Brexit and Labour’s missed opportunity
Samsung operating profits sink due to challenging economic conditions
- Operating profit: 7.78 trillion Korean won ($6.7 billion) vs. 17.57 trillion won a year ago
- Net profit: 6.29 trillion Korean won vs. 13.15 trillion won a year ago
- Consolidated sales: 62 trillion Korean won vs. 65.46 trillion won a year ago
- Basic earnings per share was 899 Korean won compared to 1,909 won from a year ago.
Halloween morning review: Lloyds spook and Fed rate cut treat
“As expected Jerome Powell and his FOMC buddies slashed interest rates by another 25 basis points on Wednesday.”
“However, it seems like that’ll be it for the foreseeable future. The Fed chair even went as far to say that monetary policy is now in a ‘good place’ after his trio of historic cuts, downplaying the likelihood of any further move lower while also stating the US would need a ‘really significant’ rise in inflation before a hike was considered.”
“The great unknown hanging over all this, of course, is the US-China trade situation. ‘Phase one’ of a deal may be nearing completion, but that’s only the first baby steps towards properly ending the war.”
“Nevertheless, the Fed sufficiently pleased the markets without doing too much to excite them, leading to a broadly, blandly positive open on Thursday. One, admittedly, that required investors to ignore the pair of worse than forecast PMIs out of China overnight (the manufacturing reading was particularly alarming, hence the red start for commodity stocks).”
“With the Dow Jones looking to cross 27200 this afternoon, the DAX and CAC added 0.3% apiece. The FTSE, meanwhile, quickly managed to reduce its early 0.6% decline to a milder 0.1% dip in the early moments of the session.”
Other causes for concern and excitement in commodities in recent weeks, have included; a general election on the horizon, a new Brexit deal being agreed and the UK economy looking likely to avoid recession.“It was another rough morning for its banking sector, with Lloyds the latest firm to disappoint. The horsiest finance firm around revealed a 97% plunge in underlying pre-tax profit, after setting aside another £1.8 billion to cover PPI claims – that takes its total payouts related to the scandal to more than £20 million.”
“Despite Goldman Sachs (NYSE: GS) advising forex traders to steer well clear of sterling in the coming months, the pound continued its post-election confirmation gains on Thursday. Rising 0.4%, cable struck a 9-day high of $1.2946, while a 0.2% increase against the euro lifted the currency above €1.16.”
Elsewhere in the banking sector, Deutsche Bank (ETR: DBK) reported losses during the third quarter.Shell profits sink amid oil low prices
Sanofi boasts sales growth but cannot salve its IFRS fundamentals
Sanofi comments
Giving insight on the Company’s third quarter update, CEO Paul Hudson said, “Since joining Sanofi only two months ago, I am increasingly excited about the strength of our businesses, our ability to develop transformative medicines and the diverse talent of our teams across the organisation. Building on this foundation, Sanofi delivered a resilient underlying performance in the third quarter with strong sales in Specialty Care, largely driven by the continued outstanding performance of Dupixent. I am encouraged by the organisation’s early achievements in our efficiency initiatives, which will allow us to further drive innovation in our business. I’m looking forward to discussing Sanofi‘s strategic priorities at our Capital Markets Day in Cambridge, MA on December 10.”Investor notes
Following the update, the Company’s shares are down 0.082% or 0.070p to 84.91p per share 31/10/19 11:52 CET. The Group’s dividend yield stands at 3.61%, their market cap is €106.47 billion.Lloyds Banking report drop in Q3 pre-tax profits
Peugeot and Fiat finalize merger
UK car production down 3.8% in September
https://platform.twitter.com/widgets.js“Most worrying of all though is the continued threat of a ‘no deal’ Brexit, something which has caused international investment to stall and cost UK operations hundreds of millions of pounds” CEO @MikeHawesSMMT responds to UK car production figures https://t.co/H2gKAe9sNL pic.twitter.com/Cc3XtCVyms
— SMMT (@SMMT) October 31, 2019
Volkswagen’s sales revenue and profit grow
Volkswagen (ETR:VOW3) posted a rise in sales revenue and profit on Wednesday.
Shares in the German multinational automotive manufacturing company were up during trading on Wednesday. Volkswagen said that, in the first nine months of the current financial year, it performed well amid a “difficult” market environment. The carmaker said that, between January and September, sales revenue rose by 6.9% year-on-year, amounting to €186.6 billion. Operating profit before special items also increased, jumping 11.2% to €14.8 billion. “Despite the gain in market share, the Volkswagen Group anticipates that vehicle markets will contract faster than previously anticipated in many regions of the world,” the company said. In light of this, the company said that it expects deliveries to customers in 2019 to be on a level with the year prior. It had been expecting a slight increase. “In terms of the Group’s operating profit before special items, an operating return on sales of between 6.5% and 7.5% is predicted. Including special items, the Group projects an operating return on sales at the lower end of the range announced,” Volkswagen said. It expects sales revenue to exceed the prior year figure by as much as 5%, Volkswagen said. “The Volkswagen Group achieves a good performance amid a challenging market environment. The performance in the first nine months of the financial year makes us optimistic that we will achieve our full-year targets for 2019,” Frank Witter, Member of the Board of Management of Volkswagen AG responsible for Finance and IT, said in a company statement. “Continuous improvement in our profitability is key to mastering our ongoing transformation on our own. We will continue to work systematically towards this goal,” Frank Witter continued. Shares in Volkswagen AG (ETR:VOW3) were trading at +0.43% as of 16:32 CET Wednesday.