Key Takeaways
- Google (GOOGL, GOOG) has committed to signing the European Union's voluntary AI Code of Practice, a significant move aligning with the EU's pioneering AI Act despite the company's expressed concerns about potential impacts on innovation and trade secrets.
- Bunge Global SA (BG) and Humana Inc. (HUM) reported robust second-quarter earnings, with both companies surpassing revenue estimates. Bunge's adjusted EPS reached $1.31 on revenue of $12.77 billion, while Humana posted adjusted EPS of $6.27 and revenue of $32.39 billion, also raising its full-year adjusted EPS guidance.
- Eighteen EU countries have requested at least €127 billion under the new Security Action for Europe (SAFE) instrument, a €150 billion loan facility designed to bolster common defense procurement and strengthen Europe's defense industrial base.
- Global market sentiment remains mixed, with European bourses showing varied performance and US futures flat to firmer ahead of key economic data and major tech earnings. Currency markets exhibit cautious optimism, and grain markets have eased.
Google (GOOGL, GOOG) announced today its agreement to join the European Union's voluntary Artificial Intelligence Code of Practice, a crucial step towards complying with the bloc's landmark AI Act. This decision comes as the EU aims to establish a global precedent for AI governance, with the voluntary code designed to offer clarity for tech companies navigating the new regulations. The code, formulated by 13 independent experts, requires firms to summarize content used to train general-purpose AI models and demonstrate adherence to EU copyright law. While Google expressed hopes that the framework would facilitate European access to secure and cutting-edge AI tools, it also voiced concerns that the Act and Code might slow Europe's AI development, particularly regarding copyright, approval delays, and the potential exposure of trade secrets. The AI Act's general-purpose AI model rules are set to take effect on August 2, 2025. Microsoft (MSFT) is also expected to sign the code, whereas Meta Platforms (META) has opted out, citing lingering legal uncertainties.
In corporate earnings news, Bunge Global SA (BG) reported a strong second quarter for 2025, with adjusted earnings per share (EPS) of $1.31, significantly surpassing analyst estimates of $1.09 to $1.14. The agribusiness giant's revenue reached $12.77 billion, also exceeding expectations. Bunge's net income for the quarter stood at $354 million, with GAAP diluted EPS at $2.61, a substantial increase from $0.48 in the prior year. The company confirmed the completion of its merger with Viterra and maintained its full-year adjusted EPS forecast of approximately $7.75, excluding the impact of Viterra and the recently sold corn milling business.
Healthcare provider Humana Inc. (HUM) also delivered a solid performance in Q2 2025, reporting adjusted EPS of $6.27 on adjusted revenue of $32.39 billion. While adjusted EPS slightly missed the highest estimates, revenue surpassed the anticipated $31.89 billion. Humana's net income for the quarter was $545 million, with GAAP EPS at $4.51. The company raised its full-year 2025 adjusted EPS guidance to about $17, up from previous projections of about $16.25, and increased its full-year consolidated revenue outlook to at least $128 billion. The revenue growth was primarily driven by higher premiums per member from Medicare and state-based contracts, alongside membership growth in state-based and stand-alone PDP businesses.
On the geopolitical front, eighteen European Union countries have formally requested at least €127 billion under the new Security Action for Europe (SAFE) instrument. This initiative, with a lending capacity of up to €150 billion, is designed to finance urgent and large-scale investments in the European defense technological and industrial base through direct loans to member states. The SAFE instrument aims to boost production capacity and address existing capability gaps, ultimately strengthening the EU's overall defense readiness. Bulgaria, for instance, intends to request a loan of €2.7 billion to €3 billion under the program.
Global markets are exhibiting a cautious optimism amidst mixed economic data and ongoing geopolitical developments. European bourses are mixed following a slew of earnings reports, while US futures are flat to firmer ahead of a busy data docket and upcoming earnings from tech giants like Meta and Microsoft. The US Dollar rally has paused as markets await Q2 flash GDP figures and the Federal Open Market Committee (FOMC) decision. In currency markets, the Euro and British Pound are gaining strength, while the Japanese Yen remains under pressure. Meanwhile, grain markets eased overnight due to strong US crop ratings, technical selling, and a firmer dollar. Indian equity benchmarks, Nifty50 and BSE Sensex, opened flat amid concerns over potential US tariffs on India.
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.