54 minutes ago
Burberry reports higher sales as demand picks up again in China
British luxury retailer Burberry started the earnings season with an 18% increase in sales for the quarter ended July 1.
Sales in Europe, the Middle East, India and Africa increased by 17%. However, the company has seen its biggest successes in Asia, with sales up 46% in mainland China, 39% in South Asia Pacific and 44% in Japan. Sales in the Americas fell 8%.
The company reiterated its full-year guidance and announced a £400m share buyback that is expected to be completed by the end of the calendar year.
See grafic…
Burberry stock price.
2 hours ago
Opening calls: European stocks open lower
European stocks should expect a lower opening price on Friday, according to IG data. Britain’s FTSE 100 is set for a 15.5-point decline to 7,427, while Germany’s DAX will open 14.4 points lower at 16,130. France’s CAC 40 and Italy’s MIB opened lower at 13.8 and 26 points, respectively.
– Jennie Reid
6 hours ago
CNBC Pro: This high-yield bond fund with “conservative” assets offers a 10% dividend
The fund manager behind a bond fund that offers a 10% dividend has predicted a “credit deterioration” for the broader economy in the near future.
However, the portfolio manager believes that the fund is well positioned for such a scenario while still generating above-market returns.
It is one of the few funds available to retail investors across Europe that is currently offering double digit returns.
CNBC Pro subscribers can read more here.
– Ganesh Rao
3 hours ago
Global fintech funding plummeted nearly 50% in H1 2023: S&P
Data from S&P Global Market Intelligence showed that global funding for fintech startups fell 49% year over year to $23 billion in the first half of 2023.
Deals totaled 1,178 in the first six months of 2023 — a 64% decrease from the same period last year.
Meanwhile, mega-funding rounds of more than $100 million have been scarce, with just nine in Q2 2023 compared to 23 in Q1 2023 and 55 in Q2 2022, S&P said.
The collapse of Silicon Valley Bank in March “dampened investor risk appetite,” S&P said.
“A trio of big deals — Stripe’s $6.87 billion, $1.5 billion from an Ant Group entity, and $850 million from PhonePe — masked the deteriorating fintech funding environment in the first half of 2023 said Sampath Sharma Nariyanuri, fintech research analyst at S&P Global Market Intelligence.
However, Nariyanuri expects “a rebound in public market valuations of technology stocks, a stabilization in interest rates and a pick-up in M&A activity” to boost the second half of 2023.
– Sheila Chiang
4 hours ago
According to the International Monetary Fund, China’s growth is slowing
The International Monetary Fund said growth in China is slowing due to weaker private investment as well as slowing exports and weaker domestic demand.
The organization’s spokeswoman, Julie Kozak, said in a briefing that “growth momentum in China has slowed recently, mainly due to weaker-than-expected private investment,” pointing to a recent fall in exports after falling in the had a strong performance in the first quarter of the year.
“The overall picture for growth in China is that of a slowing economy, and that’s consistent with the forecast we had in April,” noting that an “updated forecast” for China will be included in the IMF’s next World Economic Outlook will be.
– Jihye Lee
18 hours ago
The producer price index rises less than expected
The producer price index, a measure of what wholesalers pay for goods, rose 0.1% in June. Economists polled by Dow Jones were expecting a 0.2% increase. The core PPI, which excludes volatile food and energy prices, rose 0.1% — also less than expected.
— Fred Imbert
7 hours ago
Australia appoints Michele Bullock as new central bank governor
Reserve Bank of Australia Deputy Governor Michele Bullock has been appointed as the new central bank governor, the country’s Treasury announced on Friday.
She succeeds incumbent Philip Lowe, whose term of office expires on August 17, almost completing his 43 years at the bank. Treasurer Jim Chalmers described Bullock’s appointment as “the optimal balance between providing exceptional experience and expertise and offering a new leadership perspective.”
Bullock’s appointment would mean the RBA will have a vacant post as deputy governor, which the government says it will fill in the coming months.
— Lim Hui Jie
7 hours ago
Fed’s Waller says two more rate hikes are needed to bring inflation down
Federal Reserve Board Governor Christopher Waller said two more rate hikes are needed to bring inflation down to its target.
“I believe two more 25 basis point increases in the target range are needed in the four remaining sessions of this year to keep inflation on target,” he said at an event at New York University on Thursday.
He called the latest CPI reading, which showed a slowing rate of inflation, as “good” news, adding: “A single data point doesn’t make a trend.”
“I need to see this improvement continue before I’m confident that inflation has slowed,” he said.
– Jihye Lee
6 hours ago
CNBC Pro: ‘Undeniably Huge’ Opportunity: Bank of America Names Global ‘Winners’ in Generative AI
Bank of America has described the AI opportunity in the software industry as “undeniably enormous” and has rated European companies in the sector.
“We see Gen AI as an opportunity for the software industry to deliver potential revenue gains through an enhanced value proposition and data monetization, in addition to productivity improvements,” the bank said.
CNBC Pro subscribers can read more here.
– Lucy Handley
13 hours ago
The S&P 500 is up more than 3% since rate hikes began
In another positive sign for the market, the S&P 500 is now up 3.3% since the Fed began raising rates in March 2022. The move comes as traders are saluting the prospect that the central bank can rein in inflation without plunging the economy into recession.
See grafic…
SPX since Fed rate hikes began
“For the first time in 2023, we’re currently being asked by multiple clients if we think the S&P 500 is now on track to make a new high before the end of the year. “Yes,” I agree, Goldman Sachs’ John Flood wrote in a comment Note Wednesday.
— Fred Imbert