Latest news with #euro-US
Business Times
11-08-2025
- Business
- Business Times
Currency traders focus on Australian dollar and euro for bearish US dollar bets
Options traders are using currencies such as the Australian dollar and euro to express bearish US dollar views after recent disappointing American economic data. The Aussie is being supported by the Reserve Bank of Australia's 'cautious and gradual' stance on easing, as well as improving risk sentiment. The euro's allure has grown from expectations an increase in regional defence spending will support the eurozone economy, and a more hawkish-sounding European Central Bank. Meanwhile, things look rockier for the US dollar as data showed jobs growth missed expectations in July with downward revisions to prior months as well. Standard Chartered Bank has seen 'a lot of interest' in euro-US dollar and Australian dollar-US dollar call options after non-farm payrolls, according to Saurabh Tandon, global head of foreign-exchange options in Singapore. The market is now 'focusing on upcoming events' such as US inflation and the Federal Reserve's Jackson Hole symposium, he said. The rise in bullish Aussie and euro options signals growing conviction that the US dollar will weaken further, while also showing that traders are becoming more selective in positioning amid tariff risks and deteriorating data from the world's biggest economy. Some investors had begun to turn bullish on the US dollar as countries started to make trade deals with the US, and this signals a reversal of that momentum. 'Following the EU-US trade deal announcement, we saw directional demand for dollars via options, but that theme was quickly snubbed by the negative non-farm payroll revisions,' said Jamie Sanders, director of foreign-exchange options trading at RBC Capital Markets in London. The trading volume of Australian dollar call options expiring by September, which gain in value if the currency rises versus the greenback, was triple that of bearish put options on Aug 7, data from CME Group's options central limit order book showed. Euro call option volume was 77 per cent larger than that of puts that same day. National Australia Bank has seen a pickup in demand for bullish Australian dollar option wagers, as well as for those on the New Zealand dollar. 'Following the recent non-farm payrolls, we've observed significant activity in AUD/USD and NZD/USD short-dated call options, in anticipation of a busy data week, including the US CPI release and the RBA meeting.' said Con Davelis, Sydney-based head of FX options at the bank. BLOOMBERG
Yahoo
15-05-2025
- Business
- Yahoo
Brenntag SE (BNTGF) Q1 2025 Earnings Call Highlights: Navigating Economic Challenges with ...
Sales: EUR4.1 billion, stable compared to the prior year period. Operating Gross Profit: EUR1.0 billion, increased by 2% year-over-year. Operating EBITDA: EUR355 million, up 2.5% year-over-year. Operating EBITA: EUR264 million, stable compared to the prior year. Free Cash Flow: EUR163 million, compared to EUR175 million last year. Earnings Per Share (EPS): EUR0.93, down from EUR0.97 last year. Gross Profit Margin (Brenntag Specialties): 23.2%, increased by 90 basis points. Operating EBITA (Brenntag Specialties): EUR111 million, declined by 1%. Operating Gross Profit (Brenntag Essentials): EUR725 million, increased by 3%. Operating EBITA (Brenntag Essentials): EUR179 million, 3.7% below the prior year. Leverage Ratio: Net debt to operating EBITDA at 1.9 times. Warning! GuruFocus has detected 1 Warning Sign with BSP:VTRU3. Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Brenntag SE (BNTGF) reported stable sales of EUR4.1 billion for Q1 2025, consistent with the prior year period. Operating gross profit increased by 2% to EUR1.0 billion, indicating effective margin management despite pricing pressures. Operating EBITDA rose by 2.5% year-over-year to EUR355 million, showcasing positive operating leverage. The company generated a free cash flow of EUR163 million, demonstrating strong cash management. Cost containment measures are on track, contributing significantly to cost development and supporting targeted savings for 2025. The business environment remains challenging with economic uncertainty and geopolitical volatility impacting performance. Sequential performance did not meet initial expectations, with Q1 results affected by dampened business sentiment. Earnings per share decreased to EUR0.93 from EUR0.97 in the previous year, reflecting pressure on profitability. The US economy contracted by 0.3% in Q1 2025, posing a risk to future demand and economic stability. The unresolved global tariff discussions and unfavorable euro-US dollar FX rates are expected to impact earnings, with guidance now at the lower range of EUR1.1 billion to EUR1.3 billion. Q: What are the risks to Brenntag's updated EBITA guidance, and how does the euro-US dollar FX rate factor into this? A: Christian Kohlpaintner, CEO, stated that risks include worsening geopolitical situations and economic environments, which are beyond their control. The euro-US dollar FX rate is a significant factor, with the guidance assuming a rate of 1.05, but current rates are at 1.12, impacting earnings. The company plans to accelerate its cost containment program to mitigate these risks. Q: Does the trading in April and early May give confidence that Q2 EBITA can be better than Q1? A: Christian Kohlpaintner, CEO, noted that typically Q2 is better than Q1 due to seasonality. Despite a mid-March slowdown, demand has not fallen significantly in April, providing some confidence for sequential improvement from Q1 to Q2. Q: Is the sequential increase in gross profit per tonne due to smaller, more frequent orders, or other pricing strategies? A: Christian Kohlpaintner, CEO, explained that for Brenntag Specialties, the increase is due to pricing and margin management, not mix effects. For Brenntag Essentials, there is pressure on industrial chemical prices, with some mix effects impacting gross profit per unit. Q: Can you clarify the guidance regarding the FX rate and its impact on the lower range of the EBITA guidance? A: Thomas Reisten, CFO, clarified that the guidance range of EUR1.1 billion to EUR1.3 billion was based on an FX rate of 1.05. However, the current rate of 1.12 has been factored into the expectation of earnings being at the lower range of the guidance. Q: What is the extent of the talc liabilities, and are there other similar risks? A: Thomas Reisten, CFO, mentioned that a provision for talc liabilities is in the low triple-digit million range. The company has accounted for all related risks on their balance sheet. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
