Daily Brief | July 16 2025

Top News
· In the United States, producer prices (PPI) fell to their lowest level since September 2024.
· U.S. Treasury Secretary Scott Bessent stated that the end of the tariff truce with China should not cause alarm in the markets, as supply chains are now better adapted to new trade flows.
· The U.S. announced a trade agreement with Indonesia to reduce its tariff rate from 32% to 19%, along with a deal for Indonesia to purchase $4.5 billion in agricultural products and 50 Boeing jets.
· Kevin Hassett, former economic adviser to Trump, is considered the strongest candidate to replace Jerome Powell as Chair of the Federal Reserve in a potential second Trump term.
Economic Outlook
In the United States, producer prices (PPI) fell to their lowest level since September 2024. The Bureau of Labor Statistics (BLS) reported that producer inflation showed no monthly variation in June, based on seasonally adjusted figures, following a 0.3% m/m increase in May. Within the data, final goods prices rose 0.3%, while final services prices fell 0.1%, after rising 0.4% the previous month. The core index, which excludes food and energy, was also flat, according to seasonally adjusted figures. On a 12-month basis, headline PPI stood at 2.3% and core PPI at 2.6%, both below market consensus expectations of 2.5% and 2.7%, respectively. Overall, producer prices in the U.S. remained unchanged at the margin, as higher costs in certain goods—mainly communications equipment—were offset by lower margins in trade services. As such, cost pressures on prices remain contained for the time being.
Markets and Stocks
U.S. stock index futures traded moderately higher this morning as investors digested the latest quarterly bank earnings and the PPI inflation data. Producer prices (PPI) were unchanged in June, coming in below expectations. On the corporate front, Goldman Sachs, Morgan Stanley, and Bank of America all reported earnings that beat estimates. In Europe, markets were trading mostly higher following the release of new corporate results and amid renewed concerns over U.S. trade tensions. In Asia, markets closed slightly lower. The U.S.-Indonesia trade deal—which includes a 19% tariff on exports from the Southeast Asian nation—dampened market sentiment.
In the commodities market, oil prices were down, affected by mixed signals: stronger crude demand from China was offset by concerns over the economic impact of new U.S. tariffs. Meanwhile, gold rose to $3,335 per ounce, supported by dollar weakness.
In fixed income, U.S. Treasury yields declined following the inflation data. The 10-year yield stood at 4.47%, while the 2-year yield fell to 3.94%.
Corporate News
– Goldman Sachs significantly beat revenue and earnings expectations in the second quarter, driven by strong performance in its trading division. The volatility triggered by U.S. tariffs boosted its trading business, particularly in equities, which rose 36% year-over-year. Investment banking fees also came in above expectations.
– Bank of America reported earnings that exceeded forecasts but missed on revenue. The results were impacted by lower net interest income due to declining rates, which offset strong performance in bond trading and resilience in consumer credit.
– Morgan Stanley delivered results that surpassed expectations across all key divisions. Revenues increased due to higher client activity in institutional businesses and solid growth in wealth management.
– Johnson & Johnson topped revenue and earnings estimates and raised its full-year guidance. Market optimism focused on expected key drug approvals in the second half of the year, although concerns remain about patent expirations and pressure in the medical devices division.

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