Rolling coverage of the latest economic and financial news
9m agoShein falls to $99m loss ahead of IPO
23m agoIntroduction: Oil price slides as US and Iran pause fire
The Chinese fast fashion giant Shein reported a $99m (£74.1m) net loss in its first quarter, after the removal of an import duty exemption in the US on small packages triggered a slowdown in sales.
The figures were released as part of the company’s pre-IPO paperwork, as it prepares to list on Hong Kong’s stock exchange.
It showed that the business made a $99m loss in the first quarter of 2026, compared with net income of $395m a year earlier.
The US scrapped its tariff exemption for small packages in May. Shein said in its filing that it was “pursuing a wide range of options, including increasing our prices in the US market to offset a portion of the increased costs”.
The European Union has also this month imposed a €3 fee on low-value e-commerce imports, in a move designed to defend European businesses from what the union calls “unfair competition” from China.
Shein has seen a sharp drop in its valuation in recent years, as the pandemic-era boom in online shopping has ended. The company is now reportedly seeking a valuation of $40bn to $50bn, compared with reports of a potential valuation of $100bn in 2022.
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Oil prices have fallen more than 5% this morning as the US paused strikes on Iran for the second night in a row, with military officials advising Donald Trump to stop his bombing campaign.
Brent crude, the international benchmark for oil, is now down 5.3% to $91.68 a barrel, after it hit $100 last week.
Trum is believed to be considering diplomatic and military options in the conflict with Iran, while the Israeli leader Benjamin Netanyahu is expected to visit the White House on Tuesday.
Iran said on Sunday that it would pause “retaliatory” attacks against US allies in the region.
Jim Reid, of Deutsche Bank, says that while the pause is not a formal ceasefire, both sides have presented it as “an opportunity for diplomacy”.
US officials, including UN ambassador Mike Waltz, have stressed that all military options remain on the table and that President Trump is simply giving negotiations more space. However, reports from the New York Times and Axios suggest an active debate within the administration over both the effectiveness and costs of further strikes, with some military officials reportedly arguing that key objectives have largely been achieved. For now, the market is treating the lull as a positive development, although the situation remains highly fluid. The main market risk remains the energy and shipping front. Traffic through Hormuz remains severely disrupted, while the conflict has broadened into the Red Sea, where Iran-backed Houthi forces reportedly launched missile and drone attacks against Saudi energy infrastructure around Jizan and Yanbu over the weekend, prompting retaliatory Saudi strikes. This raises the prospect of simultaneous disruption to both Gulf and Red Sea export routes. So a welcome pause from the main actors but a fragile one, especially with side battles still ongoing.
US officials, including UN ambassador Mike Waltz, have stressed that all military options remain on the table and that President Trump is simply giving negotiations more space. However, reports from the New York Times and Axios suggest an active debate within the administration over both the effectiveness and costs of further strikes, with some military officials reportedly arguing that key objectives have largely been achieved. For now, the market is treating the lull as a positive development, although the situation remains highly fluid.
The main market risk remains the energy and shipping front. Traffic through Hormuz remains severely disrupted, while the conflict has broadened into the Red Sea, where Iran-backed Houthi forces reportedly launched missile and drone attacks against Saudi energy infrastructure around Jizan and Yanbu over the weekend, prompting retaliatory Saudi strikes. This raises the prospect of simultaneous disruption to both Gulf and Red Sea export routes. So a welcome pause from the main actors but a fragile one, especially with side battles still ongoing.
Elsewhere this morning, AstraZeneca reported better than expected profits for its second quarter, driven by strong growth in its cancer treatment sales.
Its earnings for the three months ended in June rose 18% to $2.63 (£1.97) a share, while its overall revenue rose by 5% to $15.38bn at constant currency.
The agenda
7am BST: AstraZeneca half-year results
1.30pm BST: US durable goods orders
