Key Takeaways
- American Express (AMX) reported stronger-than-expected Q3 2025 earnings, with EPS of $4.14 against an estimated $3.99 and revenue of $18.43 billion surpassing the $18.04 billion estimate, while also raising its full-year EPS outlook.
- Former President Trump expressed optimism for an expansion of the Abraham Accords soon, specifically hoping to see Saudi Arabia join the agreements.
- European Central Bank (ECB) Governing Council member Simkus indicated that a "risk-management cut" is a possibility and that the 2028 price forecast will be crucial for the ECB's next policy move.
- Several U.S. regional banks, including Truist Financial (TFC), Fifth Third (FITB), and Regions Financial (RF), reported Q3 2025 provisions for credit losses below analyst estimates, potentially easing some market fears despite a broader sentiment tumble.
- Italy's Prime Minister announced that the 2026 budget would include tax cuts and a spending hike worth €18.7 billion.
Corporate Earnings Outperform Expectations
Financial services giant American Express (AMX) delivered a robust third quarter for 2025, exceeding analyst expectations for both earnings per share and revenue. The company posted adjusted EPS of $4.14 on revenues of $18.43 billion, compared to estimates of $3.99 and $18.04 billion, respectively. American Express also saw its provision for credit losses come in lower than anticipated at $1.3 billion against an estimated $1.41 billion. Following the strong performance, the company raised its full-year EPS guidance to a range of $15.20 to $15.50, up from the previous $15.00 to $15.50, and maintained its revenue growth outlook of 9% to 10%.
In the energy sector, SLB (SLB) also reported a strong Q3 2025, with revenue of $8.93 billion slightly above the $8.9 billion estimate and adjusted EPS of 69 cents beating the 66 cents estimate.
Meanwhile, U.S. regional banks presented a mixed but somewhat reassuring picture. While sentiment tumbled amidst regional banking fears, several institutions reported better-than-expected credit loss provisions. Truist Financial (TFC) announced adjusted EPS of $1.04 and total taxable-equivalent revenue of $5.24 billion, with provisions for credit losses at $436 million, below the estimated $484.9 million. Fifth Third (FITB) reported EPS of 91 cents and net interest income FTE of $1.53 billion, with credit loss provisions of $197 million against an estimated $239 million. Regions Financial (RF) also showed a provision for credit losses of $105 million, lower than the $129.1 million estimate.
Geopolitical Developments and Economic Policy
Former President Trump indicated that he expects an expansion of the Abraham Accords soon, specifically expressing hope that Saudi Arabia would join the normalization agreements. These comments suggest ongoing diplomatic efforts in the Middle East.
In Europe, the Italian Prime Minister outlined the country's 2026 budget, which is set to include significant fiscal measures. The budget entails tax cuts and a spending hike totaling €18.7 billion. This move signals an expansionary fiscal policy for the coming year. Separately, the Dutch government is reportedly engaged in discussions with Chinese authorities regarding Nexperia's expert controls.
Central Bank Watch: ECB Signals Potential Action
ECB Governing Council member Gediminas Simkus offered insights into the central bank's monetary policy outlook, suggesting that a "risk-management cut" is an idea he favors. Simkus emphasized the critical importance of the 2028 price forecast for determining the ECB's next policy steps. He also noted that further euro appreciation remains possible and that inflation and growth risks are currently skewed more to the downside. Simkus concluded that if 2028 inflation falls below the 2% target goal, the ECB should act.
Global Economic Indicators
Brazil's FGV Inflation IGP-10 for October showed a monthly increase of 0.08%, coming in below the estimated 0.20% and the previous month's 0.21%. This indicates a cooling of inflationary pressures in the Brazilian economy.
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.