Markets
Nikkei 225
39,209.50
▼ -357.50 / -0.90%
SSE Composite
3,057.38
▲ +37.90 / +1.26%
IBOVESPA
125,946.09
▼ -1,450.26 / -1.41%
Straits Times
3,183.61
▼ -33.30 / -1.04%
BMV IPC
56,565.92
▼ -264.40 / -0.47%
Dow Jones
37,983.24
▼ -475.84 / -1.24%
DAX 30
18,170.94
▲ +240.62 / +1.34%
BSE SENSEX
73,399.78
▼ -845.12 / -1.14%
FTSE 100
7,999.04
▲ +3.46 / +0.04%
JSE Top 40
68,988.50
▼ -220.44 / -0.32%
Last Week’s Highlights
JPMorgan misses interest income expectations
JPMorgan Chase reported a Q1 2019 profit of $13.42bn, beating estimates, but its shares fell 6% after forecasts for interest income fell short of analysts’ expectations. The bank slightly increased its estimate for net interest income (NII), but investors wanted more, hoping that the bank would reap greater benefits from a prolonged period of higher interest rates. The bank cited global conflicts, inflationary pressure and quantitative tightening as reasons for its cautious view on the economic outlook. Despite the warning, JPMorgan said that the US economy remained strong and that consumers still have excess money.
Wells Fargo’s Q1 beats estimates
Wells Fargo has reported better-than-expected Q1 earnings with total revenues of $20.86 billion, beating consensus estimates of $20.15 billion. The bank’s earnings per diluted share were $1.20, compared to $1.23 in the same period last year and surpassed analysts’ expectations. However, the bank’s net interest income showed a decline of 8% YoY to $12.23 billion in Q1, due to higher interest rates affecting funding costs and customers migrating to deposit products with a higher yield. The bank’s management stated that investments across its businesses boosted its revenue from non-interest sources, making up for the decline in net interest income.
Coming Up This Week
Salesforce to acquire Informatica
Salesforce is reportedly in discussions to acquire Informatica, a cloud-based data management company with over 5,000 active customers. The potential acquisition, which could be announced soon, would be Salesforce’s largest deal since it acquired Slack Technologies in 2020. The price being negotiated is said to be lower than Informatica’s current share price of $38.48. If the transaction is completed, it would be further evidence of increased merger and acquisition activity in the technology industry, which accounted for the majority of M&A transactions during the first quarter of 2023.
Tesla to lay off 10% of workforce to cut costs
Tesla is set to cut over 10% of its global workforce following a review of the company to reduce costs and increase productivity, according to a memo sent by CEO Elon Musk. The job cuts come as Tesla grapples with falling sales and an intensifying price war for electric vehicles, with its shares falling about 31% so far this year. The automaker’s latest annual report shows it had 140,473 employees globally as of December 2023.
