Bitmine Immersion Technologies Inc (BMNR) rallied more than 10% today following news that influential investor Cathie Wood trimmed her stake in Block Inc (XYZ) to load up on BMNR.
The founder and chief executive of Ark Invest spend over $15 million on buying 477,498 Bitmine shares across three of her flagship exchange-traded funds (ETFs) on July 30th.
BMNR stock is currently trading at about 8x its price last month, but is still down well over 70% from its high of $135 after announcing a strategic pivot to an ETH treasury strategy earlier in July.
Why is Wood’s purchase significant for Bitmine stock?
Wood’s investment in BMNR shares signals support for the company’s recently adopted Ethereum-centric strategy.
Late last month, Bitmine Immersion appointed Fundstrat’s Tom Lee as its chairman and announced plans of beginning to stake and accumulate ETH for the long term.
Cathie Wood’s vote of confidence lends immediate credibility to the firm’s transformation, which may draw more institutional interest in Bitmine stock in the second half of 2025.
It also echoes investor’s history of backing disruptive technologies before mainstream acceptance, reminiscent of early plays on Tesla and Coinbase.
Wood’s purchase of BMNR stock arrives only hours after the LA-headquartered firm announced plans of repurchasing up to $1 billion worth of its shares – indicating management’s belief that Bitmine is undervalued at current levels.
Stock buybacks are often seen as positive because reducing the total number of shares outstanding tends to boost a company’s earnings per share (EPS) and lifts ownership percentage of its existing shareholders as well.
Why BMNR shares are still risky to own
Despite recent enthusiasm, Bitmine stock volatility poses clear risks. The stock is trading at nearly 8x its June lows, raising concerns of speculative froth, especially as it remains down over 70% from its $135 peak.
Bitmine’s new crypto-centric strategy, though innovative, is tightly correlated with Ethereum’s price action, exposing the firm to broader crypto market swings.
Regulatory uncertainties around crypto treasury holdings and staking activities could further complicate execution and weigh on upside in BMNR shares.
Meanwhile, substantial selling following the July pivot hints at profit-taking rather than long-term conviction.
For investors chasing momentum, the current valuation may offer limited margin for error if ETH retraces or sentiment shifts.
All in all, caution is warranted in playing this crypto stock in the second half of 2025.
Is it worth investing in Bitmine Immersion?
Investors should practice caution in buying Bitmine shares also because it currently receives limited coverage from Wall Street analysts.
Limited Wall Street coverage is a red flag because it reduces institutional visibility and investor confidence.
Fewer analyst reports mean less scrutiny on financials and strategic pivots – important for transparency.
It also narrows the pool of buy-side recommendations, which can dampen liquidity and price discovery.
In volatile sectors like crypto, lack of coverage leaves investors navigating risks without traditional guidance, potentially hindering broader adoption of the stock.
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Pakistan announced a deal with the US that it expects will reduce tariffs on its exports.
Meanwhile, President Donald Trump lauded an agreement focused on developing Pakistan’s oil reserves, according to a Reuters report.
However, the agreed tariff rate was not mentioned by either party.
In an effort to counter China’s regional influence, Washington designated Pakistan a “major non-NATO ally.” Pakistan was facing a potential 29% tariff, announced in April, which was subsequently suspended for 90 days to facilitate trade discussions.
“We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves,” Trump wrote on social media.
We are in the process of choosing the Oil Company that will lead this Partnership.
Newfound economic cooperation
Pakistani Foreign Minister Ishaq Dar confirmed the agreement, stating, “Deal concluded,” but offered no further details, according to the report.
Pakistan’s finance ministry announced on Thursday that a tariff deal, though not mentioned by Trump, would result in “reduction of reciprocal tariffs, especially on Pakistani exports to the United States.” The specific figures, however, were not disclosed.
The ministry added:
This deal marks the beginning of a new era of economic collaboration especially in energy, mines and minerals, IT, cryptocurrency and other sectors.
Finance Minister Muhammad Aurangzeb, who led the final round of talks in Washington, described the deal as a win-win for both nations.
“From our perspective, it was always going beyond the immediate trade imperative, and its whole purpose was, and is, that trade and investment have to go hand in hand,” he added in the statement.
Following his Friday meeting with Secretary of State Marco Rubio, Dar indicated last week that the two nations were “very close” to finalizing a trade deal, potentially within days.
Discussions were held regarding the expansion of trade and strengthening of ties in critical minerals and mining. Other Pakistani officials have also visited recently for talks.
US trade policy under Trump
Washington, under Trump’s leadership, has aimed to renegotiate numerous trade agreements. Trump has threatened tariffs on several countries, deeming their trade relations “unfair,” a label many economists contest.
According to the US Trade Representative’s website, total goods trade between America and Pakistan reached an estimated $7.3 billion in 2024, an increase from approximately $6.9 billion in 2023.
The goods trade deficit with Pakistan reached $3 billion in 2024, marking a 5.2% increase from the previous year.
Trump announced that a 25% tariff on goods imported from Pakistan’s primary rival would commence on Friday, adding that Washington was still engaged in trade negotiations with India.
De-escalation of tensions
Pakistan recently commended the “pivotal role” played by Trump and Rubio in “de-escalating tensions between Pakistan and India through facilitating a ceasefire.”
Trump has consistently attributed the India-Pakistan ceasefire, which he announced on social media on May 10, to Washington’s discussions with both nations.
India asserts that the ceasefire was not a result of Trump’s intervention or trade threats, maintaining its stance that New Delhi and Islamabad should resolve their issues bilaterally without external involvement.
The recent escalation in the long-standing India-Pakistan conflict stemmed from a deadly militant attack on April 22 in India-administered Kashmir, which India attributed to Pakistan.
Islamabad, however, denied any responsibility. Following this, India launched a strike on Pakistan on May 7, leading to a period of intense hostilities until a ceasefire was declared.
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European stock markets began Thursday on a positive note, with the regional Stoxx 600 index climbing higher as investors digested a deluge of corporate earnings reports from some of the continent’s largest companies.
This upbeat start, supported by a strong showing from US tech giants, comes amidst a complex global backdrop of shifting trade policies and central bank decisions.
On what is one of the busiest days of the year for corporate results, several heavyweight regional companies have already reported, with many providing a positive surprise.
The pan-European Stoxx 600 Index was 0.4% higher by 8:18 a.m. in London. Technology stocks were among the biggest gainers, finding a tailwind from positive after-hours earnings reports on Wednesday from US megacaps Microsoft Corp. and Meta Platforms Inc.
French bank Societe Generale SA was a standout performer, gaining 6.5% after it boosted its planned investor payouts and improved its profitability guidance.
This was part of a broader, encouraging trend. “As far as I can tell from the flurry of publications, the overall picture is rather positive, with a good chunk of beats,” Karen Georges, a fund manager at Ecofi, told Bloomberg.
It’s really the good results in the US which are providing a tailwind for markets.
However, not all earnings news was positive. Anheuser-Busch InBev dropped a staggering 11% after the world’s biggest brewer reported that it had sold less beer than expected during the second quarter.
ArcelorMittal SA, the world’s number two steelmaker, dropped 3.5% after it cut its forecast for steel demand outside of China. In a bright spot for the UK market, Rolls-Royce Holdings Plc rose 11% after it raised its outlook for the year, as the aircraft engine maker benefited from its savings program and strong demand across the aerospace industry.
A flood of other major earnings reports are also due today from companies including Unilever, Shell, London Stock Exchange Group, BMW, Renault, Sanofi, and LVMH.
Trade policy twists and Central Bank watch
The markets are also contending with the latest developments in US trade policy.
In a surprising move, copper prices were little changed on the London Metal Exchange on Thursday—following a collapse in New York—after US President Donald Trump shocked the metals world by exempting the most widely traded forms of copper from his hotly anticipated import tariffs.
This was a significant reversal from his earlier announcement of a 50% tariff on some copper imports, which had sent mining stocks lower.
In other trade news, President Trump said he had reached a deal with South Korea that would impose a 15% tariff on its exports to the US and see Seoul agree to $350 billion in US investments. South Korean stocks, however, dipped as investors appeared to shrug off the deal.
Central banks also remain a key focus. The US dollar dropped, sliding from its highest level since May, after Federal Reserve Chair Jerome Powell on Wednesday said that no decision had been made about easing monetary policy in September. US Treasuries rose across the curve after slumping in the prior session.
The Japanese yen held its gain after the Bank of Japan kept its benchmark rate unchanged while boosting its inflation outlook, a decision that was correctly forecasted by all 56 surveyed economists.
On the data front in Europe today, French, German, and Italian inflation data is due, as are the latest German and EU unemployment figures. The main regional Stoxx 600 index is currently set for a gain of about 1.9% in July, which would extend its year-to-date gains to 9%.
However, the benchmark is likely to face historical headwinds, as it has traditionally had its worst performance in the months of August and September.
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North America’s UAV (drone) market is undergoing a rapid transformation, fuelled by breakthroughs in AI, autonomous flight, and regulatory shifts aimed at reducing dependence on Chinese technology.
In a bold move to rebuild the domestic drone sector, the US government is crafting an ambitious industrial policy—echoing the intent of the CHIPS Act—to boost homegrown production, protect national security, and regain control of the skies.
Drones manufactured by Chinese drone giant DJI (Da Jiang Innovations) already face increasing regulatory and legislative pressure that puts its future in the US market at risk.
This overall policy momentum has caught the attention of investors. Peter Thiel’s Founders Fund has poured over $1 billion into Anduril Industries, a US defence tech firm specialising in AI-enabled drones.
The US drone market is expected to generate $1.39 billion in revenue in 2025, with a projected annual growth rate of 2% through 2030.
The scale still remains modest: around 500 companies manufacture fewer than 100,000 drones a year, according to the Association for Uncrewed Vehicle Systems International.
However, the integration of artificial intelligence (AI) into unmanned aerial vehicles (UAVs) is also emerging as a major driver of domestic drone innovation and manufacturing growth.
“AI is a rapidly evolving tool, and many companies have already begun integrating AI programs into UAVs,” Bill Irby, CEO of AgEagle Aerial Systems (Nasdaq: UAVS), a US-based global provider of full-stack drone solutions in the energy, construction, agriculture, and government verticals, tells Invezz in an interview.
Irby also talks about promising emerging markets for the company, key milestones for investors to watch out for in the second half of the year, and consolidation in the drone industry.
Excerpts:
Bill Irby, CEO, AgEagle Aerial Systems
On integrating AI in UAVs and managing related risks
Invezz: You recently partnered with an Israeli firm to advance AI-powered autonomous drone teaming, which you said can be used for border security, surveillance, and other applications. What’s your view on integrating AI in UAVs, and how do you minimise related risks?
AI is a rapidly evolving tool, and many companies have already begun integrating AI programs into UAVs.
We believe that in order to integrate AI successfully and without risk, you need to introduce a mature algorithm that has been tested in a variety of scenarios.
It is also important to be strategic about what tasks you deploy AI programs to achieve.
For example, any action that typically involves “man-in-the-loop” decision making, control, or processing can benefit from AI.
Take UAS direct control as an example: being a pilot involves the monitoring of a number of inputs, visual and auditory, including airspace awareness, instrument readings, weather, etc., then processing all this information to make decisions and act.
These observations and actions can be made much more quickly and reliably with AI acting in place of the pilot.
India and Thailand emerge as promising markets
Invezz: You recently announced your 100th drone sale in South Korea, bolstering your presence in the Asia Pacific market. What other markets seem promising from an export perspective?
The single most promising market that AgEagle is newly entering is India, particularly in the agricultural market.
We are engaging in an agreement there and also building similar opportunities in Thailand.
Invezz: How do you anticipate the FAA’s upcoming Part 108 (BVLOS) rule will change the operational landscape for drone companies in the US?
The FAA’s upcoming Part 108 (BVLOS) rule is expected to significantly expand opportunities for drone companies in the US by streamlining operations.
Rather than requiring individual waivers for each beyond visual line of sight (BVLOS) flight, operators will be able to obtain certification under Part 108, allowing for more consistent and scalable deployment.
The rule will also define clear operational corridors and flight parameters, such as altitude limits, helping to establish a standardised regulatory framework that enhances both safety and efficiency across the industry.
We believe it will have a significant impact on the market overall.
On the US’ attempts to reduce reliance on Chinese drones
Invezz: The US government is pushing to reduce reliance on Chinese drone manufacturers and ramp up the US drone manufacturing industry. How do you view this, and what opportunities does this open up for AgEagle?
This opens the door for more production in the US and more competition in the industry.
We see this as a market accelerator and will put pressure on companies, like AgEagle, to produce state-of-the-art products.
Invezz: Experts say US drone manufacturers’ heavy reliance on Chinese components means it would take years for the country to build manufacturing infrastructure that could rival China’s. Your comments?
The US government’s commitment to investing in the drone industry will catalyse the growth of the industry here in the US.
It has put a number of grants and benefits in place in order to accelerate the development of this industry, and I do believe that we will see companies respond with urgency.
Gov policy, not tech incapability, behind the failure to catch up with China, Russia in drone making
Invezz: Why do you think the US, despite its technological prowess, has lagged behind Russia and China in a critical sector like drone manufacturing?
The US has lagged behind China and Russia in drone manufacturing largely due to differences in government policy and market dynamics, not a lack of technological capability.
China’s dominance is driven by heavy government subsidies, enabling manufacturers to offer drones at significantly lower prices, often by reverse-engineering Western technology.
Russia’s advancements, meanwhile, have been accelerated by wartime urgency and national defence priorities.
In contrast, the US has only recently begun offering grants and revising procurement policies, particularly within the Department of Defense, to support domestic drone innovation.
With these changes and increased private sector investment in R&D, the US drone industry is now poised for rapid growth.
H2 outlook: US production plans, new launches, orders fromthe French Army to build momentum
Invezz: Can you share updates on AgEagle’s financial health and any growth milestones investors should watch for in the second half of 2025?
AgEagle is making solid progress in 2025, and we’re optimistic about the momentum building in the second half of the year.
While growth is never as fast as we’d like, we’re hitting meaningful milestones, including achieving Blue UAS certification and moving forward with plans to establish US-based production.
We’re preparing to launch a second domestic manufacturing line, which will enhance our ability to meet growing demand.
We’re also excited about the upcoming release of a new version of our high-performance multispectral cameras coming out, expected in Q3.
Additionally, following our largest order to date from the French Army last year, we’re encouraged by signals of a potential follow-on order.
While not yet finalised, it’s a strong indicator of continued international interest.
Overall, we’re confident in our direction and energised by the opportunities ahead.
On consolidation in the drone industry
Invezz: What are your views on the consolidation taking place in the drone industry, especially as defence and tech firms look to shore up domestic production?
Consolidation in the drone industry is both expected and healthy, especially as defence and tech firms ramp up efforts to strengthen domestic production.
I’ve been predicting this shift for some time, and we’re already seeing it take shape, with several drone company acquisitions announced in just the past few months.
As demand accelerates, particularly from government and defence customers, not all companies will have the resources to scale manufacturing or meet evolving requirements.
This will naturally lead to mergers and acquisitions, much like we saw in a previous wave about eight years ago, when there was a wave of drone startups emerging at the same time.
At AgEagle, we view this as a positive trend that will help strengthen the overall ecosystem, drive innovation, and ensure that the most capable, well-positioned companies thrive.
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The United States and South Korea have struck a fresh trade deal that imposes a 15% tariff on South Korean goods imported into America.
US President Donald Trump announced the trade deal on Wednesday, just hours ahead of the August 1 deadline.
The development came after Trump announced 25% tariffs against India and an additional penalty for importing Russian energy and defence equipment.
South Korea and Japan were among the first set of countries to receive 25% tariff letters from the Trump administration, but the nations successfully negotiated to bring them down to 15%.
US-South Korea trade deal: Key features
The trade deal blends tariffs with strategic investment as all South Korean exports to the US will now face a 15% blanket tariff, a notable climbdown from the initially threatened 25%, and a move that brings the rate in line with similar agreements recently inked by Washington with Japan and the EU.
As part of the broader package, Seoul has pledged $350 billion in US-based investments, with $150 billion directed specifically toward revitalizing America’s flagging shipbuilding industry under a banner initiative dubbed “Make America Shipbuilding Great Again.”
The rest of the capital will flow into critical sectors like semiconductors, clean energy, batteries, biologics, and nuclear power.
Moreover, South Korea will purchase $100 billion worth of liquefied natural gas and other energy products from the US over the next three and a half years.
This will come as a significant boost for America’s energy exporters.
The deal also opens doors for US producers, promising reduced or zero tariffs on automobiles, trucks, and agricultural goods entering the South Korean market.
Implications for both nations
For Washington, the deal is being pitched as a boost for US manufacturing jobs and a way to attract serious foreign investment, with South Korea pledging billions across shipbuilding, energy, and tech.
Seoul, meanwhile, avoids the heavier 25% tariff that had been looming and locks in access to the US market for its industrial heavyweights, especially shipbuilders and chipmakers.
That alone was enough to send South Korean shipbuilding stocks up more than 15% on the news.
The broader picture, though, is less rosy: this agreement is the latest in a string of bilateral deals the US has cut with allies like Japan and the EU, while others, including India, have been slapped with the full 25% tariff.
Analysts say the patchwork approach is already straining global supply chains and may soon be felt by American consumers in the form of higher prices.
South Korean President Lee is slated to visit Washington in the coming weeks, and the finer points of the investment package are expected to be hammered out.
Meanwhile, the White House has moved to suspend the long-standing “de minimis” rule, which had allowed low-value imports to enter the country tariff-free.
That change means a wider range of foreign goods, many from Asia will now be hit with duties, further tightening the screws on global trade flows.
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Meta Platforms Inc. delivered robust second-quarter results late Wednesday, sending its stock up nearly 12% in early Thursday premarket trading.
The Facebook and Instagram parent beat Wall Street estimates on both revenue and profit, underlining the strength of its core advertising business and growing investor confidence in its artificial intelligence strategy.
Revenue rose 22% year-on-year to $47.5 billion for the April-June quarter, while net income reached $18.3 billion, exceeding analyst forecasts.
It was one of Meta’s strongest quarters since its pivot to AI began in earnest last year.
The stock, up 16% year-to-date, is now approaching a $2 trillion valuation — a milestone it has never before reached.
The S&P 500, by contrast, has gained 8.42% in the same period.
AI investments show results in ad growth and engagement
Meta’s second-quarter results suggest its heavy investments in artificial intelligence are already yielding benefits, particularly in advertising — the company’s primary source of revenue.
“The investments it’s making in AI are already paying off in its ads business,” said Jasmine Enberg, principal analyst at research firm eMarketer.
Ad impressions were up 11% compared to the year-ago quarter, while the average price per ad increased 9%.
Together, they contributed to the 22% revenue growth from the advertising segment, reaffirming Meta’s dominance in digital marketing.
Meta also reported that users are spending more time on its platforms.
Video viewing time on Facebook and Instagram grew over 20% in the quarter, thanks to improvements in the company’s AI-driven content recommendation systems.
CFO Susan Li said Meta will continue optimizing these models throughout the year to make recommendations more personalized.
Meta tames spending outlook, reassures investors
In a notable shift, Meta did not raise its top-end capital expenditure guidance for the first time this year, helping calm market nerves around CEO Mark Zuckerberg’s ambitious AI spending spree.
Investors viewed this as a signal that Meta may begin reaping returns from its earlier outlays without requiring an immediate hike in spending.
Still, the company remains one of the most aggressive spenders in AI.
Meta has earmarked up to $72 billion in capital expenditures for 2025, primarily focused on AI infrastructure and talent acquisition.
Analysts expect this figure to climb further in the next quarter.
Zuckerberg’s push includes a $14 billion investment for a 49% stake in Scale AI, a data-labeling startup, and the recruitment of its CEO, Alexandr Wang.
The company has also been actively poaching researchers from competitors, including OpenAI.
Reports suggest Meta offered some individuals compensation packages in the hundreds of millions — and in one case, a $1 billion deal.
Reality Labs remains a drag, but not a deterrent
While the core business thrives, Meta’s Reality Labs division remains a financial sore point.
The unit, tasked with building the company’s metaverse products, posted a loss of $4.5 billion for the quarter.
This continues a trend of heavy losses, but analysts say the segment remains immaterial compared to Meta’s broader advertising operations.
Meta management has warned that expense growth will accelerate next year in step with rising capital investments.
This could potentially pressure margins if revenue growth does not keep pace. However, the market currently views Meta’s spending as a justifiable gamble on long-term growth.
Analysts back Meta’s strategy amid broader tech optimism
Meta is the third major tech company to report strong quarterly results this earnings season, following Alphabet and Microsoft.
Alphabet reported record sales and raised capital expenditure guidance by 13%, while Microsoft exceeded expectations, fuelled by 39% growth in its cloud division.
On Wall Street, sentiment toward Meta remains bullish.
Jefferies, TD Cowen, and Canaccord Genuity all reiterated buy ratings with price targets ranging between $875 and $950, representing significant upsides to its current share price of $695.21.
Jefferies said Meta is “well-positioned to capitalize on improving advertiser demand & AI momentum going forward”.
Pivotal Research called the company’s aggressive AI investments “reasonable,” given the size of its revenue gains. It kept a PT of $930 on the stock.
Scotiabank, more cautious, maintained a sector perform rating with a $685 target, warning that Meta must continue ramping up expenses to maintain momentum.
According to Zacks, Meta’s combination of earnings growth, revenue strength, and liquidity puts it among the top choices for institutional investors, calling it a “hedge fund hotel.”
The research firm also emphasized that ad revenue is the most critical metric for evaluating the company’s AI strategy.
“Overall, the core advertising engine is firing on all cylinders, with Meta generating 22% year-over-year growth in the segment,” it said, adding that a reasonable target into 2026 is between $900 and $1,000 per share.
With both impressions and pricing up in Q2, the data suggest AI is having a clear and measurable impact.
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Boeing posted its most encouraging quarterly performance since 2023, narrowing losses and stepping up jet deliveries even as it continues to recover from a regulatory crisis, a labour dispute, and persistent scrutiny over its safety and quality-control practices.
The planemaker’s net loss shrank by 58% from a year earlier, to $611 million, or 92 cents per share, in the quarter ended June.
Revenue jumped 35% to $22.7 billion, driven largely by a rebound in commercial jet deliveries, particularly the 737 MAX.
“Change takes time, but we’re starting to see a difference in our performance across the business,” CEO Kelly Ortberg said in a note to staff outlining improvements across Boeing’s businesses.
“If we continue to tackle the important work ahead of us and focus on safety, quality and stability, we can navigate the dynamic global environment and make 2025 our turnaround year,” he said.
However, while the share price was seen rising in pre-market trading, it fell by more than 1% on market open.
Despite lingering doubts about Boeing’s long-term trajectory, its shares have climbed over 36% this year.
737 production at regulatory ceiling as company eyes cash flow gains
Boeing delivered 150 commercial planes in the second quarter, including 206 737 MAX aircraft through the first half of the year.
The company is now producing 38 of the popular narrow-body jets per month — the maximum currently allowed by US aviation regulators.
That rate is critical for Boeing’s path back to consistent cash generation.
Free cash outflow stood at just $200 million, far better than Wall Street’s forecast of a $1.72 billion burn.
CEO Kelly Ortberg told employees the company won’t seek Federal Aviation Administration (FAA) approval to push output to 42 jets per month until internal metrics confirm readiness.
“We plan to seek FAA approval to increase to rate 42 when our key performance indicators (KPIs) show that we’re ready,” Ortberg added.
Defense wins and international deals strengthen outlook
A recent win to build the US Air Force’s next-generation jet fighter has lifted the outlook for Boeing’s defense, space and security division, which posted an operating profit of $110 million after a $913 million loss in the same period last year.
Trade pacts and recent jet orders from the European Union, the UK, and Indonesia have also bolstered confidence, as did Ortberg’s recent overhaul of top leadership roles in the finance and defense segments.
Profitability still elusive amid certification delays and labor unrest
Boeing hasn’t posted a full-year profit since 2018, and while the latest quarter reflects progress, several risks remain.
The union representing 3,200 defense workers in the St. Louis area has rejected a contract offer, potentially setting the stage for a strike that could slow Boeing’s military aircraft production.
While not as disruptive as last year’s 33,000-worker strike in the commercial unit, a defense division slowdown could imperil a fragile turnaround.
Meanwhile, certification of Boeing’s long-delayed 737 MAX 7 and MAX 10 models has been pushed into 2026 due to ongoing technical work on their anti-icing systems.
Still, Boeing increased production of its widebody 787 Dreamliner from five to seven jets a month at its South Carolina plant and logged 668 gross aircraft orders in the first half of the year — or 625 net of cancellations and conversions.
Investor sentiment improves but challenges persist
While Wall Street has grown more optimistic about Boeing’s recovery, the company continues to navigate a tightrope.
Its free cash performance and improved deliveries mark important milestones, yet any misstep — whether regulatory, operational, or labor-related — could derail fragile momentum.
The second-quarter adjusted core loss came in at $1.24 per share, well below the $2.90 loss reported a year earlier and ahead of analysts’ expectations for a $1.48 per-share loss.
Confidence boosted in Ortberg’s leadership
After years of lurching from one crisis to the next, Boeing is finally showing signs of stability under CEO Kelly Ortberg’s leadership.
The change in tone is notable for Boeing, which had seen a string of CEOs struggle to meet delivery targets, aircraft certifications, financial milestones, and much-needed cultural reforms — all while ceding ground to rival Airbus.
“The general agreement is that the culture is changing after decades of self-inflicted knife wounds,” said Richard Aboulafia, managing director at AeroDynamic Advisory, an aerospace consulting firm in a CNBC report.
“When he got the job, I was not anywhere as near as optimistic as today,” said Douglas Harned, senior aerospace and defense analyst at Bernstein.
Boeing now faces the task of maintaining production stability, advancing aircraft certifications, and averting labor disruptions — all while working to restore its reputation after years of safety lapses and leadership turbulence.
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Shares of Whirlpool Corporation (NYSE: WHR) fell 12% on Tuesday after the home appliance maker posted disappointing second-quarter results and cut its annual dividend nearly in half.
The stock had already plunged over 24% in the year so far.
The Q2 miss prompted Bank of America to downgrade the stock to underperform from neutral, citing weak discretionary demand, increased promotions, and a challenging global environment.
Analyst Rafe Jadrosich also slashed his price target by $30 to $70 per share, suggesting a further downside of nearly 28.5% from current levels.
Earnings miss and weak guidance drive selloff
Whirlpool reported Q2 CY2025 revenue of $3.77 billion, down 5.4% year over year and below analyst estimates of $3.89 billion, a miss of about 3%.
Earnings per share (GAAP) came in at $1.17, falling short of the consensus estimate of $1.58 by 25.8%.
Adjusted EBITDA stood at $284 million, also missing the Street’s forecast of $312.1 million.
Although the company reconfirmed its full-year revenue guidance at $15.8 billion (0.9% above analyst expectations), Wall Street focused on the underwhelming quarterly results and disappointing forward outlook.
Major domestic appliance sales declined year-over-year across all key geographies: North America, Latin America, and Asia.
Operating margin for the quarter was 5.4%, an improvement from 3.3% a year earlier.
However, the company’s free cash flow turned negative at -$63 million, a sharp reversal from the $275 million reported in the same period last year.
Dividend slashed amid financial pressure
Adding to investor concerns, Whirlpool management proposed a reduction in its annual dividend from $7.00 to $3.60 per share.
The move reflects mounting pressure on cash flows and elevated leverage following a weak quarter.
According to Jadrosich, the dividend cut is a signal that management is prioritizing balance sheet stability amid ongoing headwinds.
“Whirlpool has yet to benefit from tariffs on appliance imports despite its favorable US manufacturing footprint,” Jadrosich noted.
He cited two main reasons: retailers and manufacturers stocked up on inventory before tariffs took effect, and foreign competitors appear willing to absorb near-term margin losses to maintain market share.
The analyst warned that if tariffs lead to further industry-wide price increases, Whirlpool could face additional volume pressure in what remains a fragile consumer environment.
Analyst downgrade reflects medium-term concerns
Bank of America’s downgrade reflects concerns over Whirlpool’s near-term growth prospects.
Jadrosich believes slowing discretionary spending, increased promotional activity, and volatility in international markets will continue to weigh on the company’s valuation multiple through 2025.
Despite its sizable North American manufacturing base, Whirlpool has yet to see meaningful benefit from trade policy changes.
The combination of weakening demand and limited pricing power is putting strain on profitability and investor confidence.
With a market capitalization of $5.55 billion, Whirlpool remains a major player in the global appliance industry.
However, Tuesday’s selloff underscores the challenges it faces as macroeconomic headwinds, competitive pressure, and shifting consumer behavior converge to limit upside in the near term.
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On Tuesday, the International Monetary Fund (IMF) modestly raised its global growth predictions for 2025 and 2026, noting unexpectedly strong trade activity ahead of a scheduled hike in US tariffs and a recent decline in the effective US tariff rate.
However, the Fund warned that persistent trade policy uncertainty, growing fiscal deficits, and geopolitical concerns continue to jeopardise global economic recovery.
Global growth is now seen at 3% in 2025, 0.2 percentage points higher than previously forecast, and at 3.1% in 2026, 0.1 points stronger, the IMF said.
Yet both numbers are still lower than the 3.3% prediction released in January, and well below the 3.7% pre-pandemic average.
“The world economy is still hurting, and it’s going to continue hurting with tariffs at that level, even though it’s not as bad as it could have been,” said Pierre-Olivier Gourinchas, the IMF’s chief economist.
Tariff-driven surge masks underlying weakness
The mild uptick in growth outlook is mainly driven by pre-emptive buying as companies rushed to frontload orders to avoid a US tariff onset on August 1.
While the US tariff rate has decreased from a high of 24.4% to an effective rate of 17.3%, this is still a significant distance away from the 2.5% level as of January 3rd of this year.
For the rest of the world, the tariff rate has also come down to 3.5% from 4.1% in April, but uncertainties abound: Tariffs that have yet to be imposed, for example, on pharmaceuticals, lumber, and semiconductors, are not yet incorporated into IMF projections.
While the recent surge in activity is positive, it is unlikely to last, Gourinchas warned.
“That is going to fade away,” he said. “There is going to be payback for that front loading, and that’s one of the risks we face.”
Despite modest improvements, risks remain
The IMF stressed that the global economic outlook remains fragile, with risks leaning toward the downside.
It identified continuing trade disputes, high tariffs, and increasing fiscal deficits as factors that could raise interest rates and tighten global financial conditions.
Despite recent deals between the United States, Japan, and the European Union on new 15% tariffs, they were too late to impact the July prediction.
IMF staff simulations indicate that if the maximum tariffs indicated in recent months were imposed, global growth in 2025 may be 0.2 percentage points lower than the present prediction.
The IMF also observed that underlying economic activity in many regions appeared to be influenced more by trade policy distortions than by true strength.
Temporary gains from front-loading may fade
Trade volumes were temporarily bolstered by US businesses stocking up on imports before previously announced tariffs were set to be raised.
Nonetheless, the IMF anticipates this “massive amount” of front-loading to be unwound in the second half of 2025, weighing on growth well into 2026.
US inflation should remain elevated above target over this time due to the rates of transmittance from tariffs to consumer prices.
World inflation should decelerate to 4.2% by 2024 and 3.6% by 2026, but the US experience may have longer-lasting price pressure.
The outlook for US growth was raised slightly to 1.9% in both 2025 and 2026, lifted by a new tax cut and spending package.
According to IMF estimates, this has increased the US budget deficit by 1.5 percentage points, partly offset by tariff revenues.
Shifting trade dynamics weigh on the outlook
The IMF raised China’s 2025 growth prediction by 0.8 percentage points, citing better-than-expected performance in the first half of the year and a temporary truce with the United States that decreased tariffs.
Growth in 2026 is predicted to be 4.2%, up 0.2 percentage points.
In the eurozone, growth for 2025 has been revised up to 1%, owing partly to a strong increase in Irish pharmaceutical exports to the United States.
The 2026 forecast stays unchanged at 1.2%.
Emerging markets and developing economies are expected to rise by 4.1% in 2025 and 4.0% in 2026.
Meanwhile, the IMF upped its global trade growth prediction for 2025 to 2.6%, a 0.9 percentage point gain, but decreased the 2026 forecast to 1.9%, a 0.6 point decrease, reflecting the ephemeral nature of current trade activity.
One unexpected trend has been the weakening of the US dollar, which Gourinchas stated had not occurred during previous periods of trade dispute.
While a weaker currency eases financial circumstances in the United States, it increases the impact of tariffs on other economies.
In summary, while the global economy has shown resilience in the face of policy shocks, the IMF’s most recent report emphasises that uncertainty, particularly around trade, is likely to continue to weigh on investment, inflation, and long-term growth.
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United Parcel Service Inc. (NYSE: UPS) is preparing for a major change in its business as it expects to lose half of its Amazon-related volume over the next six quarters, according to Bank of America analyst Ken Hoexter.
The anticipated decline highlights the growing pressure on UPS CEO Carol Tomé to steer the company toward higher-margin segments, amid a broader backdrop of revenue challenges and evolving global trade conditions.
UPS stock tanked nearly 8.0% on Tuesday after reporting disappointing numbers for its fiscal Q2.
Why is UPS losing Amazon business?
UPS is losing Amazon business as the e-commerce behemoth continues to internalise its logistics operations.
Amazon has been committed to expanding its own delivery network, reducing reliance on 3rd party carriers like United Parcel Service; a transition that forces UPS to reevaluate its customer mix and operational priorities.
UPS chief executive Carol Tomé is responding by doubling down on higher-margin segments and cutting costs aggressively, including facility closures and workforce reductions, to offset volume declines and preserve profitability.
However, her efforts have so far not resulted in sufficient confidence in updating the full-year outlook.
On Tuesday, the shipping giant cited macroeconomic uncertainty as it again refrained from offering more colour on what it expects for the remainder of 2025.
Including today’s post-earnings decline, UPS shares are down over 30% versus their year-to-date high.
What tariffs mean for UPS stock in 2025
UPS’s international business is facing headwinds from “de minimis” tariffs on low-value Chinese shipments.
These levies, introduced by the White House in May, have disrupted the flow of bargain e-commerce goods from platforms like Temu and Shein – key contributors to the multinational’s Sino-US trade volume.
In an interview with CNBC, Ken Hoexter said UPS’s international margins have dropped to 14%, their lowest in over a decade, due to the removal of the de minimis exemption, which is significantly hurting discretionary online purchases.
This margin compression, he added, is weighing significantly on investor sentiment, contributing to a continued downtrend in UPS stock price in 2025.
BofA still says buy UPS stock on post-earnings dip
Despite near-term challenges, the Bank of America analyst maintained his bullish stance on UPS stock, viewing the post-earnings dip as a buying opportunity for long-term investors.
Ken Hoexter believes the company’s aggressive cost-cutting measures and strategic pivot toward higher-margin business will pay off in the long run.
BofA has a $115 price target on United Parcel Service that indicates potential upside of more than 20% from here.
Additionally, an exceptionally lucrative dividend yield of more than 7.0% makes UPS shares all the more attractive to own for the back half of 2025.
Investors should note that BofA is not the only Wall Street firm that’s keeping positive on United Parcel Services.
The consensus rating on the shipping and logistics company also currently sits at “overweight”.
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