Key Takeaways
- President Trump has affirmed that the August 1st deadline for new "reciprocal" tariffs will not be extended, impacting a range of imported goods and potentially increasing consumer costs in the U.S.
- Crude oil prices have surged, with WTI crude reaching a two-week high, driven by renewed threats of sanctions and tariffs on Russian energy exports if a Ukraine ceasefire is not reached within 10 days.
- GSK (GSK) anticipates a slight lowering of its gross margin in the second half of the year due to expected tariffs, while Chinese battery giant CATL ((/stock/300750)) reported a 33% year-on-year net income increase in Q1 2025 despite tariff risks.
- Turkey has announced new oil discoveries totaling 57 million barrels, valued at approximately $4 billion, bolstering its energy independence efforts.
- A growing bipartisan push in the U.S. House of Representatives aims to force a vote on a congressional stock trading ban, creating a new challenge for Speaker Mike Johnson.
Global financial markets are on edge as the August 1st deadline for new "reciprocal" tariffs approaches, with President Donald Trump confirming no further extensions will be granted. This decision is set to impact a variety of imported goods, potentially leading to increased costs for American consumers.
The energy sector is experiencing significant volatility, with crude oil prices seeing a notable surge. West Texas Intermediate (WTI) crude oil (CLU25) reached a two-week high, climbing over 3.5% on Tuesday alone. This rally is largely attributed to President Trump's renewed threats of imposing "secondary sanctions" and 100% tariffs on Russian energy exports if Russia fails to reach a ceasefire agreement with Ukraine within the next 10 days. JPMorgan Chase has warned that such triple-digit tariffs on Russian oil could lead to a supply shock given the scale of Russian exports and limited OPEC spare capacity.
In corporate news, pharmaceutical giant GSK (GSK) expects a slight reduction in its gross margin during the second half of 2025 due to anticipated tariffs. However, the company has raised its 2025 guidance following a strong Q2 performance, driven by sales of HIV and cancer drugs. Meanwhile, Chinese battery manufacturer CATL ((/stock/300750)) reported robust first-half results, with net income surging 33% year-on-year to 30.5 billion yuan and revenue reaching 178.9 billion yuan. Despite strong Q1 performance, CATL faces strategic uncertainties due to its exposure to the U.S. market and potential tariff risks.
Adding to the energy landscape, Turkey has announced significant new oil discoveries. Energy and Natural Resources Minister Alparslan Bayraktar stated that 57 million barrels of oil have been found across various regions, with an estimated value of approximately $4 billion. These discoveries are seen as a crucial step towards strengthening Turkey's energy independence.
In political developments, a bipartisan effort is gaining momentum in the U.S. House of Representatives to force a vote on banning congressional stock trading. Representative Anna Paulina Luna (R-Fla.) plans to file a discharge petition in September to bring legislation to a floor vote, creating a potential headache for Speaker Mike Johnson (). This push comes amid concerns about potential insider trading and aims to restore public trust in lawmakers.
Diageo (DGE), the global spirits company, has appointed Deirdre Mahlan as its interim Chief Financial Officer, effective August 18, 2025. Mahlan previously served as Diageo's CFO from 2010 to 2015.
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.