Daily News Round Up
Tuesday, 15 Jul 2025
- Renewed Trade Tensions Weigh on Market Sentiment Despite Resilience The announcement of potential 30% tariffs on EU and Mexican imports by President Trump has re-ignited trade war concerns, yet equity markets have demonstrated surprising resilience, with indices posting modest gains despite the news. (WSJ, Reuters) This suggests investors are currently pricing in a manageable level of risk, potentially betting on eventual negotiation or revisions, but the threat adds a layer of uncertainty.
- Economic Growth Shows Mixed Signals, Increasing Sectoral Divergence Despite overall economic resilience, indicators point to a growing divergence within the U.S. economy, with several S&P 500 sectors facing earnings declines and the housing market exhibiting warning signs like rising inventory (up 29% YoY) and falling prices. (Seeking Alpha, Market Watch) This could lead to increased sector rotation and a more selective investment approach, favoring companies with stronger fundamentals.
- AI Investment and Tech Sector Optimism Remain Strong Significant investments in AI infrastructure are being announced by both Meta ($ hundreds of billions) and through a $70 billion public-private package, coupled with NVIDIA resuming H20 chip sales to China, indicate continued strong momentum in the technology sector. (FMP, FMP) These factors are driving upward revisions in price targets for key tech players and fueling investor optimism, even amid broader economic and geopolitical uncertainty.
- Interest Rate Outlook Remains Complex Amidst Conflicting Signals While institutional flow into equities remains attractive given the premium over 2-year Treasurys, Cleveland Fed President Beth Hammack signaled no immediate plans for rate cuts, despite expectations and a resilient U.S. economy. (Fox Business, Seeking Alpha) This divergence highlights the ongoing debate regarding the trajectory of monetary policy and introduces risk for fixed income and interest-rate sensitive parts of the equity market.
- Global Economic Divergence Intensifies, Driven by Trade & Policy China’s Q2 GDP figures exceeded expectations, but Asian equities remain cautious due to escalating trade tariffs and weaknesses in the Chinese real estate sector (China Vanke projecting a $1.67 billion loss). (FMP) Simultaneously, Europe faces potential economic stagnation due to Trump’s proposed tariffs, with Barclays modeling a possible 0.7% hit to Eurozone GDP. This underscores a growing decoupling in global economic performance, requiring investors to carefully calibrate international exposure.
What happened yesterday?
Macro
Economic Growth: Seven of the S&P 500’s 11 sectors are set to post cumulative second quarter earnings declines, according to S&P Global Market Intelligence data. The earnings season should also give the first glimpse of the impacts of President Donald Trump’s tariffs on many US trading partners. (Seeking Alpha)
Economic Growth: The serious uncertainties that emerged and grew beginning six months ago are now diminishing. The worries about harsh times ahead have shrunk. (Forbes)
Economic Growth: Is the housing market on the verge of a meltdown? One economist seems to think so — and he blames 7% mortgage rates. (Market Watch)
Economic Growth: The U.S. economy remains resilient despite headline volatility tied to shifting trade and tariff policies. Meanwhile, we continue to see a lot of volatility in the economic data as the world adjusts to these changing policies. (ETF Trends)
Economic Growth: Nearly one third of the largest 100 markets are now showing annual price declines, according to ICE, a mortgage technology firm. Inventory has been rising steadily over the past year, up 29% in June compared with the same month last year. (CNBC)
Economic Growth: The S&P 500 and Nasdaq 100 are technically overbought, making near-term pullbacks or corrections likely, but such moves would be healthy for the market. Tariff threats and Fed policy uncertainty may create short-term volatility, yet I expect the U.S. economy’s resilience and fairer trade deals to prevail. (Seeking Alpha)
Geopolitics: Oil prices eased on Tuesday due to President Trump’s extended 50-day deadline for Russia regarding the invasion of Ukraine, reducing concerns of a supply shock. Brent crude fell 0.2% to $69.09 per barrel, while WTI crude dropped 0.2% to $66.82 per barrel, following a previous session decline of over $1 for both benchmarks. Trump is considering tariffs of 30% on imports from the EU and Mexico, starting August 1, adding to economic uncertainty and downward pressure on oil prices. Russia is a key supplier to China, India, and Turkey and would face U.S. tariffs on crude buyers. Weapons shipments to Ukraine and the possibility of secondary sanctions on Russian oil continue to create uncertainty in energy markets. (FMP)
Geopolitics: As ever, there is confusion and key questions are left unanswered, but Donald Trump’s announcement on Ukraine and Russia today remains hugely significant. (Skynews)
Geopolitics: Wall Street is being perhaps too glib about the conflict between Russia and Ukraine. (Barrons)
Inflation: Consumer inflation is expected to have accelerated in June (WSJ)
Inflation: June’s inflation report will be looked at not so much for what the headline numbers show than what’s in the underlying data. (CNBC)
Inflation: The value premium is highly correlated with inflation. (Market Watch)
Interest Rates: Despite Nvidia hitting $4 trillion, about 62% of S&P 500 stocks are above their 200-day average, indicating widespread strength. Institutional flow and the equity premium over 2-year Treasurys remain attractive, especially given the expectation of interest rate cuts. (Seeking Alpha)
Interest Rates: Federal Reserve Bank of Cleveland President Beth Hammack said that she does not see an immediate reason to cut interest rates and that the U.S. economy is “really healthy.” (Fox Business)
International relations: China’s Q2 GDP figures exceeded estimates, but Asian equities remained cautious due to escalating U.S. trade tariffs and weakness in the Chinese real estate sector. The Shanghai Composite fell by 1%, and the CSI 300 declined by 0.6%. China Vanke projected a $1.67 billion loss for the first half of the year. Nvidia (NASDAQ:NVDA) received approval to resume sales of its H20 AI chip to Chinese firms, helping S&P 500 Futures recover from early losses. The U.S. is easing chip export restrictions, but Japan and South Korea now face 25% levies. Key index movements included: Nikkei 225 down 0.2%, KOSPI down 0.1%, and Shanghai Composite down 1%, with CSI 300 falling 0.6%. U.S. CPI data is scheduled for release later today. (FMP)
International relations: U.S. equities, including the S&P 500, reached new highs last week despite trade tensions and tariff announcements. Morgan Stanley attributes this to a measured investor response, citing limited direct exposure of S&P 500 industries to countries currently affected by tariffs, and investor confidence in potential tariff revisions, including a 30% levy on the EU and Mexico. Tariff-hit sectors like consumer goods have already been repriced lower. Earnings revision breadth has improved, flipping from -25% in April to +3% currently. Sectors like Financials and Industrials have performed well. EPS revision dispersion is also rising. (FMP)
International relations: A potential 30% U.S. tariff on EU imports, proposed by President Trump with an August 1 deadline, could trigger economic stagnation and euro weakness. Barclays strategists model a higher-risk scenario involving this 30% duty, compared to their baseline of a 15% average tariff. Implementation of the 30% tariff could result in EU retaliation via counter-tariffs on U.S. tech and agriculture, and shave off 0.7 percentage points from eurozone GDP. The European Central Bank (ECB) may be forced to slash rates to 1% by Q1 2026, with potential for deeper cuts if inflation remains below the 2% target. The euro (EUR/USD) could face downward pressure, and eurozone bond yields may be pressured. Barclays identifies the Technology, Autos, Chemicals, and Oil (“TACO”) sectors as most vulnerable in equity markets. Fiscal support is potentially delayed until 2026. While Barclays believes President Trump’s appetite for market volatility is limited, trade policy uncertainty remains elevated. (FMP)
International relations: Gold increased by 0.6% to $3,364.26/oz in Asian trade. The price movement was driven by safe-haven demand due to new U.S. President Donald Trump’s announcements of 30% levies on Mexico and the EU, alongside renewed Russia-Ukraine tensions. The U.S. dollar remained firm, keeping gold futures within a $3,300-$3,500/oz range. Investors are awaiting the upcoming U.S. Consumer Price Index release for interest rate outlook cues. (FMP)
International relations: Two economics professors say the U.S. is facing another big shock from China, and it could be worse than the first. They have a survival plan. (Market Watch)
International relations: Our global markets watchlist tracks nine prominent indexes from economies around the world. Eight of the nine indexes on our world watch list have posted gains through July 14, 2025. (Seeking Alpha)
International relations: Experts fear the president’s announcement will boost the re-election chances of his Brazilian counterpart. (Barrons)
International relations: President Donald Trump said he would hit Russia with “very severe” tariffs if President Vladimir Putin doesn’t reach a cease-fire with Ukraine in 50 days. (Fox Business)
Market Sentiment: RBC Capital Markets raised its 2025 year-end price target for the S&P 500 to 6,250, a 9% increase from the previous target of 5,730. This adjustment reflects strengthening investor sentiment and improving cross-asset signals, bringing the outlook back in line with levels seen in March. The forecast is based on an average of five analytical models, with sentiment and cross-asset models suggesting a fair value near 6,500 as an upper bound, and valuation/EPS and GDP-linked models pointing to a floor of 5,700. RBC forecasts $258 in 2025 S&P 500 earnings, below the consensus of $265. The S&P 500 has risen over 6% year-to-date. RBC maintains a neutral outlook for the second half of 2025, and anticipates U.S. GDP to remain within a 1.1–2% range. (FMP)
Market Sentiment: Investor sentiment reached its most bullish level since February, driven by a five-year high in profit expectations and a record jump in risk appetite, according to Bank of America’s July Global Fund Manager Survey. Cash allocations dropped to 3.9%, the lowest level since early 2022, triggering a “sell signal.” Equity positioning remains below historical extremes. Cyclical and growth stocks have increased exposure, while defensives lag. U.S. equity markets are nearing all-time highs, and global PMI data is improving, with continued low volatility in government bonds. (FMP)
Policy: President Donald Trump will unveil a $70 billion investment package on Tuesday, sourced from public and private entities, focused on artificial intelligence and energy infrastructure. The announcement will be made at the first-ever Pennsylvania Energy and Innovation Summit, hosted by Senator David McCormick at Carnegie Mellon University near Pittsburgh, Pennsylvania. The funding will support the construction of next-generation data centers, expansion of clean and traditional power generation, upgrades to grid infrastructure, and the launch of AI training programs and apprenticeships. Over 60 industry leaders are expected to attend, including CEOs Larry Fink (BlackRock), Alex Karp (Palantir), Dario Amodei (Anthropic), Darren Woods (Exxon Mobil), and Mike Wirth (Chevron). The initiative aims to reshape the U.S. innovation landscape and signals bipartisan interest in technology and energy leadership. (FMP)
Policy: U.K. Finance Minister Rachel Reeves will deliver her annual Mansion House speech on Tuesday evening. The address is a crucial opportunity to signal to the investment community how she will inject growth back into the U.K. economy. (CNBC)
Policy: Federal Reserve Chair Jerome Powell requested an inspector general review of the central bank’s $2.5 billion headquarters renovation after Trump officials criticized cost overruns. (Fox Business)
Policy: Britain’s financial regulator will scrap the need for most listed companies to publish lengthy prospectus documents before issuing new shares as part of its latest efforts to boost the appeal of the country’s public markets. (Reuters)
Policy: Economic experts say the Federal Reserve is unlikely to cut rates despite President Donald Trump’s demands due to uncertainty from tariff hikes. (Fox Business)
Policy: President Donald Trump renewed his criticism of Federal Reserve policy under Jerome Powell, calling the chair a “knucklehead” and advocating for interest rates to be at less than 1%. (Fox Business)
Policy: Investors don’t seem to give much credence to claims that cost overruns will give President Trump justification to oust Fed Chair Powell. (Market Watch)
Policy: U.S. markets have seemed to “keep calm and carry on” this year to date — despite dramatic policy changes that may have delayed impacts on the economy, according to David Kelly, chief global strategist at J.P. Morgan Asset Management. (Market Watch)
Policy: U.S. President Donald Trump’s threatened 30% tariff on European Union imports is complicating the European Central Bank’s decision-making but is unlikely to derail plans for a pause in rate cuts next week, five ECB policymakers told Reuters. (Reuters)
Policy: The Federal Reserve has brought in its inspector general to review a building expansion that has drawn fire from the White House, according to a source familiar with the issue. “We’ve got a real problem of oversight and excess spending,” Kevin Hassett, director of the National Economic Council, said Monday on CNBC. (CNBC)
Trade: U.S. equities rose on Monday amid President Trump’s comments suggesting potential de-escalation in trade tensions. The S&P 500 increased by 0.1%, the Dow Jones Industrial Average gained 88 points (+0.2%), and the NASDAQ Composite advanced 0.3% to a record high of 20,640.33. Trump proposed a 30% levy on imports from Mexico and the European Union, but indicated openness to negotiations. An August 1 tariff implementation deadline is looming. Q2 earnings season begins this week, with JPMorgan Chase, Bank of America, Wells Fargo, Netflix, Johnson & Johnson, and 3M scheduled to report. Fastenal (NASDAQ:FAST) shares jumped after beating Q2 estimates. (FMP)
Trade: The European Union is preparing a €21 billion tariff response to a planned 30% import tariff on EU and Mexican goods by the U.S., set to take effect on August 1. Italy’s Foreign Minister, Antonio Tajani, supports “zero tariffs” for Canada, the U.S., Mexico, and Europe and warns of a second phase of EU tariffs if talks fail. EU Trade Commissioner Maros Sefcovic has extended the suspension of retaliatory measures until early August. U.S. customs duty collections reached a record $113.3 billion this fiscal year. The potential implementation of mutual tariffs poses a risk to automotive, aerospace, and agriculture sectors, potentially reversing recent gains in U.S. equities and global manufacturing, and triggering downgrades and earnings pressure for companies with high European exposure. (FMP)
Trade: U.S. equities closed lower on Friday, ending a week negatively after President Trump announced a 35% tariff on Canadian imports and threatened tariffs on over 20 other countries. The Dow Jones closed down 279.13 points, a decrease of 0.63%, at 44,371.51. The S&P 500 fell 0.33% to 6,259.75, and the Nasdaq Composite declined 0.22% to 20,585.53. June CPI is forecasted to rise 0.3% month-over-month (MoM), and retail sales data will be released on Thursday. Big banks, including JPMorgan, Citigroup, and Wells Fargo, will begin Q2 earnings season. The Federal Reserve’s rate outlook is uncertain due to potential inflationary pressures linked to tariffs. Analyst downgrades are anticipated in industrial, tech, and consumer discretionary sectors. (FMP)
Trade: Markets face a turbulent week driven by U.S. President Trump’s tariffs and other factors. Trump has imposed 30% tariffs on imports from Mexico and the European Union, effective August 1, adding to earlier tariffs on Canada, South Korea, Japan, Brazil, and copper. The EU will delay countermeasures until early August. S&P 500 earnings and margins may be negatively affected.
June’s Consumer Price Index (CPI) report is due Tuesday, with forecasts projecting a 0.3% month-over-month (MoM) rise and a year-over-year (YoY) increase to 2.6% from May’s 2.4%. Markets anticipate possible rate cuts in September.
Q2 earnings season begins, with JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC), Netflix (NFLX), and Johnson & Johnson (JNJ) reporting. S&P 500 profit growth is now expected at 5.8% YoY, down from 10.2% in April.
Bitcoin (BTC) reached a new all-time high near $123,000, ahead of “Crypto Week” on Capitol Hill, featuring debates on the GENIUS Act, CLARITY Act, and Anti‑CBDC Surveillance State Act. There have been record Bitcoin ETF inflows.
Oil prices rose ahead of a Trump statement on Russia, potentially involving a 500% tariff on Russian energy exports. (FMP)
Trade: U.S. stock futures declined Monday due to President Trump’s announcement of 30% tariffs on imports from Mexico and the European Union, effective August 1, escalating fears of a renewed global trade war. S&P 500 futures were down 35 points (-0.6%), Nasdaq 100 futures fell 120 points (-0.5%), and the Dow Jones dropped 250 points (-0.6%) at 02:55 ET. Tariff collections surged to $113.3 billion in the first nine months of fiscal 2025. China’s June trade surplus widened to $114.77 billion, exceeding May’s $103.22 billion. Exports rose 5.8% year-over-year (YoY) against an expected 5%, while imports increased 1.1% YoY. Bitcoin reached a session high of $122,530, settling at $122,020, a 3.7% increase, during “Crypto Week” in Washington, and surpassing the $120,000 mark. (FMP)
Trade: Aircraft, machinery, cars, chemicals and medical devices are the leading big-ticket items on the latest list of U.S. goods the European Commission has proposed to impose tariffs on if talks with Washington do not yield an agreement on trade. (Reuters)
Trade: DAX rises as hopes for a US-EU trade deal lift sentiment. Outlook hinges on trade headlines, US CPI data, and central bank policy signals. (FXEmpire)
Trade: Implied volatilities fell across asset classes last week despite renewed trade headlines as investors largely shrugged off the new tariff threats. Among international equities, Brazil was the only country to see much of a reaction to Trump’s tariffs, with EWZ 1M implied volatility gaining 2 pts wk/wk to 25%. (Seeking Alpha)
Trade: Trade wars, CPI, and Trump/Powell (InvestorPlace)
Trade: Stocks have climbed well off their post-Liberation Day lows, a sign that investors have moved past the trade-related concerns that led to those lows in the first place. They could be right—but some investors say that waving aside trade matters is a risky bet. (Investopedia)
Trade: Wall Street shows resilience as major US indices post modest gains despite Trump’s 30% tariff threats. Investors focus on Q2 earnings over trade tensions. (FXEmpire)
Trade: White House economic advisor Kevin Hassett was asked why President Donald Trump’s tariff policies have yet to stoke widespread price inflation. Hassett pointed to a White House report finding imported goods prices have fallen in recent months, and credited Trump’s “leadership” for boosting demand for made-in-America products. (CNBC)
Trade: If we face a tariff re-escalation with China, both countries will lose as equity markets decline in the East and West temporarily. Staggered detente appears more favorable economically. (Seeking Alpha)
Trade: The economy’s resilience so far to President Trump’s global trade war risks emboldening him and unleashing the sort of economic devastation that economists have long feared. (NYTimes)
Trade: President Donald Trump said he is “disappointed” with Russian President Vladimir Putin over his ongoing invasion of Ukraine. “We’re going to be doing very severe tariffs, if you don’t have a deal in 50 days, tariffs at about 100%, they call them secondary tariffs,” Trump said at the White House. (CNBC)
Trade: A single decision has been crucial for a global equities strategy this year: selecting the weights for foreign vs. US stocks. (Seeking Alpha)
Industry
Automotive: Toyota and Hyundai Motor may have a beef with U.S. protectionism, but they have one thing in common with President Donald Trump: when it comes to global car markets, it’s America first for Asia’s legacy automakers. (Reuters)
Aviation: India’s aviation watchdog, the Directorate General of Civil Aviation (DGCA), has ordered immediate inspections of fuel switch locks on Boeing 787 Dreamliner and 737 series aircraft following a preliminary crash investigation. The Air India tragedy last month resulted in 260 deaths shortly after takeoff when fuel switches unexpectedly moved to the cutoff position. The investigation revealed both fuel switches simultaneously flipped from “run” to “cutoff” without deliberate pilot input. A 2018 FAA advisory urged inspection of switch lock designs but did not mandate it. Inspections now focus on fuel switch lock integrity and accidental movement safeguards. South Korea plans to follow suit, and several international carriers are conducting voluntary inspections. Boeing and the U.S. Federal Aviation Administration (FAA) maintain the switches are safe when properly maintained. No new FAA mandates have been issued, but precautionary checks could pressure Boeing to re-engineer switch lock mechanisms. (FMP)
Defense: Citi analyst Jason Gursky sees this year’s half going better for large U.S. defense contractors. (Barrons)
Retail: After seven consecutive quarters of double-digit growth, the LSEG Retail/Restaurant Index posted a 7.5% blended earnings growth rate for Q1 2025. Consumer spending continues to benefit from a resilient labor market, though momentum has begun to moderate. (Seeking Alpha)
Semiconductors: Global smartphone shipments increased 1% to 295.2 million units in the second quarter, despite tariff concerns and macroeconomic uncertainty, according to preliminary data from research firm IDC. (Reuters)
Corporate
Amer Sports: Although the stock has flattened since that earnings surge, a bit of momentum is building among Wall Street analysts. (Investors Business Daily)
BlackRock, Inc: The consensus price target for BlackRock, Inc. (NYSE:BLK) currently stands at $1,086.33, unchanged over the last month and quarter, after decreasing from $1,107.88 over the past year. Citigroup analyst William Katz has set a price target of $900 for the company. BlackRock was founded in 1988 and is headquartered in New York City. The firm is experiencing robust revenue growth and growth in fee revenues with substantial investor inflows into ETFs and fixed income, supported by acquisitions in infrastructure and private markets, and record assets under management (AUM). BlackRock is expected to announce its second-quarter earnings results soon, with Wall Street anticipating positive growth. (FMP)
Blue Owl / KKR: The sector has been hammered, but Oppenheimer rates both Blue Owl and KKR stock at Buy, and sees double-digit percentage upside. (Barrons)
J.B. Hunt Transport Services, Inc.: J.B. Hunt Transport Services (NASDAQ:JBHT) is preparing to release its second-quarter earnings on July 15, 2025. Analyst consensus price targets have fluctuated: $164 last month, a slight increase from $153.4 the previous quarter, but down from $170.15 last year. Deutsche Bank analyst Amit Mehrotra projects a price target of $230. Historically, the stock has shown a positive one-day return following earnings announcements in 55% of cases over the past five years. The stock recently rose by 10.2% following a U.S.-China trade deal, and the potential total return is estimated at 20%. (FMP)
JPMorgan / Wells Fargo: JPMorgan, Wells Fargo lead the parade of banks whose quarterly results may offer clues on how consumers and companies fared during a volatile period. The S&P 500 climbed 0.1%, and the Nasdaq composite rose 0.3% to a record. (WSJ)
Kaival Brands Innovations Group, Inc.: Kaival Brands Innovations Group, Inc. (NASDAQ:KAVL) is trading at $0.4916, with a target price of $0.2995, indicating a potential downside of approximately 39.08%. PT Hanjaya Mandala Sampoerna Tbk (PHJMF) is trading at $0.05 with a target price of $0.0281, showing a potential downside of approximately 43.90%. These significant gaps between current and target prices suggest challenges related to market competition, regulatory changes, or shifts in consumer preferences. (FMP)
Meta Platforms Inc: Meta Platforms Inc. (META) plans to invest “hundreds of billions of dollars” in building the world’s largest AI supercomputing infrastructure to pursue artificial general intelligence (AGI). New data centers, Prometheus (launching in 2026) and Hyperion (scaling up to 5 gigawatts), will be among the largest AI-focused facilities globally, with additional “titan clusters” under development; one is reportedly the size of Manhattan. Meta aims to be the first AI lab to deploy a gigawatt-plus supercluster, potentially surpassing OpenAI, Google DeepMind, and Anthropic. The company is engaging in multi-million-dollar AI hiring packages, focusing on its Llama model family. Meta is funding this investment through its “robust core advertising business.” Meta shares rose 1% following the announcement and are up over 20% year-to-date (YTD). (FMP)
Morgan Stanley / Goldman Sachs / Wells Fargo: Morgan Stanley , Goldman Sachs and Wells Fargo will pay a total of $120 million to settle a lawsuit claiming they hid conflicts of interest while sales of ViacomCBS shares helped fuel the collapse of Bill Hwang’s Archegos Capital Management. (Reuters)
MP Materials: Shares of rare-earth firm MP Materials continue soaring after a deal with the Defense Department. Analysts are lifting their price targets. (Barrons)
Nvidia Corporation: NVIDIA Corporation (NVDA) will resume sales of its H20 GPU in China following U.S. government assurances of export license approvals. Shares rose 3.3% to $169.40 in extended trade. CEO Jensen Huang confirmed applications are being filed to resume H20 chip sales, previously blocked in 2025. China generated $17 billion in revenue for NVIDIA in FY2025, representing 13% of total revenue. The company had anticipated up to $5.5 billion in charges due to chip bans. A new GPU tailored for Chinese AI smart factories and logistics was unveiled. Easing tariffs and improved diplomatic engagement in May and June have created a growth runway for NVIDIA. The H20 chip remains popular among Chinese AI developers, including Tencent, DeepSeek, Baidu (BIDU), and Alibaba (BABA). (FMP)
Omnicom Group Inc: Omnicom Group Inc. (NYSE:OMC), a leading advertising and marketing company established in 1944 with operations in the United States, Canada, Europe, and Asia, has received a more optimistic outlook. Morgan Stanley recently set a price target of $95, up from a consensus price target that previously fluctuated between $82.71 and $80 over the past year. The company was upgraded to a Zacks Rank #2 (Buy), anticipating a 29.4% upside. Investors should monitor earnings reports, industry trends, and strategic initiatives, which could influence the stock price. (FMP)
Oracle Corporation: Oracle Corporation announced on Tuesday a $3 billion investment in AI and cloud infrastructure across Germany and the Netherlands over the next five years. $2 billion will be allocated to Germany, and $1 billion to the Netherlands. The investment will support new cloud regions, modernized data centers, and enhanced AI capabilities, driven by rising demand for sovereign cloud infrastructure, AI regulation, data privacy laws, and digital sovereignty goals in the EU. (FMP)
Starling Bank: Starling Bank is considering a listing in New York as part of its expansion plans in the United States, the Financial Times reported on Tuesday. (Reuters)
Tesla Inc: UBS analysts consider Tesla (NASDAQ:TSLA) “fundamentally overvalued” heading into Q2 2025 earnings. They anticipate Q2 2025 earnings per share (EPS) of $0.43, aligning with consensus, and auto gross margins (ex-credits) of 14%, slightly above the Street’s 13.5%. UBS expects the broader U.S. auto, auto-tech, and parts sector’s second-quarter earnings season to surpass estimates due to better production and FX. The U.S. auto space has experienced a ~20% average valuation rerating since March, and UBS warns of risks to regulatory credit revenue and demand due to EV credit phase-outs, noting that price reaction will depend on CEO Elon Musk’s commentary. (FMP)
Tesla Inc: Tesla Inc. launched the Model Y SUV in India on Tuesday, with a starting price of ₹58 lakh (approximately $70,000), representing the highest global price point for the vehicle. Deliveries are expected to begin in Q3 2025, targeting India’s luxury EV segment. The move is driven by surplus global production capacity and stagnating EV demand in the U.S. and China. Tesla is initially importing models, despite import duties exceeding 100% in some cases. Tesla will initially compete with luxury German brands like BMW and Mercedes-Benz, focusing on buyers of these brands. A showroom has opened in Mumbai, with long-term plans for a local manufacturing facility still under negotiation. (FMP)
TSMC: Morgan Stanley is recommending investors buy shares of Taiwan Semiconductor Manufacturing Co. (TSMC) ahead of its Q2 earnings release on July 17. TSMC’s preliminary Q2 revenue was NT$933 billion, a 16% increase quarter-on-quarter in USD terms. Morgan Stanley projects a high likelihood of TSMC raising its full-year revenue guidance and forecasts 27% year-over-year (YoY) revenue growth for 2025. A $165 billion U.S. fab investment is expected to mitigate tariff risks. The bank’s price target for TSMC is NT$1,288, representing a 17% upside. (FMP)
