- Asian Stocks Languish at Open as US Rally Falters: Markets Wrap
(Bloomberg) — Stocks in Asia struggled for direction following a sluggish US session, with investors split on whether the market can sustain this month’s rally given economic crosscurrents. Equities in Japan fell while those in South Korea and Australia climbed. Futures for Hong Kong pointed to a flat open. Contracts for US stocks were little changed. - US Revokes Intel, Qualcomm Licenses to Sell Chips to Huawei
(Bloomberg) — The US has revoked licenses allowing Huawei Technologies Co. to buy semiconductors from Qualcomm Inc. and Intel Corp., according to people familiar with the matter, further tightening export restrictions against the Chinese telecom equipment maker. - Israel Edges Into Rafah With Tension High Over Stalled Talks
(Bloomberg) — Israel’s move to take control of the Rafah crossing into Egypt has sparked sharp debate about its end goal: Is this the start of a long-threatened invasion of the southern Gaza city, or an attempt to pressure Hamas to ease conditions for a cease-fire and the release of hostages? The answer is both, according to Israeli officials close to Prime Minister Benjamin Netanyahu. - Fed’s Kashkari Says Rates Likely on Hold for ‘Extended Period’
(Bloomberg) — Federal Reserve Bank of Minneapolis President Neel Kashkari said it’s likely the central bank will keep interest rates where they are “for an extended period of time” until officials are certain inflation is on track to their target. In an essay published earlier Tuesday, the Minneapolis Fed chief said recent inflation data raise questions about whether. - NFL Falcons Owner, Bergdorf Goodman’s Penick to Raise Biden Cash
(Bloomberg) — Prominent business leaders, including Darcy Penick of Bergdorf Goodman Inc., former Yahoo CEO Marissa Mayer, venture capitalist Vinod Khosla and Atlanta Falcons owner Arthur Blank, are among those hosting political fundraisers for President Joe Biden as the campaign taps Democratic-donor rich Silicon Valley and Chicago for cash. Tickets to the fundraisers, slated for May and June, go for as much as $250,000. - Trump Judge Indefinitely Postpones Documents Case Trial
(Bloomberg) — Donald Trump’s criminal trial for allegedly mishandling classified documents has been postponed indefinitely in a blow to the Justice Department’s efforts to obtain a jury verdict before November’s presidential election. US District Judge Aileen Cannon, who is overseeing the criminal proceeding in Florida. - Weak Yen’s Benefits for Carmakers Come to an End: Taking Stock
(Bloomberg) — A weaker yen used to reliably boost the shares of Japanese carmakers by inflating the value of their overseas sales and profits and giving them scope to price exports more competitively. But the correlation between the currency and stock prices has broken down. So far this quarter the yen weakened 1.9% against the dollar. - Balyasny Building Physical Natural Gas, Power Business in Europe
(Bloomberg) — Balyasny Asset Management is setting up a unit to trade physical natural gas and power in Denmark in a bid to generate more profit from its growing commodities business, people familiar with the matter said. The firm is still building out the portfolio and systems and registering itself as a counterparty to allow it to trade with entities. - Chase China Rally with Themes, Not Indexes, Morgan Stanley Warns
(Bloomberg) — The rally momentum behind one of the world’s best-performing stock markets will likely abate, according to Morgan Stanley strategists. Investors looking to get into Chinese equities should pursue single-stock and thematic opportunities, given improved investor sentiment, strategists at the US bank led by Laura Wang and Jonathan Garner wrote in a note Tuesday. - UBS shares rose 7.6% after the Swiss lender returned to profit and beat earnings estimates. Analysts noted cost savings and the strength of the wealth management division.
FIRST-QUARTER RESULTS: Net income $1.76 billion, estimate $598.3 million. Total revenue $12.74 billion, +46% y/y, estimate $11.86 billion. Net interest income $1.94 billion, +40% y/y, estimate $2.23 billion. Net Fee & Commission income $6.49 billion, +41% y/y, estimate $6.24 billion. Operating expense $10.26 billion, +42% y/y, estimate $10.75 billion. Pretax profit $2.38 billion, estimate $1.16 billion. Common equity Tier 1 ratio 14.8% vs. 14.4% q/q, estimate 14.4%. Cost to Income Ratio 80.5% vs. 105.7% q/q, estimate 85.6%. COMMENTARY: Sees low-to-mid single-digit decline in NII at Global Wealth Management unit in 2Q. UBS aims to achieve another $1.5 billion gross cost savings by end-2024. - Ferrari NV shares fell 4.7% after the luxury-car maker reported underwhelming earnings and failed to raise its outlook.
Delivery gains in Europe and the Americas failed to offset a 20% drop in greater China, where tariffs are weighing on the profitability of Ferrari’s made-in-Italy supercars. Adjusted operating earnings were in line with estimates. “We wonder if some investors were expecting a beat and raise,” said Tom Narayan, an analyst at RBC Capital Markets. The company confirmed its full-year guidance amid healthy demand for pricey models like the €2 million ($2.2 million) Daytona SP3 and more personalizations. The results “may have resulted in a touch of disappointment for those new to the stock,” Bloomberg Intelligence analyst Mike Dean said in a note. Ferrari’s high visibility on sales means that an upgrade “was always unlikely.” - UniCredit advanced 3.6%, hitting the highest level since August 2011, after the Italian lender reported net income for the first quarter that beat estimates on better revenues and provisions, and improved its guidance.
FIRST QUARTER RESULTS: Net income EU2.56 billion, +24% y/y, estimate EU2.12 billion. Revenue EU6.37 billion, +7.4% y/y, estimate EU5.97 billion. Net interest income EU3.58 billion, +8.5% y/y, estimate EU3.51 billion. Net Fee & Commission income EU2.10 billion, +3.3% y/y, estimate EU1.92 billion. Pretax profit EU3.60 billion, +32% y/y, estimate EU2.92 billion. Provision for loan losses EU103.0 million, estimate EU150 million. Operating costs EU2.31 billion, -0.7% y/y, estimate EU2.33 billion. Cost to Income Ratio 36.2%, estimate 40%. Common equity Tier 1 ratio 16.2%, estimate 16.1%. - Tesla shares fell 3.8% Tuesday, after preliminary data from China’s Passenger Car Association showed shipments from its Shanghai factory dropped 18% year-on-year in April even as the broader market for new-energy cars grew.
Tesla China’s total shipments fell 30% from March to 62,167 units in April, according to Bloomberg calculations based on the preliminary data. China’s April new-energy passenger vehicle wholesale deliveries were estimated at 800,000 units, representing an increase of 33% y/y. - Walt Disney shares fell 9.5% after the entertainment company reported fewer subscribers to its Disney+ streaming service in the fiscal second quarter than analysts had projected.
Chief Financial Officer Hugh Johnston said the company doesn’t expect to see core Disney+ subscriber growth in the current quarter and profitability in streaming will suffer due to due to additional expenses for cricket rights in India. However, the company raised its guidance for full-year growth in earnings per share to 25% from 20%, although the boosted view fell short of Wall Street’s expectations. SECOND-QUARTER RESULTS: Adjusted EPS $1.21 vs. 93c y/y, estimate $1.12. Disney+ subscribers 153.6 million, estimate 155.66 million. Revenue $22.08 billion, +1.2% y/y, estimate $22.1 billion. Total segment operating income $3.85 billion, +17% y/y, estimate $3.51 billion. - International Flavors climbed 6.4% after the ingredients, flavours and scents company posted 1Q profit and sales that beat estimates.
FIRST QUARTER RESULTS: Net sales $2.90 billion, -4.2% y/y, estimate $2.78 billion. Adjusted EPS excluding amortization $1.13 vs. 87c y/y, estimate 82c. Adjusted oper Ebitda $578 million, +15% y/y, estimate $491.3 million. YEAR FORECAST: Sees sales high end of $10.8 billion to $11.1 billion, saw $10.8 billion to $11.1 billion, estimate $11.05 billion. COMMENTARY: Expects volume to trend towards the higher-end of its previously announced 0% to 3% range, with improvements across the majority of the portfolio. Pricing is now expected to increase approximately 1% versus a decline of approximately 2.5%, principally driven by the impact of foreign exchange rate changes in emerging markets. - DocuSign to acquire AI firm Lexion for $165 million
SAN FRANCISCO – DocuSign (NASDAQ: DOCU), a prominent player in the field of electronic agreement management, announced today its plan to acquire Lexion, an AI-powered agreement management software company, for $165 million in cash. This strategic move aims to enhance DocuSign’s capabilities in the Intelligent Agreement Management (IAM) sector by integrating Lexion’s advanced AI technology into its platform. Lexion’s technology is designed to streamline the contract process, offering solutions for automated workflows and the extraction of critical information from contracts. This acquisition is expected to enrich DocuSign’s IAM offerings, providing customers with deeper insights into their agreements and facilitating faster contract reviews and negotiations. - Kenvue shares rose 6.4% after the Tylenol and Band-aid brands parent reported adjusted EPS and sales for the first quarter that topped expectations. Analysts called the results “better than feared.”
FIRST QUARTER RESULTS: Adjusted EPS 28c, estimate 25c. Net sales $3.89 billion, estimate $3.79 billion. Organic sales +1.9%, estimate -0.59%. YEAR FORECAST: Still sees adjusted EPS $1.10 to $1.20, estimate $1.14. Still sees organic revenue +2% to +4%, estimate +2.07%. See sees net sales growth +1.0% to +3.0%. Still sees adjusted operating income margin “slightly below” 2023 as strong gross margin progression is offset by the impact of absorbing a full year of public company costs and approximately 50 basis points of foreign currency headwinds. - Dow futures are little changed after index notches longest winning streak since December
Dow Jones Industrial Average futures sat near flat Wednesday after the blue-chip average clinched its longest winning streak since December. Futures tied to the 30-stock average lost 19 points, inching marginally below its flatline. S&P 500 futures and Nasdaq 100 futures also both traded near flat. In after-hours trading, Lyft and Wynn Resorts added more than 6% and 2%, respectively, on the back of stronger-than-expected quarterly results. Reddit surged more than 14% following its first earnings report as a public company. - Gold bars are selling like hot cakes in Korea’s convenience stores and vending machines
Aside from ramen and sausages, South Korea’s convenience stores have a new popular item on the menu — gold bars. A variety of finger-nail sized gold bars weighing between 0.1 gram and 1.87 gram have been up for sale at CU outlets since the start of April. People in their 30s were most active in purchasing these gold bars, accounting for over 41% of the total sales since their launch. - FTX Has Billions More Than Needed to Pay Bankruptcy Victims
(Bloomberg) — Cryptocurrency exchange FTX has amassed billions of dollars more than it needs to cover what customers lost in its November 2022 collapse, setting them up to receive full recoveries under the company’s bankruptcy. The extra cash will be used to pay interest to the company’s more than 2 million customers. - Xi Arrives in Serbia to Bolster Relations with Europe’s East
(Bloomberg) — China’s President Xi Jinping arrived in Serbia on the second leg of his European tour as he sought to tighten Beijing’s embrace of the Balkan nation in contrast with a more difficult relationship with most of Europe. The Chinese leader landed in Belgrade Tuesday night and was greeted by Serbian President Aleksandar Vucic and most of the government ministers.
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