Earnings season. Roche, LVMH, Rio Tinto, Morgan Stanley, Intuitive Surgical, Fast Retailing, The Charles Schwab, Kinnevik, Mondi and Publicis are among companies reporting their earnings today.
A few results:
- Morgan Stanley Morgan Stanley recorded a 26% jump in earnings in the third quarter, much better than expected, thanks to a new record quarter for its trading activities, as the COVID-19 pandemic led to increased volatility on financial markets.
- Tiffany & Co unveiled its outlook for the fourth quarter, expecting a decline of about 5% in its sales, but an increase of about 5% in its income from operations. It also expects an increase in earnings per share of between 5% and 10%.
- Publicis exceeds expectations in Q3. The group reported sales of €2.34 billion in the third quarter, down -5.6% from the dreaded -8.9%. However, President Arthur Sadoun said he was "very cautious about the fourth quarter". However, Publicis expects an operating margin rate for 2020 slightly higher than the current analyst consensus of 14.3%.
- Roche confirms its 2020 outlook despite disappointing third-quarter figures. The laboratory was penalized by currency effects, which offset the performance of the diagnostics division.
- Metro AG raises its 2020 Ebitda forecast after stronger than expected performance.
Blacklisted. According to information obtained by Reuters, the White House is considering including China's Ant Group fintech in its blacklist of trading.
Another one bites the dust. Recycled plastics specialist Loop Industries denies claims by the bear fund Hindenburg Research that its plastic recycling technology is not as innovative as the company states. This is Hindenburg’s latest target, following its bombshell report on Nikola.
Boeing vs Airbus. After the WTO allowed the EU to add €4 bn in extra tariffs on US products in relations to subsidies granted to The Boeing Company, Washington said it would be ready to abandon its customs surcharges on European products... if Airbus reimburses the aid received.
In other news. Elon Musk announced a price cut for Tesla's Model S from USD 71,990 to USD 69,420 in the US. Lonza published its mid-term forecast. Big Hit Entertainment, the Korean label that manages, among others, the stars of K-Pop BTS, launched its IPO.