Tech Stocks, Zuckerberg’s Meta AI Push | Daybreak: Europe 04/25/2024
Bloomberg Daybreak Europe is your essential morning viewing to stay ahead. Live from London, we set the agenda for your day. “Good morning. This is Bloomberg Daybreak Europe. I’m Tom Mackenzie in London and these are the stories that set your agenda.”
Matt to the First Quarter Earnings Report: Key Points
– Stocks in Asia follow Wall Street lower, with big tech taking a hit due to earnings report concerns.
– Revenue slightly higher in Matt’s first quarter earnings, up 27%.
– Profit more than doubled to 12.4 billion USD.
– But concerns over up to 40 billion USD A.I. spending plan led to a 15% drop in stock price.
Deutsche Bank’s Strong Quarter: Revenue and Earnings Performance
– Deutsche Bank beat estimates with first quarter fixed income trading revenue.
– Revenue at 7.78 billion euros, slightly higher than 7.73 billion estimates.
– Focus on fixed income trading part of the business leading to a solid performance.
– Expectation of stable full-year CET1 ratio year on year.
Challenges at BNP Paribas: First Quarter Earnings
– Fixed income currencies and commodity sales and trading revenue below estimates at 1.6 billion euros.
– Total revenue in the first quarter at 12.48 billion, slightly above estimates.
– Concern around softness in fixed income trading part of the business.
– CFO of BNP Paribas to provide more details in the upcoming market interview.
Nestlé’s Earnings Report: First Quarter Organic Revenue Miss
– First quarter organic revenue up only 1.4% compared to estimated increase of almost 3%.
– Full year organic revenue forecast also slightly below estimates.
– Strong expectations for second quarter rebound and focus on volume and prices in business.
SD Micro’s Disappointing Semiconductor Earnings
– Full year net revenue expected to be 14 to 15 billion USD, below estimates of 16.2 billion USD.
– Gross margins came in below estimates at 40% versus 42.4%.
– Concerns around inventory build-up affecting industrial and auto chips.
– Second quarter net revenue at 3.2 billion USD, also a miss versus estimates.
Outlook on European Markets and Currencies
– Yen extends declines, hitting three-decade lows against major G7 currencies.
– European futures pointing lower, reflecting concerns in tech stocks.
– Focus on metal and semiconductor results impacting market sentiment.
– US ten-year at 4.64%, Brent at $88 a barrel.
Hot Take: Investment and Economic Implications
Overall, the recent earnings reports from tech stocks like Matt and semiconductor companies like SD Micro showcase the challenges and opportunities in the market. With concerns over spending plans and revenue misses, investors need to carefully consider the implications for their portfolios moving forward. The volatility in European markets and currencies, coupled with geopolitical tensions, also add to the complexity of investment decisions in the current economic landscape.
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