Uber announces $20bn buyback, beats Q3 forecasts and grows loyalty base

South Africa

South African equity markets posted modest gains, with the Top 40 and All Share indices rising 0.57% and 0.48%, respectively, ending at 92,725.1 and 100,152.8 points. Political tensions escalated as ANC Secretary-General Fikile Mbalula criticised U.S. pressure on domestic policy, amid proposed U.S. sanctions over South Africa’s foreign alignments. Meanwhile, July’s BankservAfrica Economic Transactions Index rose for a third month, up 0.2% m/m and 1.9% y/y, suggesting sustained economic momentum into Q3. Vehicle sales surged 15.6% y/y, and both the S&P Global and Absa PMIs returned to expansionary territory. These indicators signal cautious optimism in the domestic recovery despite geopolitical headwinds.

Europe

European equities ended flat, with the STOXX 600 slipping 0.06% as early gains were reversed by a sharp 2.8% sell-off in healthcare stocks. The sector was hit after U.S. President Trump proposed steep tariffs on pharmaceutical imports, raising trade tension risks. However, Eurozone retail sales surprised to the upside, expanding 3.1% y/y in June—well above expectations—driven by robust non-food and fuel sales. Despite global uncertainty, the data suggest resilient domestic consumption is cushioning the bloc. Strong retail performance in Spain and Germany underpinned the result, signalling that Eurozone fundamentals remain supportive, even amid broader trade and political challenges.

United States

U.S. equities advanced on Wednesday, with the Nasdaq rising over 1% as Apple surged 5.1% on news of a forthcoming $100bn domestic manufacturing pledge. Markets were also buoyed by growing bets on a Federal Reserve rate cut in September, following weaker labour market data and dovish remarks from Fed officials. President Trump’s imposition of an additional 25% tariff on Indian imports, citing geopolitical concerns, further intensified global trade tensions. Market-implied probability for a September rate cut rose to 95.2%, suggesting investor confidence in monetary easing to counter slowing economic momentum. Corporate earnings remained a secondary but supportive catalyst.

Asia

Asian equity markets climbed on Thursday, bolstered by Wall Street gains and growing Fed rate cut expectations. Japanese shares hit record highs, while Chinese export growth in July exceeded forecasts at 7.2% y/y, as exporters accelerated shipments ahead of potential new tariffs. South Korea’s central bank welcomed eased trade tensions following a U.S. deal, while the country posted a record $14.27bn current account surplus in June amid strong tech demand. Despite trade optimism, chipmaker SK Hynix fell 3.1% after Trump announced a 100% tariff on semiconductor imports, highlighting sector-specific risks even as regional trade balances improve.

Currencies

The rand strengthened on Wednesday, aided by a softer dollar and steady domestic data, while investors awaited clarity on U.S. trade policy. The pound traded flat ahead of the Bank of England’s policy decision, where a 25bp rate cut to 4% is anticipated, though inflation risks may split the Monetary Policy Committee. Dollar weakness persisted into Thursday, driven by mounting expectations for Fed rate cuts amid labour market softness. Meanwhile, the euro stabilised as diplomatic efforts to resolve the Russia–Ukraine conflict gained traction. Currency markets remain reactive to both macroeconomic signals and shifting geopolitical undercurrents, particularly out of Washington.

Commodities

Gold rose on Thursday as geopolitical tensions and dovish U.S. economic data reignited safe-haven demand. The dollar weakened after soft U.S. employment figures, fuelling expectations of a Federal Reserve rate cut and lifting gold's appeal for non-dollar holders. Meanwhile, oil prices rebounded after a five-day slide, supported by stable U.S. demand. Nonetheless, Trump’s statement on potential talks with Russia over Ukraine dampened concerns over supply disruptions. Market focus remains on evolving U.S. foreign policy, with secondary sanctions under consideration. While macro risk persists, near-term momentum in precious and energy commodities reflects shifting policy dynamics and investor positioning.

Quilter plc (QLT) -0.90%

Quilter reported adjusted pre-tax profit of £100m for H1 2025, up 3% y/y, supported by robust core net inflows of £4.5bn—equivalent to 8% annualised of opening AuMA. Total AuMA rose 6% to £126.3bn, aided by positive market performance. Platform AuA grew 8% to £92.0bn, with net inflows up 92% y/y. WealthSelect assets increased 14% to £21.0bn. Operating margin improved to 30%, with revenues up 2% and costs well-managed. EPS grew 4% to 5.4p. Quilter declared a 2.0p interim dividend (+18% y/y). The FCA review is ongoing, while a strong solvency ratio of 214% supports capital resilience amid business simplification.

Glencore plc (GLN) -5.79%

Glencore reported H1 2025 adjusted EBITDA of $5.4bn, down 14% y/y, driven by weaker coal pricing and lower copper volumes. Adjusted EBIT fell 37% to $1.8bn, and net loss widened to $655m. Funds from operations declined 22% to $3.1bn, partly due to interest payment timing. Marketing EBIT held firm at $1.4bn, down 8%, amid tariff-related macro volatility. Net debt rose 30% to $14.5bn, though leverage remains manageable at 1.08x EBITDA, falling to 1x post-Viterra sale proceeds. Capex, shareholder returns, and working capital increases contributed to funding outflows. Liquidity remains strong at $12.6bn, supporting resilience through a challenging commodities cycle.

Uber Technologies Inc. (UBER) -0.19%

Uber announced a $20 billion share buyback and forecast Q3 gross bookings between $48.25bn–$49.75bn, exceeding analyst expectations. Q2 gross bookings rose 18.2% y/y, driven by strong performance in both delivery (+24.6%) and mobility (+18.8%). Its Uber One loyalty programme saw a 60% y/y surge in members, now contributing over a third of bookings. Q2 net income met consensus at $0.63/share, while Q3 adjusted EBITDA guidance ($2.19bn–$2.29bn) topped estimates. Uber is increasingly leaning on partnerships—particularly in the robotaxi segment—to expand mobility offerings. The buyback follows a $7bn authorisation earlier this year, reinforcing investor confidence in Uber’s cash generation and profitability trajectory.

Lyft Inc. (LYFT) -3.58%

Lyft missed Q2 revenue estimates, reporting $1.59bn vs expectations of $1.61bn, despite strong 14% y/y growth in rides to 234.8 million. The company outperformed on EPS at $0.10, more than doubling consensus ($0.04), reflecting increased adoption of higher-margin ride services. It expects Q3 gross bookings of $4.65bn–$4.80bn, ahead of forecasts ($4.59bn), while adjusted core earnings also beat at $129.4m. However, the slower top-line growth relative to Uber’s ride-hailing segment weighed on sentiment. Lyft is expanding into Europe via the FreeNow acquisition and partnering with Baidu on robotaxis. A new collaboration with United Airlines aims to boost customer engagement through loyalty rewards.

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