(Alliance News) - European markets are called higher, amid solid performances in Asia and New York, following well-received US corporate earnings.
Here is what you need to know before the European market open on Wednesday:
----------
MARKETS
----------
CAC 40: called up 25.2 points, 0.3%, at 8,130.98
DAX 40: called up 71.5 points, 0.4%, at 18,209.15
FTSE 100: called up 50.6 points, 0.6%, at 8,095.41
----------
Hang Seng: up 1.7% at 17,110.21
Nikkei 225: up 2.3% at 38,411.91
S&P/ASX 200: up 0.1% at 7,691.90
----------
Dow: closed up 263.71 points, 0.7%, to 38,503.69
S&P 500: closed up 1.2% at 5,070.55
Nasdaq Composite: closed up 1.6% at 15,696.64
----------
EUR: up at USD1.0707 (USD1.0699)
GBP: up at USD1.2456 (USD1.2440)
USD: up at JPY154.86 (JPY154.77)
GOLD: up at USD2,328.0 per ounce (USD2,322.78)
OIL (Brent): up at USD88.42 a barrel (USD87.76)
(changes since previous London equities close)
----------
ECONOMIC CALENDAR
----------
08:30 EDT Canada retail sales
10:00 CEST Germany Ifo business climate
10:00 CEST Italy consumer confidence
10:00 CEST Switzerland economic sentiment index
08:30 EDT US durable goods orders
10:30 EDT US EIA Crude oil stocks
----------
TOP ECONOMIC NEWS
----------
Australia's consumer price inflation ticked up slightly in March, according to figures from the Australian Bureau of Statistics. The consumer price index rose 3.5% annually in March, while market consensus as cited by FXStreet had predicted it would remain unchanged from February's 3.4% rise. Among the most significant contributors to the March annual increase were housing prices, which rose 5.2%, compared to 4.6% in February. Meanwhile, other categories saw a slightly slower pace of price rises, with food & non-alcoholic beverages up 3.5%, insurance & financial services rising 8.2% year-on-year, while alcohol & tobacco rose 6.1%, keeping pace with February.
----------
US President Joe Biden pledged to quickly sign a USD61 billion aid package for Ukraine after Congress gave its final approval Tuesday night, saying delivery of the much-needed aid would begin this week. "I will sign this bill into law and address the American people as soon as it reaches my desk tomorrow so we can begin sending weapons and equipment to Ukraine this week," said Biden, who added that the bill's passage proved America stands "resolutely for democracy and freedom, and against tyranny and oppression." Days after the Republican-led House of Representatives cleared the aid, part of a massive USD95 billion in assistance to allies including Israel and Taiwan – the Democratic-controlled Senate followed suit, passing the broader package with bipartisan support on a 79-18 vote.
----------
Russia will expand its aerial bombardment of Ukraine, Defence Minister Sergei Shoigu said, days after billions in new US military aid for Kyiv were approved in the US House of Representatives. "We will increase the intensity of strikes against logistics centres and warehouses for Western weapons," Shoigu said at a meeting of high-ranking military officials in Moscow. Russia has been systematically attacking key electricity, energy and water infrastructure in Ukraine, with Kyiv's air defence systems running low on ammunition in recent weeks.
----------
The US Senate approved legislation requiring the wildly popular social media app TikTok to be divested from its Chinese parent company ByteDance or be shut out of the American market. The measure was part of a USD95 billion foreign aid package, including military assistance to Ukraine, Israel and Taiwan, which has now cleared Congress and heads to Biden's desk. US and other Western officials have voiced alarm over the popularity of TikTok with young people, alleging it allows Beijing to collect data and spy on users. It has 170 million users in the US alone. These critics also say TikTok is subservient to Beijing and a conduit to spread propaganda. China and the company strongly deny these claims.
----------
US Secretary of State Antony Blinken was due in China on Wednesday as the US ramps up pressure on its main rival over its support for Russia, while seeking to manage tensions between the two powers. The US diplomat will meet China's top brass on Friday in Beijing, where he is also expected to plead for continued restraint as Taiwan inaugurates a new leader and to raise US concerns on Chinese trade practices, a vital issue for President Joe Biden in an election year. But Blinken is also in China in a bid to stabilise US ties with Beijing, with tensions between the world's two largest economies palpably eased since his last visit in June.
----------
COMPANY CALENDAR
----------
Air Liquide SA - Q1 Results
Align Technology Inc - Q1 Results
Anheuser-Busch InBev NV - AGM
ASML Holdings NV - AGM
AT&T Inc - Q1 Results
Biogen Inc - Q1 Results
Boeing Co - Q1 Results
British American Tobacco PLC - AGM
Carrefour SA - Trading Statement
Croda International PLC - AGM
Eni Spa - Q1 Results
Entain PLC - AGM
Eurofins Scientific SE - Q1 Results
Evotec SE - Full Year Results
Fresnillo PLC - Trading Statement
Hong Kong Exchanges & Clearing Ltd - Q1 Results
Iberdrola SA - Q1 Results
IBM Corp - Q1 Results
Keyence Corp - Full Year Results
Lloyds Banking Group PLC - Q1 Results
Meta Platforms Inc - Q1 Results
Moncler Spa - Q1 Results
Old Dominion Freight Line Inc - Q1 Results
Orange SA - Q1 Results
O'Reilly Automotive Inc - Q1 Results
Roche Holding AG - Q1 Results
Thermo Fisher Scientific Inc - Q1 Results
Woodside Energy Group Ltd - AGM
----------
TOP COMPANY NEWS
----------
Tesla pledged to launch more affordable vehicles after reporting a hefty fall in first quarter sales and profit as lower selling prices and higher costs weighed. The electric vehicle maker, run by Elon Musk, said GAAP net income tumbled 53% to USD1.13 billion in the first three months of 2024, down from USD2.51 billion a year prior. Diluted GAAP earnings per share also fell 53% to USD0.34 from USD0.73. Tesla said profitability was knocked by reduced vehicle average selling prices, higher costs partly driven by artificial intelligence and other R&D projects, the cost of Cybertruck production ramp and a decline in vehicle deliveries. First quarter revenue slid 8.7% to USD21.30 billion from USD23.33 billion. "We experienced numerous challenges in the first quarter, from the Red Sea conflict and the arson attack at Gigafactory Berlin, to the gradual ramp of the updated Model 3 in Fremont," Tesla commented. Tesla said that it was accelerating the launch of "new vehicles, including more affordable models," that will "be able to be produced on the same manufacturing lines" as Tesla's current lineup. Shares in Tesla jumped 13% in after-hours trading in New York.
----------
Visa released its results for the second quarter of its financial year, demonstrating solid improvements on the previous year's performance. For the three months ended March 31, the California-based payment card services company reported USD8.78 billion in net revenue, up 9.9% from USD7.99 billion a year prior. For the half-year, revenue was USD17.41 billion, up 9.3% from USD15.92 billion in the first half of financial 2023. Net income was up 9.5% to USD4.66 billion for the quarter from USD4.26 billion. For the half, the figure rose 13% to USD9.55 billion from USD8.44 billion. Total operating expenses were up 29% to USD3.42 billion for the quarter from USD2.65 billion, and up 11% for the half to USD6.10 billion from USD5.50 billion.
----------
Texas Instruments said revenue and income had slipped in the first quarter from a year before. The Dallas-based semiconductor company reported USD3.66 billion in revenue for the three months ended March 31, down 16% from USD4.38 billion a year prior. Net income was USD1.11 billion for the period, down 35% from USD1.71 billion. Operating profit sank 34% to USD1.29 billion from USD1.93 billion. Earnings per share dropped 35% to USD1.20 from USD1.85. The company declared USD1.30 in dividends per share for the period, increased from USD1.24 in the first quarter of 2023.
----------
Starbucks is set to hold talks with labour representatives from stores that have voted to unionize in a key step towards reaching contracts, both sides said. The labour group, Workers United, plans to send representatives of 425 stores that have voted to unionize in the US to the meetings beginning Wednesday, the group said. The goal is to establish a "foundational framework" on key issues such as wages, scheduling policy and access to health care, the union said. The talks "mark a major step forward towards establishing strong contracts for more than 10,000 and growing Starbucks Workers United partners who have won their union, and with it, a seat at the table to build a stronger Starbucks," the union said.
----------
Enphase Energy swung into the red in the first quarter of 2024 as sales plunged. The California-based energy technology company said revenue in the first three months of 2024 fell to USD263.3 million from USD726.0 million a year prior. Net loss totalled USD16.1 million, swinging from net income of USD146.8 million before. Basic loss per share was USD0.12 compared to earnings per share of USD1.07. Compared to the fourth quarter revenue fell from USD302.6 million reflecting a further softening in US demand. Looking ahead, Enphase estimates second quarter revenue within a range of USD290.0 million to USD330.0 million, which includes shipments of 100 to 120 megawatt hours of IQ batteries.
----------
Kering said that weak China sales and a poor performance from Gucci had hampered its first quarter results, as the company warned of an expected drop in its first half profit. Kering, the Paris-based owner of luxury brands including Gucci, Balenciaga and Yves Saint Laurent, reported an 11% drop in its first quarter sales to EUR4.50 billion from EUR5.08 billion a year prior. Its top line was especially hurt by Gucci's performance, as the fashion house's revenue sank 21% to EUR2.08 billion from EUR2.62 billion in the first quarter of 2023. YSL's revenue was down 8.2% to EUR740 million from EUR806 million. Bottega Veneta delivered EUR388 million in revenue for the quarter, down 1.8% from EUR395 million, while Kering's other houses generated EUR824 million, a 7.4% slide from EUR890 million. Kering's Eyewere & Corporate business, however, achieved EUR536 million in revenue, up 24% from EUR433 million a year before.
----------
Ithaca Energy said Eni SpA would take a large stake in the company as part of a "transformational combination" involving the two parties. Ithaca, a leading independent oil and gas operator in the UK North Sea, said it would combine with Eni's UK upstream assets. In return, Eni, the Rome-based energy company would take a 38.5% interest in Ithaca. Ithaca said the deal would create a continental shelf powerhouse producing 100,000 to 110,000 barrels of oil equivalent per day. The deal is expected to be accretive per share to earnings before interest, taxes, depreciation, amortisation, and exploration expense, providing a platform for enhanced shareholder returns. Ithaca highlighted the potential for "substantial" cost savings through operational and financial synergies. Ithaca said the combination would be "highly" cash-generative with an ambition for up to USD500 million total dividends each year in 2024 and 2025.
----------
Deutsche Boerse reported significant increases in revenue and earnings for the first quarter, increasing the company's confidence in its growth forecast for the full year. For the three months ended March 31, the Frankfurt-based stock exchange operator reported an increase of 16% in revenue to EUR1.73 billion from EUR1.48 billion in the first quarter of 2023. Sales revenue was up 16% to EUR1.45 billion from EUR1.25 billion. DB credited this revenue increase to organic growth of 6%, as well as the consolidation of SimCorp AS, a Copenhagen-based financial services and software company which DB acquired in the fourth quarter of 2023. Earnings before interest, tax, depreciation and amortisation rose 13% to EUR875.3 million from EUR772.1 million. Net profit for the period was up 6.2% to EUR524.0 million from EUR493.3 million.
----------
By Emma Curzon, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024, Alliance News
GLOBAL BRIEFING: Stocks called higher; Australia's inflation edges up
(Alliance News) - European markets are called higher, amid solid performances in Asia and New York, following well-received US corporate earnings.
Here is what you need to know before the European market open on Wednesday:
----------
MARKETS
----------
CAC 40: called up 25.2 points, 0.3%, at 8,130.98
DAX 40: called up 71.5 points, 0.4%, at 18,209.15
FTSE 100: called up 50.6 points, 0.6%, at 8,095.41
----------
Hang Seng: up 1.7% at 17,110.21
Nikkei 225: up 2.3% at 38,411.91
S&P/ASX 200: up 0.1% at 7,691.90
----------
Dow: closed up 263.71 points, 0.7%, to 38,503.69
S&P 500: closed up 1.2% at 5,070.55
Nasdaq Composite: closed up 1.6% at 15,696.64
----------
EUR: up at USD1.0707 (USD1.0699)
GBP: up at USD1.2456 (USD1.2440)
USD: up at JPY154.86 (JPY154.77)
GOLD: up at USD2,328.0 per ounce (USD2,322.78)
OIL (Brent): up at USD88.42 a barrel (USD87.76)
(changes since previous London equities close)
----------
ECONOMIC CALENDAR
----------
08:30 EDT Canada retail sales
10:00 CEST Germany Ifo business climate
10:00 CEST Italy consumer confidence
10:00 CEST Switzerland economic sentiment index
08:30 EDT US durable goods orders
10:30 EDT US EIA Crude oil stocks
----------
TOP ECONOMIC NEWS
----------
Australia's consumer price inflation ticked up slightly in March, according to figures from the Australian Bureau of Statistics. The consumer price index rose 3.5% annually in March, while market consensus as cited by FXStreet had predicted it would remain unchanged from February's 3.4% rise. Among the most significant contributors to the March annual increase were housing prices, which rose 5.2%, compared to 4.6% in February. Meanwhile, other categories saw a slightly slower pace of price rises, with food & non-alcoholic beverages up 3.5%, insurance & financial services rising 8.2% year-on-year, while alcohol & tobacco rose 6.1%, keeping pace with February.
----------
US President Joe Biden pledged to quickly sign a USD61 billion aid package for Ukraine after Congress gave its final approval Tuesday night, saying delivery of the much-needed aid would begin this week. "I will sign this bill into law and address the American people as soon as it reaches my desk tomorrow so we can begin sending weapons and equipment to Ukraine this week," said Biden, who added that the bill's passage proved America stands "resolutely for democracy and freedom, and against tyranny and oppression." Days after the Republican-led House of Representatives cleared the aid, part of a massive USD95 billion in assistance to allies including Israel and Taiwan – the Democratic-controlled Senate followed suit, passing the broader package with bipartisan support on a 79-18 vote.
----------
Russia will expand its aerial bombardment of Ukraine, Defence Minister Sergei Shoigu said, days after billions in new US military aid for Kyiv were approved in the US House of Representatives. "We will increase the intensity of strikes against logistics centres and warehouses for Western weapons," Shoigu said at a meeting of high-ranking military officials in Moscow. Russia has been systematically attacking key electricity, energy and water infrastructure in Ukraine, with Kyiv's air defence systems running low on ammunition in recent weeks.
----------
The US Senate approved legislation requiring the wildly popular social media app TikTok to be divested from its Chinese parent company ByteDance or be shut out of the American market. The measure was part of a USD95 billion foreign aid package, including military assistance to Ukraine, Israel and Taiwan, which has now cleared Congress and heads to Biden's desk. US and other Western officials have voiced alarm over the popularity of TikTok with young people, alleging it allows Beijing to collect data and spy on users. It has 170 million users in the US alone. These critics also say TikTok is subservient to Beijing and a conduit to spread propaganda. China and the company strongly deny these claims.
----------
US Secretary of State Antony Blinken was due in China on Wednesday as the US ramps up pressure on its main rival over its support for Russia, while seeking to manage tensions between the two powers. The US diplomat will meet China's top brass on Friday in Beijing, where he is also expected to plead for continued restraint as Taiwan inaugurates a new leader and to raise US concerns on Chinese trade practices, a vital issue for President Joe Biden in an election year. But Blinken is also in China in a bid to stabilise US ties with Beijing, with tensions between the world's two largest economies palpably eased since his last visit in June.
----------
COMPANY CALENDAR
----------
Air Liquide SA - Q1 Results
Align Technology Inc - Q1 Results
Anheuser-Busch InBev NV - AGM
ASML Holdings NV - AGM
AT&T Inc - Q1 Results
Biogen Inc - Q1 Results
Boeing Co - Q1 Results
British American Tobacco PLC - AGM
Carrefour SA - Trading Statement
Croda International PLC - AGM
Eni Spa - Q1 Results
Entain PLC - AGM
Eurofins Scientific SE - Q1 Results
Evotec SE - Full Year Results
Fresnillo PLC - Trading Statement
Hong Kong Exchanges & Clearing Ltd - Q1 Results
Iberdrola SA - Q1 Results
IBM Corp - Q1 Results
Keyence Corp - Full Year Results
Lloyds Banking Group PLC - Q1 Results
Meta Platforms Inc - Q1 Results
Moncler Spa - Q1 Results
Old Dominion Freight Line Inc - Q1 Results
Orange SA - Q1 Results
O'Reilly Automotive Inc - Q1 Results
Roche Holding AG - Q1 Results
Thermo Fisher Scientific Inc - Q1 Results
Woodside Energy Group Ltd - AGM
----------
TOP COMPANY NEWS
----------
Tesla pledged to launch more affordable vehicles after reporting a hefty fall in first quarter sales and profit as lower selling prices and higher costs weighed. The electric vehicle maker, run by Elon Musk, said GAAP net income tumbled 53% to USD1.13 billion in the first three months of 2024, down from USD2.51 billion a year prior. Diluted GAAP earnings per share also fell 53% to USD0.34 from USD0.73. Tesla said profitability was knocked by reduced vehicle average selling prices, higher costs partly driven by artificial intelligence and other R&D projects, the cost of Cybertruck production ramp and a decline in vehicle deliveries. First quarter revenue slid 8.7% to USD21.30 billion from USD23.33 billion. "We experienced numerous challenges in the first quarter, from the Red Sea conflict and the arson attack at Gigafactory Berlin, to the gradual ramp of the updated Model 3 in Fremont," Tesla commented. Tesla said that it was accelerating the launch of "new vehicles, including more affordable models," that will "be able to be produced on the same manufacturing lines" as Tesla's current lineup. Shares in Tesla jumped 13% in after-hours trading in New York.
----------
Visa released its results for the second quarter of its financial year, demonstrating solid improvements on the previous year's performance. For the three months ended March 31, the California-based payment card services company reported USD8.78 billion in net revenue, up 9.9% from USD7.99 billion a year prior. For the half-year, revenue was USD17.41 billion, up 9.3% from USD15.92 billion in the first half of financial 2023. Net income was up 9.5% to USD4.66 billion for the quarter from USD4.26 billion. For the half, the figure rose 13% to USD9.55 billion from USD8.44 billion. Total operating expenses were up 29% to USD3.42 billion for the quarter from USD2.65 billion, and up 11% for the half to USD6.10 billion from USD5.50 billion.
----------
Texas Instruments said revenue and income had slipped in the first quarter from a year before. The Dallas-based semiconductor company reported USD3.66 billion in revenue for the three months ended March 31, down 16% from USD4.38 billion a year prior. Net income was USD1.11 billion for the period, down 35% from USD1.71 billion. Operating profit sank 34% to USD1.29 billion from USD1.93 billion. Earnings per share dropped 35% to USD1.20 from USD1.85. The company declared USD1.30 in dividends per share for the period, increased from USD1.24 in the first quarter of 2023.
----------
Starbucks is set to hold talks with labour representatives from stores that have voted to unionize in a key step towards reaching contracts, both sides said. The labour group, Workers United, plans to send representatives of 425 stores that have voted to unionize in the US to the meetings beginning Wednesday, the group said. The goal is to establish a "foundational framework" on key issues such as wages, scheduling policy and access to health care, the union said. The talks "mark a major step forward towards establishing strong contracts for more than 10,000 and growing Starbucks Workers United partners who have won their union, and with it, a seat at the table to build a stronger Starbucks," the union said.
----------
Enphase Energy swung into the red in the first quarter of 2024 as sales plunged. The California-based energy technology company said revenue in the first three months of 2024 fell to USD263.3 million from USD726.0 million a year prior. Net loss totalled USD16.1 million, swinging from net income of USD146.8 million before. Basic loss per share was USD0.12 compared to earnings per share of USD1.07. Compared to the fourth quarter revenue fell from USD302.6 million reflecting a further softening in US demand. Looking ahead, Enphase estimates second quarter revenue within a range of USD290.0 million to USD330.0 million, which includes shipments of 100 to 120 megawatt hours of IQ batteries.
----------
Kering said that weak China sales and a poor performance from Gucci had hampered its first quarter results, as the company warned of an expected drop in its first half profit. Kering, the Paris-based owner of luxury brands including Gucci, Balenciaga and Yves Saint Laurent, reported an 11% drop in its first quarter sales to EUR4.50 billion from EUR5.08 billion a year prior. Its top line was especially hurt by Gucci's performance, as the fashion house's revenue sank 21% to EUR2.08 billion from EUR2.62 billion in the first quarter of 2023. YSL's revenue was down 8.2% to EUR740 million from EUR806 million. Bottega Veneta delivered EUR388 million in revenue for the quarter, down 1.8% from EUR395 million, while Kering's other houses generated EUR824 million, a 7.4% slide from EUR890 million. Kering's Eyewere & Corporate business, however, achieved EUR536 million in revenue, up 24% from EUR433 million a year before.
----------
Ithaca Energy said Eni SpA would take a large stake in the company as part of a "transformational combination" involving the two parties. Ithaca, a leading independent oil and gas operator in the UK North Sea, said it would combine with Eni's UK upstream assets. In return, Eni, the Rome-based energy company would take a 38.5% interest in Ithaca. Ithaca said the deal would create a continental shelf powerhouse producing 100,000 to 110,000 barrels of oil equivalent per day. The deal is expected to be accretive per share to earnings before interest, taxes, depreciation, amortisation, and exploration expense, providing a platform for enhanced shareholder returns. Ithaca highlighted the potential for "substantial" cost savings through operational and financial synergies. Ithaca said the combination would be "highly" cash-generative with an ambition for up to USD500 million total dividends each year in 2024 and 2025.
----------
Deutsche Boerse reported significant increases in revenue and earnings for the first quarter, increasing the company's confidence in its growth forecast for the full year. For the three months ended March 31, the Frankfurt-based stock exchange operator reported an increase of 16% in revenue to EUR1.73 billion from EUR1.48 billion in the first quarter of 2023. Sales revenue was up 16% to EUR1.45 billion from EUR1.25 billion. DB credited this revenue increase to organic growth of 6%, as well as the consolidation of SimCorp AS, a Copenhagen-based financial services and software company which DB acquired in the fourth quarter of 2023. Earnings before interest, tax, depreciation and amortisation rose 13% to EUR875.3 million from EUR772.1 million. Net profit for the period was up 6.2% to EUR524.0 million from EUR493.3 million.
----------
By Emma Curzon, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024, Alliance News