Core Viewpoint - The potential for lower interest rates is seen as a positive development for Whirlpool, with shares rising by 6.5% following comments from Federal Reserve Chair Jerome Powell suggesting a possible rate cut [1][2]. Group 1: Impact of Lower Interest Rates on Whirlpool - Lower interest rates are expected to enhance the housing market, making it more affordable and likely leading to increased appliance sales [2]. - The reduction in rates would significantly benefit Whirlpool's higher-margin discretionary demand, encouraging consumers to purchase newer models or plan kitchen upgrades [3]. - Lower interest rates would facilitate the refinancing of Whirlpool's debt, improving the company's financial position [3]. Group 2: Investment Considerations - While Whirlpool is considered an attractive stock, its appeal is not solely dependent on lower interest rates; improvements in competitive positioning due to tariff actions are also significant [4]. - There is uncertainty regarding the timing of a Federal Reserve rate cut and its potential impact on market rates, including mortgage rates, especially if inflation data does not align [4]. - Despite the recent stock movement, Whirlpool's long-term growth prospects warrant attention from investors [6].

Investment Rating - The report indicates a cautious outlook on near-term growth momentum despite a strong GDP print, suggesting the need for more policy stimulus to boost investment demand and support the labor market [6]. Core Insights - China's 2Q25 GDP grew by 5.2% year-on-year, slightly below the 5.4% growth in 1Q25, but above market consensus of 5.1% [1][8]. - Industrial production (IP) showed a surprising increase to 6.8% in June, driven by resilient export activities, with manufacturing IP accelerating to 7.4% [3][8]. - Retail sales growth moderated to 4.8% in June, lower than the previous month and consensus expectations, indicating potential weakness in domestic demand [4][8]. - Fixed asset investment (FAI) growth slowed to 2.8% year-to-date, with a significant contraction in property investment at -11.2% year-on-year [5][8]. - The urban unemployment rate remained stable at 5.0% in June, with disposable income per capita increasing by 5.1% year-on-year [10][11]. Summary by Sections Economic Growth - 2Q25 GDP growth was reported at 5.2% year-on-year, with a sequential increase of 1.1% quarter-on-quarter [1][8]. - In the first half of 2025, real GDP growth reached 5.3%, surpassing the annual policy target of "around 5%" [1]. Industrial Production - IP growth rose to 6.8% in June from 5.8% in May, with manufacturing IP accelerating to 7.4% [3][8]. - Growth was observed in 36 out of 41 industries, with notable increases in industrial robots and integrated circuits [3]. Retail Sales - Retail sales increased by 4.8% year-on-year in June, down from 6.3% in May, influenced by earlier promotions and subsidy halts [4][8]. - Catering services saw a significant slowdown, with growth dropping to 0.9% year-on-year [4]. Fixed Asset Investment - FAI growth moderated to 2.8% year-to-date, with a single-month growth of only 0.5% year-on-year [5][8]. - Property investment continued to decline sharply, with a contraction of -11.2% year-on-year [5]. Labor Market and Income - The urban unemployment rate remained unchanged at 5.0% in June, with average weekly hours worked at 48.5 [10][11]. - Disposable income per capita reached RMB 9,661 in 2Q, reflecting a 5.1% year-on-year increase [11].