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Breakfast Bites - Tue Apr 18, 2023

Rise and shine everyone

The big news today is Bank of America reporting. They’ve just reported a double beat with a Net Income increase of 15% YoY and Revenue increase of 13% YoY. Average loans are up by 7% led by commercial loan growth and credit card balances but, average deposits are down 7%. Net Charge Offs were $807million.

Johnson & Johnson beats by $0.18, beats on revs; raises and guides FY23 EPS above consensus, revs above consensus

Goldman Sachs Q1 $8.79 vs $8.06 Estimate; revs $12.22 bln vs $12.66 bln Estimate

US Markets are higher this morning, after quite the bullish close yesterday. Gold, Copper and Bitcoin are slightly higher as well. Oil took a bit of dip yesterday but has firmed up. Treasuries slightly higher.

Asia and Australia

  • Asian markets ended mixed Tuesday. Japan closed at an eight-month high, mainland China markets also higher but Hong Kong fell as tech stocks underperformed. South Korea snapped a seven-day winning streak; Australia, Taiwan, Singapore all down; India lower for a second day.

  • Q1 GDP expanded 4.5% y/y above consensus 4.0% and follows 2.9% in the previous quarter. Translated to sequential growth of 2.2% q/q vs consensus 2.0% and prior 0.0%

  • China regulators are to lower planned fine against Alibaba's Ant Group to around $728M from more than $1B.

  • Lithium in China May Be Bottoming Out as Low Margins Hit Producers

  • China Pumps $25 Billion in Funds to Banks While Keeping Key Rate on Hold

Europe, Middle East, Africa

  • European equity markets higher. Banks and Basic Resources outperform; Telecom and Utilities lag.

  • April German ZEW Economic Sentiment Indicator fell to 4.1 vs consensus of 15.3 and prior month reading of 13.0.

  • ECB speakers seem to have tamed stance over the weekend, perhaps following more subdued US inflation data. Markets still discount 75bps of further tightening

  • G7 coalition to keep Russian oil price cap at $60 per barrel

The Americas

  • House Speaker McCarthy proposes lifting debt ceiling until May 2024 in exchange for concessions on spending and other matters

  • JB Hunt reported disappointing results last night; JB Hunt's Q1 operating income missed by 4% on the back of a 5.5% revenue miss. Revenues are down 7% and EPs down 18%. Intermodal segment also saw heightened pressure on volumes; Company flagged deflationary price pressure for an industry that continues to face inflationary cost pressures. Pointed out that it is in a "freight recession".

  • JP Morgan's Kolanovic argues tech looks overbought, doesn't see sector benefiting from falling yields


(news taken from Reuters, FT, Bloomberg; Calendar from Trading Economics)


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