Core Viewpoint - Berkshire Hathaway reported a slight decline in Q2 operating profit and warned that high tariffs imposed by the U.S. government could negatively impact its business [1][8]. Financial Performance - Q2 revenue for Berkshire was $92.515 billion, down from $93.653 billion in the same period last year [2]. - Excluding investment-related items, Q2 operating profit was $11.16 billion, lower than $11.6 billion year-over-year, primarily due to weak insurance underwriting profits [2]. - Currency fluctuations negatively impacted Berkshire, reducing after-tax operating profit by $877 million in Q2, compared to a gain of approximately $446 million in the same period last year due to a strong dollar [2]. Net Profit and Cash Flow - Berkshire's Q2 net profit was $12.37 billion, a significant drop from $30.3 billion in the same period last year, largely influenced by unrealized investment losses [4]. - Cash reserves remained high at $344.1 billion, slightly below the $347 billion at the end of March, providing ammunition for future acquisitions [5]. - The company has net sold stocks for the 11th consecutive quarter, selling approximately $6.92 billion in stocks while purchasing only $3.9 billion [5]. Investment Strategy - The fair value of Berkshire's top five holdings accounted for 67% of its portfolio, with major investments in American Express, Apple, Bank of America, Coca-Cola, and Chevron [5]. - Berkshire has not repurchased any shares in the first half of the year, maintaining a conservative approach to buybacks [5][6]. Impairment and Market Concerns - Berkshire significantly reduced the book value of its investment in Kraft Heinz, recording an impairment loss of $3.8 billion, bringing the holding value down to $8.4 billion [7]. - The company expressed concerns regarding the potential adverse effects of U.S. tariff policies on its operations and investments, highlighting the uncertainty surrounding international trade policies [8][9].

Group 1 - The South Korean won has fallen below the 1400 mark against the US dollar for the first time since May 19 [1] - The current exchange rate is 1,398.82 for selling and 1,399.16 for buying, with a daily range of 1,391.63 to 1,400.77 [3] - The 52-week range for the won is between 1,302.94 and 1,488.32, with the previous close at 1,392.07 and the opening at 1,392.70 [3] Group 2 - The Nikkei 225 index experienced a significant drop before rebounding [4] - The index reached a high of 40,910.47 and a low of -159.35, reflecting a decrease of 0.39% [6] - The trading volume was 580 million shares, with a fluctuation of 1.82 trillion, representing a change of 1.16% [6] Group 3 - The Shanghai Composite Index turned negative, while the Shenzhen Component and ChiNext indices saw increases, with over 2,900 stocks rising across the market [8]

Core Viewpoint - The aviation sector continues to experience a downward trend in stock prices, influenced by rising fuel costs and geopolitical tensions, particularly related to U.S. tariffs on Indian goods and sanctions on Iran [1] Group 1: Stock Performance - China National Aviation (601111) saw a decline of 4.51%, trading at HKD 5.29 [1] - Capital Airport (00694) dropped by 3.15%, with a price of HKD 3.07 [1] - China Southern Airlines (600029) fell by 2.43%, priced at HKD 3.62 [1] - China Eastern Airlines (00670) decreased by 2.74%, trading at HKD 2.84 [1] Group 2: Geopolitical Impact - U.S. President Trump announced a 25% tariff on goods exported from India starting August 1, raising concerns about supply chain disruptions [1] - Additional sanctions may be imposed on India due to its continued energy purchases from Russia, further escalating geopolitical tensions [1] Group 3: Fuel Costs and Financial Implications - Fuel costs remain the largest expense for airlines, and rising oil prices are expected to lead to higher fuel surcharges [1] - The rapid increase in fuel prices may negatively impact demand due to cost pass-through effects, worsening airline profitability [1] - Airlines face significant foreign currency exposure due to aircraft purchases and leasing, which could result in substantial foreign exchange losses amid currency depreciation [1]

Group 1 - The US dollar against the Japanese yen increased by 0.34%, reaching 147.00 yen [1] - The dollar subsequently fell to a low of 145.86 yen before experiencing a period of fluctuating upward movement [1] - The euro against the yen rose by 0.14%, while the British pound against the yen decreased by 0.21% [1]

Core Viewpoint - Moncler is implementing slight price increases to mitigate the impact of U.S. tariffs, but broader economic weakness may lead to delays in new store openings planned for next year [1][5]. Pricing Strategy - The company has raised prices by mid-single-digit percentages for the second half of 2025 and plans further increases for the first half of next year, pending clarity on U.S. tariffs for 2026 [2][4]. - Moncler typically finalizes its pricing strategy for Winter 2026 by October, indicating that it is still early in the planning process [3]. Sales Performance - Moncler reported a 1% year-on-year decline in group revenues to 396.6 million euros ($536.7 million) for the second quarter, falling short of analyst expectations [6]. - The U.S. market, which constitutes 14% of Moncler’s sales, saw a 5% sales increase, although it is uncertain if this was due to preemptive buying ahead of tariff increases [7]. Market Dynamics - Sales in Asia, Moncler's largest market, remained flat, while Europe, the Middle East, and Africa experienced an 8% decline, attributed to currency rebalancing and reduced tourist spending [8]. - The company is maintaining flexibility regarding its plans for approximately a dozen new store openings in 2026, which will be influenced by macroeconomic conditions and the recovery of the luxury sector [5].

Core Viewpoint - The Chinese yuan (RMB) has appreciated against the US dollar, with the central parity rate reported at 7.1385, marking an increase of 29 points and reaching the highest level since November 6, 2024 [1] Summary by Category - Currency Exchange Rate - The RMB/USD central parity rate is set at 7.1385, reflecting a 29-point increase [1] - This rate represents the highest value for the RMB against the USD since November 6, 2024 [1]

Core Insights - The Australian dollar (AUD) to US dollar (USD) exchange rate has sharply declined, breaking the key level of 0.6509, with a drop of 0.5196% [1] - This decline marks a new low for the AUD/USD exchange rate in nearly two months and indicates a significant retreat from a high point reached in the past seven months [1] - The exchange rate fluctuations are expected to have direct economic impacts on businesses and individuals involved in China-Australia trade [1] Exchange Rate Dynamics - As of the latest updates, 100 Chinese yuan can be exchanged for approximately 21.4100 AUD, while 100 AUD is equivalent to 467.0715 yuan [1] - The current exchange rates for USD as reported by the Bank of China show a stable position, with the buying price for both cash and spot at 716.7400 and selling price at 719.7500 [1] Market Sentiment and Analysis - The recent drop in the AUD/USD exchange rate may indicate a short-term shift in market sentiment, necessitating close monitoring of subsequent market dynamics and economic data [3] - Investors are advised to maintain a cautious and rational investment approach in the current complex economic environment [3]

Group 1 - The Brazilian real has depreciated against the US dollar by more than 2% [1]

Group 1 - The S&P/TSX Composite Index in Canada closed down 0.06% at 27,020.28 points, moving away from its all-time closing high [1] - The small-cap index rose by 0.32% to 924.52 points, continuing to set new closing historical highs [1] - The Mexican Composite Index fell by 0.96%, while the Mexican peso appreciated by 0.26% against the US dollar [1] Group 2 - The São Paulo Stock Exchange Index in Brazil decreased by 1.26%, closing at 139,000 points [1] - The Brazilian real depreciated by 1.20% against the US dollar [1]

Core Viewpoint - Foxconn expects to achieve both quarter-on-quarter and year-on-year growth in the third quarter, but ongoing changes in the global political and economic landscape, as well as currency fluctuations, need to be closely monitored [1] Group 1 - The company anticipates growth in the third quarter compared to the previous quarter [1] - The company also expects year-on-year growth for the third quarter [1] - The company highlights the importance of monitoring global political and economic changes [1] Group 2 - The company emphasizes the need to pay attention to currency fluctuations [1]