Hello everyone,
July was anything but quiet. The United States and the European Union finally patched up their trade spat with a compromise deal that caps most tariffs around 15 %, while China invited the world to join an international organization to govern artificial intelligence and share its benefits. Heatwaves pushed temperatures in Spain up to 46 °C and triggered red alerts across much of Europe, and the humanitarian crisis in Gaza forced Israel to grant daily aid pauses even as malnutrition deaths climbed. Meanwhile Russia claimed full control of Ukraine’s Luhansk region and faced a 10‑day ultimatum from Washington to end the war. On the lighter side, NASA’s ATLAS telescope in Chile discovered comet 3I/ATLAS, an interstellar visitor that will swing past the Sun in October but poses no threat to Earth. And finally, the internet lit up with memes about the CEO caught cheating at the Coldplay concert—so much so that enterprising brands turned the viral moment into impromptu marketing campaigns with impressive creativity.
Check my latest Economic update and some other interesting information below.
- Mauricio
Economic and Market Update
The July market environment has been unusually eventful, dominated by trade headlines and a busy U.S. earnings season. Roughly 112 S&P 500 companies reported last week, and results so far show a higher-than-average beat rate, lifting the growth outlook. Management commentary is less consistent, with sectors diverging on issues ranging from trade policy and geopolitics to currency swings, consumer demand and AI‑driven investment.
Major U.S. banks benefited from volatility‑driven trading and welcomed President Trump’s budget bill and possible deregulation, yet they also warned that tariffs, geopolitical uncertainty, high fiscal deficits and expensive asset values remain significant risks. Analysts note that, globally, negative earnings revisions still outnumber upgrades.
Looking ahead, investors will focus on whether AI capital spending remains robust, especially as big technology firms report results, and on how management teams assess trade disruptions’ impact on margins.
Some exporters are already citing tariffs as a drag on profits. Policy developments are fluid: after threats to impose tariffs by August 1, Washington has struck new trade deals with Japan, Indonesia, the Philippines and more recently with the E.U.
While markets are near record highs and early earnings have offered cautious optimism, the combination of upcoming trade deadlines, geopolitical tensions and macro uncertainty means corporate guidance and policy updates in the weeks ahead could still stir volatility.
Summer reading list
This year’s summer reading list, curated by my dear colleagues Stephanie Dean and Emma Li Lai Wah of RBC Wealth Management, Financial Literacy, features a thoughtful selection of titles to help clients and families strengthen their financial management skills and confidence. Whether you’re relaxing lakeside or in the comfort of your own backyard, it’s the perfect season to read, recharge, and expand your knowledge.
Little angel asleep
Little dreamer, safe and sound, surrounded by love in every form-even plush.
