By Ion Jauregui – Analyst at ActivTrades
The U.S. biopharmaceutical industry may soon face significant regulatory changes. According to sector sources, the Trump administration is evaluating a proposal to tie U.S. drug prices to the lowest prices available in other developed countries. This initiative, viewed by companies such as Pfizer Inc. (NYSE: PFE) and Merck & Co. Inc. (NYSE: MRK) as a direct threat to innovation, could redefine the global balance of the pharmaceutical sector.
Macroeconomic Outlook: Stagflation Warning
On the macroeconomic front, Citigroup Inc. (NYSE: C) has warned that despite current signs of consumer activity, the negative effects on growth are expected to intensify in the second half of the year. Nathan Sheets, the bank’s Chief Economist, points to rising risks of stagflation, in a context marked by declining confidence and renewed criticism from Donald Trump towards Federal Reserve Chair Jerome Powell.
Defense Sector: Tariff Impact
Raytheon Technologies (NYSE: RTX) has stated that new tariffs proposed by the Trump administration could have a negative impact of up to $850 million on its 2025 earnings. Nevertheless, the company exceeded market expectations in its latest quarterly results and reaffirmed its annual guidance.
Shareholder Reshuffle at BP
Activist fund Elliott has acquired a 5.006% stake in BP plc (LON: BP), surpassing the regulatory threshold in the United Kingdom and becoming the company’s second-largest shareholder—behind BlackRock (9.2%) and ahead of Vanguard (4.95%). This strategic move reflects the increasing shareholder pressure on major oil companies.
Key Events of the Day
Notable economic indicators and corporate earnings scheduled for today include:
• S&P Global Manufacturing PMI
• S&P Global Services PMI
• Earnings reports from: Philip Morris (PM), IBM (IBM), AT&T (T), Thermo Fisher Scientific (TMO), ServiceNow Inc. (NOW), Boston Scientific (BSX), Texas Instruments (TXN), Boeing (BA), O’Reilly Automotive (ORLY), Chipotle Mexican Grill (CMG)
These releases are expected to have a significant impact on markets, particularly across the consumer, technology, and defense sectors.
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.
The U.S. biopharmaceutical industry may soon face significant regulatory changes. According to sector sources, the Trump administration is evaluating a proposal to tie U.S. drug prices to the lowest prices available in other developed countries. This initiative, viewed by companies such as Pfizer Inc. (NYSE: PFE) and Merck & Co. Inc. (NYSE: MRK) as a direct threat to innovation, could redefine the global balance of the pharmaceutical sector.
Macroeconomic Outlook: Stagflation Warning
On the macroeconomic front, Citigroup Inc. (NYSE: C) has warned that despite current signs of consumer activity, the negative effects on growth are expected to intensify in the second half of the year. Nathan Sheets, the bank’s Chief Economist, points to rising risks of stagflation, in a context marked by declining confidence and renewed criticism from Donald Trump towards Federal Reserve Chair Jerome Powell.
Defense Sector: Tariff Impact
Raytheon Technologies (NYSE: RTX) has stated that new tariffs proposed by the Trump administration could have a negative impact of up to $850 million on its 2025 earnings. Nevertheless, the company exceeded market expectations in its latest quarterly results and reaffirmed its annual guidance.
Shareholder Reshuffle at BP
Activist fund Elliott has acquired a 5.006% stake in BP plc (LON: BP), surpassing the regulatory threshold in the United Kingdom and becoming the company’s second-largest shareholder—behind BlackRock (9.2%) and ahead of Vanguard (4.95%). This strategic move reflects the increasing shareholder pressure on major oil companies.
Key Events of the Day
Notable economic indicators and corporate earnings scheduled for today include:
• S&P Global Manufacturing PMI
• S&P Global Services PMI
• Earnings reports from: Philip Morris (PM), IBM (IBM), AT&T (T), Thermo Fisher Scientific (TMO), ServiceNow Inc. (NOW), Boston Scientific (BSX), Texas Instruments (TXN), Boeing (BA), O’Reilly Automotive (ORLY), Chipotle Mexican Grill (CMG)
These releases are expected to have a significant impact on markets, particularly across the consumer, technology, and defense sectors.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.
Disclaimer
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.