Financial Performance - Lucid achieved its sixth consecutive record quarter in deliveries and record production in Q2 [2] - Trade policies and tariffs negatively impacted Lucid's gross margin in Q2, but the company expects it to even out for the remainder of the year [2] - Lucid's adjusted IBITDA is negative $632 million, with $4.86 billion in liquidity, expected to last until the second half of next year [8][9] Supply Chain & Raw Materials - Lucid overcame challenges related to magnet availability in Q2, securing licenses for rare earth materials for the remainder of the year [3][5] - Lucid is diversifying its raw material sourcing, including changing magnet chemistry, exploring alternative rare earth sources, and sourcing from different markets [5] - While still utilizing a global supply chain, Lucid sources a small percentage of parts for Gravity and Air from China [12][13] - Lucid is increasing its resilience by sourcing battery cells from the US, with the majority coming from the new Panasonic plant in Kansas [14] - Lucid has also secured deals with graphite suppliers to ensure raw material availability for battery cell production [15] Partnerships & Future Plans - Lucid is partnering with Uber and Neuro to develop autonomous vehicles, with plans to roll them out starting in late 2026 [6][7] - Lucid is confident in its ability to integrate autonomous driving technology into its vehicles, particularly the Gravity model [7] Capital & Funding - Lucid is funded until the second half of next year and will opportunistically raise capital if needed [9][10]

Trade Negotiations & Agreements - Deals with numerous countries are largely set, with paperwork to be finalized in the coming weeks or months [1][2] - Agreements are premised on countries opening their markets and fulfilling investment/purchase commitments [12] - The administration is focused on implementing reached deals and monitoring compliance, with potential tariff reinstatement for non-compliance [9][10][11][12] Trade Deficit & Tariffs - Tariff rates are largely determined by a country's trade deficit with the United States and their willingness to address it [3] - High tariffs are imposed on countries where a path forward on reducing the trade deficit and opening markets could not be fully resolved [5] - A 40% additional tariff will be imposed on sham transshipment, which has always been illegal [17] Country-Specific Trade Relations - The US has a nearly $40 billion trade deficit with Switzerland, and was unable to reach an agreement to reduce it [4] - Indonesia has made commitments on tariff levels and non-tariff barriers, including removing tariffs and addressing agricultural inspections and digital trade [10][11] Policy & Strategy - The administration is shifting from a 70-year policy based on purely efficiency to a new policy based on fair, balanced trade [19] - The president has the authority to regulate imports, and the administration is confident in its legal position regarding tariffs [25] - The administration is prepared to use whatever tools are necessary to rectify the trade deficit and change the global trading system [28]

Financial Data and Key Metrics Changes - Ryerson reported net sales of $1,170 million, an increase of 3% compared to the first quarter, with average selling prices up 2.8% and tons shipped up fractionally [16] - Gross margin during the quarter contracted by 10 basis points to 17.9%, influenced by a higher than anticipated LIFO expense of $13 million [16] - Adjusted EBITDA excluding LIFO achieved $45 million in Q2 2025, compared to $32.8 million in the prior quarter [17] Business Line Data and Key Metrics Changes - North American shipments decreased by 1.2% quarter over quarter, generating incremental market share gains, particularly in carbon long, carbon plate, and stainless long products [7] - The consumer durable sector, especially in appliances and recreational vehicles, showed relative strength, while the construction equipment sector experienced sequential volume contraction [8] - Transactional sales accounted for approximately 46% of the business, with a focus on improving service levels and lead times to gain more transactional opportunities [31][32] Market Data and Key Metrics Changes - North American industry volumes decreased by 2.1% relative to the first quarter, with Ryerson's performance slightly better than the industry average [7] - The company noted bright spots in subsector industries such as data centers and public infrastructure projects driven by federal investment spending [9] - The pricing environment is expected to remain supportive, leading to average selling price appreciation of 1% to 3% in the upcoming quarter [11] Company Strategy and Development Direction - Ryerson continues to operationalize its capital expenditures, having deployed over $650 million since 2021 to modernize its service center network [4] - The company is focused on managing non-value-added costs and precise working capital management to prepare for the next cyclical upturn [6] - Investments in processing capabilities and maintenance projects are ongoing, with a full-year capital expenditure target of $50 million [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about medium to long-term demand trends despite current industry downturn challenges, including high interest rates and tariff uncertainties [4] - The company anticipates a softening of volumes by 2% to 4% in the upcoming quarter, but expects pricing to remain supportive [10] - Management highlighted the importance of improving customer experience through operational efficiencies and better service models [26] Other Important Information - Ryerson ended the second quarter with $510 million of total debt and $479 million of net debt, resulting in a leverage ratio of 4.4 times, above the target range [13] - The company distributed $6 million in dividends during the second quarter and announced a similar cash dividend for the third quarter [14] - The Shelbyville facility is currently at about 67% of its volume ramp-up, with expectations for further improvements as investments mature [42] Q&A Session Summary Question: Can you discuss the North American market share growth in Carbon Long and Plate? - Management noted that investments have improved service models and reduced frictional costs, leading to better customer experiences and market share gains [24][26] Question: What was the tax benefit impact on EPS in the second quarter? - The tax benefit was due to reduced earnings and discrete state tax credits, with an expected effective tax rate of around 25% to 26% going forward [28][29] Question: What is the current split between transactional and contractual sales? - The current split is approximately 46% transactional and 54% contractual, with a focus on increasing transactional sales through improved service [31][32] Question: How is the CapEx trend compared to the $50 million target? - Management indicated that the CapEx is a function of timing, and they remain committed to the $50 million target for the year [36] Question: What are the expectations for second half cash flow and leverage ratio? - Management expects to generate cash through the balance of the year, with the leverage ratio anticipated to move back towards the target range [48]

Core Insights - OP Financial Group reported an operating profit of EUR 990 million for the first half of 2025, a decrease of 19% year on year, primarily due to a decline in net interest income [3][12][34] - The business environment was characterized by geopolitical tensions and trade-policy uncertainty, impacting overall economic forecasts [6][7][12] - Despite challenges, the Group maintained strong capital adequacy with a CET1 ratio of 20.8%, exceeding regulatory requirements [14][45] Financial Performance - Operating profit decreased by 19.5% to EUR 990 million compared to EUR 1,229 million in H1 2024 [4][34] - Total income fell by 10.9% to EUR 2,139 million, while total expenses increased by 5.8% to EUR 1,169 million [4][43] - The cost/income ratio worsened to 54.6% from 46.0% in the previous year [4][34] Segment Performance - Retail Banking's operating profit decreased by 31.4% to EUR 489 million, with net interest income down by 17% [4][20] - Corporate Banking's operating profit increased by 25.5% to EUR 309 million, with net interest income growing by 9% [4][20] - The Insurance segment's operating profit fell by 30.7% to EUR 185 million, despite an 83% increase in the insurance service result [4][20][38] Customer Business and Loans - Income from customer business decreased by 7% to EUR 1,665 million, driven by a 12% decline in net interest income [3][16] - The loan portfolio grew by 2% year on year to EUR 99.7 billion, with new loans drawn down totaling EUR 13.1 billion [4][22][35] - Deposits increased by 7.5% to EUR 81.0 billion, with household deposits rising by 5% [4][21][35] Investment and Insurance - Investment income decreased by 36% to EUR 206 million, primarily due to lower equity investment income [3][17][39] - Non-life insurance premiums written grew by 5%, while claims expenditure decreased by 8% year on year [28] Outlook - The operating profit for 2025 is expected to be good but lower than in 2023 and 2024, with uncertainties related to the business environment and interest rates [47][48]

US-China Trade Relations - The US expressed concerns about China's global overcapacity and purchases of sanctioned Iranian oil, which account for approximately 90% of Iran's oil sales [2] - The US also expressed concerns about China selling approximately $15 billion of dual-use technologies to Russia [2] - The US reiterated its trade policy goals of reducing US deficits, increasing manufacturing, and reshoring the economy [3] - The US aims to "derisk" rather than "decouple" from China, focusing on strategic industries like rare earths, semiconductors, and medicines [5] - Discussions included accelerating the flow of rare earth magnets from China to US companies [4] - China had previously blocked all of their rare earth magnets, but now the US is receiving them [17] Trade Imbalances and Tariffs - China's economy is described as the most unbalanced in modern times, with 30% of global manufacturing and a 2% current account surplus of global GDP [13] - The US is tracking an annual trade deficit with China, but it is expected to be at least $50 billion smaller this year [15] - Section 232 investigations on pharmaceuticals and semiconductors will be applied globally, without targeting any specific country [16] - Potential tariffs on countries buying sanctioned Russian oil could range from 0% to 500%, with the US Senate considering a bill to grant the president discretion to apply secondary tariffs [37] Potential Tariff Pause and Future Discussions - A potential pause on tariff increases is under discussion, with a possible duration of 90 days [9][42] - If the pause is not extended, tariffs could revert to a 34% level, potentially reaching 80-85% depending on the product [18][20] - Further technical discussions are ongoing between the US and Chinese teams [10] - A phone call between President Xi and President Trump occurred in June, during which President Xi invited President Trump to Beijing [22][23] US Economic Outlook - The US economy is performing well, with the biggest downturn in inflation in four years observed in May [33][34] - The US is expected to receive a minimum of $300 billion in tariff income this year, representing 1% of GDP [41]

Trade Negotiation Strategy - The US president aims for completely open markets in trade deals, rejecting initial offers and pushing for higher levels of market access [1] - The US president seeks to rectify what he views as unfair and asymmetric trade practices of the past 80 years, prioritizing the ability of Americans to sell goods overseas [2] - The US president sets the terms and conditions for trade agreements, indicating a unilateral approach to negotiations [2] International Trade Relations - Other countries initially offered market access concessions, such as 50% or 30%, which were deemed insufficient by the US president [1] - Some countries have been slow to meet the US president's expectations regarding trade openness [3] - The US president's approach has significantly impacted the global trade landscape within a short timeframe of six months [4] Decision-Making Process - The US president ultimately decides whether to pursue trade deals with individual countries like India, based on the offers presented [3]

All right, 15% tariffs on our biggest trading partner. Um, I was at the New York Stock Exchange in recent weeks. A lot of people were saying to me essentially 15%, that's the new zero. It seems to be a number that's palatable to the market.Do you agree with this idea that the market can continue to move higher and that businesses can move with a certain degree of certainty with 15% tariffs. >> That's the big question. Uh, 15% looks like the baseline.Um, and that's that's the big question. Have we reached th ...

Tariff Negotiations & Trade Agreements - The US administration aims for tariff-free exports to partner countries, focusing on reciprocal tariffs which have decreased from approximately 50% to 20% in recent agreements [2] - Agreements are facing obstacles in the "third bucket," involving transactions like Japan's $500 billion investment in the US and financing investments in Vietnam, potentially leading to higher tariffs if unresolved [2][3] - The US administration is using threats to increase negotiating leverage, which has been effective, but the EU and China are experiencing tensions during their summit, potentially impacting US-China negotiations [4][5] - The EU's concerns about trade with China are as strong as the US's, making agreements challenging due to the need for consensus among many countries [5][6] - The reciprocal tariffs have been reduced by about 50% in the last four frameworks [13] - Key countries to watch include the EU, Korea, and India, as they significantly impact the deficit, economy, and global economy [13] - A resolution is expected, but if one of the three key countries (EU, Korea, India) doesn't reach an agreement, reciprocal tariffs may be implemented, though likely not for long [14][15] Legal & Policy Considerations - Country-specific tariffs are being challenged in court, potentially impacting the president's trade policy, but the US is expected to find ways to exert its position on tariffs and trade [8][9][10] - Countries should assume the US president will have the legal leeway needed to move forward, as past challenges have been overcome through measures like invoking national security under Section 232 [10][11]

Trade Agreement & Market Sentiment - Japan is committed to invest approximately $500 billion, though details are limited [1] - A new deal deadline of August 1st could reduce market uncertainty [2] - The Yen might strengthen, potentially making Japan a more attractive market for both domestic and US investors [3] - Investors are fairly sanguine, with some complacency evident [6] Investment Strategy & Diversification - International diversification, particularly in developed markets including Japan, is favored over emerging markets due to inherent risks [4] - Global diversification can accrue benefits compared to focusing solely on the US market [5] Recession & Market Risk - Bond traders and investors are considering the possibility of a recession [9] - Recession risk remains, especially if the labor market weakens [10] - There's increased risk due to potential negative catalysts, given the current complacency [8]

Trade Policy & Strategy - The Trump administration's trade policy is characterized by inconsistency, including tariff delays, unreleased deals, and contradictions between the President and his staff [1][2] - The administration initially imposed reciprocal tariffs, then paused them, and subsequently extended the deadline, creating uncertainty [2] - The administration's messaging on trade deals is inconsistent, with negotiators finalizing deals that the President later seeks to improve [3][4] - The administration aims to expedite trade negotiations, potentially leading to both gains and risks for the overall trade agenda [6] Tariffs & Deadlines - Reciprocal tariffs were initially imposed around April 2nd, then paused for 90 days, with a deadline set for July 9th, which was later extended [2] - The new deadline for tariffs was set for August 1st [2][5] Negotiation Tactics - The administration uses letters posted on Truth Social to announce tariff rates, while also suggesting potential adjustments based on how the US is treated [5] - The administration's approach aims to accelerate negotiations and potentially extract more concessions from other nations [6]