- Bridgette Randall
- 31 Jan, 2023
- Frankfurt
UBS Group AG declined 2% to 19.42 Swiss francs after the financial services provider said revenue declined but earnings rose in the fourth quarter.
UBS said fourth quarter revenue declined 9% to $8.0 billion from $8.2 billion a year ago.
Net income in the quarter rose to $1.65 billion from $1.34 billion and diluted earnings per share rose to 50 cents from 38 cents a year ago.
In 2022, the Swiss bank repurchased $5.6 billion of its stock and the company said it plans to buy back $5 billion of its shares in 2023.
The company also proposed a dividend of 55 cents to shareholders on record April 13 and payable on April 14, subject to the approval from the company's board at the shareholder meeting on April 5.
UniCredit SpA soared 11.5% to €17.75 after the Italian bank reported record fourth quarter profit and the bank said it plans to return €5.3 billion to investors.
Revenue in the fourth quarter increased 25.4% to €5.4 billion and net income rose to €1.04 billion from €338 million a year ago.
Assets under management declined 11.7% from a year ago and flat from the previous quarter to €193.5 billion.
Gross bad loans declined 20.3% from the previous quarter and dropped 46.6% from the previous year to €2.4 billion.
Ricardo Plc fell 2% to 534.20 pence after the company reiterated its fiscal year outlook.
Leoni AG declined 15% to €5.97 after the cable and harness maker said chief executive Aldo Kemper will depart the company as of March 31.
The company is undergoing restructuring and struggling with a heavy debt load of €1.7 billion and equity of €178 million.
Tele2 AB declined 3.9% to kr90.20 after the telecom service provider headquartered in Stockholm said 2023 revenue is estimated to grow in "low single-digit" in end user service and operating earnings adjusted for leased assets.
End-user service revenue increased 3% from a year ago to SEK 5.1 billion due to strong performance in the Baltics and business-to-business customers in Sweden.
Net profit increased to SEK 1.25 billion from SEK 953 million and earnings per share rose to SEK 1.82 from SEK 1.39 a year ago.
- Bridgette Randall
- 31 Jan, 2023
- Frankfurt
European markets traded lower ahead of key rate decisions from the European Central Bank and the Bank of England.
Despite the constant drumbeat of gloom and doom, the economies in the Euro Area expanded avoided a recession on the back of resilient consumer spending.
Germany's retail sales declined 6.4% in December from the year ago, the Federal Statistics Office reported Tuesday.
Euro Area Economy Expanded In 2022
The Euro Area economy unexpectedly expanded at 0.1% on the quarter in the fourth quarter and following 0.3% in the third quarter, Eurostat, the statistical office of the European Union reported Tuesday.
In 2022, after adjusting for seasonality factors and calendar days, the Euro Area economy expanded at 3.5% and the European Union economy rose 3.6%, according to the preliminary report released by Eurostat.
Ireland' economy surged 3.5% in the final quarter from the previous three months and jumped 15.7% from a year ago.
Ireland has been a leading beneficiary of U.K.'s leaving from the European Union after many U.S. corporations shifted operations or financial assets to the nation.
Economies of Germany contracted 0.2% and Italy shrank 0.1% but those of Spain expanded 0.2% and France increased 0.1% respectively, according to national statistics.
IMF Lifts Global Growth Estimate
The IMF revised global growth slightly on the resilient consumer demand in the U.S. and Europe despite the elevated energy prices and four-decade high inflation.
The U.S. economy is expected to grow at 1.3%, China at 5.0% and India at 6.0%.
Of the 22 largest economies in the world, only the UK is expected to shrink in 2023, according to the data released by the IMF.
The UK's economy is expected to shrink 0.6% in 2023.
Italy GDP Contracts In Fourth Quarter
Italy's GDP shrank in the final quarter of 2022 after expanding for seven quarters in a row, ISTAT or the National Statistics Office reported Tuesday.
Elevated inflation dragged real consumer spending in the final quarter after consumers retrenched and focused on basics.
On a quarterly basis, gross domestic product declined 0.3% in the December quarter after rising 0.5% in the September quarter.
On a yearly basis, GDP growth slowed to 1.7% in the fourth quarter from 2.6% in the previous quarter.
In 2022, Italy's GDP after adjusting for seasonal factors and calendar expanded 3.9%, slower than 6.6% in 2021.
European Market Indexes Traded Down
The DAX index fell 0.4% to 15,069.20, the CAC-40 index declined 0.3% to 7,061.98 and the FTSE 100 index dropped 0.5% to 7,748.14.
European Bond Yields Advanced
The yield on 10-year German Bunds hovered near 2.27%, French bonds traded near 2.74%, the UK Gilts traded at 3.30% and Italian bonds bounced around 425%.
Europe Stock Movers
UBS Group AG declined 2% to 19.42 Swiss francs after the financial services provider said revenue declined but earnings rose in the fourth quarter.
UBS said fourth quarter revenue declined 9% to $8.0 billion from $8.2 billion a year ago.
Net income in the quarter rose to $1.65 billion from $1.34 billion and diluted earnings per share rose to 50 cents from 38 cents a year ago.
In 2022, the Swiss bank repurchased $5.6 billion of its stock and the company said it plans to buy back $5 billion of its shares in 2023.
The company also proposed a dividend of 55 cents to shareholders on record April 13 and payable on April 14, subject to the approval from the company's board at the shareholder meeting on April 5.
UniCredit SpA soared 11.5% to €17.75 after the Italian bank reported record fourth quarter profit and the bank said it plans to return €5.3 billion to investors.
Revenue in the fourth quarter increased 25.4% to €5.4 billion and net income rose to €1.04 billion from €338 million a year ago.
Assets under management declined 11.7% from a year ago and flat from the previous quarter to €193.5 billion.
Gross bad loans declined 20.3% from the previous quarter and dropped 46.6% from the previous year to €2.4 billion.
Ricardo Plc fell 2% to 534.20 pence after the company reiterated its fiscal year outlook.
Leoni AG declined 15% to €5.97 after the cable and harness maker said chief executive Aldo Kemper will depart the company as of March 31.
The company is undergoing restructuring and struggling with a heavy debt load of €1.7 billion and equity of €178 million.
Tele2 AB declined 3.9% to kr90.20 after the telecom service provider headquartered in Stockholm said 2023 revenue is estimated to grow in "low single-digit" in end user service and operating earnings adjusted for leased assets.
End-user service revenue increased 3% from a year ago to SEK 5.1 billion due to strong performance in the Baltics and business-to-business customers in Sweden.
Net profit increased to SEK 1.25 billion from SEK 953 million and earnings per share rose to SEK 1.82 from SEK 1.39 a year ago.
- Barry Adams
- 31 Jan, 2023
- New York City
U.S. stocks lacked direction as financial markets await rate decisions tomorrow and review a fresh batch of earnings.
The U.S. Federal Reserve is set to announce its rate decision at the end of a two-day meeting tomorrow.
Markets are factoring in a 25 basis points increase to the benchmark rate range and investors are looking to get a better understanding of the inner workings of the economy.
Investors reacted positively after McDonald's and GM reported better-than-expected results but Caterpillar and UPS traded lower.
U.S. Compensation Costs Growth Slowed
The U.S. compensation costs for civilian workers increased 1% in the final three months of 2022 from the previous quarter, the third slowdown in a row, the Bureau of Labor Statistics said Tuesday.
Wages and salaries, which is about 70% of employment costs in the period rose 1% after rising at 1.3% in the previous quarter.
Benefits cost increased 0.8% in the final quarter after rising 1.0% in the previous quarter,
On an annual basis, total compensation costs increased 5.1% in the fourth quarter, slower than 5.0% in the third quarter and declined 1.3% after adjusting for inflation.
IMF Lifts Global Growth Estimate
The IMF revised global growth slightly on the resilient consumer demand in the U.S. and Europe despite the elevated energy prices and four-decade high inflation.
The U.S. economy is expected to grow at 1.3%, China at 5.0% and India at 6.0%.
Of the 22 largest economies in the world, only the UK's economy is expected to shrink by 0.6% in 2023, according to the data released by the IMF.
U.S. Indexes Trend Lower
The S&P 500 index increased 0.3% to 4,043.0 and the Nasdaq Composite index advanced 0.3% to 12,002,03.
Crude oil prices hovered near a three-week low on the worries that despite the U.S. and European Union sanctions Russia energy supplies are growing.
Moreover, the global demand recovery is expected to be slower than previously anticipated as business activities in China struggle to recover after the ending of zero-covid restrictions.
Crude oil declined to 46 cents to $77.45 a barrel and natural gas declined 3 cents to $2.64 a thermal unit.
The yield on 2-year Treasury notes declined to 4.21%, 10-year Treasury notes fell to 3.51% and 30-year Treasury bonds eased to 3.64%.
U.S. Stock Movers
Caterpillar Inc declined 3.3% to $253.01 after the company reported a rise in sales and earnings but missed analysts' expectations.
Caterpillar said fourth quarter revenue increased 20% to $16.6 billion from $13.8 billion on higher sales volume and price increase.
Net income in the quarter declined to $1.45 billion from $2.12 billion and diluted earnings per share fell to $2.79 from $3.91 a year ago.
Construction machinery sales increased 34% in North America and soared 39% in Latin America.
General Motors jumped 1.7% to $38.06 after the vehicle maker reported better-than-expected quarterly earnings.
Fourth quarter revenue increased 28.4% to $43.1 billion after the company sold more vehicles in the U.S.
Net income in the quarter increased 14.8% to $1.99 billion from $1.74 billion and diluted earnings per share rose to $1.39 from $1.16 a year ago.
European Markets Cautious Ahead of Rate Decisions
European markets traded lower ahead of key rate decisions from the European Central Bank and the Bank of England.
The Euro Area economy unexpectedly expanded at 0.1% on the quarter in the fourth quarter and following 0.3% in the third quarter, Eurostat, the statistical office of the European Union reported Tuesday.
In 2022, after adjusting for seasonality factors and calendar days, the Euro Area economy expanded at 3.5% and the European Union economy rose 3.6%, according to the preliminary report released by Eurostat.
The DAX index fell 0.4% to 15,069.20, the CAC-40 index declined 0.3% to 7,061.98 and the FTSE 100 index dropped 0.5% to 7,748.14.
The yield on 10-year German Bunds hovered near 2.27%, French bonds traded near 2.74%, the UK Gilts traded at 3.30% and Italian bonds bounced around 425%.
Asian Markets Closed Down
Asian markets traded lower following weak overnight trading in New York. Caution prevailed ahead of rate decisions from the US Federal Reserve and central banks in Europe and UK.
The Nikkei index declined 0.4% to 27,327.11 and the yen weakened to 130.02 against the U.S. dollar.
The Shanghai composite index fell 0.4% to 3,255.67 and the Hang Seng index declined 1.03% to 21,842.33.
Stocks lacked direction in Mumbai trading ahead of the release of the Union Budget tomorrow.
India's real GDP is estimated to grow between 6% and 6.8% in the next fiscal year ending in March 2024, the survey released in the Parliament by the central government Tuesday.
The Sensex index in Mumbai advanced 49.49 points to 59,549.90 and the Nifty index increased 13.2 points to 17,662.15.
The rupee edged lower to 81.41 against the U.S. dollar.
- Scott Peters
- 31 Jan, 2023
- New York City
Caterpillar Inc declined 3.3% to $253.01 after the company reported a rise in sales and earnings but missed analysts' expectations.
Caterpillar said fourth quarter revenue increased 20% to $16.6 billion from $13.8 billion on higher sales volume and price increase.
Net income in the quarter declined to $1.45 billion from $2.12 billion and diluted earnings per share fell to $2.79 from $3.91 a year ago.
Construction machinery sales increased 34% in North America and soared 39% in Latin America.
General Motors jumped 1.7% to $38.06 after the vehicle maker reported better-than-expected quarterly earnings.
Fourth quarter revenue increased 28.4% to $43.1 billion after the company sold more vehicles in the U.S.
Net income in the quarter increased 14.8% to $1.99 billion from $1.74 billion and diluted earnings per share dropped to $1.39 from $1.10 a year ago.
Johnson & Johnson declined 4% to $162.0 after a U.S. District Court in Philadelphia rejected the company's bankruptcy move and said it must face claims related to its talcum powder.
The company is facing about 40,000 lawsuits filed by women who claimed to have developed ovarian cancer after using the company's talcum powder products laced with asbestos.
McDonald's Corp declined 2.5% after the fast food chain operator reported a rise in sales driven by price increase and new stores.
McDonald's reported a strong quarterly sales increase after global comparable sales increased 12.6% and in the U.S. rose 10.6%.
Revenue in the fourth quarter declined 1% to $5.9 billion from $6.0 billion and net income increased 16% to $1.9 billion from $1.6 billion.
Diluted earnings per share rose to $2.59 from $2.18 a year ago.
Revenue in 2022 was flat at $23.2 billion and net income fell 18% to $6.2 billion from $7.5 billion a year ago.
UBS Group AG declined 2% to $20.83 after the financial services provider said revenue declined but earnings rose in the fourth quarter.
UBS said fourth quarter revenue declined 9% to $8.0 billion from $8.2 billion a year ago.
Net income in the quarter rose to $1.65 billion from $1.34 billion and diluted earnings per share rose to 50 cents from 38 cents a year ago.
In 2022, the Swiss bank repurchased $5.6 billion of its stock and the company said it plans to buy back $5 billion of its shares in 2023.
The company also proposed a dividend of 55 cents to shareholders on record April 13 and payable on April 14, subject to the approval from the company's board at the shareholder meeting on April 5.
United Parcel Service rose 1.7% to $179.90 after the company reported better-than-expected earnings.
said fourth quarter consolidated revenue increased 2.7% to $27.0 billion.
Revenue in the U.S. rose 3.1% driven by price increase and higher revenues per piece of 7.2%.
The parcel delivery service provider increased its quarterly dividend to $1.62 per share on all outstanding Class A and Class B shares payable on March 10 to shareowners of record on February 21.
The company board also approved a new stock repurchase program of $5.0 billion, replacing the existing plan.
Whirlpool Corp rose 2.2% to $156.80 after the company reported mixed quarterly results but exceeded expectations set by analysts
Whirlpool said fourth quarter net sales declined 15.3% to $4.3 billion and swung to a net loss of $1.6 billion from $300 million.
Diluted loss per share was $29.35 compared to a profit per share of $4.90 a year ago.