1. U.S. Markets Volatile after High Inflation Data
U.S. stocks remain volatile at record high levels after data published today showed consumer inflation unexpectedly increased for June. The dollar got stronger.
The S&P 500 remains flat with IT stocks moving up and financials falling. Apple and Microsoft are taking the technology sector higher and Financial shares are down after results from JPMorgan and Goldman Sachs reported mixed results for the April-June quarter.
Stoxx Europe is up by 0.043%
Dow Jones is down by 0.20%
NASDAQ is up by 0.09%
2. Covid Pandemic Boosts Productivity In The U.S: Goldman Sachs
Goldman Sachs on Monday said the pandemic situation helped the US economy to be more productive. Since the pandemic, the annualized growth in output per hour has risen 3.1%, compared with the previous 1.4%. This rise is led by sectors including IT, professional services, and wholesale trade.
3. The U.S June CPI Inflation Jumps 5.4%
The U.S Labor Department said on Tuesday, June CPI(Consumer
Price Index) Inflation rose 0.9% compared to 0.6% rise in May. The CPI rose 5.4% from the same month last year, the largest gain since August 2008. Core CPI Inflation increased 4.5% compared to last year, the largest increase since November 1991.
4. Boeing Cuts 787 Production Due To Structural Defect
Boeing said on Tuesday the company would cut the production of the 787 models as a new production-related structural defect has been discovered. The company will deliver only half of the models in the inventory. New production rates are not available now and at the time of writing the stock is down by 3%.
5. Temasek Reports 25% Rise In Portfolio Value
Temasek- a Singaporean holding company, owned by the Government of Singapore reported on Tuesday the portfolio value jumped 25% to $282 billion(Rs 21,03,636 crores) in the year ended March 2021. This is the highest in 10 years, after the 2% drop in the last year. Airbnb and food delivery business Doordash were some of Temasek’s portfolio companies that were listed.
6. Goldman Sachs Reports Better Than Expected Q2 Earnings
Goldman Sachs’s on Tuesday reported its Q2 earnings as $15.02 per share against $ 6.26 per share last year. Revenue increased to $15.39 billion(Rs 1,14,804 crores) against the estimate of $12.43 billion(Rs 92,724). 24% of total revenue in the quarter is from investment banking. At the time of writing the stock is trading 1.7% down in NYSE.
7. VW Lifts Profit Target with Battery and Software Boost Sales
German Automaker Volkswagen has hiked up profitability goal for 2025 as it plans to become the electric-car leader and expects a massive new revenue stream from software. Potential revenue from software is the reason why Tesla’s valuation is so high compared to other automakers.
The company which owns Audi, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, among others will target an 8% to 9% operating return on sales in 2025, up from an earlier target of 7% to 8% previously.
8. Treasury Secretary Expects Corporate Support for Global Tax Deal
U.S. Treasury Secretary Janet Yellen has said that companies in the country are likely to provide support for a worldwide change in corporate taxation of an accord endorsed by a Group of 20 nations over the weekend. Internal political pressure in the U.S. is currently slowing pushing of the accord in G20 summit in the weekend.
The deal is backed by 132 nations in talks led by the Organization for Economic Cooperation and Development.
9. Philippines Markets Fall with Fitch Rating Cut
The Philippine’s currency – Peso fell along with the general market after Fitch Ratings revised outlook on the company. Fitch downgraded the rating of the Philippines’ sovereign from negative to stable. The peso dropped 0.4% to 50.30 per dollar, a 13-month low. The Philippine Stock Exchange Index fell 1.2%.
Fitch said it believes there are downside risks to medium-term growth prospects as a result of the health crisis and restoring sound public finances as the pandemic recedes.
10. Chocolate Demand Moving up in Europe
Chocolate demand is sharply moving back up in Europe as lockdowns are lifting and consumers turn to buy more chocolates again. Cocoa futures trade slightly lower in New York are still 17% down from Feb 2020 levels.
Cocoa processing jumped 14% YoY in the April-Jun months, compared to last years’ lockdown months. This is the largest Q2 volume in more than a decade.