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By Swissquote Analysts
Morning News

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.

By
Nadine PEREIRA
Morning News

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.

By
Mathieu VILLARD
Morning News

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.

By
Mathieu VILLARD
Morning News

Novartis To Buy Chinook Therapeutics in Up To $3.5 Bln Cash Deal

Novartis announced its agreement to acquire U.S. Chinook Therapeutics for a total value of up to $3.5 billion. The deal includes $3.2 billion upfront or $40 per share in cash upon closing, plus a contingent value right with a value of up to $0.3 billion or $4 per share. This is payable in cash upon the achievement of certain regulatory milestones. The transaction has been approved by Novartis and Chinook Boards, and is expected to close in the second half of 2023, subject to customary closing conditions. The acquisition is fully in line with Novartis strategy to focus on innovative medicines and will significantly expand its renal portfolio, complementing the existing pipeline.

By
Mathieu VILLARD
Morning News

Novartis’s Sandoz Sets Out Growth Plan Following Proposed Spinoff

Novartis’s off-patent medicines division Sandoz set out its growth plans as a standalone company following the proposed spinoff, saying it is well positioned to continue delivering mid-single digit sales growth. With an increase of 1.0 per cent, Novartis performed markedly better than the European pharmaceutical sector (+0.1%).

By
Mathieu VILLARD
Morning News

Inditex Stock Up On Q1 Profit Growth

Shares of Inditex SA were gaining 5.7 percent in Spain after the clothing firm that owns Zara reported Wednesday significant growth in its first-quarter profit on higher revenues as well as the absence of a prior year provision. Regarding the second quarter to date, the company revealed its store and online sales in constant currency between May 1 and June 4 increased 16 percent versus the same period in 2022. Inditex indicated seeing strong growth opportunities. Spring/Summer collections continue to be very well received by customers. For the fiscal year 2023, the company expects a stable gross margin, plus or minus 50 basis points. At current exchange rates, Inditex forecasts a negative 2.5 percent currency impact on sales. As announced earlier, Inditex's Board of Directors will propose to the Annual General Meeting a dividend for fiscal 2022 of 1.20 euros.

By
Mathieu VILLARD
Morning News

Apple Takes on Meta in Race to Make Headsets the Next Big Thing

Apple’s new mixed-reality headset is a bet that the future of computing is the metaverse. A lot of other companies think so too. The iPhone maker’s $3,499 Vision Pro headset, set to go on sale next year, joins a crowded field from rivals such as Meta Platforms, TikTok owner ByteDance, Samsung Electronics and Sony. They are predicting that entertainment, work and leisure will take place in virtual reality or with digital content interspersed with the real world. Most of the companies that have launched products so far have done so with the goal of keeping prices low enough to entice millions of new users.

By
Nadine PEREIRA
Morning News

Kuehne+Nagel replace Credit Suisse in the Swiss Market Index

The imminent takeover of Credit Suisse by UBS will lead to extraordinary adjustments in the indices of the Swiss stock exchange next week. The shares of Kühne+Nagel (-1.6%) will join the 20 stocks included in the Swiss Market Index (SMI). The stocks of the logistics company from Schindellegi are thus in the top Swiss stock market league for the first time. Thus, with UBS, only one bank remains in the SMI. The shares of Credit Suisse have been in the index since the SMI was founded in 1988, at that time still under the name Schweizerische Kreditanstalt (SKA).

By
Mathieu VILLARD
Morning News

UBS Expects to Complete Credit Suisse Acquisition as Early as 12 June 2023

UBS expects to complete the acquisition of Credit Suisse as early as 12 June 2023. At that time, Credit Suisse Group AG will be merged into UBS Group AG. Completion is subject to the registration statement, which covers shares to be delivered, being declared effective by the US Securities and Exchange Commission, and to satisfaction, or waiver by UBS, of other remaining closing conditions. Upon completion, Credit Suisse shares and American Depositary Shares (ADS) will be delisted from the SIX Swiss Exchange (SIX) and the New York Stock Exchange (NYSE).

By
Mathieu VILLARD
Morning News

Remy Cointreau Expects Flat Margins in FY 2024 as US Drinkers Take It Slower

Remy Cointreau said that it expects little growth in margins or sales in the new fiscal year as U.S. consumption drops from recent highs. The French cognac maker said it anticipates stable profitability and sales in fiscal 2024 as a postpandemic boom in the U.S. fades, balanced by acceleration in the key China market and other regions.

By
Mathieu VILLARD