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    Macy’s turnaround starts to take shape, but ailing stores weigh on quarterly results

    Macy’s beat Wall Street’s earnings expectations but fell short on revenue as CEO Tony Spring works through his plan to revitalize the business.
    The company’s so-called First 50 locations – the stores that Macy’s is devoting more resources to as part of its turnaround plan – outperformed the overall company.
    In December, activist investor Barington Capital revealed it’s taken a stake in Macy’s and wants the department store to cut costs and consider monetizing its real estate portfolio.

    Macy’s flagship store in Herald Square in New York, Dec. 23, 2021.
    Scott Mlyn | CNBC

    Macy’s delivered another quarter of mixed results on Thursday as investors wait and see how quickly CEO Tony Spring can pull off a turnaround of the business with yet another activist investor looking to take the chain private.
    Across the business, which includes the Macy’s banner, Bloomingdale’s and Blue Mercury, comparable sales during the all-important holiday quarter were down 1.1%. But comparable sales across its owned and licensed businesses, plus its online marketplace, were up 0.2%, which is the highest the metric has been since the first quarter of 2022. 

    Plus, the so-called First 50 locations – the stores that Macy’s is devoting more resources to as part of its turnaround plan – saw comparable sales up 0.8%, marking the fourth quarter in a row the metric has been positive. 
    The two bright spots in an otherwise worse-than-expected set of results suggest Macy’s turnaround is showing some signs of life – it just might take a bit longer than expected. 
    For fiscal 2025, Macy’s is expecting adjusted earnings per share of $2.05 to $2.25 and sales of between $21 billion and $21.4 billion, lower than Wall Street expectations of $2.31 per share and $21.8 billion, according to LSEG.
    Macy’s shares were down more than 4% in premarket trading.
    Here’s how the department store performed during its fiscal fourth quarter, compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

    Earnings per share: $1.80 adjusted vs. $1.53 expected
    Revenue: $7.77 billion vs. $7.87 billion expected

    The company’s reported net income for the three-month period that ended Feb. 1 was $342 million, or $1.21 per share, compared with a loss of $128 million, or a loss of 47 cents per share, a year earlier. Excluding one-time items including impairments and settlement and restructuring charges, Macy’s reported earnings of $507 million, or $1.80 per share. 
    Sales dropped to $7.77 billion, down about 4% from $8.12 billion a year earlier. Like other retailers, Macy’s benefited from an extra selling week in the year-ago period, which has skewed comparisons. 
    Macy’s mixed results come just over a year into CEO Spring’s tenure as the legacy department store’s chief executive. While Bloomingdale’s and Blue Mercury saw another quarter of positive comparable sales, growing 4.8% and 6.2%, respectively, Macy’s namesake banner continues to be the company’s laggard with comps down 1.9%. 
    To address long-standing issues at the legacy banner, Spring has implemented an aggressive store closure plan that includes shuttering 150 stores and a strategy to fix its better-performing locations. As Macy’s and other department stores have shrunk over the years, it’s faced criticism for neglecting its stores, not having enough staff and falling behind on the retail essentials that are necessary to win in any environment. 
    Spring has started to address those issues by investing in 50 locations and providing better staffing, merchandising and visual presentation of the company’s varied assortment. So far, the plan appears to be working. Those locations have performed better than the bulk of the chain and the company plans to expand the strategy beyond those 50 stores.
    Still, Macy’s will have about 350 namesake locations left over after it finishes closing stores, and it will take time – and capital – to extend its strategy to the bulk of the chain. Whether or not investors have the patience to see Macy’s strategy play out remains to be seen. 
    In December, activist investor Barington Capital revealed it has a position in Macy’s and wants the company to cut spending, explore selling its luxury brands and take a hard look at its real estate portfolio. It’s the fourth activist push at the department store in the last decade.
    Like the activists that had come right before it, Arkhouse and Brigade, many suspect that Barington is mainly after Macy’s lucrative real estate portfolio and is more interested in juicing it for profit than doing the work necessary to revitalize the chain. Still, Macy’s must act in the interest of shareholders and if it’s not doing enough to return value quickly, an activist could eventually win out.
    Macy’s on Thursday announced its intent to resume share buybacks under its remaining $1.4 billion share repurchase authorization, “market conditions pending.” 
    “Building on our momentum, we continue to elevate the customer experience, deliver operational excellence and make prudent capital investments,” Adrian Mitchell, Macy’s chief operating officer and chief financial officer, said in a statement. “We remain committed to generating healthy free cash flow and returning capital to shareholders through share buybacks and predictable quarterly dividends.” 

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    Aid cannot make poor countries rich

    The capital of Malawi, one of the world’s poorest countries, runs on aid. A city built in the 1970s by the World Bank, Lilongwe’s straight streets are filled with charities, development agencies and government offices. Informal villages house cooks and cleaners for foreign officials; the entrance to each is marked with the flag of its national sponsor. Over the past five decades, policymakers have reached a division of labour: Britain funds schools, Japan backs energy projects, Europe supports agriculture and Ireland nurtures a cottage industry of justice activists. In the health ministry, maintained with Chinese money, doors are labelled by donor, not department. Many read “USAID”. More

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    It is not the economic impact of tariffs that is most worrying

    Canada’s business press remained sanguine. Belligerent statements by the American president, one Toronto-based newspaper wrote, were mere campaign rhetoric; he would ultimately decide against tariffs that might “arouse resentment in Canada”. Such confidence turned out to be gravely misplaced. In 1930 Herbert Hoover signed into law the infamous Smoot-Hawley tariffs, named after their congressional sponsors. The average levy on American imports increased from 40% in 1929 to 60% by 1932, and the global trade system unravelled. More

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    China has more room to act on fiscal policy amid global uncertainties, finance minister says

    China has more room to act on fiscal policy amid domestic and external uncertainties, Finance Minister Lan Fo’an told reporters on Thursday.
    China on Wednesday announced it was raising its on-budget deficit to 4% of the country’s gross domestic product — the highest since at least 2010.
    “China has delivered a pro-growth message here at the [National People’s Congress], in line with expectations,” said Aaron Costello, head of Asia at Cambridge Associates.

    China’s Minister of Finance Lan Fo’an speaks during a press conference in Beijing on Nov. 8, 2024. 
    Adek Berry | Afp | Getty Images

    BEIJING — China has more room to act on fiscal policy amid domestic and external uncertainties, Finance Minister Lan Fo’an told reporters on Thursday.
    He was responding to a question during China’s “Two Sessions” annual parliamentary meeting about the country’s plans for proactive fiscal policy this year. The gathering this year comes as U.S. President Donald Trump has raised tariffs on Chinese goods for the second time in roughly a month. Beijing has responded to Washington’s latest levies with targeted duties and restrictions on U.S. companies.

    China on Wednesday announced it was raising its on-budget deficit to 4% of the country’s gross domestic product — the highest since at least 2010.
    The government also plans to issue 1.3 trillion yuan ($178.9 billion) in ultra-long-term special treasury bonds in 2025, marking a 300 billion yuan hike from last year. The increased amount is primarily set to support the consumer trade-in program.
    China said it aims to issue 4.4 trillion yuan of local government special-purpose bonds this year — or a 500 billion yuan increase from last year — to help ease the financial strains of local authorities.

    China has made spurring consumption its top priority for the year ahead, according to a government work report shared Wednesday. Zheng Shanjie, head of the National Development and Reform Commission, the top economic planner, on Thursday said that a more detailed plan for boosting consumption would be released soon.
    The country on Wednesday also said it would target a GDP increase of around 5% this year, while lowering its inflation target to 2% — the lowest in around 20 years.

    “China has delivered a pro-growth message here at the [National People’s Congress], in line with expectations,” said Aaron Costello, head of Asia at Cambridge Associates. The NPC is part of the “Two Sessions” meeting.
    Costello noted that, beyond specific stimulus programs, the bigger issue facing China has been low business and consumer sentiment. He pointed to encouraging signals such as Chinese President Xi Jinping’s meeting with many tech entrepreneurs last month to encourage private business growth.

    Rising trade tensions

    Officials speaking on Wednesday and Thursday have emphasized that it will take hard work for China to reach its 5% target. China’s economy grew by 5% last year, but benefitted from strong exports that offset lackluster consumption and the drag from domestic real estate.
    When asked about U.S. trade tensions, Minister of Commerce Wang Wentao reiterated Beijing’s strong language on the trade tensions, but called for the two sides to meet soon for discussions.
    Other officials speaking Thursday did not name U.S. trade dealings explicitly, but a few made uncharacteristic public allusions to the White House’s growing restrictions on China. The U.S. has blacklisted several major Chinese tech companies and limited their access advanced semiconductors for training artificial intelligence models.
    “The more others pressure us, block us, it will only push us to innovate independently,” Zheng said in Mandarin, translated by CNBC. He spoke while talking up China’s exports of integrated circuits and robotic development.
    When laying out measures to support technological development, the head of China’s central bank, Pan Gongsheng, said that, while the country welcomed foreign investors, it “opposed the establishment of improper investment barriers.” More

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    China doubles down on AI and tech innovation as Trump ratchets up trade pressure

    The undercurrent of China’s annual parliamentary meetings this week is U.S. trade tensions — and how Chinese technology is offsetting that pressure.
    “Internationally … an increasingly complex and severe external environment may exert a greater impact on China in areas such as trade, science and technology,” Chinese Premier Li Qiang said in his annual report on government work.
    Among the top priorities for the year, Li said, is supporting “the extensive application of large-scale AI models.”

    A security guard watches during the opening session of the National People’s Congress (NPC) in the Great Hall of the People in Beijing on March 5, 2025. 
    Wang Zhao | Afp | Getty Images

    BEIJING — The undercurrent of China’s annual parliamentary meetings this week is U.S. trade tensions — and how Chinese technology is offsetting that pressure.
    The largely ceremonial gathering of delegates in Beijing this year came just as U.S. President Donald Trump addressed Congress and imposed new tariffs on Chinese goods. It’s a clear drag on exports, while Chinese companies have only faced tougher restrictions on accessing high-end semiconductors and other advanced tech.

    “Internationally … an increasingly complex and severe external environment may exert a greater impact on China in areas such as trade, science and technology,” Chinese Premier Li Qiang said in his annual report on government work at the opening ceremony of the National People’s Congress on Wednesday, according to an official English translation of the Chinese.
    It was an unusually grim assessment at least among the seven parliamentary meetings I have attended. But I also sensed a greater willingness to support the private sector than in the past — especially as it relates to tech innovation, such as with Chinese AI company DeepSeek.
    “We will promote the healthy and well-regulated development of the platform economy and give better play to its role in inspiring innovation, expanding consumption and stabilizing employment,” Li said in the work report.
    That marked the latest signal that Beijing now wants to support the private sector after previously taking a far more restrictive stance and imposing large fines on tech giants Alibaba and Tencent, often called “platform“ companies in China. Many companies and industries in China have historically been dominated by the state.

    DeepSeek’s recent rise demonstrated to many international investors — who had grown cautious on the slowing economy — how a Chinese company could compete with the U.S. on AI, regardless of White House sanctions.

    Beijing was quick to affirm the startup’s success. DeepSeek’s Liang Wenfeng attended a meeting with Premier Li in January, and a symposium with Chinese President Xi Jinping in February.

    AI to counter protectionism?

    While DeepSeek didn’t get a specific mention in the government work report, a member of the team that drafted the report named it — and applications such as Kuaishou’s Kling AI for video generation — while talking to the press on Wednesday about China’s rapid AI development.
    “Historically, technological progress is often an important force for breaking through barriers and protectionism,” Chen Changsheng, who is also deputy director of the State Council Research Office, said in Mandarin translated by CNBC.
    “We look forward to how under the current international backdrop, AI will become a positive energy to promote cooperation and multilateralism,” he said.

    HONG KONG, CHINA – JANUARY 28: In this photo illustration, the DeepSeek apps is seen on a phone in front of a flag of China on January 28, 2025 in Hong Kong, China.  
    Anthony Kwan | Getty Images News | Getty Images

    “Tech” got one more mention in this year’s report versus last year, and “reform” got 10 more mentions, according to the Chinese-language versions. Tech self-reliance also got its own sub-section in China’s latest annual work report, in contrast to a passing mention in 2024.

    A new law

    China’s legislature has been discussing a new law to support the private sector. Beijing has said it would be enacted as soon as possible after further discussions and revisions.
    This year, policy will likely be driven more from the bottom up, rather than the top down, said Ding Wenjie, investment strategist for global capital investment at China Asset Management Co., according to a CNBC translation of her Mandarin-language remarks.
    She expects growth in AI and leading tech to spur development of other industries, but cautioned that it will likely take companies more than just one or two quarters to see results.
    China’s parliamentary meetings officially wrap up early next week. More official comments on tech and the private sector law are expected to trickle out in coming days.
    Among the top priorities for the year ahead, Premier Li said, is supporting “the extensive application of large-scale AI models.” Beijing plans to increase funding for biomanufacturing, quantum technology, AI-linked robotics and 6G technology.

    The industry-specific goals come as China is trying to boost consumer spending, minimize the drag from real estate and navigate trade tensions with the U.S.
    China’s “policy focus is to accelerate AI adoption and autonomous driving, while make gradual progress in restructuring housing and [local government financing vehicle] debt,” Morgan Stanley’s chief China Economist Robin Xing and a team said in a note Wednesday. They noted that the “fiscal package came as expected: a [2 trillion yuan ($280 billion)] expansion with mild support on consumption.”
    Chinese official comments during this week’s meetings hint at a preference for open-source models.
    Chen on the work report drafting team warned against “excessive” use of private AI projects that could fragment the market, and instead called for “large-scale applications.”
    China will also work to increase computing capacity and develop “a system of open-source models,” the economic planning agency, called the National Development and Reform Commission, said in its plan for the year ahead. More

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    Trump grants automakers one-month exemption from tariffs

    The White House granted a one-month delay for tariffs on automakers whose cars comply with USMCA, which was negotiated during President Donald Trump’s first term.
    Automakers have urged Trump to waive 25% tariffs on Mexico and Canada on vehicles that comply with the United States-Mexico-Canada Agreement’s rules of origin.

    In an aerial view, brand new Subaru cars sit in a storage lot at Auto Warehouse Co. on March 4, 2025 in Richmond, California.
    Justin Sullivan | Getty Images

    The White House on Wednesday announced a one-month North American tariff exemption for automakers after President Donald Trump spoke a day earlier with heads of General Motors, Ford Motor and Stellantis.
    Automakers have urged Trump to waive 25% tariffs on Mexico and Canada on vehicles that comply with the United States-Mexico-Canada Agreement’s trade rules of origin.

    “Reciprocal tariffs will still go into effect on April 2, but at the request of the companies associated with USMCA, the president is giving them an exemption for one month so they are not at an economic disadvantage,” Press Secretary Karoline Leavitt said on behalf of Trump.
    The American Automotive Policy Council, a trade group representing the “Big 3” Detroit automakers, applauded Trump’s decision “recognizing that vehicles and parts that meet the high US and regional USMCA content requirements should be exempt from these tariffs.”
    Leavitt said the president is “open” to hearing requests from other industries seeking exemptions as well.
    Leavitt also confirmed the “Big 3” Detroit automakers requested the Tuesday call with Trump, who mentioned it during his address to Congress later in the day.
    Two sources on Wednesday confirmed to CNBC that GM CEO Mary Barra, Stellantis Chairman John Elkann, Ford CEO Jim Farley and Ford Chair Bill Ford participated in the call.

    The White House said it granted a one-month delay for tariffs on automakers whose cars comply with USMCA, which was negotiated under Trump’s first term in office.

    Stock chart icon

    GM, Ford and Stellantis stocks

    Shares of GM, Ford and Stellantis were notably up following the announcement. Stellantis closed Wednesday up 9.2%, followed by GM up 7.2% and Ford higher by 5.8%.
    It was not immediately clear whether just vehicles will be exempt, or if automotive parts would also be included.
    It’s also unclear how much if any input Tesla CEO Elon Musk had on the tariffs or the delay. After campaigning for Trump, Musk has been one of his closest advisors and a nearly constant presence by his side.
    The exemption allows for additional preparation and discussions between the White House and automotive industry on tariffs. It also more closely aligns with potential vehicle tariffs on imports from outside of North America.
    Trump previously said those tariffs would be confirmed on April 2, in a push for automakers to invest more in the U.S. for vehicle production.
    “We’re going to have growth in the auto industry like nobody’s ever seen,” Trump said Tuesday night before a joint session of Congress. “That’s a combination of the election win and tariffs.”
    Trump erroneously touted a “new” plant investment in Indiana for Honda Motor during his speech Tuesday night. The company operates a large assembly plant in the state, but its most recent major investments have been in Ohio.

    President Donald J Trump addresses a joint session of Congress as Vice President JD Vance and Speaker of the House Mike Johnson (R-LA) listen in the Capitol building’s House chamber on Tuesday, March 04, 2025 in Washington, DC. 
    Jabin Botsford | The Washington Post | Getty Images

    Honda on Wednesday thanked the president for acknowledging the company, but confirmed it “did not announce plans for a new plant in the U.S. at this time.”
    “We have invested over $3 billion in advanced vehicle manufacturing in America in just the past three years, with a cumulative total of more than $24.7 billion,” Honda said in an emailed statement. “We look forward to continuing to invest locally and build quality products in America, as Honda has been doing for the past 45 years.”
    The American Automotive Policy Council earlier this week argued that vehicles and parts that meet USMCA requirements should be exempt from the tariff increase.

    There was major concern among automotive executives and experts that prolonged tariffs would quickly eat into company profits and production plans.
    Executives with France-based auto supplier Forvia on Wednesday said the company and its customers, including automakers, have been planning different contingency plans for the tariffs. That has included working with customers to reach parts agreements since the 25% tariffs took effect Tuesday.
    “The whole supply chain cannot swallow 25%,” Forvia CEO Martin Fischer said during a media event. “Cars will get more expensive for consumers if tariffs continue for a long time.”
    S&P Global Mobility on Tuesday predicted roughly a third of vehicle production in North America could be cut by next week due to the 25% tariffs.
    The data and forecasting firm reports 25 automakers on average produce 63,900 light-duty passenger vehicles in North America per day. A majority of those, roughly 65%, are assembled in the U.S., followed by 27% in Mexico and 8% in Canada. More

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    Trump’s tariff turbulence is worse than anyone imagined

    Keeping abreast of Donald Trump’s utterances on tariffs, from actual announcements to vague threats, is a dizzying task. One day he is set on wrecking the integrated North American economy; the next he wants to appease carmakers that depend on it. When it comes to China, he veers between slapping ever-larger levies on its goods and hinting at a desire for a giant trade deal. As for other countries, he speaks ominously of big but so far unspecified tariffs that will soon kick in. More

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    California pauses home energy rebate program amid Trump funding freeze

    California paused an energy rebate program for consumers who make their homes more energy efficient, due to a federal funding freeze imposed by the Trump administration.
    The Home Energy Rebate program was created by the Inflation Reduction Act, which President Biden signed in 2022.
    The law offered consumers up to $8,000 of Home Efficiency Rebates and up to $14,000 of Home Electrification and Appliance Rebates.

    The U.S. Department of Energy on Feb. 14, 2025 in Washington, D.C.  
    Anna Moneymaker | Getty Images News | Getty Images

    California has paused rebate programs offering thousands of dollars to consumers who make their homes and appliances more energy efficient due to a Trump administration freeze on federal funding.
    While a handful of other states also recently halted their programs, California is the largest state to delay a rollout so far — putting $582 million earmarked for consumers and program administration at risk.

    California had issued its first rebate check to consumers in February, according to the state’s Energy Commission.
    “Many states were just getting started on their programs, and suddenly they’re tossed into turmoil,” said Lowell Ungar, director of federal policy at the American Council for an Energy-Efficient Economy.

    The programs in question, Home Energy Rebates, were created through the Inflation Reduction Act. President Biden signed it into law in 2022.
    The law allocated up to $8.8 billion of federal funds for states, territories and the District of Columbia to disburse to consumers in the form of rebates.
    Consumers were provided up to $8,000 of Home Efficiency Rebates and up to $14,000 of Home Electrification and Appliance Rebates, per federal law. Maximum amounts vary per household, depending on factors like income eligibility.

    The rebates aim to reduce the cost of home upgrades like installing insulation and heat pumps or buying efficient appliances like electric stoves — with an eye to also reducing consumers’ energy bills and cutting planet-warming carbon emissions.
    More from Personal Finance:Congress’ proposed cuts may jeopardize MedicaidCanada, Mexico tariffs create ‘ripple effects’ on consumer pricesSocial Security plans to cut about 7,000 workers
    All states except South Dakota had applied for the federal funds. The U.S. Department of Energy approved those applications, and states were in various phases of rollout by the end of the Biden administration.
    However, the Trump administration on Jan. 27 put a freeze on the disbursement of federal funds that conflict with the president’s agenda, including initiatives related to green energy and climate change.
    The fate of that freeze is up in the air as courts weigh legal challenges to the policy.
    The U.S. Department of Energy didn’t return a request from CNBC for comment.
    The California Energy Commission — which had launched an $80 million first phase of its home energy rebate program in the fall — paused its program on Feb. 25, according to a California Energy Commission website.
    The pause will remain in place “until the Trump Administration provides additional information on the funding,” Commission staff wrote in an e-mailed statement.
    California was approved for the second-largest tranche of funding for the energy rebate programs, behind only Texas. (The U.S. Energy Department awarded $689 million to Texas, according to an archived federal website.)
    The Texas State Energy Conservation Office didn’t return a request for comment on the status of its program.

    Since Jan. 31, California hasn’t been able to successfully draw down funds for administrative costs to run its rebate program, according to a California Energy Commission website. The U.S. Energy Department has also removed information about Home Energy Rebate programs from its website, the CEC said.
    Not all states have paused their programs, however.
    For example, officials in Maine and North Carolina recently confirmed to CNBC that funding through their rebate programs remains available — for now.
    The North Carolina Department of Environmental Quality is “closely watching any federal actions that may change the operations of the Energy Saver NC program,” a spokesperson said in an e-mailed statement.
    Different states may have “different risk tolerances” when it comes to administering these programs and issuing rebates when it’s unclear if they’ll eventually be reimbursed, Ungar said. More