21 July 2025 | Weekly Snapshot
Saward Dawson > Wealth Advisory Insights > Weekly Snapshot > 21 July 2025
Did you know?
Britain has some of the highest electricity prices in the developed world. This is in part due to their complete exodus from coal, which in the year 2000 represented approx. 15% of their electricity. Coal has been replaced by wind, which now represents 10% of electricity. This demonstrates the complex trade-offs between decarbonisation, power prices and industrial employment, a sector, which relies on cheap energy prices to compete globally.
Market Movements
The ASX market was up 2.1% last week, led by health stocks (up 5.1%) and tech stocks (up 4.6%). No sectors were weak, a broad contribution of gains, which points to strong external/macro factors at play. This is turn could be driven by several factors, but we lean into the ‘big, beautiful bill’ and imminent US interest rate cuts as two important factors at play. CSL and Xero were two of the strongest stocks on our market. Both South32 and Newmont underperformed the market, in large part due, potentially, to increasing production costs, as has been demonstrated by several mining companies recently.
In the US, the market was not as strong as the ASX, up only 0.5%. Sectors were also mixed, with Info tech leading the way (up 2.1%) whereas healthcare was weaker by 2.6%. Banks were stronger, led by Citigroup (up 6.8%). Ford was one of the weaker stocks (down 6.1%).
In economic news, Australia’s unemployment rate rose to 4.3% and U.S. inflation was stronger at 2.7%
With Ford one of the week’s weakest stocks, it is timely to note how the Auto industry is going through a lot of change. This can be reflected by the share price performance chart (below), which compares the 10 largest auto companies across the globe. Tesla and BYD has seen exceptional share price gains over the past 10 years, due to the progressing adoption of EVs. Driverless cars is next, which is likely to reduce the need to own your own car, which in turn, probably means there will be less car manufacturers in the future. The reverse side lies with the growing importance of network companies, who connect driverless cars with passengers. This is a key reason why we own Uber, which is the leading network company in this industry.
Portfolio Movements
Uber to join forces with Baidu to roll out thousands of driverless vehicles
- Uber are joining forces with Chinese tech company Baidu to roll out thousands of driverless vehicles on its ride-sharing platform across multiple international markets.
- The move will combine Uber’s extensive network and Baidu’s Apollo Go autonomous vehicles. The partnership “represents a major milestone in deploying our technology on a global scale,” Baidu CEO Robin Li said with the first deployments expected to happen later this year in the Middle East and Asia as competition in this area heats up.
- Earlier this year, Uber and alphabet-owned Waymo began offering driverless rides. Tesla rolled out its new robotaxi service last month
- Uber is a global ride-share and delivery service leader
ASML reports better than expected Q2 results – Macro outlook weights
- ASML reported a strong Q2 with EPS €5.90 a decent beat on the €5.24 expected. With a gross margin of 53.7% above the top end of their 50-53% guidance range.
- “Looking at 2026, we see that our AI customers’ fundamentals remain strong. At the same time, we continue to see increasing uncertainty driven by macro-economic and geopolitical developments. Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage.” The company said, with the uncertainty weighing on the share price.
- ASML are the global leader in the development and manufacturing of photolithography machines, which are used to produce integrated circuits for chip manufacturers.
JPMorgan reports strong Q2 results – US economy resilient
- JPMorgan reported Q2 EPS $4.96 a decent beat on the $4.48 estimate.
- They added ~500,000 net new checking accounts.
- CEO Jamie Dimon said “The U.S. economy remained resilient in the quarter. The finalization of tax reform and potential deregulation are positive for the economic outlook; however, significant risks persist – including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices.”
- JPMorgan is the largest US bank
The Week Ahead
- Tuesday 22 July: USA Leading Index (June) -0.3% (prior -0.1%).
- Wednesday 23 July: USA Existing Home Sales (June) 4.0m (prior 4.03m).
- Thursday 24 July: USA Initial Jobless Claims (Jul 19) 227k (prior 221k), S&P Global US Manufacturing PMI (Jul) 52.5 (prior 52.9), S&P Global US Services PMI (Jul) 53.0 (prior 52.9).
- Friday 25 July: USA New Home Sales (Jun) 650k (prior 623k), Durable Goods Orders (Jun) -10.5% (prior 16.4%). United Kingdom Retail Sales Inc Auto Fuel MoM (Jun) 1.8% (prior -1.3%)
Saward Dawson Wealth Advisors Pty Ltd, a Corporate Authorised Representative of Akambo Pty Ltd t/a Accountants Private Advice
The information presented in this publication is general information only, and is not intended to be financial product advice. It has not been prepared taking into account your investment objectives, financial situation or needs, and should not be used as the basis for making an investment decision. Before making any investment decision you need to consider (with your financial adviser) your particular investment needs, objectives and financial circumstances.
Some numerical figures in this publication have been subject to rounding adjustments. Akambo Pty Ltd (including any of its directors, officers or employees) will not accept liability for any loss or damage as a result of any reliance on this information. The market commentary reflect Akambo Pty Ltd’s views and beliefs at the time of preparation, which are subject to change without notice.
