Rheinmetall AG (ETR: RHM) has been one of the standout performers in Europe’s defense sector this year, with its stock price nearly tripling since January.

RHM share price surge reflects investor enthusiasm for defense firms amid heightened geopolitical tensions and increased military spending across the continent.

Despite impressive rally and strong fundamentals, however, “Blue Whale Growth Fund” manager Stephen Yiu is taking a cautious stance.

While he remains bullish on the sector’s long-term prospects, Yiu believes the current valuation levels are too stretched to justify new investments– even in top-tier names like Rheinmetall stock.

Why has Rheinmetall stock soared in 2025?

Rheinmetall’s meteoric year-to-date rally is largely attributed to a wave of defense spending commitments from European governments and NATO allies.

As geopolitical instability persists, countries across the continent have pledged to bolster their military capabilities, triggering a rush of capital into defense manufacturers.

Rheinmetall, known for its armored vehicles and munitions, has been a major beneficiary of this trend.

Investors have responded enthusiastically to the firm’s expanding order book and strategic positioning within Europe’s defense ecosystem.

The broader Stoxx Europe Aerospace and Defense index has soared over 70% year-to-date, but RHM shares’ performance has far outpaced the average, reflecting its perceived leadership in the sector.

Why does Yiu caution against buying RHM shares?

Despite Rheinmetall’s strong fundamentals and sector leadership, Stephen Yiu is wary of initiating or expanding positions at current prices.

In a recent interview with CNBC, the Blue Whale Growth Fund manager agreed he appreciates the quality of European defense firms, but said valuations have reached levels he believes are “quite extreme.”

Yiu emphasized that the sector’s recent gains have already priced in much of the anticipated fiscal stimulus, and that it could take years before government commitments translate into meaningful earnings growth.

“The easy money has already been made,” he argued, cautioning that investors entering now may face limited upside in Rheinmetall shares.

His fund has already taken profits on several defense stocks, including Italian firm Leonardo, and is now adopting a more selective approach.

Recommendation for playing Rheinmetall AG

RHM stock may be unattractive to own at stretched valuation also because it doesn’t pay a healthy dividend at writing.

Yiu’s current strategy, therefore, reflects a balance between conviction and prudence.

While the London based “Blue Whale Growth” fund manager hasn’t exited the European defense sector entirely, he’s scaled back exposure and is avoiding fresh buys in high-flying names like Rheinmetall stock.

According to Stephen Yiu, these names may still continue to do well, but the risk-reward profile has shifted unfavourably.

So, for new investors, he recommends waiting for a more attractive entry point, as valuations normalize and earnings begin to catch up with expectations.

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Morgan Stanley on Monday warned that it foresees “elevated volatility in key performance indicators and financial metrics” for online dating companies Match Group and Bumble in Q2 and 2025, with few signs that recent turnaround efforts are bearing fruit.

“The two online dating companies are under new management and are emphasizing faster product development and leaner operations as they attempt to set-up for medium-term user growth,” the analysts said.

However, they added that this will cause turbulence in key performance indicators and financial metrics in the near term “especially as the turnaround efforts in 2024 didn’t drive meaningful improvements.”

“As a result, we expect minimal evidence in the quarter that will help frame the turnarounds’ timing or change of success with industry-wide top of funnel trends pointing to further deceleration,” the analysts said.

Both companies are restructuring operations in response to shifting user behaviours and an industry-wide slowdown in app engagement.

The online dating segment, once a dependable source of subscription revenue, has faced challenges ranging from inflation and user fatigue to a saturation of similar services.

Bumble slashes workforce, raises revenue forecast

Bumble Inc. has taken sweeping steps to realign its operations, announcing last month that it will lay off approximately 240 employees—nearly 30% of its global workforce—as part of a broad cost-cutting initiative.

Despite the layoffs, the company raised its second-quarter revenue forecast to a range of $244 million to $249 million, compared to its previous guidance of $235 million to $243 million.

Adjusted EBITDA is now expected to fall between $88 million and $93 million, up from the earlier range of $79 million to $84 million.

The company posted $247.1 million in first-quarter revenue, slightly above analyst estimates.

Bumble said the restructuring would result in one-time costs of $13 million to $18 million, primarily in severance and benefits, to be recognized across the third and fourth quarters.

Still, management expects the plan to yield $40 million in annual savings, which will be reinvested in product and technology enhancements, including AI-driven matchmaking tools.

Bumble stock is down by 0.82% YTD, while the broader NASDAQ index has gained over 9.6% during the same period.

Match trims costs, turns to AI and Gen-Z friendly features

In May, Match Group—the parent company of Tinder, Hinge, and OkCupid—announced plans to cut 13% of its workforce.

The move marked the first major strategic action under new CEO Spencer Rascoff, who took over in February with a mandate to reinvigorate user engagement and reverse declining trends.

The company’s March-quarter revenue fell 3% to $831 million, though it narrowly topped Wall Street expectations.

Match has forecast second-quarter revenue between $850 million and $860 million, slightly above analysts’ consensus.

Match group share price is up by just over 5% YTD, while the broader NASDAQ index has seen a growth of over 9.6% during the same period.

As part of its revamp strategy, Match is introducing new features designed for younger users, including a “double date” function that allows two friends to pair up with another duo.

The feature is reportedly resonating with Gen-Z users, with 90% of double-date profiles coming from users under 29.

The company also debuted a voice-based game feature called “Game Game,” which allows users to practice flirting with an AI character.

A narrowing focus and the AI gamble

With macroeconomic pressures squeezing user wallets and attention spans, both Bumble and Match are betting on artificial intelligence and more focused, engaged user bases to drive future growth.

UBS analysts noted that Bumble has trimmed marketing spend by $20 million and is pivoting away from performance-heavy marketing strategies.

“These efforts are expected to weigh on near-term payer growth and revenue,” UBS said, but they may position Bumble better for long-term stability.

As dating apps adapt to a new phase of slower growth and user skepticism, 2025 could prove decisive for how the industry reinvents itself—or risks being swiped left by an increasingly discerning digital generation.

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William Blair analyst Jed Dorsheimer was all praise for Tesla Inc (NASDAQ: TSLA) $16.5 billion chip supply agreement with Samsung Electronics in an interview with CNBC today, but he won’t recommend buying the EV stock still.

On Monday, the multinational announced one of its largest long-term tech partnerships to date that centers on Samsung’s new Texas-based fab, which will manufacture TSLA’s next-gen AI6 chips – custom silicon designed to power everything from FSD systems to the Optimus humanoid robot.

The company’s billionaire chief executive, Elon Musk, emphasized the strategic importance of the Samsung collaboration, even stating he’d “walk the line personally” to accelerate progress.

Alongside Tesla stock, the announcement sent Samsung shares up some 7.0% on Monday as well.

Why is the Samsung deal a positive for Tesla stock

Jed Dorsheimer sees the Samsung partnership as a significant positive for TSLA shares.

“Most investors want to see Elon do what Elon does best, which is innovate – and this certainly is a data point for that,” the William Blair analyst told CNBC on Monday.

Tesla’s valuation includes core business segments like automotive and energy, but the moonshot businesses – robotaxis, humanoid robots, and artificial intelligence (AI) infrastructure – do carry significant weight in investor expectations.

According to Dorsheimer, Samsung’s deal reinforces the automaker’s commitment to those futuristic ambitions, offering tangible progress toward commercialising its advanced tech stack.

Note that Tesla Inc.’s team-up with Samsung arrives shortly after billionaire Elon Musk said it was “game on” for the company’s AI future.

Why Dorsheimer still rates TSLA shares at market perform

While the Samsung deal sure is positive for Tesla shares, Dorsheimer remains cautious.

On “The Exchange”, he cited worsening fundamentals in the company’s core automotive business, including margin compression and the loss of regulatory credits worth nearly $3 billion.

“That just makes the business more challenging,” he argued during the interview, noting that while energy is improving, the auto segment remains under pressure.

The valuation gap between Tesla’s current operations and its future tech bets is widening, and without clearer visibility into scaling those moonshot ventures, Dorsheimer believes TSLA stock is fairly valued.

His rating reflects a wait-and-see approach amid execution risks and macro headwinds.

Is it worth investing in Tesla Inc?

Tesla’s chip deal with Samsung is undeniably strategic – it strengthens supply chain autonomy, accelerates AI chip development, and signals Musk’s hands-on commitment to innovation.

For long-term believers in TSLA’s vision, this partnership could be a foundational step toward realizing its AI-first ambitions.

However, near-term challenges in the auto segment persist while the valuation already prices in substantial future success.

That’s why Wall Street analysts at large recommend treading with caution in Tesla stock.

The consensus rating on TSLA shares currently sits at “hold,” only with the mean target of about $313, indicating potential downside of some 4.0% from current levels.

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Glencore share price pulled back slightly as investors waited for its financial results. It dropped to a low of 315p on Monday, down from this month’s high of 327p. It remains about 56% above the lowest level this year. 

Glencore share price drops amid copper weakness

The Glencore stock price has pulled back in the past few days as the copper market weakens. Data shows that the price of copper has tumbled by over 6% from its highest point this month. It remains 38% above its lowest level this year. 

The ongoing pullback comes after copper price surged within a few days after Trump threatened a 50% tariff on all imports. Such a move will affect the US, a country that imports most of its copper. 

Copper has pulled back as traders book profits after this month’s short-squeeze. This is notable since Glencore is one of the biggest players in the copper business. 

Copper, which is seen as a barometer for the global economy, has pulled back as investors react to Donald Trump’s tariffs. He announced a trade deal with Japan last week and another one with the European Union this week.

A key theme that has emerged is that Trump has set a base for a 15% tariff for all goods entering the United States. A 15% tariff is substantial and could lead to a significant economic slowdown. 

On the positive side, there are signs that coal prices are recovering, which could benefit Glencore. Data shows that the Australian Newcastle futures rose to $115.50 per ton on Tuesday, the highest level since February this year.

At the same time, coal-fired power generation in Japan, a major coal importer, has jumped to the highest level in ten months. The ongoing coal recovery is important as prices crashed earlier this year. 

Analysts at Goldman Sachs believe that coal prices could jump because of the above-normal temperatures in China, Japan, and South Korea. Additionally, recent data indicate that coal inventories in China have been declining since June, potentially leading to increased demand. 

Read more: Glencore share price outlook as it shuts key copper mines

Earnings ahead

The next important catalyst for the Glencore share price is its earnings, which will come out on Wednesday this week. The most recent results showed that Glencore’s revenue rose by 6% last year to $230 billion.

However, the company’s adjusted EBITDA metric plunged by 16% to $14.365 billion, while its net loss soared to $1.6 billion. It blamed its losses to the weakness in the energy coal prices. As such, the rising coal prices may help to boost its earnings this year. 

The most recent production report showed that its energy coal production dropped by 7% in Q1 to 23.4 metric tons. This decline was offset by a 493% surge in steelmaking coal. Its copper production also tumbled by 30% to 167.9 kilo tons. 

These numbers mean that Glencore’s revenues and profits will be lower than in the same period last year.

Glencore share price analysis

GLEN stock chart | Source: TradingView

The daily chart shows that the GLEN share price has rebounded in the past few months, moving from a low of 200p in April to 316p today. It recently formed a rising wedge pattern, a popular bearish reversal sign. 

The stock has moved above the 50-day Exponential Moving Average (EMA). It has, however, found substantial resistance at the 200-day moving average. 

Therefore, the rising wedge points to a pullback after earnings. If this happens, the next point to watch will be the psychological point at 300p. A move above the resistance at 327p will invalidate the bearish outlook.

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The United States’ top trade official has indicated that “more negotiations” will be necessary to secure a trade deal with India, a sobering assessment that comes just days before a critical August 1 deadline, after which higher US tariffs are scheduled to take effect.

US Trade Representative Jamieson Greer, speaking in an interview on CNBC on Monday, stated that Washington needs additional talks to gauge just how ambitious the Indian government is willing to be to secure a comprehensive trade agreement.

While Greer acknowledged that he had previously suggested a deal with New Delhi might be imminent, he emphasized the significant policy shifts that would be required from India.

He highlighted India’s historic policy of “strongly protecting their domestic market,” noting that any move to reduce these long-standing barriers would represent a major reversal.

“We continue to speak with our Indian counterparts, we’ve always had very constructive discussions with them,” Greer said.

They have expressed strong interest in opening portions of their market, we of course are willing to continue talking to them. But I think we need some more negotiations on that with our Indian friends to see how ambitious they want to be.

Greer explained the fundamental challenge in the negotiations: “The thing to understand with India is their trade policy for a very long time has been premised on strongly protecting their domestic market. That’s just how they do business.”

He contrasted this with the Trump administration’s objective: “And the president is in a mode of wanting deals that substantially open other markets, that they open everything or near everything.”

An elusive agreement despite months of optimism

Greer’s comments come just a few days after Indian Commerce Minister Piyush Goyal had expressed his own optimism that an agreement could be reached to avert the threatened 26% tariffs.

Goyal had insisted there weren’t any major sticking points in the U.S.-India relationship and had noted that sensitive immigration rules, including those around H-1B visas for skilled workers, had not come up in the trade talks.

Despite these repeated claims from both sides in recent months that an agreement was within reach, a final trade deal between India and the US has remained elusive.

This is particularly notable as the US, over the last few days, has successfully signed trade deals with other major economies, including Japan and the European Union.

Furthermore, US and Chinese economic officials resumed their talks in Stockholm, Sweden, on Monday, with a previous tariff and export control agreement from May having an August 12 deadline that experts believe may be extended.

In contrast, there has been no major public breakthrough on the trade deal front between the US and India.

Last Thursday, July 24, India’s Ministry of External Affairs (MEA) did state that India and the US are working towards finalizing the “first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA),” but concrete details have been sparse.

Sticking points and external pressures: why is a deal delayed?

Hopes had been high that a trade deal between India and the US could be finalized before an earlier deadline of July 9, which had been set by President Donald Trump for the new tariffs to take effect.

However, despite several rounds of talks and reports suggesting that President Trump was expected to make a final decision, no agreement materialized.

A key point of contention has reportedly been the US’s insistence on gaining greater access to Indian markets for its agricultural, dairy, and genetically modified (GM) products.

India, however, has consistently argued that granting such access could negatively impact the livelihoods of its large farming population, a politically sensitive issue for the Indian government.

Another potential reason for the delay in finalizing the trade deal is the US’s broader geopolitical stance, particularly its opposition to countries importing oil from Russia.

Last week, US Senator Lindsey Graham issued a stark warning that President Trump intends to impose steep tariffs on any countries that continue to import oil from Russia, a policy that could have significant implications for India.

These complex and multifaceted issues continue to complicate the path to a final agreement.

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Floating liquefied natural gas (FLNG) terminals are increasingly impacting the global LNG market, with Rystad Energy forecasting a threefold increase in capacity by 2030. 

Despite past technical and operational hurdles, FLNG projects now achieve utilisation rates similar to onshore terminals. 

As LNG demand grows and smaller gas fields become more viable, FLNG offers a quicker, more adaptable, and cost-effective solution, capable of responding to evolving market conditions and tapping into previously inaccessible reserves.

Global FLNG capacity is projected to surge to 42 million tonnes per annum (Mtpa) by 2030 and then to 55 Mtpa by 2035, a substantial increase from the 14.1 Mtpa recorded in 2024. 

This growth, estimated by Rystad Energy, represents nearly a fourfold expansion. 

Notably, FLNG terminals operational before 2024 have demonstrated strong performance, achieving an average utilisation rate of 86.5% in 2024 and 76% thus far in 2025, figures that align with those of global onshore LNG facilities.

“FLNG has come a long way in less than a decade. The only real roadblocks were early teething issues that come with any new technology, as seen with projects like Shell’s Prelude, which faced cost overruns and unstable output,” Kaushal Ramesh, vice president, gas & LNG Research, Rystad Energy.

But since then, the industry has matured significantly, including Prelude itself. Utilization rates are improving, the technology is proving reliable across a range of environments, and the economics are starting to make more sense.

Projects

Early FLNG (Floating Liquefied Natural Gas) projects, like Shell’s Prelude, constructed in South Korea by the Technip–Samsung consortium, served as a negative illustration of the initial limitations of FLNG, largely due to the absence of a pre-existing blueprint. 

The cost of liquefaction alone escalated significantly, reaching $2,114 per tonne.

Nonetheless, with increased operational and construction expertise within the industry, capital expenditure per tonne has fallen considerably, aligning costs with onshore LNG projects.

Proposed developments along the US Gulf Coast have an average cost of approximately $1,054 per tonne, according to Rystad. 

Delfin FLNG, a proposed US project, is slightly above this average at $1,134 per tonne. Coral South FLNG in Mozambique, a project of similar scale, has a comparable liquefaction cost of $1,062 per tonne.

The Norway-based energy intelligence company added:

However, we note that project concepts are not entirely comparable. Some are complex integrated producers with upstream components as part of the LNG facilities, while others simply liquefy pipeline-spec gas.

Vessel conversions

Meanwhile, FLNG developers are increasingly opting for vessel conversions over newbuild facilities as a more cost-effective solution.

By repurposing Moss-type LNG carriers, projects like Tortue/Ahmeyim FLNG, Cameroon FLNG, and Southern Energy’s FLNG MK II have achieved significantly lower capital expenditure levels, specifically $640, $500, and $630 per tonne, respectively.

The vessels’ modular spherical tank design facilitates these conversions by enabling easier integration of prefabricated liquefaction modules.

The anticipated retirement of several Moss-type LNG tankers in the coming years presents an opportunity for their repurposing. This could lead to an increase in cost-effective FLNG solutions.

FLNG vessels demonstrate operational flexibility in various environments, including deepwater, ultra-deepwater, and onshore supply.

“Should certain projects stall, their vessel could be relocated or sold, demonstrating the inherent mobility and adaptability of FLNG assets,” Rystad said.

Accelerating time

In today’s energy landscape, characterised by tight markets and the potential for oversupply, achieving rapid first production is paramount, according to Rystad.

Extended construction timelines delay revenue generation and expose projects to a higher risk of cost overruns.

FLNG units offer a significant advantage over onshore liquefaction facilities due to their faster delivery times, which allows for quicker final investment decisions and more agile project execution, according to Rystad Energy data.

Newbuild FLNG projects typically finish in about three years, which is notably quicker than the approximate 4.5 years (capacity-weighted) required for operational onshore plants.

FLNG vessels presently being built are expected to have an average construction period of just 2.85 years.

The growing preference for FLNG is largely driven by its accelerating timeline, which allows developers to minimise exposure and expedite returns.

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AstraZeneca share price held steady this week after the company published strong financial results on Tuesday. AZN stock was trading at 10,790p, a range it has remained in the past few days. It remains 10% above the lowest point this year.

AstraZeneca earnings download

The main catalyst for the AstraZeneca share price is its earnings, which showed that its business made some improvements in the second quarter. 

Its results showed that AstraZeneca’s product sales jumped by 8% in the year’s first half to $26.67 billion. Its alliance revenue stood at over $1.2 billion, bringing its first-half figure to $28 billion, higher than the median estimate of $27.5 billion. 

The company’s growth was driven by its oncology business, led by Tagrisso, which made over $3.48 billion in revenue. Its oncology revenue jumped to over $11.95 billion. 

Its oncology business was followed by the Cardiovascular, Renal, and Metabolism (CVRM), which made $6.5 billion. This division was propelled by Farxiga, a drug used to treat type 2 diabetes mellitus, heart failure, and chronic kidney disease.

The other drivers of AstraZeneca’s revenue was its rare disease products, vaccines and immunization (V&I), and renal, which made over $411 million and $4.2 billion.

The US remains AstraZeneca’s biggest revenue driver, which explains why its stock has wavered recently. Trump has threatened to impose substantial tariffs on medicine imports in the US. As a result, AstraZeneca has pledged to invest at least $50 billion in the US until 2030.

AstraZeneca said that its US revenue jumped to $11.9 billion, representing 43% of its total. It was followed by emerging markets, with China bringing in $3.5 billion of the $7.6 billion.

Europe’s revenue was $5.82 billion, while the rest of the world brought in $2.5 billion. 

AstraZeneca believes that its business will continue doing well this year. It expects that its revenue will increase by a high single-digit percentage, whilv its core EPS will rise by low double-digit percentage. Pascal Soriot, the CEO, said:

“Our strong momentum in revenue growth continued through the first half of the year and the delivery from our broad and diverse pipeline has been excellent, with 12 positive key Phase III trial readouts, including for baxdrostat, gefurulimab, and Tagrisso in just the past few weeks.”

AstraZeneca share price analysis

AZN stock price chart | Source: TradingView

The daily chart shows that the AZN stock has remained in a tight range in the past few days. It moved from a low of 9,560p in April to 10,790p today. 

AstraZeneca stock price moved slightly above the 50-day and 100-day moving averages. It is also slightly above the 61.8% Fibonacci Retracement level. 

There are signs that the stock has formed a bearish flag pattern, a common risky pattern. Therefore, the stock will likely remain in this range in the coming days. 

More gains will be confirmed if the stock rises above the upper side of the ascending channel at $11,000. A move below the support at $10,650 will invalidate the bullish view.

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India has overtaken China to become the leading exporter of smartphones to the United States for the first time, marking a significant shift in the global electronics supply chain as companies recalibrate their manufacturing bases amid trade tensions and rising tariffs.

According to data from research firm Canalys, smartphones assembled in India accounted for 44% of total US imports in the April–June quarter, up sharply from just 13% in the same period last year.

Total volume of smartphones made in India soared 240% from a year earlier, Canalys said.

In comparison, China’s share plummeted to 25% from 61% during the same span.

Vietnam also surpassed China, supplying 30% of US smartphone imports in the quarter.

Apple leads the shift to India amid US-China trade tensions

Sanyam Chaurasia, principal analyst at Canalys, said the sharp rise in shipments from India was largely fuelled by Apple’s rapid pivot toward the country amid escalating trade tensions between the US and China.

This marks the first instance of India surpassing China in smartphone exports to the US.

Apple has ramped up efforts to produce a larger share of its iPhones in India, with plans to make roughly a quarter of its total iPhone output in the country over the next few years.

This comes as former President Donald Trump, who is seeking a return to office, has again threatened additional tariffs on Apple if it does not shift more production to the US

Although some key Apple devices, including iPhones and MacBooks, have received temporary exemptions from the US’s reciprocal tariff regime, those waivers may not be extended beyond August 1.

Other firms trail behind in India pivot

While Apple is leading the transition, other global smartphone makers such as Samsung Electronics and Motorola are also exploring a shift to Indian assembly lines, albeit at a slower pace and smaller scale.

Renauld Anjoran, CEO of China-based electronics manufacturer Agilian Technology, said a growing number of global manufacturers are relocating their final assembly operations to India, expanding capacity in the South Asian country to better cater to the US market.

His company is currently renovating a facility in India with plans to begin trial runs and eventually scale up to full production.

“The plan for India is moving ahead as fast as we can,” Anjoran said in a CNBC report.

The company expects to begin trial production runs soon before ramping up to full-scale manufacturing.

Demand outlook remains uncertain

Despite the boost in shipments, Apple’s global iPhone deliveries declined by 11% year-on-year in the second quarter to 13.3 million units, according to Canalys.

This marked a reversal from the 25% growth seen in the previous quarter.

Shares of Apple have fallen 14% this year, pressured by concerns over trade headwinds and growing competition in smartphones and AI.

Though Apple has started assembling iPhone 16 Pro models in India, Canalys said the company still relies on China’s mature manufacturing ecosystem for most of its high-end devices.

Meanwhile, the US government’s tariff posture remains a moving target. Although a 26% tariff on Indian imports was imposed in April, it is significantly lower than the duties placed on Chinese goods at the time. Those tariffs have since been paused, but only until August 1.

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European stock markets are poised for a higher open on Tuesday, with major bourses looking to shake off the previous session’s losses.

A wave of strong corporate earnings reports, notably from British bank Barclays and pharmaceutical giant AstraZeneca, is providing a positive catalyst for the market, even as investors continue to seek clarity on the details of the recent US-EU framework trade deal.

Futures data from IG suggests a positive start for European markets, with major bourses like London’s FTSE 100 and Germany’s DAX expected to open around 0.2% higher.

This comes after an initial burst of optimism on Monday over the US-EU trade deal faded by the end of the session, ultimately leaving the pan-European Stoxx 600 index with a 0.23% loss.

Investors will continue to hunt for any new details on the trade outlook today, as uncertainty remains for key sectors including pharmaceuticals and products like spirits, which were not explicitly covered in the initial framework.

Some analysts believe the recent positive trade news has largely run its course for now. “We see the tentative trade deal with the EU as pretty much completing the run of good trade news that has lifted global confidence and equity markets, and weakened the [US dollar],” Standard Chartered macro strategist Steve Englander said in a Monday note.

He added, “The deals are a negative from a global growth perspective but appear to be something that US trading partners can live with.”

Corporate stars shine: AstraZeneca and Barclays beat expectations

Tuesday is a busy day for corporate earnings, with several major companies reporting ahead of the bell, offering a more fundamental focus for investors.

• AstraZeneca: The Anglo-Swedish pharmaceutical firm posted better-than-expected second-quarter earnings, driven by strong demand for its key cancer and biopharmaceutical products.

  AstraZeneca reported revenues of $14.46 billion for the three-month period ending June 30, a figure that came in ahead of the $14.07 billion estimated by analysts in an LSEG poll. Quarterly adjusted core operating profit also beat forecasts, coming in at $4.58 billion versus the $4.48 billion anticipated.

  The FTSE 100 company maintained its full-year forecast for revenues to rise by a high single-digit percentage, despite geopolitical challenges, and reiterated its ambitions to grow its US footprint to deliver $80 billion in revenue by 2030.

  Last week, AstraZeneca had announced plans to invest $50 billion in bolstering its US manufacturing and research capabilities by 2030, becoming the latest pharmaceutical firm to ramp up its stateside spending in the wake of US trade tariffs.

• Barclays: British bank Barclays also delivered a strong performance, beating profit expectations and announcing a new £1 billion ($1.33 billion) share buyback program.

  The bank reported a pre−tax profit of £2.5 billion ($ 3.34 billion) for the second quarter, comfortably surpassing the mean LSEG forecast of £2.23 billion. Group revenues met analyst projections of £7.2 billion. The bank noted that market volatility had helped to boost its investment banking revenues during the quarter.

A host of other earnings reports are also due today from European giants like L’Oréal and Ferrovial, as well as major US companies including Boeing, Starbucks, Visa, and PayPal, which will be closely watched for their global outlook.

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Stellantis shares dropped 4.3% on the Milan exchange on Tuesday after the automotive group reinstated its full-year guidance, only to fall short of investor expectations.

The company forecasted a modest recovery in the second half of 2025, projecting increased net revenue and a low-single-digit adjusted operating income margin despite mounting challenges, including US tariffs and weak performance in the North American market.

Stellantis had previously withdrawn its guidance in April amid uncertainty over US import duties.

The return of the forecast, though aimed at signalling renewed confidence, was met with caution on the markets.

After taking a more than 4% plunge in early trading, the stock was trading lower by 2.2% at 10:21 am.

Tariff headwinds continue to weigh on results

The Franco-Italian automaker reported a net loss of €2.26 billion for the first half of 2025, in line with preliminary figures released last week.

That compares to a €5.65 billion profit during the same period a year earlier.

First-half revenue fell 13% to €74.3 billion, and the adjusted operating income margin dropped to 0.7%.

Stellantis blamed the poor showing largely on tariffs, which shaved roughly $350 million from first-half earnings.

The total tariff impact for 2025 is estimated at €1.5 billion. A new trade deal between the US and EU eased some pressure by capping duties on European imports at 15%.

However, vehicles shipped from Mexico and Canada—key production hubs for Stellantis—still face 25% tariffs, though some exemptions apply under the nations’ free trade agreements.

North American revenues fell to just over €28 billion, trailing European revenue of €29.2 billion, as inventory reductions and slower sales hit its largest market.

New leadership plots recovery with product revamp

New CEO Antonio Filosa, a 25-year veteran of the company who took the helm in May and has already reorganised the senior leadership team, acknowledged that 2025 has been a challenging year so far.

He emphasised that Stellantis’ new leadership was prepared to take “tough decisions” to restore profitability.

“Our new leadership team, while realistic about the challenges, will continue making the tough decisions needed to re-establish profitable growth and significantly improved results,” new CEO Antonio Filosa said in a statement.

Part of the recovery plan involves a product refresh.

Stellantis plans to launch 10 new models in 2025, including a new V8-powered Ram truck and an updated Jeep Compass.

Production of the hybrid Jeep Cherokee and Dodge Charger Sixpack will also resume after being paused since 2023.

Analyst views and future outlook

Despite these efforts, some analysts remain unconvinced.

Jefferies noted that the updated guidance came as no surprise following the earlier profit warning but called it “vague,” lacking the detail investors were hoping for.

“We stick to our view that 1H25 marked the lowest point in operating, but the qualitative indications on 2H appear less optimistic than both our and consensus expectations,” broker Equita said in regards to the free cash flow outlook.

Stellantis is banking on new products and operational restructuring to navigate a challenging landscape marked by slowing demand, rising costs, and trade friction.

The company forecast an improvement in industrial free cash flow in the second half, following a €3 billion cash burn in the first.

Filosa, who has already reshuffled the senior management team, will face analysts in his first earnings call as CEO.

He will be expected to provide more clarity on the recovery trajectory and explain how Stellantis intends to regain its footing in the highly competitive North American market.

The road ahead remains uncertain, but Stellantis is signalling that it is not standing still in the face of adversity.

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