SAP indicated strong growth in demand for its cloud business has seen the company revise its 2025 revenue outlook to over €37.5bn ($41.2bn), an increase of €4bn ($4.4bn) ton its previous forecast. The German software maker also announced a share buyback of up to €5bn ($5.5bn) in the second half of 2023 on the back of the anticipated divestiture of its Qualtrics business.
German exports to countries bordering Russia have surged once again in Q1 2016, carrying concerns that such a rise could help Russians get around sanctions put in place over Moscow's action in Ukraine. The value of German exports to Russia fell by 47% in January to March compared with a year-on-year period, reflecting trade replacements with the European Union and other Western entities. Experts are keen to ascertain how much the increased trade represents sanctioned goods ending up in Russia, sold on by traders from neighbours, with Group of Seven leaders set to strengthen measures against Russia this week.
Euronext to launch 'dark' share trading by fourth quarter
Reuters
23-05-16 15:53
Euronext has revealed plans to introduce a new dark trading platform, as exchanges seek to challenge banks in off-exchange trading. The exchange's initiative will provide investors with an opportunity to trade large orders without rival counterparties distorting prices.
The Russian central bank has said that it will close any loopholes allowing foreign investors from countries that have imposed sanctions against Russia a chance to divest Russian asset holdings. Non-resident investors had been offloading billions of roubles worth of local debt holdings which meant local accounts were frozen aboard. But the central bank has actioned these concerns because it deemed it wrong to allow non-residents to reduce their Russian asset holdings while local investors have funds frozen abroad.
Italy posts bumper 7.5 bln euros trade surplus in March - Eurostat
Reuters
23-05-16 17:37
Italy recorded a trade surplus of €7.542bn ($8.30bn) with the rest of the world in March – the largest such surplus since July 2021 – according to European statistics office Eurostat. That's compared to a deficit of €757m in the same month last year, with exports climbing 4.7% YoY and imports falling 9.8%.
UBS has set aside $4bn for potential litigation and regulatory issues that might arise following its takeover of Credit Suisse. The transaction will allow UBS to absorb one-off losses related to the takeover. Jefferies predicted that restructuring costs, litigation provisions and the winding down of the non-core unit could add up to $28bn, although not all will be booked upfront. The deal, with more than 120,000 worldwide employees, is expected to create a global wealth manager with over $5tn in invested assets.
Japan's GDP figures for the first quarter are set to be the highlight for Asian markets on Wednesday, with expectations of annualised growth of 0.7%, the fastest rate in three quarters, leading to Tokyo stocks opening up 0.2%. China's weaker than expected economic data for April has resulted in slumps across Chinese financial assets, with April house prices also due on Wednesday. Although offshore investors have a new scheme to link Hong Kong with the mainland in order to access interest rate derivatives to help hedge their Chinese bond exposure, concerns about debt demand have cast extra doubt over the yuan's ability to gain reserve currency status.
A survey by the UK’s Financial Conduct Authority showed the number of Britons failing to meet credit commitments or miss payments on domestic bills rose from 4.2 million to 5.6 million in the six months to January 2023 due to recession. Research highlighted the "real impact" of inflation, said Sheldon Mills from the FCA. Experts also warned households are facing the "convergence of higher living costs and higher interest rates" pushing personal finances "right to the edge and sometimes over". The watchdog has urged lenders to provide tailored support for those struggling to meet payments.
Uncertainty over the US debt ceiling is set to continue as traders brace for April inflation data for the eurozone, with European markets predicted to open lower. UBS Group AG is poised to release its financial statement detailing the $17bn hit it took from the takeover of Credit Suisse Group AG. Meanwhile, BlackRock is requesting its staff return to the office at least four days a week as pandemic restrictions are lifted globally. The recession in Japan has lifted as the country rebounds post-pandemic to offset global economic challenges, while Warren Buffett increased his influence in Capital One Financial Corp.
The Airbus A320neo planes in the Singapore Airlines group powered by Pratt & Whitney engines are not being grounded for lack of spares, said Leslie Thng, the CEO of Scoot. His remarks on the subject came during an earnings call for Singapore Airlines, which announced positive results for 2019-20. The Pratt engines were in the news this month due to Go Airlines' bankruptcy, blamed on "faulty" power units. While Pratt denies any allegations of engine issues, IBA Aviation said earlier this month that 12% of neos with Pratt GTF engines were inactive, compared with 4% of those with rival engines made by CFM International.
Asian markets were muted in early trade on 19 May, with the US debt ceiling talks and mixed economic data weighing on sentiment. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.20% lower, while Australia's S&P/ASX 200 index was down 0.56%. However, Japan’s Nikkei spiked 0.68% higher, scaling above 30,000 for the first time since September 2021. Meanwhile, without an agreement on the looming U.S. debt default, in about two weeks, the government might not be able to pay its bills, with economists fearing the country will likely slide into a recession.
Wages in Australia grew at their fastest annual pace in a decade in Q1 2008, with the wage price index up 0.8% on the quarter, although this missed expectations for a 0.9% increase, the Australian Bureau of Statistics has said. Annual pay growth rose to 3.7%, compared with revised growth of 3.4% the previous quarter. However, with the central bank already hiking rates 375 basis points to an 11-year high of 3.85%, analysts believe it is unlikely policymakers will increase interest rates.
Spanish oil company Repsol is set to develop more than 1.7 GW of renewable energy projects in Italy costing around €500m ($550m). The company plans to stick to its renewable goals, despite some other European oil and gas firms expressing caution about pivoting to renewables following bumper profits on oil and gas prices. Repsol has a target to grow its renewable capacity to 6 GW globally by 2025, and 20 GW by 2030, up from around 2 GW today. The Italian portfolio will comprise nearly 1 GW of wind power and 825 MW of solar.
Investors in Deutsche Bank have called for the German lender to shift its resources away from its investment bank, even as they praised CEO Christian Sewing for the bank's recent stability. One investor said the bank's targets required a "strong tailwind", while another said the valuation of the bank was a "warning signal". Deutsche Bank has booked 11 consecutive quarters of profit, after years of losses. The comments were made at the bank's annual general meeting.
The European Central Bank (ECB) has said that its rate hikes are already affecting housing investment across the eurozone and that the impact is likely to get worse, although it will be smaller than in the US. Even further out, the ECB's benchmark rate is only seen coming back down to two percent, suggesting that 2.5% of the recent rate hikes could be permanent, proving a drag on housing spending. The ECB added that housing investment in the eurozone started to decline in Q2 of last year and fell by a cumulative 4% by the end of the year. However, the decline in the US started in Q2 of this year and house investment fell by around 21%.
Watches of Switzerland shares slump on forecasting sales decline
Reuters
23-05-17 08:01
Shares in Watches of Switzerland Group fell by 12% after the luxury watch retailer predicted a "modest" sales decline in the first quarter and noted that the challenging trading conditions experienced over the last six months look set to continue for the first half of the year. Rolex, Piguet and Cartier watches are among the brands that the company sells.
The FTSE 100 has fallen for the second day in a row, with the shares of London Stock Exchange Group (LSEG) slipping after an investor consortium sold shares in the market operator. Barclays Bank estimates the sale was worth around £2.7bn ($3.41bn). Meanwhile, shares of Experian dropped by 4.7% after the British credit data company forecast growth between 4% and 6% over the next year, below analysts' expectations.
India's Russian oil buying hits record high, slashes Mideast, Africa share
Reuters
23-05-17 12:38
India's oil imports from Russia reached a new monthly record high in April, according to data sources, as the country increasingly shuns Middle Eastern and African grades. The Indian state and private refiners bought 4.4% more Russian oil than the previous month, with 1.9 million bpd imported in April alone. Overall, imports from the C.I.S. countries, which include Russia, now make up 43.6% of India's purchases, with Middle Eastern grades accounting for about 44% and African oil at a meagre 3.4%.
UK-based pension schemes and other asset owners are raising concerns about how asset managers are voting on climate-related issues at European oil and gas firms. The Brunel Pension Partnership, Scottish Widows and The Church of England Pension Board are among those who have voiced unease that fund managers are prioritising short-term interests over pension funds' long-term interests. UK Asset Owner Roundtable Chair Faith Ward said that after the current proxy voting season, the group would meet with significant fund managers. It plans to commission an academic to investigate how fund managers interpret their clients' long-term interests at key meetings.
Ripple has acquired digital asset custody firm Metaco for $250m, in a move it hopes will attract institutional investors concerned about cryptocurrency storage. Metaco’s technology allows financial companies, including Citi, BNP Paribas and Societe Generale, to hold and manage digital assets. Ripple, which is the world’s sixth-largest cryptocurrency, with about $23bn in circulation, says more than half the purchase price was paid in cash and the balance in equity. The acquisition is Ripple’s first major deal and could be followed by other purchases.
