Revenue Growth & Expectations - Trillion-dollar companies, Microsoft and Meta, are posting over 20% revenue growth quarter-on-quarter, exceeding expectations [1] - Microsoft is experiencing 18% growth [1] - Meta is signaling a potential 25% growth for the next quarter [1] Capital Expenditure (CapEx) & Investment - Microsoft's ASEAN number is $75 billion, revealing CapEx spending for generative AI [2] - Companies are committing to higher CapEx spending, indicating firepower for further investment in AI [3] - Meta's generative AI is improving ad performance, leading to a 9% increase in ad pricing [3] - Companies are investing heavily in talent, including $200 million pay packages, to scale AI [4] AI & Superintelligence - Companies are focusing on making AI more personable, aiming for a superintelligence helper for personal use [4] - Meta is articulating the implications of superintelligence lapse for their business [3] - The vindication in CapEx comes through increased app usage driven by AI advancements [5]

Market Performance & Expectations - Meta's user growth and ad revenue drive excitement, particularly regarding Instagram, social networks, digital ad monetization, and AR/VR potential in the next 12 months [2] - Microsoft's Azure is experiencing accelerated growth, moving from mid-30s to high-30s [7] - Amazon is expected to show acceleration with street estimates at 17% growth, supported by a 20% backlog [14] Capital Expenditure (CapEx) & Investment - Meta's CapEx guide is narrowing, but overall spending is expected to increase, signaling a green light for hyperscalers and mega-caps to continue investing in AI [4] - Google raised CapEx by 10%, and Meta increased its high point by another 2 billion [6] - Microsoft is expected to maintain high spending due to capacity constraints, with investors unconcerned due to strong revenue growth and margins [6][7] AI Development & Strategy - Meta is positioned on the "decentralized abundance" side of AI development, aiming to bring superintelligence to everyone, contrasting with a "centralized scarcity" approach [11] - Meta is considered the most efficient company in the Valley from an automation perspective, leading to significant revenue and profit per employee [2][13] - The enterprise adoption of AI is still in its infancy, indicating significant growth potential in the coming years [5] Competitive Landscape - Microsoft is gaining share on Amazon in the public cloud [17] - Meta is reportedly taking advertiser budget share from Google and Amazon [17]

Tariffs Impact & Offsetting Factors - Tariffs' negative impact is offset by the AI boom, tax offsets in the budget bill, and declining energy costs and rents [3] - Approximately 80% of tariff costs are absorbed by US corporations and consumers, with the remaining 20% by foreign suppliers [7] - The US is currently receiving 1% of GDP in tax revenues from tariffs [14] AI Mania & Capital Expenditure - AI is boosting economic activity and animal spirits, leading to a CapEx boom [3][11] - Hyperscalers' CapEx estimates have increased from $290 billion to over $350 billion [7] - Foreigners are investing in the US due to the AI boom, helping to fund the US deficit [13][17] US Economy & Deficit - The US economy's vulnerability lies in its budget deficit, currently at 65% of GDP [9][16] - The US relies on foreign savings to fund its deficit, making it more vulnerable than countries like Japan [13] - The US is able to offset the pain from tariffs because global markets are willing to fund its large budget deficit [10]

AI Infrastructure Investment - AI investment boom is still happening rapidly with no slowdown [2] - Google raised its CapEx from $75 billion to $85 billion for its cloud business [2] - Mark Zuckerberg plans to spend hundreds of billions of dollars in CapEx [4] - Demand for hyperscale infrastructure is accelerating [5] Market Dynamics and Consolidation - AI trade has not yet reached applications like Salesforce or Adobe [3] - Expectation of an M&A wave due to many companies claiming to be AI-first [6] - AI is consolidating power for many, not just a few, leading to capacity constraints [7][8] - Too many companies are chasing AI long term, necessitating cleanup and M&A [9] Company Performance and Outlook - Microsoft is on an acceleration path and capacity constrained [15] - Amazon's backlog grew by 20%, up from 14%, indicating future revenue growth [16] - Microsoft is guiding to an acceleration [16] - IBM's software business decelerated, and the stock's valuation was high [12] Economic Outlook - CEO upgraded the overall economy from cautiously optimistic to optimistic [13] - Optimism about consulting for 2026 [15] Key Metrics - Bookings, revenue growth, and CapEx are the key metrics to watch [17]

Financial Data and Key Metrics Changes - EBITDA for Q2 2025 was $130 million, up from $107 million in Q2 2024, reflecting a strong performance [7] - Net income increased to $91 million in Q2 2025 from $71 million in Q2 2024 [8] - Total CapEx for the quarter was $107 million, with $82 million allocated to the San Gabriel project [9] - Cash position at the end of the quarter was $589 million, with total debt of $860 million, resulting in a leverage ratio of 0.56 times [9] Business Line Data and Key Metrics Changes - Silver production decreased by 11% year-over-year to 3.6 million ounces, primarily due to lower output at Jumpac, Tambomayo, and Huican [8] - Copper production increased by 28% year-over-year, attributed to halted operations at El Brocal in 2024 [8] - Gold production fell to 27,345 ounces from 33,119 ounces in the same quarter last year, mainly due to decreased output at Tambomayo and Orcopampa [8] Market Data and Key Metrics Changes - The company initiated the sale of part of the Cerro Verde copper concentrate, selling approximately 20,000 metric tons by the end of the quarter, with a total of 40,000 metric tons expected for the full year 2025 [8] - Cerro Verde announced a new dividend distribution of $59 million, corresponding to Buenaventura's equity share, to be distributed in August [9] Company Strategy and Development Direction - The company is committed to stable and continuous production of flagship assets and is focused on optimizing throughput [15] - Continuous exploration efforts are emphasized to extend the life of mining assets [15] - The San Gabriel project is on track with 88% overall completion, with expectations to produce the first gold bar in Q4 2025, subject to timely permit approvals [13][16] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in obtaining necessary permits for the San Gabriel project, indicating no significant risks [19] - The company plans to maintain financial stability and has redeemed the remaining 2026 notes [16] - The ramp-up of production at San Gabriel is expected to take all of 2026, with stabilization anticipated thereafter [21] Other Important Information - The all-in sustaining costs for copper increased by 63% year-over-year, primarily due to lower byproduct credits [11] - The company received $49 million in dividends from Cerro Verde, which contributed to operating cash flow [12] Q&A Session Summary Question: Can you provide more details on the pending permits for San Gabriel? - Management indicated that they have invited authorities to visit the plant in September and do not foresee risks in obtaining the necessary permits [19] Question: What is the expected CapEx for the second half of 2025? - Total CapEx for San Gabriel is expected to remain between $720 million and $750 million, with approximately $130 million to $160 million disbursed in the second half of 2025 [20][22] Question: When do you expect to reach full production capacity at San Gabriel? - The ramp-up will take all of 2026, with expectations to stabilize production between 100,000 and 120,000 ounces [21] Question: How is Uchucchacua performing regarding silver grades and costs? - Management noted a decrease in silver grades due to a shift towards polymetallic stops, with expectations to stabilize in Q3 [32][35] Question: What is the strategy for El Brocal moving forward? - The company plans to prioritize mining blocks with higher gold and silver content while maintaining a target copper production of 1.45% [38] Question: Can you clarify the commercialization of Cerro Verde concentrate? - The company has sold 20,000 tons of copper concentrate in the first half and plans to sell another 20,000 tons in the second half, with margins expected around $1.2 million for each 10,000 tons [48][50] Question: What is the status of the Trepiche project? - The environmental impact study is on track for approval by the end of the year, with the feasibility study expected to be completed in Q3 2026 [55] Question: What is the definition of commercial production for San Gabriel? - Commercial production is defined as producing two gold bars over 20 continuous days at 65% capacity [64][68]

German Economy & Sentiment - German economy sentiment is powered by expectations of a deal with the US and reduced uncertainty about tariffs [1] - German government's debt package, including an infrastructure fund and tax incentives, is expected to boost investment [2] - Investment goods producers are showing improved data, indicating a positive impact from domestic factors [2] Trade & Tariffs - A stable 15% tariff deal between Europe and the US would be something German exporters could live with, avoiding a massive negative impact [3][4] - While not ideal for Europe, a 15% tariff deal would be an improvement compared to recent months, given the threat of higher tariffs [5] - Exports will become more difficult compared to the pre-Trump era [4] Investment & CapEx - Changes in tax incentives, prospects of higher infrastructure investment, and increased defense spending are currently driving CapEx [7] - Uncertainty is causing companies to postpone projects; a trade resolution could unlock pent-up CapEx spending into 2026 [6][8] - The reliability of the US government in upholding trade deals remains a key concern for investment decisions [8]

Financial Performance - Alphabet's second quarter earnings beat top and bottom line expectations [1] - YouTube's growth was about 13%, exceeding expectations of high single-digit growth [2] - Cloud growth was 32%, surpassing expectations of approximately 28% [3] - Cloud operating margins increased to 21% from 18% last quarter, reaching a new all-time high [7] Strategic Focus - YouTube and cloud, representing about a quarter of Alphabet's revenue, are key areas of investor focus for diversification away from search [5] - The company anticipates cloud revenue potentially doubling in the next 3 to 4 years [6] - Stability and continued growth in search are still important for Alphabet [6] Capital Expenditure - Alphabet increased its CapEx forecast to $85 billion from $75 billion for 2025 [2] - The increased CapEx spend is warranted by top-line growth [3] - Higher CapEx spending is justified by accelerating growth, improving metrics, and improving ROI in cloud business [10]

We're about 2 minutes away from the end of this trading day. Scarlet Fu and Vonnie Quinn here to help you take you through the closing bell. We've got a global simulcast, Carol Massar and Tim Stenovec in the radio studio.So we are bringing together the best of Bloomberg Television, Radio and our YouTube audiences worldwide as we check out what's happening here in the final minutes of the trade. And Carol, this is very much a market that is gaining steam. The rally picks up here as we head to the closing bel ...

What exactly about the job that Jay Powell has done is not up to measure. The labor market is holding up well. Inflation has not reared its ugly head.I mean, it's above the 2% target, but it hasn't blown up just yet. Where do you see the economy failing under his leadership. It's great to be with you.If you look at Jay Powell, his tenure, I mean, we do have to remember that it was under his watch that we saw a 40 year high inflation. They were way too late to recognizing the inherently inflationary impact o ...

What is it that you're most focused in on in zeroed in on this earnings period. Well, you know, what's interesting when I reflect back on it's been such a busy year, so much news. But one of the things that I think has been maybe appreciated by the market but not appreciated as much by the commentators is what a reinforcing narrative we've seen around.So of course, we're focused on tariffs, we're focused on on everything that's happening at the Fed. But if we roll the clock back to the start of the year and ...