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China resists major stimulus as growth nears 5% target floor
Edgen Stock·Jul 30 2026, 08:17Share to
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[1] China Signals Little Appetite for Major Stimulus Despite Growth Headwinds (https://www.wsj.com/economy/china-signals-lit ...)[2] China’s light vehicle market expected to be flat in 2026 (https://www.msn.com/en-us/money/markets/china ...)[3] Nikhil Kamath Explores China's Housing Crisis, America's Debt and the Future of the Global Economy with Matthew Klein and Professor (https://news.webindia123.com/news/articles/Bu ...)[4] China’s Top Officials Weigh New Stimulus After Growth Slowdown (https://www.bloomberg.com/news/articles/2026- ...)[5] China's top leaders pledge incremental measures to support economy (https://www.msn.com/en-us/money/markets/china ...)
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Jul 30 2026, 09:20
Yum China beats Q2 estimates as Pizza Hut deal nears close
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Jul 30 2026, 08:54
Arm drops 6% on Q2 revenue guidance missing top estimates
Arm Holdings' Q2 revenue guidance of $1.38 billion fell short of the most bullish analyst forecasts, extending a 30% selloff as investors question whether the chip designer's data center expansion can justify its 113x forward P/E. "Demand for Arm AGI CPU, Arm's first data center chip, has exceeded expectations," Rene Haas, chief executive officer of Arm Holdings, said on the prior earnings call. The company has disclosed over $2 billion in customer demand for the AGI CPU across fiscal 2027 and 2028, with Meta as lead co-developer. The Q2 guidance compares with Q1 revenue of about $1.26 billion, which came in line with management's forecast. Data center royalty more than doubled in the prior quarter, but R&D spending rose 43% year-over-year to $1.9 billion, compressing non-GAAP operating margin from 52.8% to 49.1%. Shares fell as much as 6.2% in pre-market trading on July 30. The guidance miss threatens to deepen a selloff that has erased nearly a third of Arm's market value over the past month. The company's valuation — at 113x forward earnings — leaves no room for execution missteps, with the Qualcomm trial set for Q4 2026 and a 25% US semiconductor tariff adding regulatory uncertainty to the data center growth narrative. Arm's architecture powers nearly every smartphone processor, but the growth story hinges on expanding into data centers, where it competes with Intel's x86 architecture and Nvidia's Grace CPU. The AGI CPU, its first internally designed data center chip, represents a strategic bet that could reshape its licensing model into a product-driven compute franchise. Management has cited over $2 billion in customer demand for the chip across the next two fiscal years. The investment required to capture that opportunity is weighing on margins. R&D spending surged 43% to $1.9 billion in the latest quarter, reflecting the cost of developing the AGI CPU and expanding the Neoverse server chip lineup. Annualized contract value, a forward-looking revenue indicator, reached $1.66 billion, up 22% year-over-year. Arm shares, which have more than doubled year-to-date despite the recent pullback, trade at a premium that leaves little room for error. The company faces two overhangs: a jury trial with Qualcomm in Q4 2026 over licensing disputes, and the potential impact of a 25% US tariff on semiconductor imports. For investors, the Q2 guidance raises the bar for the earnings call, where Haas will need to convince the market that the margin compression is temporary and the data center payoff is near. This article is for informational purposes only and does not constitute investment advice.
Jul 30 2026, 08:52
UCB shares fall 8.5% as Bimzelx sales miss despite guidance upgrade
**Key Takeaways:** - UCB shares fell 8.5% after raising 2026 earnings guidance - Bimzelx first-half sales came in slightly below expectations - Peak sales forecast for Bimzelx raised to 7 billion euros Belgian biopharmaceutical group UCB raised its 2026 earnings guidance on Thursday, but shares fell more than 8% as investors focused on weaker-than-expected sales of flagship drug Bimzelx and questioned the quality of the upgrade. "The upgraded guidance appeared to imply second-half EBITDA below market expectations, raising questions about whether part of the first-half outperformance reflected favorable one-off factors rather than a sustained improvement in underlying earnings," analysts covering the stock said. Adjusted EBITDA is now expected to grow in the mid-teens to low-twenties percentage range at constant exchange rates, up from a previous forecast of high single-digit to mid-teens growth. The company beat first-half revenue forecasts, supported mainly by legacy products, though Bimzelx — its blockbuster anti-inflammatory drug — posted first-half sales that came in slightly below analyst estimates. The 8.5% selloff in early Brussels trading wiped out gains from the guidance upgrade and pushed UCB shares to their lowest level in weeks. While the company raised Bimzelx's peak sales forecast to 7 billion euros, the miss on first-half sales raised doubts about the drug's near-term trajectory. UCB, which focuses on severe immune-system and neurological diseases, had narrowed its earnings guidance in April to absorb costs linked to a series of acquisitions completed in the first half of 2026. The selloff signals that investors are pricing in execution risk around Bimzelx's commercial ramp, even as management points to a stronger second half. The next catalyst for UCB shares will be second-half sales data for Bimzelx, which will determine whether the upgraded guidance is achievable without further reliance on legacy product revenue. This article is for informational purposes only and does not constitute investment advice.