cuts

A federal judge on Tuesday temporarily halted a Trump administration plan to reduce disaster relief and anti-terrorism funding for states with so-called sanctuary policies for undocumented immigrants.

U.S. District Judge Mary S. McElroy granted the temporary restraining order curtailing the cuts at the request of California, 10 other states and the District of Columbia, which argued in a lawsuit Monday that the policy appeared to have illegally cost them hundreds of millions of dollars.

The states said they were first notified of the cuts over the weekend. McElroy made her decision during an emergency hearing on the states’ motion in Rhode Island District Court on Tuesday afternoon.

California Atty. Gen. Rob Bonta cheered the decision as the state’s latest win in pushing back against what he described as a series of unlawful, funding-related power grabs by the Trump administration.

“Over and over, the courts have stopped the Trump Administration’s illegal efforts to tie unrelated grant funding to state policies,” Bonta said. “It’s a little thing called state sovereignty, but given the President’s propensity to violate the Constitution, it’s unsurprising that he’s unfamiliar with it.”

Neither the White House nor the Department of Homeland Security, which oversees the funding and notified the states of the cuts, immediately responded to a request for comment Tuesday.

Sanctuary policies are not uniform and the term is imprecise, but it generally refers to policies that bar states and localities — and their local law enforcement agencies — from participating in federal immigration raids or other enforcement initiatives.

The Trump administration and other Republicans have cast such policies as undermining law and order. Democrats and progressives including in California say instead that states and cities have finite public safety resources and that engaging in immigration enforcement serves only to undermine the trust they and their law enforcement agencies need to maintain with the public in order to prevent and solve crime, including in large immigrant communities.

In their lawsuit Monday, the states said the funding being reduced was part of billions in federal dollars annually distributed to the states to “prepare for, protect against, respond to, and recover from catastrophic disasters,” and which administrations of both political parties distributed “evenhandedly” for decades before Trump.

Authorized by Congress after events such as Sept. 11 and Hurricane Katrina, the funding covers the salaries of first responders, testing of state computer networks for cyberattack vulnerabilities, mutual aid compacts between regional partners and emergency responses after disasters, the states said.

Bonta’s office said California was informed over the weekend by Homeland Security officials that it would be receiving $110 million instead of $165 million, a reduction of its budget by about a third. The states’ lawsuit said other blue states saw even more dramatic cuts, with Illinois seeing a 69% reduction and New York receiving a 79% reduction, while red states saw substantial funding increases.

Bonta on Tuesday said the administration’s reshuffling of funds based on state compliance with the Trump administration’s immigration enforcement priorities was illegal and needed to be halted — and restored to previous levels based on risk assessment — in order to keep everyone in the country safe.

“California uses the grant funding at stake in our lawsuit to protect the safety of our communities from acts of terrorism and other disasters — meaning the stakes are quite literally life and death,” he said. “This is not something to play politics with. I’m grateful to the court for seeing the urgency of this dangerous diversion of homeland security funding.”

Homeland Security officials have previously argued that the agency should be able to withhold funding from states that it believes are not upholding or are actively undermining its core mission of defending the nation from threats, including the threat it sees from illegal immigration.

Other judges have also ruled against the administration conditioning disaster and public safety funding on states and localities complying with federal immigration policies.

Joining California in Monday’s lawsuit were Connecticut, Delaware, Illinois, Massachusetts, Minnesota, New Jersey, New York, Rhode Island, Vermont and Washington, as well as the District of Columbia.

Summit Financial Wealth Advisors, LLC disclosed in a Monday filing with the Securities and Exchange Commission that it sold 101,515 shares of food distribution giant Sysco(SYY -0.11%), cutting the vast majority of its stake in the firm.

What happened

According to a Monday SEC filing, Louisiana-based Summit Financial Wealth Advisors, LLC sold 101,515 shares of Sysco during the quarter ended June 30. The estimated transaction value was $7.4 million based on the average closing price for the quarter. The fund’s remaining Sysco holding totaled 4,295 shares, worth $325,266, meaning the firm cut about 95% of its stake.

What else to know

The transaction reduced the Sysco position to 0.1% of fund AUM, down from 1.6% in the prior quarter.

Top holdings after the filing:

• SCHD: $53.05 million (9.5% of AUM)
• VUG: $49.21 million (8.8% of AUM)
• VYMI: $36.55 million (6.6% of AUM)
• NOBL: $24.6 million (4.4% of AUM)
• SPBO: $23.2 million (4.2% of AUM)

As of Monday, Sysco shares were priced at $81.72, up about 5% year over year but underperforming the S&P 500 by more than 10 percentage points during the same period.

Company Overview

Company Snapshot

Sysco distributes a broad range of food products—including frozen foods, fresh meats and seafood, dairy, canned and dry goods, beverages, and non-food supplies—to the foodservice industry.

The company generates revenue primarily through large-scale distribution operations, leveraging its logistics network to supply restaurants, healthcare, education, hospitality, and other institutional clients.

Sysco’s primary customers include restaurants, hospitals, nursing homes, schools, hotels, and other foodservice providers across North America and select international markets.

Sysco is a leading global food distribution company with a significant presence in North America and international markets.

Foolish take

Summit Financial’s decision to unload nearly all of its Sysco shares is notable, but it doesn’t necessarily mean the firm has lost confidence in the food distributor. Large managers regularly rebalance portfolios to free up cash or reallocate into higher-conviction ideas. In this case, Sysco had been a modest position for Summit—reflecting less than 2% of reportable assets—and now barely registers at just 0.1%.

For investors, the bigger question is how Sysco stacks up in today’s market. Shares have risen just over 5% in the past year, a steady climb but well short of the S&P 500’s double-digit gains. The lag highlights Sysco’s profile: It’s a defensive stock with dependable cash flows and a long history of paying dividends, not a high-growth story. Its dividend yield is about 2.6%, compared to an average of about 1.25% for the broader S&P 500.

Nevertheless, recent headlines—including a $388 million deal with the U.S. Navy and continued investments in distribution facilities—underscore Sysco’s ability to secure stable revenue streams. Still, the stock’s performance will ultimately depend on restaurant traffic and consumer confidence, both of which are highly sensitive to broader economic trends.

Glossary

13F assets: Securities and assets that institutional investment managers must report quarterly to the Securities and Exchange Commission (SEC) if above a certain threshold.
AUM (Assets Under Management): The total market value of investments managed by a fund or financial institution on behalf of clients.
Dividend Yield: A financial ratio showing how much a company pays in dividends each year relative to its share price.
Distribution operations: The logistical processes involved in delivering products from suppliers to customers, often on a large scale.
Institutional clients: Organizations such as pension funds, endowments, or corporations that invest large sums of money.
Logistics network: The system of transportation, warehousing, and coordination used to move goods efficiently from suppliers to customers.
Reportable: Refers to holdings or transactions that must be disclosed to regulators, such as the SEC, due to their size or nature.
TTM: The 12-month period ending with the most recent quarterly report.
Underperforming: Delivering a lower return compared to a benchmark or index over a specific period.

The Taliban in Afghanistan have imposed a nationwide shut down of telecommunications, weeks after they began severing fibre-optic internet connections to prevent what they call immorality.

The country is currently experiencing a total connectivity blackout, internet watchdog, Netblocks reports.

International news agency AFP says it lost contact with its office in the capital Kabul, including mobile phone service. Mobile internet and satellite TV has also been severely disrupted across Afghanistan.

Since seizing power in 2021, the Taliban have imposed numerous restrictions in accordance with their interpretation of Islamic Sharia law.

Flights from Kabul airport have also been disrupted, according to reports.

Several people in Kabul have told the BBC that their fibre-optic internet stopped working towards the end of the working day, around17:00 local time (12:30 GMT)

Because of this, it is understood many people will not notice the impact until Tuesday morning, when services like banking and border services are due to resume.

Fibre-optic cables transfer data super fast, and are used for much of the world’s internet.

In a post on social network Mastodon.social, Netblocks said:

“Afghanistan is now in the midst of a total internet blackout as Taliban authorities move to implement morality measures, with multiple networks disconnected through the morning in a stepwise manner; telephone services are currently also impacted”.

For weeks internet users in several Afghan provinces have been complaining about either slow internet access or no connectivity.

The Taliban earlier said an alternative route for internet access would be created, without giving any details.

Business leaders at the time warned that if the internet ban continued their activities would be seriously hit.

The blackout is the latest in a series of restrictions which the Taliban have enforced since returning to power.

Earlier this month they removed books written by women from the country’s university teaching system as part of a new ban which has also outlawed the teaching of human rights and sexual harassment.

Women and girls have also been particularly hard-hit: they are barred from accessing education beyond the age of 12, with one of their last routes to further training cut off in late 2024, when midwifery courses were quietly shut down.

The Taliban, a hardline Islamist group, retook control of Afghanistan in 2021 in a lightning advance that lasted just 10 days.

Ever since Elijah Maldonado was born at just 29 months, he has needed specialty treatments that his family could afford only with publicly funded healthcare.

Diagnosed with cerebral palsy as an infant, he spent his first three months at a public hospital where the family lives in Orange County.

Now 7, Elijah receives physical and speech therapy among a host of other services paid for through Medicaid. He relies on a wheelchair funded by the government. An assistant paid for with taxpayer dollars makes sure he’s safe on the bus ride to and from school.

Each month, he receives a $957 disability check that helps to cover his and his family’s living expenses.

Josephine Rios wipes her grandson Elijah’s face.

(Juliana Yamada / Los Angeles Times)

Still learning to speak on his own, he uses a Proloquo speech app on an iPad provided by his school to tell his family when he’s hungry, needs to use the restroom or wants to play with his favorite toys.

“It’s his voice — his lifeline,” his aunt and primary caretaker Cassandra Gonzalez says of the app. Her compensation for his in-home care comes from taxpayer dollars too.

Now that lifeline — and much of the government assistance Elijah receives — is at risk of going away.

With hundreds of billions of dollars worth of cuts to Medicaid and food aid kicking in this fall thanks to the passage of the Republican-backed “One Big Beautiful Bill Act” — on top of earlier cuts imposed by Elon Musk’s Department of Government Efficiency — a host of federally funded healthcare and nutrition programs that serve low-income Americans will be scaled back, revamped with expanded work requirements and other restrictions or canceled altogether if individual states can’t find alternate funding sources.

The budget reduces federal spending on Medicaid alone by about $1 trillion over the next 10 years nationwide, with initial reductions taking effect in the coming weeks.

Gov. Gavin Newsom responded by accusing the Trump administration of “ripping care from cancer patients, meals from children and money from working families — just to give tax breaks to the ultra-rich.”

L.A. public health officials called the cuts devastating for a county where nearly 40% of the population is enrolled in Medi-Cal, the state’s Medicaid program. L.A. County’s Department of Health Services, which oversees four public hospitals and about two dozen clinics, projects a budget reduction amounting to $750 million a year, and federal funding for the Department of Public Health, which inspects food, provides substance-use treatment and tracks disease outbreaks, will drop by an estimated $200 million a year. Spending cuts have prompted hiring freezes and projections of ballooning budget deficits, county health officials said.

Spending reductions, combined with recent changes to the Affordable Care Act and Medicare, could leave an additional 1.7 million people in California uninsured by 2034, according to an analysis by the nonprofit healthcare research organization KFF.

Cuts to the Supplemental Nutrition Assistance Program (SNAP), colloquially known as “food stamps,” will exceed $280 billion over the next decade, according to projections from the Congressional Budget Office.

It’s not just that the cuts to these programs are massive by historical standards.

The new rules and restrictions are confusing and states have been given little guidance from the federal agencies that oversee health and nutrition programs on how, or even when, to implement them, experts at the Center on Budget Policy and Priorities wrote in a recent report.

What’s clear, the CBPP said, is that millions of children, older adults, people with disabilities and veterans stand to lose not just Medicaid coverage but federal aid to access the type of healthy foods that could prevent illness and chronic conditions.

More than 5 million California households receive food aid through the state’s CalFresh program and 97% percent of them will see their benefits either slashed or eliminated because of federal spending cuts, changes to eligibility requirements or financial constraints at the state level, according to an analysis by the nonpartisan California Budget Policy Center.

Elijah plays with toy cars outside his aunt’s home in Tustin.

(Juliana Yamada / Los Angeles Times)

In Orange County, where Elijah’s family lives, public health officials were already reeling from federal spending cuts in the months before the budget bill passed, said Dr. Veronica Kelley, director of the OC Health Care Agency. For example, there was the $13.2-million cut to funding for family planning services in the county, and the $4-million reduction in funding to Women, Infants and Children nutrition (WIC).

The agency has worked to prevent mass layoffs by moving public-health workers in canceled programs to other departments or leaving some positions unfilled in order to save jobs elsewhere, and it has sought out nonprofit social service organizations and philanthropies to either take over programs or help fund them, Kelley said.

Now, Kelley is preparing for possible cuts to programs to combat obesity, maintain community gardens, help seniors make better healthcare decisions and reduce the use of tobacco. The agency also has to figure out how to make up for a $4.8-million reduction in federal funds for the county’s SNAP program that takes effect on Wednesday — another casualty of the federal spending bill.

The measures that the agency has leaned on to get through the year are not sustainable, Kelley said. “We can only do that for so long,” she said. “It’s chaotic. In terms of healthcare, it’s devastating… It feels like we’re taking so many steps backward.”

The looming cuts and changes have also set off alarm bells at Kaiser Permanente, California’s largest private healthcare provider with 9.5 million members statewide, 1.1 million of whom are enrolled in Medi-Cal, the state’s Medicaid program.

“Without the ability to pay, newly uninsured people will find themselves having to delay care, leading to more serious and complex health conditions, increasing the use of emergency services and more intensive medical services,” Kaiser Permanente Southern California Regional spokeswoman Candice Lee said in a statement to The Times.

“This will affect all of us as the cost of this uncompensated care leads hospitals and care providers to charge paying customers more to cover their costs. Some hospitals and providers, especially those in rural and underserved areas, will be unable to make up for these unreimbursed costs, and will be financially threatened by these changes.”

Standing in front of her sister Cassandra’s town home in Tustin, a quiet suburban city of 80,000 about 10 miles south of Disneyland, Elijah’s mother, Samantha Rios; grandmother Josephine Rios; and Aunt Cassandra are filled with worry.

Elijah points to a command on his Proloquo speech app, which he uses to communicate his needs.

(Juliana Yamada / Los Angeles Times)

Josephine, a nursing assistant who works at a Kaiser hospital in Orange County, said she hears the panic in patients’ voices when they describe rushing to schedule needed medical procedures in anticipation of losing their Medicaid benefits.

Earlier this year, Josephine joined delegations of unionized California healthcare workers who traveled to Washington with the aim of pressing lawmakers to oppose spending cuts.

Rep. Young Kim, the Republican who represents the Rios family’s district in Congress, was receptive to the delegation’s pleas to vote no on the budget bill, Josephine recalls. The congresswoman ultimately voted for the bill, saying on her official webpage the legislation was good for Californians because it would relieve the tax burden on families, ensure that government dollars are used effectively and “strengthen Medicaid and SNAP for our most vulnerable citizens who truly need it.”

Elijah’s Aunt Cassandra and grandmother Josephine look over his shoulder as he watches a TV show.

(Juliana Yamada / Los Angeles Times)

Now, Josephine looked on as Elijah, seated in his wheelchair, played on his iPad and watched a Disney program on his phone. He can press a tab on the touchscreen to make the tablet say “My name’s Elijah” if he’s feeling unsafe away from home, another to tell his family he needs space when upset.

Watching Elijah enjoy himself, the women said they feel awkward broadcasting their woes to strangers when all they desire is what’s best for him. They don’t need the public’s pity.

The family wants lawmakers and the public to understand how seemingly abstract healthcare decisions involving billions of dollars, and made 2,000-plus miles away in Washington, have brought new financial turmoil to a family that’s already on the edge financially.

Samantha, a single mom, works full time to provide a home for Elijah and his two sisters, ages 10 and 8. A subscription to the Proloquo speech app alone would cost $300 a year out-of-pocket — more than she can afford on her shoestring budget.

Due to changes in household income requirements, Samantha had already lost Medicaid coverage for herself and her two girls, she said, as well as her SNAP food assistance, leaving her at a loss for how to fill the gap. She now pays about $760 a month to cover her daughters and herself through her employer-based health plan.

The cut to food aid has forced her to compensate by getting free vegetables, milk, eggs and chicken from the food pantry at a local school, a reality that she said she was at first too ashamed to disclose even to relatives.

Then came the bad news Samantha recently received about Elijah’s monthly Social Security Insurance for his disability. She was stunned to hear that because of stricter income cut-offs for that type of aid, Elijah would no longer receive those checks as of Oct. 1.

“Before, he was getting $957 a month — obviously that’s grocery money for me,” Samantha said. The money also went to buy baby wipes, as well as knee pads to help him move more comfortably on the floor when not using his wheelchair.

“I don’t get food stamps. I don’t get Medi-Cal for my girls. I don’t get any of that,” Samantha said. “As of Oct. 1, now I’ve got to figure out how am I going to pay my rent? How am I going to buy groceries?”

Luckily, the sisters said, the physical, speech and behavioral-health therapies that Elijah receives are safe — for now.

And the women know they can lean on each other in tough times. The sisters and Josephine all live within minutes of each other in Tustin, close enough for Samantha’s children to eat at someone’s home when their own cupboards are bare.

Every few months, Samantha said, Elijah experiences severe seizures that can last up to 90 minutes and require hospitalization.

Cassandra and Josephine like that they can run over to help if Elijah has a medical emergency. Another sister who lives farther away is on hand when needed too.

“What’s going to happen to other families who don’t have that support system?” Samantha said.

Given the potential for further cuts to programs that pay for home-based healthcare and assistants for people with disabilities, Cassandra wonders what will happen to her own family if she can no longer work as Elijah’s caregiver.

Where would the family get the money to pay a new caregiver who is qualified enough to work with a special-needs child who can speak a few words thanks to speech therapy but who cannot eat, walk or use the restroom without supervision? What if funding is eliminated for the assistant who travels with Elijah to school?

“People think that cutting Medi-Cal, cutting food stamps or whatever isn’t going to affect that many people,” Cassandra said. “It’s affecting my nephew and nieces. It’s affecting my sister. But it’s not just affecting her household. It’s affecting my household.”

“We’re not saying we’re going to Disneyland or going out to eat every day,” Cassandra said. “This is just living. We can’t even live at this point, with things being cut.”

The women offered up principles they feel are in short supply lately in the discourse over the government’s role in public health — among them “morals” and “empathy.” Samantha adds one more word to the list.

“Humanity,” she says. “We lack it.”

Sept. 26 (UPI) — Microsoft has ended a portion of the Israel Ministry of Defense’s access to technology it used to spy on Palestinian civilians’ phone calls in Gaza and the West Bank, calling it a violation of Microsoft’s terms of service.

Late last week, Microsoft told Israeli officials that spy agency Unit 8200 were in violation of Microsoft’s terms of service by storing surveillance data in Azure, a cloud service, The Guardian reported.

Microsoft released a statement that it wrote to employees Thursday about its internal investigation after an article The Guardian published in August that revealed what the Ministry of Defense was using Azure for.

“While our review is ongoing, we have found evidence that supports elements of The Guardian’s reporting. This evidence includes information relating to IMOD consumption of Azure storage capacity in the Netherlands and the use of AI services,” Brad Smith, vice chair and president of Microsoft, said in the statement.

The Guardian conducted a joint investigation with +972 Magazine and the Hebrew-language outlet Local Call. The Guardian wrote that Microsoft and Unit 8200 had worked together on a plan to move large volumes of sensitive intelligence material into Azure.

According to The Guardian’s reporting, Unit 8200 built such a large database, it could collect, play back and analyze the cell phone calls of the entire population. So much so that a mantra emerged: “A million calls an hour.”

The information was stored in a Microsoft data center in the Netherlands, but soon after The Guardian’s reporting, the data appears to have been moved out of the country. The Guardian reports that sources said the Israel Defense Forces planned to move the data to an Amazon Web Services cloud.

“We therefore have informed IMOD of Microsoft’s decision to cease and disable specified IMOD subscriptions and their services, including their use of specific cloud storage and AI services and technologies,” Smith said. “We have reviewed this decision with IMOD and the steps we are taking to ensure compliance with our terms of service, focused on ensuring our services are not used for mass surveillance of civilians.”

Microsoft has faced strong pressure to disengage with Israel, including from its employees. In late August, two Microsoft employees were fired for allegedly breaking into Smith’s office.

An online group called No Azure for Apartheid announced on X that Microsoft fired them for “participating in a sit-in at the office of Brad Smith” at the Microsoft location in Redmond, Wash., to demand the company cut its ties to Israel.

Seven people were arrested that day, two of whom were Microsoft employees.

Police fire rubber bullets and tear gas as hundreds protest chronic power outages in the island country.

Authorities in Madagascar have imposed a dusk-to-dawn curfew in the capital, Antananarivo, following protests against frequent power outages and water shortages that turned violent.

Hundreds of protesters took to the streets on Thursday to voice their anger over persistent power cuts, which often leave homes and businesses without electricity for over 12 hours. Police used rubber bullets and tear gas to quash the demonstrations.

The protesters barricaded roads with rocks and burning tyres. By Thursday afternoon, there were reported incidents of looting at various retailers, appliance stores and banks across the 1.4-million-strong capital.

Several stations for the country’s new cable car system were also set on fire.

Local media reported on Thursday that three homes of politicians known to be close to President Andry Rajoelina were also attacked by protesters.

Authorities banned the demonstration on Wednesday, citing the risk of public disorder, and police patrolled the capital in large numbers from early Thursday.

“There are, unfortunately, individuals taking advantage of the situation to destroy other people’s property,” General Angelo Ravelonarivo, who heads a joint security body that includes the police and the military, said in a statement he read on privately owned Real TV late on Thursday.

To protect “the population and their belongings,” the security forces decided to impose a curfew from 7pm to 5am (16:00-02:00 GMT) “until public order is restored,” the statement said.

Madagascar, an island nation in the Indian Ocean, is mired in poverty, and some people blame the government of Rajoelina, who was reelected in 2023, for not improving conditions.

Some 75 percent of the country’s estimated 30 million population lived below the poverty line in 2022, according to the World Bank.

“Water and electricity are basic human needs.” “Let us speak out.” “Malagasy people, wake up.” These were some of the messages displayed on the protesters’ placards.

It was unclear how many people were injured during the rallies or whether there were any fatalities.

The protest movement, dominated mostly by the youth, started gaining traction a few days ago on social media platforms, mainly Facebook.

In the country’s provinces, unrest was also reported at the offices of the national water and electricity company, which is seen by protesters as the root of the country’s problems.

WASHINGTON — The Trump administration is ending the federal government’s annual report on hunger in America, stating that it had become “overly politicized” and “rife with inaccuracies.”

The decision comes 2½ months after President Trump signed legislation sharply reducing food aid to the poor. The Congressional Budget Office has estimated that the tax and spending cuts bill Republicans adopted in July means 3 million people would not qualify for Supplemental Nutrition Assistance Program (SNAP) benefits, also known as food stamps.

The decision to scrap the U.S. Department of Agriculture’s Household Food Security Report was first reported by the Wall Street Journal.

In a news release Saturday, the USDA said the 2024 report, to be released Oct. 22, would be the last.

“The questions used to collect the data are entirely subjective and do not present an accurate picture of actual food security,” the USDA said. ”The data is rife with inaccuracies slanted to create a narrative that is not representative of what is actually happening in the countryside as we are currently experiencing lower poverty rates, increasing wages, and job growth under the Trump Administration.’’

The Census Bureau reported earlier this month that the U.S. poverty rate dipped from 11% in 2023 to 10.6% last year, before Trump took office.

Critics accused the administration of deliberately making it harder to measure hunger and assess the impact of its cuts to food stamps.

“Trump is cancelling an annual government survey that measures hunger in America, rather than allow it to show hunger increasing under his tenure,” Bobby Kogan, senior director of federal budget policy at the left-leaning Center for American Progress, said on social media. “This follows the playbook of many non-democracies that cancel or manipulate reports that would otherwise show less-than-perfect news.”

Wiseman writes for the Associated Press.

Stocks are at an all-time high, as there have been plenty of winners during the AI boom.

However, one sector has been left behind over the last couple of years. Housing stocks have generally been reeling with mortgage rates still elevated and existing home sales down roughly 30% since pre-pandemic levels. That has impacted everyone in the sector, from home builders to real estate agencies to home-furnishing companies, which depend on home sales to drive demand.

One company, RH (RH -3.60%), is still trading down 69% from its pandemic-era peak, as its business pulled back substantially in the post-pandemic era, even though it has since regrouped and is back to delivering solid growth.

The stock pulled back last week after the high-end home furnishings company formerly known as Restoration Hardware missed estimates and cut its full-year guidance. The stock fell 4.6% on the news, even though the numbers were solid considering the challenging macroeconomic environment.

Image source: RH.

Revenue rose 8.4% to $899.2 million, below estimates for $905.4 million. Demand, which is a measure of order growth, was up 13.7% in the period, even with the impact of tariff uncertainty and a weak housing market.

Despite the weaker-than-expected revenue growth, the company continued to deliver strong profit margins with an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 20.6%, and a generally accepted accounting principles (GAAP) operating margin of 14.3%.

Adjusted earnings per share jumped from $1.69 to $2.93, showing its margins are rapidly expanding, though that missed the consensus at $3.22.

Why RH could soar

It will take a lot for RH to recover to its previous peak, which came at a time when the housing market was soaring and home-improvement stocks were delivering rapid growth.

However, considering it’s down 69% from its peak, RH doesn’t need to get all the way back there to be a winner. In fact, the Fed rate cut on Wednesday could be the trigger the company needs in the housing market.

CEO Gary Friedman hasn’t hesitated to blame what he’s called the weakest housing market in 30 years for the company’s woes, and lower mortgage rates are likely to bring more home buyers and sellers into the market. Lower rates will reduce monthly payments, and it will also encourage sellers to reenter the market as it will diminish the “lock-in effect” of the pandemic era.

As a high-end home furnishings seller, RH is well prepared to take advantage of the housing market recovery as home sales tend to trigger new furniture purchases.

The company has also expanded significantly in Europe and with new galleries in the U.S., in addition to new trial businesses like restaurants, guesthouses, and airplane and yacht charters.

While interest rate cuts in the U.S. won’t directly affect the business in Europe, its expansion across the pond shows there’s plenty of growth runway left for the company.

Is RH a buy?

Based on analyst estimates for fiscal 2027, which ends in January 2027, RH stock trades at a forward P/E of 18, which seems like a fair price for a stock that still has significant growth potential. Additionally, Friedman envisions expanding the brand beyond home furnishings, even flipping whole, fully furnished houses, effectively getting into the housing market, a program it calls RH Residences.

Even if mortgage rates decline, it could take time for the housing market to spring back to life, especially as the lock-in effect is likely to persist for at least some homeowners.

However, investing in RH looks like a good way to take advantage of the expected rate cuts. For risk-tolerant investors, getting some exposure to the stock right now looks like a smart idea.

BREAKINGBREAKING,

The central bank’s cut comes amid a cooling labour market, which has stalled economic growth.

The United States Federal Reserve will cut interest rates by a quarter of a percentage point, so they will now be between 4.00 percent and 4.25 percent, as a slowing labour market stalls economic growth.

The Fed, the US central bank, announced its decision on Wednesday afternoon.

Economists had widely expected a 25 basis point cut, with CME FedWatch — a group that tracks probability of monetary policy decisions — putting the odds at 96 percent. One basis point is one-hundredth of one percentage point.

Before Wednesday, the Fed had last cut rates in December by 25 basis points, the third cut last year, taking its benchmark rate to between 4.25 percent and 4.50 percent, where it had held steady since.

Federal Reserve Chairman Jerome Powell has emphasised that uncertainty in the economy has kept the Fed cautious, arguing that maintaining rates gave policymakers flexibility as conditions shifted.

The cut comes as a response to shifting economic conditions, following a slew of weak jobs reports showing a slowdown in growth in the labour market and a slight uptick in inflationary pressures.

“Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated,” the central bank said in a press release.

“Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment have risen.”

Investors are also waiting for indications from the central bank on whether it will cut interest rates two or three times for the rest of the year as economic uncertainty weighs on the US labour market and the broader economy while the costs of goods and services increase under tariff-driven pressures.

Political pressure

The latest cut comes at a time of heightened scrutiny and pressure on the Fed, which has long emphasised its independence from political pressure. But for months, US President Donald Trump has publicly attacked the central bank, mocking Powell as “too late Powell” over his cautious approach to cutting rates.

At the same time, the Republican-led White House has sought to oust Fed Governor Lisa Cook, who was appointed by former US President Joe Biden, a Democrat, citing alleged mortgage fraud.

On Monday, a US appeals court blocked Trump from removing her. The administration has said it will challenge the ruling.

“The president lawfully removed Lisa Cook for cause. The administration will appeal this decision and looks forward to ultimate victory on the issue,” White House spokesman Kush Desai said on Tuesday.

That same day, Stephen Miran, chair of Trump’s Council of Economic Advisors, was sworn in to fill a temporary Fed seat left vacant by Adriana Kugler until January, while the White House searches for a permanent replacement.

Miran pledged to act independently, but his close ties to the Trump administration — and his work as a fellow at the conservative Manhattan Institute — have raised doubts. His Senate confirmation fell largely along party lines, 47–48, and Senator Lisa Murkowski of Alaska was the only Republican to oppose him.

On Monday, Senate Minority Leader Chuck Schumer called Miran “nothing more than Donald Trump’s mouthpiece at the Fed”.

Markets respond

As of 2pm in New York (18:00 GMT), US markets are trending upwards. The Nasdaq is about even with the market open, the S&P 500 is up 0.2, and the Dow Jones Industrial Average is up by 1 percent.

ITV has suffered a major blow after several of its shows received official complaints to Ofcom, with Love Island and This Morning and Celebrity Big Brother amongst them

ITV has suffered a major blow after several of its shows received official complaints. The TV and entertainment experts at OLBG have analysed Ofcom complaints data to reveal the TV shows that have amassed the most viewer complaints in 2025, and several titles from the broadcaster have made the list.

Love Island has hit the top spot, with the ITV2 dating show, which recently crowned Toni Laites and Cach Mercer as its most recent winners, notched up 13,585 complaints.

It wasn’t looking good for its spin-off All Stars either, which is due to return next year for a third series, as the show, which brings back famous faces from the villa, received 2,264 in total.

READ MORE: This Morning, Loose Women and Lorraine forced to share new studio amid ITV cutsREAD MORE: Love Island update as Ofcom reveals why it’s dismissing record 14,000 complaints

Celebrity Big Brother also made the list, just a month after Coronation Street favourite Jack P Shepherd was crowned the winner of this year’s edition of the hit reality series. In total,1,224 complained to Ofcom about goings on in the house.

ITV1’s This Morning is a newcomer to the top 10. Towards the end of August, Rylan Clark, who was co-presenting with Josie Gibson, shared his strong opinions on illegal immigration in the UK, which generated 713 Ofcom complaints. Later that day, Rylan Clark took to Instagram to release a statement explaining his stance.

At first, he said: “I find it absolutely insane that all these people are risking their lives coming across the Channel. And when they get here, it does seem, and I think this is why a lot of Labour voters as well are saying there’s something wrong, it feels like, ‘Welcome, come on in’. That’s the narrative we’re being fed.

“Here’s the iPad. Here’s the NHS in reception of your hotel. Here’s three meals a day. Here’s a games room in the hotel. Have a lovely time and welcome.”

Hours later, Rylan took to his Instagram where he wrote: “You can be pro immigration and against illegal routes. You can support trans people and have the utmost respect for women. You can be heterosexual and still support gay rights. The list continues. Stop with this putting everyone in a box exercise and maybe have conversations instead of shouting on twitter!”

In yet another blow for ITV, the recent NTA ceremony, which was hosted by Joel Dommett and saw BBC soap EastEnders scoop up several awards, whilst resident presenters Ant and Dec lost out their usual award to Gary Lineker, received 929 complaints.

Other shows to make the top 10 complaints include Vanessa Feltz’ eponymous Channel 5 programme, a natural rival to Loose Women, thanks to its air time. The chat show received 1,986 complaints in total, whilst GB News’ Headliners notched up 1,347 and Today With Samantha Washington by Sky News received 1,270. Filling out the Top 10 was Martin Daubney (with Alex Armstrong) on GB News, which received 301 complaints from viewers.

The complaints come amid major budget cuts for ITV, which will bring about massive changes to its soaps and Daytime output for 2026.

Kevin Lygo, Managing Director of ITV’s Media and Entertainment Division, announced the big changes in May, and insisted that they will allow the company to ‘deliver’ to the audience whilst also investing in other genres.

He said: “Daytime is a really important part of what we do, and these scheduling and production changes will enable us to continue to deliver a schedule providing viewers with the news, debate and discussion they love from the presenters they know and trust as well generating savings which will allow us to reinvest across the programme budget in other genres.

“These changes also allow us to consolidate our news operations and expand our national, international and regional news output and to build upon our proud history of trusted journalism at a time when our viewers need accurate, unbiased news coverage more than ever.

“I recognise that our plans will have an impact on staff off-screen in our Daytime production teams.” He added: “We will work with ITV Studios and ITN as they manage these changes to produce the shows differently from next year, and support them through this transition. “Daytime has been a core element of ITV’s schedule for over 40 years and these changes will set ITV up to continue to bring viewers award-winning news, views and discussion as we enter our eighth decade.”

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