Chemical giant BASF says indirect effects' of tariffs are squeezing demand and profits

HSBC announces $3 billion share buyback after second-quarter profit plunges 29%, missing expectations

Europe's largest lender HSBC on Wednesday missed second-quarter profit expectations, mostly on account of impairment charges, according to the bank. The bank also announced a share buyback of $3 billion.

It reported profit before tax for the three months ended June of $6.3 billion, down 29% from a year ago.

Here are HSBC's second-quarter 2025 results compared with consensus estimates compiled by the bank.

• Profit before tax:$6.3 billion vs. $6.99 billion
• Revenue:$16.5 billion vs. $16.67 billion

Operating expenses rose by 10% compared to the same period a year ago, and were largely owed to restructuring and other related costs as well as from increased spending and investment in technology, the bank said.

Read the full story here.

Luxury giant Hermès posts 9% rise in second-quarter sales

Luxury behemoth Hermès on Wednesday posted second-quarter sales in line with expectations

Sales rose 9% year-on-year at constant exchange rates in the three month period to 3.91 billion euros ($4.51 million), matching analyst forecasts.

Growth was recorded across all regions and marks an uptick from the first quarter's 7% annual growth.

Executive Chairman Axel Dumas said the results reflected “the strength of the Hermès model.”

It comes as the broader luxury sector has struggled to emerge from a post-Covid-19 slump — a headwind exacerbated further this year by the prospect of U.S. tariffs.

Kering posts worse-than-feared 15% fall in second quarter sales

Gucci-owner Kering posted worse-than-feared second-quarter results and flagged ongoing geopolitical uncertainty as woes persist at the beleaguered luxury group.

Sales dropped 15% year-on-year on a comparable basis to 3.7 billion euros ($4.27 billion), the company said posting results after the market close Tuesday. That compares to the 3.96 billion euros forecast by LSEG analysts.

Gucci sales, which typically make up nearly half of total group revenues, plunged 25% over the quarter to 1.46 billion euros.

“Though the numbers we are reporting remain well below our potential, we are certain that our comprehensive efforts of the past two years have set healthy foundations for the next stages in Kering's development,” Chairman and CEO François-Henri Pinault said in a statement accompanying the results.

BASF says 'indirect effects' of tariffs are squeezing demand and profits

Germany's BASF, one of the largest chemical producers, said “indirect effects” of U.S. tariffs on imports has had an impact on demand and profit margins.

“The volatility of the tariff announcements and the unpredictability of other decisions by the United States government as well as possible countermeasures by trading partners are causing a high level of uncertainty,” the company said in a statement on its second-quarter results.

BASF added that “there are indirect effects, particularly associated with demand for our products and their prices. This is mainly due to intensified competitive pressure and rising inflation. It is still not possible to fully assess the resulting effects.”

The chemicals giant's second-quarter sales amounted to 15.8 billion euros ($18.2 billion), a decline of 2% from the same period last year.

The company also reported a 9.4% decline year-on-year in adjusted profit to 1.8 billion euros for the second quarter.

L'Oreal warns the EU-U.S. trade deal would be costly

L'Oreal missed second-quarter sales forecasts, posting a 2.4% increase, as growth in Europe slowed more than expected.

The cosmetics group saw a small rebound in the U.S. and China, which helped to offset weakness in other regions.

However, the company said it will push for exemptions from U.S. tariffs, warning the EU-U.S. trade deal would be costly, according to Reuters.

Siemens Healthineers beats top line expectations

Siemens Healthineers has topped revenue forecasts for the third quarter, posting 7.6% growth to 5.7 billion euros ($6.6 billion) year on year.

The German medical technology group raised the midpoints of its outlook, even as CEO Bernd Montag warned that geopolitical volatility remains high.

Santander reveals record net profit in the second quarter

Santander posted a record net profit in the second quarter, coming in at 3.4 billion euros ($3.9 billion) and topping expectations. The Spanish lender also unveiled a 1.7 billion euro share buyback program as it reiterated its full year outlook.

European stocks set to open higher as investors digest earnings season

Good morning from London.

There's just under an hour and a half to go until stocks begin trading, with the futures tied to the Stoxx Europe 600 index pointing to a gain of 0.2% when stock markets open.

Regionally, the U.K.'s FTSE 100 and Germany's DAX are expected to rise 0.2% as well. Meanwhile, France CAC 40 index is set to be nearly flat, according to FactSet data.

European companies including Santander, BASF, UBS, HSBC, Siemens Healthineers, Mercedes-Benz, L'Oreal and Kering have reported earnings.

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