When President Donald Trump fired Erika McEntarfer, America’s labour statistician, he achieved something supposedly rare: he got economists to unite. In a survey by the University of Chicago’s Clark Centre for Global Markets, 100% of the discipline’s most prominent practitioners agreed that there was no evidence the Bureau of Labour Statistics (BLS) was biased. More
Picture a country where renewables are being rapidly rolled out and electric-vehicle sales are surging, and you will probably have in mind somewhere smug and northern European; a place with tall people, coalition governments and a yen for cycling holidays. Or perhaps the first thing that pops into your head is the sheer scale of China, which manufactures the bulk of such equipment and last year contributed more than half of the global increase in solar and wind installation. More
Amid all the trouble facing China—trade war, covid-19, a property slump—the country’s leaders have remained confident about the source of future economic growth. In their view, the country’s manifest destiny lies in high-tech manufacturing. Their “Made in China 2025” plan, released ten years ago, aimed to turn China into a leading factory “powerhouse” by mid-century. The government covets what it calls a “complete” industrial system, which will reduce China’s reliance on foreigners and raise their reliance on it. Xi Jinping, China’s ruler, wants to cultivate “new productive forces” by applying cutting-edge technology to emerging industries, and some traditional ones, too. More
Starbucks is pushing further into the health and wellness space with an expanded test of coconut water beverages in additional stores.
The coffee giant will be testing its Coco Matcha and Coco Cold Brew drinks in more than 400 stores across major cities including New York, Los Angeles and the greater Chicago area, along with select cities in the Midwest beginning Aug. 21.
The drinks layer matcha foam or cold brew foam over coconut water.
The drinks were first tested in New York City as a part of Starbucks’ “Starting Five” innovation program, testing out new ideas in five coffeehouses and seeking feedback from its baristas and customers before pushing ahead into additional stores.
Starbucks’ Coco Matcha and Coco Cold Brew drinks.
Courtesy: Starbucks
Starbucks will expand its test of coconut water beverages to hundreds of more stores, as it leans further into health and wellness.
Starting Thursday, the coffee giant will test its Coco Matcha and Coco Cold Brew drinks in more than 400 stores across major cities including New York, Los Angeles and the greater Chicago area. The drinks layer matcha foam or cold brew foam over coconut water.
Starbucks first tested the coconut beverages in New York City as a part of its “Starting Five” innovation program, in which it tests out new ideas in five coffeehouses and seeks feedback from its baristas and customers before pushing those ideas into additional stores. Starbucks did not share plans for further expansion beyond the regional test this month.
“Health and wellness at Starbucks isn’t a trend — it’s a long-standing commitment. Expanding the test of our Coco Matcha and Coco Cold Brew beverages is the next step to accelerate our health and wellness beverage innovation plan,” Dana Pellicano, senior vice president of Starbucks global product experience, said in a statement to CNBC. “We are incorporating real-time feedback with a focus on transparency, functionality, and evolving consumer needs.”
Cold foam has become one of the chain’s most popular modifiers, as it grew 23% year over year, CEO Brian Niccol told analysts on its most recent earnings call. Starbucks will launch protein cold foam late in the fourth quarter, part of its push to kick-start sales after a stretch of financial results that has disappointed Wall Street.
“Protein cold foam with no added sugar is an easy way to add 15 grams of protein to virtually any cold beverage. And customers can also add the flavor of their choice,” Niccol told analysts.
The expanded Starbucks test is part of a larger trend of top restaurant chains increasing beverage options, driven in part by younger consumers who crave customized cold drinks and healthier options.
The number of beverages offered by the top 500 chains has increased more than 9% over the past year, according to Technomic’s 2025 Away-From-Home Beverage Navigator Report released in July. Companies have leaned even more into cold drinks. Offerings such as specialty coffees and energy drinks have seen the most growth on menus over the past two years, as hot coffee and tea beverages on menus decline, the market researcher reported.
Starbucks is in the middle of its “Back to Starbucks” turnaround plans under Niccol, featuring more cafe renovations and menu changes. As the strategy takes shape, Starbucks executives have said the company has seen increases in satisfaction among younger consumers. Niccol told analysts customer value perceptions were near two-year highs in its most recent quarter, driven by gains among Gen Z and millennials, who make up over half its customer base.
Starbucks is betting that innovation, coupled with better experiences under its new “Green Apron Service” strategy, will help to boost business. While Starbucks also posted better-than-expected U.S. sales last quarter, they still fell 2% from the prior-year period.
Starbucks shares have fallen just more than 1% this year.
In addition to the New York, Los Angeles and Chicago areas, Starbucks will also test the coconut water drinks in select cities in the Midwest including Cedar Rapids, Iowa; St. Louis, Missouri; Springfield, Illinois; South Bend, Indiana; and Madison and Milwaukee, Wisconsin.
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Target’s incoming CEO Michael Fiddelke will take on a company with declining sales and fading customer loyalty.
In his first earnings call as incoming CEO, Fiddelke told investors he will move urgently to get the big-box retailer back to sales growth.
The new leader will have to win back investors’ confidence, too, after Target’s market value was more than cut in half since 2021.
People walk by a Target store in midtown Manhattan in New York City, March 21, 2025.
Kylie Cooper | Reuters
When Target’s new CEO Michael Fiddelke steps into the role in early February, he will inherit a company facing slumping sales, faltering customer loyalty and skeptical investors.
Its fiscal second-quarter results posted Wednesday illustrated the big-box retailer’s key challenges. Sales fell again from the year-ago period. Customer traffic declined. And shoppers spent less on average during their trips to Target’s website and stores than a year ago.
Fiddelke, announced Wednesday as Target CEO Brian Cornell’s successor, will soon lead the retailer’s comeback efforts and will have to show he can revitalize a company where he has spent about two decades. On an earnings call Wednesday, he acknowledged Target is falling short, but described his long run with the retailer as “an asset” and said he knows what Target can be at its best.
“I know we’re not realizing our full potential right now, and so I’m stepping into the role with a clear and urgent commitment to build new momentum in the business and get back to profitable growth,” he said.
Though Fiddelke is not yet in the role, he said Target isn’t waiting until his starting date in February to make changes.
He pledged to move with urgency to get the company back to sales growth. And he laid out his top three priorities, saying he would focus on winning back Target’s reputation as a strong merchant, enhancing the customer experience at stores and using technology to improve its business.
Target’s Chief Operating Officer Michael Fiddelke will take over as CEO from Brian Cornell.
Courtesy of Target
On Wednesday, Target said it had fresh evidence that its turnaround efforts are already bearing fruit. The company’s sales improved from the first quarter to the the second quarter, Fiddelke said, even though they were negative year over year. Sales trends in all six of Target’s key merchandise categories improved from the previous quarter, he said. And the retailer got better at fighting out-of-stocks, with the best on-shelf availability of items that it has had in years, he said.
It appears it will take more change to appease Wall Street, though. The second-quarter results extended a rocky several years for Target, which has tested the faith of many investors. Target’s market value has fallen from a high of $129 billion in 2021 to about $45 billion on Wednesday.
The 49-year-old Fiddelke rose through the Target ranks after starting as an intern. He has held positions across merchandising, finance, operations and human resources, including a recent stint as chief financial officer and his current role of chief operating officer. He also got tapped to lead the Enterprise Acceleration Office, a new effort that Target announced in May to kickstart its turnaround.
Yet Targets decision to hire the insider Fiddelke, instead of an external candidate, got a chilly reception. Investors responded to the pick with a stock selloff on Wednesday.
Shares fell more than 6% on Wednesday, bringing its losses so far this calendar year to about 27%. That trails well behind the more than 8% gains of the S&P 500 during the same period.
Wall Street had favored an outsider for the job, according to a June survey of 51 investors by Mizuho Securities, an equity research firm. About 96% of investors polled favored an external hire for Target’s next CEO, it found.
Manny Chirico, the former CEO of Calvin Klein and Tommy Hilfiger parent PVH, said investors were hungry for a bigger change.
“I think the market is questioning whether the internal candidate, with Brian [Cornell] staying on as executive chair, is that a bold enough move going forward?” he said in an interview Wednesday on CNBC’s “Squawk Box.”
From ‘top of the world’ to stagnant sales
One of Fiddelke’s first major challenges will be convincing investors and shoppers that Target can recapture the magic that turned it into a company that other retailers emulated and poached for talent.
Customers and former employees told CNBC the retailer had lost some of its best-known traits, including its clean and well-stocked stores, friendly staff and attention-grabbing merchandise. Some customers also decided to shop elsewhere in response as they protested its Pride collection, its subsequent move to pull some items from that line and its decision to roll back key diversity, equity and inclusion efforts
Target became known as “Tarzhay,” a French-sounding nickname, because of its strength in offering trendy and often exclusive clothing, home decor and more at lower prices. It turned its stores into a mall-like experience by adding Starbucks and small shops from Ulta Beauty.
The company’s ability to nudge shoppers to splurge sparked jokes and social media memes about walking into the store for one item, yet walking out with dozens.
“There was a time when Target was on top of the world,” said David Bellinger, retail analyst for Mizuho Securities, on Wednesday.
Target’s sales rose more than $15 billion in the fiscal year following the start of the Covid pandemic, fueled in part by stimulus dollars. Its shares soared to an all-time closing high of $266.39 in 2021. On Wednesday afternoon, its stock was trading more than 60% below that level, closing the day at $98.69.
Target’s annual sales have been roughly flat for the past four years. Target said it expects total sales to fall by a low-single-digit percentage this fiscal year.
Other factors hurt Target after the pandemic. Customers shelled out on dining, concerts and vacations and faced decades-high inflation. And the retail supply chain faced new tests, most recently in the form of President Donald Trump’s tariff hikes.
Target also lost ground with competitors. Chief Commercial Officer Rick Gomez said on Target’s earnings call in May that the retailer held or gained market share in 15 of its 35 merchandise divisions in the first quarter. Put another way, it lost ground in the majority of categories that it sells.
While Target faced problems out of its power, many of its issues were self-inflicted, Stacey Widlitz, president of SW Retail Advisors, told CNBC’s “Squawk Box” on Wednesday.
“It’s used to be clean and exciting and fresh brands,” she said. “That has just all changed in the past two years, and we’ve heard them talk about how they’re going to fix it, and we haven’t seen it.”
Bellinger said he has seen the changes on trips to his nearby Target store. Curbside pickup is quick and convenient. But inside of the store, he said a lot of merchandise is locked up to prevent theft, customers wait in long lines to check out and the cashier area is short-staffed.
“It’s just not an easy shopping experience,” he said.
In one of the new challenges Fiddelke will have to face, Target and Ulta next August will end their partnership, which had helped to drive beauty sales for Target.
Wooing back customers and Wall Street
Even before the CEO announcement, Target touted its plan to get back to its Tarzhay image. Its leaders have pointed to signs that strategy is working.
Target’s limited-time collection with Kate Spade, which launched in mid-April and included colorful dresses, accessories and more, was its strongest designer partnership in a decade.
Gomez described its new line of Champion activewear and sporting goods, which debuted this month, as “really the epitome of Tarzhay.”
The work to make merchandise more appealing will continue, Fiddelke said Wednesday. For example, he said it’s overhauling its hardlines category, which includes items like TVs, laptops, toys and trading cards.
Target also wants to turn around weaker sales in its home goods category. Its new Disney and Marvel-themed bedding and decor in its kids’ home line, Pillowfort, and new colors, patterns and fabrics in Casaluna, its premium bedding line, have been popular, Fiddelke said.
“Now, what the team needs to do is say ‘Okay, we need to do more of that, more consistently, more frequently, across bigger parts of the business,'” he said.
It plans to make changes next year to Threshold, its largest home goods brand, he said.
Beyond fixing its brands and launching new merchandise, Fiddelke’s ability to turn around the company may hinge on one critical task: restoring the identity of a retailer that loyal customers knew and loved.
“If Target went away tomorrow, you’d have a lot of disappointed consumers, millions of consumers,” Bellinger said. “There is a true core customer who loves Target, and there’s a ton of upside here, if they can figure it out.” More
The meeting summary depicted a divergence of opinion among the central bankers, whose vote to hold their key rate steady came despite objections from two Fed governors who argued in favor of cutting.
“Participants generally pointed to risks to both sides of the Committee’s dual mandate, emphasizing upside risk to inflation and downside risk to employment,” the minutes noted.
U.S. Federal Reserve Chair Jerome Powell speaks during a press conference following the issuance of the Federal Open Market Committee’s statement on interest rate policy in Washington, D.C., U.S., July 30, 2025.
Jonathan Ernst | Reuters
Federal Reserve officials worried at their July meeting about the state of the labor market and inflation, though most agreed that it was too soon to lower interest rates, minutes released Wednesday showed. The meeting summary depicted a divergence of opinion among the central bankers, whose vote to hold their key rate steady came despite objections from two Fed governors who argued in favor of cutting.
Policymakers noted rising threats to the economy that would warrant monitoring, though they largely agreed that their current stance was the appropriate way to go.
“Participants generally pointed to risks to both sides of the Committee’s dual mandate, emphasizing upside risk to inflation and downside risk to employment,” the minutes noted. While “a majority of participants judged the upside risk to inflation as the greater of these two risks” a couple saw “downside risk to employment the more salient risk.”
Governors Christopher Waller and Michelle Bowman voted against the decision to hold rates steady, preferring instead that the Federal Open Market Committee start lowering its key rate. The fed funds rate, which sets what banks charge each other for overnight lending but is used as a benchmark for other consumer rates, has been targeted between 4.25%-4.5% since December.
This was the first time that multiple governors voted against a rate decision in more than 30 years.
President Donald Trump’s tariffs were a central part of the discussion.
“Regarding upside risks to inflation, participants pointed to the uncertain effects of tariffs and the possibility of inflation expectations becoming unanchored,” the minutes said. The document also noted “considerable uncertainty remained about the timing, magnitude, and persistence of the effects of this year’s increase in tariffs.”
Coming against an increasingly heated political backdrop, the meeting saw officials express varying opinions on where they see the economy and policy headed. A staff assessment saw economic growth as “tepid” in the first half of the year though unemployment remained low.
Various participants expressed uncertainty over the impact that tariffs would have on inflation while others worried that the jobs picture was starting to show cracks and would need a policy boost to prevent further damage.
“Participants noted that the Committee might face difficult tradeoffs if elevated inflation proved to be more persistent while the outlook for the labor market weakened,” the summary said. Decisions on rates would depend on “each variable’s distance from the Committee’s goal and the potentially different time horizons over which those respective gaps would be anticipated to close.”
The meeting came just two days before a Bureau of Labor Statistics release showing that nonfarm payrolls growth had not only remained weak in July but also that June and May had seen much weaker growth than originally reported.
Even without that information in hand, Fed officials noted that “downside risk to employment had meaningfully increased with the slowing of the growth of economic activity and consumer spending, and that some incoming data pointed to a weakening of labor market conditions.”
The minutes were released two days ahead of the main event for the Fed this week: Chair Jerome Powell delivers his keynote address Friday morning during the central bank’s annual symposium at Jackson Hole, Wyoming.
Powell is expected to use the speech to indicate at least a short-term direction for the Fed regarding rates as well as a longer-term view on policy.
Trump has exerted fierce political pressure on the Fed to cut rates. The president has berated Powell as “stupid,” “a loser” and other invectives while also criticizing the board.
With the resignation earlier this month of Governor Adriana Kugler, Trump will get to appoint another of his own candidates to the seat. Powell’s term as chair expires in May 2026, though he can stay on as governor if he wishes through 2028. In the latest wrinkle, Trump has demanded the resignation of Governor Lisa Cook amid claims that she committed mortgage fraud regarding federal loans she received for properties in Georgia and Michigan.
In the case of the Powell seat, the White House has identified 11 potential candidates, including several current and past Fed officials along with economists and Wall Street strategists.
Correction: This article has been updated to correct the spelling of Adriana Kugler’s name.
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The U.K. should form a national stablecoin strategy to avoid falling behind the U.S., several crypto firms said.
In an open letter, representatives from Coinbase, Kraken and Copper said the U.K. “must act now to avoid being a rule-taker rather than a rule-maker in the digital asset era.”
While the entire stablecoin market is worth over $280 billion, tokens pegged to the British pound have a combined value of just £461,224 ($621,197), according to CoinGecko.
Stablecoin Tether and Circle’s USDC dominate the market.
Justin Tallis | Afp | Getty Images
The U.K. should establish a national stablecoin strategy to enable adoption of the tokens and avoid falling behind the U.S. on the disruptive new technology, several major crypto firms said Wednesday.
In an open letter addressed to Finance Minister Rachel Reeves, 30 crypto industry figures said that the U.K. “must act now to avoid being a rule-taker rather than a rule-maker in the digital asset era.”
“To ensure the UK is at the forefront, we believe a proactive, coordinated national strategy is needed – one that positions stablecoins not as a risk to be contained, but as a financial infrastructure to be responsibly embraced,” the letter said.
The U.K. Treasury department was not immediately available for comment when contacted by CNBC.
Stablecoins are a type of cryptocurrency that is pegged to an existing government-backed currency. There are several stablecoins in issuance, however the most commonly known are Tether’s USDT and Circle’s USDC — both of which are tied to the U.S. dollar.
The entire stablecoin market is worth over $280 billion, according to CoinGecko data. But for stablecoins pegged to the British pound, their combined market capitalization stands at just £461,224 ($621,197).
Crypto industry insiders have taken issue with Britain’s regulatory stance on stablecoins, saying it puts the nascent industry — and, in turn, the U.K.’s financial services landscape — at a disadvantage.
One aspect of the U.K.’s approach that worries the industry is the legal definition of stablecoins as “crypto-assets with reference to fiat currency.”
“This definition focuses on form rather than function,” they said in the open letter Wednesday. “This is akin to defining a cheque as paper with reference to currency, when both are essentially negotiable instruments backed by regulated issuers.”
A national stablecoin strategy would strengthen the U.K.’s role as a global financial center, generate new fee and foreign exchange revenue streams and support demand for gilts through new digital channels, the signatories to the letter said.
The letter was signed by industry executives from Coinbase, Kraken, Copper, Fireblocks, BitGo and VanEck.
Still, stablecoins are not without their concerns.
In 2022, a stablecoin named terra and its sister token luna both collapsed to $0 after a failure in the cryptocurrencies’ underlying technology. That also caused the value of USDT to temporarily fall below its $1 peg. USDT is currently worth $1.
In a research note published Wednesday, HSBC’s head of digital assets research, Daragh Maher, wrote that stablecoins could help bridge the gap between traditional finance and digital assets.
“They are basically the cash equivalent of digital assets,” Maher argued. “They are the reference or base currency for nearly every crypto asset. They can also be used for transferring money using blockchain pay rails rather than traditional banking methods.”
However, he added that regulatory issues remain the biggest hurdle to stablecoin adoption. “The key to capitalising on the potential of stablecoins lies in creating an appropriate regulatory environment for the sector,” said Maher. More
The “Trump Round” of trade negotiations, as Jamieson Greer, America’s trade representative, calls it, was meant to reassert American primacy. Peter Navarro, a longtime adviser to Donald Trump, even suggested that the president deserved a Nobel prize in economics for showing how the world’s biggest market can bend global commerce to its will. The White House’s bet is that dismantling the old order, once policed—however fitfully—by the World Trade Organisation, will usher in a new one with America at its centre. More
