Toyota, the world's largest carmaker, is bracing for a $13 billion hit over the next fiscal year from disruptions in the Middle East and continued pressure from tariffs.

• The Japanese company reported a 49% drop in operating profit for the quarter ended in March — a fourth consecutive quarter of declines.
• For the fiscal year, it blamed a nearly $9 billion hit from U.S. tariffs, as well as higher R&D spending, labor and materials costs, despite selling more cars.

🇺🇸 Zoom in: In North America, its most important market, Toyota swung to a $1.2 billion loss in fiscal 2025.

• Hybrids are selling well, but Toyota was late to invest in EVs, which dented earnings.
• Under pressure to build more cars in America, the Japanese carmaker plans to invest up to $10 billion in U.S. manufacturing over the next five years.
• About half of the vehicles Toyota sells in the U.S. are built here (although it also builds cars in Canada and Mexico).

State of play: Toyota said it is now having to sell a lot more cars to reach its breakeven point.

• Last quarter, that trended in the wrong direction.
• In the three months ended in March, it sold roughly 70,000 fewer vehicles than it did a year ago, with global consolidated vehicle sales falling to 2.29 million.

Meanwhile, the company is forecasting a $4 billion impact over the next year from the Iran war, including $2.5 billion in extra materials costs, based on price levels it saw in March.

Going forward, Toyota said it expects operating income to fall again next year.

• CFO Yoichi Miyazaki said the business environment "remains extremely uncertain."

What we're watching: Toyota is known for conservative guidance.

Lime, the micromobility company partially owned by Uber, filed for an IPO today.

Why it matters: This is a blast from the past, reminding us of simpler days when e-scooters were the most polarizing tech disruption, Axios' Dan Primack writes.

💸 By the numbers: Lime reports a $59 million net loss on $887 million of revenue for 2025, compared to a $34 million net loss on $687 million in revenue for 2024.

• It had raised over $900 million in VC funding, from backers like Andreessen Horowitz, Bain Capital Ventures and GV.
• Its peak valuation was $2.4 billion in 2019.

Go deeper, via Bloomberg: "Lime has expanded aggressively in recent years, launching in more than 20 cities including Tokyo and Athens. The company's distinctive green bikes are ubiquitous in London, where it saw usage spike during a Tube strike last year."

🍏 Apple and Intel reached a preliminary agreement for Intel to manufacture some of the chips for Apple devices. (WSJ)

📊 Dunkin' and Buffalo Wild Wings owner Inspire Brands has confidentially filed for an IPO, in what could be one of the biggest-ever restaurant offerings. (CNBC)

Private labels are getting a generational makeover as retailers bet Gen Z will buy in, Axios' Kelly Tyko writes.

• Why it matters: As shoppers pull back and luxury slips further out of reach, retailers are repositioning store brands once viewed as generic bargain buys.

Across retail, companies are investing in private labels built around design, quality and identity — not just price.

• Target, Walmart and Costco have spent years building owned brands with loyal followings.
• Department stores including Macy's, Kohl's and JCPenney are focusing on legacy labels to attract a new generation of buyers.

Between the lines: Gen Z and millennials increased spending on premium-tier, private-label products by 5 percentage points between 2019 and 2025, according to Numerator.

Case in point: JCPenney says its Liz Claiborne label is now its second-bestselling women's brand as younger shoppers seek polished, affordable fashion.

• The retailer is also leaning into the brand's legacy of "democratizing fashion" with a 50th anniversary capsule collection that launched today.

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