Breakfast Bites - Tue Apr 18, 2023
BoFA & J&J post double beat; China's GDP comes in higher; German Sentiment comes in lower; JBHT signals "freight recession"
Rise and shine everyone
The big news today is Bank of America reporting. They’ve just reported a double beat with a Net Income increase of 15% YoY and Revenue increase of 13% YoY. Average loans are up by 7% led by commercial loan growth and credit card balances but, average deposits are down 7%. Net Charge Offs were $807million.
Johnson & Johnson beats by $0.18, beats on revs; raises and guides FY23 EPS above consensus, revs above consensus
Goldman Sachs Q1 $8.79 vs $8.06 Estimate; revs $12.22 bln vs $12.66 bln Estimate
US Markets are higher this morning, after quite the bullish close yesterday. Gold, Copper and Bitcoin are slightly higher as well. Oil took a bit of dip yesterday but has firmed up. Treasuries slightly higher.
Asia and Australia
Asian markets ended mixed Tuesday. Japan closed at an eight-month high, mainland China markets also higher but Hong Kong fell as tech stocks underperformed. South Korea snapped a seven-day winning streak; Australia, Taiwan, Singapore all down; India lower for a second day.
Q1 GDP expanded 4.5% y/y above consensus 4.0% and follows 2.9% in the previous quarter. Translated to sequential growth of 2.2% q/q vs consensus 2.0% and prior 0.0%
China regulators are to lower planned fine against Alibaba's Ant Group to around $728M from more than $1B.
Lithium in China May Be Bottoming Out as Low Margins Hit Producers
China Pumps $25 Billion in Funds to Banks While Keeping Key Rate on Hold
Europe, Middle East, Africa
European equity markets higher. Banks and Basic Resources outperform; Telecom and Utilities lag.
April German ZEW Economic Sentiment Indicator fell to 4.1 vs consensus of 15.3 and prior month reading of 13.0.
ECB speakers seem to have tamed stance over the weekend, perhaps following more subdued US inflation data. Markets still discount 75bps of further tightening
G7 coalition to keep Russian oil price cap at $60 per barrel
The Americas
House Speaker McCarthy proposes lifting debt ceiling until May 2024 in exchange for concessions on spending and other matters
JB Hunt reported disappointing results last night; JB Hunt's Q1 operating income missed by 4% on the back of a 5.5% revenue miss. Revenues are down 7% and EPs down 18%. Intermodal segment also saw heightened pressure on volumes; Company flagged deflationary price pressure for an industry that continues to face inflationary cost pressures. Pointed out that it is in a "freight recession".
JP Morgan's Kolanovic argues tech looks overbought, doesn't see sector benefiting from falling yields
Calendars
(news taken from Reuters, FT, Bloomberg; Calendar from Trading Economics)
Hi @Ayesha, what's the likely impact on oil due to G7's cap?