Market Overview - The US-China trade truce is expected to create more stability in the relationship, although it is characterized as a truce rather than a breakthrough [9][11][12] - The Federal Reserve cut rates by 0.25 percentage points, with indications that further cuts are not guaranteed [2][4] - The Dow Jones Industrial Average gained over 200 points, while the S&P 500 and Nasdaq experienced slight declines [3][4] Big Tech Earnings - Meta's shares fell by 11% after announcing increased capital expenditures for the upcoming year, exceeding the $72 billion planned for this year [6][32] - Microsoft also reported a 2.2% decline in shares despite good underlying metrics, as it ramped up spending to meet demand [7][32] - In contrast, Alphabet's shares rose by 5% due to a 15% increase in search revenue and growth in its Gemini AI platform [8][32] US-China Trade Negotiations - President Trump expressed satisfaction with the progress made in trade negotiations, focusing on issues like fentanyl tariffs and soybean purchases [9][10] - The meeting between Trump and Xi was brief, lasting only about 90 minutes, and did not address significant topics like Taiwan or Russia [13][14] - The long-term trajectory still points towards decoupling between the US and China, with both nations leveraging their positions [15][19] Corporate Earnings Insights - Meta's Q4 guidance was perceived as soft, leading to investor skepticism about its future AI investments [36][39] - Google's AI mode has seen rapid adoption, with 75 million daily active users, contributing positively to its search business [41][44] - Amazon's upcoming earnings report is anticipated to focus on AWS growth, which needs to exceed 19% to regain investor confidence [50][52] Cardinal Health Performance - Cardinal Health reported a 22% increase in quarterly revenue, driven by strong demand across all operating segments [105][106] - The company is focusing on specialty pharmaceuticals through strategic acquisitions, contributing significantly to profit growth [107][110] - The firm remains optimistic about future growth despite potential regulatory changes affecting the healthcare landscape [111][115]

Core Viewpoint - Stellantis is conducting a call to discuss its third quarter 2025 shipments and revenues, indicating a focus on financial performance and operational metrics [1][2]. Group 1: Company Overview - The call is hosted by key executives including the Chief Executive Officer Antonio Filosa and Chief Financial Officer Joao Laranjo, highlighting the leadership's involvement in financial disclosures [3][4]. - Presentation materials and press releases related to the call were made available on the Stellantis Group website, ensuring transparency and accessibility of information for investors [2]. Group 2: Financial Performance - The discussion will cover shipments and revenues for the third quarter of 2025, which are critical indicators of the company's operational success and market performance [1][2].

Core Insights - Stellantis has established a "war room" to tackle potential chip shortages due to issues at Dutch group Nexperia, which are linked to the U.S.-China trade war [1] Group 1: Company Actions - The creation of a "war room" indicates proactive measures taken by Stellantis to mitigate supply chain disruptions [1] Group 2: Industry Context - The chip shortages are a significant concern for the automotive industry, exacerbated by geopolitical tensions such as the U.S.-China trade war [1]

Group 1 - Dow Jones futures down 0.46%, S&P 500 futures down 0.51%, and Nasdaq 100 futures down 0.67% [1] - UK FTSE 100 down 0.61%, France's CAC40 down 0.97%, and Germany's DAX30 down 0.15% [1] - Google shares up over 7% pre-market after Q3 revenue of $102.35 billion, exceeding analyst expectations of $99.85 billion, with net profit up 41% year-on-year to $28.5 billion [1] - Stellantis shares down over 7% pre-market despite Q3 net revenue of €37.2 billion, a 13% year-on-year increase, but warned of potential costs affecting operating profit due to strategic adjustments [1] - Meta shares down over 10% pre-market after Q3 revenue of $51.24 billion, a 26% year-on-year increase, but net profit fell 83% to $2.71 billion [2] - eBay shares down over 10% after the company projected holiday quarter profits below expectations [3] - Microsoft's Q1 revenue of $77.67 billion, an 18% year-on-year increase, exceeded estimates of $75.55 billion, with net profit up 12% to $27.747 billion [3] - OpenAI preparing for an IPO that could value the company at $1 trillion, potentially the largest IPO in history [3] - Novo Nordisk made a cash offer of $56.50 per share for US biopharmaceutical company Metsera, corresponding to an enterprise value of approximately $6 billion [3]

Financial Data and Key Metrics Changes - Consolidated shipments and net revenue both increased by 13% year-over-year, with consolidated shipments reaching 1.3 million units, an increase of 152,000 units [19][5] - Net revenues amounted to €37.2 billion, also reflecting a 13% increase compared to the third quarter of 2024 [19][20] - North America saw a 35% improvement in shipments, primarily due to normalized inventory dynamics following previous dealer inventory reductions [19][20] Business Line Data and Key Metrics Changes - North American sales rose by 6% year-over-year, driven by strong performances from Jeep products such as Wrangler, Gladiator, and Wagoneer [9][19] - In Europe, market share decreased by 70 basis points due to softer volumes in key markets, although new product launches are expected to improve performance [10][19] - The company launched two major products in the third quarter, with plans for additional launches in both North America and Europe [6][7] Market Data and Key Metrics Changes - The U.S. market share is showing signs of improvement, while Europe is facing challenges with declining volumes in the French and Italian markets [5][10] - South America experienced a 5% revenue decline, attributed to tough comparisons with the previous year [23] Company Strategy and Development Direction - The company announced a $13 billion investment in U.S. manufacturing, aimed at increasing production capacity by 50% and introducing five all-new vehicles [15][16] - The strategy focuses on correcting past product gaps and enhancing market competitiveness, particularly in the U.S. mid-size SUV segment [33][34] - The company is also engaging with European policymakers to advocate for necessary reforms in the automotive industry [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return to top-line growth and confirmed guidance for continued sequential improvement in the second half of 2025 [24][27] - The management acknowledged challenges in Europe but emphasized ongoing efforts to regain market share and improve profitability [10][11] Other Important Information - The company is refining its warranty cost estimation methodology, which may lead to one-time charges but is not expected to materially impact future profitability [25][26] - The company is actively monitoring supply chain issues, particularly related to chip shortages, to mitigate potential disruptions [80] Q&A Session Summary Question: Can you discuss production capacity and pricing power improvements? - Management highlighted a return to top-line growth and favorable pricing dynamics, with a focus on correcting past strategic decisions to enhance product offerings [32][33] Question: What are the key levers for improving free cash generation? - The primary driver for free cash flow improvement is expected to be volume growth in North America [35] Question: Can you clarify free cash flow dynamics and expectations for 2026? - Management confirmed that the anticipated cash flow dynamics are correct, with North America being the main region for volume improvement [39] Question: What is the outlook for European margins? - Management confirmed intentions to improve margins in Europe through strategic product launches and market share recovery [71][74] Question: How will the $13 billion U.S. investment impact restructuring needs? - The investment is aimed at leveraging industrial capacity without planned shutdowns, focusing on growth in the U.S. market [77] Question: What are the implications of new U.S. regulations on the company? - Management welcomed the new regulations as opportunities for growth and emphasized a strategy focused on product diversity and customer choice [85]

Financial Data and Key Metrics Changes - In Q3 2025, consolidated shipments increased by 13% year-over-year, totaling 1.3 million units, marking a return to growth after seven quarters of decline [19][5] - Net revenues reached €37.2 billion, also up 13% compared to Q3 2024, driven by improvements in North America, Europe, and the Middle East and Africa [19][20] - The revenue increase was primarily due to a 13% volume increase, with pricing up 2% year-over-year [20][21] - The company confirmed its guidance for the second half of 2025, expecting continued growth and improved industrial efficiency [24][27] Business Line Data and Key Metrics Changes - North America saw a 35% improvement in shipments, significantly contributing to the overall growth [19] - The Jeep Wrangler and Ram light-duty nameplates were key drivers of volume improvement in North America [22] - In Europe, the company faced challenges with softer volumes, leading to a 70 basis point decline in market share [10][19] - The company plans to launch several new products, including the Fiat 500 Hybrid and Jeep Compass, to regain market share in Europe [10][68] Market Data and Key Metrics Changes - U.S. sales rose by 6% year-over-year, with strong performance from Jeep products [9] - The Middle East and Africa region experienced a 21% increase in shipments, primarily due to higher volumes in Algeria [23] - South America saw a 5% decline in revenue, attributed to tough comparisons with the previous year [23] Company Strategy and Development Direction - The company announced a $13 billion investment in U.S. manufacturing, aimed at increasing production capacity by 50% and introducing five new vehicles [15][16] - The strategy focuses on correcting past product gaps and enhancing market share in key segments, particularly in North America [33][34] - The company is also engaging with European policymakers to advocate for necessary reforms in the automotive industry [11][68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return to top-line growth and the positive impact of new product launches [27][32] - The company is focused on improving pricing power and production capacity utilization as part of its growth strategy [30][33] - Management highlighted the importance of maintaining strong inventory discipline and managing working capital effectively [22][71] Other Important Information - The company is experiencing ongoing pricing headwinds in Europe but positive pricing dynamics in South America and the Middle East and Africa [22] - A strategic review is underway, which may lead to further charges in the second half of 2025 [25][80] - The company is monitoring the global chip shortage closely, implementing measures to mitigate its impact on production [73] Q&A Session Summary Question: Can you discuss the improvement of production capacity and pricing power? - Management noted a return to top-line growth and favorable pricing dynamics, emphasizing the importance of addressing past product gaps [30][32] Question: What are the key levers to improve free cash generation in the second half? - The primary driver for free cash flow improvement is expected to be volume growth in North America [31][35] Question: Can you clarify the expected free cash flow dynamics for the second half? - Management confirmed that the dynamics discussed are correct, with North America being the main region for volume improvement [37][39] Question: What is the outlook for U.S. tariffs and their impact on future profitability? - The new strategy aims to reduce exposure to tariffs while focusing on growth in the U.S. market [39][40] Question: What are the expectations for European margins and working capital? - Management aims to improve margins in Europe through product actions and anticipates slight increases in working capital due to higher volumes [66][71] Question: Can you provide insights on the warranty costs and provisions? - The review of warranty methodology may lead to non-cash provisions, with limited cash impact expected in 2025 [50][80] Question: What are the trends for October and Q4 volumes, especially in the U.S.? - Management expects improved volumes in North America, driven by new product launches hitting dealer lots [62][63]

Market Overview - US stock index futures are all down, with Dow futures down 0.32%, S&P 500 futures down 0.35%, and Nasdaq futures down 0.55% [1] - European indices also show declines, with Germany's DAX down 0.18%, UK's FTSE 100 down 0.67%, France's CAC40 down 1.04%, and the Euro Stoxx 50 down 0.61% [2][3] - WTI crude oil prices fell by 0.86% to $59.96 per barrel, while Brent crude also dropped by 0.86% to $63.77 per barrel [4] Economic and Policy Updates - The meeting between Chinese President and US President Trump emphasized that economic and trade relations should be a stabilizing force rather than a point of conflict [5] - Federal Reserve Chairman Jerome Powell's comments on interest rate cuts have led to skepticism in the market, with the 10-year US Treasury yield holding steady at 4.08% after a previous spike [5] - Powell also stated that the current AI investment wave is fundamentally different from the internet bubble, highlighting that AI companies are rooted in profitability and real economic activity [6] Company Earnings and Performance - Roblox reported a record Q3 with 151.5 million daily active users, a 70% year-over-year increase, and bookings of $1.92 billion, exceeding analyst expectations [7] - Microsoft exceeded Q1 expectations with revenues of $77.7 billion, driven by a significant increase in capital expenditures related to AI [7] - Alphabet's Q3 revenue was $102.35 billion, up 16% year-over-year, with strong performance in its cloud division [8] - Meta's Q3 net profit fell 83% due to a one-time tax expense, despite a 26% increase in revenue to $51.24 billion [9] - Starbucks reported Q4 revenue of $9.57 billion, a 5.5% increase, with same-store sales returning to positive growth [10] - Shell's Q3 profit exceeded expectations, supported by strong oil and gas trading performance despite weak energy prices [11] - TotalEnergies' Q3 adjusted net profit fell 2.3% to $3.98 billion, meeting analyst expectations [12] - Stellantis reported a 13% increase in Q3 revenue to €37.2 billion, but issued a cost warning that affected stock performance [13] - Samsung Electronics' semiconductor division saw a 79% increase in Q3 operating profit, driven by AI demand [14] Future Outlook - OpenAI is reportedly preparing for an IPO that could value the company at $1 trillion, with plans to raise at least $60 billion [5] - Eli Lilly raised its full-year guidance due to strong sales from its weight loss and diabetes drugs, with Q3 sales reaching $17.6 billion [17] - Tesla plans to showcase its Cybercab model at the Shanghai International Import Expo in November [19]

Financial Data and Key Metrics Changes - In Q3 2025, Stellantis reported a 13% increase in consolidated shipments and net revenues compared to the prior year, with consolidated shipments reaching 1.3 million units, up 152,000 units [4][18] - Net revenues amounted to €37.2 billion, also reflecting a 13% year-over-year increase, driven by improvements in North America, Europe, and the Middle East and Africa [18][19] - The company confirmed its financial guidance for the second half of 2025, expecting continued sequential improvement [4][22] Business Line Data and Key Metrics Changes - North America saw a 35% improvement in shipments, primarily due to normalized inventory dynamics following previous dealer inventory reductions [18][19] - The Jeep brand experienced a sales growth of 11% in Q3, nearly double the U.S. market's growth of 6% [15] - In Europe, the company faced a 70 basis point decline in market share due to softer volumes in key markets, but plans to introduce new products to regain share [8][21] Market Data and Key Metrics Changes - U.S. sales rose 6% year-over-year, with strong performances from Jeep products like Wrangler and Gladiator [7][18] - The Middle East and Africa region reported a 21% increase in shipments year-to-date, driven by higher volumes in Algeria [21] - South America experienced a 5% decline in revenue, attributed to tough comparisons with the previous year [21] Company Strategy and Development Direction - Stellantis announced a $13 billion investment in U.S. manufacturing, aimed at increasing production capacity by 50% and introducing five all-new vehicles [3][13] - The company is focusing on correcting past strategic decisions by reintroducing key products and enhancing its product lineup to meet customer demand [40][57] - The strategy includes a strong emphasis on product launches, with plans for 10 major new products in 2025, including the Jeep Cherokee and Dodge Charger [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to top-line growth after seven quarters of declines, highlighting improved pricing power and competitive positioning [39][40] - The company is actively engaging with European policymakers to advocate for necessary reforms in the auto industry [9] - Management anticipates a stable pricing environment in the U.S. and is focused on achieving operational efficiencies to offset potential cost increases [77] Other Important Information - Stellantis is working on a strategic review that may lead to project cancellations and adjustments in product offerings, which could have limited cash impact in 2025 [96] - The company is monitoring the global chip supply situation closely, implementing daily management strategies to mitigate disruptions [90] Q&A Session Summary Question: Can you discuss the improvement of production capacity and pricing power? - Management highlighted a return to top-line growth and favorable pricing dynamics, correcting past strategic decisions to fill product gaps [39][40] Question: What are the key levers for improving free cash generation? - The primary driver for free cash flow improvement is expected to be volume growth in North America, with ongoing efforts to enhance savings and efficiencies [42] Question: Can you clarify the dynamics of free cash flow and working capital? - Management confirmed that the anticipated improvement in free cash flow is linked to volume growth, particularly in North America, and acknowledged the importance of managing working capital effectively [49][88] Question: What is the outlook for margins in Europe? - The company aims to improve margins in Europe through strategic product actions and regulatory engagement, despite facing challenges in the market [84][87] Question: How will the $13 billion investment impact cost structure and competitiveness? - The investment is expected to enhance production capacity and efficiency, with management confident in maintaining a stable pricing scenario [77][87]

Group 1 - US stock index futures experienced slight declines, with Nasdaq futures down 0.35%, S&P 500 futures down 0.24%, and Dow futures down 0.33% [1] - Major European indices collectively fell, with Germany's DAX down 0.15%, UK's FTSE 100 down 0.61%, France's CAC down 0.91%, and the Euro Stoxx 50 down 0.52% [1] - OpenAI is reportedly planning to apply for an IPO as early as 2026, with a potential valuation of up to $1 trillion [1] - Alphabet, Google's parent company, reported record Q3 revenue of $102.3 billion, with a 34% year-over-year increase in cloud computing revenue [1] - Microsoft reported Q1 FY2026 revenue of $77.67 billion and earnings per share of $3.72, both exceeding expectations; however, Azure and other cloud revenue fell short of buyer expectations [1] - Meta's Q3 revenue was $51.2 billion, with net profit declining to $2.7 billion due to one-time tax expenses; the company raised its full-year capital expenditure guidance [1] Group 2 - Eli Lilly reported a 54% year-over-year revenue increase to $17.6 billion in Q3, raising its full-year revenue forecast [2] - Merck's Q3 sales reached $17.28 billion, with adjusted earnings per share of $2.58, both exceeding expectations [2] - Stellantis reported a 13% year-over-year revenue increase to €37.2 billion in Q3, noting that US tariffs have caused approximately €1 billion in losses this year [2] - Shell's Q3 adjusted profit was $5.43 billion, surpassing expectations; the company announced a $3.5 billion stock buyback plan [2] - ServiceNow reported Q3 revenue of $3.41 billion, with adjusted earnings per share of $4.82, both exceeding expectations; the company plans a 1-for-5 stock split [2] - eBay's Q3 sales grew 9% year-over-year to $2.82 billion, with adjusted earnings per share of $1.36, exceeding expectations [2] - Carvana, a US used car retailer, reported a 54.5% year-over-year revenue increase to $5.65 billion in Q3, with earnings per share of $1.03, which fell short of analyst expectations [2] - KLA Corporation, a semiconductor testing equipment manufacturer, reported a 13% year-over-year revenue increase to $3.21 billion in Q1 FY2026, with adjusted earnings per share of $8.81, exceeding expectations [2] - Novo Nordisk is reportedly increasing its bid for Metsera, while Pfizer's $4.9 billion acquisition may face uncertainties [2] Group 3 - S&P has downgraded Strategy's credit rating to junk status at B-, citing significant "currency mismatch" risks [3]

Q3 2025 Performance - Shipments reached 13 million units, a 13% year-over-year increase[10] - Net revenues totaled €372 billion, also up 13% year-over-year, driven by growth in North America[10] - North America saw a 35% rebound in shipments compared to the prior year[10] Market Share - North America market share improved sequentially by +40bps compared to Q2 2025[10] - U S market share increased by +50bps compared to Q2 2025, reaching 78%[30] - EU30 market share decreased by -70bps year-over-year[32] U S Investment and Production - A $13 billion investment in U S operations was announced[12] - This investment aims to increase U S production by 50%[12] - The investment is expected to add over 5,000 jobs in the U S[12] H2 2025 Outlook - The company affirmed its H2 2025 outlook, expecting improved net revenues and industrial free cash flow compared to H1 2025[11] - The company anticipates incurring approximately €10 billion in net tariff expenses for 2025[79]