Global Economy Navigates Trade Tensions and Earnings Season Surprises

SLB (SLB) delivered a robust performance in the second quarter of 2025, with revenue reaching $8.55 billion, exceeding estimates of $8.48 billion. The oilfield services giant also reported Well Construction revenue of $2.96 billion, surpassing the estimated $2.91 billion. Additionally, adjusted EBITDA stood at $2.05 billion against an estimated $2.03 billion, and adjusted EPS came in at $0.74, beating the $0.73 estimate. Capital expenditures were notably lower than anticipated at $311 million compared to the estimated $442.2 million.

Former US President Donald Trump voiced strong criticism against the Federal Reserve's monetary policy, asserting that its actions are "choking out the housing market." He contended that the Federal Reserve Board is "equally to blame" for the current economic situation and argued that the country "deserves to be at 1% rate." This reflects ongoing political pressure on the central bank regarding interest rates.

Italy's Finance Minister Giorgetti has raised concerns over the potential economic fallout from escalating trade disputes and broader geopolitical tensions. His remarks underscore the growing anxiety among global economies about the impact of protectionist measures and trade wars on international commerce and stability.

In a related development on the trade front, Japan's Tariff Negotiator Akazawa is reportedly making arrangements to visit the United States next week for further discussions. This upcoming meeting highlights ongoing efforts to navigate complex international trade relations amidst a backdrop of rising global tensions.

Meanwhile, the second week of earnings season is in full swing, with major companies like Alphabet (GOOGL) among those slated to report their financial results. The broader earnings season continues to provide key insights into corporate performance and the overall economic landscape.