What Luxury Slowdown Says About the Economy

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good morning,

Although many economists say the U.S. has avoided a recession for now, there is one potentially ominous sign: a slowdown in luxury goods.

LVMH, which owns brands such as Louis Vuitton, Christian Dior, Fendi and Hennessy, disappointed investors with its quarterly results last week, with sales growth well below its 2023 results. Despite their hefty price tags, luxury goods have historically sold well at various times. An economic situation in which people shop for status and quality.

A slowing economy could mean even top consumers are being cautious about spending. To return to growth, luxury brands will need to prove their worth to consumers and, in some cases, lower prices.

First

Treasury yields hit their highest levels Tuesday since midsummer, continuing an alarming trend after the Federal Reserve cut interest rates last month. Treasuries represent market expectations for monetary policy, and November’s election could decide whether federal borrowing spikes, putting further upward pressure on bonds.

Researchers have discovered clusters of lithium, the main component of lithium-ion batteries in electric cars, in Arkansas. If recovered, this could far exceed the predicted global demand for lithium in automotive batteries in 2030. Adoption of electric vehicles is increasing, and the Arkansas mine currently accounts for 35% to 136% of the estimated lithium volume in the United States.

Business + Finance

Many brands promise great customer service, but how many deliver?For the second year in a row, Forbes’ Best Customer Service 2025 list ranks people with more than 3,500 brands. Based on extensive research that provided 4.4 million customer service ratings from interactions. The top 300 companies made the list, including The UPS Store, USAA, Chick-fil-A, REI, and Trader Joe’s.

Mike Jeffries, the former chief executive of clothing retailer Abercrombie & Fitch, has been indicted on charges of running an international sex trafficking ring while at the company, the Justice Department announced Tuesday. Attorneys representing the alleged victims said in a statement to Forbes that Jeffries and his partner Matthew Smith ran “one of the most organized sex trafficking operations in U.S. history.” accused of going.

money and politics

Microsoft co-founder Bill Gates recently gave about $50 million to a nonprofit group supporting Vice President Kamala Harris’ presidential campaign, according to the New York Times. According to a Forbes analysis, Harris has the support of 81 billionaires, including former New York City Mayor Mike Bloomberg and LinkedIn co-founder Reid Hoffman, who recently joined Trump. It is backed by 50 billionaires, including Elon Musk, one of the world’s richest men. Mr. Trump during his election campaign.

Former lawyer Rudy Giuliani must begin turning over his personal assets and property within the next seven days to the Georgia election officials he vilified, a federal judge ruled Tuesday. Giuliani was ordered in December to pay $148 million in damages to employees for spreading falsehoods about them after the 2020 election, but he doesn’t have the cash to pay for the judgment. As a result, it filed for bankruptcy in December.

Travel + Lifestyle

MGM Resorts’ glittering 47-story Delano Las Vegas will be rebranded as W Las Vegas, a Marriott International property, by the end of the year, the brand announced Monday. Marriott and MGM announced a long-term licensing agreement in July 2023, a pivotal move for the world’s largest hospitality company as it expands into the Las Vegas market.

Trends and commentary

The IRS announced tax brackets, standard deductions, and other inflation adjustments for the 2025 tax year beginning January 1. There are seven tax rates in 2025: 10%, 12%, 22%, 24%, 32%, and 35%. and 37%. However, keep in mind that these numbers won’t be used until you file your 2025 tax return in 2026.

daily cover story

Google’s upcoming ad changes could spell disaster for millions of unprepared small businesses

Topline Big changes are coming that small business owners should know about.

Starting November 21, Google Local Services ads will only appear in search results if they are linked to your business’ Google Business Profile. If not, your ads will be paused and not displayed at all.

These ads appear at the top of Google search results and connect businesses directly with local customers, allowing businesses to pay only for leads that are relevant to their services. Many small businesses rely on these ads to attract new customers, and research shows that 98% of U.S. consumers look for local businesses online. These are very effective. According to Fit Small Business, a small business industry publication, over 80% of these searches result in a sale.

Google Business Profile allows businesses to control how they appear in Google Search and Maps. It’s free and helps businesses appear in local searches, which is important for attracting new customers. To become certified, businesses must prove their legitimacy by receiving video or phone verification, or in some cases a postcard from Google. This verification helps prevent lead generation hijacking, where fake companies are set up to transfer leads to another company, often to avoid bad reviews or increase leads. .

According to Ben Fisher, founder of Steady Demand, a specialist in Google Business Profiles and Local Services Ads, this change was introduced to improve consistency and security by adding an additional layer of verification. Fisher says this will prevent bad actors from abusing the local services advertising ecosystem.

Why it matters Fisher estimates that this change will affect about half of businesses that advertise locally on Google. He supports the move, although he acknowledges there may be false positives. The changes are aimed at curbing fraudulent activity in the system, with garage door companies, which are as common criminals as locksmiths and lawyers, gathering feedback from unaffiliated companies to strengthen their reviews.

How to get almost unlimited funds to build your small business empire now

facts and comments

Payments from a 2022 settlement between e-cigarette company Juul and tobacco company Altria have begun, with some social media users claiming they have received thousands of dollars. The company settled claims that customers paid more for e-cigarettes than they would have had the company accurately described the product’s addictive properties and safety.

$300 million: Settlement amount

Up to $9,000: The amount some people claim they received from the settlement

December 7, 2022: Consumers eligible for the settlement must have purchased Juul products before this date

strategy + success

October is Cybersecurity Awareness Month. AI is an exciting new technology ripe for experimentation, but it also comes with security and privacy risks, especially when used for work. Providing training in AI and cybersecurity is helpful, but not always sufficient. Leaders are responsible for developing and implementing AI guidelines for employees to follow.

quiz

The Los Angeles Dodgers and New York Yankees will face off in the World Series starting Friday. When was the last time two iconic franchises met in the World Series?

A.1976

Born in 1981

Around 1987

D.2005

Check your answer.

Thanks for reading!This issue of Forbes Daily was edited by Sarah Whitmire and Chris Dobstaff.