Stock market euphoria after report on gas delivery
Gas supplies through the Nord Stream 1 pipeline are expected to resume on Thursday.
(dpa) Speculations about a scheduled resumption of Russian gas supplies triggered a rally on the German stock market on Tuesday. The DAX ended trading up 2.69 percent to 13,308.41 points. According to Reuters news agency, which cites two sources familiar with the export plans, Russian gas supplies through the Nord Stream 1 pipeline are expected to resume on Thursday after the completion of planned maintenance work. The MDAX also jumped up and closed 2.29 percent higher at 26,515.53 points. The report also caused stock market euphoria across Europe.
Despite significant sales growth, Rieter slides into the red
Rieter had to spend a lot of money in order to deliver some of the machines that had been ordered on time.
df.
The shareholders of the spinning machine manufacturer Rieter were warned. At the end of May 2022, the Winterthur-based company announced that a loss was to be expected in the first half of the year in terms of operating and consolidated earnings. Now the shareholders know the details: the deficit in the operating result is CHF 10 million. At the net profit level, the half-yearly accounts even closed with a deficit of CHF 25 million.
The losses resulted even though Rieter increased sales by no less than 55 percent to 621 million Swiss francs. According to the company, significant increases in material costs and additional expenses in connection with compensating for bottlenecks in the procurement of materials weighed on profitability. In other words: Rieter had to spend a lot of money in order to at least partially deliver the ordered machines on time.
Nevertheless, the company was forced to postpone pre-production deliveries worth a three-digit million amount to the second half of the year. Due to a lack of materials, the corresponding machines could not be finished.
As of June 30, 2022, the order backlog reached a record level of over CHF 2.1 billion. The most recent incoming orders, however, fell by 11 percent to CHF 869 million compared to the same semester last year. For the current year as a whole, the company has reduced its sales forecast from CHF 1.5 billion to CHF 1.4 billion. The operating result and the group result are expected to be positive, but a decline compared to the previous year’s level is to be expected due to the cost increases.
As decided by the Rieter Board of Directors, the sales process for the remaining part of the company premises at the Winterthur headquarters is to be started. It is around 75,000 square meters. This does not include the area in which the company’s new campus will be built.
Market researchers: Samsung and Apple defy smartphone downturn
The market share of Apple’s iPhones increased to 17 percent in the second quarter.
(dpa) According to calculations by experts, the two largest smartphone providers Samsung and Apple have recently expanded their market shares in a business that has shrunk overall. At Samsung, the market share in the second quarter rose from 18 to 21 percent year-on-year, as the analysis company Canalys reported on Monday. The market share of Apple’s iPhones increased from 14 to 17 percent. Overall, sales have shrunk by nine percent to less than 300 million smartphones.
Chinese manufacturers Xiami, Oppo and Vivo, meanwhile, saw market share fall given weak demand in their home market. Xiami’s share of global smartphone sales fell from 17 to 14 percent within a year.
Because of inflation, consumers have less discretionary income, stressed Canalys analyst Toby Zhu. At the same time, however, the situation with the months-long component bottlenecks is easing.
Farnborough Air Show: Delta Air Lines orders 100 Boeing jets
A 737 Max-8 from the American manufacturer Boeing. The larger model, the Max-10, has not yet been approved.
kca./(dpa)
The American aircraft manufacturer Boeing has received a long-awaited major order at the start of the air show in Farnborough, UK. The airline Delta Air Lines signed an order for 100 examples of the Boeing 737 Max-10 medium-haul jet, the two sides announced on Monday at the exhibition south-west of London. In addition, Delta secured purchase options for an additional 30 machines. According to the price list, the 100 machines ordered by Delta have a total value of around 13.5 billion US dollars. However, high discounts are common for large aircraft orders.
However, the Max-10 ordered by Delta is still not certified. The American government expects Boeing to upgrade the machines technically. The background to the conflict are new safety precautions and regulations in the wake of two crashes by 737 Max planes, in which a total of 346 people died in 2018 and 2019. If the Max-10 is not certified by the end of the year, the program could be discontinued – but airlines have already ordered more than 600 of the machines.
Russia fines Google $370 million
(Reuters) Google’s parent company Alphabet has been fined 21.1 billion rubles ($373 million) by a Russian court. Google has repeatedly failed to remove content that Moscow considers illegal, the Interfax news agency said on Monday. It was the second fine based on a percentage of Google’s sales in Russia. At the end of last year, Moscow fined Google more than 7 billion rubles. Google didn’t comment on the buses.
Goldman Sachs beat expectations despite slump in earnings
(dpa) The American investment bank Goldman Sachs suffered a slump in profits in the second quarter despite significantly higher proceeds from the trading business. In the three months to the end of June, the financial group earned a bottom line of 2.9 billion dollars, 47 percent less than a year ago. In view of a bleak economic outlook, Goldman significantly increased risk provisions for bad loans. In addition, the income from classic investment banking, which includes supporting companies with IPOs as well as takeovers and mergers, collapsed.
The high level of nervousness on the financial markets, where many investors were reorganizing their portfolios because of fears of inflation and recession, caused the securities trading business to boom. Goldman CEO David Solomon spoke of “solid results”. But overall, the money house’s income fell by 23 percent to $ 11.9 billion. The stock reacted before the market with price gains of around four percent. Analysts had expected weaker numbers on average. Goldman Sachs also announced an increase in quarterly dividends from $2.0 to $2.5 per share.
Higher loan loss provisions squeeze Bank of America profits
(dpa) Bank of America earned significantly less in the second quarter due to higher reserves for bad loans and legal costs. Profits fell 33 percent year-on-year to $6.2 billion, the major bank announced on Monday. Revenues rose 6 percent to $22.7 billion. However, strong growth in some business areas such as securities trading could not offset higher costs.
The bank increased risk provisions for loans at risk of default due to the gloomy forecasts and also set aside around 425 million dollars for unspecified legal conflicts. It didn’t go well in all divisions either. In investment banking, for example, revenue collapsed due to a lack of IPOs and mergers. The share initially reacted to the numbers with price losses before the market, but quickly recovered.
DKSH with significantly higher net profit in the first half of the year
no. The Zurich-based service and retail group DKSH grew strongly in the first half of 2022. Sales rose by 2 percent year-on-year to CHF 5.6 billion, and operating profit increased by a full 16.6 percent to CHF 153.3 million.
The company’s sales are now only slightly below the pre-corona level. DKSH thus exceeded analysts’ expectations. Only in the consumer goods area was there no growth in sales, which could be compensated for with product price increases.
The Credit Suisse share continues to lose and briefly falls below five francs
Credit Suisse continues to go downhill.
nel./(awp) Credit Suisse stocks continued to plummet on Friday. In the morning, the big bank’s shares even fell below the five-franc mark for a short time.
The titles have been in a downward trend since February, during which time they have already lost more than 40 percent in value. As of Friday morning, the loss is 1.8 percent. The shares of Partners Group (-2.6 percent) also fell significantly. The asset manager attracted further new money in the first half of the year and confirmed the forecast for the year. However, the environment for investments and sales has clearly clouded over.
Overall, the Swiss stock market was somewhat firmer in early trading on Friday. Traders speak of a tentative countermovement after the heavy losses. According to the market, the specifications from the USA speak for a recovery. Wall Street was able to limit the losses significantly in late trading. In addition, interest rate concerns have subsided somewhat. With Waller and Bullard, two Fed bankers would have said exactly what the market wanted to hear after the surprisingly strong inflation data. A recession is unlikely due to the strong labor market and inflation must be fought, but not by raising the key interest rate by 100 basis points.
At 9:15 a.m., the SMI was up 0.52 percent to 10,856.04 points. The SLI, which includes the 30 most important stocks, gained 0.41 percent to 1657.67 and the broad SPI rose 0.45 percent to 13,992.56 points. In the SLI, 6 losers face 24 winners.
The crypto lender Celsius has a billion-dollar hole in its balance sheet
Crypto lender Celsius has suffered heavy losses.
(Bloomberg) Insolvent crypto lender Celsius Network has disclosed that there is a hole of around $1.2 billion in its balance sheet.
According to court documents, the platform had assets of around $4.3 billion and liabilities of $5.5 billion as of Wednesday. The company suffered unexpected losses, among other things, when 35,000 Ether tokens were lost because the private keys that validate the sending and receiving of cryptocurrencies were lost at staking provider StakeHound.
“The amount of digital assets on the company’s platform grew faster than the company was prepared to deploy them,” company CEO Alex Mashinsky said in a affidavit. “As a result, the company made decisions that later turned out to be bad decisions.”
Celsius is considering selling assets, but also considering participation from investors providing equity. The company said in a statement that revenue from Bitcoin mining could also be used to reduce the deficit.
Celsius has around 1.7 million registered users, including around 300,000 active users with a balance of more than $100.