Key Takeaways
- The U.S. budget deficit expanded significantly to $291 billion in July, despite a notable increase in tariff revenues, as government outlays surged.
- Commonwealth Bank of Australia (CBA) reported robust FY25 cash profit of $10.25 billion, aligning with market expectations and demonstrating strong financial health.
- New Zealand's card spending data for July showed a mixed picture, with retail spending seeing a modest increase of 0.2% month-over-month, while total spending rose by 0.6%.
- Energy giant Shell (SHEL) lost a key legal claim against U.S. LNG operator Venture Global, stemming from a dispute over alleged breaches of contract and unsupplied cargoes.
The global financial landscape saw several significant developments today, ranging from widening fiscal deficits in the United States to robust banking earnings in Australia and a notable legal setback for energy major Shell. These events highlight ongoing economic pressures and corporate performance across key sectors.
U.S. Budget Deficit Widens Despite Tariff Surge
The U.S. government's budget deficit escalated to $291 billion in July, marking a nearly 20% increase from the same period last year. This widening shortfall occurred despite a substantial $21 billion surge in customs duty collections, primarily driven by President Donald Trump's tariffs. Government outlays jumped 10% to a record $630 billion for the month, outpacing a 2% rise in receipts to $338 billion. For the first ten months of the fiscal year, the total deficit reached $1.629 trillion, up 7% year-over-year.
Commonwealth Bank of Australia Delivers Strong FY25 Earnings
Commonwealth Bank of Australia (CBA) announced a solid financial performance for the full year 2025, with cash profit reaching $10.25 billion. This figure represents a 4% increase and was in line with market expectations. The bank's FY Cash Return on Equity (ROE) from continuing operations stood at a healthy 13.5%, while its Net Interest Margin (NIM) remained stable at 2.08%. In the second half of FY25, CBA reported a cash profit of $5.12 billion, slightly exceeding estimates of $5.10 billion.
Mixed Signals from New Zealand Card Spending
In New Zealand, July's card spending data presented a mixed outlook for consumer activity. Retail card spending saw a modest month-over-month increase of 0.2%, a deceleration from the previous month's 0.5% growth. Conversely, total card spending for the month showed a more robust rebound, rising by 0.6% month-over-month, a significant improvement from the previous -0.2% decline. These figures offer insights into the cautious yet gradually improving consumer sentiment in the New Zealand economy.
Shell Suffers Legal Loss Against Venture Global
Energy giant Shell (SHEL) faced a legal setback after losing a claim against U.S. liquefied natural gas (LNG) operator Venture Global. The dispute centered on Shell's accusations that Venture Global breached long-term contracts by selling LNG cargoes on the spot market for higher prices, rather than supplying contracted volumes to customers. Shell had estimated that Venture Global "wrongfully earned" approximately $3.5 billion due to commissioning delays at its Calcasieu Pass facility. The outcome of this legal battle could have implications for future LNG supply agreements and the ongoing arbitration cases involving other companies.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.