Post by account_disabled on Feb 26, 2024 22:27:30 GMT -6
Barcelona, Spain – Investors react to today's and yesterday's balance sheets of technology giants Microsoft and Alphabet (Google) and Advanced Micro Devices, which did not meet high market expectations. However, the Federal Reserve's (Fed) decision on interest rates, the first in a year in which reductions are expected, is what will really set the tone. The question is when this new cycle will begin: investors are eager for any clues the US central bank has in store.
The Federal Reserve is expected to keep borrowing costs between 5.25% and 5.5%, the highest level in 22 years. Although investors see a 40% chance of a rate cut in March, most Fed officials believe it is premature to speculate on such a cut. Jerome Powell must recognize the fall in inflation, but without urgency for reductions, pointing to a solid labor market and a strong growing economy.
Subscribe to the morning newsletter Namibia WhatsApp Number List Línea de Partida, a selection from Línea Bloomberg with the most outstanding news on business and finance from Latin America and the worldThe cost of AI. Shares of Microsoft, Google, Alphabet and Advanced Micro Devices, whose balance sheets fell short of some investors' high expectations, continue to fall in premarket trading. These companies are committed to incorporating artificial intelligence into their products at another level. However, not everyone seems willing to wait for the fruits of these large investments. It should be noted that in previous weeks investors had taken the stock to all-time highs.
More muscles. Intense day also in Europe: Novo Nordisk became the second European company in history to reach a market value of 500 billion dollars, after announcing a forecast of higher sales and profits for this year. His medicine Wegovy for the treatment of obesity, a bestseller.
Shares down, change of CEO. Elsewhere, shares in Hennes & Mauritz (H&M) fell as much as 10% after the retailer missed analysts' profit estimates and CEO Helena Helmersson resigned. Daniel Erver takes over as CEO of Europe's second publicly listed fashion retailer.
Not this time. Samsung Electronics posted its fourth consecutive quarter of declining profits in the final months of the year, after the long-awaited recovery in demand for chips and electronics brought little profit to the world's largest memory maker. South Korea's most valuable company reported that its net profit fell 74% in the last three months of the year, to the equivalent of $4.5 billion. Its main chip operations reported losses of about $1.6 billion, more than analysts expected.
The Federal Reserve is expected to keep borrowing costs between 5.25% and 5.5%, the highest level in 22 years. Although investors see a 40% chance of a rate cut in March, most Fed officials believe it is premature to speculate on such a cut. Jerome Powell must recognize the fall in inflation, but without urgency for reductions, pointing to a solid labor market and a strong growing economy.
Subscribe to the morning newsletter Namibia WhatsApp Number List Línea de Partida, a selection from Línea Bloomberg with the most outstanding news on business and finance from Latin America and the worldThe cost of AI. Shares of Microsoft, Google, Alphabet and Advanced Micro Devices, whose balance sheets fell short of some investors' high expectations, continue to fall in premarket trading. These companies are committed to incorporating artificial intelligence into their products at another level. However, not everyone seems willing to wait for the fruits of these large investments. It should be noted that in previous weeks investors had taken the stock to all-time highs.
More muscles. Intense day also in Europe: Novo Nordisk became the second European company in history to reach a market value of 500 billion dollars, after announcing a forecast of higher sales and profits for this year. His medicine Wegovy for the treatment of obesity, a bestseller.
Shares down, change of CEO. Elsewhere, shares in Hennes & Mauritz (H&M) fell as much as 10% after the retailer missed analysts' profit estimates and CEO Helena Helmersson resigned. Daniel Erver takes over as CEO of Europe's second publicly listed fashion retailer.
Not this time. Samsung Electronics posted its fourth consecutive quarter of declining profits in the final months of the year, after the long-awaited recovery in demand for chips and electronics brought little profit to the world's largest memory maker. South Korea's most valuable company reported that its net profit fell 74% in the last three months of the year, to the equivalent of $4.5 billion. Its main chip operations reported losses of about $1.6 billion, more than analysts expected.