Hot Stocks: Macquarie Group, QBE, News Corp

Wall Street closed higher overnight following news of a draft trade deal between the U.S. and U.K.—President Trump’s first major agreement since imposing broad tariffs earlier this year. The Dow rose 254 points, while the S&P 500 gained 0.58% and the Nasdaq jumped over 1%, led by a tech rebound and optimism surrounding upcoming trade talks with China. Though the U.K. deal keeps a 10% tariff in place, Trump signalled higher rates for other nations with large surpluses. Tech stocks rallied on easing chip export restrictions, while Boeing surged on hopes of a major aircraft order. Meanwhile, global tensions intensified: the EU threatened €95 billion in retaliatory tariffs, and South Asia saw escalating conflict after India’s major airstrike in Kashmir prompted Pakistan to vow retaliation. Bitcoin briefly surpassed US$100,000, oil prices climbed over 3%, and gold held steady. Locally, the ASX is expected to open slightly higher.

Macquarie Group Limited (ASX:MQG) reported a full-year net profit of A$3.72 billion for FY25, up 5% from the prior year, with second-half earnings rising 30% compared to the first half. Return on equity improved to 11.2%, and the final dividend was lifted to A$3.90 per share, bringing the full-year dividend to A$6.50 (35% franked). Net operating income grew to A$17.2 billion, supported by strong results from Macquarie Asset Management (up 33%) and Banking and Financial Services (up 11%), though Commodities and Global Markets fell 12% amid subdued commodity hedging activity. Macquarie Capital’s earnings were stable year-on-year. Assets under management were steady at A$941 billion, and the group retained a substantial capital surplus of A$9.5 billion, with a CET1 ratio of 12.8% and robust liquidity metrics. International income made up 66% of total income. Macquarie also extended its on-market buyback of up to A$2 billion and remains focused on disciplined capital deployment across its global platforms.

News Corporation (ASX:NWS) reported third-quarter FY2025 revenue of US$2.01 billion, up 1% year-on-year, with net income from continuing operations rising 67% to US$107 million. Total Segment EBITDA climbed 12% to US$290 million, reflecting strong contributions from Dow Jones, Digital Real Estate Services (including REA Group), and Book Publishing. Dow Jones revenue rose 6%, driven by subscription growth and professional information services, while REA Group posted a 6% increase amid strong residential performance. The company finalised the sale of Foxtel to DAZN in April, receiving cash and a 6% equity stake, with proceeds used to repay shareholder loans and strengthen the balance sheet. Book Publishing saw modest growth, while News Media revenue declined 8% due to weaker ad sales. Free cash flow improved to US$539 million for the nine months ended 31 March. CEO Robert Thomson cited continued digital expansion, cost discipline, and asset realignment as key drivers of performance.

QBE Insurance Group (ASX:QBE) delivered a strong start to 2025, reporting 8% gross written premium growth in Q1 and reiterating its full-year outlook for mid-single-digit growth and a combined operating ratio of ~92.5%. The insurer absorbed ~$420 million in catastrophe claims year-to-date, including exposure to the LA wildfires, Queensland flooding, and Cyclone Alfred. Investment income for the quarter was ~$350 million, supported by favourable interest rates and a conservatively positioned portfolio. In FY2024, QBE posted a statutory net profit of US$1.779 billion (up 31%) and paid a record full-year dividend of A¢87 per share. The company highlighted improved performance across its businesses, especially in North America, and continued progress on strategic priorities, including AI-driven underwriting tools and portfolio optimisation. Sustainability remained a key focus, with QBE exceeding its targets for women in leadership and launching new community resilience initiatives through the QBE Foundation.