Turmoil in Hong Kong Hits the swiss watchmakers first half sales. Chipmakers gain ground as Dialog Semiconductor raises its guidance and asml forecasts solid growth for the rest of the year good morning top of the hour on street signs. Lets go over some price action weve had over the last 24 hours ending with the wall street moves yesterday. What we saw on wall street is u. S. Equities slipped for the first session in four days the dow ending about 23 points lower. A tenth of a percentage point. A fraction weaker as we get into the heart of the earnings season the drops were bigger for the s p and nasdaq, but still about a third and a fourth of a percentage point the focus has been on earnings season with some of the key banks reporting yesterday. Goldman sachs, jpmorgan, wells fargo looking head we also get bank of america one of the ones you want to watch out for. As we were talking about, the focus is back on trade more commentary out of the u. S. President suggesting that they coul
China. Xi jinping ahead of talks with President Trump before the g20. Bayer shares jump as the German Chemicals group bolsters its legal team to address a multibillion dollar litigation challenge around its roundup we weed killer. And h m reports sales of its summer collection are off to a strong start with the firms shares on course for their best day in three months. Good morning a bit of italian data this morning. Italy june Consumer Confidence numbers are just out theyve fallen to 109. 6 verses a consensus of 111. 3 this is the lowest italian Consumer Confidence number since july 2017. Overall Business Confidence has also fallen to 99. 3 versus 102 in may Manufacturing Confidence has also fallen to 100. 8, slightly below consensus of 101 also lower than in may that will paint a picture of slowing confidence in italy. That is the picture for euro, returning flattish around 1. 1370 there hasnt been Much Movement in the euro. The story has been one of dollar weakness rather than Euro
Tanker over suspected sanctions violations samsung has warned its operating profit dropped nearly 56 during the Second Quarter, but the phonemaker did still Beat Estimates thanks to oneoff games in its display division. If you look at some of the major chipmakers across europe, you will see it, they are all very significantly in the red my colleague, Elizabeth Schulze is here to provide more detail what did this filing say samsung issuing guidance for Second Quarter guidance, well be getting those at the end of july, an early look suggests its operating profit is 5 5. 6 billion. That was above expectations of 5. 1 billion, but a 56 drop. Revenue was helped a bit by that oneoff reimbursement. Most Analysts Expect that display reimbursement came from apple. The important thing to note here, theres a couple of risk factors. The first is the general tensions between the u. S. And china the trade agreement, which is weighing on the overall outlook for the electronic sector and for demand in
Movement President Trump threatens owe obliteration if iran attacks anything american in the latest war of words between washington and tehran well speak to u. S. Treasury secretary Steve Mnuchin within the hour and thyssenkrupp shares get a lift on a report of a possible offer by Engineering Firm kone for the elevator unit. And european chip stocks rise after micron beats Third Quarter forecasts and resumes shipments to huawei despite a washington ban on the chinese tech giants. Good morning the Federal Reserve chairman, Jerome Powell, has warned that the outlook for the u. S. Economy has deteriorated since early may thanks in part to uncertainty about Global Growth and trade. Powell said publicliey during a speech that the Federal Reserve remains independent. He insisted the central bank has yet to decide when is the right moment for a rate cut. The question my colleagues and i are grappling with are whether these uncertainties will continue to weigh on the outlook and thus call for
Equities higher on renewed helps elsewhere for a potential u. S. china trade deal. That confidence fails to spark european market. President trump takes aim at Jerome Powell ahead of todays policy meeting saying he could consider demoting the central bank head. And trump also blasts ecb president mario draghi and his stimulus plans that sent the euro lower against the dollar. There are risks mainly because of brexit, also because of the trade conflict. Even the persistence of these risks are a risk in itself President Trump has increased pressure on the Federal Reserve to cut Interest Rates. Bloomberg reported the white house in february examined the possibility that the administration could demote Jerome Powell from his role as fed chair. The news agency reported that the white house legal review had made a case to replace powell as fed chair but said the move would be open to a legal challenge. Trump also hit out at the ecb after mario draghi hinted at further stimulus for the eurozo