Charles Payne: Trump's tariffs will generate trillions in revenue
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Investors see few winners as tariff storm lashes global markets
By Gregor Stuart Hunter and Rae Wee SINGAPORE (Reuters) -U.S. President Donald Trump's Friday tariff deadline brought little reprieve for markets, with tech stocks in South Korea and Taiwan hit hard as investors fretted over the cost of disrupting global supply chains and the outcome of talks with China. For traders inured to Trump's repeated threats, his follow-through on blanket tariffs for dozens of nations may be a wake-up call, as the deadline to strike trade deals with the United States expired and new levies arrived in Asia right on cue. While the new export duties are below the "Liberation Day" tariffs unveiled on April 2, they fuel uncertainty, as several countries are still in talks with the United States. Investors are also still on edge over whether the United States and China will be able to clinch a deal to avert a tariff of 55% tariff before their trade truce ends on August 12. "There are no real winners here," said Charu Chanana, chief investment strategist at Saxo in Singapore. "The U.S. administration can claim a political win, having followed through on its threats, but economically the impact will be felt in higher prices, disrupted supply chains, and slower growth," she said. "Even countries that got away with 10% duties aren't celebrating." The move is a reminder that a U.S. president who has consistently advocated protectionist policies for decades now has the power to force higher costs on companies across complex global supply chains that took just as long to build. That is unless foreign governments are prepared to accept deals that prioritise American interests. Stocks have rallied substantially from lows hit after the tariffs were first threatened, as Trump offered a temporary reprieve and countries such as Britain, Japan, and South Korea reached trade deals. The MSCI All Country World Index is up 28.4% from a bottom hit on April 7. But the gauge has now fallen for the past four consecutive sessions. The average tariff rate is going from about 2.5% to 15.3%, said Prashant Bhayani, chief investment officer for Asia at BNP Paribas Wealth Management. "That's a step change," he said. "But if everyone's getting tariffed, it's more about that relative (level), because that affects how much you get, and perhaps relative to your competitors." Underscoring investors' worry were comments by U.S. Treasury Secretary Scott Bessent to CNBC on Thursday that China's trade deal was "not 100% done," adding that he would talk to President Trump later the same day. "Until the China deal comes out, you don't really know which country has a comparative advantage," said Gary Tan, a portfolio manager at Allspring Global Investments in Singapore. "There's limited ways to judge whether a tariff rate for these emerging Asia developing market economies is a good rate or a bad rate." TECH SHOCK Stocks in Asia-Pacific's biggest tech hardware makers suffered the brunt of the selling, with South Korea's Kospi index dropping as much as 3.7% and Taiwan's benchmark index down as much as 1.6% before recovering. Trump hit Taiwan with a tariff of 20% on Friday, higher than the 15% the United States agreed with Japan and South Korea, though the government said it would continue to negotiate for a lower duty. Taiwan and South Korea are critical links in the supply chain of advanced logic chips and memory chips respectively. Taiwan Semiconductor Manufacturing Company shed 1.7%, as shares in its supplier Tokyo Electron plunged 18% after cutting its profit forecasts by a fifth. SK Hynix fell 5.5% amid a broader rout in South Korean stocks as the government said it would raise taxes on corporate income and stock investments. The declines also rattled currency markets, with the South Korean won weakening past 1,400 per dollar for the first time since May 19 and the Taiwan dollar weakening past 30 against the greenback for the first time since June 4. The sector shrugged off better-than-expected earnings from Apple and focused instead on a warning from CEO Tim Cook that U.S. tariffs would add $1.1 billion in costs over the period. Weaker-than-expected results from cloud-computing unit added to the gloom. But even after the tariff deadline, some market participants said they expected agreements to remain in flux. "I expect that the rates will continue to be changed between now and maybe even up until next year," said Jeff Ng, head of Asia macro strategy at SMBC in Singapore. "Trump will continue to make some changes to the tariffs." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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argenx SE (ARGNF) (Q2 2025) Earnings Call Highlights: Record Growth and Strategic Advancements
Total Operating Income: $967 million in Q2 2025. Product Net Sales: $949 million in Q2 2025. Other Operating Income: $19 million in Q2 2025. Year-over-Year Growth: 97% increase in product net sales. Quarter-over-Quarter Growth: 19% or $158 million increase in product net sales from Q1 2025. Regional Product Net Sales: $802 million in the US, $52 million in Japan, $83 million in other markets, $12 million in China. Total Operating Expenses: $766 million in Q2 2025. SG&A Expenses: $328 million in Q2 2025. R&D Expenses: $325 million in Q2 2025. Cost of Sales: $111 million in Q2 2025. Gross Margin: 11% year-to-date. Operating Profit: $201 million in Q2 2025. Financial Income: $38 million in Q2 2025. Exchange Gains: $49 million in Q2 2025. Effective Tax Rate: 15% year-to-date. Profit After Tax: $245 million in Q2 2025; $415 million year-to-date. Cash Balance: $3.9 billion at the end of Q2 2025. Net Cash Flow from Operating Activities: $0.4 billion for the first half of 2025. Warning! GuruFocus has detected 5 Warning Signs with ARGNF. Release Date: July 31, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points argenx SE (ARGNF) reported a 97% year-over-year growth in VYVGART sales, demonstrating strong market demand. The company has successfully initiated multiple registrational trials in large market opportunities such as Sjogren's, myositis, and TED. argenx SE (ARGNF) has advanced four new molecules into its pipeline, indicating robust R&D progress. The introduction of the prefilled syringe for VYVGART has driven new patient starts and increased prescriber demand. The company maintains a strong financial position with a cash balance of $3.9 billion, up from $3.4 billion at the beginning of the year. Negative Points The gross to net adjustments increased from 12% to approximately 20%, impacting revenue calculations. Supply to China showed no growth, reflecting dependency on shipment timing rather than demand. Operating expenses increased by $98 million compared to Q1, driven by higher SG&A and R&D costs. The cost of sales for the quarter was $111 million, leading to a year-to-date gross margin of only 11%. The company faces increasing competition in the MG market, particularly from new entrants like UPLIZNA. Q & A Highlights Q: How have your cycles per year in MG evolved with additional chronic dosing data from AdDAP-NXT and neurologists getting more comfortable with chronic FcRn administration? Is a higher gross price per patient in MG followed by greater discounting towards a consistent net price a driver of higher gross to net? A: The net revenue per patient for MG and CIDP remains consistent even with a higher gross to net. The combination of variables like product mix, list price, gross to net utilization, and adherence offsets the impact of gross to net. We have not taken any price increase during 2025 in the US. We continue to guide to five cycles per year on average for an MG patient, with potential for higher utilization and adherence due to the convenience of PFS for self-injection. Q: Can you provide a breakdown of the PFS switches between Hytrulo and IV? A: We don't provide the split by product presentation, but Hytrulo is driving the majority of the growth for VYVGART. 50% of prefilled syringe patients are new to VYVGART. Our strategy with these innovations is to expand the market and improve differentiation in competitive markets, which the prefilled syringe is delivering. Q: How much of the gMG patient adds were due to the prefilled syringe allowing you to unlock new patients in an earlier line setting? What is the correct run rate assumption going forward? A: The strong quarter in MG was fueled by the prefilled syringe, which expanded the market and grew the prescriber base. We continue to see growth in our IV business in MG, as certain prescribers and patients prefer the IV option. We aim to meet doctors and patients where they are, providing the best efficacy and safety with multiple product presentations. Q: What are your expectations for increasing competition as the year progresses, specifically regarding UPLIZNA? Can you talk about the drop-off rate from treatment for patients? A: As the leading and fastest-growing biologic, we aim to raise the bar on what patients and prescribers can expect in MG. We welcome innovation in the MG and CIDP markets, as it is beneficial for patients. The discontinuation rate for both MG and CIDP is in line with expectations for a chronic medicine. In MG, once patients achieve MSE, they want to optimize their dose and stay on VYVGART. Q: Based on the patient numbers disclosed, it looks like the number of patients on VYVGART for CIDP almost doubled from the end of January to the end of June. Is that a good proxy for the growth rate during the remainder of the year? A: We are pleased with the 2,500 patient number, and growth is expected to continue through the end of the year. The 2,500 patients is a global figure, with launches in Japan and Germany off to a fast start. This demonstrates the demand for innovation in the CIDP market and excitement for VYVGART. Q: Can you provide an update on the IV to subcu switch for VYVGART and the strategy behind the ENERGIZE Phase 3 trial for empa? A: Our strategy with the prefilled syringe or subcutaneous is not a switch strategy but a market expansion strategy. We continue to see growth in the IV business in MG. The ENERGIZE trial for empa is designed to broaden the ability to get a signaling patient by looking at patients that are either refractory or naive, with a 24-week study against a placebo. Q: How do you see the business evolving from here, considering the new era of profitability and upcoming clinical trials? What is the balance sheet strategy going forward? A: We have a strong balance sheet with $3.9 billion, and revenue growth is outpacing OpEx growth. Our capital allocation priorities include delivering on the promise of VYVGART, investing in empa and the rest of the pipeline, expanding our supply chain, exploring business development opportunities, and eventually returning cash to shareholders. Q: Can you provide some context on your decision to advance the clinical development of ARGX-119? Does the data in CMS increase your enthusiasm for ALS and SMA? A: The decision to advance ARGX-119 was based on proof of biology in CMS, showing clinically relevant endpoints. While there should be some correlation with ALS and SMA, these diseases have different biology. The total opportunity for ARGX-119 is exciting, with potential across nerve regeneration indications and muscle diseases. For the complete transcript of the earnings call, please refer to the full earnings call transcript. 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Analysis-BOJ gears up to hike rates again but leaves free hand on timing
By Leika Kihara TOKYO (Reuters) -The Bank of Japan laid the groundwork this week for resuming interest rate hikes by spelling out explicitly for the first time the risks that persistent food price rises fan broad-based inflation. While markets took a dovish reading of BOJ Governor Kazuo Ueda's commentary after Thursday's policy meeting, much of his guidance suggests the bank is inching back towards action after a period of waiting and watching, analysts say. A shift in the board's inflation bias and its less gloomy view on the impact of U.S. tariffs also underscore the BOJ's resolve to pull the trigger once it is convinced the damage from higher levies will be within its expectations. Such hawkish signals in the BOJ's quarterly report, which represents the board's consensus view on the policy outlook, were qualified by Ueda's comments suggesting he was in no rush to raise interest rates. Still, Ueda said Japan was making some progress towards durably hitting the BOJ's 2% inflation target and stressed that its policy rate - at 0.5% - remains very low. "It's not as if we will wait until underlying inflation is firmly at 2%. Our decision is dependent on how likely underlying inflation will reach that level," Ueda told a news conference on Thursday when asked about the next rate-hike timing. All in all, the signals show the BOJ is preparing for another rate hike, while leaving all options open on the exact timing, analysts say. "The outlook report clearly shows the BOJ is starting to lay the groundwork for a rate hike," said Naomi Muguruma, chief bond strategist at Mitsubishi UFJ Morgan Stanley Securities. "The BOJ seems confident about prospects for durably hitting its inflation target," she said. "It may not be in a rush, but signaling that every policy meeting from now will be live." The BOJ holds its next policy meeting in September and another in October, when the board conducts a quarterly review of growth and price forecasts. It holds its final meeting for this year in December. A Reuters poll last month showed a majority of economists expect another rate hike by year-end. Swap rates indicate a 54% chance the BOJ will raise rates to 0.75% in October and a 71% chance in December. SECOND-ROUND EFFECTS When the BOJ compiled its previous outlook report on May 1, Ueda signalled a pause in its rate-hike cycle as President Donald Trump's April announcement of sweeping "reciprocal" tariffs jolted markets and stoked fears of global recession. Thursday's report showed signs the BOJ has ended that pause, as markets restored some calm and Japan's trade agreement with the U.S. in July reduced some uncertainty. For one, the BOJ removed the word "extremely" in describing uncertainty over U.S. trade policy. While Ueda stressed the need to await more data on the impact from U.S. tariffs, he said the risk of the economy "falling off the cliff" has diminished. The board also revised up its inflation forecast and said risks to the price outlook were balanced - a more neutral stance from that of May 1 describing risks as skewed to the downside. Furthermore, the BOJ report for the first time included a detailed assessment of how rising food costs - once seen as transitory - may lead to broad-based price rises. "It is possible that price rises will persist for longer than expected" as companies are passing on not just raw material but labour and distribution costs, the report said. A steady rise in the price of items like food, which consumers buy frequently, may induce "second-round effects" on underlying inflation, the BOJ said in the strongest warning to date on mounting price pressure. To be sure, food prices are among several factors the BOJ looks at in judging whether underlying inflation - or price rises driven by domestic demand - will durably hit its 2% target and justify raising rates. Other measures show underlying inflation remains short of 2%, Ueda said, brushing aside the view the BOJ may be behind the curve in addressing the risk of too-high inflation. But he said the BOJ must keep an eye out on how food prices and headline consumer inflation, which has remained above its target for well over three years, could affect inflation expectations. In exiting a decade-long stimulus last year and raising rates to 0.5% in January, the BOJ pointed to growing signs companies were shedding their long-held aversion to price hikes. Such change in corporate behaviour may be accelerating. A total of 1,010 food and beverage items saw prices rise in August with more than 3,000 items likely to see higher prices in October, think tank Teikoku Databank said on Thursday. "Food inflation will undoubtedly persist, which is probably why the BOJ highlighted the risk so clearly in the report," said veteran BOJ watcher Mari Iwashita. "Once there's more clarity that wage hikes will continue, the BOJ might go ahead and raise rates." Sign in to access your portfolio
