All the top moves, shakes and red hot takes from Azzet's editorial team are right here in your weekly business wrap every Friday (30 May 2025).
Global stocks: Earnings updates
There was no shortage of global stocks with interesting earnings updates this week.
Rounding off some major announcements, as the week came to a close, was senior writer Cameron Drummond’s coverage of Costco 's 3Q result which beat analyst expectations for both earnings per share and revenue.
Q3 net sales were up 8% to US$61.96 billion, with total sales for the first 36 weeks of FY25 coming in at $185.48 billion - an 8.2% increase from $171.44 billion year-over-year.
Azzet's Chloe Jaenicke covered developments at Meta, with CEO Mark Zuckerberg telling the market that Meta’s AI assistant now has over one billion active users across the company’s family of apps at the company’s annual shareholder meeting.
“The focus for this year is deepening the experience and making Meta AI the leading personal AI with an emphasis on personalisation, voice conversations and entertainment,” Meta CEO Zuckerberg said.
Azzet also updated on Dell Technologies (NYSE: DELL) which told the market to expect stronger guidance with the company receiving unprecedented AI server demand during the first quarter.
While adjusted earnings per share (EPS) of US$1.55 fell short of US$1.69 consensus, revenue of US$23.38 billion beat expectations and marked a 5% annual increase.
Net income declined 3% to US$965 million, but operating income rose 21% to US$1.17 billion.
The company reaffirmed its full-year revenue forecast of US$103 billion but lifted its second-quarter revenue outlook to a range of US$28.5 billion to US$29.5 billion — well ahead of analysts’ estimates.
Turning his attention to China, Azzet's Harlan Ockey updated readers on Temu parent PDD Holdings which saw income drop dramatically last quarter, amid United States tariff pressures and low consumer confidence in China.
Total revenues increased by 10% to ¥95.67 billion, but this was well below the ¥103.06 billion estimated by FactSet analysts.
“In the first quarter, we made substantial investments in our platform ecosystem to support merchants and consumers amid rapid changes in the external environment,” said PDD chair and co-CEO Lei Chen.
“These investments weighed on short-term profitability but gave merchants the room to adapt and focus on high-quality, sustainable growth, strengthening the long-term health of the platform.”
Meanwhile, Azzet's Drummond and Ockey were also kept busy early in the week investigating reports that United States President Donald Trump had given the green light to Nippon Steel’s US$14.9 billion acquisition of U.S. Steel.
The takeover was blocked in January by the Biden administration on grounds of national security, to which Nippon Steel subsequently filed multiple lawsuits against the U.S. government objecting to the decision.
Xiaomi posted record-breaking Q1 2025 earnings, with revenue surging 47.4% year-on-year to CN¥111.3 billion (A$23.953 billion).
The company’s adjusted net profit hit ¥10.7 billion, marking a 64.5% increase — its highest ever.
Australian stocks
In a tag-team effort, Jaenicke, and the eponymous Mark Story revealed a counter argument from broker Romano Sala Tenna, who believes Rio Tinto’s (ASX: RIO) quality steel making iron ore Simandou project in Guinea may end up being a blessing rather than curse for the WA's iron ore rich Pilbara.
The portfolio manager at Katana Asset Management believes talk of the Pilbara’s death and decline into a wasteland – as Fortescue Metals (ASX: FMG) executive chairman Andrew Forrest would have it – has been vastly exaggerated.
What’s been overlooked, notes Sala Tenna are plans by China to take Simandou iron ore deposits coming online in the next five years and blend them together with Pilbara ore to get a higher overall feed for their mills.
There was no stopping Drummond this week, as he also turned his attention to South Africa’s Harmony Gold has struck a US$1.03 billion deal to acquire MAC Copper (ASX: MAC) and its sole strategic asset: the CSA copper mine in New South Wales.
The all-cash deal at $12.25 per share represents a 20.7% premium to MAC’s last close on the NYSE, sending MAC shares surging 17% to $11.90 in pre-market trading after its board gave the deal the go ahead.
We also reported on recent suggestions that disgruntled shareholders are agitating for the large cap agricultural chemical company, Nufarm's (ASX: NUF) board to put feelers out for interested suitors willing to take over business.
Given the market’s limited appetite for the stock, Allen Gray favours a potential buyout over external funding needed to expand the seed technology business which experienced a 46% drop in 1H FY25 earnings.
During the week, Azzet's tenacious ruck rover, senior writer, Garry West updated on the sorry saga to save Star Entertainment.
Within the perennial news story that simply won't go away, West reported that directors of the casino have recommended that shareholders vote in favour of a rescue deal with Bally's Corporation and hotel industry billionaire Bruce Mathieson.
Shareholders will be asked to approve investments in Star of A$200 million (US$130 million) by Bally’s and $100 million by the Mathieson’s family along with the issue to them of convertible notes.
Meanwhile, Grant Samuel and Associates believes in terms of the transaction were 'not fair' for shareholders not associated with Bally’s and Mathieson but they had ‘compelling reasons’ to approve it.
Within another corporate saga currently play out that is Healthscope; Azzet will keep updates on the latest developments.
Despite having brought in both the administrators and the receivers, Healthscope took pains to reassure the market that there was nothing to see here - just business as usual.
Offshore lenders, including hedge funds, like London-based Polus Capital and LA-based Canyon Partners – which bought a sizable chunk of the debt at around 40 cents in the dollar - want quick asset offloading.
However, local lenders, including CBA and its other ‘big-three’ counterparts favour a less disruptive solution - to Healthscope's day-to-day operations – which would reflect badly on their lending acumen.
At the top of the week, West also updated on ASX-listed ag stock, Elders positive outlook for the second half of the 2025 financial year (H2 FY25).
The company posted a big increase in net profit for the first half (H1) due to acquisitions, higher livestock prices and strong cost management and despite dry conditions in parts of Australia.
Buried with trading floor updates were insights into:
- Wisetech Global's (ASX: WTC) plans to buy Texas-based logistics software company e2open (NYSE: ETWO) for $3.5 billion.
- Origin Energy's (ASX: ORG) decision to fine-tune its energy markets earnings guidance, while also flagging a drag on income due to delays in its expected United Kingdom investment.
A week in politics
No week in politics would have been complete without a blow-by-blow nuance on U.S. President Donald Trump's trade war.
This week, Trump didn't disappoint, with young Drummond covering the United States Federal Appeals Court, which temporarily stayed a ruling from the Court of International Trade that struck down President Donald Trump’s sweeping use of emergency powers to impose tariffs.
Executive use of the International Emergency Economic Powers Act (IEEPA) to justify Trump's tariff agenda was deemed unlawful by the lower court earlier this week, prompting an immediate appeal from the administration.
The Appeals Court decision to stay means tariffs - central to Trump’s industrial strategy - remain in force as legal arguments continue to play out. Both sides have been instructed to submit written briefs by early next month.
Staying with Trump, we also reported that United States President Donald Trump's peace plan between Russia and Ukraine is "dying a slow death".
At least that was the bleak assessment reported by BBC's Russia Editor Steve Rosenberg during his regular dispatch covering the nation's headlines.
Jaenicke also brought us a story on Canadian Prime Minister Mark Carney's plans to sign a major European defence rearmament plan by 1 July.
The remarks were made on CBC’s Power and Politics following the Speech from the Throne, which committee his government to join ReArm Europe, a plan created aimed at bolstering European defence capabilities.
Closer to home, Coalition Liberal Party leader Sussan Ley unveiled her shadow cabinet on Wednesday.
Following the shock split in the Nationals a week ago, the party met early on Wednesday morning to endorse a deal to rejoin the Liberals.
And Drummond updated readers on the sorry state of the Port of Darwin's contentious decision in 2015 to lease its operations to Chinese-owned Landbridge Group for 99 years.
Newly re-elected Prime Minister Anthony Albanese has expressed intentions to return the port to Australian hands and is exploring options; including facilitating a purchase by domestic entities - or if necessary - pursuing compulsory acquisition.
Market movements
On Monday, Azzet's markets man, Oliver Gray reported on Gold prices traded below two-week highs in Asian trade on Tuesday, buoyed by a softer United States dollar as markets in the U.S. and United Kingdom remained closed Monday for public holidays.
On Tuesday, Gray turned his attention to oil prices that eased during Asian trading on Tuesday, as investors held off on major moves ahead of a key OPEC+ meeting that could shape global supply trajectory.
Mid-week, Gray reported on the Tech stock-led rally in the U.S. with traders buoyed by news that United States President Donald Trump had agreed to delay a planned 50% tariff on the European Union.
Towards the end of the week, Azzet's Ockey reported on the decision by the United States Securities and Exchange Commission (SEC) to dismiss its lawsuit against cryptocurrency exchange Binance, ending another major cryptocurrency enforcement action.
The agency had alleged Binance artificially inflated its trading volumes, failed to block U.S. users from its primary exchange, and commingling user funds.
It first brought the suit in 2023.
Ockey also rounded off the week in markets with news that gold and silver will soon be recognised as legal tender in Florida in the United States, under a new law allowing both government entities and private companies to accept these metals for debt payments.
The bill was unanimously passed by Florida’s House and Senate, and has now been signed into law by Governor Ron DeSantis. It will enter into effect in July 2026, once the rules for its implementation have been ratified by the state’s legislature.
Economy
Story took a look at the implications of Indonesia's recent full membership to BRICS block.
Story raises doubts over Indonesia's ability to juggle its commitments to BRICS along with its obligations within ASEAN (Association of Southeast Asian Nations) and its existing relationships with Western nations like the U.S. and the EU.
Gray reported on The Reserve Bank of New Zealand 's (RBNZ) cut in official cash rate (OCR) by 25 basis points to 3.25% on Wednesday, matching expectations and marking the lowest level since September 2022. The move extends the central bank’s current easing cycle to 225 basis points.
During the week, Azzet reported on the state of South Korea's military spending. South Korea has poured US$222 billion (A$339 billion) into defence spending from 2021 to 2025, ramping up its military capabilities amid rising tensions with North Korea and China’s growing assertiveness.
Staying with military news, Story reported on plans by Indonesia to buy 42 J-10 fighters modified in China, plus the purchase of Su-35 fighters from Russia.
Alert-5 website says an announcement could be made in Jakarta next month during the Indo Defence Expo and Forum from 11-14 June.
Wealth
The week in wealth included a report from West that Treasurer Jim Chalmers will not be backing down on highly unpopular plans to tax super fund balances of $3 million at 30%; while also taxing unrealised gains.
In response to harsh criticism, the Government said that only 80,000 people (0.5% of taxpayers) were affected and then only wealthy people who have been using the super system to minimise tax, which is not illegal.
On the flipside, Story reported on Cbus research, which revealed that the current income threshold is leaving a growing cadre of low-income earners without access to the Low-Income Super Tax Offset (LISTO) they once took for granted.
What’s becoming increasingly evident, says Cbus deputy CEO Marianne Walker is that the current freeze is not only affecting many members, it's also having an equally negative impact across all industry sectors.
Under the current settings, an apprentice earning $27,778 annually would reach their maximum LISTO entitlement early - long before they receive the full benefit.
To round out the week, the Royal Bank of Canada (RBC) posted net income of CA$4.4 billion (A$4.95 billion) for the quarter ended April 30, 2025, reflecting an 11% year-on-year increase.
Diluted earnings per share (EPS) rose 10% to $3.02, supported by strong performances in Personal Banking, Wealth Management, and Insurance, alongside improved results in Commercial Banking.
However, Capital Markets posted weaker earnings.
The inclusion of HSBC Canada contributed $258 million to net income.
Adjusted net income reached $4.5 billion, marking 8% growth, while adjusted diluted EPS came in at $3.12, up 7% but missing market estimates of $3.18.
Dave McKay, President and Chief Executive Officer of Royal Bank of Canada said, “We saw the strength of our diversified business model reflected across our largest segments in Q2, underpinned by our robust capital position, balance sheet strength and prudent, through-the-cycle approach to risk management.”
