Key Takeaways
- South Korea is set to propose over $100 billion in investment as part of a tariff deal with the United States, signaling significant economic cooperation.
- Japan's Chief Trade Negotiator Akazawa clarified that the Boeing purchase deal includes existing purchase plans, while emphasizing mutual understanding and a trusting relationship with the U.S. on trade.
- Major European companies reported mixed Q2/Q1 2025 earnings, with TotalEnergies (TTE) and Vodafone (VOD) showing some misses on adjusted earnings and revenue, while Reckitt (RKT) and Lloyds (LLOY) generally outperformed estimates.
- STMicroelectronics (STM) warned of lower sales and uncertainty, highlighting potential headwinds in the semiconductor sector.
- Economic confidence indicators in Norway and Germany showed declines, with Norway's industrial confidence falling and Germany's consumer confidence worsening in August.
South Korea is reportedly preparing a substantial offer of over $100 billion in investment as a component of its ongoing tariff negotiations with the United States, according to Yonhap. This significant proposal underscores efforts to solidify trade relations and potentially alleviate tariff pressures between the two nations.
Meanwhile, Japan's Chief Trade Negotiator Akazawa provided updates on trade discussions with the U.S. Akazawa confirmed that the Boeing purchase deal incorporates existing purchase plans. He also stated that there was "no gap in understanding" between Japan and the U.S. on the trade deal and that a "trusting relationship" has been established. Akazawa declined to comment on U.S. Treasury Secretary Bessent's remarks regarding the quarterly review and noted that there had been no discussions with President Trump or U.S. officials on how to implement the deal. Japan's focus in trade talks has consistently been on investment, with the current trade deal aligning with Japan's interests.
In corporate earnings, TotalEnergies (TTE) reported Q2 2025 adjusted earnings per share of $1.51, falling short of the estimated $1.63. Adjusted net income stood at $3.58 billion against an estimated $3.67 billion, and adjusted EBITDA was $9.69 billion compared to an estimated $10.11 billion. The company's production was 2.50 million BOE/D, slightly below the estimated 2.51 million, and it plans to continue share buybacks for up to $2 billion.
Vodafone (VOD) announced Q1 2025 earnings with organic service revenue up 5.5%, exceeding the estimated 4.92%. Service revenue reached €7.86 billion, slightly above the estimated €7.8 billion. However, the company revised its full-year adjusted free cash flow guidance to €2.4 billion to €2.6 billion from the previous €2.6 billion to €2.8 billion, while reiterating its FY 2026 guidance.
Reckitt (RKT) delivered strong Q2/H1 2025 earnings, with core like-for-like sales increasing by 5.3%, significantly above the estimated 3.42%. H1 adjusted operating profit was £1.71 billion, slightly exceeding the estimated £1.69 billion. The company raised its full-year like-for-like sales guidance to +3% to +4% from +2% to +4% and announced a £1.0 billion share buyback program over the next twelve months.
Lloyds (LLOY) reported Q2 2025 statutory pretax profit of £1.99 billion, surpassing the estimated £1.75 billion. Net interest margin was 3.04%, slightly below the estimated 3.05%, and operating costs were £2.32 billion, better than the estimated £2.34 billion. The bank declared an interim dividend per share of 1.22 pence and confirmed no further charges related to motor finance.
Anglo American (AAL) provided Q2 2025 production figures, reporting diamond production of 4.14 million carats and copper output of 173,300 tons. The company maintained its full-year diamond production forecast of 20 million to 23 million carats.
BT Group (BT.A) reported Q1 2025 adjusted revenue of £4.88 billion, below the estimated £4.96 billion, but adjusted EBITDA came in at £2.05 billion, slightly above the estimated £2.04 billion. Openreach adjusted revenue was £1.57 billion, exceeding estimates, though Openreach broadband lines fell by 169,000. The company also announced Patricia Cobian will join as Group CFO.
In the semiconductor sector, STMicroelectronics (STM) expects lower sales and issued a warning about uncertainty, according to the Wall Street Journal.
On the economic front, Norway's Industrial Confidence for Q2 decreased significantly to 0.9 from a previous 4.0. The country's unemployment rate for July also rose to 4.8% from 4.5%. In Germany, the GfK Consumer Confidence for August worsened to -21.5, missing the estimated -19.3 and down from the previous -20.3.
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.