The day is condensed, brief yet packed.
Energy Crisis and Global Inflation:
The surge in energy prices across the globe, fueled by geopolitical conflicts like the Ukraine war, is driving up inflation rates to record highs. This is particularly noticeable in the Eurozone, which is grappling with an inflation rate of 8.9% as per preliminary data for July. The final figures from Eurostat will reveal whether this trend has persisted.
Corporate Performances
Cisco Systems Inc.
Cisco Systems Inc., a key provider of network equipment, exceeded market expectations in the fourth quarter. Despite a six percent drop in net income to $2.8 billion, the company's revenue remained steady at $13.1 billion—with market experts anticipating only $12.7 billion. In the first quarter of the current fiscal year, earnings are projected to escalate by 2–4 percent.
Manchester United
British billionaire Jim Ratcliffe has expressed interest in acquiring a stake in Manchester United. His spokesman explained, "He understands the club's significance for the city and feels it's time for a fresh start." These statements were made following U.S. entrepreneur Elon Musk's assertion that his attempt to take over the Premier League club was a joke.
Tencent Holdings Ltd.
Tencent Holdings, the Chinese tech giant, reported its first-ever quarterly loss. This unfortunate failure is attributed to the COVID-19 lockdowns in China, which have impacted earnings significantly, and the strict restrictions associated with its gaming business. To mitigate the losses, Tencent has closed down unprofitable ventures, and insiders report that the conglomerate intends to sell its entire or majority stake in food delivery service Meituan, valued at $24 billion.
Central Banks and Economic Outlook
United States Federal Reserve
The U.S. Federal Reserve is gearing up for an extended battle against inflation and has yet to finalize the size of the subsequent interest rate hike. Discussions from the latest July meeting suggest that they have not expressed a preference for whether to employ another unusually large rate hike of 0.75 percentage points in September or maintain a half-point increase. The decision will ultimately depend on the data at hand. However, post-minutes publication, the probability of a smaller rate hike amounts to almost 60 percent on the futures markets.
- Refinitiv expects corporate earnings to escalate by 2-4% for Cisco Systems Inc., despite a surcharge in net income, due to steady revenue in the first quarter of the current fiscal year.
- Eurostat's final figures for July will shed light on whether the current inflation rate of 8.9% in the Eurozone, driven by energy crisis, has persisted quarterly.
- industry insiders report that Tencent Holdings, after reporting its first-ever quarterly loss, intends to sell its entire or majority stake in Meituan, valued at $24 billion, to mitigate losses.
- General-news is abuzz with British billionaire Jim Ratcliffe's interest in acquiring a stake in Manchester United, as a fresh start is what he feels the club needs.
- Central Banks and economic outlook have the U.S. Federal Reserve contemplating the size of the subsequent interest rate hike to battle inflation, with a 0.75 percentage points hike or maintaining a half-point increase under consideration.
- Following Elon Musk's assertion that his attempt to take over Manchester United was a joke, Jim Ratcliffe's spokesman explained his interest in the club as understanding its significance for the city.
