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CTV News
3 hours ago
- Business
- CTV News
Battered U.S. dollar a boon for multinational companies
An employee shows U.S. dollar bills at a money changer in Jakarta, Indonesia, Wednesday, July 16, 2025. (AP Photo/Tatan Syuflana) NEW YORK - Large U.S. multinationals should soon start showing the positive effects of the dollar's tumble in recent months, reversing the situation in the past few years when the greenback's strength hurt companies with significant foreign revenue. The Dollar Index, which measures the buck's strength against six major currencies, is down about 10% for the year, due to rapidly changing U.S. trade policy and worries about U.S. growth and government debt. About half of that drop happened since April 2, when U.S. President Donald Trump announced outsized import tariffs against trading partners that started a panic about investing in U.S. assets. For the April-June period, the index, which is heavily weighted toward the euro, averaged 99.74, down 6.5% from the first quarter average, the largest such decline over consecutive quarters in more than 30 years. The effects of the dollar's slide are expected to start showing up in second-quarter earnings season just getting underway. While that dollar's fall reflects investor worries about the U.S. economy's strength, it can help some companies. A weaker U.S. currency makes it cheaper for multinational companies to convert foreign profits into dollars, while also boosting the competitiveness of exporters' products. 'It's an absolutely huge move,' Greg Boutle, head of U.S. equity & derivative strategy at BNP Paribas, said. 'It is going to flatter earnings a little bit this quarter and also feed its way to guidance.' The dollar's impact on overall earnings is usually small, but can grow more meaningful when the currency experiences a large swing. Every 10% drop in the dollar translates into a profit surprise of about 2%, at the S&P 500 level, according to estimates from research and strategy firm Macro Hive. That would be welcomed by investors increasingly worried about the earnings impact of evolving trade and tariff policies. The second-quarter profit reporting season started this week. 'Whatever the beat, miss or forward guidance was going to be without the FX effect will obviously be a little bit better with it,' Boutle said. The dollar's weakness this year, after a 7% rise in 2024, which hurt corporate results last year, took many market watchers by surprise. 'Certainly a lot of companies came into the year assuming a headwind .... That's flipped. That's a positive for earnings,' Patrick Kaser, portfolio manager at Brandywine Global, said. While earnings growth is expected to decelerate from the first quarter, the weaker dollar could help to offset possible tariff effects. Analysts are forecasting second-quarter earnings growth of 5.8% year-over-year compared with 13.7% in the first quarter, LSEG data show. Even in the first quarter, the dollar was a drag on year-over-year S&P 500 earnings growth of about 1%, but now could lift earnings growth by about 0.5% in the second quarter, according to David Lefkowitz, head of U.S. equities at UBS Global Wealth Management. 'If the dollar stays at these levels, the boost on a year-over-year basis will get progressively larger,' Lefkowitz said, estimating the dollar could generate a lift to year-over-year S&P 500 earnings growth by about 1% and 1.5% for the third and fourth quarter respectively. Foreign exposure S&P 500 companies generate about 41% of their revenue from outside the United States, according to FactSet. Companies with major exposure to the Asia-Pacific region are particularly in focus with the euro having appreciated 12% against the buck while the yen is up about 6%. However, not all index constituents are equally affected by the dollar's swings. The information technology sector tops the list with the most international revenue exposure, at about 55%, followed by the materials and communication services sectors, at 52% and 49%, respectively, according to FactSet. For instance, on Tuesday, BMO Capital Markets analyst Brian Pitz lifted his second-quarter revenue growth estimate for Netflix to 17.2% from 16.4%, largely boosted by a weaker dollar. Netflix will report results on Thursday. Investors are divided on the impact of a weaker dollar on stock prices. Some, like UBS's Lefkowitz, believe any benefits are already priced in by Wall Street and will not significantly move markets during earnings reports, but others still anticipate a positive boost. 'A lot of buy-side investors are obviously very acutely aware of this already, but nevertheless, we do think it's not in sell-side consensus numbers,' BNP's Boutle said. 'So we just think it creates a mechanical tailwind for earnings.' Still, analysts cautioned against counting on a big lift to stock prices from earnings beats driven by the weaker dollar. Many companies, including chipmakers, which stand to benefit from a weaker dollar, are also the ones most vulnerable to a hit from tariffs, Macro Hive research analyst Viresh Kanabar said. Investors may also be preoccupied with the potential impacts companies could see from the recent passage of the sweeping tax-cut and spending bill. 'In an environment where nothing else was going on, the move in the dollar would matter,' Brandywine's Kaser said. 'With all these other things going on, I don't think the currency effect is going to be as big as in an environment that maybe is quieter from a macroeconomic and geopolitical side of things.' Reporting by Saqib Iqbal Ahmed; Editing by Alden Bentley and Richard Chang, Reuters
Associated Press
3 hours ago
- Business
- Associated Press
PT XSys Solusi Cemerlang Announces Partnership with Solix Technologies Next-Gen Data Management Solutions to Indonesia
INDONESIA, July 16, 2025 / / -- PT XSys Solusi Cemerlang, a leading provider of enterprise IT and cybersecurity solutions in Indonesia, today announced a strategic partnership with Solix Technologies, Inc., a global leader in enterprise data management and archiving solutions. This collaboration aims to deliver cutting-edge information lifecycle management (ILM) and data governance capabilities to enterprises across key industries in Indonesia. Through this partnership, PT XSys Solusi Cemerlang will offer the Solix Common Data Platform (Solix CDP), empowering organizations to achieve compliance, storage optimization, and data-driven innovation. Solix CDP supports structured and unstructured data across various platforms, providing a unified framework for data archiving, application retirement, data lake management, and privacy compliance (including GDPR and local regulations such as PDP Law in Indonesia). 'With the rise of data privacy mandates and the exponential growth of enterprise data, companies in Indonesia are seeking smarter ways to manage their information lifecycle,' said PT XSys Solusi Cemerlang. 'Our collaboration with Solix brings a robust platform to our customers, enabling them to reduce costs, mitigate risks, and unlock more value from their data.' The partnership will focus on delivering Solix solutions to key sectors such as financial services, manufacturing, energy, and public sector, where regulatory compliance, data governance, and system modernization are increasingly mission-critical. Indonesia's digital economy is accelerating rapidly, and with it comes the growing need for intelligent data management strategies,' said Samit Mandal, Regional Vice President – APAC, Solix Technologies, Inc. 'Our partnership with PT XSys Solusi Cemerlang reinforces our commitment to helping Indonesian enterprises not only meet evolving compliance requirements but also drive innovation through better control, visibility, and optimization of their data assets.' 'We are excited to partner with PT XSYS Solusi Cemerlang, a trusted name in Indonesia's IT and security ecosystem,' said Sai Gundavelli, Founder & CEO, Solix Technologies, Inc. 'Together, we aim to help enterprises embrace digital transformation with scalable and compliant data management solutions especially as organizations look to get their data ready for AI.' This collaboration marks a significant milestone in XSys's mission to bring world-class enterprise solutions to Indonesia, while reinforcing Solix's commitment to expanding its global footprint in Asia-Pacific markets. For more information, visit: About PT XSys Solusi Cemerlang PT XSys Solusi Cemerlang is a trusted IT solutions provider in Indonesia, offering advanced products and services in the areas of cybersecurity, cloud computing, enterprise software, and IT operations. XSys partners with global technology leaders to deliver integrated solutions tailored to the needs of enterprise and government clients. About Solix Technologies, Inc. Solix Technologies, Inc. is a leading provider of enterprise data, AI and data fabric solutions and is trusted by Fortune 2000 companies for digital transformation and data-driven operations. The Solix Common Data Platform (CDP) is a cloud native, enterprise data platform for cloud data management applications including Enterprise Data Lake, Enterprise Archiving, Enterprise Security and Compliance and Enterprise AI. Solix is headquartered in Santa Clara, California, and operates worldwide through direct sales and an established network of value-added resellers (VARs) and systems integrators. barry kunst Solix +18884676549 ext. [email protected] Visit us on social media: LinkedIn YouTube Legal Disclaimer: EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
The Sun
7 hours ago
- Sport
- The Sun
Pool champion dies aged 40 mid-tournament as tributes pour in for ‘a hero to a generation'
A POOL champion has died mid-tournament aged 40. Taiwanese star Chang Jung-Lin passed away after playing a match in the Indonesia Open 10-Ball pool tournament in Jakarta. 1 Chang won his round of 32 match on Sunday morning at 10am and was scheduled to play again at 4pm. But he was instead found unresponsive in his hotel, according to tournament organisers, and taken to hospital where he could not be revived. It is believed he suffered a heart attack followed by a stroke. The World Pool-Billiards Association (WPA) confirmed his death and passed on their commiserations to his family, describing him as a "hero to a generation". A statement reads: 'Beyond his accomplishments in competition, Chang was a quiet leader, an inspiration to the next generation, and a true ambassador of the sport. 'We have lost a legend, but his spirit, sportsmanship, and contributions to cue sports will never be forgotten.' Tributes have poured in for Chang from fans and fellow players. World No.1 Fedor Gorst said: 'One of the greatest talents our sport has ever seen. 'Pool is a beautiful game, but also a tough one. Behind the focus and precision, many of us learn to hide our struggles well. You'll be deeply missed, Chang.' Chang's biggest triumph came in 2012 when he won the WPA World 8-Ball Championship. He also competed in 10-ball pool and 9-ball pool, making his debut in the latter sport in 2005. Known in Taiwan by his nickname 'Devil Fire Cloud', Chang also reached world No.1 after his 8-ball pool success.
Al Jazeera
9 hours ago
- Business
- Al Jazeera
Indonesia's Prabowo hails ‘new era' in US ties after Trump trade deal
Indonesia's leader has welcomed United States President Donald Trump's announcement that he will slash tariffs for Southeast Asia's biggest economy, hailing the beginning of a 'new era of mutual benefit'. Indonesian President Prabowo Subianto's remarks on Wednesday came after Trump said he had sealed a trade deal with Jakarta under which his tariff rate would fall from 32 percent to 19 percent. 'I had a very good call with President Donald Trump,' Indonesian President Prabowo Subianto said in a post on Instagram on Wednesday. 'Together, we agreed and concluded to take trade relations between Indonesia and the United States into a new era of mutual benefit between our two great nations. President Trump extends his warm regards to the people of Indonesia.' Prabowo's presidential spokesman, Hasan Nasbi, told a news conference that the agreement was the culmination of an 'extraordinary effort' by Indonesia's negotiating team. 'So if we use an analogy, there is a house that built a fence, and the fence was initially 32 for us. After negotiations, the fence could be lowered to 19,' Nasbi told local media in Jakarta. 'Yes, of course, this is progress that cannot be called small progress, nor can it be considered a minor achievement.' Nasbi declined to elaborate on the details of the agreement beyond the lower tariff rate, saying Prabowo would provide more information upon returning from his state visit to France. In his initial announcement of the deal on Truth Social on Tuesday, Trump said Indonesia had agreed to buy $15bn of US energy exports, $4.5bn of US agricultural products, and 50 Boeing jets. Trump said later on Tuesday that the US exporters would have 'full access to everything' and pay no tariffs. 'They are going to pay 19 percent, and we are going to pay nothing,' Trump told reporters at the White House. 'I think it's a good deal for both parties.' Indonesia ranked 24th among the US' top trading partners in 2024, with two-way goods trade worth $38.3bn, according to the Office of the US Trade Representative. The US had a $17.9bn trade deficit with Indonesia the same year, according to the trade office.
CNA
9 hours ago
- Business
- CNA
Indonesia central bank cuts benchmark rate, welcomes US tariff deal
JAKARTA :Indonesia's central bank cut rates on Wednesday for the fourth time since September and said a revised tariff deal with the United States was positive for Southeast Asia's biggest economy amid weakening global trade and slowing domestic demand. Bank Indonesia (BI) cut the benchmark 7-day reverse repurchase rate by 25 basis points to 5.25 per cent, as expected by a slim majority of economists polled by Reuters, and also cut two other key rates. Governor Perry Warjiyo said the central bank would continue to observe room for more rate cuts, citing an expectation of low inflation through to 2026, a stable rupiah and bleak global economic outlook. "BI is already all out in boosting economic growth, including in supporting loan growth," the governor told a press conference. President Donald Trump's announcement of a tariff deal on Tuesday gave BI another reason to ease monetary policy, some analysts said. "External caution was counterbalanced by the fresh news over the trade deal," DBS Bank senior economist Radhika Rao said. "Policymakers have been opportunistic this year, prudently tapping periods of market stability to lower rates, with the latest move also coming against the backdrop of the successful completion of a trade deal with the U.S." The central bank welcomed the trade deal, where Indonesian exports would incur a 19 per cent tariff instead of the 32 per cent rate initially proposed by Washington, Warjiyo said. The deal was a positive development that would support exports and broader economic prospects as the central bank maintained its GDP growth forecast for 2025 at a range of 4.6 per cent to 5.4 per cent, he said. Warjiyo expressed optimism about Indonesia's export outlook after the revised U.S. tariff deal. "This deal will of course increase imports, but in our view, these are imports for productive purposes, which will in turn increase economic growth going forward," he said, adding certainty from the decision will also help with business decision making and prospects for capital inflows. Sluggish household spending saw Indonesia's growth weaken in the first quarter, while the outlook for subsequent quarters has been clouded by the impact of U.S. tariffs on global trade. In its easing cycle since September, BI had taken pauses in between rate cuts to try to head off volatility in the rupiah triggered by Trump's trade policies and geopolitical tensions, even as Indonesia's inflation remained muted. The rupiah, which has been rangebound so far this month, barely moved after BI's announcement, while the main stock index extended gains to trade almost 1 per cent up. Brokerage Mandiri Sekuritas expects another 25-bp cut this year and 50-bp more in the first quarter of 2026 to counter weakening economic activity, its economist Rangga Cipta said.
