Netflix Slides After Earnings, Japanese PM Ishiba Clings to Power

The yen rose slightly after Japan’s ruling coalition lost its upper house majority by a narrow margin, but Prime Minister Ishiba is expected to stay on with minor party support. Nikkei futures were steady in thin holiday trading, while Wall Street futures edged up and European futures slipped. Attention now shifts to US tariff talks and key corporate earnings from Alphabet, Tesla, Lockheed Martin, and General Dynamics later this week.

Equities

The FTSE 100 rose 0.2% on Friday, securing a fourth consecutive weekly gain and adding 0.6% over the five-day period. The FTSE 250 also climbed 0.6% on the day and gained 1.3% for the week. Investor focus remained on the prospect of a Bank of England rate cut next month, with traders pricing in a 78% chance of a 25 basis-point reduction.

Among the UK’s largest companies, Burberry rose 5.5% to its highest level in nearly 17 months after reporting that its comparable retail sales fell less than expected. The update pointed to early signs of stabilisation in a business that has struggled over the past year. The news lifted the broader personal goods sector by 5%, marking a five-month high.

BP added 0.7% after confirming the sale of its US onshore wind energy business, BP Wind Energy, to American electricity infrastructure firm LS Power. Investors welcomed the move, viewing it as part of a strategy to streamline BP’s portfolio and refocus on its most profitable areas. In contrast, GSK dropped 4.6% to a three-month low. A US FDA advisory panel recommended against approval of its blood cancer drug Blenrep due to concerns about eye-related side effects, which had already been raised in earlier trials.

In the US, the S&P 500 and Nasdaq ended the day broadly flat, up 0.6% and 1.5% respectively for the week. The Dow Jones fell 0.32% on Friday and ended the week slightly lower, down 0.07%. A short-lived drop followed a report suggesting President Trump is considering new tariffs on EU goods, but markets quickly steadied.

Netflix fell 5.1% despite lifting its full-year revenue outlook. Strong viewership for “Squid Game” helped it beat earnings forecasts, but that wasn’t enough to keep the stock in positive territory. Exxon Mobil dropped 3.5% after losing a legal case that clears the way for Chevron’s takeover of Hess. Energy shares overall fell 1%, dragged lower by both Exxon and SLB, which dropped 3.9% following weak quarterly profits and a subdued outlook.

Charles Schwab gained 2.9% after posting stronger-than-expected profits, while Regions Financial rose 6.1% after upgrading its interest income guidance for 2025. Cryptocurrency platforms also made gains as the US House passed stablecoin legislation—Robinhood added 4.1%, and Coinbase rose 2.2%.

Forex & Commodities

The yen edged higher on Monday after Japan’s ruling coalition lost its majority in the upper house, pushing Prime Minister Shigeru Ishiba further into political difficulty. The yen rose to 148.44 per dollar, though it stayed close to last week’s multi-month lows. It also made small gains against the euro and sterling, trading at 172.64 and 199.03 respectively.

The US dollar index dipped 0.1% to 98.38, softening against major currencies ahead of the August 1 deadline for new tariffs on European Union imports. The euro held steady at $1.16317, and the pound last traded at $1.13417. US Commerce Secretary Howard Lutnick said over the weekend that he was confident a deal with the EU could still be reached, but reiterated that the August deadline would not be moved.

Gold rose 0.6% to $3,368.39 per ounce in early Monday trading, supported by the weaker dollar and lingering uncertainty over US trade talks. The broader precious metals market also moved higher, with palladium rising 1.6% to $1,259.93, platinum up 0.5% to $1,429.08, and silver gaining 0.3% to $38.28.

Brent crude was little changed at $69.34 a barrel, while West Texas Intermediate rose 17 cents to $67.51. Investors are weighing the impact of the EU’s latest sanctions on Russian refined oil products and potential disruptions from upcoming Iran nuclear talks. Brent remains within a $64–$70 range after last month’s ceasefire between Israel and Iran.