Latest Developments

North America
CNBC Economy

Inflation is outpacing wage growth again, squeezing Americans’ paychecks

Americans face a renewed squeeze on their paychecks as inflation once again rises faster than wage growth, putting further pressure on consumer wallets. "A substantial number of Americans are worse off, their incomes are not keeping up with the price increases right now," Heather Long, chief economist at Navy Federal Credit Union, told CNBC. Consumer prices rose 3.4% in August from a year earlier, according to data released Friday by the U.S. Bureau of Labor Statistics. Average hourly earnings, meanwhile, increased just 3.1% over the same period, according to a separate BLS report released Friday. Real average hourly earnings, adjusted for inflation, fell 0.1% from July and were down 0.3% from a year earlier in August. The gap between inflation and wage growth is a stark reminder that workers are losing purchasing power. "The basics are that inflation is wiping out wage gains," said Long, adding that April marked a clear turning point after a lengthy stretch in which wage growth had generally exceeded inflation. From May 2023 until about April of this year, workers had been slowly regaining ground. In fact, Long first started charting the inflation-wage growth relationship a year ago to make the opposite point — that things were improving and even as Americans remained frustrated at the time by the higher overall price level, wages were gradually catching up. "That's what's just hard to watch. Things were getting better, and now that improvement has blown up," she said. Energy remains a major source of pressure now, with gasoline prices rising 3.9% in August alone, accounting for more than one-third of the consumer price index's gain. Diesel touched $6 per gallon on Friday for the first time amid fuel supply disruptions arising from wars in Iran and Ukraine. Long ties the shift in household finances to the surge in energy prices following the war in Iran. Navy Federal previously estimated that gasoline prices jumped 21% in March, helping push its measure of car ownership costs to a record. Long said it is difficult to see inflation falling substantially while geopolitical pressures continue, particularly as wage growth slows.

Inflation is outpacing wage growth again, squeezing Americans’ paychecks
North America
CNBC Finance

Kraft Heinz bets on more flavors for Philadelphia cream cheese as it looks to revive brands

Philadelphia cream cheese will release three new flavors on Tuesday as part of Kraft Heinz's broader plan to reinvest in its iconic brands and win back shoppers. Previously, the 154-year-old brand released about one or two new flavors such as garden vegetable or pineapple every year. Over the next two years, it plans to launch 10 new varieties, with the goal of "creating some excitement" within the cream cheese category, according to Jerome Drolet, Kraft Heinz's president of taste elevation. Drolet's position is a nod to Kraft Heinz's now-paused split. When the packaged foods giant planned to spin off into two separate companies, one had the temporary name of "Global Taste Elevation," which would house condiments, sauces and Kraft Mac & Cheese. For now, Kraft Heinz is sticking together and trying to stage a comeback by making its legacy brands more relevant. In the period since Kraft Heinz announced the split was paused, the company's shares have fallen 2%. Some investors are pessimistic that its well-known but stalled brands can ever regain shoppers' favor, even with a $700 million investment from Kraft Heinz. Some of that money is pouring into Philadelphia. The company's spending on the cream cheese brand is expected to climb 63% this year compared with 2025, including more backing for its research and development, according to Drolet. And investment in new flavors has quadrupled, he said. Philadelphia accounts for about 62% of U.S. cream cheese sales, according to data from Euromonitor International. But its dominance means that it is responsible for growing sales of the overall cream cheese category. Kraft Heinz is hoping that new flavors will drive more cream cheese sales. The first round of new Philadelphia releases includes Mike's Hot Honey whipped cream cheese, salted caramel and a seasonal cranberry orange, which will only be available for a limited time. The Mike's Hot Honey flavor will launch in Walmart exclusively until it hits other retailers' shelves in January. "We want to make sure that the profile of the products we're launching are hitting critical masses," Drolet said. "It needs to be incremental, but it also cannot be too niche so that it only sells a few units." As part of the strategy to widen cream cheese's appeal to shoppers, Philadelphia also launched a lactose-free version earlier this year. Some of Philadelphia's expanded marketing spend will once again focus on the brand's "pure dairy equity," according to Drolet. The strategy recalls the ethos that inspired its Philadelphia cream cheese angel campaigns of the 1990s. In February, it launched its "Really Philly good" campaign. The brand is also trying to reach consumers to encourage them to use cream cheese as more than a schmear for a bagel. Philadelphia's cream cheese brick has already been a cooking and baking staple for decades. Expect to see more TikTok influencers and recipe websites using Philadelphia cream cheese in creative ways. Drolet sees opportunities to use them in dips and even pasta sauce — like swapping out heavy cream for the Mike's Hot Honey cream cheese in a Bolognese.

Kraft Heinz bets on more flavors for Philadelphia cream cheese as it looks to revive brands
North America
CNBC Finance

U.S. auto market predictions for 2030: More hybrids, no Chinese entrants

A new report casts serious doubt on whether a wave of Chinese cars and SUVs will hit the U.S. by 2030, let alone well into the next decade. "I think the near-term dynamics are relatively low, relatively unlikely to support an entry to the U.S. market," said automotive analyst John Murphy, who is releasing his latest outlook for the U.S. auto market on Tuesday. Despite growing speculation that it won't be long until Chinese autos are sold in the U.S., Murphy said he believes there is little appetite among U.S. lawmakers to allow that to happen, mainly because of the impact it could have on U.S. automakers and domestic auto production. "I think an entree of the Chinese with unfettered access in the U.S. market would be incredibly disruptive, even if they produced here in the U.S.," he told CNBC. Vehicles built in China and imported into the U.S. currently face a 100% tariff under the Trump administration's trade policies. That has effectively kept almost all Chinese brands from selling their vehicles in the country. Starting next year, the Commerce Department has said it will ban automakers from importing and selling vehicles in the U.S. that contain technology developed or manufactured by Chinese companies. Beginning this fall, a small number of Chinese automakers, including BYD and Geely are expected to begin selling vehicles in Canada. In part as competition from Chinese automakers grows worldwide, Murphy says he predicts that between five and 10 auto brands currently sold in the U.S. could disappear over the next decade. There are currently 38 auto brands in the U.S. Murphy said he believes the industry's shifting landscape means no brand is 100% safe, but some face a greater risk of dropping out of the U.S. than others. The latest Murphy Automotive Product Pipeline lists Polestar, Maserati, Alfa Romeo, Jaguar and Fiat as five brands most at risk of being eliminated from sale in the U.S. Polestar, which is owned by Geely, will no longer be able to sell new vehicles in the U.S. starting in 2027 due to the connected-car rules issued by the Commerce Department. The four other brands have not indicated they are considering pulling out of the market. Meanwhile, Murphy said he expects demand for gas-electric hybrids to surge over the next four years, eventually accounting for 34% of the market by 2030.

U.S. auto market predictions for 2030: More hybrids, no Chinese entrants
North America
CNBC Finance

Children's clothing retailer Carter's is rebranding to appeal to a new generation of parents

Children's clothing brand Carter's is undergoing a revamp to better align with the new generation of parents as its namesake company tries to recover from sluggish performance in recent years. The rebrand, announced Tuesday, includes a new logo and marketing campaign that Chief Marketing Officer Sarah Crockett told CNBC aims to keep the 161-year-old company relevant with its core customer. "We recognize that the market difference of our parents in the communities that we're serving is significant," Crockett said. "We had an opportunity to really tap into the values that parents are bringing into the household." Carter's largest brands include its namesake banner and OshKosh B'gosh, which are sold in standalone stores around the U.S. and in retailers including Walmart, Target and Amazon. The rebrand comes as the overall company has shrunk its store footprint and laid off some employees over the past year to try to reposition itself for growth, especially as the market for baby and kids clothing has grown more competitive. Wall Street has taken note of the company's issues. Over the past three years, Carter's stock has plunged more than 50%, bringing its market cap to around $1 billion. For the full 2025 fiscal year, Carter's reported adjusted net income of $126.1 million, down sharply from $210.7 million the year before. Last year, then-CEO Douglas Palladini said elevated product costs, higher tariffs and additional investments "weighed meaningfully" on the company's profitability. Last October, Palladini said Carter's was eliminating 15% of its corporate workforce and shuttering 150 North American stores as leases expired in an effort to "rightsize" the company. Since then, Carter's has started to show more bright spots. And the rebrand aims in part to capitalize on the momentum. In the first quarter of 2026, the company reported a 10.5% increase in U.S. comparable sales and an 8.1% jump in net sales. Shortly before it reported those results in May, Carter's announced it was hiring Sharon Price John, formerly the CEO of Build-A-Bear Workshop, to lead the company as it tried to regain strength. In June, Wells Fargo analysts upgraded Carter's from underweight to hold, saying that while the retailer's performance "isn't perfect," the changes the company was instituting were "driving fundamental improvements." Price John told CNBC the struggles Carter's went through before she joined the company were par for the course and a "natural evolution." "Like any company at our scale, you're going to have a pretty standard process of evolving your retail footprint, and in many ways that's just exactly what the company's doing, which is the right thing to do," she said.

Children's clothing retailer Carter's is rebranding to appeal to a new generation of parents
North America
CNBC Finance

GM plans U.S. battery development as Trump's DOT attacks Ford for China ties

DETROIT — General Motors is in the early stages of developing next-generation battery cells that the company believes can reduce U.S. dependence on China, while boosting domestically sourced materials. "We're developing a supply chain such that, two years from now, three years from now, it will be domestic," Kurt Kelty, GM vice president of battery and sustainability, told CNBC during an exclusive interview. "That's what we're aiming for — when we get into market, we've got a domestic source for that." Kelty was referring mainly to battery cells that the automaker expects to use in energy storage systems, or ESS, which are stationary devices for homes and businesses, including data centers. But the company plans to similarly prioritize domestic battery cell production for its future all-electric vehicles, a spokesperson reaffirmed to CNBC. Kelty's comments came days before GM's crosstown rival Ford Motor fielded criticism by the Trump administration for its ties to Chinese companies, including for domestic battery cell production. For ESS, GM has partnered with Denver-based startup Peak Energy to develop sodium-ion battery cells. The idea is to lower the need for materials that China dominates — such as lithium and ferrous sulfate, a byproduct of titanium production — and instead, use domestic-made batteries utilizing more prevalent materials in the U.S., such as sodium from soda ash. GM is working on a variety of battery chemistries for different applications of ESS as well as its EVs. Much like baking, each ingredient and the amount put into a battery cell can change the outcome of the product. In the case of battery cells, that can mean differences in performance, cost and stability. GM expects to launch commercial production of sodium-ion battery cells with Peak around 2029. In the meantime, it's producing other chemistries for ESS and EVs that use undisclosed amounts of materials from China. Most battery cells currently rely on raw materials from China. The International Energy Agency reports the country produces about 85% of the world's EV battery cathode active material and more than 90% of anode active material, leading to an 80% control of battery production. For example, China largely controls the sourcing and production of lithium iron phosphate, or LFP, batteries through its supply chains. GM currently manufactures LFP cells with its partner LG Energy Solution in the U.S. for ESS, while Ford has licensed technology from China's CATL for LFP battery cells for its EVs and ESS plans. "It's a really good story, because you've got the resources [in the U.S.] that you can keep it totally domestic," Kelty said. "It's going to take some time to build this industry up, but the potential for sodium-ion is just much greater than LFP." The Trump administration has placed particular focus on building up the U.S. battery supply chain and reducing its reliance on China. And, earlier this week, Transportation Secretary Sean Duffy expressed "profound concern" over Ford's China ties, specifically citing the CATL licensing. That's despite Ford being the top-producing automaker of vehicles in the U.S.

GM plans U.S. battery development as Trump's DOT attacks Ford for China ties
Asia
The Economic Times

FIIs, MFs raise stakes in 10 stocks; shares gain up to 40% in 3 months

Large institutional investors often set the tone for the broader market, backed by extensive research. When both foreign institutional investors (FIIs) and mutual funds (MFs) increase their exposure to the same stocks, it is often viewed as a sign of confidence in their growth prospects. ETMarkets analysis shows that FIIs and mutual funds increased their holdings in 94 stocks common to both portfolios within the Nifty 500 index in the June 2026 quarter, compared with the previous March 2026 quarter. This increased institutional interest has been followed by share price gains of 15%-40% in 8 of these stocks in less than three months following the end of the June quarter. Here's a look at these stocks and the increasing institutional interest behind them. (Data Source: ACE Equity). Welspun Living gained 41% in less than three months, rising from Rs 159 in July 2026 to Rs 225 as of the latest available price. During the June 2026 quarter, FII holding increased to 5.21% from 4.99%, while mutual fund holding rose to 5.26% from 4.84%. Lenskart Solutions gained 32% in less than three months, climbing from Rs 515 in July 2026 to Rs 680. FII holding rose sharply to 12.76% in the June 2026 quarter from 4.26%, while mutual fund holding increased to 12.20% from 6.43%. Maharashtra Seamless gained 20% in less than three months, rising from Rs 598 in July 2026 to Rs 715. FII holding edged up to 9.72% in the June 2026 quarter from 9.59%, while mutual fund holding increased to 3.09% from 2.56%. Dr. Lal PathLabs gained 19% in less than three months, climbing from Rs 1,647 in July 2026 to Rs 1,952. FII holding increased marginally to 17.35% in the June 2026 quarter from 17.18%, while mutual fund holding rose to 18.79% from 18.62%. Neuland Laboratories gained 18% in less than three months, rising from Rs 18,630 in July 2026 to Rs 21,904. FII holding increased to 21.08% in the June 2026 quarter from 20.46%, while mutual fund holding rose to 12.66% from 11.35%. Acme Solar Holdings gained 16% in less than three months, climbing from Rs 381 in July 2026 to Rs 442. FII holding increased to 4.39% in the June 2026 quarter from 3.60%, while mutual fund holding rose to 16.20% from 5.35%. Radico Khaitan gained 15% in less than three months, rising from Rs 3,946 in July 2026 to Rs 4,555. FII holding increased to 18.20% in the June 2026 quarter from 17.63%, while mutual fund holding rose to 22.05% from 21.33%.

FIIs, MFs raise stakes in 10 stocks; shares gain up to 40% in 3 months
Asia
The Economic Times

These 5 SIFs have delivered over 10% returns since their inception. Check inception date and performance

Around five SIFs have delivered over 10% returns since their respective inception. Here is a detailed breakup of their inception date, performance and risk profile, according to a report by SIF360. QSIF Active Asset Allocator Long Short Fund launched on April 24, 2026 has delivered 14.73% returns since its inception. It is a SIF by Quant Mutual Fund and is for a balanced risk profile. QSIF Equity Ex-Top 100 Long Short Fund launched on November 13, 2025 has delivered 14.59% returns since its inception. It is a SIF by Quant Mutual Fund and is for an aggressive risk profile. Altiva Equity Ex-Top 100 Long Short Fund launched on June 10, 2026 has delivered 12.46% returns since its inception. It is a SIF by Edelweiss Mutual Fund and is for an aggressive risk profile. Dyna Equity Ex-Top 100 Long Short Fund launched on June 29, 2026 has delivered 11.92% returns since its inception. It is a SIF by 360 One Mutual Fund and is for an aggressive risk profile. QSIF Equity Long Short Fund launched on October 8, 2025 has delivered 11.21% returns since its inception. It is a SIF by Quant Mutual Fund and is for an aggressive risk profile.

These 5 SIFs have delivered over 10% returns since their inception. Check inception date and performance
Europe
The Guardian

US treasury secretary hails government’s bond buyback a success

Scott Bessent testifies at a hearing on the state of the international financial system on Capitol Hill in Washington DC, on 15 September 2026. Photograph: Roberto Schmidt/AFP/Getty ImagesView image in fullscreenScott Bessent testifies at a hearing on the state of the international financial system on Capitol Hill in Washington DC, on 15 September 2026. Photograph: Roberto Schmidt/AFP/Getty ImagesUS economyUS treasury secretary hails government’s bond buyback a successOn Tuesday, the 10-year treasury rate yield reached a 19-year high at 5.041%, even as investors wary Iran war fallout Scott Bessent, the US treasury secretary, claimed the government’s massive buyback of US bonds was a success. The claim came as the 10-year treasury yield reached a 19-year high on Tuesday, increasing pressure on interest rates as the Federal Reserve weighs another hike to see off rising inflation. US treasury yields, or the rate of return that investors receive when a bond matures, underpins the rates of other loans such as mortgage, car payments and credit card debt. On Tuesday, the yield rate for the 10-year treasury reached 5.041%, the highest level since 2007. The treasury yield rises when demand for bonds goes down. Though the US bond market is typically seen as one of the safest investment vehicles, investors have been wary of the effect the war in Iran is having on energy prices. Brent crude, the global benchmark for oil prices, hit $108 a barrel last week for the first time since May. When bond yields started to rise in August, the US treasury announced it would triple its buyback of government debt, going from $2bn to $6bn in an effort to bring down bond yields. Though the yields have continued to rise since, Bessent told Congress on Tuesday the operations are “the two most successful treasury auctions that we’ve had in 20 years”. “Since President Trump has come in, (the US bond market) has been the best-performing bond market in the developing world,” Bessent said. Earlier in August, the US government also stepped in to prop up the Japanese yen, a move that was seen as an effort to protect the Japanese government, a major holder of US bonds. Bessent told Congress the effort was a way for the US to signal support for Japanese policies. The Trump administration has been doing its best to fight against growing concerns over high inflation as the war in Iran continues, which is expected to have a major effect on the upcoming midterm election. US inflation has soared over the summer, reaching a three-year high of 4.2% in May before coming down to 3.4% in July and August. Stubbornly high prices set up a tough decision for the US Federal Reserve, which will on Wednesday announce any changes to the interest rate. The central bank is largely expected to raise rates for the first time since July 2023, which could help mitigate prices, though Donald Trump has demanded rates to be lowered.

US treasury secretary hails government’s bond buyback a success
Europe
BBC Business

Ryanair boss Michael O'Leary apologises over 'high-fare rapists' remarks

Ryanair chief executive Michael O'Leary has said he is "truly sorry" for describing rival airlines as "high-fare rapists". He had previously refused to apologise to a rape crisis centre which criticised him for the comments. O'Leary had made the remark earlier this month while talking to journalists ahead of Ryanair's yearly meeting with shareholders. Following the comments, the Dublin Rape Crisis Centre (DRCC) wrote to him asking for an apology, in a letter seen by the BBC. O'Leary had originally said that some people were "desperate to get to Ryanair's low fares because they can't afford to fly with the high-fare rapists around Europe". He subsequently defended his choice of words when asked by a reporter from the Press Association whether the language was appropriate. "British Airways, Lufthansa, and everybody else's high fares, I'll happily offend them on a regular basis," he had added. Asked whether it would offend sexual assault victims, he said rape was "a terrible crime". In a video posted on Friday, O'Leary said that, over the last ten days, he had had "conversations with family and friends, both inside and outside Ryanair". "I have come to realise however that the word that I used so carelessly has caused considerable upset and offence to a wide number of people, especially to victims and survivors. "I want to apologise, sincerely and unreservedly, to those people, especially to the survivors." O'Leary described his choice of language as "careless", and said "it won't happen again".

Ryanair boss Michael O'Leary apologises over 'high-fare rapists' remarks