Good morning. The White House considers imposing export restrictions on China. Hermès keeps its luxury crown, though its leather unit falls just short.And Tinder brings facial verification to the rest of the US. Listen to the day’s top stories.
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Trade tensions flare again. The Trump administration is weighing export curbs on China that would bar the purchase of a wide swath of critical software, a White House official said. The acknowledgment came after Reuters reported that the US was weighing Russia-style limits if Beijing proceeds with plans to restrict rare-earth exports. Volatility resurfaced on Wall Street as the report added to recent anxiety over trade.
In more trade news, the won rose after Finance Minister Koo Yun Cheolsaid South Korea and the US are focusing on structuring Seoul’s $350 billion investment pledge rather than pursuing a currency swap. The comments come ahead of Donald Trump’s visit to South Korea next week, where he’s set to hold separate bilateral talks with Lee Jae Myung and Xi Jinping that may shape trade ties for years.
Tesla posted third-quarter adjusted profit that fell short of estimates despite record electric-vehicle sales, as the industry faces pressure from shifting federal policies and rising costs. The company said future results will depend on the broader economy and its progress in scaling up autonomy and production of key models.
Oil climbed after the US announced sanctions on Rosneft and Lukoil. “Now is the time to stop the killing,” Treasury Secretary Scott Bessent said. EU leaders are expected to approve a 19th sanctions package against Russia on Thursday after Slovakia withdrew its objections.
Thailand’s Deputy Finance Minister Vorapak Tanyawong resigned amid allegations linking him to transnational scam operations. The former bank executive called the accusations “false and politically motivated” and said he plans to file a defamation complaint. The resignation came just a day after Prime Minister Anutin Charnvirakul requested a written response to the accusations.
Deep Dive: Still in Style
A Birkin handbag. Photographer: Nathan Laine/Bloomberg
Hermès just proved it’s still the crown jewel of luxury. The maker of the iconic Birkin and Kelly bags posted a solid quarterly sales jump, keeping its lead over rivals.
Yet, its famed leather goods unit—the company’s main profit engine—fell shy of loftier expectations, sending shares down as much as 5%. Revenue at the division rose 13.3%, slightly below the 13.8% analysts had expected.
The stumble comes after LVMH’s upbeat results last week reassured investors about luxury demand, as the owner of Louis Vuitton and Christian Dior unexpectedly returned to sales growth.
Still, there’s a silver lining: the all-important Asia region, including China, is showing signs of life. Kering, home to Gucci, also reported an uptick in sales in the area after rolling out fresh designs.
Crocs’ path as a Western company that’s survived China’s slowing economy and domestic rivals may offer lessons for other foreign retailers, Juliana Liu writes. The brand’s effort to promote individuality helps it to position itself as a beneficiary of “emotional spending” amongst Gen Z.
More security. Tinder will soon require all new users in the US to verify their identities through a biometric video face scan. The measure—already in place in California and seven countries including Australia and India—will roll out nationwide in the coming months.
