BlackRock Q2 EPS Beats but Revenue Misses Despite Record $12.5 Trillion AUM

South Africa

Yesterday the All Share index added 0.23% to reach 97,019.4 points, while the Top 40 index recorded a 0.29% gain to close at 89,303.8 points. A significant economic focus was on the nation's accelerating digital strategy in anticipation of the upcoming G20 Summit later in the year, which South Africa is set to host. This summit marks the first G20 event on the African continent, providing a unique platform for South Africa to champion the continent's digital agenda and foster global collaboration on innovation. South Africa's mining output rose 0.2% year-on-year in May compared with a decrease of 7.7% in April, Statistics South Africa data showed earlier on Tuesday. Analysts polled by Reuters and Nedbank economists expected production to have fallen 5.4% and 2.1% respectively this time around. In South Africa, domestic investors will look to May retail sales data today for further clues into the health of the continent's most industrialised economy.

Europe

European shares ended lower on Tuesday, dragged down by heavyweight financial and healthcare stocks as investors awaited news on a potential U.S-EU trade deal while assessing the latest U.S. inflation data. The pan-European STOXX 600 index closed down 0.4%. The outlook for European corporate health has deteriorated, the latest earnings forecasts showed on Tuesday, as U.S. President Donald Trump's most recent tariff statements created further uncertainty for businesses. European companies are expected to report a drop of 0.7% year-on-year in second-quarter earnings, on average, according to LSEG I/B/E/S data, below the 0.2% decrease analysts had expected a week ago. The UK's FTSE 100 retreated from record highs touched earlier in the session on Tuesday as rising U.S. inflation raised concerns about the impact of tariffs, while investors also focused on the Bank of England's monetary policy path.

US

The Nasdaq Composite posted its latest record finish on Tuesday, supported by a jump in shares of heavyweight Nvidia, but the other Wall Street benchmarks dropped as a key inflation report and a flurry of bank earnings failed to excite investors. It was the fourth session in five that the technology-heavy Nasdaq index has posted a record close, and the eighth time since June 27. Artificial-intelligence chip leader Nvidia was the primary factor behind the Nasdaq's increase, gaining 4% after it unveiled plans to resume sales of its H20 AI chip to China. Markets have been buoyant in recent weeks. This week was expected to be a significant test of that improving sentiment, with the start of second-quarter earnings season and inflation reports that were forecast to reflect sellers starting to pass on higher tariff-related costs. The first of these reports showed U.S. consumer prices posted their biggest jump in five months in June, hinting that tariffs may be starting to heat up inflation. Still, underlying inflation stayed moderate, offering some reassurance despite the headline spike.

Asia

Asian stock markets were under pressure on Wednesday while the dollar climbed to its firmest against the yen since early April, after U.S. inflation suggested tariffs are pushing prices up, dampening expectations for Federal Reserve policy easing. Japanese manufacturers' business confidence improved slightly in July and is expected to strengthen further in the coming months despite ongoing concerns about U.S. tariffs, thanks to recovery in the semiconductor sector, a Reuters Tankan poll showed. The monthly poll, which tracks the Bank of Japan's quarterly tankan business survey, showed the manufacturers' sentiment index rising to plus 7 in July from plus 6 in June, while the service-sector index remained unchanged at plus 30 for the third consecutive month.

Currencies

The South African rand firmed on Tuesday after the release of better-than-expected local mining production figures and as U.S. data showed rising inflation in June in the world's largest economy.  The pound steadied on Tuesday, following the previous day's slide, in line with a more upbeat tone across the broader markets, ahead of U.S. inflation data and a speech by Bank of England Governor Andrew Bailey later on. The U.S. dollar rose alongside Treasury yields on Wednesday, which in turn kept pressure on the yen after the latest U.S. inflation report showed signs that President Donald Trump's tariffs were beginning to feed into prices. Rising prices on goods as varied as coffee, audio equipment and home furnishing pulled the inflation rate higher in June, with substantial increases in prices of the heavily imported items.

Commodities

Gold prices rose on Wednesday as investors digested data showing an increase in U.S. consumer prices last month and waited for further clarity on U.S. President Donald Trump's trade policy. Oil prices rose on Wednesday, boosted by expectations of firm summer demand in the world's two largest consumers, the United States and China, though gains were capped by analysts' caution about the wider economy. Prices have seesawed in a tight range as signs of steady demand from an increase in travel during the Northern Hemisphere summer have competed with concerns that U.S. tariffs on trading partners will slow economic growth and fuel consumption. Major oil producers are pointing to signs of better economic growth in the second half of the year while data from China showed consistent growth. The data also showed that China's crude oil throughput in June jumped 8.5% from a year earlier, indicating stronger fuel demand.

 Labat Africa Limited (LAB) +20.00%

Labat Africa Limited released a cautionary announcement yesterday, indicating that the company is engaged in discussions that, if successfully concluded, may have a material effect on its share price. For investment professionals, a cautionary announcement signals that the company is involved in significant unconfirmed transactions or events, such as potential mergers, acquisitions, disposals, or major funding rounds. While specific details remain undisclosed, such notices are crucial as they create a period of heightened uncertainty and speculation around the company's future direction and valuation. Investors should monitor subsequent announcements closely for clarification, as these developments could lead to substantial shifts in the company's operational scope, financial structure, and ultimately, shareholder value. The "material effect" clause suggests the potential for a significant re-rating of the stock once more information becomes available.

Assura PLC (AHR) -0.25%

Assura PLC issued a notice of a special dividend yesterday, alongside the publication of a response document. A special dividend indicates that the company is distributing additional profits to shareholders, often stemming from exceptional financial performance, asset sales, or a robust cash position. For investment professionals, this is a positive signal, demonstrating a company's financial strength and commitment to returning capital to shareholders beyond its regular dividend policy. The accompanying response document suggests that this special dividend might be related to a specific corporate action, such as a takeover bid or a significant strategic event, requiring formal communication and a response to shareholders. Understanding the context of the special dividend within the response document is crucial for assessing its implications for the company's long-term financial health and future growth prospects.

MC Mining Limited (MCZ) +15.38%

MC Mining Limited announced yesterday that its steel making coal strategy is entering a new growth phase through the "re-imagined" Uitkomst Colliery. This development is significant for investment professionals tracking the resources sector, as it implies a revitalisation or expansion of operations at a key asset. The focus on steel-making coal, a critical input for the steel industry, positions MC Mining to capitalise on global demand for this specific commodity. A "new growth phase" typically involves increased production capacity, enhanced operational efficiency, or the unlocking of previously unexploited reserves, all of which could lead to improved revenue and profitability for the company. Investors will be keen to understand the specifics of this re-imagining, including capital expenditure requirements, anticipated

BlackRock Inc. (BLK) -5.88%

BlackRock, Inc. announced its second-quarter 2025 financial results, reporting diluted earnings per share (EPS) of $10.19, or $12.05 as adjusted. Despite achieving a record level of assets under management (AUM) at $12.5 trillion, the firm's revenue for the period fell short of market expectations. Revenue increased by 13% year-over-year, positively impacted by market performance, organic base fee growth, and higher technology services and subscription revenue, but was partially offset by lower performance fees. The quarter saw $68 billion in total net inflows, though this reflected the impact of a significant $52 billion lower-fee index partial redemption from a single institutional client. Year-to-date total net inflows of $152 billion were notably driven by record first-half performance in iShares® ETFs, as well as strong private markets and cash net inflows. While GAAP operating income decreased by 4% due to non-cash acquisition-related expenses, as-adjusted operating income rose by 12%. Investment professionals will keenly assess the drivers behind the revenue miss and the impact of the large institutional redemption on future growth, alongside the strength of its core ETF and private markets businesses.

Citigroup Inc. (C) +3.68%

Citigroup Inc. reported strong second-quarter 2025 financial results, with net income rising to $4.0 billion, or $1.96 per diluted share, on revenues of $21.7 billion. This represents a significant improvement from the prior-year period's net income of $3.2 billion and revenues of $20.0 billion. The 8% year-on-year revenue increase was notably broad-based, with growth observed across all five of Citi's interconnected businesses, partially offsetting declines in other segments. Excluding divestiture-related impacts, revenue growth was an even stronger 9%. This solid top-line performance, despite higher expenses and an increased cost of credit, propelled the rise in net income. Furthermore, the bank's book value per share expanded by 7% to $106.94, and tangible book value per share grew by 8% to $94.16.

Do you prefer a full in-depth report you can read offline? Click here to download the full report.