Below is a summary of some of the relevant news items from the Capital Markets and the Economy from the past week extracted from RBC Global Insights and FactSet Research.

You can catch up on the past four weeks’ Weekly Update in the link to my Blog.

Read my latest Smart Investor newsletter on my website. The Q3 2025 edition covers Market Review for first half of 2025, the impact of tariffs, and alternative investments. Shiuman’s Corner is about classical music as balm.

Markets

Market scorecard as of close on Friday August 1, 2025.

Country	Equity Indices	Level	1 week	YTD
Canada	S&P/TSX Composite	27,020	-1.7%	9.3%
U.S.	S&P 500	6,238	-2.4%	6.1%
U.S.	NASDAQ	20,650	-2.2%	6.9%
Europe/Asia	MSCI EAFE	2,606	-3.1%	15.2%

Source: FactSet

• TSX finished sharply lower on Friday, off worst levels. All sectors lower. Canadian equities finish the week down 1.7% — their worst showing since early April.
• US equities finished lower in Friday trading, ending not far from worst levels. Major indices logged weekly declines after two weeks of gains.
• U.S. stock indexes continued their march to new intraday highs during the week. The move was propelled by a trifecta of positive drivers: good-enough economic data, decent corporate earnings reports, and downscaled tariff deals with most trading partners.

Economy

Canada

• The Bank of Canada (BoC) on Wednesday held its policy rate steady at 2.75% for a third consecutive month as it awaits greater clarity on a trade agreement with the United States. The decision was reached on a “clear consensus” within the governing council, highlighting the BoC’s cautious stance as it balances a recent pickup in core inflation measures, trade uncertainty, and signs of slowing economic activity.
• In May, GDP fell by 0.1%, the second monthly decline in a row. This was largely driven by the goods and retail sector as external headwinds such as trade uncertainty and internal headwinds such as softening consumer strength rippled through the economy.

U.S.

• Second-quarter GDP growth clocked in at an impressive 3.0% q/q, although this figure was boosted by a slump in imports as pre-tariff stockpiling unwound. Growth for the first half of the year came in at an annualized 1.2% rate, a significant slowdown from the 2.8% growth seen in 2024.

Further Afield

• U.S. President Donald Trump and European Commission President Ursula von der Leyen reached an agreement for a 15% tariff on most European Union (EU) goods exported to the U.S. with the exception of steel, aluminum, and pharmaceuticals that still have higher rates.
• Diverging interpretations continue to emerge about the U.S.-Japan trade deal, particularly regarding the Japan Investment America Initiative component. There has been no joint document signed for the deal, although the White House has published a fact sheet.

 

Notes About Companies in Model Portfolio

• Last week marked the busiest period of the Q2 earnings season with one-third of S&P 500 companies scheduled to report. With over half of the results in so far, the quarter is on track for 5% y/y sales growth and 8% y/y earnings growth, according to FactSet, implying profit margins are still expanding, with anecdotal evidence companies are raising prices by more than their tariff-inflated costs.
• Apple (AAPL) June-quarter results were well ahead of its guidance. Revenue rose 10% year over year to $94 billion, with iPhone revenue rising 13% year over year to $44.6 billion. Services revenue rose 13% to $27.4 billion.
• Berkshire Hathaway (BRK.A/BRK.B) released on Saturday its operating results for the second quarter and first six months of 2025 and 2024.
• Fortis (FTS) released Q2 2025 results on Friday. Second quarter net earnings of $384 million or $0.76 per common share, up from $331 million or $0.67 per common share in 2024. On a year-to-date basis, Net Earnings were $883 million, or $1.76 per common share, an increase of $93 million, or $0.16 per common share compared to the same period in 2024.
• Intact Financial (IFC) reported last Tuesday Q2 2025 results. Operating direct premiums written C$7.03B vs year-ago C$6.66B Combined ratio 86.1% vs year-ago 87.1%. Operating EPS of $5.23 well ahead of $4.02 consensus estimate.
• Microsoft (MSFT) reported Q4 2025 results. Revenue $76.44B vs FactSet estimate of $73.86B. Beat was driven by strength across all business lines, highlighted by outperformance in Azure -- Microsoft Cloud surpassed $168 billion in annual revenue, up 23%, with demand still far-outweighing supply.
• The Procter & Gamble Company (NYSE:PG) reported fourth quarter and fiscal year 2025 results. The Company reported fiscal year 2025 net sales of $84.3 billion, unchanged versus the prior year. A one percent increase due to higher pricing was offset by a one percent decrease from unfavorable foreign exchange impacts. Diluted net earnings per share were $6.51, an increase of eight percent versus prior year as a reduction in selling, general and administrative costs (SG&A) in the current year.
• Visa (NYSE: V) released Q3 2025 results, with revenues up 14% and earnings per share up 23% year-over-year, driven by payment volumes up 8%.

Feel free to contact me with any questions and/or to discuss investment ideas.

Regards,

Shiuman

 

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