- Bridgette Randall
- 08 Jul, 2022
- New York City
European markets traded mixed after two days of gain in the region.
The DAX index increased 0.9% to 12,966.40, the CAC-40 index increased 0.2% to 6,020.47, and the FTSE 100 index fell 0.6% to 7,143.87.
European market indexes were cautiously optimistic ahead of the release of U.S. jobs report.
Stocks turned weaker after the U.S. non-farm payrolls increased 372,000 in June, sharply higher than expected.
The strong jobs report raised the prospect of another large rate hike at the Fed's next meeting on July 26.
In regional news, Italy's industrial production declined in May and France's current account and trade deficit rose in May. Norway's trade surplus increased in June and Dutch industrial production increased at a slower pace in May.
Italy's industrial production decreased for the first time in four months in May, the statistical office Istat said on Friday.
Industrial production decreased 1.1% in May after rising 1.4% in April on a monthly basis and a first decline since January when production fell 3.3%.
France's trade deficit widened to 12.99 billion euros from 12.71 billion euros in April, the custom office said on Friday.
Current account deficit increased to 3.9 billion euros from 2.7 billion euros in April, the Bank of France said on Friday.
Norway's trade surplus rose in June after exports surged, Statistics Norway said on Friday.
Norway's trade surplus increased to NOK 87.46 billion from NOK 25.07 a year ago.
June exports jumped 77.9% after natural gas shipment soared 232.1% and crude oil deliveries rose 59.9%.
Mining companies in the region traded lower after a 3-day rally on the worries that the rising cases of coronavirus in China may impact the future demand.
Antofagasta, Glencore, and Anglo American fell between 1% and 2%.
Holcim AG gained 4.0% to 41.68 Swiss franc after the Swiss company agreed to acquire Romania's leading concrete-mix maker General Beton Romania S.R.l.
JD Sports Fashion PLC increased 1.5% to 124.10 pence after the apparel retailer appointed Andrew Higginson as Chair of the group.
Higginson was Chair of William Morrison Supermarkets plc from January 2015 until the takeover of the business by private equity firm CD&R LLP in November 2021.
TAG Immobilien AG plunged 8.4% to
- Bridgette Randall
- 08 Jul, 2022
- New York City
Shinzo Abe, Japan's former prime minister, died at the age of 67 from a gun wound during a campaign speech in western Japan.
The sudden news of Abe's assassination sent shockwaves in a country not accustomed to violence and around the world.
Abe was shot from behind by a 41-year old man using a large pistol at 11:30 a.m. local time when he was delivering a campaign speech near Yamato-Saidaiji railway station located in Nara city, according to local police.
The suspect Tetsuya Yamagami is under custody, Chief Cabinet Secretary Hirokazu Matsuno told reporters.
Japan, a peaceful nation, has one of the strictest gun controls in the world requiring stringent background checks and mental health assessments.
Abe passed away at 5:03 p.m. local time and was suffering from two gunshot wounds with internal bleeding on the left side of his chest and neck injuries, a doctor with the Nara Medical University said at a press conference.
Abe suffered severe blood loss and his heart stopped beating before he arrived at the hospital.
Abe was visiting Nara while campaigning for the Liberal Democratic Party candidate contesting for the House of Councilor's election on Sunday.
Abe served two separate terms as Japan's prime minister representing the LDP.
Abe's first term was between 2006 and 2007 and the second term between 2012 and 2020.
Abe's second term, the longest term for a Japanese leader, saw several attempts at reviving the moribund economy popularized by the Abenomics - a mix of fiscal and monetary steps and structural reforms including women's participation in business.
Abe played a key role in forming an informal alliance of the U.S., Japan, India, and Australia, dubbed Quad, primarily acting as a deterrent to the growing military threat from China.
"He was a towering global statesman, an outstanding leader, and a remarkable administrator." said India's prime minister Narendra Modi.
Modi also declared a day of national mourning on July 9.
In recent years, Abe has grown critical of China and worried that its growing military might threaten the security alliance in the region.
China has long regarded Taiwan as its renegade province and holds an ambition to unite the two countries.
Abe's recent comment that the "Taiwan crisis" is "Japan crisis" angered China and added that Japan will not be able to stand by if there is a conflict with the island nation.
- Scott Peters
- 07 Jul, 2022
- New York City
Levi Strauss, the popular maker of jeans, said earnings were hurt by the strong dollar but sales benefitted from the growing trend of casual Friday all week.
The apparel company's results offer rare positive news when many other retailers are struggling with unwanted inventories and sharp fall in operating margins.
Levi Strauss & Company said revenues in the second quarter ending in May increased 15% to $1.47 billion and rose 20% on a constant currency basis.
Net income in the quarter declined 23% to $50 million from $65 million a year ago and earnings per share dropped to 12 cents from 16 cents.
Revenues in the Americas rose 17% to $776 million both in nominal and constant currency terms.
Direct sales through company operated stores rose 13% and wholesale revenues rose 19%.
Net revenues through all digital channels grew 17% and represented 18% of the segment's sales in the quarter.
Revenues in Europe increased barely 3% to $367 million but were up 15% on a constant currency basis.
Wholesale net revenues decreased 10% on a reported basis and were flat on a constant-currency basis.
Online sales in Europe declined 30% following over 100% growth in the same period a year ago and represented 23% of the segment's sales in the quarter.
Revenues in Asia rose 16% to $222 million and jumped 21% on a constant currency basis.
Gross margin edged slightly lower to 58.1% from 58.8% and operating margin dropped to 5.1% from 8.3% a year ago.
Selling and administration expenses soared to $779 million from $644 million a year ago primarily linked to closing of the operation in Russia.
Levi recorded a one-time charge of $60 million related to the Russia-Ukraine crisis after the company suspended its Russia operation in March.
Inventories Rise Driven By Core Products
Inventories soared 29% at the end of the quarter to $1.1 billion and said the increase is driven by the company strategy to build core inventory and meet customer needs during the time of supply chain disruptions.
Share Repurchase and Dividend
In the second quarter, the San Francisco based company returned $80 million to shareholders - $40 million in share buyback and $40 million through 10 cents a share dividend.
Guidance and Outlook
The company guided higher sales and earnings despite the headwinds from the rising dollar.
Net revenues are estimated between $6.4 billion and $6.5 billion, an increase of 11% to 13% and adjusted diluted earnings per share between $1.50 and $1.56.
Company and Stock
Levi Strauss & Company, headquartered in San Francisco, California, listed its stock at $17 a share on March 21, 2019 in a public offering.
The company operated as a publicly listed company between 1971 and 1985 when the company decided to go private in a leveraged buyout.
Levi Strauss & Company closed up 4% to $16.41 in the regular market and extended gains by 4.1% to $17.07 in after hours trading.
- Scott Peters
- 07 Jul, 2022
- New York City
WD-40 Company plunged 9.2% to $186.01 after the chemical maker reported earnings after the regular hours of trading.
WD-40 said sales in the third quarter ending in May declined 9% to $123.7 million and sales were affected after translating foreign sales to the strong U.S. dollar.
Net income in the quarter declined 31% to $14.5 million or $1.07 a diluted share from $21.0 million or $1.52 a share.
The company lowered its annual sales growth outlook to between $519 million and $532 million, an increase between 6% and 9%.
The company had previously guided sales between $522 million and $547 million, an increase between 7% and 12%.
Wd-40 estimated annual net income between $69.0 million and $71.1 million and diluted earnings per share between $5.02 and $5.10 based on an estimated 13.7 million weighted average shares outstanding.
The company had previously guided net income between $70.7 million and $72.5 million and diluted earnings per share between $5.14 and $5.27.
- Scott Peters
- 07 Jul, 2022
- New York City
Kura Sushi USA gained 7.3% to $54.10 and extended gains after the regular hours of trading by another 19.5% to $64.62 after the release of earnings.
Kura said revenues in the third quarter ending in May more than doubled to $38 million from $18.5 million a year ago on a comparable sales increase of 65%.
Net income was $0.5 million or $0.05 per diluted share compared to $0.8 million or $0.09 a share a year ago.
The company guided full-year 2022 total sales between $137 million and $142 million from the previous estimate between $130 million and $140 million.
The company plans to open 8 restaurants with average net capital expenditure of $2.0 million.
- Barry Adams
- 07 Jul, 2022
- New York City
U.S. benchmark indexes advanced for the fourth day in a row and energy stocks advanced reversing losses in the week.
The S&P 500 index increased 1.5% to 3,902.62 and the Nasdaq Composite index added 2.3% to 11,621.35.
Futures of crude oil jumped 3.7% to $102.23 and natural gas increased 12.5% to $6.20 a unit.
Energy prices rebounded after a 4-day decline.
Chipmakers advanced after South Korea based Samsung reported its strongest June quarter in four years.
Intel increased 3.1% to $38.14, Advanced Micro Devices added 5.2% to $79.34, and Qualcomm, Inc jumped 5.8% to $134.46.
The yield on 10-year Treasury notes increased to 3.002% after the latest Fed minutes of meeting indicated policymakers' commitment in fighting inflation.
Policymakers proposed a restrictive stance and a faster interest rate hike at the next Fed's meeting on July 26.
The tough talk from policymakers may not smooth markets for too long as the central bank ignored inflation above its target rate of 2% for more than 18 months.
Initial claims of jobless benefits rose 4,000 to 235,000 for the week ended July 2, the Department of Labor reported today.
The initial claims increased to the level last seen in the second week in January and the 4-week average increased to 232,500, its highest level since December 2021.
Goods and services trade deficit edged lower to $85.5 billion from $86.7 billion in April, the Commerce Department reported today.
Though the deficit declined on a monthly basis but surged 38.4% from a year ago after imports rebounded faster than exports.
On a monthly basis, the seasonally adjusted trade deficit with China declined in May by $2.8 billion to $32.2 billion.
After the close, Levi Strauss, WD 40 Company, and Kura Sushi USA reported earnings.
Kura Sushi USA gained 7.3% to $54.10 and extended gains after the regular hours of trading by another 19.5% to $64.62 after the release of earnings.
Kura said revenues in the third quarter ending in May more than doubled to $38 million from $18.5 million a year ago on a comparable sales increase of 65%.
Net income was $0.5 million or $0.05 per diluted share compared to $0.8 million or $0.09 a share a year ago.
The company guided full-year 2022 total sales between $137 million and $142 million and the addition of 8 new restaurants.
WD-40 Company plunged 9.2% to $186.01 after the chemical maker reported earnings after the regular hours of trading.
WD-40 said sales in the third quarter ending in May declined 9% to $123.7 million and sales were affected after translating foreign sales to the strong U.S. dollar.
Net income in the quarter declined 31% to $14.5 million or $1.07 a diluted share from $21.0 million or $1.52 a share.
The company lowered its annual sales growth outlook to between $519 million and $532 million, an increase between 6% and 9%.
Wd-40 estimated annual net income between $69.0 million and $71.1 million and diluted earnings per share between $5.02 and $5.10 based on an estimated 13.7 million weighted average shares outstanding.
- Brian Turner
- 07 Jul, 2022
- New York City
Goods and services trade deficit edged lower to $85.5 billion from $86.7 billion in April, the Bureau of Economic Analysis reported today.
Though the deficit declined on a monthly basis but surged 38.4% from a year ago after imports rebounded faster than exports.
On a monthly basis, the seasonally adjusted trade deficit with China declined in May by $2.8 billion to $32.2 billion.
On a monthly basis, May exports increased $ 3.0 to $255.9 billion and imports rose $1.9 billion to $341.4 billion, $1.9 billion.
At the current rate of growth in trade deficit, the U.S. is set to report a record trade deficit of more than $1.0 trillion in 2022.
Trade deficit has been steadily rising and jumped from $653.9 billion in 2020 to $845.0 billion in 2021 to cross $1.0 trillion in 2022.
- Brian Turner
- 07 Jul, 2022
- New York City
Initial claims of jobless benefits rose 4,000 to 235,000 for the week ended July 2, the Department of Labor reported today.
The initial claims increased to the level last seen in the second week in January and the 4-week average increased to 232,500, its highest level since December 2021.
- Barry Adams
- 07 Jul, 2022
- New York City
U.S. benchmark indexes advanced for the fourth day in a row and tech and oil stocks led the gainers.
The S&P 500 index increased 1.2% to 3,890.29 and the Nasdaq Composite index added 1.8% to 11,599.67.
Futures of crude oil jumped 5.8% to $104.25 and natural gas increased 12.9% to $6.23 a unit. Energy prices rebounded after a 4-day decline.
Chipmakers advanced after South Korea based Samsung reported its strongest June quarter in four years.
Intel increased 2.7% to $37.99, Advanced Micro Devices added 4.5% to $78.74, and Qualcomm, Inc jumped 4.5% to $132.86.
The yield on 10-year Treasury notes increased to 3.008% after the latest Fed minutes of meeting indicated policymakers' commitment in fighting inflation.
GameStop Corp gained 12.1% to $133.55 after the video game retailer announced a 4-for-1 stock split.
Company stockholders of record at the close of business on July 18, 2022 will receive a dividend of three additional shares of the Company
- Barry Adams
- 07 Jul, 2022
- New York City
U.S. benchmark indexes advanced for the fourth day in a row and tech and oil stocks led the gainers.
The S&P 500 index increased 1.2% to 3,890.29 and the Nasdaq Composite index added 1.8% to 11,599.67.
Futures of crude oil jumped 5.8% to $104.25 and natural gas increased 12.9% to $6.23 a unit. Energy prices rebounded after a 4-day decline.
Chipmakers advanced after South Korea based Samsung reported its strongest June quarter in four years.
Intel increased 2.7% to $37.99, Advanced Micro Devices added 4.5% to $78.74, and Qualcomm, Inc jumped 4.5% to $132.86.
The yield on 10-year Treasury notes increased to 3.008% after the latest Fed minutes of meeting indicated policymakers' commitment in fighting inflation.
Policymakers proposed a restrictive stance and a faster interest rate hike at the next Fed's meeting on July 26.
The tough talk from policymakers may not smooth markets for too long as the central bank ignored inflation above its target rate of 2% for more than 18 months.
Initial claims of jobless benefits rose 4,000 to 235,000 for the week ended July 2, the Department of Labor reported today.
The initial claims increased to the level last seen in the second week in January and the 4-week average increased to 232,500, its highest level since December 2021.
Goods and services trade deficit edged lower to $85.5 billion from $86.7 billion in April, the Commerce Department reported today.
Though the deficit declined on a monthly basis but surged 38.4% from a year ago after imports rebounded faster than exports.
On a monthly basis, the seasonally adjusted trade deficit with China declined in May by $2.8 billion to $32.2 billion.
After the close, Levi Strauss and WD 40 Company are set to report earnings.
- Bridgette Randall
- 07 Jul, 2022
- New York City
British Prime Minister Boris Johnson resigned after more ministers quit his cabinet.
Only after three years in office, Johnson was forced to resign as more ministers quit following several policy missteps and a series of scandals.
The calls for Johnson's resignation grew louder after Chancellor of Exchequer Rishi Sunak and Health Secretary Sajid Javid tendered their resignation on Tuesday.
Finance minister Rishi Sunak resigned after the latest scandal rocked Downing Street involving Tory deputy chief Chris Pincher.
Last week Pincher resigned from the government over allegations that he groped two men at a private member's club.
"The public rightly expect the government to be conducted properly, competently and seriously.
I recognise this may be my last ministerial job, but I believe these standards are worth fighting for and that is why I am resigning.," said Sunak in a letter published on his twitter account.
"It has been an enormous privilege to serve in this role, but I regret that I can no longer continue in good conscience," Health Secretary of State & Social Care Sajid Javid tendered his resignation and said in a letter submitted to prime minister Johnson and published on twitter.
More junior ministers resigned yesterday and several party members urged Johnson to resign.
The drama reached a new high after the newly appointed finance minister Nadhim Zahawi urged Johnson to resign.
In 2016, Boris Johnson played a key role during the Brexit campaign that many say misled the British public and raised false hopes of better economic prospects outside the European Union and the scare of rising immigration from the Middle East.
The U.K.-EU relationship hit a new low after Johnson sought to rewrite the terms of Brexit and renege on the promises related to trade with Northern Ireland.
Johnson's administration placed some of the stringent sanctions on Russia and Russians after the country invaded Ukraine.
The Kremlin did not miss the opportunity and shot back after Johnson's sudden fall from power and his unceremonious departure.
"He doesn't like us, we don't like him either," Kremlin spokesman Dmitry Peskov said just before Johnson announced his resignation.
Boris Johnson, often invoking former prime minister and Conservative Party leader Churchill, offered vocal support to Ukraine and exhorted Ukrainians to fight the Russian aggression but rarely promoted a peaceful settlement.
The U.K. has provided less than 5% of military and arms support to Ukraine in its fight against Russia.
Just as Churchill led the U.K. into a disastrous war with Germany engulfing the whole world, Johnson advocated war with Russia on ideological grounds.
Boris Johnson has opposed any peaceful solution between Russia and Ukraine.
"Let me say now to the people of Ukraine, we in the UK will continue to back your fight for freedom for as long as it takes," Johnson said while delivering his speech.
Russian tycoon and billionaire Oleg Deripaska, who is close to the Kremlin, has opposed the war from the start and urged a peaceful solution with Ukraine.
Deripaska spoke for many Russians and people around the world when he posted his short statement on his Telegram channel.
"The inglorious end of the "inglorious stupid clown" who is responsible for tens of thousands of lives in this senseless conflict in Ukraine," Russian billionaire tycoon Oleg Deripaska.
Boris Johnson rose to power after his vocal support for Brexit in 2016, leaving the European Union, and led Conservative Party to a historic win of 80-seat majority in the 2019 elections.
However, his administration failed to capitalize on the British public's desire of speedy and total separation from the European Union.
Even after three years in office, Johnson has not completed Brexit negotiations with the European Union casting a pall over the economy and the pound.
With no clear front runner for the highest office in the U.K., the divided Conservative Party may take several weeks before a new leader is selected.
The British pound jumped 0.4% against the U.S. dollar to $1.197 and the 10-year U.K. government bond rose to 2.136%.
- Bridgette Randall
- 07 Jul, 2022
- New York City
European stock markets scaled higher and the euro struggled after the release of U.S. Federal Reserve policy meeting deliberations.
The DAX index gained 1.8% to 12,832.46, the CAC-40 index added 1.7% to 6,009.68, and the FTSE 100 index advanced 1.3% to 7,199.05.
Benchmark indexes in Frankfurt, Paris, and London opened higher after the Federal Reserve policymakers suggested restrictive policy stance and faster interest rate hikes at the next meeting.
The policy committee members proposed to lift rates by 50 o r75 basis points at the next meeting on July 26.
The strong commitment to tame inflation supported the market sentiment overcoming the worries that the Fed's aggressive action may lead to a recession.
Automakers and banks led the gainers.
HSBC Holdings, Commerzbank, BNP Paribas and Natwest Group increased between 2% and 3%.
Volkswagen, BMW, Renault, and Daimler Benz advanced between 3% and 5%.
Resource stocks gained after iron ore prices rose for China delivery.
Glencore, Antofagasta, and Anglo American surged between 6% and 7%.
ASM Holding rose 4.2% to 446.52 euros after South Korea based Samsung Electronics reported its strongest June quarter since 2018.
Nordex SE gained 7.5% to 8.45 euros after the German wind turbine maker said new orders drove total orders to 1.8 GW compared to 1.534 GW a year ago.
The company received a total of 346 wind turbines for projects in fifteen countries and Europe accounted for approximately 58%, Latin America 31% and North America 11%.
The strongest individual markets in Europe were Germany, Poland and Spain.
Lufthansa AG increased 4.7% to 5.77 euros after logistics entrepreneur Klaus-Michael Kuehne increased his stake in the state controlled carrier to 15% from 10%.
Telecom Italia SpA added 1% to 26 euro cents after the company laid out a detailed plan to separate its fixed network infrastructure from services.
Shell Plc added 3.9% to 23.97 euros after the oil refiner and explorer said rising refining margin is expected to add one billion dollars earnings to its refining business.
Persimmon Plc declined 6.1% 1,751.30 pence after the U.K.-based home builder said first-half revenues are estimated to decline to
- Bridgette Randall
- 07 Jul, 2022
- London
European stock markets scaled higher and the euro struggled after the release of U.S. Federal Reserve policy meeting deliberations.
The DAX index gained 1.8% to 12,832.46, the CAC-40 index added 1.7% to 6,009.68, and the FTSE 100 index advanced 1.3% to 7,199.05.
Benchmark indexes in Frankfurt, Paris, and London opened higher after the Federal Reserve policymakers suggested restrictive policy stance and faster interest rate hikes at the next meeting.
The policy committee members proposed to lift rates by 50 o r75 basis points at the next meeting on July 26.
The strong commitment to tame inflation supported the market sentiment overcoming the worries that the Fed's aggressive action may lead to a recession.
British Prime Minister Boris Johnson resigned after more ministers quit his cabinet.
Johnson was forced to resign only after three years in office as more ministers resigned following several policy missteps and a series of scandals.
The U.K.-EU relationship hit a new low after Johnson sought to rewrite the terms of Brexit and renege on the promises related to trade with Northern Ireland.
The British pound jumped 0.4% against the U.S. dollar to $1.197 and the 10-year U.K. government bond rose to 2.136%.
Germany's industrial production in May rose 0.2% after rising 1.3% in April, deStatis reported on Thursday.
On an annual basis, the production declined 1.5% from a year ago after falling 2.5% in April.
Automakers and banks led the gainers.
HSBC Holdings, Commerzbank, BNP Paribas and Natwest Group increased between 2% and 3%.
Volkswagen, BMW, Renault, and Daimler Benz advanced between 3% and 5%.
Resource stocks gained after iron ore prices rose for China delivery.
Glencore, Antofagasta, and Anglo American surged between 6% and 7%.
ASM Holding rose 4.2% to 446.52 euros after South Korea based Samsung Electronics reported its strongest June quarter since 2018.
Nordex SE gained 7.5% to 8.45 euros after the German wind turbine maker said new orders drove total orders to 1.8 GW compared to 1.534 GW a year ago.
The company received a total of 346 wind turbines for projects in fifteen countries and Europe accounted for approximately 58%, Latin America 31% and North America 11%.
The strongest individual markets in Europe were Germany, Poland and Spain.
Lufthansa AG increased 4.7% to 5.77 euros after logistics entrepreneur Klaus-Michael Kuehne increased his stake in the state controlled carrier to 15% from 10%.
- Scott Peters
- 06 Jul, 2022
- New York City
Chord Energy Corporation dropped 5.6% to $96.58 after the newly named company completed the merger between Whiting Petroleum and Oasis Petroleum.
The newly merged company under the new symbol CHRD began trading on July 5.
The merged company also lifted its second quarter energy production to increase 18% from 9% using the three stream production assumption.
Whiting and Oasis announced a $6 billion merger on March 7.
The combined company is expected to produce equivalent of at least 156 4 million of barrels a day and spend about !65 million in capital expenditure in the fiscal year 2022.
Danny Brown, previous chief executive officer of Oasis is appointed president & chief executive officer of Chord Energy.
- Scott Peters
- 06 Jul, 2022
- New York City
Amazon.com, Inc declined 0.7% to $112.84 after the company added one year free delivery from Grubhub.com for its prime members.
Just Eat Takeaway.com, the parent of Grubhub, offered warrants totaling up to a 15% stake in the U.S. based Grubhub when fully exercised by Amazon.
The vesting of warrants is subject to the satisfaction of certain performance conditions, principally the number of new consumers delivered through the commercial agreement.
In certain circumstances the warrants can vest on an accelerated basis, in full or in part and may be be settled in cash or company shares, the press release noted.
Separately, the U.K. antitrust regulator is investigating the retailer if the company is offering an unfair advantage to its own sellers over third-party sellers.
The U.K. based Just Eat is actively looking to sell its U.S. food delivery unit Grubhub after the post-pandemic weakening of sales growth at the company.