Nike Tariff Turmoil, Tesla Troubles & China Industrial Profit Slump

Dear Money Master,

This week’s headlines reflect an economy grappling with uncertainty and transition. Consumer confidence fell sharply in June as recession fears rise and spending slows. Global trade tensions continue to ripple, with Trump’s tariffs slamming U.K. car production to a 76-year low and Nike projecting a $1 billion cost hit in 2026.

Meanwhile, China is doubling down on its Belt and Road ambitions through the AIIB, signaling a shift in global influence. In the corporate world, Apple reworks its App Store model to dodge EU fines, and Salesforce leans further into AI as it reshapes its workforce. Tesla’s manufacturing chief has been ousted, raising questions about internal turmoil, and earnings are a mixed bag—Nike struggles, McCormick adapts, and General Mills braces for a deeper profit dip. 🌍💼

In today’s Article, we examine China´s Industrial Profit Slump in May.

📰 Your Daily Financial Digest - June 27th, 2025

🌍 Economics:

1. Consumer Confidence Sinks on Job Worries and Recession Fears 😟
   The Consumer Confidence Index dropped over 5 points to 93.0 in June, with nearly 70% fearing a recession within the year. Many are delaying large purchases, fueling what experts call an “abundance of caution economy.” Read More

2. U.K. Car Production Hits Lowest Level Since 1949 🚗
   Production fell 32.8% in May to just under 50,000 units. Trump’s 25% tariff on UK auto exports to the U.S. is hitting hard, especially for brands like Aston Martin and Jaguar Land Rover. Read More

3. China Pushes AIIB to Fund Belt and Road Projects 🌏
   Chinese Premier Li Qiang urged stronger alignment between the Asian Infrastructure Investment Bank and Beijing’s global infrastructure strategies amid reduced U.S. backing for institutions like the IMF. Read More

💻 Technology:

1. Apple Revamps App Store Fees to Avoid $585M EU Fine 💸
   Apple introduced a layered fee system in Europe, including a new 5% charge on outside-App Store sales, aiming to comply with the Digital Markets Act and sidestep massive daily fines. Read More

2. Salesforce Says AI Now Handles Up to 50% of Its Workload 🤖
   CEO Marc Benioff highlighted AI-driven efficiency gains as Salesforce restructures around automation, following earlier layoffs of over 1,000 workers. Read More

3. Tesla Fires Manufacturing Chief Amid Sales Slump ⚡
   Elon Musk terminated VP Omead Afshar as sales falter in key markets. Afshar led global operations, including high-level sales and business development teams. Read More

💹Earnings:

1. Nike Faces $1 Billion Tariff Blow Amid Turnaround Efforts 👟
   Nike took a major financial hit in Q4 and expects tariffs to add $1 billion in costs for fiscal 2026. The company plans to cut reliance on China and raise prices to offset the impact. Read More

2. McCormick Tops Profit Estimates, Shrugs Off Tariff Pressures 🌶️
   The spice maker beat Q2 EPS expectations and saw global sales growth, with volume gains in all regions. CEO Brendan Foley said the company is well prepared to mitigate tariff costs. Read More

3. General Mills Warns of Deeper Profit Decline in 2026 🥣
   Despite beating Q4 EPS, General Mills’ stock slid as it forecast a 10–15% earnings drop in 2026. Weak retail and foodservice sales offset gains in pet and international segments. Read More

🔍 Article of the Day: China´s Industrial Profit Slump 📉🏭

China’s industrial sector just hit a major speed bump, profits are down sharply, and experts are sounding the alarm. But what does that really mean for the average person, and why should we care? In this easy-to-follow guide, we break down the latest data, explain what’s going on inside China’s factories, and show how global forces like trade tensions and price wars are shaping one of the world's most important economies. Whether you're new to finance or just want the facts without the jargon, this article makes sense of the slump.

To your financial empowerment, The Money Masters Team

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DISCLAIMER: This information is for educational purposes only and does not constitute financial advice. The publisher does not accept any responsibility for any losses incurred as a result of actions taken based on the information provided. Always conduct your own research or consult with a financial advisor before making any investment decisions.