Some luxury brands burn unsold products to preserve exclusivity and avoid discounting.
By destroying excess inventory, these brands maintain scarcity and protect their high-end image from being diluted by sales or outlet distribution. This practice sparked controversy after brands like Burberry publicly admitted to doing it, prompting policy changes.
It’s a stark example of how perceived value often matters more than the product itself in the world of luxury.
Market Wrap
From Recovery to Reckoning? H1 Ends Strong, But Policy Risks Build
U.S.–Canada Trade Talks Resume:
Canada rescinded its proposed digital services tax over the weekend, leading to revived trade negotiations with the U.S. and setting a new target deadline of July 21.
Tariff Pause Nears Expiration (July 9):
The 90-day pause on certain tariffs is set to expire on July 9, raising the risk of renewed trade tensions in H2. Markets have been buoyed by the pause, but uncertainty is mounting as investors consider whether it will be renewed or replaced by fresh trade measures.
Supreme Court Limits Nationwide Injunctions:
In Trump v. CASA, the U.S. Supreme Court ruled 6–3 to prohibit federal judges from issuing nationwide injunctions restraining policy rollouts. The decision is expected to accelerate regional deregulation efforts, benefiting sectors like banking, technology, energy, and industrials, as compliance costs and regulatory delays are eased.
Build Back Better Progresses in Senate:
A slimmed-down version of the Build Back Better (BBB) Act cleared a key Senate finance subcommittee, reviving hopes for targeted stimulus in clean energy and middle-class tax relief. The bill now heads to the full Senate for debate, with final in the balance.
Bowman Pushes Bank M&A Reforms:
Fed Vice Chair for Supervision Michelle Bowman outlined plans to streamline bank merger approvals and update how the Fed rates banks—moves seen as paving the way for increased consolidation in the banking industry.
H1 Price Action:
The S&P recovered strongly from mid April lows (~5,158) to post an 11% Q2 gain and 5.5% YTD rise, closing at record highs on June 30. Meanwhile, international benchmarks outperformed, with MSCI EAFE up ~13.3% YTD and Japan’s Nikkei gaining 4–5% just in June. This reflects a global shift toward non-U.S. equities amid currency tailwinds and valuation rotations.
Oracle Corp. shares rose ~4% after the company announced multiple large cloud service agreements, including one deal with over $30 billion in potential revenue, boosting investor optimism about its enterprise growth.
Hewlett Packard Enterprise Co. shares surged ~11% after announcing their $14 billion merger with Juniper Networks cleared a key U.S. Department of Justice approval, removing a major regulatory hurdle.
Juniper Networks Inc. stock climbed ~8% as its planned merger with HPE advanced when U.S. antitrust regulators granted approval, clearing the way for the $14 billion deal.
Moderna Inc. shares rose after reporting positive results from a late‑stage trial of its experimental flu vaccine, reinforcing its profile beyond COVID‑19 therapeutics.
Albemarle Corp. shares dropped 3.5%, as lithium prices fell and the company flagged cost‑cutting and lower demand at an industry conference, rattling investor sentiment.
GMS Inc. shares jumped ~11.7% following confirmation that it agreed to sell itself to a Home Depot subsidiary for $110 per share in cash, valuing the deal at approximately $5.5 billion and prompting a bidding war.
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