UOB Kay Hian Private Wealth Management
August 26, 2025
Global Markets in Focus: Key Earnings, Strategic Moves, and Emerging Trends Shaping August 2025

Executive Summary

August 2025 opens with a series of high-impact developments across major global markets. From tariff shifts in the US to robust earnings beats in Greater China, evolving regulatory landscapes, and innovation in technology and energy, investors face a dynamic and rapidly shifting financial environment. This comprehensive update from UOB Kay Hian Private Wealth Management covers the latest market movers, in-depth company analyses, and actionable insights for the week.

Major Headlines: Global Economic and Political Developments

• US President Trump plans visits to China and meetings with global leaders, signaling ongoing geopolitical engagement.
• 50% tariffs on Indian imports to the US begin August 27, impacting trade flows.
• S&P 500 and US Treasuries dip after strong Friday gains, with investors wary of inflation data affecting Fed rate-cut trajectories.
• US July core PCE price index expected to rise 2.9% YoY, up from June’s 2.8%.
• Berkshire Hathaway rules out merger with CSX, opting instead for expanded cooperation in coast-to-coast rail services.
• Legal battles intensify in tech: Musk’s xAI sues Apple and OpenAI over AI chatbot competition barriers.
• Interactive Brokers set to join S&P 500, replacing Walgreens Boots Alliance.

Global Market Performance

Key Economic Indicators and Commodities

Americas: Strategic Moves and Market Shifts

Wall Street Banks and M&A Activity

• Major banks, including Citigroup and UBS, resume senior-level hiring after a tariff-induced slowdown, targeting M&A and IPO execution capacity to support long-term growth.
• JPMorgan’s commercial and investment bank reports active summer hiring focused on strategic sectors.

Housing Market Update

• US July new-home sales declined 0.6% to a 652,000 annualized rate—beating forecasts—amid high mortgage rates.
• Median price dropped nearly 6% YoY to \$403,800, the lowest July since 2021.

Amazon and Nuclear Energy Consortium

• Amazon leads a consortium targeting over 5GW new US nuclear capacity by 2039, utilizing advanced small modular reactors and Triso-X fuel, with partners X-energy, Korea Hydro & Nuclear Power, and Doosan Enerbility.

Microsoft LinkedIn Ad Revenue Surge

• LinkedIn expands BrandLink video ad program, attracting sponsors such as AT&T, IBM, SAP, and ServiceNow.
• 2Q25 revenue growth for BrandLink surged nearly 200% QoQ; video uploads up 20%+ by July.
• FY2024: LinkedIn generated \$16.2b revenue, contributing 6.6% to Microsoft’s \$245.1b total.

Epic Games vs. Alphabet’s Google

• Epic Games seeks \$205m in legal fees after antitrust victory, with federal court mandating reforms for Google Play’s app distribution and payments.

Tesla’s Autopilot Litigation

• Tesla rejected a \$60m settlement in a 2019 Autopilot crash case; jury awarded \$243m in damages, including \$200m punitive and \$42.6m compensatory.
• First third-party Autopilot wrongful death trial; Tesla plans to appeal.

Trump Administration: Expanding Equity Stakes

• Plans to expand government equity stakes in healthy firms, starting with near-10% in Intel to convert grants into ownership.
• Critics warn this may limit corporate agility and global sales.

SpaceX and Starship Launches

• Tenth Starship test launch scheduled, aiming to validate reusable booster and upper-stage Starship for payload deployment and atmospheric reentry.

Keurig Dr Pepper Strategic Acquisition

• Keurig Dr Pepper to acquire JDE Peet’s for \$18.4b in cash, planning to later split beverage and coffee operations, reversing their 2018 merger.

Norway Wealth Fund Divestments

• Norway’s \$2T wealth fund divests Caterpillar and five Israeli banks over ethical risks, totaling \$2.1b and \$661m in stakes respectively.

AbbVie’s Psychedelic Drug Acquisition

• AbbVie acquires experimental depression drug from Gilgamesh Pharmaceuticals for up to \$1.2b, targeting the \$50b market for psychedelic-based treatments.

Fed Policy Outlook

• Fed New York President Williams expects persistently low neutral interest rates to continue, citing demographic and productivity trends.

Semiconductor Research Oversight

• US Commerce Department shifts \$7.4b semiconductor research funds oversight from Natcast to National Institute of Standards and Technology.

Greater China: Equity Gains, Corporate Earnings & Policy Shifts

Yuan Strength and ETF Inflows

• Yuan jumps to a one-month high after Fed signals possible rate cut; onshore rate hits 7.1569 per dollar, offshore 7.1574, and PBOC sets strongest midpoint since Nov 2024.
• Chinese equities rally, with US-listed EM ETFs drawing \$274.9m in weekly inflows, China leading with \$223.3m.

Richemont Expands Vhernier Jewellery Brand

• Richemont launches Italian jewellery brand Vhernier in Hong Kong, marking its first push outside Europe and the US.
• Branded jewellery sales projected to grow 6% annually.

Haidilao Hotpot Chain: Revenue Decline and Outlook

• Haidilao’s 1H revenue falls 3.7% YoY to RMB20.7b (\$2.9b), net income down 14% YoY to RMB1.76b.
• Consumers turn frugal, and food delivery price wars cut dine-in demand, but growth expected to resume in 2H from a lower base.

P&G Faces US Diaper Market Challenges

• P&G’s China-made luxury “bumbum” diapers sold at Target as Pampers and Luvs lose share.
• Pampers’ market share slips to 32.3% in 2024; Chinese imports triple in two years, undercutting US-made products even with tariffs.

Evergrande Delisting Marks End of an Era

• Evergrande delisted in Hong Kong after court-ordered liquidation; liabilities over \$300b.
• Value peaked at \$51b in 2017, plummeted to \$282m before suspension.

China Overseas Property: 1H25 Mixed Results

PDD Holdings: 2Q25 Earnings Analysis

Sinopharm: 1H25 Performance

• Revenue fell 2.9% YoY; adjusted net earnings declined 6.4% YoY.
• Company focuses on product and service structure optimization, efficiency, and aims to benefit from consolidation and policy changes.

Sinochem Refinery Sales

• Sinochem to sell two bankrupt Shandong refineries to local operators at significant discounts.
• Refineries to receive 26m barrels of crude import quota for 2025.

China NDRC: Policy Support Symposium

• NDRC pledges to boost demand and fair competition, with firms advocating stronger market support, IP protection, green transition, and labor security.

Hong Kong: RMB Bond Repo Market Launch

• Hong Kong debuts enhanced offshore RMB bond repo market, enabling rehypothecation and cross-currency repo.
• Over RMB3b traded on launch day, 25 institutions participated across RMB, HKD, USD, and EUR.

Asia ex-China: Innovation and Policy Shifts

India’s Economic Data Overhaul

• India to revamp CPI in 2026, sourcing price data from Amazon and Walmart-owned Flipkart; launch of Services Production Index and GDP base year shift to 2022-23 due February 2026.

Singapore REITs: Recovery and Recommendations

• 2Q25 round-up shows upturn potential; CICT and PREIT beat expectations, margin expansion driven by Singapore focus and efficiency.
• Maintain OVERWEIGHT; recommended blue-chip S-REITs: CLAR (S\$4.02), CLAS (S\$1.56), KDCREIT (S\$2.69), KREIT (S\$1.18), LREIT (S\$0.79).

Japan Post Responds to US Tariffs

• Suspends acceptance of some US-bound items following end of “de minimis” duty exemption; gifts over \$100 and goods for sale no longer accepted.

Thomson Medical Launches Johor Bay Project

• Thomson Medical launches RM18b (\$4.3b) Johor Bay development in Malaysia’s Johor-Singapore special economic zone, including hospital, aged care, life sciences, residences, and hotel.

Malaysia Debuts Edge AI Processor

• Launch of first domestically designed edge AI processor, MARS1000, marking Malaysia’s ambition to advance in global semiconductor value chain.

EMEA & Others: Data Centers, Sanctions, and Corporate Moves

Saudi AI Firm Humain Data Center Expansion

• Humain commences construction of data centers in Riyadh and Dammam, each with initial 100-megawatt capacity, targeting operational status by early 2026.

US Considers Sanctions on EU Over Digital Services Act

• Sanctions under review, as US claims act censors Americans and increases tech firm costs; Meta Platforms calls the law censorship.

Mercedes-Benz Pension Trust Sells Nissan Stake

• 3.8% stake in Nissan worth \$346m offered at 5-7% discount; Nissan shares down 24% in 2025 amid tariffs, restructuring, and weak sales.

Orsted Faces US Offshore Wind Project Suspension

• Orsted shares plunge 16.35% to record low after Trump administration suspends work on US offshore wind project, dragging down European wind peers.

Puma Shares Surge on Artemis Stake Sale Rumor

• Puma shares jump 15.15% as Pinault family’s Artemis explores sale of its 29% stake, worth about €800m (\$937m); Artemis also controls Kering, faces scrutiny on debt levels.

Hong Kong IPO Calendar

Must-Watch Events for the Week

• Aug 25-28: VMware Explore
• Aug 26: Key earnings (PetroChina, China Resources Land, Ping An, Zijin, Nongfu)
• Aug 27-28: Deutsche Bank Tech Conf California (MSFT & NVDA)
• Aug 27: China July Industrial Profits, 50% tariffs on Indian exports to US. Earnings: NVDA, SNOW, Trip.com, Innovent, Meituan, Anta, Shenzhou, China Life Insurance, China Overseas Land, CGN, NARI, Wuliangye Yibin, China National Nuclear Power, Shaanxi Coal.
• Aug 28-29: Bitcoin Asia Conf HK
• Aug 28: UOB Kay Hian CIO Series, US 2Q GDP (2nd Est), US Initial Jobless Claims, ECB Jul Minutes. Earnings: MRVL, CNOOC, Li Auto, Gree, Yili, Huaneng, Haier, Mindray Bio-Medical, SF.
• Aug 29: End of “de minimis” duty exemption on low-value packages, China’s Top 100 Developer Real Estate Sales, Macau Jul Hotel Occupancy Rate, US Jul PCE, US Jul Personal Income/Spending. Earnings: Alibaba, CCB, ICBC, Agricultural Bank, BYD, Midea, Longfor, Shenhua, Cosco Shipping, GWM, China State Construction, Yangtze Power, Cambricon, Beijing-Shanghai HSR, Shanxi Xinghuacun.

Conclusion

August 2025 brings a convergence of global policy changes, market volatility, and significant corporate actions. Investors should closely monitor earnings releases, geopolitical moves, and technological innovations, as these will likely set the tone for market performance in the months ahead. Blue-chip recommendations and sectoral insights provided can help guide strategic allocations for both short-term opportunities and long-term growth.
Broker: UOB Kay Hian Private Wealth Management
Date of Report: August 26, 2025