Good morning,
Many economists say the U.S. has avoided a recession for now, but there is one potentially ominous sign: a luxury goods slowdown.
LVMH—which owns brands like Louis Vuitton, Christian Dior, Fendi and Hennessy—disappointed investors with its quarterly results last week, with revenue growth well below what it saw in 2023. Despite high price tags, luxury items have historically seen strong sales during various economic conditions, as people shop for status and quality.
The slowdown could mean that even top-level consumers are being cautious about spending. To return to growth, luxury brands will have to prove their worth to consumers and possibly even cut prices.
FIRST UP
Federal Reserve Bank Chairman Jerome Powell
Photo by Chip Somodevilla/Getty Images
Government bond yields reached their highest levels since mid-summer Tuesday, continuing a surprising trend after the Federal Reserve slashed interest rates last month. Treasuries symbolize the market’s expectations for monetary policy, and the November election could put further upward pressure on bonds, as the results could determine whether federal borrowing surges.
Researchers have discovered a collection of lithium—a primary component in lithium-ion electric vehicle batteries—in Arkansas that, if recovered, could far exceed the projected world demand for lithium in car batteries in 2030. Demand for lithium is growing exponentially due to the increased adoption of electric vehicles, and the Arkansas mine represents 35% to 136% of the current amount of lithium estimated to be in the U.S.
BUSINESS + FINANCE
Many brands promise good customer service, but how many deliver? Forbes’ second-annual Best Customer Service 2025 list relies on a wide-ranging survey in which people provided 4.4 million ratings of the customer service they received from their interactions with more than 3,500 brands. The top 300 made the list, led by The UPS Store, USAA, Chick-fil-A, REI and Trader Joe’s.
Mike Jeffries, the former chief executive of clothing retailer Abercrombie & Fitch, was charged with running an international sex trafficking ring while at the company, the Justice Department announced Tuesday. An attorney representing the alleged victims accused Jeffries and his partner Matthew Smith of operating “one of the most organized sex trafficking operations in U.S. history” in a statement to Forbes.
MONEY + POLITICS
Photo by Michael Loccisano/Getty Images
Microsoft co-founder Bill Gates recently provided around $50 million to a nonprofit backing Vice President Kamala Harris’ presidential campaign, according to The New York Times. Harris has 81 billionaires backing her, according to a Forbes analysis, including former New York City Mayor Mike Bloomberg and LinkedIn co-founder Reid Hoffman, while Trump has the support of 50 billionaires, including the world’s wealthiest person Elon Musk, who has recently joined Trump on the campaign trail.
Ex-attorney Rudy Giuliani must begin turning over personal assets and property to the Georgia election workers he defamed within the next seven days, a federal judge ruled Tuesday. Giuliani was ordered to pay the workers $148 million in damages in December for spreading lies about them after the 2020 election, but he does not have that much in cash, and filed for bankruptcy in December as a result of the ruling.
TRAVEL + LIFESTYLE
Marriott
MGM Resorts’ glittering 47-story Delano Las Vegas will rebrand as the W Las Vegas, a Marriott International property, before the year is up, the brands announced Monday. Marriott and MGM announced a long-term licensing agreement in July 2023, a pivotal move for Marriott, the world’s largest hospitality company, as it expands into the Las Vegas market.
TRENDS + EXPLAINERS
The IRS announced the tax brackets, standard deductions and other inflation adjustments for the tax year 2025, which begins January 1. In 2025, there are seven tax rates: 10%, 12%, 22%, 24%, 32%, 35% and 37%. But keep in mind, you won’t use these figures until you file your 2025 tax return in 2026.
DAILY COVER STORY
Google’s Upcoming Ad Change Could Spell Disaster For Millions Of Unprepared Small Businesses
Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images
SOPA Images/LightRocket via Getty Images
TOPLINE There’s a big change coming that small business owners need to know about.
Starting on November 21, Google Local Services Ads will only show up in search results if they’re linked to the business’ Google Business Profile. If they’re not, the ads will be paused and won’t appear at all.
These ads appear at the top of Google search results, connecting businesses directly with local customers, and allow businesses to pay only for leads related to their service. Many small businesses rely on these ads to attract new customers, with studies showing that 98% of U.S. consumers look for local businesses online. They’re highly effective: Over 80% of these searches lead to sales, according to Fit Small Business, a small business industry publication.
A Google Business Profile lets businesses control how they show up on Google Search and Maps. It’s free and helps businesses appear in local searches, making it important for attracting new customers. To get verified, businesses need to prove their legitimacy through video or phone verification, or sometimes even by receiving a postcard from Google. This verification helps prevent lead generation hijacking, where fake businesses are set up to reroute potential customers to another business, often to get around bad reviews or boost leads.
The change was introduced to increase consistency and security by adding another layer of verification, according to Ben Fisher, founder of Steady Demand, a specialist in Google Business Profiles and Local Services Ads. Fisher says that will help prevent bad actors from exploiting the Local Services Ads ecosystem.
WHY IT MATTERS Fisher estimates the change will affect roughly half of all businesses that advertise locally on Google. While he acknowledges there may be some false positives, he supports the move. The change aims to curb abuses in the system, such as a garage door company—one of the frequent offenders along with locksmiths and attorneys, he says—that boosts its reviews by pulling in feedback from unrelated businesses.
MORE How To Now Get Nearly Unlimited Funding To Build Your Small Business Empire
FACTS + COMMENTS
Payouts from a 2022 settlement with e-cigarette company Juul and tobacco firm Altria have begun, and some social media users are claiming to have received thousands of dollars. The company settled claims that customers paid more for the e-cigarettes than if the company had accurately described the product’s addictiveness and safety:
$300 million: The size of the settlement
Up to $9,000: The amount some are claiming to have 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, and while AI is an exciting new technology that’s ripe for experimentation, it also comes with security and privacy risks—especially when using it on the job. Offering training around AI and cybersecurity can help, although it’s not always enough. The onus is on leaders to develop and put AI guidelines into place 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 the two iconic franchises faced off in the World Series?
A. 1976
B. 1981
C. 1987
D. 2005
Thanks for reading! This edition of Forbes Daily was edited by Sarah Whitmire and Chris Dobstaff.