1. Asian Stocks Track US Peers Higher, Led By Japan: Markets Wrap

    (Bloomberg) — Asian stocks advanced Tuesday after Wall Street was bolstered by a strong start to the earnings season led by the “Magnificent Seven” big-tech companies. Equity benchmarks gained in Japan and South Korea, while Australian stocks were steady. Futures contracts for US shares were also little changed after the S&P 500 continued its month-end rebound.

  2. Xi Is on a Mission to Drive a Wedge Between Europe and the US

    (Bloomberg) — Chinese President Xi Jinping is heading to the European Union for the first time in five years with a clear message: Beijing offers much more of an economic opportunity for the bloc than the US wants to admit. The Chinese leader will begin his five-day trip to France, Serbia and Hungary on May 5, according to the Foreign Ministry in Beijing.

  3. US Lifts Quarterly Borrowing to $243 Billion, Above Forecast

    (Bloomberg) — The US Treasury ramped up its estimate for federal borrowing for the current quarter to $243 billion, more than most dealers had anticipated, in a move that largely reflected weaker cash receipts than officials had expected. The Treasury Department said in a statement Monday its net borrowing for April-through-June is now seen at $41 billion.

  4. White House Beefs Up Economic Team as Biden Vies for Second Term

    (Bloomberg) — President Joe Biden is promoting a pair of aides to bolster his team of economic advisers, ahead of an election that will hinge in large part on Americans’ views of the economy. Rob Friedlander will serve as chief of staff to the National Economic Council, led by former Federal Reserve Vice Chair Lael Brainard, according to a White House official.

  5. UK Sounds Alarm on Russian ‘Hybrid’ Attacks Before Moldova Votes

    (Bloomberg) — Russia is planning to target Moldova with a wave of so-called “hybrid” attacks in the run-up to its presidential election and referendum on joining the European Union later this year, according to people familiar with UK intelligence assessments.

  6. Japan’s Debt Dilemma May Doom Any FX Intervention, Brooks Says

    (Bloomberg) — To Robin Brooks, the former chief currency strategist at Goldman Sachs Group Inc., Japan’s massive government debt — for now at least — is likely to doom any efforts to prop up the yen. That debt has swelled to the equivalent of more than 250% of the nation’s economy, more than any of its peers, according to data from the International Monetary Fund.

  7. Elliott’s 2024 Hit List Reaches $100 Billion: Bloomberg Deals

    (Bloomberg) — Hi, it’s Fareed Sahloul in New York, tallying what’s shaping up to be another busy year for Paul Singer’s Elliott Investment Management. Also today, a L’Occitane buyout looms and Blackstone fires back in Hipgnosis bidding war. Today’s top stories. SES, Intelsat revive deal talks to form satellite giant. Billionaire launches L’Occitane buyout at $6.4 billion.

  8. Carlyle Said to Pick Banks for IPO or Sale of StandardAero

    (Bloomberg) — Carlyle Group Inc. is working with JPMorgan Chase & Co. and Morgan Stanley on options for aircraft maintenance services provider StandardAero, according to people familiar with the matter. The private equity firm picked the investment banks as it weighs an initial public offering or sale of StandardAero, said the people, who asked not to be identified discussing confidential information. The Scottsdale, Arizona-based company could be valued in a transaction at about $10 billion, including debt, the people added.

  9. Shares of Royal Philips NV soared on Monday, after the Dutch health-technology group announced a much lower-than-expected U.S. settlement over its Respironics ventilators.

    The stock (NL:PHIA) jumped 36% in Amsterdam after the company said it would pay $1.1 billion to resolve personal injury and medical monitoring litigation in the U.S. The rise in the stock is likely to be the best one-day percentage gain ever for Philips shares, according to FactSet Research. U.S.-listed shares (PHG) saw a similar gain. The payments are expected in 2025, funded from Philips’ cash flow generation. The company took a related EUR982 million ($1.05 billion) provision in the first quarter of this year. Philips Respironics hasn’t admitted any fault or liability, or injuries caused by Respironics devices.

  10. Elon Musk’s quick visit to China paid immediate dividends, with Tesla Inc. receiving in-principal approval from government officials to deploy its driver-assistance system in the world’s biggest auto market.

    The US carmaker was granted the approval under certain conditions, according to a person with knowledge of the matter, who asked not to be identified because details of all the criteria aren’t clear. Tesla did manage to clear two of the most important hurdles: reaching a mapping and navigation deal with Chinese tech giant Baidu Inc., and meeting requirements for how it handles data-security and privacy issues. Tesla shares soared 15% Monday, its best day in more than three years, while Baidu’s American depositary receipts closed 5.6% higher. Tesla didn’t respond to requests for comment on the status of its attempt to secure regulatory approval.

  11. Domino’s Pizza Inc.’s same-store sales in the US exceeded first-quarter expectations, a promising sign for the company’s continued turnaround.

    Domestic same-store sales rose 5.6% for the period ended March 24, the pizza company said Monday, ahead of analysts’ estimates for a 3.9% gain. The US results “came through positive order counts in both our carryout and delivery businesses for the second quarter in a row,” Chief Executive Officer Russell Weiner said in a statement. Weiner said orders were generated from customers “across all income cohorts.”

  12. Yum China reported adjusted earnings per share for the first quarter that beat the average analyst estimate.

    FIRST QUARTER RESULTS: Adjusted EPS 71c vs. 69c y/y, estimate 65c (Bloomberg Consensus). Comparable sales -3%, estimate -3.64%. KFC comp. sales -2%, estimate -2.9%. Pizza Hut comparable sales -5%, estimate -5%. Revenue $2.96 billion, +1.4% y/y, estimate $3.02 billion. KFC revenue $2.23 billion, +1.5% y/y, estimate $2.26 billion. Pizza Hut revenue $595 million, -0.3% y/y, estimate $614 million. EPS 71c vs. 68c y/y. Restaurant margin 17.6% vs. 20.3% y/y, estimate 18.3%. KFC restaurant margin 19.3% vs. 22.2% y/y, estimate 20%. Pizza Hut restaurant margin 12.5% vs. 14.2% y/y, estimate 12.9%. Total stores 15,022, estimate 14,952. KFC store count 10,603, estimate 10,505. Pizza Hut store count 3,425, estimate 3,421. Other stores 994, estimate 1,056.

  13. Welltower (WELL) reported late Monday Q1 normalized funds from operations of $1.01 per diluted share, up from $0.85 a year earlier.

    Analysts polled by Capital IQ expected FFO of $0.95. Revenue for the quarter ended March 31 was $1.86 billion, up from $1.56 billion a year earlier. Analysts surveyed by Capital IQ expected $1.86 billion.

  14. Samsung Electronics Co.’s reported upbeat 1Q24 earnings where revenue rose 13% to KRW 71.916 trillion and operating profit increased almost 10-fold to KRW 6.606 trillion amid recovering chip prices and growing demand.

    Net profit rose to KRW 6.755 trillion as compared to KRW 1.575 trillion a year earlier, beating estimates of KRW 5.345 trillion. The results revealed the rebound in demand for memory chips that power modern electronics and artificial intelligence after a severe downturn.

  15. Paramount Global reported a beat in its 1Q24 adjusted earnings per share from continuing operations. Adjusted earnings per share of 62 cents, beat estimates of 36 cents.

    Company also reported revenue of $7.69 billion, missing estimates of $7.74 billion, operating loss of $417 million, -66% YoY and free cash flow of $209 million which was better than the estimated negative $45.4 million. Paramount + subscribers of 71 million was higher than estimated 69.77 million, with net adds of 3.7 million subscriber’s vs estimated 2.2 million. The company made progress in getting a boost in Super Bowl’s advertising sales, as well as seeing an improvement in its streaming service. Separately, Paramount has replaced its Chief Executive Officer Bob Bakish, appointing a management committee while the board negotiates a possible change in control of the company.

  16. McDonald’s is about to report earnings. Here’s what to expect

    Boycotts after McDonald’s Israeli licensee offered discounts for soldiers pressured sales in the Middle East and some markets outside of the region. U.S. sales have slowed as low-income customers pull back their spending. McDonald’s shares have fallen 7.7% year to date, dragging its market value down to $197 billion.

  17. Japan’s Factory Output Records Weakest Quarter Since Pandemic

    (Bloomberg) — Japan’s factory output rebounded in March from a dismal start to the year, with the quarterly figure registering the weakest performance since the height of the pandemic in a sign the economy may have contracted during the period. Industrial production rose 3.8% in March from February, as demand picked up after two straight months of declines.

  18. Market Chatter: Boeing Initiates Dollar Bond Sale After Reporting Cash Burn

    Boeing (BA) has kicked off a dollar bond sale, Bloomberg reported Monday, citing a person familiar with the matter. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumour and speculation.

Leave a Reply

Your email address will not be published. Required fields are marked *