wondering how Wall Street feels about Deutsche Bank’s outgoing co-CEO’s Anshu Jain and Juergen Fitschen, then just look at the company’s stock price. Shares of Deustche Bank gleefully shot up over 8% at one point, on the news that the two men would be ditching their digs even earlier than planned. However, those gains weren’t just from the sheer joy of those early departures but also because investors totally dig their replacement, British banker John Cryan, who also happens to have a pretty decent track record. Cryan is what the cool kids call a “takeover specialist” which is something Deutsche Bank could use now more than ever seeing as how Jain and Fitschen couldn’t seem to stem the tide of legal issues that have been plaguing the bank, including a massive $2.5 settlement claim the bank had to fork over after some traders very rudely – and illegally, I might add – rigged some benchmark interest rates. In fact, most of Deutsche Bank’s troubles and scandals seemed to to come out of its investment bank, which coincidentally, was/is under Jain’s watch. The question remains as to whether or not Cryan can pull the largest German bank out of its funk. Except, first he’s got to come up with a plan. At least he speaks German. So score one for Cryan.

You deserve a break today…

Image courtesy of  atibodyphoto/

Image courtesy of atibodyphoto/

Things at McDonald’s weren’t nearly as bad as everyone thought they were going to be. They weren’t great but we’ll get to that. The Golden Arches saw same store sales drop .3% , which is definitely not good. However, at least those sales didn’t drop by .9%, the figure expected by all those super-educated analysts. To that I say booyah.  And then there was Europe. While everywhere else on the planet McDonald’s saw sales fall, McDonald’s needs to give much danke to Germany, France and the UK who showed the burger chain some major love in the form of a 2.3% gain. Analysts only expected Europe to bring in a tres  modest .6% gain. So you see, Chipotle, Panera and Shake Shack haven’t taken over the fast-food world. Yet. McDonald’s is in the midst of bringing about a “turnaround plan” which apparently includes offering breakfast all day. Except that’s only in – where else? – Southern California. Also, as part of the plan to reclaim its rightful place in the fast-food kingdom, CEO and President Steve Easterbrook has big lofty plans to rebrand McDonald’s as “a modern, progressive burger company.” Did you get all that?

Back at the G7 Summit…

Image courtesy of bplanet/

Image courtesy of bplanet/

There seems to be a bit of confusion coming from the G7 Summit. A French official told reporters that President Obama said the strong dollar is a “problem.” Then, the dollar slid against the euro. However, President Obama insists, “I did not say that.” But, still, the dollar still slipped, for the first time in three days, against the euro. In any case, other important stuff was presumably discussed at the conference where world leaders from the United States, Germany, France, Britain, Italy, Japan and even Canada talked about fiscal issues that are plaguing the world. But who doesn’t love a good “he said, he said,”  especially during a super important meeting between the world’s most powerful people. I could really see this one playing out on South Park.

Cyber-Monday Madness; Move Over George Clooney, There’s a New Robot in Town; Cyber-Cookie Scouting

Monday cyber blues…

Image courtesy of Stuart Miles/

Image courtesy of Stuart Miles/

Cyber-Monday is expected to be a little less cyber and a lot more Monday thanks to promotions that started a lot earlier than Monday and are lasting a whole lot longer past Monday. The National Retail Federation is expecting 127 million shoppers to log on and purchase some of their holiday shopping from their computer. That may seem like a huge number except that last year saw 131 million people doing some of their shopping online. Some of this has to do with the fact that a lot of deals can be had in stores as well as online. This past Thanksgiving weekend saw 5.3% fewer shoppers with 11% less money spent. However, do not despair, as this Cyber Monday alone is expected to rake in some $2.5 billion (though to be fair, it is going to be a “Monday” that lasts several days).

Mr. Roboto…

Image courtesy of Victor Habbick/

Image courtesy of Victor Habbick/

Continuing the cyber-Monday theme, expects this to be its biggest cyber-Monday yet. Last year the online marketplace shipped off 36.8 million items worldwide, which comes out to 426 items per second. This year the company expects to surpass that. So it’s a good thing it’s employing a fleet of 15,000 robots that it purchased (presumably not from from Kiva Systems a few years ago for $775 million. The robots will be used to “pick and pack” and are expected to reduce shipping time from hours to mere minutes, according to a company spokesperson. But it’s not just Amazon that has hopped on the robotic train. Just ask George Clooney – who has been unceremoniously replaced by a robot charmingly called Pepper to become the new “face” of Nespresso in Japan. Approximately 1,000 stores across the country are expected to get their very own “Pepper.” I guess that was harder to achieve with George Clooney. It seems the robots’ artificial intelligence have expanded their conversational ability by actually listening to what customers say. Apparently the same could not be said for Mr. Clooney.

The sweetest things…

Image courtesy of SOMMAI/

Image courtesy of SOMMAI/

The Girl Scouts of America just got a whole lot more adorable now that they are getting a bit more tech-savvy as they embark on their Digital Cookie Program. Yeah. That’s right. The cookie fundraiser, meant to teach the girls a bit about entrepaneurship have upped their cookie game. They will be setting up online shops – each girl scout will get her own digital cookie website – to market their cookies and track sales. There are 2 million girl scouts milling about the country. That adds up to a lot of Thin Mints. The girls tend to sell about 200 million boxes of cookies a year which fund not just the organization, but camps and trips as well. Creeps and weirdos need not apply as consumers will need to get pre-approved by the scouts’  parents in order  to purchase the delicacies. So how does that help someone if they don’t know anybody who has a child who is a girl scout? The cookie websites will sync with Facebook pages. Surely via Facebook they’ll be able to gain access to those delightfully delectable boxes. But f that still doesn’t help, and that certain someone has no Facebook friends connecting them to girl scout cookies then perhaps it’s just the universe’s way of telling them to lay off the cookies.


The Bitter End Might Have Just Arrived For Valeant Pharmaceuticals; Cocoa: Get it While You Still Can; It Seems Japan Is Not As Far As It Seems

Has their time finally come to an end?

Image courtesy of patpitchaya/

Image courtesy of patpitchaya/

Could it be that the Valeant/Allergan saga has finally come to an anti-climactic end? Just when things seemed to be getting juicy, in walks generic drug-maker Actavis with an offer of $219 per share, making Valeant’s impending hostile takeover nothing more than a bad memory for Allergan. If you recall, everyone’s favorite (and only) Botox-maker had been fighting off Valeant’s fiscal hostilities for months. And in one fell money-minded swoop, Actavis put in an offer for Allergan that not only values it at about $66 billion, but also makes it so that it doesn’t have to deal with Bill Ackman and his Pershing Square Capital Management, which by the way, has almost a 9.7% stake in Allergan. Neither Pershing Square nor Valeant had any comment on the new offer and why would they. Besides, they win either way. This new deal adds quite a few billion dollars to Pershing Square’s already plump portfolio. As for Valeant, well it has already begun to set its fiscal sights on animal care company Zoetis.

Start hoarding the Hersheys…

Image Courtesy of Danilo Rizzuti/

Image Courtesy of Danilo Rizzuti/

It just might be that the world really is coming to an end. If a recent report by Bloomberg is correct (and seriously, it’s Bloomberg so I am sure it is), then the world will be in the throes of a chocolate shortage, with demand outpacing supply in the year 2020 by one million metric tons. If that’s not considered armageddon, then I don’t what is. Some of the factors to blame: Ebola. Yes that obnoxious, noxious deadly virus has given us ample reasons to hate it and here’s yet one more. West Africa supplies us with almost 75% of the world’s cocoa. The fact that the countries afflicted with Ebola are so close to the countries that supply cocoa are basically freaking people out on so many levels. Of course drought always manages to play a menacing role in crops and cocoa is no different. In fact the price of cocoa, whether you realized it or not (or simply just tried to feign ignorance) has gone up 60% since 2012. Combine that with pests and other plant diseases and that Hershey bar with almonds is becoming but a distant memory. So start stockpiling those candy bars. In a few years you might just be able to pay your mortgage with them.

So what’s the big deal?

Image courtesy of ddpavumba/

Image courtesy of ddpavumba/

Japan is staring into the wrong end of a recession after reporting its second straight quarter of growth contraction. Never a good thing especially when we’re talking about the world’s second largest economy. So why should we, on this side of the planet, care? Well for one, its toying with our financial markets. Our markets don’t particularly like it when other markets in other parts of the world have fiscal issues and Japan’s are quite large. Then we must take into account that our European friends across the pond aren’t too thrilled, as are we,  with state of their financial markets, which have seem to have come to a slowdown/standstill. When that happens, the United States ends up having to support more than its fair share of the global economy which, naturally extends on over to us, the taxpayers. See how that all works out so unpleasantly?