2025-07-23 02:22

America Movil's earnings surpass analysts' forecasts Q2 swings to $1.19 billion profit after loss a year ago Group points to FX gains, more post-paid mobile users US tariffs helped weaken dollar versus many Latam currencies MEXICO CITY, July 22 (Reuters) - Mexican telecoms giant America Movil (AMXB.MX) , opens new tab reported on Tuesday a swing to profit in the second quarter of 2025, surpassing analysts' forecasts and fueled by foreign exchange gains from currencies across Latin America. Analysts are scrutinizing the firm's earnings results for clues to the landscape of toughening competition in Mexico, the region's second-largest economy, where rivals such as Walmart (WALMEX.MX) , opens new tab and Televisa (TLEVISACPO.MX) , opens new tab jostle for subscribers. Sign up here. America Movil pointed in a report to 11 billion pesos in FX gains - equivalent to half its net profit - which it said had allowed it to "significantly" cut down its financing costs. Net profit for the group, controlled by the family of Mexican billionaire Carlos Slim, hit 22.28 billion pesos ($1.19 billion) in the three months through June, rebounding from a loss of 1.09 billion pesos in the corresponding quarter a year earlier. Analysts polled by LSEG had expected profit of $1.13 billion. Revenues for the firm, which operates across Latin America and Europe, rose 14% to 233.79 billion pesos, or $12.46 billion, also above analysts' forecast of $12 billion. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 11% to 92.41 billion pesos. Scotiabank analysts hailed the Mexico revenues of America Movil as "remarkably resilient in light of a weak economy" and competition, adding that they believed fixed internet rivals would hit back with price cuts and improved speed and quality. Such competition is highlighted by the efforts of retail giant Walmart's (WMT.N) , opens new tab mobile service Bait, which added 1.7 million new active users versus the prior three months, while broadcaster Televisa's (TLEVISACPO.MX) , opens new tab broadband service swept in thousands of new customers. WEAKER PESO, STRONG FX GAINS America Movil said its revenue, reported in Mexican pesos, was also boosted by the currency's depreciation against most others in the regions where it operates. "The second quarter was characterized by significant uncertainty associated with the tariffs that the U.S. government seeks to impose on merchandise imports," it said. As a result, it added, the U.S. dollar also weakened against most currencies in the company's operating region. America Movil said mobile services growth was driven by its post-paid segment, which added 2.9 million customers in the three months through June, including 1.4 million from Brazil. Its pre-paid platform, however, was hit by 1.1 million net disconnections, though the firm added 462,000 new broadband connections, half in its home market of Mexico. Scotiabank analysts also pointed to a "rare" inflow from the group's pension funding in the second quarter, which they said was unlikely to continue due to union tensions over company plans to convert pension liability into stock. ($1=18.7654 pesos at end-June) https://www.reuters.com/business/media-telecom/telecoms-giant-america-movil-swings-profit-foreign-exchange-gains-2025-07-22/

2025-07-23 00:43

Asian shares cheers Trump announcement of Japan trade deal U.S.-China officials to discuss trade deal extension in Stockholm Wall Street mixed as tariffs impact corporate earnings SYDNEY, July 23 (Reuters) - Japanese shares led an Asian share market rally on Wednesday after U.S. President Donald Trump announced a trade deal with Japan and fuelled hopes of more to come, offsetting mixed U.S. earnings that highlighted the drags from higher tariffs. Trump late on Tuesday announced a trade deal with Tokyo that he said will result in Japan investing $550 billion into the United States and paying a 15% reciprocal tariff. It followed an agreement with the Philippines that will see the U.S. collect a 19% tariff rate on imports from there. Sign up here. "Though details are not yet available, it is commendable that the 25% baseline tariff was avoided," Norihiro Yamaguchi, senior Japan economist at Oxford Economics. "In the short run I think lowered uncertainty will be welcomed in the equity market. But global trade policy uncertainty will remain high, meaning that today's conclusion will provide little upside to the real economy." The U.S. president also said representatives from the European Union are coming for trade negotiations on Wednesday. In another positive development, U.S. and Chinese officials will meet in Stockholm next week to discuss an extension to the August 12 deadline for negotiating a trade deal, Treasury Secretary Scott Bessent said. Japan's Nikkei (.N225) , opens new tab rose 1.7% on Wednesday as shares of automakers surged. Mazda Motor (7261.T) , opens new tab rallied 12% while Toyota Motor (7203.T) , opens new tab jumped 10%. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab advanced 0.2% underpinned by higher openings in Australia (.AXJO) , opens new tab and South Korea (.KS11) , opens new tab. The yen initially gained on the news, but was last flat at 146.68 per dollar. Nasdaq futures climbed 0.1% and S&P 500 futures gained 0.2% in Asia. Overnight, Wall Street closed mixed as investors assessed a spate of varied earnings and signs that Trump's trade war is hitting corporate profit margins. General Motors (GM.N) , opens new tab tumbled 8.1% after the automaker reported a $1 billion hit from tariffs to its quarterly results. Investors are now waiting for results from Tesla (TSLA.O) , opens new tab and Google's parent Alphabet (GOOGL.O) , opens new tab - the Magnificent 7 stocks that have driven much of the market rally fuelled by AI optimism. In the foreign exchange market, the dollar index was flat at 97.45 against its major peers, having slipped 0.4% overnight to mark the third straight day of declines. Benchmark 10-year U.S. Treasury yields ticked up 2 basis points to 4.3579, after slipping 3 bps overnight, as Trump continued to lash out at Federal Reserve Chair Jerome Powell for not cutting interest rates, although Bessent said there was no need for him to step down immediately. Bessent did say the Fed's vital independence on monetary policy is threatened by its "mandate creep" into non-policy areas and he called on the U.S. central bank to conduct an exhaustive review of those operations. Spot gold prices were steady at $3,429 an ounce. https://www.reuters.com/business/autos-transportation/global-markets-wrapup-1-2025-07-23/

2025-07-23 00:41

SAO PAULO, July 22 (Reuters) - Brazilian miner Vale (VALE3.SA) , opens new tab produced 83.6 million metric tons of iron ore in the second quarter, up 3.7% from a year earlier, the company reported on Tuesday. In its output and sales report, Vale said the increase was mainly driven by a new second-quarter record at the S11D mining project in northern Brazil, its top iron ore producer, and "strong performance" at its southeastern Brucutu mine. Sign up here. "In iron ore, the combination of new assets ramping up and greater operational reliability is supporting stronger adherence to the 2025 production plan," Vale said. The company, one of the largest iron ore producers in the world, expects to produce between 325 million and 335 million tons of iron ore this year. Citi analysts including Alexander Hacking said Vale posted a "solid quarter", noting the firm is "on track to meet (its) guidance". "We expect the stock to trade inline tomorrow," they added. Vale reported iron ore sales at 77.3 million tons in the quarter, down 3.1%, with the company's average realized price of iron ore fines landing at $85.1 per ton, a 13.3% fall. Vale said the sales were impacted by its portfolio optimization strategy to prioritize its medium-grade product offering, and also cited stock replenishment. BASE METALS Vale's copper production rose nearly 18% in the period to about 92,600 tons, it said, pointing to higher grades achieved at Brazil's Sossego plant, nominal capacity at its Salobo complex, also in Brazil, and the ramp-up of the Voisey's Bay project in Canada. Copper sales rose 17% to some 89,000 tons, Vale said. Meanwhile, nickel production increased some 44%, reaching about 40,300 tons, which Vale attributed to better performance of its Canadian assets and its Onca Puma mining project in Brazil, as well as "lower planned maintenance activity". Nickel sales rose nearly 21% to about 41,400 tons. Vale is set to release full second-quarter earnings on July 31. https://www.reuters.com/world/americas/vales-iron-ore-output-up-4-with-record-q2-key-mine-2025-07-23/

2025-07-23 00:36

Both sides hope for modest climate agreement at shortened summit EU officials will raise trade imbalance, Ukraine, rare earths EU expecting few concrete actions from China on key issues BEIJING, July 22 (Reuters) - Expectations are rock-bottom for an EU-China summit on Thursday that will test European resolve and unity as the bloc faces intense trade pressure from both Beijing and the United States, analysts say. European Commission President Ursula von der Leyen and European Council President Antonio Costa plan to press Chinese leaders on rare earths and the war in Ukraine, both areas of tension, during the summit in Beijing. Sign up here. There is little hope for headway, at a time both sides face major challenges sustaining economic growth and Europe struggles to shore up support for Ukraine. The summit was shortened from two days to one due to a "scheduling conflict" raised by Chinese officials, two sources familiar with the planning told Reuters. A business roundtable that was meant to happen on the second day in the city of Hefei will now take place in Beijing, one of the sources said. Both sides may reach a modest joint statement on climate, one of the sources said, but no other tangible achievements are expected. In multiple recent speeches, von der Leyen has revived hawkish China rhetoric, accusing China , opens new tab on July 8 of "enabling Russia's war economy" and flooding global markets with overcapacity. "We know that we don't see eye to eye with China on many issues, but we believe that it is essential to have this kind of very direct and open and constructive conversation," said one EU official. The official and the sources declined to be identified as they were not authorised to speak to media. A spokesperson for the European Commission referred to a statement announcing the summit, which said leaders would discuss ways of ensuring "a more balanced, reciprocal and mutually beneficial trade relationship". In response to Reuters' questions, the Chinese foreign ministry referred to a spokesperson's statement on Monday. "Some people in Europe continue to ... exaggerate specific economic and trade issues and make groundless accusations against China on the Ukraine issue, causing unnecessary interference to China-EU relations," its spokesperson said. RISING TENSIONS The 27-member European Union has also been negotiating hard with Washington after U.S. President Donald Trump threatened 30% tariffs on most EU exports from Aug. 1, with prospects for a broader trade deal fading. At the Beijing summit, China hopes to press the EU for a solution to its tariffs on China-built electric vehicles, for which Beijing claims price commitment negotiations are in the "final stages". But European officials say there has been little progress for months. Last week, China threatened to respond to EU sanctions on two Chinese banks and five firms over the Ukraine war. Its commerce ministry said on Monday the sanctions "seriously harmed trade, economic and financial ties". Other trade disputes are simmering in the background. China retaliated against EU restrictions on medical device procurement with its own curbs on July 6, and slapped duties on French cognac producers. China's exports to the EU grew in May while its U.S. exports plunged 34.5% in value terms the same month, sparking fears Chinese trade overcapacity is being diverted to the bloc due to U.S. tariffs on Chinese goods. There is also a growing sense that EU firms are collateral damage for China's rare earth export controls that primarily targeted Washington but have disrupted European defence and automotive supply chains. In return for concessions on rare earths, China's asks could include reviving a long-stalled investment agreement after Beijing lifted sanctions on European Parliament members in May, and pushing back on U.S. export curbs on Dutch firm ASML's chipmaking equipment. China has raised both in the weeks leading up to the summit, two sources familiar with the matter said. 'GLOVES OFF' "The mood is extremely pessimistic in Europe regarding the summit," said Mathieu Duchatel, a director at the Institut Montaigne think tank in Paris, adding that Washington rejected previous EU proposals for coordination on China policy. "There is a sense that the gloves are completely off on the Chinese side ... They sense the transatlantic relationship has weakened and are trying to seize the opportunity." Diplomats and analysts also say that China is growing increasingly frustrated behind closed doors with European officials' repeated insistence on the war in Ukraine, which Beijing views as an obstacle in the relationship. There is little space for constructive dialogue on this, another EU official admitted, with Chinese counterparts denying evidence of Chinese firms' involvement in supplying dual-use goods to Russia. Meanwhile, China believes Europe will cave in to U.S. tariff pressure, said a diplomat familiar with Chinese official thinking. Beijing succeeded in getting Trump to lower crushing 145% tariffs during talks in May and scored a further win when Washington agreed to resume Nvidia H20 AI chip exports, leaving it in a relatively strong position. "This will be the latest in a long list of EU-China summits that have delivered next to nothing," said Noah Barkin, senior advisor at Rhodium Group's China practice. "It is a sign that the economic and security problems in the relationship have become so deep-seated as to be irreconcilable." https://www.reuters.com/world/china/eu-leaders-brace-frosty-china-summit-trade-frictions-bite-2025-07-22/

2025-07-22 23:56

TOKYO, July 22 (Reuters) - Japan has launched an anti-dumping investigation into nickel-based stainless cold-rolled steel sheets and strips imported from China and Taiwan, its trade and finance ministries said on Tuesday. The move follows a petition filed on May 12 by Nippon Steel (5401.T) , opens new tab and other domestic manufacturers, who claim they have been forced to lower prices due to weakening domestic demand as buyers have shifted to cheaper imports. Sign up here. The Ministry of Economy, Trade and Industry and the Ministry of Finance plan to complete the investigation within a year and will then decide whether to impose anti-dumping duties. According to the application submitted by the steelmakers, imported products were being sold in Japan at prices 20% to 50% lower than those in China and 3% to 20% lower than those in Taiwan. The Japanese steelmakers claim they have been unable to set prices that reflect rising costs, leading to a decline in operating profits and other damages. Excess production and exports by Chinese steelmakers have become an international concern. Japan is among a number of countries that have criticised Chinese companies for receiving government subsidies to produce excess steel and then exporting it at cheap prices, worsening global market conditions. While other countries have imposed anti-dumping measures or similar actions against China, Japan has yet to do so. Tadashi Imai, chairman of the Japan Iron and Steel Federation and also president of Nippon Steel, has repeatedly warned the global rise in protectionism could leave Japan vulnerable to inexpensive steel imports, hurting domestic production. Taiwan's economy ministry, in a statement sent to Reuters, said when it came to such cases it would help impacted companies respond "in order to protect their export interests." China's commerce ministry did not immediately respond to a request for comment. https://www.reuters.com/world/china/japan-launches-anti-dumping-probe-into-stainless-steel-sheets-china-taiwan-2025-07-22/

2025-07-22 23:47

July 23 (Reuters) - Australia's Woodside Energy (WDS.AX) , opens new tab reported a stronger-than-expected 8% rise in second-quarter revenue on Wednesday due to robust output from Senegal's Sangomar project, though it marginally lowered its annual production forecast following an asset divestment. Woodside in late March agreed to sell offshore oil and gas assets in Trinidad and Tobago to London-based Perenco, which included production facilities and interests in the shallow water Angostura and Ruby fields within the Greater Angostura project. Sign up here. The country's top gas producer posted revenue of $3.28 billion for the three months ended June 30, surging 8% from $3.04 billion a year earlier and comfortably exceeding the Visible Alpha consensus estimate of $3.09 billion. The revenue beat underscores the strong performance of the Sangomar project, which has emerged as a key growth driver for the company. Overall production jumped 13% to 50.1 million barrels of oil equivalent (mmboe) during the quarter, up from 44.4 mmboe in the same period last year. As a result of the asset sale, Woodside marginally adjusted its 2025 production forecast to between 188 and 195 mmboe, compared with its previous guidance range of 186 to 196 mmboe. https://www.reuters.com/business/energy/woodsides-second-quarter-revenue-beats-estimates-sangomar-output-trims-2025-2025-07-22/