Latest news with #spite
Yahoo
15-05-2025
- Business
- Yahoo
Trump's tariff fog clouds outlook for Europe Inc after robust first quarter
By Samuel Indyk and Danilo Masoni LONDON (Reuters) -Europe Inc has weathered the turbulence sparked by U.S. President Donald Trump's tariff policies to deliver resilient first-quarter earnings, but in spite of the newly-minted trade truce, investors still face a fog of uncertainty. According to LSEG I/B/E/S, first quarter earnings are expected to have increased 1.9% from the same quarter a year ago, marking the fourth straight quarter of growth. Excluding the energy sector, earnings are expected to have risen 7.3%. The impact of Trump's tariffs and macro-economic uncertainty dominated corporate communications, while some companies warned about the strong euro and its impact on revenue. Cyclical parts of the market struggled, while bank earnings remained robust. Here are five key takeaways: UNCERTAINTY REIGNS Trump's tariff plans cast a shadow over earnings and companies mostly reacted by maintaining or pulling guidance, even as business got off to a relatively strong start to the year. "The last time we had this kind of uncertainty around guidance and companies pointing to a lack of visibility was Q1 in 2020 when COVID started," said Magesh Kumar Chandrasekaran, equity strategist at Barclays. "This has been the most unclear, or uncertain, earnings season from a guidance standpoint." Despite the relatively upbeat first quarter - where 60% of companies have beaten estimates, compared to a usual quarter of about 54% - consensus estimates for the full year have still been cut aggressively over the last two months. "It's going to be difficult to project first quarter earnings further down the year because so much has happened since the end of the quarter," said Kevin Thozet, member of the investment committee at Carmignac. MISSES PUNISHED BY MOST IN A DECADE As has been the case in recent quarters, earnings misses have been heavily penalised by the market, in part because expectations had been downgraded heading into reporting season. According to Goldman Sachs, the average relative price reaction for companies reporting below expectations has been a 2% drop, the most severe of the last 10 years. Rewards for earnings beats remain in line with the historical average. "There was probably expectation that some of the numbers in Q1 would have the benefit of front-loading and companies pulling activity forward because they were unsure what was going to happen in Q2," said Maarten Geerdink, head of the European equities team in fundamental equity at Goldman Sachs Asset Management. "So even though earnings expectations had dripped down, the market still believed they could beat these numbers. That's weighed pretty heavily on these misses." EURO RALLY ADDS TO HEADWINDS Not only were corporates worried about tariffs, but they sounded the alarm over the unexpected strength of the euro, as investors shunned dollar assets after Trump's tariff blitz. The single currency has surged about 10% against the dollar since its February trough, and although it has pulled back slightly since the U.S./China tariff pause, it remains elevated. This is a problem, given about 60% of revenues for companies on Europe's STOXX 600 index are generated abroad. "It's an issue for exporters. When you have tariffs and a stronger currency on top of that it becomes a double whammy," said Barclays' Chandrasekaran. "The sharp cuts (to earnings expectations) have come for the export-oriented part of the market," he added. Companies that flagged currency movements as a potential headwind in the year ahead included Europe's largest company SAP, Munich Re, Bayer, Prysmian, Unilever and L'Oreal. BANKS UNFAZED Bank earnings have largely weathered the market volatility around U.S. tariffs. Many lenders beat expectations and stuck to their 2025 forecasts – a clear departure from prevailing corporate caution. Even with pressures from moderating interest rates, their latest updates showed resilience in the face of global trade and macro uncertainties. UBS estimates nearly 90% of banks beat market consensus, largely driven by strong revenue performances. The sector trades cheaply based on various metrics, and even after a 28% surge this year, it remains in favour among investors attracted by high payouts and stronger balance sheets. According to BofA's European fund manager survey, banks reclaimed their spot as the most overweighted sector this month, with financial stocks expected to be the best performers this year. "Bank numbers are all very strong," said Carlo Franchini, head of institutional clients at Banca Ifigest. ENERGY EARNINGS DRAG Seven of the 10 major sectors tracked by LSEG I/B/E/S have seen growth in earnings relative to the first quarter of 2024, but energy is not one of them, with the sector expected to report earnings down 28% from the same period a year ago. "There's a very clear correlation between profitability and the oil price, and the oil price has come off," GSAM's Geerdink said. "It's a function of two things, lower economic activity and OPEC producing much more than anticipated." Oil prices tumbled to a four-year low last month on concerns about demand following Trump's tariffs, but have since rebounded slightly as trade tensions thawed. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
15-05-2025
- Business
- Reuters
Trump's tariff fog clouds outlook for Europe Inc after robust first quarter
LONDON, May 15 (Reuters) - Europe Inc has weathered the turbulence sparked by U.S. President Donald Trump's tariff policies to deliver resilient first-quarter earnings, but in spite of the newly-minted trade truce, opens new tab, investors still face a fog of uncertainty. According to LSEG I/B/E/S, first quarter earnings are expected to have increased 1.9% from the same quarter a year ago, marking the fourth straight quarter of growth. Excluding the energy sector, earnings are expected to have risen 7.3%. The impact of Trump's tariffs and macro-economic uncertainty dominated corporate communications, while some companies warned about the strong euro and its impact on revenue. Cyclical parts of the market struggled, while bank earnings remained robust. Here are five key takeaways: Trump's tariff plans cast a shadow over earnings and companies mostly reacted by maintaining or pulling guidance, even as business got off to a relatively strong start to the year. "The last time we had this kind of uncertainty around guidance and companies pointing to a lack of visibility was Q1 in 2020 when COVID started," said Magesh Kumar Chandrasekaran, equity strategist at Barclays. "This has been the most unclear, or uncertain, earnings season from a guidance standpoint." Despite the relatively upbeat first quarter - where 60% of companies have beaten estimates, compared to a usual quarter of about 54% - consensus estimates for the full year have still been cut aggressively over the last two months. "It's going to be difficult to project first quarter earnings further down the year because so much has happened since the end of the quarter," said Kevin Thozet, member of the investment committee at Carmignac. As has been the case in recent quarters, earnings misses have been heavily penalised by the market, in part because expectations had been downgraded heading into reporting season. According to Goldman Sachs, the average relative price reaction for companies reporting below expectations has been a 2% drop, the most severe of the last 10 years. Rewards for earnings beats remain in line with the historical average. "There was probably expectation that some of the numbers in Q1 would have the benefit of front-loading and companies pulling activity forward because they were unsure what was going to happen in Q2," said Maarten Geerdink, head of the European equities team in fundamental equity at Goldman Sachs Asset Management. "So even though earnings expectations had dripped down, the market still believed they could beat these numbers. That's weighed pretty heavily on these misses." Not only were corporates worried about tariffs, but they sounded the alarm over the unexpected strength of the euro, as investors shunned dollar assets after Trump's tariff blitz. The single currency has surged about 10% against the dollar since its February trough, and although it has pulled back slightly since the U.S./China tariff pause, it remains elevated. This is a problem, given about 60% of revenues for companies on Europe's STOXX 600 (.STOXX), opens new tab index are generated abroad. "It's an issue for exporters. When you have tariffs and a stronger currency on top of that it becomes a double whammy," said Barclays' Chandrasekaran. "The sharp cuts (to earnings expectations) have come for the export-oriented part of the market," he added. Companies that flagged currency movements as a potential headwind in the year ahead included Europe's largest company SAP ( opens new tab, Munich Re ( opens new tab, Bayer ( opens new tab, Prysmian ( opens new tab, Unilever (ULVR.L), opens new tab and L'Oreal ( opens new tab. Bank earnings have largely weathered the market volatility around U.S. tariffs. Many lenders beat expectations and stuck to their 2025 forecasts – a clear departure from prevailing corporate caution. Even with pressures from moderating interest rates, their latest updates showed resilience in the face of global trade and macro uncertainties. UBS estimates nearly 90% of banks beat market consensus, largely driven by strong revenue performances. The sector trades cheaply based on various metrics, and even after a 28% surge this year, it remains in favour among investors attracted by high payouts and stronger balance sheets. According to BofA's European fund manager survey, banks reclaimed their spot as the most overweighted sector this month, with financial stocks expected to be the best performers this year. "Bank numbers are all very strong," said Carlo Franchini, head of institutional clients at Banca Ifigest. Seven of the 10 major sectors tracked by LSEG I/B/E/S have seen growth in earnings relative to the first quarter of 2024, but energy is not one of them, with the sector expected to report earnings down 28% from the same period a year ago. "There's a very clear correlation between profitability and the oil price, and the oil price has come off," GSAM's Geerdink said. "It's a function of two things, lower economic activity and OPEC producing much more than anticipated." Oil prices tumbled to a four-year low last month on concerns about demand following Trump's tariffs, but have since rebounded slightly as trade tensions thawed.
Yahoo
15-05-2025
- Business
- Yahoo
Trump's tariff fog clouds outlook for Europe Inc after robust first quarter
By Samuel Indyk and Danilo Masoni LONDON (Reuters) -Europe Inc has weathered the turbulence sparked by U.S. President Donald Trump's tariff policies to deliver resilient first-quarter earnings, but in spite of the newly-minted trade truce, investors still face a fog of uncertainty. According to LSEG I/B/E/S, first quarter earnings are expected to have increased 1.9% from the same quarter a year ago, marking the fourth straight quarter of growth. Excluding the energy sector, earnings are expected to have risen 7.3%. The impact of Trump's tariffs and macro-economic uncertainty dominated corporate communications, while some companies warned about the strong euro and its impact on revenue. Cyclical parts of the market struggled, while bank earnings remained robust. Here are five key takeaways: UNCERTAINTY REIGNS Trump's tariff plans cast a shadow over earnings and companies mostly reacted by maintaining or pulling guidance, even as business got off to a relatively strong start to the year. "The last time we had this kind of uncertainty around guidance and companies pointing to a lack of visibility was Q1 in 2020 when COVID started," said Magesh Kumar Chandrasekaran, equity strategist at Barclays. "This has been the most unclear, or uncertain, earnings season from a guidance standpoint." Despite the relatively upbeat first quarter - where 60% of companies have beaten estimates, compared to a usual quarter of about 54% - consensus estimates for the full year have still been cut aggressively over the last two months. "It's going to be difficult to project first quarter earnings further down the year because so much has happened since the end of the quarter," said Kevin Thozet, member of the investment committee at Carmignac. MISSES PUNISHED BY MOST IN A DECADE As has been the case in recent quarters, earnings misses have been heavily penalised by the market, in part because expectations had been downgraded heading into reporting season. According to Goldman Sachs, the average relative price reaction for companies reporting below expectations has been a 2% drop, the most severe of the last 10 years. Rewards for earnings beats remain in line with the historical average. "There was probably expectation that some of the numbers in Q1 would have the benefit of front-loading and companies pulling activity forward because they were unsure what was going to happen in Q2," said Maarten Geerdink, head of the European equities team in fundamental equity at Goldman Sachs Asset Management. "So even though earnings expectations had dripped down, the market still believed they could beat these numbers. That's weighed pretty heavily on these misses." EURO RALLY ADDS TO HEADWINDS Not only were corporates worried about tariffs, but they sounded the alarm over the unexpected strength of the euro, as investors shunned dollar assets after Trump's tariff blitz. The single currency has surged about 10% against the dollar since its February trough, and although it has pulled back slightly since the U.S./China tariff pause, it remains elevated. This is a problem, given about 60% of revenues for companies on Europe's STOXX 600 index are generated abroad. "It's an issue for exporters. When you have tariffs and a stronger currency on top of that it becomes a double whammy," said Barclays' Chandrasekaran. "The sharp cuts (to earnings expectations) have come for the export-oriented part of the market," he added. Companies that flagged currency movements as a potential headwind in the year ahead included Europe's largest company SAP, Munich Re, Bayer, Prysmian, Unilever and L'Oreal. BANKS UNFAZED Bank earnings have largely weathered the market volatility around U.S. tariffs. Many lenders beat expectations and stuck to their 2025 forecasts – a clear departure from prevailing corporate caution. Even with pressures from moderating interest rates, their latest updates showed resilience in the face of global trade and macro uncertainties. UBS estimates nearly 90% of banks beat market consensus, largely driven by strong revenue performances. The sector trades cheaply based on various metrics, and even after a 28% surge this year, it remains in favour among investors attracted by high payouts and stronger balance sheets. According to BofA's European fund manager survey, banks reclaimed their spot as the most overweighted sector this month, with financial stocks expected to be the best performers this year. "Bank numbers are all very strong," said Carlo Franchini, head of institutional clients at Banca Ifigest. ENERGY EARNINGS DRAG Seven of the 10 major sectors tracked by LSEG I/B/E/S have seen growth in earnings relative to the first quarter of 2024, but energy is not one of them, with the sector expected to report earnings down 28% from the same period a year ago. "There's a very clear correlation between profitability and the oil price, and the oil price has come off," GSAM's Geerdink said. "It's a function of two things, lower economic activity and OPEC producing much more than anticipated." Oil prices tumbled to a four-year low last month on concerns about demand following Trump's tariffs, but have since rebounded slightly as trade tensions thawed. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
India Today
13-05-2025
- Science
- India Today
Gaganyaan Mission training to resume in 2026, a year before launch
India's much-anticipated Gaganyaan mission, which aims to send its first astronauts into space, is set to resume intensive crew training in 2026, a year ahead of its scheduled launch in early four astronaut-designates-Group Captains Angad Pratap, Ajit Krishnan, Prashanth Nair, and Shubhanshu Shukla-have become national icons as they prepare to make history as India's first crew in the recent Global Space Exploration Conference (GLEX), Pratap and Krishnan, both experienced Indian Air Force fighter pilots, reflected on their transition from military aviators to the public faces of India's space 'Your life does become a little public. People know you. Yes, but after a certain amount of time, it just subsides and grows on you because you start doing this on a regular basis and it's like a normal activity,' Pratap shared, noting the inspiration he draws from public officials confirmed to PTI that the astronauts' mission-specific training will restart 12 months before launch, focusing on advanced simulations, operational readiness, and survival program, conducted at India's Astronaut Training Centre in Bengaluru, builds on their earlier training in Russia and covers psychological, physical, and behavioral aspects crucial for coping with the rigors of spaceflight.'You need to be behaviourally trained on how to give your best in spite of the worst staring in your eyes,' Gp Capt. Pratap Group Captain Shubhanshu Shukla is set to become the first of the four to travel to space, joining a NASA-ISRO joint mission to the International Space Station on May 29. Indian astronaut Shubhanshu Shukla is set to go to space on May 29. (Photo: SpaceX) His participation will provide valuable experience ahead of Gaganyaan's crewed Gaganyaan mission plans to send a three-member crew into low-Earth orbit for several days before safely returning them to Earth. With critical uncrewed test flights scheduled for 2026 and astronaut training ramping up in 2026, India is set to join the elite club of nations with independent human spaceflight Watch
Business Times
06-05-2025
- Business
- Business Times
CATL starts gauging interest for potential US$5 billion Hong Kong listing
[HONG KONG] Contemporary Amperex Technology Co Limited (CATL), the world's largest maker of batteries for electric vehicles, began gauging investor interest for its Hong Kong listing from Tuesday (May 6), according to terms of the deal seen by Bloomberg News. CATL, as the electric-vehicle battery giant is known, is moving ahead with the deal after having passed the Hong Kong stock exchange's listing hearing. The company's listing date is to be determined, the terms showed, but Bloomberg News has previously reported that CATL was looking to start taking investor orders as early as May for a deal that may fetch at least US$5 billion. A US congressional committee in April called for Bank of America and JPMorgan Chase to withdraw from working on the planned listing. House Select Committee on the Chinese Communist Party Chairman John Moolenaar, in letters addressed to the two banks' chief executive officers, highlighted the company's inclusion in a Pentagon blacklist in January, citing its alleged links to the Chinese military. Bank of America and JPMorgan are still working on the offering, according to CATL's post-listing-hearing documents dated Tuesday. The Shenzhen-listed company is barrelling ahead with the offering in spite of the turbulent markets that have been whipsawing on the back of US President Donald Trump's tariffs. Given its scale, the deal's success will likely influence investor confidence in Hong Kong and Chinese companies, which have suffered amid all the market turmoil related to tariffs. At US$5 billion, CATL's float would be the world's biggest since cold-storage real estate investment trust Lineage's US$5.1 billion deal last year, and Hong Kong's largest in years, according to data compiled by Bloomberg. CATL's shares have fallen 13 per cent this year in Shenzhen, compared with a 4.2 per cent decline in the CSI 300 Index. BLOOMBERG
