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Two toy companies, Learning Resources and Hand2Mind, have urged the Supreme Court to expedite their lawsuit challenging President Trump's tariffs, questioning his authority to impose them under the International Economic Emergency Powers Act. The tariffs, linked to a national emergency over illegal immigration and drug trafficking, are contested as unrelated to the stated crisis. While a US Court of International Trade panel ruled against Trump's authority, the tariffs remain active during an appeal at the Federal Circuit. The companies, having secured a limited victory in a district court, seek Supreme Court intervention before the court's summer recess, citing severe economic impacts, including a potential $660 billion annual tax hike and a 2% rise in the Consumer Price Index. The US average tariff rate has surged from 2.5% to 27%, the highest in over a century. Legal experts predict the Supreme Court will ultimately address the tariffs' legality, potentially under the "major questions doctrine" limiting executive actions without explicit Congressional approval. The Trump administration, referencing a successful Nixon-era tariff appeal, remains confident in its legal stance.
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The Federal Reserve's latest policy update reveals a cautious stance on interest rates, maintaining the benchmark range at 4.25%-4.5% for the fourth consecutive meeting since a December cut. The central bank's "dot plot" projects two rate cuts for 2025, unchanged from March, though a split among officials is evident, with seven now expecting no changes compared to four previously. Updated economic forecasts in the Summary of Economic Projections (SEP) raise concerns, predicting core inflation at 3.1%, unemployment at 4.5%, and GDP growth at just 1.4% for the year, signaling fears of stagflation. Fed Chair Jerome Powell noted the growing divide among members, attributing it to differing risk assessments on inflation persistence and labor market weakness during uncertain times. The Fed's approach remains tentative as it navigates policy unknowns, including the Trump administration's trade and tax proposals, while markets anticipate one to two cuts in 2025.
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China's 618 shopping festival, once a single-day event marking JD.com’s founding, concluded on June 18 after over a month of promotions starting May 13, involving major platforms like JD.com and Alibaba. Despite extended sales periods and deeper discounts, consumer spending remains subdued amid economic challenges including employment concerns, stagnant wages, and a property crisis. Retailers and the government have introduced subsidies to stimulate demand, contributing to a 6.4% retail sales growth in May, the highest since December 2023. However, year-round discounts have diminished the allure of such events, with many consumers like Xu Binqi and Eve Wang opting to buy only as needed rather than stockpiling during 618. While specific sales figures for this year are undisclosed, JD.com reported over 2.2 billion orders, and Alibaba highlighted 453 brands surpassing 100 million yuan in GMV. Analysts note that the prolonged festival helps sustain engagement but warn that pauses in subsidy programs could dampen June sales. Last year, 618 sales dropped 7% to 742.8 billion yuan ($103.31 billion), reflecting ongoing retail struggles. The evolving consumer mindset and economic pressures continue to challenge the effectiveness of standalone promotional events in driving significant growth.
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Robinhood Markets (HOOD) is making waves with its focus on cryptocurrency and robust growth metrics, as highlighted in a recent article on TheStreet. The company's CEO, Vlad Tenev, announced the upcoming "To Catch a Token" event on June 30 in France, marking Robinhood’s first international crypto-focused initiative with promises of groundbreaking reveals. Despite a slight dip in Q1 crypto revenue to $252 million, it still accounts for 43% of transaction revenue, showcasing its significance. May metrics were impressive, with platform assets reaching $255 billion (up 89% year-over-year) and funded customers growing to 25.9 million. Analysts are optimistic, with Mizuho and Goldman Sachs raising price targets to $80 and $82, respectively, driven by strong performance and growth potential in a $600 billion market. Additionally, Robinhood is enhancing its mobile app with tools for simulated options returns and advanced charting. Despite missing an S&P 500 inclusion, the company’s stock has surged over 250% in 2024, bolstered by strategic acquisitions like Bitstamp and a favorable crypto environment under President Trump’s policies. Robinhood continues to position itself as a fintech leader with innovative products and expanding market share.
