China’s 1H25 Logistics Cost-to-GDP Ratio Falls to 14%

MACROECONOMY 
China’s 1H25 Logistics Cost-to-GDP Ratio Falls to 14% 
China’s total social logistics cost-to-GDP ratio dropped to 14% in 1H25, down 0.1 ppt from 1Q25 and 0.2 ppt YoY, according to the National Development and Reform Commission. The decline reflects progress in reducing overall logistics costs nationwide. (中国财经) 

US–EU Agree on 15% Tariff Deal to Avert Trade War 
The US and EU agreed to impose a 15% tariff on most EU exports, including cars and pharmaceuticals, to avoid a major trade war ahead of Trump’s 01 Aug deadline. In exchange, the EU committed to increased US energy purchases, added investment, and broader market access. While full details remain unclear, the deal helps avert a USD 1.7 tn trade conflict, despite lingering differences over scope and enforcement. (Bisnis.id) 

INDUSTRY 
China’s Industrial Profit Declined in 1H25 
China’s major industrial firms saw a smaller profit drop of 4.3% in Jun-25, with manufacturing profits rising 1.4%. The automotive sector led gains with a 96.8% surge, while high-tech industries like lithium batteries and aircraft also saw strong growth. Total 1H profits fell to CNY 3.44 tn (-1.8% YoY). Steady revenue, supportive policies, and a 5.3% GDP increase helped stabilize the sector. (Xinhua News)

COMPANY 
BCAS: BBNI IJ - 2Q25 Earnings Below Estimates 

- BBNI 2Q25 net profit reached IDR 4.7 tn (-12.4% QoQ; -12.2% YoY), bringing 1H25 net profit to IDR 10.1tn (-5.6% YoY), below both ours and consensus expectations. 
- Net interest income came in at IDR 9.7tn for 2Q25 (-1.6% QoQ; +0.0% YoY), resulting in IDR 19.5tn in 1H25 (+2.3% YoY). 
- Operating income declined to IDR 14.9tn in 2Q25 (-2.5% QoQ; -1.9% YoY), totaling IDR 30.1 tn in 1H25 (+0.4% YoY). - PPOP declined to IDR 7.9tn in 2Q25 (-2.5% QoQ; -2.6% YoY), with 1H25 stood at IDR 16.1 tn (-1.4% YoY). 
- LDR stood at 86.2% (vs Jun-24: 94.0%; Mar-25: 93.1%), while gross NPL was at 1.9% (vs 2.0% in Mar-25 and Jun-24). CAR reached 21.1%, and ROE softened to 12.8% (vs Mar-25: 13.3% Jun-24: 14.7%).