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26/04/22 Briefing


Credit Suisse disappointed. Its net loss of 273 million Swiss francs ($284 million) was far wider than the 115 million-franc estimate. The bank will replace its CFO, Asia head and top lawyer in an overhaul. At Deutsche Bank, FIC trading revenue rose to 2.84 billion euros, beating estimates, and it raised its 2022 investment bank revenue forecast. But expenses were more than expected and pretax profit missed a tad.

U.S. gas futures held around $7 after European prices surged yesterday. Bulgaria joined Poland on Russia's list of those to be denied natural gas - from today - over their refusal to pay in rubles. The Yamal-Europe line that supplies Poland also supplies Germany. Only Hungary has agreed to pay in rubles.

The euro steadied after falling to its lowest since April 2017 amid concerns for growth and Russia's energy supply threats. Asian stocks retreated, with the Kosdaq and Nikkei 225 leading losses. S&P 500 futures rebounded a bit after the underlying gauge hit a six-week low, and Euro Stoxx 50 contracts declined. Oil advanced, while Treasuries and gold fell. U.S. diesel closed at a record high.

Tech check. Alphabet fell postmarket after quarterly revenue missed, dragged by slower ad sales in Europe and YouTube. The Google parent also plans a $70 billion buyback. Texas Instruments plunged on a glum outlook, and the pain continued in Asia with Hynix missing estimates. Meta may also report slowing ad growth after market.

$1 billion breakup fee. That's what Twitter or Elon Musk will have to pay if either walks away. Investors were jittery. Twitter fell further below the $54.20 bid. Musk lost $32 billion from his Tesla shares, highlighting the risks to financing, which is backed in part by his holdings. Twitter's M&A bankers have a payday of as much as $130 million at stake, according to Dealogic.

Mercedes-Benz reported better-than expected earnings as rising car prices offset supply-chain issues. Glaxo and Lloyds beat. Iberdrola's results were in line with consensus.

The UN said Vladimir Putin "agreed in principle" to UN and Red Cross involvement in evacuating civilians from the besieged Azovstal steel plant in Mariupol. UN Secretary-General Antonio Guterres met the Russian president in Moscow and will meet Volodymyr Zelenskiy today.

The U.S. hasn't yet seen China provide "significant" military support for Russia's invasion, Antony Blinken said. Chinese drone maker DJI will suspend all business in Russia and Ukraine. U.S. weapons stockpiles could run out in several months if the Biden administration continues to send military equipment to Ukraine, defense experts told Congress. The U.S. said the Russian foreign minister's warning about the risk of nuclear war represented "the height of irresponsibility." Poland is discussing having Germany support its defense capabilities.

U.K. dividends are now seen reaching 92.2 billion pounds this year. That's the view of Link Group, which cited higher payouts from mining and oil companies, as well as bank dividends, for a 4.5 billion-pound hike to its January forecast. Adjusted underlying payouts - excluding special dividends and accounting for BHP's shift away from a primary London listing - will rise 15% to 85.8 billion pounds.

China's Covid pain is clearer from space. Port activity has fallen below levels seen during the first outbreak in 2020, and construction has plummeted, satellite data show. Factory output held up through the lockdowns in March and early April, but inventories are accumulating, SpaceKnow said, probably a sign of logistical snarls. Retail sales appear to track official numbers.

European energy earnings estimates are rising so fast investors can't keep up. Barclays strategists say energy firms will provide about half of the 10% earnings growth forecast in Europe this year, but their stocks have yet to reflect it. European oil and gas stocks are the biggest consensus overweight among European investors, according to BofA's latest fund managers survey.

Economic Outlook

U.K. ministers are split over proposals to slash some food tariffs in a bid to ease the cost of living crisis, a person familiar said. Jacob Rees-Mogg is pushing a plan to cut levies on products Britain doesn't cultivate domestically, such as rice, and is backed by Boris Johnson. But the Department for International Trade opposes the idea on grounds the U.K. would lose leverage in trade talks.

Overview

FTSE 100 - 7,379.48 (-0.0959%) DJ - 33,240.18 (-2.3768%) S&P500 - 4,175.20 (-2.8146%) Nasdaq - 12,490.74 (-3.9532%) EStoxx50 - 3,706.76 (-0.3993%) HSI - 20,008.94 (0.3742%) Nikkei - 26,386.63 (-1.1741%)

Currencies

GBPUSD - 1.2544 (-0.2386%) GBPEUR - 1.1845 (-0.2026%) EURUSD - 1.0591 (-0.4512%) EURCHF - 1.0222 (0.1457%) USDCAD - 1.2845 (-0.1401%) EURAUD - 1.4840 (0.647%) EURSEK - 10.4607 (0.1329%) EURNOK - 9.8241 (0.2454%)

Commodities

GOLD - 1,901.12 (-0.2703%) SILVER - 23.559 (0.2483%) COPPER - 448.55 (0.504%) PALLADIUM - 2,205.54 (0.8055%) CRUDE - 102.22 (0.531%) BRENT - 105.63 (0.6191%)



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