(Alliance News) - Stocks in Europe are called mixed, while Asian markets trend lower amid a lack of macro catalysts, following a muted close on Wall Street.
Here is what you need to know before the European market open on Wednesday:
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MARKETS
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CAC 40: called up 5.4 points, 0.1%, at 8,081.08
DAX 40: called down 5.9 points at 18,424.15
FTSE 100: called up 17.0 points, 0.2% at 8,330.67
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Hang Seng: down 0.4% at 18,410.20
Nikkei 225: down 1.4% at 38,290.70
S&P/ASX 200: up 0.1% at 7,799.00
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Dow: closed up 31.99 points, 0.1%, at 38,884.26
S&P 500: closed up 0.1% at 5,187.70
Nasdaq Composite: closed 0.1% at 16,332.56
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EUR: down at USD1.0741 (USD1.0774)
GBP: down at USD1.2485 (USD1.2542)
USD: up at JPY155.12 (JPY154.49)
GOLD: up slightly at USD2,317.44 per ounce (USD2,315.72)
OIL (Brent): flat at USD82.84 a barrel (USD82.90)
(changes since previous London equities close)
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ECONOMIC CALENDAR
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08:00 CEST Germany industrial production
11:00 IST Ireland industrial production
10:00 CEST Italy retail sales
09:00 CEST Spain industrial production
10:00 EDT US wholesale inventories
11:00 EDT US Federal Reserve Vice Chair Philip Jefferson speaks
13:30 EDT US Federal Reserve Governor Lisa Cook speaks
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TOP ECONOMIC NEWS
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The White House said that key ally Israel must reopen Gaza's Rafah border crossing with Egypt, while expressing hope that a ceasefire deal with Hamas was within reach. Israel sent tanks into the southern Gaza city of Rafah and seized control of the crossing, a key aid passage, while warning it will deepen its operation if truce talks fail to secure the release of hostages held by Hamas. "The crossings that have been closed need to be reopened, it is unacceptable for them to be closed," White House Press Secretary Karine Jean-Pierre told a briefing. "We believe Rafah border crossing should be quickly reopened for the movement of humanitarian assistance," Jean-Pierre added.
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The US halted a shipment of bombs to Israel last week after it failed to address Washington's concerns over plans to invade the southern Gaza city of Rafah, a senior US official said. "We have paused one shipment of weapons last week. It consists of 1,800 2,000-lb (907 kg) bombs and 1,700 500-lb (226 kg) bombs," the senior official in President Joe Biden's administration said on condition of anonymity. "We have not made a final determination on how to proceed with this shipment," the official added. Biden's administration made the decision when it appeared Israel was on the verge of a major ground operation into Rafah, which Washington has strongly opposed.
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A Florida judge indefinitely postponed Donald Trump's criminal trial over his alleged mishandling of classified documents, making it unlikely the case will be heard before the November presidential election. The former president had been scheduled to go on trial on May 20 but District Judge Aileen Cannon said that was not possible because of the number of pre-trial motions before the court. Cannon, a Trump appointee, did not set a new date for the start of the federal trial. Trump is currently on trial in New York on state charges of falsifying business records to pay hush money to a porn star ahead of the 2016 presidential election.
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Chinese President Xi Jinping will hold talks with his Serbian counterpart in Belgrade on Wednesday, as Beijing seeks to deepen its political and economic ties with friendlier countries in Europe. China has poured billions into Serbia and neighbouring Balkan countries, particularly into mining and manufacturing, and last year Beijing and Belgrade signed a free trade agreement. After meeting with President Aleksandar Vucic, Xi will go to Hungary, where China has invested heavily in vast battery and electric vehicle manufacturing plants.
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The rate of UK hospitality business closures slowed down over the first months of 2024 as businesses saw some rampant cost inflation ease back. However, one in 40 pubs, restaurants, bars and hotels have still shut their doors for good over the past 12 months, according to industry data. Fresh figures from CGA by NIQ and AlixPartners showed that 368 hospitality sites, or the equivalent of four a day, closed in the first quarter of the year. The data meant that there were 98,745 hospitality firms across the UK at the end of March, dropping by more than 2,000 since the same time a year earlier.
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COMPANY CALENDAR
----------
Advanced Micro Devices Inc - AGM
Ahold Delhaize NV - Q1 Results
Airbnb Inc - Q1 Results
Allianz SE - AGM
Anheuser-Busch InBev NV - Q1 Results
Bechtle AG - Q1 Results
BMW AG - Q1 Results
Continental AG - Q1 Results
Evonik Industries AG - Q1 Results
GEA Group AG - Q1 Results
Gilead Sciences Inc - AGM
Haleon PLC - AGM
Henkel AG & Co KGaA - Q1 Results
Itochu Corp - Full Year Results
Mercedes-Benz Group AG - AGM
MTU Aero Engines AG - AGM
Munich Re AG - Q1 Results
Pershing Square Holdings Ltd - AGM
Rentokil Initial PLC - AGM
Stabilus SE - Half Year Results
The Trade Desk Inc - Q1 Results
Toyota Motor Corp - Full Year Results
Uber Technologies Inc - Q1 Results
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TOP COMPANY NEWS
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The first crewed launch of Boeing's Starliner spaceship to the International Space Station has been pushed to May 17 after engineers said a faulty rocket valve needs to be replaced for the high-stakes mission, NASA said. The test has already faced years of delays and comes at a challenging time for Boeing, as a safety crisis engulfs the century-old aerospace titan's commercial aviation arm. Astronauts Butch Wilmore and Suni Williams were strapped into their seats preparing for liftoff on Monday night when the call for a "scrub" came. Ground teams had heard buzzing from a valve that regulates liquid oxygen pressure on the Atlas V rocket meant to propel Starliner into orbit.
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Struggling foreign automakers in China are looking for help from local tech firms to try to stay competitive in the world's biggest electric car market, where shiny smart screens, assisted driving and sophisticated map technology are in high demand. At the recent Beijing Auto Show, China's biggest car expo, a number of foreign firms announced tech partnerships – from Nissan joining forces with Baidu to Toyota signing a cooperation agreement with Tencent. The two Japanese companies are among a number of traditional auto juggernauts, once dominant in China, that are now struggling to keep pace with a new generation of local EV startups.
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Rivian Automotive said its results for the first quarter "set a strong foundation for the remainder of the year". The Irvine, California-based electric vehicle maker said revenue jumped 82% to USD1.20 billion in the first quarter of 2024, from USD661 million the previous year. Rivian said its net loss, however, widened from USD1.35 billion to USD1.45 billion. Net loss per share widened from USD1.45 to USD1.48. Total operating expenses rose 6.6% to USD957 million from USD898 million. "As previously announced, the company produced 13,980 vehicles and delivered 13,588, exceeding its outlook with a respective 49% and 71% increase over the same period last year," Rivian noted. Chief Executive Officer RJ Scaringe commented: "First-quarter results exceeded our outlook and set a strong foundation for the remainder of the year as we focus on continued demand generation, delivering cost and plant efficiency improvements, advancing R2 development, and driving towards profitability.
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Electronic Arts forecast net income would fall in the new financial year after disclosing sales and profits both rose in the year just finished. In the year to March 31, the California-based video games company said net income rose 58% to USD1.27 billion from USD802 million a year prior. Diluted earnings per share climbed 63% to USD4.68 from USD2.88. The improved profitability came on the back of a modest 1.7% increase in revenue to USD7.56 billion, up from USD7.43 billion a year prior. In the fourth quarter, Electronic Arts swung to net income of USD182 million compared to a USD12 million loss a year prior. Diluted EPS was USD0.67 compared to LPS of USD0.04 before. Revenue edged down to USD1.78 billion from USD1.87 billion. Electronic Arts also authorized a new stock repurchase program of USD5 billion over three years. Looking ahead to the financial year to March 31, 2025, Electronic Arts forecast revenue between USD7.10 billion to USD7.50 billion and net income between USD904 million to USD1.09 billion.
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Fresenius raised its full-year outlook due to the "excellent" first quarter and a better than originally expected operating performance for the remainder of financial 2024. It now expects organic group revenue growth between 4% to 7% for financial 2024, up from 3% to 6% previously. Group earnings before interest and tax at constant currency are now expected to grow between 6% and 10%, previously 4% to 8%. The increase is based on improved business prospects for Fresenius Kabi. Fresenius Kabi now expects organic revenue growth in the mid to high single-digit percentage range for 2024, previously mid single-digit percentage range. The EBIT margin is now expected to between 15% and 16%, previously around 15%.
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By Elizabeth Winter, Alliance News senior correspondent
Comments and questions to newsroom@alliancenews.com
Copyright 2024, Alliance News
GLOBAL BRIEFING: US halted weapons shipment to Israel over Rafah
(Alliance News) - Stocks in Europe are called mixed, while Asian markets trend lower amid a lack of macro catalysts, following a muted close on Wall Street.
Here is what you need to know before the European market open on Wednesday:
----------
MARKETS
----------
CAC 40: called up 5.4 points, 0.1%, at 8,081.08
DAX 40: called down 5.9 points at 18,424.15
FTSE 100: called up 17.0 points, 0.2% at 8,330.67
----------
Hang Seng: down 0.4% at 18,410.20
Nikkei 225: down 1.4% at 38,290.70
S&P/ASX 200: up 0.1% at 7,799.00
----------
Dow: closed up 31.99 points, 0.1%, at 38,884.26
S&P 500: closed up 0.1% at 5,187.70
Nasdaq Composite: closed 0.1% at 16,332.56
----------
EUR: down at USD1.0741 (USD1.0774)
GBP: down at USD1.2485 (USD1.2542)
USD: up at JPY155.12 (JPY154.49)
GOLD: up slightly at USD2,317.44 per ounce (USD2,315.72)
OIL (Brent): flat at USD82.84 a barrel (USD82.90)
(changes since previous London equities close)
----------
ECONOMIC CALENDAR
----------
08:00 CEST Germany industrial production
11:00 IST Ireland industrial production
10:00 CEST Italy retail sales
09:00 CEST Spain industrial production
10:00 EDT US wholesale inventories
11:00 EDT US Federal Reserve Vice Chair Philip Jefferson speaks
13:30 EDT US Federal Reserve Governor Lisa Cook speaks
----------
TOP ECONOMIC NEWS
----------
The White House said that key ally Israel must reopen Gaza's Rafah border crossing with Egypt, while expressing hope that a ceasefire deal with Hamas was within reach. Israel sent tanks into the southern Gaza city of Rafah and seized control of the crossing, a key aid passage, while warning it will deepen its operation if truce talks fail to secure the release of hostages held by Hamas. "The crossings that have been closed need to be reopened, it is unacceptable for them to be closed," White House Press Secretary Karine Jean-Pierre told a briefing. "We believe Rafah border crossing should be quickly reopened for the movement of humanitarian assistance," Jean-Pierre added.
----------
The US halted a shipment of bombs to Israel last week after it failed to address Washington's concerns over plans to invade the southern Gaza city of Rafah, a senior US official said. "We have paused one shipment of weapons last week. It consists of 1,800 2,000-lb (907 kg) bombs and 1,700 500-lb (226 kg) bombs," the senior official in President Joe Biden's administration said on condition of anonymity. "We have not made a final determination on how to proceed with this shipment," the official added. Biden's administration made the decision when it appeared Israel was on the verge of a major ground operation into Rafah, which Washington has strongly opposed.
----------
A Florida judge indefinitely postponed Donald Trump's criminal trial over his alleged mishandling of classified documents, making it unlikely the case will be heard before the November presidential election. The former president had been scheduled to go on trial on May 20 but District Judge Aileen Cannon said that was not possible because of the number of pre-trial motions before the court. Cannon, a Trump appointee, did not set a new date for the start of the federal trial. Trump is currently on trial in New York on state charges of falsifying business records to pay hush money to a porn star ahead of the 2016 presidential election.
----------
Chinese President Xi Jinping will hold talks with his Serbian counterpart in Belgrade on Wednesday, as Beijing seeks to deepen its political and economic ties with friendlier countries in Europe. China has poured billions into Serbia and neighbouring Balkan countries, particularly into mining and manufacturing, and last year Beijing and Belgrade signed a free trade agreement. After meeting with President Aleksandar Vucic, Xi will go to Hungary, where China has invested heavily in vast battery and electric vehicle manufacturing plants.
----------
The rate of UK hospitality business closures slowed down over the first months of 2024 as businesses saw some rampant cost inflation ease back. However, one in 40 pubs, restaurants, bars and hotels have still shut their doors for good over the past 12 months, according to industry data. Fresh figures from CGA by NIQ and AlixPartners showed that 368 hospitality sites, or the equivalent of four a day, closed in the first quarter of the year. The data meant that there were 98,745 hospitality firms across the UK at the end of March, dropping by more than 2,000 since the same time a year earlier.
----------
COMPANY CALENDAR
----------
Advanced Micro Devices Inc - AGM
Ahold Delhaize NV - Q1 Results
Airbnb Inc - Q1 Results
Allianz SE - AGM
Anheuser-Busch InBev NV - Q1 Results
Bechtle AG - Q1 Results
BMW AG - Q1 Results
Continental AG - Q1 Results
Evonik Industries AG - Q1 Results
GEA Group AG - Q1 Results
Gilead Sciences Inc - AGM
Haleon PLC - AGM
Henkel AG & Co KGaA - Q1 Results
Itochu Corp - Full Year Results
Mercedes-Benz Group AG - AGM
MTU Aero Engines AG - AGM
Munich Re AG - Q1 Results
Pershing Square Holdings Ltd - AGM
Rentokil Initial PLC - AGM
Stabilus SE - Half Year Results
The Trade Desk Inc - Q1 Results
Toyota Motor Corp - Full Year Results
Uber Technologies Inc - Q1 Results
----------
TOP COMPANY NEWS
----------
The first crewed launch of Boeing's Starliner spaceship to the International Space Station has been pushed to May 17 after engineers said a faulty rocket valve needs to be replaced for the high-stakes mission, NASA said. The test has already faced years of delays and comes at a challenging time for Boeing, as a safety crisis engulfs the century-old aerospace titan's commercial aviation arm. Astronauts Butch Wilmore and Suni Williams were strapped into their seats preparing for liftoff on Monday night when the call for a "scrub" came. Ground teams had heard buzzing from a valve that regulates liquid oxygen pressure on the Atlas V rocket meant to propel Starliner into orbit.
----------
Struggling foreign automakers in China are looking for help from local tech firms to try to stay competitive in the world's biggest electric car market, where shiny smart screens, assisted driving and sophisticated map technology are in high demand. At the recent Beijing Auto Show, China's biggest car expo, a number of foreign firms announced tech partnerships – from Nissan joining forces with Baidu to Toyota signing a cooperation agreement with Tencent. The two Japanese companies are among a number of traditional auto juggernauts, once dominant in China, that are now struggling to keep pace with a new generation of local EV startups.
----------
Rivian Automotive said its results for the first quarter "set a strong foundation for the remainder of the year". The Irvine, California-based electric vehicle maker said revenue jumped 82% to USD1.20 billion in the first quarter of 2024, from USD661 million the previous year. Rivian said its net loss, however, widened from USD1.35 billion to USD1.45 billion. Net loss per share widened from USD1.45 to USD1.48. Total operating expenses rose 6.6% to USD957 million from USD898 million. "As previously announced, the company produced 13,980 vehicles and delivered 13,588, exceeding its outlook with a respective 49% and 71% increase over the same period last year," Rivian noted. Chief Executive Officer RJ Scaringe commented: "First-quarter results exceeded our outlook and set a strong foundation for the remainder of the year as we focus on continued demand generation, delivering cost and plant efficiency improvements, advancing R2 development, and driving towards profitability.
----------
Electronic Arts forecast net income would fall in the new financial year after disclosing sales and profits both rose in the year just finished. In the year to March 31, the California-based video games company said net income rose 58% to USD1.27 billion from USD802 million a year prior. Diluted earnings per share climbed 63% to USD4.68 from USD2.88. The improved profitability came on the back of a modest 1.7% increase in revenue to USD7.56 billion, up from USD7.43 billion a year prior. In the fourth quarter, Electronic Arts swung to net income of USD182 million compared to a USD12 million loss a year prior. Diluted EPS was USD0.67 compared to LPS of USD0.04 before. Revenue edged down to USD1.78 billion from USD1.87 billion. Electronic Arts also authorized a new stock repurchase program of USD5 billion over three years. Looking ahead to the financial year to March 31, 2025, Electronic Arts forecast revenue between USD7.10 billion to USD7.50 billion and net income between USD904 million to USD1.09 billion.
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Fresenius raised its full-year outlook due to the "excellent" first quarter and a better than originally expected operating performance for the remainder of financial 2024. It now expects organic group revenue growth between 4% to 7% for financial 2024, up from 3% to 6% previously. Group earnings before interest and tax at constant currency are now expected to grow between 6% and 10%, previously 4% to 8%. The increase is based on improved business prospects for Fresenius Kabi. Fresenius Kabi now expects organic revenue growth in the mid to high single-digit percentage range for 2024, previously mid single-digit percentage range. The EBIT margin is now expected to between 15% and 16%, previously around 15%.
----------
By Elizabeth Winter, Alliance News senior correspondent
Comments and questions to newsroom@alliancenews.com
Copyright 2024, Alliance News