- Bridgette Randall
- 08 Feb, 2023
- Frankfurt
ABN Amro Bank NV jumped 11.5% to €16.30 after the Dutch bank announced a stock repurchase program.
Operating income in the fourth quarter declined 19% to €1.86 billion from €2.28 billion a year ago.
Net income in the quarter dropped 36% to €354 million from €552 million and diluted earnings per share declined to 37 euro cents from 56 euro cents a year ago.
The Dutch bank proposed to pay 67 cents per share as a final dividend equivalent to €601 million to shareholders on record on April 24 and payable on May 17, reflecting a total dividend of 99 cents for 2022.
The company proposed a new stock repurchase plan of €500 million commencing from February 9th and ending no later than June 2023.
Ashmore Group Plc rose 2.4% to 279.51 pence after the UK-based asset manager reported a sharply lower half-year profit.
In the first-half ending in December. assets under management declined 34% to $57 billion from $87 million in the previous year.
Adjusted net revenue in the first-half declined 22% to £107.7 million from £138.2 million a year ago.
After-tax profit declined 54% to £44.3 million from £95.4 million and earnings per share declined 6.1 pence from 13.3 pence in the previous year.
Smurfit Kappa Group fell 2.8% to 3,389.50 pence after the paper-based packaging company reported an increase in profit in 2022 but unit volumes declined.
Revenue in the second-half increased 18% to €6.43 billion and pre-tax income increased 5% to €524 million from €500 million a year ago.
Full-year 2022 revenue increased 27% to €12.8 billion and pre-tax increased 42% to €1.29 billion from €913 million a year ago.
Earnings per share rose to €3.65 from €2.63 in the previous year.
The paper company also reported a decline in box volume in 2022 by less than 2% following higher prices and tough comparison in the previous year.
Societe Generale SA declined 4.7% to €26.71 after the French bank said net income in the fourth quarter declined 35.1% to Є1.16 billion from Є1.79 billion in the previous year.
TotalEnergies SE declined 1.2% to €56.83 after the French energy giant said earnings in the fourth quarter dropped 44% to $3.3 billion.
For the year 2022, net income rose 28% to $20.5 billion.
TotalEnergies reiterated its cash allocation policy and said plans to return about 37% of cash flow to shareholders, invest 16.3 billion or 36.3% and $12.2 billion or 27% of cash flow to lower debt.
The energy company after the deleveraging will lower its debt-to-capital ratio to 7%.
Hydrocarbon (oil and gas) production in the fourth quarter rose 5% from the third quarter and declined 1% from a year ago to 2.8 million barrels of equivalent oil per day.
In 2022, hydrocarbon production declined 2% to 2.765 million barrel of equivalent oil per day.
- Bridgette Randall
- 08 Feb, 2023
- Frankfurt
European markets rebounded and the euro held stable after Fed Chair Jerome Powell sounded less hawkish in recent comments on Tuesday.
Cautious trading supported tentative market rebound and investors reacted to a fresh batch of corporate earnings.
French Employment Growth Paused In Fourth Quarter
Private payroll employment was stable in the fourth quarter, following a 0.6% rise in the previous quarter, the statistical office INSEE said Wednesday.
Employment was stable after seven consecutive quarters of increase.
Net salaried job additions increased 3,000 in the fourth quarter following 119,100 jobs or 0.6% in the preceding quarter.
Private payroll employment surpassed the level seen at the end of 2021 by 1.5% or 304,900 jobs.
Temporary jobs increased 0.8% or 6,500 jobs after 1.9% or 14,900 in the previous quarter.
The temporary employment level is 4.5% higher than its pre-crisis level but 1.6% lower than its end-2021 level.
Italian Retail Sales Declined In December
Italian retail sales declined 0.2% in December on the month, reversing the 0.8% rise in November, the statistical office ISTAT data showed on Wednesday.
Retail sales rose 3.4% in December from a year ago, slower than 4.4% pace in November but sales have been rising since March 2021.
Overall 2022 retail sales value increased 4.6% from the previous year but sales volume fell 0.8% on a 4.2% drop in food goods, by a 1.9% rise in non-food products.
European Indexes
The DAX index increased 0.8% to 15,446.28, the CAC-40 index rose 0.2% to 7,145.44 and the FTSE 100 index added 0.5% to 7,906.91.
The euro inched lower to $1.072, the British pound edged down to $1.205 and the Swiss franc traded near 92.12 U.S. cents.
Brent crude oil rose 28 cents to $83.97 a barrel and the Dutch TTF Spot Price decreased 3.4% to 53.50 per MWh.
Europe Stock Movers
ABN Amro Bank NV jumped 11.5% to €16.30 after the Dutch bank announced a stock repurchase program.
Operating income in the fourth quarter declined 19% to €1.86 billion from €2.28 billion a year ago.
Net income in the quarter dropped 36% to €354 million from €552 million and diluted earnings per share declined to 37 euro cents from 56 euro cents a year ago.
The Dutch bank proposed to pay 67 cents per share as a final dividend equivalent to €601 million to shareholders on record on April 24 and payable on May 17, reflecting a total dividend of 99 cents for 2022.
The company proposed a new stock repurchase plan of €500 million commencing from February 9th and ending no later than June 2023.
Societe Generale SA declined 4.7% to €26.71 after the French bank said net income in the fourth quarter declined 35.1% to Є1.16 billion from Є1.79 billion in the previous year.
TotalEnergies SE declined 1.2% to €56.83 after the French energy giant said earnings in the fourth quarter dropped 44% to $3.3 billion.
Ashmore Group Plc rose 2.4% to 279.51 pence after the UK-based asset manager reported a sharply lower half-year profit.
In the first-half ending in December. assets under management declined 34% to $57 billion from $87 million in the previous year.
Adjusted net revenue in the first-half declined 22% to £107.7 million from £138.2 million a year ago.
After-tax profit declined 54% to £44.3 million from £95.4 million and earnings per share declined 6.1 pence from 13.3 pence in the previous year.
Smurfit Kappa Group fell 2.8% to 3,389.50 pence after the paper-based packaging company reported an increase in profit in 2022 but unit volumes declined.
Revenue in the second-half increased 18% to €6.43 billion and pre-tax income increased 5% to €524 million from €500 million a year ago.
Full-year 2022 revenue increased 27% to €12.8 billion and pre-tax increased 42% to €1.29 billion from €913 million a year ago.
Earnings per share rose to €3.65 from €2.63 in the previous year.
The paper company also reported a decline in box volume in 2022 by less than 2% following higher prices and tough comparison in the previous year.
- Barry Adams
- 08 Feb, 2023
- New York City
Stocks turned lower and investors returned focus to corporate earnings.
Benchmark indexes shot up in volatile trading in Tuesday's trading after Fed Chairman Jerome Powell acknowledged cooling of inflation but also reiterated central bank's commitment in lifting rates to restrictive levels.
Market jitters were in full display as investors reacted to corporate earnings and investors remained divided about the future direction and levels of interest rates.
The S&P 500 index decreased 0.2% to 4,153.16 and the S&P 500 index fell 0.3% to 12,077.67.
Crude oil increased 59 cents to $77.70 a barrel and natural gas fell 4 cents to $2.53 a thermal unit.
The yield on 2-year Treasury notes increased to 4.48%, 10-year Treasury notes inched higher to 3.69% and 30-year Treasury bonds rose to 3.74%.
Mortgage Applications Volume Rebound
Mortgage applications increased 7.4% in the week ending on February 3, according to the latest Mortgage Bankers Association’s weekly mortgage applications survey.
The Market Composite Index, a measure of mortgage loan application volume, increased 7.4% on a seasonally adjusted basis and rose 8% on an unadjusted basis.
The Refinance Index increased 18 % from the previous week but plunged 75% from the previous year.
“Applications rose last week as the 30-year fixed mortgage rate inched lower to 6.18%, its fifth consecutive weekly decline.
The 30-year fixed rate is almost a percentage point below its recent high of 7.16% in October 2022,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist.
U.S. Movers
Chipotle Mexican Grill, Inc declined 4.2% to $1,650 after the company reported lower-than-expected growth in same store sales, earnings and revenue.
Comparable store sales rose 5.6% and in-restaurant sales rose 17.5% and digital sales were 37.4% of food and beverage revenue. Opened 100 new restaurants with 90 locations including a Chipotlane.
Chipotle Mexican Grill said revenue in the fourth quarter rose 11.2% to $2.2 billion and net income jumped to $223.7 million from $133.5 million and diluted EPS rose to $8.02 from $4.69 a year ago.
Uber Technologies Inc rose 7.2% to $37.45 after the digital ride-hailing service provider forecasted gross booking to accelerate in the first quarter.
Uber said revenue in the fourth quarter rose 49% to $8.6 billion and net income fell 33% to $595 million from $892 million and diluted EPS declined to 29 cents from 44 cents a year ago.
European Markets Shift Focus to Earnings
European markets rebounded and the euro held stable after Fed Chair Jerome Powell sounded less hawkish in recent comments on Tuesday.
The DAX index increased 0.8% to 15,446.28, the CAC-40 index rose 0.2% to 7,145.44 and the FTSE 100 index added 0.5% to 7,906.91.
Societe Generale SA declined 4.7% to €26.71 after the French bank said net income in the fourth quarter declined 35.1% to Є1.16 billion from Є1.79 billion in the previous year.
TotalEnergies SE declined 1.2% to €56.83 after the French energy giant said earnings in the fourth quarter dropped 44% to $3.3 billion.
The euro inched lower to $1.072, the British pound edged down to $1.205 and the Swiss franc traded near 92.12 U.S. cents.
Brent crude oil rose 28 cents to $83.97 a barrel and the Dutch TTF Spot Price decreased 3.4% to 53.50 per MWh.
Japan's Current Account Surplus Halves
Asian markets closed mixed amid rising tensions between the U.S. and China.
The Nikkei 225 index declined 0.3% to 27,606.46 and the yen weakened 30 cents to 130.35 against the U.S. dollar.
Japan's current account surplus was cut in half after soaring costs of energy imports overwhelmed the return on foreign investments held by Japanese corporations, the Finance Ministry said Wednesday.
Current account surplus in 2022 declined by ¥10.15 trillion to ¥11.44 trillion or $87 billion.
Japan’s trade deficit was ¥15.78 trillion after imports soared 42% to ¥114.47 trillion, faster than the 19.9% rise in exports to ¥98.69 trillion, according to the preliminary data from the ministry.
China-U.S. Tensions Remain Elevated
China market indexes closed down on the worries that the escalating tensions with the U.S. may overshadow trade flows between two nations.
China refused the U.S. request to schedule a conference call between defense chiefs and the U.S. Senate Democratic leader Chuck Schumer described the state of bilateral relations "tense."
Schumer added that the Biden administration is looking for additional measures after shooting down the alleged Chinese spy balloon.
The Shanghai Composite index declined 0.5% to 3,232.11 and the Hang Seng index edged lower 15.18 points to 21,283.52.
The Chinese yuan strengthened to 6.79 against the U.S. dollar.
Reserve Bank of India Hikes Rates
The Reserve Bank of India raised its key repo rate by 25 basis points to 6.5% as widely expected, the sixth rate hike in a row.
The central bank has raised rates by 250 basis points since May 2022 and lifted the rate to the levels not seen since January 2019.
The Sensex index increased 0.6% or 377.75 points to 60,663.79 and the Nifty index added 0.9% or 150.25 points to 17,871.70.
The Indian rupee edged lower to 82.62 against the U.S. dollar.
- Scott Peters
- 08 Feb, 2023
- New York City
Chipotle Mexican Grill, Inc declined 4.2% to $1,650 after the company reported lower-than-expected growth in same store sales, earnings and revenue.
Comparable store sales rose 5.6% and in-restaurant sales rose 17.5% and digital sales were 37.4% of food and beverage revenue. Opened 100 new restaurants with 90 locations including a Chipotlane.
Chipotle Mexican Grill said revenue in the fourth quarter rose 11.2% to $2.2 billion and net income jumped to $223.7 million from $133.5 million and diluted EPS rose to $8.02 from $4.69 a year ago.
Gartner Inc gained 3% to $352.89 after the information services provider reported better-than-expected earnings and revenue growth.
Gartner Inc said revenue in the fourth quarter increased 15% to $1.5 billion and net income rose 27% to $257 million from $209 million and diluted EPS rose to $3.21 from $2.50 a year ago.
H&R Block Inc jumped 3.7% to $41.0 after the tax-preparation service provider reported earnings ahead of expectations.
H&R Block said revenue in the December quarter increased 5% to $166 million and net loss widened to $223.5 million from $190.6 million and diluted loss per share rose to $1.37 from $1.02 a year ago.
Illumina, Inc declined 3.5% to $208.12 after the biotechnology company reported mixed quarterly results.
Illumina said revenue in the fourth quarter fell 10% to $1.1 billion and the company swung to a net loss of $140 million from a profit of $112 million or diluted EPS was ($0.89) from $0.71 a year ago.
Malibu Boats Inc increased 1.4% to $63.38 after the company reported a rise in unit sales and better-than-anticipated earnings.
Malibu Boats said revenue in the December quarter rose 28.4% to $338.7 million and net income increased 17.5% to $36.4 million from $31 million and diluted EPS rose to $1.72 from $1.41 a year ago.
Uber Technologies Inc rose 7.2% to $37.45 after the digital ride-hailing service provider forecasted gross booking to accelerate in the first quarter.
Uber said revenue in the fourth quarter rose 49% to $8.6 billion and net income fell 33% to $595 million from $892 million and diluted EPS declined to 29 cents from 44 cents a year ago.
The Western Union Company increased 1.4% to $14.10 after the company reiterated its 2023 revenue to decline between 7% and 9% on higher promotions and marketing expenses.
Western Union said revenue in the fourth quarter fell 15% to $1.1 billion and net income increased 48% to $249.4 million from $168.8 million and diluted EPS rose to 65 cents from 42 cents a year ago.
The company announced quarterly dividend of 23.5 cents per common share, payable on March 31 to shareholders of record at the close of March 17.
Yum! Brands, Inc traded 0.5% higher to $129.05 after the operator of Pizza Hut, KFC and Taco Bell chains reported a rise in income.
Yum Brands said revenue in the fourth quarter rose 7% to $2 billion from $1.9 billion and net income rose 12% to $371 million from $330 million and diluted EPS jumped to $1.29 from $1.11 a year ago.
Same store sales at Taco Bell chain increased 11% and Pizza Hut rose 4% at U.S. locations.
Pizza Hut global same store sales increased 1% but international same store sales declined 1% on the ongoing weakness in China.
- Barry Adams
- 07 Feb, 2023
- New York City
Stocks powered ahead after financial markets put aside rate anxieties following the latest comments from Federal Reserve Chairman.
Chairman Jerome Powell acknowledged that inflation has started to cool but added that the disinflation process is in the early stage.
Market indexes bounced around and fell at one point in negative territory as investors took bets on the future rate path and the appropriate levels of interest rates.
“The disinflationary process, the process of getting inflation down, has begun and it’s begun in the goods sector, which is about a quarter of our economy," Chairman Powell said in a question and answer session at the Economic Club of Washington, D.C.
"“But it has a long way to go. These are the very early stages,” Powell added.
Markets accelerated gains in the final hour of trading and tech stocks led the gainers.
Later in the week, investors are awaiting earnings from 300 companies including quarterly results from Chipotle Mexican Grill, VF Corp, PepsiCo, Coty, Equifax, New York Times Goodyear Tire, Uber, Disney, Eaton Corp and Yum Brands.
Record U.S. International Trade Deficit In 2022
The U.S. trade deficit widened in December to $67.4 billion from the revised $61 billion in November, the Bureau of Economic Analysis reported Tuesday.
In December, the goods deficit with China rose to $22.8 billion, the European Union $18.6 billion, Mexico $12.0 billion, Vietnam $8.1 billion, Germany $8.0 billion and Japan $7.2 billion.
For the full-year 2022, the trade deficit widened to record $948.1 billion or 3.7% of current dollar GDP from $845 billion in 2021 or 3.6% of GDP.
The goods trade deficit widened 9.3% to $1,191.8 billion and the services surplus narrowed 0.6% to $243.7 billion.
In 2022, exports of goods rose 17.7% to $2,085.6 billion and imports rose 16.3% to $3,277.3 billion, both driven by crude oil.
The deficit with China expanded to $382.9 billion and the shortfall with Canada to $81.6 billion.
U.S. Indexes In Review
The S&P 500 index increased 1.3% to 4,164.0 and the Nasdaq Composite index rose 1.9% to 12,113.79.
Crude oil rose $3.53 to $77.64 a barrel and natural gas increased 14 cents to $2.59 a thermal unit.
The yield on 2-year Treasury notes edged down to 4.47%, 10-year Treasury notes increased to 3.67% and 30-year Treasury bonds traded near 3.72%.
French Trade Deficit Widened In 2022
France's trade deficit widened in December after imports rose at a faster pace than exports, the Ministry of the Economy reported Tuesday.
In December, exports increased 16.2% and imports rose 19.3% and trade deficit in December widened to Є14.93 billion from Є12.06 billion a year ago.
Energy imports in 2022 soared to Є115 billion from Є45 billion and trade deficit jumped 90% or by Є78 billion to Є164 billion.
In 2022, exports rose 18% and imports soared 29% but aviation, perfumes, cosmetics, beverages and pharmaceutical sectors reported surplus.
German Industrial production Dropped
Germany's industrial production declined at the fastest pace in nine months in December, the data released from Destatis or Federal Statistics Office showed.
Industrial production fell 3.1% in December on the month, reversing the 0.4% increase in November.
The 5.8% fall in intermediate goods output drove the overall production lower and consumer goods production increased 0.3% but capital goods production was unchanged.
The decline in December was the largest since the 4.2% fall in March.
Volatile European Markets Closed Lower
European markets closed down in choppy trading after energy prices advanced and investors reacted to corporate earnings.
European markets closed down as investors reacted to local earnings and digested the latest economic reports.
On the earnings front, BNP Paribas, Siemens Energy, BP Plc and TeamViewer earnings release dominated news cycle
Stocks lacked direction after the U.S. Federal Chairman Jerome Powell said inflation has begun to cool but it is too early to forecast a long term trend.
The DAX index decreased 0.6% to 15,320.88, the CAC-40 index declined 4.75 points to 7,132.35 and the FTSE 100 index increased 0.4% to 7,864.71.
The yield on 10-year German Bunds increased to 2.32%, French bonds rose to 2.77%, the UK Gilt to 3.3% and Italian bonds to 4.2%.
The euro traded near $1.075, the British pound inched lower to $1.20 and the Swiss franc fetched 91.97 U.S. cents.
Brent crude oil traded higher $2.83 to $83.84 a barrel and Dutch TTF natural gas spot price dropped 6.5% to Є54.50 per MWh.
Europe Stock Movers
BP Plc increased 3.3% to 494.0 pence after the energy explorer reported bumper profit reflecting higher crude oil, gasoline and natural gas prices.
The energy company said group revenue increased 34.5% to $70.2 billion and net income soared more than four-fold to $11.1 billion from $2.6 billion and diluted EPS rose to $3.50 from 70 cents a year ago.
BP repurchased $3.2 billion of stock in the quarter including $2.5 billion repurchase announced in the previous quarter.
Carlsberg AS dropped 3.3% to €128.40 after the brewery company reported a loss.
Revenue in the Fourth quarter rose 16.9% to DKK 70,265 million, driven by organic revenue growth of 15.6%.
The company swung to net loss of DKK -1,063 million, impacted by write-downs of DKK 10,735 million.
The brewery operator proposed a 13% increase in dividend to DKK 27 per share, equal to a total dividend payout of DKK 3.7 billion.
The company also completed its stock repurchase program of DKK 4.5 billion on January 27.
The company guided 2023 operating earnings growth in the range of -5% to +5%.
ams OSRAM AG declined 17% to 7.83 Swiss francs after the sensor maker suspended its 2022 dividend to strengthen its business.
Revenue in the fourth quarter declined 4% to €1.11 billion from €1.22 billion but net income plunged to €29 million from €119 million and diluted earnings per share declined 11 euro cents from 45 euro cents a year ago.
The company guided first quarter 2023 revenue between €900 million and €1.0 billion and operating earnings margin between 4% and 7%.
TeamViewer AG jumped 17% to €14.40 after the German software company announced a stock repurchase program and forecasted double-digit growth between 10% and 14% in 2023.
Fourth quarter billings surged 24% from a year ago to €190.6 million and revenue rose 14% to €150.5 million.
In the fourth quarter, earnings before interests and taxes increased 20% to €49.5 million from €41.3 million in the previous year.
The number of subscribers in the quarter increased 1% 626,000 from 617,000 in the previous year.
In the year 2022, billings increased 16% to €634.8 million and revenue rose 13% to €565.9 million.
BNP Paribas SA increased 2.6% to €62.34 after the French bank announced a €5 billion stock repurchase plan.
2022 revenue increased 9% to €50.4 billion and net income rose 7.5% to €10.19 billion and earnings per share of €7.80.
BNP also confirmed the sale of Bank of the West to BMO Group for $16.3 billion, generating capital gain of $2.9 billion booked in the first quarter of 2023.
The company lifted its 3-year to 2025 earnings growth target to 9%.
SoftBank's Vision Fund Losses Expanded
SoftBank Group Corp declined 1.1% to ¥6,268.0 and the diversified tech investment company reported a loss of ¥783.4 billion largely on the account of losses in its start up fund.
The Vision Fund segment reported a loss of ¥660 billion or about $5 billion after the fund marked down its investment in Didi Global and Grab Holdings and ByteDance.
For the first nine-months in the fiscal year 2022, the loss expanded to 5 trillion yen from 441 billion yen in the previous year's period.
Real Wages In Japan Edged Up
Benchmark indexes in Tokyo closed unchanged and the yen rebounded from the recent lows.
Japan's real wages edged up 0.1% in December from a year ago, rising for the first time in nine months since March, a report released on Tuesday by the labor ministry showed.
The Nikkei 225 index declined 8.18 points to 27,685.47 and the yen strengthened 1.5% to 130.73 against the U.S. dollar.
China Reopening Enthusiasm Lifted Indexes
Chinese stocks rebounded on the hopes that the reopening of the economy and social mobility will accelerate the increase in business activities.
The Shanghai Composite index increased 0.3% to 3,248.09 and the Hang Seng index advanced 0.4% to 21,298.70.
Stocks in Mumbai closed down driven by losses in metals stocks after Tata Steel reported a surprise loss in the December quarter.
Losses In Metals Stocks In India Drove Indexes Lower
Stocks in Mumbai closed lower after Tata Steel reported an unexpected loss, dragging the metals and broader indexes lower.
The Sensex index declined 0.4% or 220.86 points to 60,286.04 and the Nifty index eased 0.24% or 43.10 points to 17,721.50.
The rupee edged lower to 82.86 against the U.S. dollar.
Adani Ports increased 1.9% after the company reported better-than-expected quarterly profit.
Consolidated profit fell 16% in the December quarter.
Tata Steel said revenue in the December quarter declined about 5% to ₹57,354 crore or $6 billion and swung to a net loss of ₹2,502 crore or $320 million from a profit of ₹9,598 crore or $1.2 billion.