2025-07-22 20:32
GM maintains tariff impact of $4 billion to $5 billion for the year Automakers shift focus to gas vehicles as EV demand slows, tax credits end Shares down 8% Tuesday EV growth slows, GM invests in gas-powered vehicle production GM's US sales rise 7%, strong pricing on trucks and SUVs July 22 (Reuters) - General Motors' (GM.N) , opens new tab second-quarter earnings took a $1.1-billion hit from tariffs, but the automaker still beat analyst expectations for the period on Tuesday, supported by strong sales of its core gasoline trucks and SUVs. The largest U.S. automaker by sales said it expects the tariff impact to worsen in the third quarter and stuck to a previous estimate that trade headwinds threaten to hit the bottom line by $4 billion to $5 billion this year. GM said it could take steps to mitigate at least 30% of that impact. Sign up here. Shares fell 8%. The automaker's revenue in the quarter ended June 30 fell nearly 2% to about $47 billion from a year ago. Its quarterly adjusted earnings per share fell to $2.53 compared with $3.06 a year earlier. Analysts on average expected adjusted profit of $2.44 per share, according to data compiled by LSEG. Its adjusted earnings before interest and taxes fell 32% to $3 billion. GM was among corporations that revised annual guidance due to the impact from U.S. President Donald Trump's tariffs, lowering it to an annual adjusted core profit of between $10 billion and $12.5 billion. The company on Tuesday stood by that forecast. CFRA Research analyst Garrett Nelson wrote in a Tuesday morning note that one of the reasons shares dropped was because investors were disappointed the automaker did not raise guidance. Beyond tariffs, GM’s underlying business in the quarter was solid. Sales in the U.S. market – its main source of profit – rose 7%, while the company continued to command strong pricing on its pickup trucks and SUVs. GM swung back to a small profit in China, after losing money there a year earlier. Analysts said GM may need to cut investment in future projects or find other ways to trim spending to offset the effect of tariffs. The automaker is so far keeping pricing consistent and absorbing added tariff costs rather than passing them on to customers. Jeep-maker Stellantis (STLAM.MI) , opens new tab on Monday warned that tariffs would significantly affect results in the second half of 2025, and said tariffs cost it about 300 million euros in the first half of the year. Shares of Ford Motor (F.N) , opens new tab fell about 1% on Tuesday, and U.S.-traded shares of Stellantis edged up less than 1%. GM took several steps in recent months to bolster its combustion-engine operations through increased investment in its U.S. factory base, calling into question its goal of ending the production of gas-powered cars and trucks by 2035. "Despite slower EV industry growth, we believe the long-term future is profitable electric vehicle production, and this continues to be our north star," GM CEO Mary Barra told analysts Tuesday. GM announced in June that it would invest $4 billion at three U.S. facilities in Michigan, Kansas, and Tennessee, including a plan to move production of the Cadillac Escalade and increase output of its two big pickup trucks. It added production of its previously Mexico-produced Chevy Blazer to the Tennessee plant. The automaker imports about half of the vehicles it sells in the U.S., mainly from Mexico and South Korea. Crosstown rival Ford produces about 80% of its U.S.-sold vehicles domestically. Ford is expected to report second-quarter results next week Car companies are increasingly shifting their focus to bolstering the core lineup of gas trucks and SUVs, as the growth rate of EV sales has slowed. Demand for battery-powered models already has slowed after rapid growth earlier this decade. The trend is intensified by the pending disappearance of government support for the battery-powered models. Sweeping tax and budget legislation approved by Congress will eliminate $7,500 tax credits for buying or leasing new electric vehicles and a $4,000 used-EV credit at the end of September. Trump also signed tax and budget legislation that eliminates fines for failures to meet fuel economy rules, a move that makes it easier to build more gas-powered vehicles. https://www.reuters.com/business/autos-transportation/trump-tariffs-take-1-billion-bite-out-gm-earnings-shares-fall-2025-07-22/
2025-07-22 20:25
MEXICO CITY, July 22 (Reuters) - Mexican broadcaster Televisa (TLEVISACPO.MX) , opens new tab on Tuesday reported a net profit of 474.5 million pesos ($25.3 million) for the second quarter, landing in the black after logging a 25.6 million peso loss in the year-ago period. Revenues slid 6%, meanwhile, to 14.73 billion pesos, in line with the estimate from analysts polled by LSEG. Sign up here. ($1 = 18.7654 pesos at end-June) https://www.reuters.com/business/media-telecom/mexican-broadcaster-televisa-flips-profit-second-quarter-2025-07-22/
2025-07-22 20:20
US dollar subdued as investors await tariff clarity Gold extends gains against soft dollar US-EU trade deal prospects fade as deadline nears Oil prices drop amid demand concerns NEW YORK, July 22 (Reuters) - The Dow gained while the Nasdaq lost ground on Tuesday and crude settled lower as investors assessed a spate of mixed earnings and signs that President Donald Trump's protracted trade war is hitting corporate profit margins, even as Trump's dealmaking deadline approached. The S&P 500 closed with nominal gains as underperforming tech shares (.SPLRCT) , opens new tab dragged the Nasdaq into the red. Sign up here. Gold extended its gains in opposition to the softening dollar, and U.S. Treasury yields eased for the third-straight session. "(Investors are) looking for additional catalysts and you're seeing some cautious comments coming out of companies," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. "They're hearing mixed guidance when it comes to all this uncertainty revolving around tariffs and the direction things are heading." Second-quarter earnings season has hit full stride, with nearly one-fifth of the companies in the S&P 500 having reported. Of those, 79% have beaten analyst expectations, according to LSEG data. Analysts expect year-on-year S&P 500 earnings growth of 7%, on aggregate, a sizable improvement over the 5.8% growth predicted as of July 1, per LSEG. Still, the effects of the trade war have begun seeping into corporate results. General Motors' (GM.N) , opens new tab second-quarter core profit slid 32% as steep tariff costs took a $1.1-billion bite from its bottom line. Prospects of a U.S.-European Union trade deal appeared to be fading as Washington's August 1 deadline loomed, prompting EU members to ramp up possible "anti-coercion" retaliatory measures. U.S. Treasury Secretary Scott Bessent said on Tuesday he would meet with his Chinese counterpart to discuss delaying the August 12 trade talks deadline with China again, as the world's two largest economies wrestle with the flow of technology and rare earth materials. "These are pretty classic negotiations; nothing ever happens until it has to happen," says Chuck Carlson, CEO at Horizon Investment Services in Hammond, Indiana. "Nothing gets done until the deadline, then either the deadline gets extended or there's some resolution that comes out of nowhere." "The flip side of this is Trump's going to have to follow through eventually," Carlson added. "Otherwise, he’s going to be the boy that cried wolf, and his negotiating power is going to be sapped because people will believe he's never going to follow through." The Dow Jones Industrial Average (.DJI) , opens new tab rose 179.12 points, or 0.40%, to 44,502.19, the S&P 500 (.SPX) , opens new tab rose 3.99 points, or 0.06%, to 6,309.59 and the Nasdaq Composite (.IXIC) , opens new tab fell 81.49 points, or 0.39%, to 20,892.69. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 0.68 points, or 0.07%, to 930.31. The pan-European STOXX 600 (.STOXX) , opens new tab index fell 0.41%, while Europe's broad FTSEurofirst 300 index (.FTEU3) , opens new tab fell 8.50 points, or 0.39% Emerging market stocks (.MSCIEF) , opens new tab fell 3.93 points, or 0.31%, to 1,249.53. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab closed lower by 0.17%, to 657.56, while Japan's Nikkei (.N225) , opens new tab fell 44.19 points, or 0.11%, to 39,774.92. The dollar continued to edge lower amid a subdued currency market as investors awaited any sign of progress in trade talks ahead of the August 1 deadline. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.5% to 97.36, with the euro up 0.49% at $1.1752. Against the Japanese yen , the dollar weakened 0.56% to 146.56. Bitcoin gained 1.98% to $119,320.90. Ethereum declined 2.41% to $3,668.31. U.S. Treasury yields appeared set to notch a third-straight day of declines as the market took a breather on the heels of Monday's rally. The yield on benchmark U.S. 10-year notes fell 2.8 basis points to 4.342%, from 4.37% late on Monday. The 30-year bond yield fell 2.6 basis points to 4.9111% from 4.937% late on Monday. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 1.9 basis points to 3.833%, from 3.852% late on Monday. U.S. crude slid 1.47% to settle at $66.21 per barrel, while Brent settled at $68.59 per barrel, down 0.9%. Spot gold rose 1.07% to $3,431.87 an ounce. U.S. gold futures rose 1.15% to $3,441.00 an ounce. https://www.reuters.com/world/china/global-markets-update-6-graphic0-2025-07-22/
2025-07-22 20:18
MEXICO CITY, July 22 (Reuters) - Mexico's finance ministry announced an upcoming operation on Tuesday aimed at strengthening the finances of the country's heavily-indebted state energy company Petroleos Mexicanos (Pemex). In a statement, the ministry said the operation would consist of issuing financing instruments called pre-capitalized notes, but that the operation would not constitute a guarantee for the company. Sign up here. The ministry's statement did not say how much the sale aimed at raising for Pemex. Earlier on Tuesday, Bloomberg News reported, citing unnamed sources, that the government was looking to raise between $7 billion and $10 billion with the sale. Pemex, the world's most indebted energy company, has an outstanding debt with an extensive list of suppliers and contractors of around $20 billion, in addition to another financial debt of $101 billion, despite the injection of billions of dollars from the government in the last few years to face the amortizations. Pemex's international dollar bonds rallied on Tuesday after the government announced the debt operation. Pemex bonds rose across the curve, with the 2050 issue up 2.6 cents at 80.65 cents on the dollar. Most maturities between 2027 and 2031 rose over 1 cent each. https://www.reuters.com/business/energy/mexico-announces-debt-sale-fortify-pemexs-troubled-finances-2025-07-22/
2025-07-22 20:17
Tariffs take $1 billion bite from GM earnings, shares tumble RTX down after cutting 2025 profit forecast S&P 500 +0.06%, Nasdaq -0.39%, Dow +0.40% July 22 (Reuters) - The S&P 500 eked out a record-high close on Tuesday, following steep losses in General Motors and a gain in Tesla as investors focused on recent and upcoming quarterly reports and watched for signs of progress in U.S. trade discussions. GM (GM.N) , opens new tab tumbled 8.1% after the automaker reported a $1 billion hit from tariffs to its quarterly results, adding more fuel to investor concerns about U.S. President Donald Trump's global trade policy. Shares of Ford Motor (F.N) , opens new tab fell about 1%. Sign up here. Tesla (TSLA.O) , opens new tab climbed 1.1% a day before its quarterly report, while Alphabet (GOOGL.O) , opens new tab, also reporting on Wednesday, rose 0.65%. Optimism about heavy spending on artificial intelligence has underpinned a rally in Wall Street's most valuable companies, with the S&P 500 trading around record highs. "The market is consolidating recent gains and is in a bit of a holding pattern with some huge catalysts over the next week or two, including the August 1 tariff deadline and a lot of important Magnificent Seven earnings," said Ross Mayfield, an investment strategy analyst at Baird. Other Big Tech stocks lost ground, with Meta Platforms (META.O) , opens new tab and Microsoft (MSFT.O) , opens new tab both losing about 1%. Shares of RTX (RTX.N) , opens new tab dropped 1.6% after the aerospace and defense giant t from Trump's trade war despite strong demand for its engines and aftermarket services. Lockheed Martin (LMT.N) , opens new tab tumbled almost 11% after its quarterly profit plunged by about 80%. U.S. trade policy remains a major point of uncertainty for investors and companies as Trump's self-imposed August 1 deadline for many countries to reach agreements with the White House approaches. U.S. Treasury Secretary Scott Bessent said he would meet his Chinese counterpart next week to discuss an extension to the August 12 deadline set for tariffs on imports from China. Other trade negotiations appeared stalled, with optimism for a breakthrough deal with India waning and EU officials weighing countermeasures against the United States. The S&P 500 climbed 0.06% to end the session at 6,309.62 points. The Nasdaq declined 0.39% to 20,892.69 points, while the Dow Jones Industrial Average rose 0.40% to 44,502.44 points. Nine of the 11 S&P 500 sector indexes rose, led by healthcare (.SPXHC) , opens new tab, up 1.9%, followed by a 1.78% gain in real estate (.SPLRCR) , opens new tab. Volume on U.S. exchanges was relatively heavy, with 18.8 billion shares traded, compared with an average of 17.7 billion shares over the previous 20 sessions. Philip Morris (PM.N) , opens new tab slumped 8.43% after reporting second-quarter revenue below expectations, as shipments of its ZYN nicotine pouches disappointed investors. Analysts on average expected S&P 500 companies to report a 7% increase in earnings for the second quarter, with technology heavyweights driving much of that gain, according to LSEG I/B/E/S. After last week's mixed economic data, traders have all but ruled out an interest-rate cut from the U.S. Federal Reserve at next week's policy meeting. They now see about a 60% chance of a reduction in September, according to the CME's FedWatch tool. Advancing issues outnumbered falling ones within the S&P 500 (.AD.SPX) , opens new tab by a 4.3-to-1 ratio. The S&P 500 posted 21 new highs and 1 new low; the Nasdaq recorded 73 new highs and 41 new lows. https://www.reuters.com/business/sp-500-notches-record-high-close-gm-slumps-tariffs-bite-2025-07-22/
2025-07-22 20:01
Authorities close Acropolis for five hours Scorching heat also hits Bulgaria, Montenegro Wildfires burn in Greece, Kosovo, Albania ATHENS, July 22 (Reuters) - Greece and the wider Balkans sweltered under the third heatwave of the summer on Tuesday, with labourers barred from work, tourists kept away from the ruins and firefighters battling blazes scattered across the arid countryside. Couriers, food delivery riders and builders in and around Athens and other regions were ordered to pause work from midday until 5 p.m., as the temperature was expected to climb as high as 43 degrees Celsius (109.4 F), the labour ministry said. Sign up here. In the Feneo area in Corinth in southern Greece, 185 firefighters with 50 vehicles were combating a strong forest fire, helped by 15 planes and 11 helicopters. Two villages there were evacuated out of precaution as the fire raged. The governor of the surrounding Peloponnese region, Dimitris Ptochos, said the situation was difficult, local media reported. Greece has long been known for the hot, sunny summers that attract tens of millions of tourists every year. But climate change has led to longer and more severe heatwaves, as well as destructive floods and wildfires. Authorities said they would shut the ancient Acropolis ruins, Greece's most-visited tourist site atop a rocky hill above Athens, for five hours from midday on Tuesday and Wednesday. Matthew Enos, an 18-year-old visitor from New Orleans, said he had not been prepared for such a heatwave when he arrived in the capital. "It's been a little tough so far. Not the greatest feeling ever," he said. "So I've just been adapting by drinking lots and lots of water." COWS GRAZE AT BOTTOM OF EMPTY LAKE Tourists sought out air-conditioned restaurants and stores in Athens, one of the most densely populated capitals in Europe, which bakes on a plain flanked by mountains. The heatwave will continue until Sunday, the Greek meteorological service said. Scorching heat also gripped neighbouring Bulgaria, with authorities urging businesses to give away water and cut physical labour during high-risk hours. On the border between Kosovo and Albania, weeks without rain and increased hydroelectric power production nearly emptied Lake Fierza. Cows ate grass in what used to be the lake bottom. In Kosovo, flames and thick smoke could be seen approaching houses in a village in the Dubrava area near a jail and a military base on Tuesday. The fire was out of control in an area of scrubland and grass, fanned by heavy winds. Elsewhere in Kosovo, Milazim Duraku, a 62-year-old farmer from Prizren, chided younger workers for seeking shelter as he picked yellow peppers for sale at market the following morning. "Those youngsters they can't stand the heat. They work only a few minutes in the evening or in the morning," he said. In Albania, firefighters assisted by four aircraft from Italy and Greece battled two wildfires at a national park in the north and near the southwestern village of Dukat. Last month, large parts of Western Europe sweltered in another severe heatwave that left many dead and triggered forest fires and health alerts across the region. In Italy, where last month's heatwave was blamed for several blackouts including in Florence and Milan, the high temperatures drove electricity consumption in June up 7.4% year-on-year, national power grid operator Terna said on Tuesday. Around the world, 2024 was the warmest year on record, with temperatures exceeding 1.5 degree Celsius above the pre-industrial era for the first time. Research published last week showed that the soil surface temperature around Athens rose in some places by as much as 10 degrees Celsius since July 2024 after fires destroyed vegetation. https://www.reuters.com/sustainability/climate-energy/labourers-barred-work-tourists-kept-ruins-heatwave-sears-greece-balkans-2025-07-22/
