- Bridgette Randall
- 18 Jan, 2023
- Frankfurt
ASM International NV soared 9.8% to €314.35 after the maker of advanced semiconductor equipment reported better-than-expected fourth quarter revenue.
Sales in the fourth quarter increased to €720 million mainly due to better-than-expected supply chain conditions and higher conversion of the backlog, exceeding the previous guidance of €630million to €660 million released on November 28, 2022.
Higher-than-expected new orders of €820 million also lifted the book-to-bill ratio above 1.
"The upside was predominantly driven by the power/analog/wafer segment, including an exceptionally high order intake in our silicon carbide epitaxy business," said the company in its investor update.
Automakers were in focus after the release of December industry sales data as sales rose for the fifth month in a row.
Volkswagen AG, Daimler AG, Porsche Automobil, Renault SA and Peugeot SA traded between a loss of 0.3% and an increase of 1%.
Burberry Group Plc rose 2.8% to 2,306.59 pence after the luxury fashion products maker reiterated its medium-term business outlook.
Comparable sales in the fiscal third quarter ending in December increased 1% and excluding mainland China rose 11%.
Revenue in the quarter ending in December increased 5% to £756 million and sales were flat when measured in constant currencies.
Comparable sales rose 19% in the EMEIA region, declined in the Americas by 1%, fell 7% in the APAC region including a 23% plunge in mainland China.
Burberry said it has completed the repurchase of £363 million of its stocks of the authorized £400 million buyback plan.
The company reiterated its near and medium term outlook of high-single digit revenue growth.
Continental AG declined 3.0% to €66.20 after the German automobile parts maker lowered its adjusted free cash flow estimate and the company blamed the shortfall on the delay in customer payments.
Adjusted free cash flow is expected to be around €1.6 billion in the fourth quarter and around €200 million for the year compared to the estimated range between €600 million to €800 million.
Pearson Plc declined a fraction to 915.85 pence after the British-publishing company reported 2022 results ahead of expectations.
Underlying sales for the full-year increased 5% from a year ago and adjusted operating profit rose 11% to £455 million based on the British pound to the U.S. dollar rate at $1.24.
Richemont SA increased 0.6% to Sfr 137.90 after the Swiss luxury group reported higher sales in all regions except Asia Pacific.
Sales increased 5% and rose 8% in constant currency despite the ongoing Covid-linked disruptions in China.
Sales increased to €5.4 billion from €4.98 billion a year ago after sales in Europe increased 17% to €1.3 billion and in the U.S. rose 16% to €1.3 billion.
Asia Pacific sales declined 7% to €1.9 billion.
Just Eat Takeaway.com NV closed up 4% to 2,215.50 pence after the company reported higher-than-expected revenues in the fiscal second-half.
Total gross orders placed on the delivery platform in the fourth quarter 2022 declined 2% to €7.1 billion from €7.3 billion a year ago and were stable at €28.2 billion in 2022.
Adjusted operating earnings was €150 million or 1.1% of gross sales in second-half 2022 from a loss of €134 million in the first-half, driven by higher revenue per order, lower delivery costs per order and overheads & operating expenses.
Full-year adjusted operating earnings improved to approximately €16 million in 2022 from a loss of €350 million in 2021.
- Bridgette Randall
- 18 Jan, 2023
- Frankfurt
European markets paused after advancing for days in the first two weeks of 2023 and investors turned cautious.
The Euro Area and the U.S. inflation data and the Bank of Japan's continuation of ultra-loose monetary policy dominated the news cycle.
Investors also took a cautious view of China's abrupt switch from zero-covid policy to rapid spread of coronavirus as the expected pick up in business and social activities lag market's expectations.
Retail sales, industrial production, highway traffic and airline passenger bookings in January are recovering after three years of lockdowns but the pace of rebound is still slow, according to local sources in Shanghai, Shenzhen and Beijing.
Euro Area Inflation Eased but Remained Elevated In December
The Euro Area inflation eased to 9.2% in December from 10.1% in November as previously estimated, Eurostat said in a report released Wednesday.
Core inflation, excluding food and energy, accelerated to 5.2% in December from 5.0% in November, keeping the pressure on the European Central Bank to continue with its aggressive rate hikes.
On a monthly basis, the harmonized inflation index decreased 0.4% in December.
Across the region, the lowest annual inflation rates were recorded in Spain with 5.5%, Luxembourg 6.2% and France 6.7%.
The highest annual rates were recorded in Hungary after prices soared 25.0%, Latvia 20.7% and Lithuania 20.0%.
Compared to November, annual inflation fell in twenty-two member states, and the rate was stable in two and rose in three.
Passenger Car Registration Growth Slowed
Automakers advanced after European passenger car sales rose for the fifth month in a row, but the pace of increase slowed in December.
New car sales in the European Union increased 12.8% in December, slower than 16.3% increase in November.
European Market Indexes Hovered Near 9-month Highs
European markets opened higher and advanced in morning trading but faced selling pressure following the weakness in New York trading.
Benchmark indexes lost early gains and closed down in the region.
The DAX index declined 5.27 points to 15,181.80, the CAC-40 index increased 6.2 points to 7,083.39 and the FTSE 100 index dropped 20.33 points or 0.3% to 7,830.70.
Bond Yields Traded Down Despite Elevated Inflation
The yield on 10-year German Bunds decreased to 2.16%, French bonds declined to 2.65%, UK Gilts dropped to 3.26% and Italian bonds eased to 3.69%.
Weakening U.S. Inflation Drags U.S. Dollar Lower
The euro advanced to $1.0824, the British pound rose to $1.239 and the Swiss franc edged higher to 91.11 U.S. cents.
Europe Stock Movers
Automakers were in focus after the release of December industry sales data as sales rose for the fifth month in a row.
Volkswagen AG, Daimler AG, Porsche Automobil, Renault SA and Peugeot SA traded between a loss of 0.3% and an increase of 1%.
Continental AG declined 3.0% to €66.20 after the German automobile parts maker lowered its adjusted free cash flow estimate and the company blamed the shortfall on the delay in customer payments.
Adjusted free cash flow is expected to be around €1.6 billion in the fourth quarter and around €200 million for the year compared to the estimated range between €600 million to €800 million.
Pearson Plc declined a fraction to 915.85 pence after the British-publishing company reported 2022 results ahead of expectations.
Underlying sales for the full-year increased 5% from a year ago and adjusted operating profit rose 11% to £455 million based on the British pound to the U.S. dollar rate at $1.24.
Richemont SA increased 0.6% to Sfr 137.90 after the Swiss luxury group reported higher sales in all regions except Asia Pacific.
Sales increased 5% and rose 8% in constant currency despite the ongoing Covid-linked disruptions in China.
Sales increased to €5.4 billion from €4.98 billion a year ago after sales in Europe increased 17% to €1.3 billion and in the U.S. rose 16% to €1.3 billion.
Asia Pacific sales declined 7% to €1.9 billion.
Just Eat Takeaway.com NV closed up 4% to 2,215.50 pence after the company reported higher-than-expected revenues in the fiscal second-half.
Total gross orders placed on the delivery platform in the fourth quarter 2022 declined 2% to €7.1 billion from €7.3 billion a year ago and were stable at €28.2 billion in 2022.
Adjusted operating earnings was €150 million or 1.1% of gross sales in second-half 2022 from a loss of €134 million in the first-half, driven by higher revenue per order, lower delivery costs per order and overheads & operating expenses.
Full-year adjusted operating earnings improved to approximately €16 million in 2022 from a loss of €350 million in 2021.
- Barry Adams
- 18 Jan, 2023
- New York City
Profit taking dictated market sentiment in early trading after the latest inflation report confirmed the slowing inflation trend.
Benchmark indexes opened higher after the wholesale price index dropped to near a two-year low, but the decline was largely driven by the sharp fall in crude oil and gasoline prices.
Producer prices for services continued to rise at elevated levels, stoking fears that the higher interests are likely to stay longer despite the recent easing in goods prices.
S&P 500 and Nasdaq Turn Lower
Stocks opened higher on the hopes of inflation peaking but lost momentum after two hours of trading and benchmark indexes dropped in the negative zone.
The S&P 500 index decreased 0.8% to 4,003.67 and the Nasdaq Composite index declined 0.7% to 11,015.28.
Energy Prices Advanced On Demand Recovery Hopes
Energy prices traded higher on the hopes of rising demand from China.
Business activities and social mobility have picked up after the abrupt ending of zero-covid policy and ahead of the Lunar New Year, but the pace of increase is slow and halting.
Crude oil rose $1.55 to $81.74 a barrel and natural gas prices declined 15 cents to $3.43 a thermal unit.
Treasury Yields Drop After Weak Inflation Report
The yields on Treasuries declined following a fall in wholesale inflation, confirming the recent trend in easing price pressures.
The wholesale price inflation decline was largely driven by the sharp fall in gasoline and crude oil prices in December, however prices for these commodities have risen in the month so far.
The yield on 2-year Treasury notes fell to 4.09%, 10-year Treasury notes declined to 3.38% and 30-year Treasury bonds dropped to 3.53%.
Wholesale Goods Inflation Slows In December
Wholesale prices rose at a slower pace in nearly two years, largely on the account of the decline in energy prices, the Labor Department reported Wednesday.
The producer price index rose 6.2% in December from a year ago and declined 0.5% from the previous month.
On a monthly basis, the price decline was the largest since April 2020 and the annual pace of inflation was the smallest since March 2021.
The sharp decline in energy prices by 7.9% on the month dragged the inflation index lower. Gasoline price index, a subcategory in the energy price index, dropped 13.4%.
Food price index also decreased 1.2%.
The core PPI, which excludes food and energy, increased 0.1%.
Despite the goods price moderation trend in recent months, prices for services and wages have been on the rise.
Looking ahead, the inflation trend could be reversed since gasoline prices at pump stations and crude oil prices have edged up 8% and 1.8% in the month so far.
European Markers Hold Near Recent 9-month Highs
The Euro Area inflation eased to 9.2% in December from 10.1% in November as previously estimated, Eurostat said in a report released Wednesday.
Core inflation, excluding food and energy, accelerated to 5.2% in December from 5.0% in November, keeping the pressure on the European Central Bank to continue with its aggressive rate hikes.
Automakers advanced after European passenger car sales rose for the fifth month in a row, but the pace of increase slowed in December.
New car sales in the European Union increased 12.8% in December, slower than 16.3% increase in November.
The DAX index increased 0.3% to 15,235.70, the CAC-40 index rose 0.4% to 7,106.48 and the FTSE 100 index edged lower 5.85 points to 7,845.77.
The yield on 10-year German Bunds decreased to 2.16%, French bonds declined to 2.65%, UK Gilts dropped to 3.26% and Italian bonds eased to 3.69%.
The euro advanced to $1.0824, the British pound rose to $1.239 and the Swiss franc edged higher to 91.11 U.S. cents.
Nikkei Soared After BoJ Left Rates Unrevised
Stocks in Japan soared after the Bank of Japan held its interest rate policy and yield curve control, dashing all hopes of ending its ultra-low rate stance.
The central bank said it will hold rates at zero percent, with a band of 50 basis points or plus or minus 0.5%, and it will continue to buy unlimited amounts of 10-year Japanese government bonds.
The central bank will maintain its short term interest rates at -0.1%.
Last month when the Bank of Japan widened its band to 50 basis points from 25 basis points, investors raised hopes that the bank is finally prepared to lift rates higher and end its decades old ultra-low rate policy.
The Bank of Japan is likely to leave rates and its short term stance unchanged for the rest of the term of Governor Haruhiko Kuroda term, which ends in April.
The Nikkei index soared 2.5% to 26,791.12 and the yen was nearly unchanged at 128.32 against the U.S. dollar.
China Indexes Lacked Direction
Stocks in China lacked direction on the rising worries that the covid-infections are likely to flare-up in rural and urban areas after the ending of holiday period.
Tech stocks led the gainers in Hong Kong after regulatory crackdown appear to be waning.
The Shanghai Composite index increased 0.1% to 3,224.41 and the Hang Seng index advanced 0.5% to 21,678.0.
Sensex Extended Gains to Second Day
Stocks in Mumbai rose for the second day in a row following the market advance in Japan and market sentiment improved on the hopes of stronger-than-anticipated domestic demand.
The Sensex index advanced 0.6% or 390.02 points and the Nifty index added 0.6% or 112.05 to 18,165.35.
- Arjun Pandit
- 18 Jan, 2023
- Mumbai
Asian markets closed mixed after indexes soared in Tokyo but sentiment was cautious in China trading.
Stocks in Japan soared after the Bank of Japan held its interest rate policy and yield curve control, dashing all hopes of ending its ultra-low rate stance.
The central bank said it will hold rates at zero percent, with a band of 50 basis points or plus or minus 0.5%, and it will continue to buy unlimited amount of 10-year Japanese government bonds.
The central bank will maintain its short term interest rates at -0.1%.
Last month when the Bank of Japan widened its band to 50 basis points from 25 basis points, investors raised hopes that the bank is finally prepared to lift rates higher and end its decades old ultra-low rate policy.
The Bank of Japan is likely to leave rates and its short term stance unchanged for the rest of the term of Governor Haruhiko Kuroda term, which ends in April.
The Nikkei index soared 2.5% to 26,791.12 and the yen was nearly unchanged at 128.32 against the U.S. dollar.
China Indexes Lacked Direction
Stocks in China lacked direction on the rising worries that the covid-infections are likely to flare-up in rural and urban areas after the ending of holiday period.
Tech stocks led the gainers in Hong Kong after regulatory crackdown appear to be waning.
The Shanghai Composite index increased 0.1% to 3,224.41 and the Hang Seng index advanced 0.5% to 21,678.0.
Sensex Extended Gains to Second Day
Stocks in Mumbai rose for the second day in a row following the market advance in Japan and market sentiment improved on the hopes of stronger-than-anticipated domestic demand.
The Sensex index advanced 0.6% or 390.02 points and the Nifty index added 0.6% or 112.05 to 18,165.35.
- Brian Turner
- 18 Jan, 2023
- New York City
Wholesale prices rose at a slower pace in nearly two years, largely on the account of the decline in energy prices, the Labor Department reported Wednesday.
The producer price index rose 6.2% in December from a year ago and declined 0.5% from the previous month.
On a monthly basis, the price decline was the largest since April 2020 and the annual pace of inflation was the smallest since March 2021.
The sharp decline in energy prices by 7.9% on the month dragged the inflation index lower. Gasoline price index, a subcategory in the energy price index, dropped 13.4%.
Food price index also decreased 1.2%.
The core PPI, which excludes food and energy, increased 0.1%.
Despite the goods price moderation trend in recent months, prices for services and wages have been on the rise.
Looking ahead, the inflation trend could be reversed since gasoline prices at pump stations and crude oil prices have edged up 8% and 1.8% in the month so far.
- Barry Adams
- 17 Jan, 2023
- New York City
U.S. stocks struggled and investors weighed the latest earnings and looked ahead for economic growth drivers.
Investors focused on the latest corporate earnings and international news dominated the news cycle.
Goldman Sachs said fourth quarter earnings plunged but Morgan Stanley earnings were ahead of expectations after wealth management provided stability in earnings.
Investors also digested the latest report from the OPEC indicating a demand recovery of oil 2023.
Moreover, China reported a sharp slowdown in economic growth in the fourth quarter and in 2022 on the account of zero-covid policy.
The economic growth fell to the lowest level in nearly five decades after retail sales and industrial production declined.
Three years of lockdowns in China have devastated most small businesses and several medium sized businesses in retail, construction and manufacturing are struggling to survive.
With little support from the central or regional governments, Chinese businesses are facing severe financial liquidity crunch and shortage of workers.
U.S. Indexes Lack Direction
Benchmark indexes on Wall Street struggled to get traction ahead of the pick up in earnings season.
The S&P 500 index declined 8.12 points to 3,990.97 and the Nasdaq Composite index increased 15.16 points to 11,095.11.
Demand Recovery Hope Lifts Oil Price
Crude oil prices advanced to the highest level since early December after OPEC said oil demand is expected to rise 2.2% to 22.2 million barrels a day on the hopes of economic recovery in advanced economies and rising demand from China.
"US crude imports followed seasonal trends, falling to an eight-month low of 6.2 mb/d in December.
US crude exports remained above 4 mb/d for the third-consecutive month.
US product flows were broadly steady, despite a cold wave that shut-in US refineries and disrupted travel," noted the report.
Crude oil price increased $2.15 to $80.96 a barrel and natural gas immediate month futures contract price rose 2 cents to $3.64 a thermal unit.
Treasury Yields Hover Near 4-month Low
The yield on 2-year Treasury notes increased to 4.20%, 10-year Treasury notes inched higher to 3.55% and 30-year Treasury bonds inched up to 3.66%.
U.S. Stock Movers
Goldman Sachs fell 2.4% to $365.11 after the financial services provider reported a sharp decline in revenues and earnings.
Goldman Sachs said fourth quarter revenue fell 16% from a year ago to $10.6 billion and net income plunged to $1.2 billion from $3.8 billion or diluted EPS fell to $3.32 from $10.81 from a year ago.
Morgan Stanley rose 5.4% to $96.37 after the financial services provider reported better-than-expected quarterly results.
Fourth quarter revenue fell to $12.7 billion from $14.5 billion a year ago and diluted earnings per share dropped to $2.2 billion from $3.7 billion or $1.26 from $2.01 a year ago.
United Airlines fell 0.9% to $51.20 in the regulator trading session and advanced 3% to $52.76 in the after-hours trading after the airline reported higher-than-expected revenues on the resilient demand despite higher fares.
After the market closed, United Air said fourth quarter revenue increased to $11.2 billion from $8.2 billion a year ago.
The airline swung to a net income of $840 million from a loss of $646 million and diluted earnings per share was $2.55 compared to a loss of $1.99 a year ago.
The airline also estimated revenue in the first quarter 2023 ending in March to increase 50% from the previous year and earnings per share between 50 cent and 51 cents.
Whirlpool Sells Europe Business
Whirlpool Corporation increased 2.2% to $157.70 after the household equipment maker said it plans to sell its Europe, Middle East and Africa business and form a partnership with Turkey-based Arcelik AS.
Whirlpool will contribute its European domestic appliance business, and Arcelik will contribute its domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses into the newly formed entity.
Whirlpool will own 25% and Arcelik 75% of the newly formed company and Arcelik will retain full-ownership of its Turkish business.
European Investors Look to China for Growth
European markets edged lower but hovered near 11-month highs after oil, gas and mining stocks advanced following the hopes of demand recovery in advanced economies and in China.
Stocks in Paris struggled after luxury stocks fell on the worries of China's economic growth.
China Reported Second Weakest Annual GDP Growth In Five Decades
China reported its worst economic growth in nearly five decades in 2022 after zero-Covid policy dampened economic activities despite record trade surplus in the year.
China's GDP growth in the fourth quarter 2022 slowed to 2.9% from 3.9% in the third quarter.
On a quarterly basis, the economy was flat after expanding at 3.9% in the previous three months to September.
For the full-year 2022, the economy expanded at 3%, the slowest pace since 1976 excluding 2.2% advance in 2020 during the onset of the coronavirus pandemic.
Retail sales declined 1.8% from a year ago in December and fell 0.2% in full-year 2022.
Industrial production increased 3.6% in full-year 2022 and advanced 1.3%.
European Indexes Hovered Near 11-month Highs
The DAX index fell 9.4 points to 15,124.66, the CAC-40 index was nearly unchanged at 7,043.77 and the FTSE 100 index fell 0.1% to 7,850.83.
The euro traded higher at $1.085, the British pound edged higher to $1.227 and the Swiss franc inched lower to 91.96 U.S. cents.
Energy Prices Trade Higher In Europe
Energy prices rose in Europe following the optimistic report from OPEC.
"Preliminary figures show crude imports into OECD Europe remaining at healthy levels through the end of the year, despite imports of Russian crude falling to near zero excluding flows to Turkey.
OECD Europe product imports are also seen to be higher in anticipation of the impending February sanctions on Russian oil product imports," the report from the OPEC highlighted.
Brent crude oil rose $1.94 to $86.32 a barrel and the Dutch TTF natural gas futures price rose 5% to €58.63 per MWh.
The yield on 10-year German Bunds traded lower to 2.16%, French bonds declined to 2.63%, UK Gilts to 3.40% and Italian bonds inched higher to 4.002%.
Europe Stock Movers
Nordex SE closed nearly unchanged at €14.76 after the Germany-based wind turbine maker reported a fall in orders in the fourth quarter and in 2022.
In the fourth quarter, the company received orders for 386 wind turbines compared to 678 with a total output of 1.9 GW compared to 3.3 GW a year ago.
The average sales price in euros per megawatt of capacity soared to €0.89 million/MW compared to €0.74 million/MW a year ago.
Hugo Boss AG declined 2% to €59.44 after the luxury fashion designer said preliminary sales in the fourth quarter rose 18% to €1.07 billion from €905 million a year ago.
Hays Plc increased 2.2% to 121.76 pence after the recruiting company reported an increase in its fiscal second quarter fees.
Net fees in the December quarter increased 11% or rose 8% on a comparable basis, driven by a 25% jump in revenue in Germany.
The recruitment agency reiterated its operating earnings estimate for the first-half between £95 million and £97 million.
THG plc plunged 8.7% to 62.50 pence after the online retailer of cosmetics and dietary supplements reported weaker-than-expected full-year sales.
2022 revenue increased 4.1% to £2.25 billion after combined revenue in its beauty and nutrition divisions rose 9.4% from a year ago.
"A dedicated focus on high-margin categories and relatively low maintenance capital expenditure supports the Group's expectation of being broadly free cash flow neutral in FY 2023, and significantly free cash flow positive in FY 2024," the company said in its trading statement.
Ocado Group Plc declined 9.2% to 733.0 pence after the online retail platform in partnership with Marks & Spencer estimated sales growth "in mid-single-digits" in 2023.
Japan Awaits Rate Decision
Stocks in Japan rebounded, after two days of heavy losses, ahead of the Bank of Japan's decision tomorrow after the conclusion of a two-day policy meeting.
The Nikkei 225 average advanced 1.2% to 26,138.68 and the yen traded near 128.70 against the U.S. dollar after the Japanese government bond yields rose above the upper limit set by the Bank of Japan for the third day in a row.
China's GDP Growth Slows to Near 5-decade Low
Stocks in Shanghai traded nearly unchanged after the statistics bureau reported weakest economic growth in about 45 years.
China's GDP growth in the fourth quarter 2022 slowed to 2.9% from 3.9% in the third quarter.
For the full-year 2022, the economy expanded at 3%, the slowest pace since 1976 excluding 2.2% advance in 2020 during the onset of the coronavirus pandemic.
Retail sales declined 1.8% from a year ago in December and fell 0.2% in full-year 2022.
Industrial production increased 3.6% in full-year 2022 and advanced 1.3%.
The Shanghai Composite index decreased 0.1% to 3,224.24 and the Hang Seng index fell 0.8% to 21,577.64.
China Population Shrinks
China's population shrank for the first time in decades and the working population ratio declined, adding pressure on policymakers to find ways to improve productivity and expand the safety net.
The Chinese government said deaths outnumbered births in 2022 and the elderly population increased.
Total number of births declined to 9.56 million in 2022 from 10.62 million in 2021 and deaths increased to 10.41 in 2022 from 10.1 million in 2021, the National Bureau of Statistics said in a report Tuesday.
Total births declined for the sixth year in a row.
China's elderly population, those 60 years of age and older, expanded by 13 million to 280 million or one fifth of its 1.4 billion population.
India Stocks Rebound After Two Days of Losses
The Sensex index advanced 0.9% to 60,655.72 and the rupee held at 81.57 against the U.S. dollar in international trading.
Investors bid up stocks focused on the domestic economy in cautious trading after the international price of crude oil advanced, stoking fears of higher inflation.
- Scott Peters
- 17 Jan, 2023
- New York City
Cheesecake Factory fell 1.2% to $38.06 after the casual restaurant operator was downgraded by Citigroup to "neutral" from "buy" citing the stock is trading near its target price.
Goldman Sachs Group Inc fell 6.3% to $350.37 after the financial services provider reported a sharp decline in revenue and earnings.
Goldman Sachs said fourth quarter revenue fell 16% from a year ago to $10.6 billion and net income plunged to $1.2 billion from $3.8 billion or diluted EPS fell to $3.32 from $10.81 from a year ago.
Hugo Boss AG ADR decreased 2.4% to $12.89 after the fashion brand retailer said its fourth quarter revenue exceeded one billion euros for the first time.
Preliminary sales in the fourth quarter rose 18% to €1.07 billion from €905 million a year ago.
Morgan Stanley rose 6.2% to $97.35 after the financial services provider reported better-than-expected quarterly results.
Fourth quarter revenue fell to $12.7 billion from $14.5 billion a year ago and diluted earnings per share dropped to $2.2 billion from $3.7 billion or $1.26 from $2.01 a year ago.
Wealth Management unit reported record full year net revenues of $24.4 billion and a pre-tax margin of 27.0% or 28.4% excluding integration-related expenses.
The business added net new assets of $311 billion, representing a full year 6% annualized growth rate.
Roblox Corp soared 12.4% to $37.34 after the online gaming company released its estimated December sales, called bookings by the company,
The company estimated December gross bookings or sales between $430 million and $439 million, an increase between 17% and 20% from a year ago.
December month revenue between $189 million and $199 million, a decline between 1% and 6% from a year ago.
Daily active users in December increased 18% from a year ago to 61.5 million.
Vodafone Group Plc rose 2.0% to $11.46 after telecom authority in Ghana approved the company's 70% stake sale in Vodafone Ghana to Telecel Group after the company submitted a revised financial proposal.
Telecel plans to spend about $500 million in the first three years to expand and refinance Vodafone’s network across the country.
Vodafone acquired 70% stake in Ghana Telecommunications Co in 2008 when it paid the government $900 million.
The Ghanaian government will retain its 30% stake in the business.
Whirlpool Corporation increased 0.2% to $154.58 after the household equipment maker said it plans to sell its Europe, Middle East and Africa business and form a partnership with Turkey-based Arcelik AS.
Whirlpool will contribute its European domestic appliance business, and Arcelik will contribute its domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses into the newly formed entity.
Whirlpool will own 25% and Arcelik 75% of the newly formed company and Arcelik will retain full-ownership of its Turkish business.
- Scott Peters
- 17 Jan, 2023
- New York City
Whirlpool Corporation increased 2.2% to $157.70 in New York trading after the household equipment maker said it plans to sell its Europe, Middle East and Africa business and form a partnership with Turkey-based Arcelik AS.
Whirlpool will contribute its European domestic appliance business, and Arcelik will contribute its domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses into the newly formed entity.
Whirlpool will own 25% and Arcelik 75% of the newly formed company and Arcelik will retain full-ownership of its Turkish business.
- Bridgette Randall
- 17 Jan, 2023
- Frankfurt
Nordex SE closed nearly unchanged at €14.76 after the Germany-based wind turbines maker reported a fall in orders in the fourth quarter and in 2022.
In the fourth quarter, the company received orders for 386 wind turbine compared to 678 with a total output of 1.9 GW compared to 3.3 GW a year ago.
The average sales price in euros per megawatt of capacity soared to €0.89 million/MW compared to €0.74 million/MW a year ago.
Hugo Boss AG declined 2% to €59.44 after the luxury fashion designer said preliminary sales in the fourth quarter rose 18% to €1.07 billion from €905 million a year ago.
Hays Plc increased 2.2% to 121.76 pence after the recruiting company reported an increase in its fiscal second quarter fees.
Net fees in the December quarter increased 11% or rose 8% on a comparable basis, driven by a 25% jump in revenue in Germany.
The recruitment agency reiterated its operating earnings estimate for the first-half between £95 million and £97 million.
THG plc plunged 8.7% to 62.50 pence after the online retailer of cosmetics and dietary supplements reported weaker-than-expected full-year sales.
2022 revenue increased 4.1% to £2.25 billion after combined revenue in its beauty and nutrition divisions rose 9.4% from a year ago.
"A dedicated focus on high-margin categories and relatively low maintenance capital expenditure supports the Group's expectation of being broadly free cash flow neutral in FY 2023, and significantly free cash flow positive in FY 2024," the company said in its trading statement.
Ocado Group Plc declined 9.2% to 733.0 pence after the online retail platform in partnership with Marks & Spencer estimated sales growth "in mid-single-digits" in 2023.
Whirlpool Sells Europe Business
Whirlpool Corporation increased 2.2% to $157.70 in New York trading after the household equipment maker said it plans to sell its Europe, Middle East and Africa business and form a partnership with Turkey-based Arcelik AS.
Whirlpool will contribute its European domestic appliance business, and Arcelik will contribute its domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses into the newly formed entity.
Whirlpool will own 25% and Arcelik 75% of the newly formed company and Arcelik will retain full-ownership of its Turkish business.
- Bridgette Randall
- 17 Jan, 2023
- Frankfurt
European markets edged lower but hovered near 11-month highs after oil, gas and mining stocks advanced following the hopes of demand recovery in advanced economies and in China.
Stocks in Paris struggled after luxury stocks fell on the worries of China's economic growth.
China Reported Second Weakest Annual GDP Growth In Five Decades
China reported its worst economic growth in nearly five decades in 2022 after zero-Covid policy dampened economic activities despite record trade surplus in the year.
China's GDP growth in the fourth quarter 2022 slowed to 2.9% from 3.9% in the third quarter.
On a quarterly basis, the economy was flat after expanding at 3.9% in the previous three months to September.
For the full-year 2022, the economy expanded at 3%, the slowest pace since 1976 excluding 2.2% advance in 2020 during the onset of the coronavirus pandemic.
Retail sales declined 1.8% from a year ago in December and fell 0.2% in full-year 2022.
Industrial production increased 3.6% in full-year 2022 and advanced 1.3%.
European Indexes Hovered Near 11-month Highs
The DAX index fell 9.4 points to 15,124.66, the CAC-40 index was nearly unchanged at 7,043.77 and the FTSE 100 index fell 0.1% to 7,850.83.
The euro traded higher at $1.085, the British pound edged higher to $1.227 and the Swiss franc inched lower to 91.96 U.S. cents.
Energy Prices Trade Higher In Europe
Energy prices rose in Europe following the optimistic report from OPEC.
"Preliminary figures show crude imports into OECD Europe remaining at healthy levels through the end of the year, despite imports of Russian crude falling to near zero excluding flows to Turkey.
OECD Europe product imports are also seen to be higher in anticipation of the impending February sanctions on Russian oil product imports," the report from the OPEC highlighted.
Brent crude oil rose $1.94 to $86.32 a barrel and the Dutch TTF natural gas futures price rose 5% to €58.63 per MWh.
The yield on 10-year German Bunds traded lower to 2.16%, French bonds declined to 2.63%, UK Gilts to 3.40% and Italian bonds inched higher to 4.002%.
Whirlpool Sells Europe Business
Whirlpool Corporation increased 2.2% to $157.70 after the household equipment maker said it plans to sell its Europe, Middle East and Africa business and form a partnership with Turkey-based Arcelik AS.
Whirlpool will contribute its European domestic appliance business, and Arcelik will contribute its domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses into the newly formed entity.
Whirlpool will own 25% and Arcelik 75% of the newly formed company and Arcelik will retain full-ownership of its Turkish business.
Europe Stock Movers
Nordex SE closed nearly unchanged at €14.76 after the Germany-based wind turbines maker reported a fall in orders in the fourth quarter and in 2022.
In the fourth quarter, the company received orders for 386 wind turbine compared to 678 with a total output of 1.9 GW compared to 3.3 GW a year ago.
The average sales price in euros per megawatt of capacity soared to €0.89 million/MW compared to €0.74 million/MW a year ago.
Hugo Boss AG declined 2% to €59.44 after the luxury fashion designer said preliminary sales in the fourth quarter rose 18% to €1.07 billion from €905 million a year ago.
Hays Plc increased 2.2% to 121.76 pence after the recruiting company reported an increase in its fiscal second quarter fees.
Net fees in the December quarter increased 11% or rose 8% on a comparable basis, driven by a 25% jump in revenue in Germany.
The recruitment agency reiterated its operating earnings estimate for the first-half between £95 million and £97 million.
THG plc plunged 8.7% to 62.50 pence after the online retailer of cosmetics and dietary supplements reported weaker-than-expected full-year sales.
2022 revenue increased 4.1% to £2.25 billion after combined revenue in its beauty and nutrition divisions rose 9.4% from a year ago.
"A dedicated focus on high-margin categories and relatively low maintenance capital expenditure supports the Group's expectation of being broadly free cash flow neutral in FY 2023, and significantly free cash flow positive in FY 2024," the company said in its trading statement.
Ocado Group Plc declined 9.2% to 733.0 pence after the online retail platform in partnership with Marks & Spencer estimated sales growth "in mid-single-digits" in 2023.
- Barry Adams
- 17 Jan, 2023
- New York City
U.S. stocks lacked direction in early trading investors focused on corporate earnings and the international news dominated news cycle.
Goldman Sachs said fourth quarter earnings plunged but Morgan Stanley earnings declined but were ahead of expectations.
Investors also digested the latest report from the OPEC indicating a demand recovery of oil 2023.
Moreover, China reported a sharp slowdown in economic growth in the fourth quarter and in 2022 on the account of zero-covid policy.
The economic growth fell to the lowest level in nearly five decades after retail sales and industrial production declined
Three years of lockdowns in China has devasted small businesses and several medium sized businesses in retail, construction and manufacturing are struggling to survive.
U.S. Indexes Lack Direction
Benchmark indexes on Wall Street struggled to get traction ahead of the pick up in earnings season.
The S&P 500 index declined 3.85 points to 3,995.19 and the Nasdaq Composite index fell 5.01 points to 11,074.15.
Demand Recovery Hope Lifts Oil Price
Crude oil prices advanced to the highest level since early December after OPEC said oil demand is expected to rise 2.2% to 22.2 million barrels a day on the hopes of economic recovery in advanced economies and rising demand from China.
"US crude imports followed seasonal trends, falling to an eight-month low of 6.2 mb/d in December.
US crude exports remained above 4 mb/d for the third-consecutive month.
US product flows were broadly steady, despite a cold wave that shut-in US refineries and disrupted travel," noted the report.
Crude oil price increased $1.75 to $80.73 a barrel and natural gas immediate month futures contract price rose 9 cents to $3.76 a thermal unit.
Treasury Yields Hover Near 4-month Low
The yield on 2-year Treasury notes increased to 4.22%, 10-year Treasury notes inched higher to 3.54% and 30-year Treasury bonds inched up to 3.67%.
U.S. Stock Movers
Goldman Sachs fell 2.4% to $365.11 after the financial services provider reported a sharp decline in revenues and earnings.
Goldman Sachs said fourth quarter revenue fell 16% from a year ago to $10.6 billion and net income plunged to $1.2 billion from $3.8 billion or diluted EPS fell to $3.32 from $10.81 from a year ago.
Morgan Stanley rose 5.4% to $96.37 after the financial services provider reported better-than-expected quarterly results.
Fourth quarter revenue fell to $12.7 billion from $14.5 billion a year ago and diluted earnings per share dropped to $2.2 billion from $3.7 billion or $1.26 from $2.01 a year ago.
Whirlpool Sells Europe Business
Whirlpool Corporation increased 2.2% to $157.70 after the household equipment maker said it plans to sell its Europe, Middle East and Africa business and form a partnership with Turkey-based Arcelik AS.
Whirlpool will contribute its European domestic appliance business, and Arcelik will contribute its domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses into the newly formed entity.
Whirlpool will own 25% and Arcelik 75% of the newly formed company and Arcelik will retain full-ownership of its Turkish business.
European Indexes Near 11-month Highs
European markets edged lower but hovered near 11-month highs after oil, gas and mining stocks advanced following the hopes of demand recovery in advanced economies and in China.
The DAX index fell 9.4 points to 15,124.66, the CAC-40 index was nearly unchanged at 7,043.77 and the FTSE 100 index fell 0.1% to 7,850.83.
The euro traded higher at $1.085, the British pound edged higher to $1.227 and the Swiss franc inched lower to 91.96 U.S. cents.
Energy Prices Trade Higher In Europe
Energy prices rose in Europe following the optimistic report from the OPEC.
"Preliminary figures show crude imports into OECD Europe remaining at healthy levels through the end of the year, despite imports of Russian crude falling to near zero excluding flows to Turkey.
OECD Europe product imports are also seen to be higher in anticipation of the impending February sanctions on Russian oil product imports," the report from the OPEC highlighted.
Brent crude oil rose $1.94 to $86.32 a barrel and the Dutch TTF natural gas futures price rose 5% to €58.63 per MWh.
The yield on 10-year German Bunds traded lower to 2.16%, French bonds declined to 2.63%, UK Gilts to 3.40% and Italian bonds inched higher to 4.002%.
Japan Awaits Rate Decision
Stocks in Japan rebounded, after two days of heavy losses, ahead of the Bank of Japan's decision tomorrow after the conclusion of a two-day policy meeting.
The Nikkei 225 average advanced 1.2% to 26,138.68 and the yen traded near 128.70 against the U.S. dollar after the Japanese government bond yields rose above the upper limit set by the Bank of Japan for the third day in a row.
China's GDP Growth Slows to Near 5-decade Low
Stocks in Shanghai traded nearly unchanged after the statistics bureau reported weakest economic growth in about 45 years.
China's GDP growth in the fourth quarter 2022 slowed to 2.9% from 3.9% in the third quarter.
For the full-year 2022, the economy expanded at 3%, the slowest pace since 1976 excluding 2.2% advance in 2020 during the onset of the coronavirus pandemic.
Retail sales declined 1.8% from a year ago in December and fell 0.2% in full-year 2022.
Industrial production increased 3.6% in full-year 2022 and advanced 1.3%.
The Shanghai Composite index decreased 0.1% to 3,224.24 and the Hang Seng index fell 0.8% to 21,577.64.
Chinese government said deaths outnumbered births in 2022, marking the beginning of the long forecasted ageing and the decline of Chinese population.
Total number of births declined to 9.56 million in 2022 from 10.62 million in 2021 and deaths increased to 10.41 in 2022 from 10.1 million in 2021, the National Bureau of Statistics said in a report Tuesday.
Total births declined for the sixth year in a row.
China's elderly population, those 60 years of age and older, expanded by 13 million to 280 million or one fifth of its 1.4 billion population.
India Stocks Rebound After Two Days of Losses
The Sensex index advanced 0.9% to 60,655.72 and the rupee held at 81.57 against the U.S. dollar in international trading.
Investors bid up stocks focused on the domestic economy in cautious trading after the international price of crude oil advanced, stoking fears of higher inflation.