
Watch: Reeves backs Trump visit to Scotland ‘in the public interest'
'It's in Britain 's national interest to have strong relations with the US administration,' Reeves told press during a visit to a Rolls-Royce factory in Glasgow on Friday (25 Jul).
'And as a result of both that long-term special relationship, [it] has meant that we were the first country in the world to secure a trade deal,' she added.
Trump will land in Scotland on Friday at the start of a four-day visit which will include meetings with First Minister John Swinney and Prime Minister Keir Starmer.
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Reuters
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- Reuters
Ford raises projected tariff hit to results, trims annual guidance
DETROIT, July 30 (Reuters) - Ford Motor (F.N), opens new tab said on Wednesday its second-quarter results took an $800 million hit from tariffs, a less pronounced impact than some of its U.S. rivals thanks to Ford's strong domestic manufacturing base. Still, the automaker said tariffs will likely cost more than expected for the year, increasing the higher range of its projection by $500 million, to $3 billion. Ford shares were down about 2% in after-market trading. Chief Financial Officer Sherry House said Ford raised the projection because duties on Mexico and Canada have remained higher for longer than expected. She also cited elevated levies on aluminum and steel. The Dearborn, Michigan automaker also issued guidance for annual results on Wednesday, after suspending it in May to assess the impact of U.S. President Donald Trump's tariffs. Ford said it now plans to record full-year adjusted earnings before interest and taxes of $6.5 billion to $7.5 billion, down from its February 2025 projection of between $7.0 billion and $8.5 billion. For the latest quarter, the auto giant reported a 21% decrease in earnings per share to 37 cents. Ford recorded a net loss for the quarter of $36 million, which it said was primarily due to special charges related to the cancellation of a three-row electric SUV, and field service actions from a $570 million recall. Ford posted revenue of $50.2 billion for the quarter, up 5% from a year earlier. The automaker has clawed away market share from rivals with aggressive discounting programs and a "zero, zero, zero" campaign, which offers shoppers a $0 down payment, zero percent interest for 48 months, and zero payments for the first 90 days on most of its vehicles. Gasoline-powered vehicles notched a 15.5% increase in the quarter on the back of these deals. Hybrid offers were also popular with shoppers in the quarter. Ford said results for the quarter ending in June were $800 million lower because of Washington's tariffs. Competitor General Motors(GM.N), opens new tab reported steeper tariff headwinds, with a $1.1 billion hit for the quarter, largely from imports on its entry-level Chevrolet and Buick models made in South Korea. GM has projected a $4 billion to $5 billion tariff impact for the year, with plans to offset 30% of that expense. Ford has said it expects to offset $1 billion of its gross tariff costs. Jeep-maker Stellantis ( opens new tab said tariffs were expected to add $1.7 billion in expenses for the year. The White House did not reply to an email requesting comment on the automakers' projections. In the past, Trump has said the levies will bring manufacturing power and jobs back to the U.S. Ford boasts domestic production for around 80% of the vehicles it sells in the U.S., about 25% more than its two Detroit rivals, according to business analytics firm GlobalData's review of last year's imports. While this foundation has made it more resilient to tariffs, it still faces steep levies on aluminum, steel and copper that have rocked the industry. Additionally, executives have said that a pinched supply of rare earth magnets from China has disrupted production this quarter. Ford's EV investments and quality problems remained among its greatest challenges. The automaker expects to lose up to $5.5 billion on its EV and software business in 2025, and recorded a $1.3 billion operating loss on this segment for the quarter. Elimination of a $7,500 consumer tax credit in September is expected to additionally dampen EV sales growth. The automaker is also battling costly quality issues and an industry-topping volume of recalls. Reducing these problems has been a priority for Ford CEO Jim Farley since he took on the role in 2020.


Reuters
a minute ago
- Reuters
Qualcomm forecasts revenue above estimates, betting on AI use to drive chip demand
July 30 (Reuters) - Qualcomm (QCOM.O), opens new tab projected current-quarter sales above Wall Street expectations on Wednesday, wagering that growing AI capabilities in consumer devices will boost demand for its semiconductors despite ongoing global trade uncertainties. The San Diego-based company is the world's largest supplier of modem chips that enable smartphones to connect to wireless data networks. It forecast revenue between $10.3 billion and $11.1 billion for the September quarter, compared with estimates of $10.64 billion, according to data compiled by LSEG. Qualcomm has not seen signs of customers ordering chips ahead of normal seasonals schedules to try to get ahead of possible tariffs, Chief Financial Officer Akash Palkhiwala told Reuters in an interview. U.S. President Donald Trump's tariff policies have so far provided exemptions for smartphones and semiconductor chips from these levies. But Trump has issued warnings about potential sector-specific tariffs targeting the industry, stating as recently as this month that he would "soon announce tariffs on semiconductors." The tariff situation remains highly fluid and complex, with existing Chinese electronics tariffs still in effect despite the exemptions granted for certain categories. Global smartphone shipments climbed 1% in the second quarter, according to research firm IDC, as Apple, a key Qualcomm customer, accelerated shipments to avoid potential tariff impacts. Still, the company said its chip segment revenue from customers excluding Apple were up more than 15% so far this fiscal year. Qualcomm CEO Cristiano Amon said he expects to the company's business in supplying chips to augmented-reality glasses such as Meta Ray-Bans to expand. "We have all the designs that matter right now - the number of designs like the Meta glasses is now up to 19, and that continues to accelerate," Amon told Reuters in an interview. Qualcomm forecast fiscal fourth-quarter sales chip segment sales at a midpoint of $9.3 billion, compared with analyst estimates of $9.19 billion, according to Visible Alpha data. The chipmaker reported sales of $10.37 billion for its third quarter ended June 29, beating estimates of $10.35 billion. The company's third-quarter adjusted profit of $2.77 per share compared with estimates of profit of $2.71 per share. It expects adjusted profits in the fiscal fourth quarter of about $2.85 per share, above estimates of $2.83 per share.


Reuters
a minute ago
- Reuters
Chip tech provider Arm looks to design own processors in major shift
July 30 (Reuters) - Arm Holdings is investing in developing its own chips, CEO Rene Haas said on Wednesday, marking a major shift to its model of licensing its blueprints to other companies. "We are consciously deciding to invest more heavily — is the possibility of going beyond (designs) and building something, building chiplets or even possible solutions," Haas said in an interview with Reuters. Arm shares dropped roughly 4% in extended trading on Wednesday. Chiplets are smaller, modular versions of a so-called monolithic processor that performs specific functions. Designers will stitch several chiplets together to form a complete processor. Arm has been recruiting from its customers and competing against them for deals as it pushes toward selling its own chips, Reuters has reported. The investments Arm is making are an extension of its approach to building more complete designs, known as CSS, Haas said. Haas declined to provide a timeframe in which the company's investments in the new strategy would translate into profit, or give specifics about potential new products that are part of the initiative. This expansion of its business puts the chip tech provider Arm in competition with some of its customers, including Nvidia (NVDA.O), opens new tab, which builds its own processors on top of Arm's architecture. The company also forecast second-quarter profit slightly below estimates on Wednesday, as global trade tensions threaten to hit demand for the chip architecture provider in its mainstay smartphone market. The company's chip technology powers nearly every smartphone in the world, and its tame forecast underscores uncertainty faced by global manufacturers and their suppliers resulting from U.S. President Donald Trump's tariff policies. UK-based Arm forecast adjusted per-share profit between 29 cents and 37 cents for the fiscal second quarter, the midpoint of which is below analysts' average estimate of 36 cents per share, according to LSEG data. The company generates revenue through licensing deals for its intellectual property and a royalty charged for each chip sold that uses its technology. Smartphones remain Arm's biggest stronghold. Morningstar analysts expect Arm to continue as the dominant architecture in smartphone processors, where it has a 99% market share. Global trade tensions, however, cloud the outlook for the market. Uncertainty fueled by tariff volatility and ongoing macroeconomic challenges has tapered end-market demand, with global smartphone shipments increasing just 1% in the April-to-June period, according to International Data Corporation. The company expects current-quarter revenue between $1.01 billion and $1.11 billion, in line with estimates of $1.06 billion. The company reported first-quarter sales of $1.05 billion, coming in just shy of estimates of $1.06 billion. Adjusted profit of 35 cents per share was in line with estimates. It has also made attempts to diversify into the booming data center market, where customers such as Amazon's (AMZN.O), opens new tab cloud unit use its technology. The company's chip architecture also competes against Intel and AMD's longstanding x86 stronghold in the server central processor market — a booming area in the AI industry where CPUs are used alongside advanced graphics processors in data centers.