By Nick Carey

LONDON (Reuters) – Ford (NYSE:F) said on Wednesday it would cut around 14% of its European workforce, blaming significant losses in recent years compounded by weak demand for electric vehicles, a lack of government support for the shift to EVs, and rising competition.

The U.S. company is the latest automaker after Nissan (OTC:NSANY), Stellantis (NYSE:STLA) and GM to cut costs as the industry struggles with growing competition from Chinese rivals in Europe, waning demand in China, and the challenges of shifting to EVs that remain too expensive for most consumers to buy.

Ford said the 4,000 job cuts would be primarily in Germany and the United Kingdom (TADAWUL:4280). Globally, the layoffs represent around 2.3% of Ford’s workforce of 174,000.

The measures will be a big blow for Germany in particular, Europe’s largest economy and biggest car maker where Volkswagen (ETR:VOWG_p) is threatening to close factories, slash wages and cut thousands of jobs to improve its ability to compete.

The country’s deepening political crisis is also adding uncertainty to companies grappling with growing trade tensions with China and the U.S. election victory of Donald Trump.

Ford said the European layoffs should take place by the end of 2027.

Europe’s automakers “face significant competitive and economic headwinds while also tackling a misalignment between CO2 regulations and consumer demand for electrified vehicles,” the company said in a statement.

Through September this year, Ford’s sales in Europe fell 17.9%, far outstripping an industrywide decline of 6.1%.

Ford also called on the German government in particular to provide more incentives and better charging infrastructure to help consumers transition to EVs.

Berlin ended EV subsidies in December last year. EV sales in Germany in the first nine months of this year were down 28.6%.

“What we lack in Europe and Germany is an unmistakable, clear policy agenda to advance e-mobility, such as public investments in charging infrastructure, meaningful incentives … and greater flexibility in meeting CO2 compliance targets,” Ford’s chief financial officer John Lawler wrote in a letter to the German government.

Ford has been undergoing a painful restructuring in Europe, announcing 3,800 job cuts in February 2023. Ford is also closing its Saarlouis plant in Germany next year, with further job cuts.

The European Union has slapped tariffs on Chinese-made EVs, saying they benefit from unfair subsidies from China’s government.

(Reuters) – Pfizer (NYSE:PFE) said on Wednesday it has named company veteran and oncology head Chris Boshoff as its chief of research and development.

The appointment comes at a time when Pfizer is facing criticism from activist investor Starboard for overspending on big acquisitions and failing to produce profitable new drugs from those deals or its internal research and development.

The New York-based drugmaker, under CEO Albert Bourla, poured money into new deals to bolster its business, which has been struggling with a sharp fall in sales of its COVID vaccine and antiviral Paxlovid from the pandemic highs.

Pfizer, which is now looking to strengthen its focus on cancer drugs, said Boshoff will take on the role of chief scientific officer starting Jan. 1 and oversee all functions of research & development across all therapeutic areas.

Most recently Pfizer’s chief oncology officer, Boshoff, also served as chief development officer for oncology and rare diseases, and as head of development in Japan across all therapeutic areas at Pfizer.

He has been with Pfizer for more than 11 years and has overseen the approval of 24 innovative medicines and biosimilars in more than 30 conditions.

Boshoff will replace Mikael Dolsten, a key figure behind the development of Pfizer’s COVID-19 vaccine, who stepped down from the role earlier this year after a more than 15-year career at the drugmaker.

Roger Dansey, who joined Pfizer through the 2023 $43-billion Seagen acquisition, will serve as the interim chief oncology officer, the company said.

The drugmaker added Johanna Bendell, who will join the company from Roche in 2025, will take on the role as oncology chief development officer.

(Reuters) -TJX Cos raised its annual profit forecast on Wednesday, benefiting from lower costs and strong demand from cash-strapped customers flocking to its off-price stores for products such as apparel and footwear.

The TJ Maxx and Marshalls parent has hit the right spot as customers continue to hunt for value and better deals even as inflationary pressures ease, driving steady traffic and sales at the company’s outlets.

Retailers including TJX (NYSE:TJX), Walmart (NYSE:WMT) and Amazon (NASDAQ:AMZN) have rolled out deals on everything from toys to household items earlier than usual this holiday shopping season as they are locked in a battle for penny-pinching shoppers.

“Customer transactions drove our comp sales increases, which tells us that our values and treasure hunt shopping experience are appealing to a wide range of customers,” TJX CEO Ernie Herrman said in a statement.

The Marshalls chain parent expects annual earnings per share of $4.15 to $4.17, compared with its prior forecast of $4.09 to $4.13.

It, however, maintained its annual comparable store sales forecast to be up 3%. TJX’s shares, up 28% this year, were down 1% in volatile premarket trading.

Ahead of the all-important holiday shopping season, the top two U.S. retailers have provided different pictures of the consumer.

Retail giant Walmart, which offers products at the lowest price possible, again raised its annual forecasts. Smaller rival Target (NYSE:TGT), where non-essentials account for a bigger share of revenue, signaled a muted holiday season.

TJX’s net sales rose 6% to $14.1 billion in the third quarter, beating analysts’ average estimate of $13.95 billion, according to data compiled by LSEG.

On an adjusted basis, the company reported a profit of $1.14 per share, compared with estimate of $1.09.

Investing.com — Shares in Williams-Sonoma (NYSE:WSM) rocketed more than 23% in premarket trading Wednesday after the company raised its annual outlook and reported better-than-expected Q3 results.

For the third quarter, the retailer reported earnings per share (EPS) of $1.96, beating analyst expectations of $1.77.

Revenue came in at $1.8 billion, just ahead of the consensus estimate of $1.79 billion.

Comparable sales declined 2.9% year-over-year, a notable improvement from the 14.6% drop a year ago and better than the projected decline of 3.36%.

Operating margin for the quarter rose to 17.8%, compared to 17% in the same period last year.

“We are pleased with the results of our third quarter, beating both top and bottom-line expectations,” said Laura Alber, President and CEO of Williams-Sonoma. “The quarter was driven by continued improvement in our sales trend, market-share gains, and strong profit.”

The highlight of the report was guidance. Williams-Sonoma hiked its 2024 outlook “to reflect higher net revenue trends and higher operating margin expectations.”

It now forecasts an annual net revenue decline of 1.5% to 3.0%, with comparable sales expected to decrease by 3.0% to 4.5% for the fiscal year.

Operating margin guidance for fiscal 2024 has also been adjusted upward. Including a 60-basis-point first-quarter adjustment, the operating margin is expected to be between 18.4% and 18.8%. Excluding this adjustment, the margin is projected to range from 17.8% to 18.2%.

Looking further ahead, the company maintains its long-term outlook, expecting mid-to-high single-digit annual net revenue growth with operating margins remaining in the mid-to-high teens.

By Foo Yun Chee

BRUSSELS (Reuters) – Alphabet (NASDAQ:GOOGL)’s Google should face additional EU investigations into its compliance with landmark European Union rules aimed at reining in Big Tech’s power, rival internet search engine DuckDuckGo said on Wednesday.

Under the EU’s Digital Markets Act adopted in 2022, Google and six other tech companies are required to make it easier for users to switch to rival services and banned from favouring their products on their platforms, among other obligations.

The world’s most popular internet search engine is already the target of two DMA investigations related to its app store Google Play rules and whether it discriminates against third-party services on Google search results.

Privacy-focused DuckDuckGo, which had a global market share of 0.54% in January this year, according to research company Statista, urged the European Commission to open three additional investigations into Google’s alleged non-compliance with other DMA requirements.

“The DMA has yet to achieve its full potential, the search market in the EU has seen little movement, and we believe launching formal investigations is the only way to force Google into compliance,” Kamyl Bazbaz, DuckDuckGo’s vice-president for communications, wrote in a blogpost.

Google has said it expects to continue its compliance solutions within the framework of the DMA, citing its continued efforts to improve contestability and fairness in digital markets.

Bazbaz said one investigation should target Google’s proposal to license anonymised search data to rivals directed at European users, saying the method was overbroad and of little use to competitors.

“Google is trying to avoid its legal obligation in the name of privacy, which is ironic coming from the Internet’s biggest tracker,” Bazbaz said.

He said Google should also be investigated for allegedly failing to comply with the DMA obligations to allow users to easily switch to rival search engines.

DMA breaches can cost companies as much as 10% of their global annual turnover.

(Reuters) -Pony AI said on Wednesday it was targeting a valuation of up to $4.55 billion in its upsized initial public offering in the United States, indicating strong demand for the Chinese robotaxi firm’s long-sought New York listing.

The Toyota-backed company is now aiming to raise as much as $260 million by offering 20 million American depositary shares (ADSs) priced between $11 and $13 each. It was earlier planning on selling 15 million ADSs at the same price range.

Guangzhou-based Pony is among a clutch of Chinese robotaxi firms tapping U.S. capital markets as the industry looks to scale its operations.

Two investors, including Chinese carmaker BAIC, had indicated interest in buying shares worth $74.9 million in the IPO. Certain investors had also agreed to purchase $153.4 million worth of shares in concurrent private placements.

Rival Chinese robotaxi firm WeRide went public on the Nasdaq last month after raising $440.5 million in its IPO and concurrent private placements.

“WeRide’s trading has given them (Pony AI) some confidence to move forward with this deal, particularly following Trump’s re-election,” Renaissance Capital senior strategist Matt Kennedy said.

“The prospect of a Trump presidency had been – and continues to be – a source of uncertainty for any large Chinese issuer in the U.S. For now, they see an opportunity to go public and they’re taking it.”

At $260 million, Pony’s New York listing would be the second-biggest U.S. IPO this year by a China-based company, after electric-vehicle maker Zeekr’s $441 million May IPO, LSEG data showed.

The company plans to list on the Nasdaq under the symbol “PONY”.

The offering is being underwritten by Goldman Sachs, BofA Securities, Deutsche Bank (ETR:DBKGn), Huatai Securities and Tiger Brokers.

(Reuters) – Delta Air Lines (NYSE:DAL) said on Wednesday it expects 2025 revenue to grow by a mid single-digit percentage as it strengthens its bet on premium travel, a major revenue driver for the carrier.

The airline added that affluent customers were thriving with leisure travel being the highest priority purchase for high-income households.

Premium travel has been on the rise since the pandemic, with consumers preferring to pay extra dollars for amenities such as more comfortable seats.

Premium seating, which previously depended heavily on corporate bookings, is now seeing increased interest from individual travelers.

Delta Air said it is targeting profit per share to increase 10% in the next three to five years, and expects operating margins to be in the mid-teens percentage.

The Atlanta-based company expects its high-margin premium offerings to outpace its main cabin by 2027.

That opens up avenues for the carrier to grow revenue through non-ticket sources such as airline-branded credit card fees, checked bags and extra legroom.

Delta also forecast 2025 capacity growth between 3% and 4%. The carrier’s shares fell nearly 1% before the bell suggesting investor worries about effects of excess capacity on air fares.

An excess supply of airline seats in the U.S. market during the summer travel season had forced carriers to discount fares to fill their planes, hurting their earnings.

However, measures taken by airlines to moderate capacity growth have since aided pricing power.

Delta Air’s investor day is scheduled on Wednesday where it is expected to provide further details on its long-term financial targets.

Investing.com — Target Corporation (NYSE:TGT) shares tumbled more than 21% premarket Wednesday after the retailer reported third-quarter earnings that fell well short of analyst expectations and provided disappointing guidance for the full year.

Target posted adjusted earnings per share of $1.85 for the third quarter, missing the analyst consensus of $2.30 by a wide margin. Revenue came in at $25.67 billion, slightly below estimates of $25.87 billion. Comparable sales inched up just 0.3% YoY, driven by a 2.4% increase in traffic but offset by lower average transaction amounts.

The company’s full-year earnings guidance also disappointed investors. Target now expects fiscal 2025 EPS of $8.30-$8.90, well below the $9.52 consensus estimate.

“We saw several strengths across the business, including a 2.4% increase in traffic, nearly 11% growth in the digital channel, and continued growth in beauty and frequency categories,” said Brian Cornell, CEO of Target. “At the same time, we encountered some unique challenges and cost pressures that impacted our bottom-line performance.”

Cornell described the operating environment in the third quarter as volatile.

The retailer’s gross margin rate declined 0.2 percentage points YoY to 27.2%, while its operating margin fell to 4.6% from 5.2% last year. Target cited higher digital fulfillment and supply chain costs due to managing higher inventory levels and new facilities coming online.

For the fourth quarter, Target projects approximately flat comparable sales and adjusted EPS of $1.85-$2.45.

Despite the weak results, Cornell expressed confidence in the company’s holiday season preparations and long-term prospects, stating, “We remain confident in the underlying strength and fundamentals of our business, and our ability to deliver on our longer-term financial goals.”

Investing.com — The recent nominations by President-elect Donald Trump, including Matt Gaetz and RFK Jr., are signaling what could be “years of chaos,” according to a note from Piper Sandler on Wednesday.

The firm’s analysts believe these appointments reflect Trump’s willingness to push congressional Republicans into difficult and potentially politically damaging positions, a strategy that could lead to significant market volatility.

Piper Sandler described the nominations as evidence of Trump’s readiness to “make congressional Republicans walk the plank.”

The firm added that these decisions signal “public policy that often won’t be friendly to financial markets.”

They note that RFK Jr.’s potential role at Health and Human Services (HHS) has already sent drug and biotech stocks into decline. However, Piper Sandler believes his confirmation is “unlikely.”

The report highlights that Trump’s controversial appointments could divide Republicans, forcing them to choose between aligning with Trump’s base or appealing to moderate voters.

The analysts said GOP senators like Susan Collins (ME) and Lisa Murkowski (AK) have already expressed reservations about some nominees.

Other Republicans, such as Thom Tillis (NC) and Bill Cassidy (LA), face re-election pressures that may influence their decisions.

The potential political fallout could extend into the 2026 midterm elections, said Pipe

Investing.com — Bernstein analysts believe Apple (NASDAQ:AAPL) stock could climb to as high as $290 per share in their bull case scenario.

The investment firm views Apple “as a quality compounder, with mid-single digit revenue growth, improving margins, disciplined capital return, and double-digit earnings per share (EPS) growth.”

“Given its negative cash conversion cycle, the stock is less expensive than it appears,” analysts led by Toni Sacconaghi added. “Investors have fared well by maintaining AAPL as a core holding, and adding to positions on pullbacks.”

Bernstein highlights Apple’s unique position in the market with over 2.3 billion devices and nearly one billion “unique, demographically attractive users.”

Moreover, Sacconaghi and his team see the iPhone maker as a beneficiary of AI advancements in two major ways.

Firstly, an accelerated replacement cycle for Apple products is anticipated, likely around the fiscal year 2026. Secondly, Bernstein points out increased revenue opportunities for Apple, driven by the distribution and integration of large language models (LLMs) and third-party applications.

“Encouragingly, given its position as a channel/platform, Apple’s capex has remained low. A key question is whether AI could structurally alter iPhone’s replacement cycle,” analysts note.

They also observed that Apple stock has a distinct seasonal trading pattern, and while the iPhone 16 cycle might be tepid and could disappoint, the firm advises investors to buy the stock if it drops to $200 or below, particularly during the February to April timeframe.

Bernstein’s bull case for the stock implies Apple reaching $9 in EPS by the fiscal year 2026, which could value the stock at $290 per share.

On the other hand, the firm also acknowledged existential risks for the company such as a shift in hardware platforms, a tariff war or political escalation with China, or the emergence of a super app, while expressing less concern about potential remedies from the DOJ’s antitrust case against Google (NASDAQ:GOOGL).