Morning News | Swissquote

SNB Lifts Rate By 25 Bps, Signals More Tightening

The Swiss National Bank continued its policy tightening with yet another hike to its interest rates, but at a slower pace as expected, and signalled more such moves to counter the rising inflationary pressures. Switzerland's central bank hiked its policy rate by 25 basis points to 1.75 percent on Thursday. The new rate applies from June 23. This was the fifth straight rate hike. However, the bank slowed the pace of rate hikes from half a percentage point increase in both March this year and in December 2022, and by 75 basis points in September 2022. 'It cannot be ruled out that additional rises in the SNB policy rate will be necessary to ensure price stability over the medium term,' the bank repeated.

23.06.2023

Fed’s Powell Says Interest-Rate Pause Is Expected to Be Temporary

Federal Reserve Chair Jerome Powell said the central bank was likely to raise interest rates in coming months after officials held them steady last week to study the effects of their previous, rapid increases to combat inflation. “Given how far we’ve come, it may make sense to move rates higher but to do so at a more moderate pace,” Powell said to the House Financial Services Committee on Wednesday. Fed officials see a risk that their past rate increases, together with recent banking-industry stresses, will eventually create a sharper-than-anticipated slowdown.

22.06.2023

FedEx Quarterly Sales Fall 10% as Shipping Struggles Continue

FedEx posted its third-straight drop in quarterly revenue as the delivery giant adapts to weaker demand after a pandemic-fueled boom in business. The company is in the early stages of combining its Express and Ground delivery networks into a single business to help cut costs. It has trimmed flight hours and parked aircraft. It also has sought to charge higher shipping rates to offset a decline in the number of packages shipped. FedEx executives aren't expecting a strong turnaround in business soon.

21.06.2023

Michelin Buys Flex Composite Group from IDI for $766 Mln

Michelin (-1%) confirmed that it has acquired Flex Composite Group from French private-equity firm IDI for 700 million euros ($766.1 million), including debt. The French auto supplier said that buying the Paris-based engineer of fabrics and films will increase its high-tech materials business revenue by around 20%. FCG reported EUR202 million in revenue for 2022, Michelin said. The company had an average organic growth rate of 11% with earnings before interest, taxes, depreciation and amortization margin of between 25% and 30% over the 2015-22 period, Michelin said.

20.06.2023

Intel Plans Semiconductor Plant in Israel and Poland

Intel (+1.6%) plans to build a $4.6 billion semiconductor assembly and test facility in Poland, giving the country a coveted place in the chip giant's growing European production footprint and boosting Europe's efforts at becoming more self-sufficient in chip production. The planned factory will be built near the southwestern city of Wroclaw, already a hub for American business in Poland. It would be the latest addition to a European chip supply line that leaders on the continent have pushed to bolster. Europe and the U.S. are trying to pivot from their recent reliance on Asian capacity by plying chip makers with subsidies and other economic incentives to build new factories on both sides of the Atlantic. Intel already has a wafer fabrication site in Ireland and another planned in neighbouring Germany.

19.06.2023

H&M 2Q Sales Increased 6% on Year, Shy of Forecasts

Sweden’s H&M Hennes & Mauritz on Thursday reported fiscal second-quarter sales that were slightly below expectations. The fashion retailer said sales for the quarter ended May 31 increased by 6% on year to 57.62 billion Swedish kronor ($5.38 billion), while net sales in local currencies were “flattish”. Analysts polled by FactSet had expected quarterly sales at SEK58.3 billion.

16.06.2023

Fed Holds Rates Steady but Expects More Increases

Federal Reserve officials agreed to hold interest rates steady after 10 consecutive increases but signaled they were prepared to raise rates next month if the economy and inflation don't cool more. New economic projections, released Wednesday after their two-day policy meeting, strongly suggested officials were leaning toward slowing down their increases rather than stopping them altogether.

15.06.2023

Bunge to Buy Viterra in $8.2 Billion Bet on North American Crops

U.S. grain trader and oilseed processor Bunge agreed to acquire Glencore-backed Viterra in an $8.2 billion deal that aims to expand the company's reach in North American crops. Bunge plans to combine its strength in soybean processing and South American crops with Viterra's network of North American grain-buying and shipping facilities. Executives said the deal, expected to close in mid-2024, will create a bigger player better equipped to weather supply-chain disruptions and agriculture's boom-and-bust cycles.

14.06.2023

Oracle Stock Extends Its Rally. Earnings Got a Boost From AI.

Oracle shares extended their rally Monday after the enterprise software company posted better-than-expected quarterly results. Shares were up 3.5% in after-hours trading. The stock closed up 6.1% in the day’s regular session. Heading into the announcement, investors were focused on the outlook for the company’s cloud business, which is getting a boost from generative AI companies. For the fiscal fourth quarter ended May 31, Oracle reported revenue of $13.8 billion, up 17% as reported and 18% in constant currency. Oracle had projected growth of 17% to 19% adjusted for currency.

13.06.2023