Group 1 - The article discusses the current state of the U.S. stock market, highlighting a dual easing policy of fiscal and monetary measures expected next year, alongside a generally optimistic outlook for the market despite facing challenges in the second half of the year [1][10] - The earnings season has shown that many companies, despite reporting good results, have seen their stock prices remain stagnant or decline due to high market valuations and the search for flaws in earnings reports [2][6] - The advertising industry reflects a stable macroeconomic environment, with U.S. retail sales showing signs of recovery after a period of weakness [4][10] Group 2 - The article emphasizes that the main factors influencing the stock market's direction are interest rate cut expectations and the pace of debt issuance, which could absorb liquidity from the market [10][23] - There is a significant focus on the Federal Reserve's upcoming meetings and the potential impact of political pressure on Chairman Powell regarding interest rate decisions [12][14] - The article warns that the market's expectations for interest rate cuts may be overly optimistic, particularly regarding the potential for inflation and the implications for asset values [15][17] Group 3 - The article outlines the expected fiscal deficit for the U.S. government, estimating a deficit of $1.9 trillion for the fiscal year, with significant debt issuance anticipated in the coming months [19][21] - The current excess liquidity in the market is limited, and the upcoming debt issuance could lead to a significant withdrawal of funds from the market, increasing the risk of a stock market correction [21][23] - The article concludes that despite the challenges, the outlook for U.S. stocks remains positive in the long term, particularly in light of the anticipated inflationary environment and the potential for asset appreciation [23][30]

Core Insights - Levelpath is revolutionizing the $7.3 billion procurement software market by making procurement as easy as ordering food on a mobile app [1] - The company recently completed a $55 million Series B funding round, aiming to quadruple its revenue post-funding [2] Company Strategy - Levelpath's strategy focuses on enhancing the procurement interaction experience rather than replacing existing platforms like Coupa or SAP Ariba [2] - The company plans to start with indirect procurement, providing ready-made templates and a mobile platform for quick value realization, before expanding to more complex direct procurement [2] User Experience - Levelpath emphasizes the importance of design and user satisfaction, aiming to provide a consumer-like experience in the B2B sector [3] - The platform is designed to be mobile-first and user-friendly, allowing employees to easily participate in the procurement process [6][10] Technology and Features - Levelpath's AI engine, Hyperbridge, transforms procurement interactions and decision-making by managing supplier data and automating processes [8][10] - The platform integrates with existing ERP systems, providing a comprehensive view of procurement activities and enabling real-time data access [10][11] Business Model and Market Validation - Levelpath operates on a subscription-based model, ensuring quick ROI for clients through value validation with benchmark customers [15] - Successful pilot projects have demonstrated significant cost savings and efficiency improvements for clients, such as a 200% ROI within six weeks for Treehouse Foods [16] Industry Recognition and Future Plans - Levelpath has gained recognition across various industries, including biotech and e-commerce, and has been included in Gartner's 2024 maturity curve and IVP AI 55 list [16] - The company plans to invest in AI research and mobile expansion, with future developments including an "AI Front Door" chat interface and enhanced ERP integration [16]

AI and Product Strategy - SAP's product strategy focuses on an AI-First and Suite-First approach, integrating applications, data, and AI to enhance business processes and drive growth[7] - In the first half of 2025, SAP launched 14 AI agents and over 100 pre-built data products for the SAP Business Data Cloud, with expectations to reach 40 AI agents and double the data products by the end of 2025[9] - SAP's innovation efforts include the SAP Business Data Cloud, which accelerates data readiness for AI and simplifies enterprise intelligence deployment at scale[30] - SAP's commitment to AI-powered business outcomes was reinforced with the launch of new generative AI features at Sapphire 2025, highlighting its focus on connecting data, intelligence, and outcomes[31] - SAP's partnerships with Accenture, Perplexity, Palantir, and Alibaba Group aim to enhance AI capabilities, cloud transformation, and connected intelligence across enterprises[15] Financial Performance - Total revenue for the first half of 2025 increased by 10% to €18,040 million compared to €16,329 million in the first half of 2024[39] - Cloud revenue grew by 25% to €10,124 million, driven by strong performance in the Cloud ERP Suite, which saw a 32% increase[39][48] - Operating profit surged to €4,789 million, an increase of over 100% from €434 million in the first half of 2024[43] - Profit after tax rose to €3,545 million, compared to €94 million in the first half of 2024, marking a significant increase[44] - Basic earnings per share increased to €2.98, up from €0.05 in the first half of 2024[45] - Free cash flow increased by 51% to €5,939 million, with a free cash flow margin of 33%[55] - The effective tax rate (IFRS) improved to 28.7%, down from 76.9% in the first half of 2024[46] - Segment profit for Applications, Technology & Support increased by 30% to €6,456 million, driven by cloud revenue growth[51] Economic and Market Conditions - The global economic activity showed moderate decline in the first half of 2025, influenced by trade conflicts and increased tariffs, impacting domestic consumption and export competitiveness[24] - SAP's portfolio strategy is designed to support business resilience and agility amid macroeconomic challenges, including inflationary pressures and trade imbalances[29] Cash Flow and Liquidity - As of June 30, 2025, SAP reported net liquidity of €2,297 million, an increase of 60% from €1,695 million on December 31, 2024[59] - The company anticipates free cash flow of approximately €8.0 billion for 2025, up from €4.22 billion in 2024, driven by lower restructuring and compliance payments[85] - The company reported net cash flows from operating activities of €6,357 million in Q1–Q2 2025, an increase of 44.9% from €4,388 million in Q1–Q2 2024[119] Employee and Corporate Culture - The Business Health Culture Index (BHCI) was introduced to replace the Women in Executive Roles measure, capturing employee experience across key themes and promoting a healthy work environment[23] - The Employee Engagement Index improved to 78%, an increase of 2 percentage points from 76% in November 2024[109] - SAP's turnover rate was 8.2%, slightly up from 7.3% at the end of the first half of 2024[109] - SAP's total employee headcount as of June 30, 2025, was 108,929, an increase from 105,315 in June 2024[137] Future Projections - SAP's cloud revenue for 2025 is projected to be between €21.6 billion and €21.9 billion, representing a growth of 26% to 28% at constant currencies compared to €17.14 billion in 2024[77] - Total revenue growth is expected to accelerate through 2027, primarily due to growth in cloud revenue and the Cloud ERP Suite[82] Changes in Financial Measures - Changes in financial measures starting 2025 include the inclusion of proceeds from sales of intangible assets in free cash flow calculations, reflecting a more accurate evaluation of cash flow generated by operating activities[20] - The company expects an effective tax rate (non-IFRS) of approximately 32% for 2025, consistent with 2024[82] Shareholder Returns - The company paid dividends of €2,743 million in Q1–Q2 2025, compared to €2,565 million in Q1–Q2 2024, an increase of 7%[119] - The company repurchased 24,743,442 shares at an average price of €185.51, totaling approximately €4.6 billion under the share repurchase program as of June 30, 2025[171]

Group 1: Company Ratings and Performance - Citic Securities maintains a buy rating for Airbnb (ABNB.O), highlighting its leading position in the global short-term rental market with nearly half market share, benefiting from inflation easing and rising travel demand [1] - CMB Securities maintains a buy rating for Alphabet (GOOG.O) with a target price of $221.0, reporting Q2 2025 revenue of $9.64 billion (+14% YoY) and net income of $2.82 billion (+19% YoY), driven by strong performance in Google Search and Google Cloud [2] - Haitong International maintains a buy rating for Bronco Billy o Ltd (BRBYF.F), noting a narrowing decline in same-store sales and a three-year high sell-through rate for the Autumn 25 series [3] - Haitong International maintains a neutral rating for Enphase Energy Inc (ENPH.O), reporting Q2 revenue of $363 million, but Q3 guidance is below market consensus [4] - Huachuang Securities gives a buy rating to NXP Semiconductors (NXPI.O), reporting Q2 revenue and profit exceeding expectations, with a stable automotive business and inventory levels normalizing [5] - Haitong International gives a buy rating to Baker Hughes (BKR.A), reporting Q2 EBITDA of $1.212 billion, exceeding expectations, with strong performance in both business segments [6] - Huatai Securities maintains a buy rating for Bilibili (BILI.O) with a target price of $37.1, reporting Q2 revenue and adjusted net profit exceeding expectations [7] - Citic Securities maintains an overweight rating for Texas Instruments (TXN.O) with a target price of $217, reporting Q2 performance exceeding expectations driven by industrial market demand [8][9] - CMB Securities maintains a buy rating for Coca-Cola (KO.N) with a target price of $75, reporting Q2 revenue of $12.62 billion, exceeding market expectations [15] Group 2: Strategic Developments and Future Outlook - CMB Securities raises the target price for Sands China (LVS.N) to $61.20, citing a 24% YoY increase in EBITDA driven by improved gaming win rates in Singapore [14] - CMB Securities maintains a buy rating for General Motors (GM.N) with a target price of $60, indicating a low current valuation and strong long-term fundamentals despite short-term pressures [17] - Haitong International gives a buy rating to New Oxygen (SY.O) with a target price of $10.1, highlighting the high growth potential in the light medical beauty chain industry [18] - CMB Securities maintains a buy rating for Freeport-McMoRan (FCX.N) with a target price of $51.60, reporting Q2 performance exceeding expectations due to cost optimization and copper price premiums [19]

Core Viewpoint - LVMH, once considered a luxury goods powerhouse, is experiencing a significant downturn in its fashion and leather goods segment, signaling a broader adjustment in the luxury market as consumer sentiment cools and traditional growth drivers falter [1][2][3]. Group 1: Sales Performance - In Q2 2025, LVMH's fashion and leather goods sales dropped by 9% on an organic basis, marking the largest quarterly decline since the pandemic [2]. - Sales in Japan plummeted by 28%, reflecting a sharp decline in tourist spending, while local consumer fatigue is also evident in the U.S. market [3]. - The traditional growth formula of "tourist-driven + high-net-worth consumption" is failing, impacting both short-term revenue and brand pricing power [3]. Group 2: Brand Innovations and Challenges - Despite maintaining high brand visibility, LVMH's overall revenue growth remains weak due to declining tourist demand in key markets like Japan and Korea [3][4]. - Louis Vuitton launched a new flagship store and a beauty line, but overall revenue growth is still sluggish [3]. - Christian Dior and Celine are undergoing significant creative changes, yet market responses have been muted, with actual sales remaining stable [4][5]. Group 3: Financial Performance - LVMH reported a total revenue of €39.8 billion, a 4% year-on-year decline, with operating profit down 15% to €9 billion and net profit down 22% to €5.698 billion [7]. - The gross margin has decreased from 38% to below 35%, indicating a shift in the brand's profitability amid external pressures [7]. - Currency fluctuations have negatively impacted profits by €225 million, particularly due to the weakening of the U.S. dollar and South Korean won [7]. Group 4: Strategic Shifts - Sephora is one of the few segments showing profit growth, expanding its store presence and enhancing its exclusive brand offerings [8]. - New brands like Fenty Beauty and Maison Francis Kurkdjian continue to show growth, while Parfums Dior maintains its leadership in the fragrance market [8][9]. - LVMH is diversifying its growth avenues beyond luxury goods, including high-end hotels and media ventures, indicating a structural shift towards a "cultural luxury ecosystem" [9][10]. Group 5: Market Sentiment and Future Outlook - LVMH's stock price has dropped nearly 30% in 2025, with market capitalization being surpassed by competitors like Hermès and SAP [11]. - Analysts are tightening their earnings forecasts for the upcoming quarters, reflecting a new reality for LVMH in the absence of pandemic recovery benefits and Asian tourist influx [11]. - The luxury industry is entering a "post-incremental era," where growth is no longer the sole focus, and structural adjustments and cultural value become key themes [11].

Core Insights - SAP SE reported a strong second-quarter 2025 performance with non-IFRS earnings per share of €1.50 ($1.70), a 37% increase year-over-year, although it fell short of the Zacks Consensus Estimate of $1.63 [1] - Total revenues on a non-IFRS basis reached €9.03 billion ($10.24 billion), marking a 9% year-over-year increase, but also below the Zacks Consensus Estimate of $10.37 billion [1] - The company's cloud revenue surged by 24% year-over-year, driven by robust growth in Cloud ERP Suite revenues [5][8] Financial Performance - Non-IFRS operating profit rose 32% to €2.57 billion, with a margin increase to 28.5%, attributed to improved operational efficiency and cost controls [13] - Non-IFRS gross profit increased 10% to €6.64 billion, with cloud gross profit rising 27% to €3.86 billion [12] - Free cash flow increased significantly by 83% to €2.36 billion during the quarter, indicating strong operational strength [14] Cloud Business Growth - The current cloud backlog surged 22% to €18.1 billion, a key indicator of market success [4] - Cloud revenues reached €5.13 billion, with a notable 30% growth in Cloud ERP Suite revenues [5] - The cloud and software segment accounted for 88.2% of total revenues, generating €7.97 billion, an 11% year-over-year increase [4] Strategic Initiatives - SAP's investment in AI and data platforms is yielding positive results, with the AI assistant Joule enhancing process efficiency and user productivity [2] - The "RISE with SAP" program continues to attract global organizations, indicating strong client adoption [7] - The company initiated a transformation program in January 2024, concluding in Q1 2025, aimed at enhancing operational scalability [16] Customer Engagement - Significant customer wins were reported, including partnerships with major organizations such as Accenture, BMW Group, and L'Oréal [10] - The cloud revenue growth was particularly strong in the APJ and EMEA regions, with standout performances in countries like Brazil, France, and India [11] Future Outlook - SAP reaffirmed its 2025 financial outlook, anticipating cloud revenues between €21.6-€21.9 billion, representing a year-over-year increase of 26-28% [17] - Cloud and software revenues are expected to be in the range of €33.1-€33.6 billion, with a projected increase of 11-13% year-over-year [18] - Free cash flow is estimated to reach around €8 billion, a significant rise from €4.22 billion in 2024 [19]

QQQs +13bps as Trump said last night US and Japan finally reached a deal which would impose 15% tariffs (vs previous 25% threat) on imports including autos, while Japan will invest $550B into the US and open their market to certain goods. Nikkei +4% and in Asia and Europe, autos rallied with Toyota +15%. Bessent also said yesterday US and China will hold 3rd round of trade talks next week. QQQ 指数上涨13个基点,因特朗普昨夜宣布美日最终达成 将对包括汽车在内的进口商品征收 15%关税（此前威 协议, 胁税率为 25%），同时日本将向美国投资 5500 亿美元并开 放部分商品市场。日经指数大涨 4%，亚欧汽车板块集体走 ...

Hello and welcome to Morning Brief Market Sunrise. I'm Raman Karamali live from Yahoo Finances studios in London. It's Wednesday 23rd July.Coming up on the show, the US and Japan agree a trade deal. The president labels it massive as the tariff is set at 15%. But the Detroit 3, that's Ford, General Motors, and Stalantis, aren't too thrilled.I'll explain why. And earning season continues. We'll have the latest from the likes of AT&T, Hasbro, and Hilton.So, grab your coffee and let's own the morning. Well, we ...

Group 1: Texas Instruments - Texas Instruments reported quarterly earnings of $1.41 per share, exceeding the analyst consensus estimate of $1.33 per share [1] - The company reported quarterly sales of $4.448 billion, surpassing the analyst consensus estimate of $4.329 billion [1] - Shares of Texas Instruments fell sharply by 12% to $189.15 in pre-market trading following the earnings report [2] Group 2: Other Companies - Telix Pharmaceuticals Limited shares fell 7.9% to $15.00 in pre-market trading after issuing an update on its commercial and operational performance [4] - Enphase Energy, Inc. shares decreased by 7.5% to $39.32 despite posting upbeat second-quarter earnings, as the company anticipates third-quarter revenue of $330 million to $370 million, below estimates of $363.25 million [4] - ON Semiconductor Corporation shares fell 6.3% to $58.50 in pre-market trading after a previous gain of 3% on Tuesday [4] - Microchip Technology Incorporated shares dipped 6.2% to $70.60 in pre-market trading [4] - Analog Devices, Inc. shares fell 5% to $223.78 in pre-market trading [4] - NXP Semiconductors N.V. shares declined 4.8% to $216.82 following the release of quarterly results [4] - Canadian National Railway Company shares fell 4.6% to $95.71 after downbeat quarterly results [4] - SAP SE shares decreased by 4.3% to $292.92 following second-quarter results [4]

Investment Rating - The report maintains a positive outlook for SAP, expecting cloud revenue growth of 26-28% year-on-year for 2025, with non-IFRS operating profit guidance of €10.3-10.6 billion [5][17]. Core Insights - SAP's Q2 2025 results showed total revenue of €9.03 billion, a 9% year-on-year increase, with cloud revenue reaching €5.13 billion, up 24% year-on-year, although slightly below market expectations [2][12]. - Non-IFRS operating profit was €2.57 billion, a significant 32% increase year-on-year, exceeding analyst expectations [2][13]. - Free cash flow was particularly strong at €2.36 billion, representing an 83% year-on-year increase, far surpassing market expectations [2][13]. Summary by Sections Financial Performance - Total revenue for Q2 2025 was €9.03 billion, up 9% year-on-year (12% at constant currency), slightly below the expected €9.07 billion [2][12]. - Cloud revenue reached €5.13 billion, a 24% year-on-year increase (28% at constant currency), also below the expected €5.17 billion [2][12]. - Non-IFRS operating profit was €2.57 billion, up 32% year-on-year (35% at constant currency), exceeding the expected €2.43 billion [2][13]. - Non-IFRS earnings per share were €1.50, a 37% increase year-on-year [2][13]. - Free cash flow reached €2.36 billion, an 83% increase year-on-year, significantly above the expected €1.43 billion [2][13]. Business Drivers - The strong performance of the cloud ERP suite contributed to revenue growth, with a 34% increase to €4.42 billion, maintaining over 30% growth for 14 consecutive quarters [2][13]. - Optimization of share-based compensation expenses contributed to profit growth, with a reduction of €331 million year-on-year [2][13]. - The use of Business AI products improved operational efficiency, with productivity on the digital sales platform increasing by 50% [3][14]. Market Expansion and Innovation - SAP released 14 AI agents in Q2 2025, with plans to reach 40 by year-end, enhancing various business scenarios [3][14]. - The company maintained a high closing rate among key customers in the public sector and defense, with significant new customer additions in digital supply chain and human capital management solutions [4][15]. - SAP is expanding its presence in the Chinese market through a strategic partnership with Alibaba, which will deploy SAP Business Suite and explore AI integration [4][16]. Future Outlook - SAP maintains its full-year 2025 guidance, expecting cloud revenue of €21.6-21.9 billion and non-IFRS operating profit of €10.3-10.6 billion [5][17]. - The company remains cautiously optimistic about the second half of the year, driven by advancements in Business AI and strategic partnerships [5][17].