Greetings,

Companies that are due for U.S. tariff refunds have largely stayed quiet on whether they plan to pass any of those funds on to customers. But for some (like Nintendo), the customers aren't waiting around to find out. More on that below.

Also in this edition:

• Business activity increases amid supply disruptions
• Investors gain leverage in high-yield bond deals
• Warsh hints at new inflation measure as Fed chair
• Lessons from Tim Cook's leadership style

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Consumers have filed a class-action lawsuit against Nintendo of America, alleging that the company has not planned to return money paid for now-illegal tariffs imposed by former President Donald Trump. The suit claims Nintendo raised prices in response to tariffs and seeks restitution for purchases made during the tariff period from February 2025 to February 2026.

Major companies are expected to receive billions of dollars in tariff refunds after the Supreme Court overturned much of Donald Trump's tariff policy, but few have indicated plans to pass the money to customers. FedEx, UPS and DHL have confirmed that they will refund customers who paid duties on shipments for which they acted as importers of record. Costco and Home Depot suggest that they may lower prices in the future, but are not promising direct refunds.

US business activity accelerated in April, driven by the strongest manufacturing growth in nearly four years amid supply disruptions related to war, according to the S&P Global Flash Composite Index. The index rose to a three-month high of 52, with manufacturers seeing a sharp increase in new orders. However, this has also led to the highest level of price increases since mid-2022, as businesses pass on rising costs.

High-yield debt investors are negotiating for better terms as market conditions tighten amid geopolitical tensions. Companies such as Sealed Air, Golden Goose Group and TDC Brands have conceded to stronger legal protections for creditors. This shift marks a significant change from the past decade, when issuers set favorable terms due to heavy inflows into junk bonds.

Federal Reserve chair nominee Kevin Warsh has indicated he wants to measure inflation differently, proposing a "trimmed mean" approach that removes extreme price movements to gauge underlying inflation trends. This method differs from the core inflation rate, which excludes volatile food and energy prices. Warsh's proposal has raised speculation about a possible shift in the Fed's inflation target, although the official target remains 2% as measured by the personal consumption expenditures index.

A poll by CNBC shows that nearly 80% of Americans have changed spending habits because of higher gasoline prices, with more than half expecting the increase to persist for at least six months. More than half of respondents are spending less on entertainment, and 40% have cut spending on groceries and medical care.

US regulators are seeking more information on the $3 trillion private-credit market as investor withdrawals rise and concerns grow around valuations and leverage. The SEC has opened early-stage enforcement inquiries, while the Treasury Department and bank regulators are gathering data on funding, exposures and potential spillovers to the broader financial system. Officials say they are monitoring conditions and do not yet view risks as systemic.

As Tim Cook steps down as CEO of Apple, his tenure offers key leadership lessons on transforming customers into loyal fans, exercising patience in business strategies and maintaining a low profile despite high expectations, writes Dan Bigman, the editor and chief content officer of Chief Executive Group. Cook's style was characterized by a disciplined ego and an emphasis on letting Apple's products speak for themselves, and his time at the helm proved that leaders can produce transformative business results with a steady, understated presence at the top, Bigman writes.