1. Asian Stocks Track US Peers Higher, Yen in Focus: Markets Wrap

    (Bloomberg) — Asian stocks climbed, tracking a rally in US markets after an inflation reading eased concerns of a more hawkish Federal Reserve. Equities in Australia and South Korea rose at the open, while the Japanese stock market is shut for a holiday. US contracts nudged higher after the S&P 500 rose 1% on Friday.

  2. Oil Declines as US Steps Up Efforts to Secure a Truce in Gaza

    (Bloomberg) — Oil slipped as the US pushed to broker a peace deal between Israel and Hamas that would reduce geopolitical tensions in the Middle East. Brent crude traded below $89 a barrel after gaining 2.5% last week, while West Texas Intermediate dropped toward $83.

  3. Yuan Devaluation Debate Surfaces as Traders Mull Next FX Shock

    (Bloomberg) — There is modest yet mounting speculation in financial markets that China will need to take an extreme and highly controversial measure to support its moribund economy — devalue the yuan in a big-bang move. Supporters of a sharp currency depreciation say it would allow Beijing boost exports and give the central bank room to cut interest rates.

  4. US Pushes for Gaza Truce, Hostage Release as Blinken Visits

    (Bloomberg) — US Secretary of State Antony Blinken will step up efforts to secure a truce in Gaza during meetings in the Middle East starting Monday, in what could be a final chance to persuade Israel to call off an attack on Rafah. The White House said Sunday that Israel has agreed to hear out its concerns.

  5. 60,000 Headlines Show Powell’s Hawkish Pivot Has Just Begun

    (Bloomberg) — Words are powerful. For the US economy, no-one’s more so than those of Fed Chair Jerome Powell. Bloomberg Economics’ Fed sentiment index — powered by a natural language processing algorithm based on more than 60,000 Fed headlines — shows that in December, Powell delivered a major pivot.

  6. Global Real Estate Outlook as Central Banks Pivot: Economics

    (Bloomberg Intelligence) — Housing markets in many countries are poised to turn a corner as rising wages and looming rate cuts improve affordability. Property has been remarkably resilient to central bank hikes, in part due to shortfalls in supply. Now, with real wages rising and financial conditions improving, the market in many countries is expected to pick up later this year.

  7. Trump Meets DeSantis Seeking to Tap Ex-Rival’s Donor Connections

    (Bloomberg) — Donald Trump and Florida Governor Ron DeSantis met on Sunday to discuss the possibility of tapping DeSantis’ donor network, according to a person familiar with the matter. The Miami meeting is a sign of rapprochement between the former president and his one-time opponent after a period of rocky relations, heightened by Trump’s attacks on DeSantis during the Republican primaries.

  8. Trump’s Economic Confidants Battle for Sway on Tax, Fed Policy

    (Bloomberg) — Economic advisers in Donald Trump’s orbit are clashing over their favoured policy ideas, a fight that is spilling into public view as they jockey for influence over the presumptive Republican presidential nominee’s second-term plans. In recent weeks, informal advisers have floated ideas such as penalties for countries that shift away from the US dollar; a proposal for a flat tax and reforms to the Federal Reserve to give the president more control over the independent central bank.

  9. Yen Watchers Ask When Japan Will Step In as Slide Accelerates

    (Bloomberg) — The yen has tumbled well past levels touted as red lines for Japan and at a pace that has traders asking when authorities might start buying the currency to support it — and why they haven’t done so already. The yen fell to a 34-year low against the dollar Friday after the Bank of Japan indicated financial conditions will remain easy.

  10. CICC to Cut Investment Bankers’ Base Pay by 25%, Reuters Reports

    (Bloomberg) — China International Capital Corp. is slashing onshore investment bankers’ base salary by as much as 25% to trim costs, according to Reuters. The pay cuts will affect more than 2,000 bankers, Reuters reported on Sunday, citing people familiar with the matter who weren’t identified. CICC hasn’t yet announced bonuses for 2023, Reuters also said.

  11. Financial News: Revealed: The Rising Stars of European Finance

    Skip to main content Financial News Law Asset Management Investment Banking Crypto Hedge Funds People Newsletters Events Lists News Revealed: The Rising Stars of European Finance See who made the cut for FN’s illustrious list By Clare Dickinson Sunday, 28 April 2024 at 23:01 Share Resize Photo: Uncredited Financial News presents its first list of the Rising Stars of European Finance.

  12. Billionaire Geiger Is Said to Near $7 Billion L’Occitane Buyout
    (Bloomberg) — L’Occitane International SA’s billionaire owner Reinold Geiger is close to making an offer to take the skin-care company private, according to people familiar with the matter, in a deal that could value the firm at about $7 billion including debt. Geiger is considering making an offer for the L’Occitane shares he doesn’t already own at HK$33 to HK$34 apiece.

  13. Airbus shares fell 0.9% after its first-quarter results were below estimates, even as the plane maker reiterated its full-year targets. Analysts say a difficult quarter was not unexpected, but supply chain commentary was more cautious. More positively, Airbus intends to further increase production of its advanced A350 widebody jet.

    FIRST-QUARTER RESULTS: Adjusted Ebit EU577 million, -25% y/y, estimate EU815.9 million. Revenue EU12.83 billion, +9.1% y/y, estimate EU12.93 billion. Net income EU595 million, +28% y/y, estimate EU644.7 million. Negative adjusted free cash flow EU1.79 billion vs. negative EU876 million y/y, estimate negative EU2.35 billion. EPS EU0.76 vs. EU0.59 y/y, estimate EU0.80. YEAR FORECAST: Still sees adjusted Ebit EU6.5 billion to EU7.0 billion, estimate EU6.86 billion. Still sees adjusted free cash flow about EU4.0 billion, estimate EU4.27 billion. Still sees Commercial aircraft deliveries about 800 planes, estimate 809.55.

  14. Saint-Gobain shares gain 6.9% after the French building-materials producer reported first-quarter sales that were slightly above expectations, according to Oddo. Separately, management is seeing signs of bottoming out for new build markets in Europe.

    FIRST QUARTER RESULTS: Like-for-like sales -5.8%, estimate -5.57%. Sales EU11.36 billion, -8.5% y/y, estimate EU11.4 billion. COMMENTARY: Sees FY Double-Digit Oper. Margin. Expects some markets to remain difficult, especially in 1H. Citi’s Ephrem Ravi (buy) says portfolio optimization continues, with a focus in the construction chemicals area as well as in North America and APAC. Welcomes reaffirmed guidance, despite persisting difficulties in certain markets.

  15. NatWest rose 6.1% after net interest income and pretax operating profit for the first quarter beat the average analyst estimate.

    FIRST QUARTER RESULTS: Pretax operating profit GBP1.33 billion, estimate GBP1.28 billion. Return on tangible equity +14.2%, estimate +13.2%. Common equity Tier 1 ratio 13.5%, estimate 13.6%. Adjusted cost to income ratio 58.4%, estimate 58.8%. Operating expenses GBP2.05 billion, estimate GBP1.99 billion. Net interest income GBP2.65 billion, estimate GBP2.56 billion. COMMENTARY: Retains Fy2024 Guidance Except Group Op. Costs. Sees full year 2024 Group operating costs excluding litigation and conduct costs broadly stable compared with 2023 excluding around £0.1 billion increase in bank levies. Shore (buy): The results show profit ahead of expectations, with beats on net interest income, impairment and litigation and conduct charges offsetting misses on non-interest income and costs, said analyst Gary Greenwood.

  16. Exxon Mobil shares dropped as much as 4.2% after reporting disappointing 1Q24 earnings of $8.2 billion or $2.06 per share (Adjusted EPS) vs $2.83 YoY, missing Bloomberg consensus estimates of $2.19.

    Total revenue and other income of $83.08 billion beat estimates of $80.26 billion. Capital and exploration expenditures were $5.8 billion, consistent with company’s full-year guidance of $23-25 billion. Management attributed its strong quarter to continued growth in advantaged assets such as Guyana and a strong turnaround performance on cost and schedule which helped drive record 1Q refining throughput in their Product Solutions division.

  17. Sinopec announced 1Q24 earnings and saw net profit fall by 9.7% YoY, following China’s sluggish economic recovery while raw material costs weighed on the company despite a rebound in travel.

    The company reported an IFRS net profit of Rmb 18.72 billion -9.7% YoY with earnings per share of Rmb 15.6 cents. Revenue of Rmb 789.97 billion -0.2% YoY, lower than estimates of Rmb 844.39 billion while operating profit of Rmb27.3 billion fell -12% YoY. Sinopec announced its plans to enhance several key basins in Xinjiang, Sichuan, and eastern China. It will also improve natural gas production and optimise sources for imported liquified natural gas.

  18. L3Harris Technologies shares rose 3.5% after the defense company increased its full-year projections for revenue, profit, and adjusted segment operating margin, with RBC highlighting the latter.

    FIRST QUARTER RESULTS: Adjusted EPS $3.06 vs. $2.86 y/y, estimate $2.91. Revenue $5.21 billion, +17% y/y, estimate $5.11 billion. Negative adjusted free cash flow $156 million. YEAR FORECAST: Sees adjusted EPS $12.70 to $13.05, saw $12.40 to $12.80, estimate $12.71. Sees revenue $20.8 billion to $21.3 billion, saw $20.7 billion to $21.3 billion, estimate $21.17 billion. Still sees adjusted free cash flow about $2.2 billion, estimate $2.2 billion. Sees adjusted segment operating margin greater than 15%, saw ~15%. COMMENTARY: We’re off to a strong start to 2024, reporting solid revenue with higher operating margin across all four segments and our Trusted Disruptor strategy continues to drive demand for innovative, resilient and mission-critical solutions aligned with national security needs”.

  19. Stock futures climb following S&P 500′s best week since November

    S&P 500 futures climbed on Monday morning as the broad index came off its best week in several months. Traders are looking ahead to a week with more corporate earnings, key labour data and a Federal Reserve meeting. Futures tied to the index added 0.27%. Dow Jones Industrial Average futures rose 109 points, or 0.28%. Nasdaq 100 futures advanced 0.38%. Those moves follow a positive — albeit rocky — week on Wall Street. The S&P 500 jumped 2.7%, notching its best week since November and breaking a three-week negative streak.

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