Wed March 27, 2024, 12:17 p.m. EDT
S4 Capital shares fall 8% following earnings warning
Shares in digital marketing agency S4 Capital fell 15% before narrowing their losses slightly after warning of a further decline in revenue this year in a still-challenging advertising market.
S4 Capital reported a 25% drop in core profits in 2023 as technology clients cut advertising spending. The company’s shares were trading down about 8% as of 4:15 p.m. London time.
“Customers are cautious,” founder and executive chairman Martin Sorrell told CNBC on Wednesday, citing geopolitical and economic uncertainty.
—Karen Gilchrist
Wed March 27, 2024, 9:34 a.m. EDT
The S&P 500 opens higher after three consecutive losing sessions
Wed March 27, 2024, 8:27 a.m. EDT
‘Everything looks rosy’ about stock markets and profits, but trouble lies ahead, economist says
The current economic soft landings are the calm before the storm, according to Ludovic Subran, chief economist at Allianz.
Wed March 27, 2024, 7:49 a.m. EDT
Stocks on the move: H&M, Diploma, DS Smith
Retail group H&M continued to post gains in late morning trading, up 13% after analysts hailed significantly better operating results and gross margin in the fiscal first quarter.
“We believe that H&M has taken various steps to improve its omnichannel offering to customers, which should enable it to gain significant traction in key markets. But we think H&M is truly in “exchange sales for profits” mode, which leads to margin improvement. but some pressure on volumes,” Richard Chamberlain, an analyst at RBC Capital Markets, said in a note.
“As such, we believe that supply gains may need to be reinvested at some point to increase volume as it appears to be losing some. [like-for-like] share in the main markets.
Retail group Diploma also posted strong gains, up 11%, after announcing its £236 million ($298 million) acquisition of US company Peerless Aerospace Fastener.
British packaging company DS Smith, meanwhile, rose 9% after confirming it was in discussions over a possible sale to US-listed international Paper Company.
-Jenni Reid
Wed March 27, 2024, 6:21 a.m. EDT
Swedish krona falls after rates remain unchanged
The Swedish krona was slightly lower against the euro and the US dollar after the Riksbank kept its key interest rate at 4%.
The euro-crown exchange rate almost touched 11.5 for the first time since November 2023 before paring its gains, while the US dollar was up 0.06% at 10.59.
“A dovish statement and downward revision of forecasts indicate that the door to the May cut remains wide open,” Bartosz Sawicki, market analyst at Conotoxia, said in a note.
“Exactly two years into the tightening cycle, the Riksbank is clearly setting the stage for imminent easing, as price pressures quickly ease in a recession-hit economy.”
-Jenni Reid
Wed March 27, 2024, 5:26 a.m. EDT
Renault to sell up to 2.5% of Nissan shares to Japanese automaker
The Renault and Nissan automobile logos are represented during the Brussels Motor Show on January 9, 2020 in Brussels. (Photo by KENZO TRIBOUILLARD/AFP via Getty Images)
Kenzo Tribouillard | Afp | Getty Images
French group Renault has announced it will sell up to 2.5% of Nissan shares to the Japanese carmaker, as part of the group’s wider strategy to return to an investment grade rating.
The operation could generate a cash inflow of up to 362 million euros ($392 million).
Renault added that the sale of the shares would result in a sale loss of up to 450 million euros in the group’s accounts, as well as a gain of up to 50 million euros for the listed entity.
Nissan said it would finance its share acquisition with cash, emphasizing that the move was part of its strategy to “improve shareholder returns and capital efficiency.”
Early last year, the two automakers restructured their decades-old alliance, with Renault reducing its stake in Nissan from around 43% to 15% at the time, and transferring 28.4% of its stake in the Japanese car manufacturer to a French trust.
— Ruxandra Iordache
Wed March 27, 2024, 4:42 a.m. EDT
The Riksbank keeps its key rate unchanged at 4%
The Swedish flag flies over the country’s central bank.
Bloomberg / Contributor / Getty Images
Sweden’s Riksbank kept its main interest rate unchanged on Wednesday, as observers closely watch which central bank will follow Switzerland in easing monetary policy in the face of falling inflation.
The decision keeps the Riksbank’s policy rate at 4%, with the bank’s board noting “it is likely that the policy rate could be reduced in May or June if the inflation outlook remains favorable.”
Noting “a change in pricing behavior in the business sector” and very sharp increases in consumer prices in recent years, the board stressed that it was seeking “further confirmation that inflation is would stabilize near the objective” at present.
Last week, the Swiss National Bank unexpectedly lowered its main policy rate by 0.25 percentage points, to 1.5%. The Norwegian and British central banks, which released their rate decisions on the same Thursday, refused to blink, leaving their own rates unchanged.
— Ruxandra Iordache
Wed March 27, 2024, 4:17 a.m. EDT
European stocks open flat
See the table…
Stoxx 600 Index
European stocks had a moderate opening on Wednesday, continuing limited moves this week.
The Stoxx 600 index was flat at 8:15 a.m. in London, with major exchanges also close to the flat line and Britain’s FTSE 100 index down 0.15%.
-Jenni Reid
Wed March 27, 2024, 3:18 a.m. EDT
H&M profit exceeds expectations
HONG KONG, CHINA – 2021/08/07: Pedestrians cross the street in front of Hennes & Mauritz Swedish multinational clothing retail store H&M in Hong Kong. (Photo by Budrul Chukrut/SOPA Images/LightRocket via Getty Images)
Sopa Images | Light flare | Getty Images
Swedish fashion group H&M on Wednesday reported net sales down 53.7 billion Swedish crowns ($5.069 billion) in the first quarter, while its operating profit rose more than expected to 2. 08 billion crowns.
The company’s operating margin increased from 1.3% to 3.9%.
H&M’s board of directors will propose a dividend of 6.5 crowns per share at its annual general meeting in May and seek permission to buy back its B shares.
“Development continued in the right direction in the first quarter with improved gross margin and operating profit, lower inventory and strong cash flow,” said Daniel Ervér, CEO of H&M Group, who joined the company at the start of the year following the surprise resignation of Hélène Helmersson.
H&M is under pressure from growing competition from Zara owner Inditex and Chinese fast fashion retailers such as Shein, and has said it will focus on profitability rather than sales.
See the table…
H&M share price.
Tue March 26, 2024, 7:33 p.m. EDT
CNBC Pro: Nvidia Partners and More: BofA Picks Key Global Stocks Across the AI Supply Chain
Major US technology companies such as Nvidia, Microsoft and Alphabet have benefited from the artificial intelligence craze in the markets over the past year.
But many small businesses throughout the global AI supply chain stand to benefit as well.
BofA said in a March 15 note that there was a “booming” AI market with several AI solutions since the second half of 2023.
The bank cited different parts of the supply chain that could benefit from AI, as well as its main actions in each category.
CNBC Pro subscribers can learn more here.
— Weizhen Tan
Tue March 26, 2024, 7:33 p.m. EDT
CNBC Pro: How to invest $10,000? Here are 5 ETFs to buy now, according to the pros
As markets remain volatile amid economic uncertainty, many investors are taking a long-term view and turning to exchange-traded funds (ETFs) to position their portfolios.
CNBC Pro asked several financial experts for their top picks for ETFs to buy and hold this year. Subscribers can learn more about ETF choices here.
-Ganesh Rao
Wed, April 17, 2024, 11:45 p.m. EDT
European markets: here are the opening calls
European markets are expected to open mixed on Thursday.
Britain’s FTSE 100 index is expected to open 17 points higher at 7,872, Germany’s DAX up 5 points at 17,789, France’s CAC down 10 points at 7,983 and Italy’s FTSE MIB down 8 points to 32,963, according to IG data.
Profits are expected to come from Nokia, Easyjet and ABB. The data released includes new European car registration figures for March.
—Houx Ellyatt