Some of the biggest companies are going down in flames on Oslo Børs and Wall Street, while investors take the pulse of the labor market on both sides of the Atlantic.
Chief economist Harald Magnus Andreassen at Sparebank 1 Markets. Photo: Cicilie S. Andersen / E24 Published: Published:
Less than 10 minutes ago
The short version
- An intensive economic week awaits when major companies such as Microsoft, Apple and Amazon report quarterly figures on Wall Street, and Telenor, Orkla and AkerBP do the same on Oslo Børs.
- Economic key figures for the labor market in Norway, Europe and the USA will play a major role, with a particular focus on unemployment.
- Global events include the upcoming US election as well as China’s economic situation and consumer confidence.
The summary is made by the AI tool ChatGPT and quality assured by E24’s journalists
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The stage is set for a wild economic week both at home in Norway, Europe and the USA. Fresh figures on the labor market on both continents will be watched with a skeptical eye.
– The labor market is by far the most important for the financial markets, and unemployment is the most important. Inflation is more or less under control, although it is not entirely clear everywhere, says chief economist Harald Magnus Andreassen at Sparebank 1 Markets to E24.
On Oslo Børs and Wall Street, tech giants such as Microsoft, Alphabet, Meta, Apple and Amazon will be in the fire to present figures for the third quarter.
– The large tek shares are highly priced after the rise last year and this year. It is no longer enough to deliver, they must impress. It is always more difficult when the expectations are very high, says investment director Robert Næss at Nordea Investment Management to E24.
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Investment director Robert Næss at Nordea Investment Management. Photo: Eivind Senneset / E24
– It will be a lot about artificial intelligence, and how much the big players will invest next year. Intel, which has lagged a little behind on AI, will also report, says Næss.
The third quarter is important because we are approaching next year, and the companies must be a little more sober, according to the investment director.
– Here at home, both Orkla and Telenor are interesting. For an oil share such as Aker BP, things are a little more familiar, since we know a lot about the oil price. For banks and car freight, more results have already come in, so you know more about where the country is.
– The story about the US economy is different
In the US, there will be figures on new jobs, employment and unemployment, among other things. A “vigorous” GDP growth of 3 per cent is also expected in the third quarter, according to Andreassen.
– The story about the US economy is different than at the end of the summer. The economy is not necessarily strong, but better than expected. Data after the Fed’s double cuts have not shown the development they were afraid of, and it is not easy to point to any suddenness with new interest rate cuts, says Andreassen.
– There are no indicators that the labor market in the US has really soured. Expectations for interest rate cuts have been significantly reduced. Three cuts have been taken out of the yield curve in the last month. This has dragged down interest rates in the rest of the world.
New inflation figures this week will therefore end up in the shadows, and he thinks it will take a lot anyway for them to surprise on the upside. The estimate is quite high for the price deflator for private consumption (PCE).
US Federal Reserve Chairman Jerome Powell. Photo: Tom Brenner / Reuters
– The Nav numbers are by far the most important
In Norway and Europe too, the labor market has become more important than inflation, according to Andreassen.
– In Norway, the Nav figures on unemployment are by far the most important. We had a small surprise in September where it swung from 2 to 2.1 per cent, but now it is expected to remain unchanged, says the chief economist.
– Unemployment must rise significantly for Norges Bank to cut interest rates this year or early next year. I doubt that will happen. Unemployment has risen slightly, but very little. If it rises, it shows that the fixed-rate medicine may be too harsh for the patient, but so far it has gone well.
He points out that unemployment among the Norwegian-born has risen little and is very low, at 1.2 per cent. Total NAV unemployment is barely 1 percentage point higher, thanks to more unemployed immigrants, particularly from Ukraine.
– There were many unfilled positions in the second quarter, and there has been a good influx of vacancies after that.
Nor in the Eurozone, where GDP figures are also coming, does he see any urgency for further stimulus.
– GDP growth in the Eurozone is expected to be between 0.2 and 0.8 in the past year. There is a low growth rate, but there is also low growth in productivity, so unemployment is trending down, and is at its lowest level since the early 80s. The companies do not have many employees that they do not utilize. This indicates that capacity utilization in the economy is good.
Presidential candidate for the Republican Party, Donald Trump. Photo: Carlos Barria / Reuters
US election and China activity
Otherwise, both the US election on 5 November and China’s economic challenges are important topics.
Næss points out that long-term interest rates in the US have risen, and that many connect it to Trump’s increased leadership on betting sites.
– The Trump stock has also risen sharply. With his ownership of 59 percent, Trump has had a paper profit of around NOK 34 billion in just over a month, since the stock reached its lowest point and he was allowed to sell his shares in September.
Andreassen explains that two different PMI indices in China will give a picture of activity, after the Chinese authorities have launched a number of stimulus packages.
– I think it is a bit early to wait to see the possible effects of the packages that have been announced. In any case, there will probably be no new construction boom, but more cleaning up of the old. Increased consumption is the hope, but it is not easy to force people to spend money, he says.
– It is not a lack of money among the Chinese that is the problem, but faith in the economy. Car sales have picked up again, so households are not completely gone, but consumer confidence is extremely low.
This is happening this week
Monday 28 October:
- Oslo Børs Q3 report: Barramundi Group, and Folketrygdfondet
- Unemployment Japan
Tuesday 29 October:
- Oslo Børs Q3 report: Orkla, Solstad Offshore, OBOS
- Wall Street Q3-rapport: Alphabet, Visa, AMD, Novartis, McDonald’s, Pfizer, HSBC, Mondelez, PayPal, Chipotle, Santander, Snap, BP Oil with more.
Wednesday 30 October:
- Oslo Børs Q3 report: Telenor, Aker BP, Wallenius Wilhelmsen, Elopak, Akastor, Wilh. Wilhelmsen, Klaveness Combination Carriers, Borregaard, Voss Veksel- og Landmandsbank, Sparebanken Sør Boligkreditt, SpareBank 1 Nord-Norge, BlueNord, Soiltech, Sparebanken Sogn og Fjordane, Hafslund
- Wall Street Q3-rapport: Microsoft, Meta, Eli Lilly, Caterpillar, Amgen, Airbus, Coinbase Global, KraftHeinz, Starbucks, Robinhood, eBay with more.
- Key figures: Retail trade index Norway, GDP USA and the Eurozone with more.
- Statistics Norway: Export of salmon, Merchandise trade index, Real estate turnover, Production index for construction activities, Air transport
Thursday 31 October:
- Oslo Børs Q3 report: Aker Solutions, Sea1 Offshore, Europris, Aker Carbon Capture, Vistin Pharma, Bergen Carbon Solutions, Polight, Axactor, Skandia Greenpower, Navamedic, Arribatec Group, Sparebank 1 SR-Bank, ABL Group, Gentian Diagnostics, Totens Sparebank, Totens Sparebank Boligkreditt, Morrow Bank, Sparebank 1 Østlandet, Sparebank 1 Søreast-Norge, Sparebank 1 SMN, MPC Energy Solutions, Høland and Setskog Sparebank, Romsdal Sparebank, Sparebank 1 Østfold and Akershus, Public Property Invest, KMC Properties, Sparebanken Vest .
- Wall Street Q3-rapport: Apple, Amazon, Mastercard, Uber Tech, Comcast, Conoco Phillips, Intel, TotalEnergies with more.
- Key figures: Inflation USA and the Eurozone with more.
- Statistics Norway: State accounts’ income and expenditure, Research and development in business, Credit indicator, Money supply, Differences in sickness absence for those with permanent and temporary jobs, Monthly state accounts
Friday 1 November:
- Oslo Børs Q3 report: Aker Horizons, Scatec, Deep Value Driller, Sparebanken Øst, Sparebank 1 Ringerike Hadeland, Sparebank 1 Helgeland, Instabank.
- Wall Street Q3-rapport: Exxon, Chevron, Mitsubishi with more.
- Key figures: Nav Unemployment Norway, Obos numbers Norway, PMI Norway, Nonfarm payrolls USA, unemployment USA, ISM Manufacturing USA with more.
- Statistics Norway: Interest in banks and credit institutions, Meat production, Accounting statistics for non-financial foundations.
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Welcome to the Financial Circus!
Ah, behold the mighty titans of industry thrashing about like a fish out of water, drowning in the sea of Wall Street and Oslo Børs! Don’t worry, no one’s actually going to drown; they’ve got life jackets funded by our dreams… and investments! What an intoxicating cocktail of uncertainty as we gear up for a week of earnings reports that could ignite these corporate behemoths – or send them crashing into a money pit!
The Big Players Are Back!
- Major companies on both sides of the Atlantic are ready to unveil their quarterly figures! Microsoft? Check! Apple? Check! Amazon? Check! We’ll be watching more closely than a toddler at a candy store!
- And over in Norway, we’ve got Telenor and Orkla stepping into the ring like they’re about to do battle while AkerBP just waits patiently by the oil barrel.
- With the labor market data about to drop, it’s like expecting a hiccup in a silent room – everyone’s holding their breath!
Unemployment – The Real Headliner
Oh yes, chief economist Harald Magnus Andreassen from Sparebank 1 Markets has deemed the labor market the most important act for the financial scene. It’s not enough to simply keep inflation in check; we need to find out whether everyone’s gainfully employed or if they’ve resorted to selling lemonade on the street corner!
As we dissect data from both the U.S. and Norway’s job markets, we can expect more gasps and sighs than at a mystery theatre. Spoiler alert: unemployment rates are the *real* cliffhanger!
Tech Giants: Under Pressure!
Now, for our entertainment, let’s turn to the tech giants! It’s a high-stakes poker game with the big players like Microsoft and Apple facing anxious investors. With high expectations, anything less than mind-blowing results might just send their stock value plummeting faster than my attempts at stand-up comedy.
Robert Næss, the investment director, has chimed in, stating that these giants must not just deliver; they must impress. If you think your in-laws are demanding, you should see what Wall Street expects!
Global Events on the Horizon
What else is brewing in this financial storm? Oh, just a little thing called the U.S. election looming on November 5. Coupled with China’s economic singsong, it’s like a reality TV show where every episode ends with cliffhangers!
What’s more? Trump’s stock may have picked up, all thanks to his newfound love affair with paper profits – a classic case of ‘will-they-won’t-they’!
A Peek at the Week Ahead
Now, let’s take a look at what the week has in store! It’s a whirlwind of company reports, unemployment data, and more numbers than you can shake a calculator at:
- Monday: Barramundi Group reports on Oslo Børs. Will it be a splash or a flop?
- Tuesday: Alphabet and McDonalds – because who doesn’t want fries with their tech stocks?
- Wednesday: Prepare for a double feature with Microsoft and Telenor going head to head!
- Thursday: Apple and Amazon serve up their quarter’s results with a side of inflation data! Yum!
- Friday: Exxon and Chevron close out the week – will they be swimming in a sea of profits or asking for life vests?
The excitement is palpable! Keep your wallets close and your trading fingers closer, dear readers, because this week promises to be more thrilling than a rollercoaster ride through the stock market! And don’t lock yourself in the loo; you might miss the greatest show on Earth – or at least until the next quarterly reports!
Stay tuned, keep those emotional support stocks nearby, and remember: it’s all in a week’s work!
Amidst unsettling market trends, major corporations on both Oslo Børs and Wall Street are witnessing declines as investors gauge the health of the labor market across Europe and the United States.
Chief economist Harald Magnus Andreassen at Sparebank 1 Markets. Photo: Cicilie S. Andersen / E24 Published: Published:
Less than 10 minutes ago
The short version
- In a crucial week for the economy, attention turns to the third-quarter earnings reports from tech giants like Microsoft, Apple, and Amazon on Wall Street, alongside the disclosures from Telenor, Orkla, and AkerBP in the Norwegian market.
- Key labor market statistics from Norway, Europe, and the United States are expected to significantly influence market movements, with particular scrutiny on unemployment rates.
- Global developments, such as the impending US election and ongoing economic challenges in China, remain high on the radar for investors and analysts alike.
The summary is made by the AI tool ChatGPT and quality assured by E24’s journalists
Show more
All eyes are on the imminent economic whirlwind expected both in Norway and worldwide, as labor market data is primed to capture critical investor attention.
– The labor market is by far the most important for the financial markets, and unemployment is the most important. Inflation is more or less under control, although it is not entirely clear everywhere, remarks chief economist Harald Magnus Andreassen at Sparebank 1 Markets to E24.
In the tech sector, renowned corporations like Microsoft, Alphabet, Meta, Apple, and Amazon are under considerable pressure to deliver substantial third-quarter figures.
– The large tech shares are highly priced after the rise last year and this year. It is no longer enough to deliver; they must impress, emphasizes investment director Robert Næss at Nordea Investment Management to E24.
Read on E24+
Think renewable shares may fall after the election
Investment director Robert Næss at Nordea Investment Management. Photo: Eivind Senneset / E24
– A significant focus will be on artificial intelligence, particularly regarding how much leading companies will invest next year. Intel, which has been somewhat sluggish in the AI race, will also be reporting its figures, notes Næss.
The upcoming third quarter is pivotal as preparatory steps are taken towards 2024, necessitating more cautious projections from companies, according to Næss.
– Here at home, both Orkla and Telenor are interesting. For an oil share such as Aker BP, the situation is more predictable due to existing knowledge about the oil price fluctuations.
– The story about the US economy is different
In the United States, critical data releases concerning job creation, employment rates, and overall unemployment figures are anticipated. A robust GDP growth estimate of 3 percent for the third quarter is also on the horizon, as highlighted by Andreassen.
– The narrative around the US economy has evolved since the end of the summer; while the economy is not overwhelmingly strong, it has improved unexpectedly, shares Andreassen.
– There are no indicators suggesting a severe downturn in the US labor market. Projections for interest rate adjustments are considerably lower now, with a notable reduction of three slated cuts on the yield curve in the last month.
New inflation data this week is expected to take a backseat, as surprises on the upside appear unlikely given the current forecast for the price index for personal consumption (PCE).
US Federal Reserve Chairman Jerome Powell. Photo: Tom Brenner / Reuters
– The Nav numbers are by far the most important
In Norway and Europe, the focus has shifted, making the labor market more crucial than inflation, according to Andreassen.
– In Norway, the Nav figures on unemployment are by far the most important indicator. A small surprise occurred in September, with a slight uptick from 2 to 2.1 percent, but stability is now anticipated, remarks the chief economist.
– A significant rise in unemployment would be necessary for Norges Bank to consider interest rate reductions this year or early next. The current landscape suggests such a scenario is remote.
Unemployment among Norwegian natives remains minimal at 1.2 percent, with total NAV unemployment only marginally higher, largely influenced by increased numbers among immigrant populations, particularly those from Ukraine.
– The second quarter revealed many unfilled positions, with a healthy influx of new vacancies following that period.
GDP growth in the Eurozone is expected to hover between 0.2 and 0.8, indicating a sluggish but not alarming pace, with productivity growth remaining in tandem.
Presidential candidate for the Republican Party, Donald Trump. Photo: Carlos Barria / Reuters
US election and China activity
The upcoming US election on November 5th alongside economic concerns in China is capturing widespread attention.
Næss points out the correlation between rising long-term US interest rates and Donald Trump’s growing popularity among bettors.
– Trump’s stock has seen remarkable increases; he has claimed about 59 percent of shares, witnessing a paper profit of approximately NOK 34 billion since the stock market’s recent downturn last month.
Andreassen explains that two crucial PMI indices in China will offer insights into economic activity, following the government’s introduction of various stimulus measures.
– While it may be premature to expect immediate effects from these packages, a construction boom is unlikely; the focus will likely shift to revitalizing existing structures.
Consumer confidence in China remains a significant concern; despite an uptick in car sales, households are still reluctant to spend.
This is happening this week
Monday 28 October:
- Oslo Børs Q3 report: Barramundi Group, and Folketrygdfondet
- Unemployment Japan
Tuesday 29 October:
- Oslo Børs Q3 report: Orkla, Solstad Offshore, OBOS
- Wall Street Q3-rapport: Alphabet, Visa, AMD, Novartis, McDonald’s, Pfizer, HSBC, Mondelez, PayPal, Chipotle, Santander, Snap, BP Oil with more.
Wednesday 30 October:
- Oslo Børs Q3 report: Telenor, Aker BP, Wallenius Wilhelmsen, Elopak, Akastor, Wilh. Wilhelmsen, Klaveness Combination Carriers, Borregaard, Voss Veksel- og Landmandsbank, Sparebanken Sør Boligkreditt, SpareBank 1 Nord-Norge, BlueNord, Soiltech, Sparebanken Sogn og Fjordane, Hafslund
- Wall Street Q3-rapport: Microsoft, Meta, Eli Lilly, Caterpillar, Amgen, Airbus, Coinbase Global, KraftHeinz, Starbucks, Robinhood, eBay with more.
- Key figures: Retail trade index Norway, GDP USA and the Eurozone with more.
- Statistics Norway: Export of salmon, Merchandise trade index, Real estate turnover, Production index for construction activities, Air transport
Thursday 31 October:
- Oslo Børs Q3 report: Aker Solutions, Sea1 Offshore, Europris, Aker Carbon Capture, Vistin Pharma, Bergen Carbon Solutions, Polight, Axactor, Skandia Greenpower, Navamedic, Arribatec Group, Sparebank 1 SR-Bank, ABL Group, Gentian Diagnostics, Totens Sparebank, Totens Sparebank Boligkreditt, Morrow Bank, Sparebank 1 Østlandet, Sparebank 1 Søreast-Norge, Sparebank 1 SMN, MPC Energy Solutions, Høland and Setskog Sparebank, Romsdal Sparebank, Sparebank 1 Østfold and Akershus, Public Property Invest, KMC Properties, Sparebanken Vest .
- Wall Street Q3-rapport: Apple, Amazon, Mastercard, Uber Tech, Comcast, Conoco Phillips, Intel, TotalEnergies with more.
- Key figures: Inflation USA and the Eurozone with more.
- Statistics Norway: State accounts’ income and expenditure, Research and development in business, Credit indicator, Money supply, Differences in sickness absence for those with permanent and temporary jobs, Monthly state accounts
Friday 1 November:
- Oslo Børs Q3 report: Aker Horizons, Scatec, Deep Value Driller, Sparebanken Øst, Sparebank 1 Ringerike Hadeland, Sparebank 1 Helgeland, Instabank.
- Wall Street Q3-rapport: Exxon, Chevron, Mitsubishi with more.
- Key figures: Nav Unemployment Norway, Obos numbers Norway, PMI Norway, Nonfarm payrolls USA, unemployment USA, ISM Manufacturing USA with more.
- Statistics Norway: Interest in banks and credit institutions, Meat production, Accounting statistics for non-financial foundations.
Show more
Also read
Oil analyst after Iran attack: – Buy every dip
Read on E24+
Believes that falling inflation will be an “acid test” in the results season: – Now the wheat is being separated from the wheat
Also read
May delay Norges Bank’s plans: – Cuts in March may also be too early
Financial Circus Week Ahead: Earnings Reports and Labor Market Insights
Overview
As we dive into another thrilling week on Wall Street and Oslo Børs, major corporations are set to unveil their quarterly earnings, sending shockwaves through the financial landscape. With significant scrutiny on the labor market across Europe and the U.S., investors are eagerly poised to react to unemployment data that could shape market sentiment.
Key Highlights
- Major Earnings Reports: Investor attention is fixed on tech giants like Microsoft, Apple, and Amazon, as they prepare to release their third-quarter figures. In Norway, Telenor, Orkla, and AkerBP will also be in the spotlight.
- Labor Market Data: The upcoming labor statistics are anticipated to have a considerable impact on market dynamics. With unemployment rates at the forefront, any fluctuations could alter investors’ outlook.
- Global Economic Sentiments: The backdrop of the U.S. election on November 5 and economic scenarios in China add layers of complexity to market evaluations.
The Week’s Schedule
- Monday, October 28: Barramundi Group kicks off reporting season on the Oslo Børs, alongside Japan’s unemployment figures.
- Tuesday, October 29: A slew of reports from Oslo Børs including Orkla, alongside major names like Alphabet and McDonald’s on Wall Street.
- Wednesday, October 30: An exciting face-off with earnings from Microsoft and Telenor, as well as significant economic metrics like U.S. GDP.
- Thursday, October 31: Apple and Amazon take center stage, reflecting on their quarterly outcomes amid inflation updates.
- Friday, November 1: A closing act featuring Exxon and Chevron to wrap up the earnings week.
Analytical Insights
Chief economist Harald Magnus Andreassen emphasizes the importance of the labor market over inflation, stating that stable unemployment figures are vital for economic health. Robert Næss from Nordea Investment Management underscores the pressure on tech firms, highlighting the necessity for outstanding performances after significant stock price surges.
Closing Thoughts
With a mixture of anticipation and uncertainty, this week promises to be a rollercoaster ride as major companies reveal their financial standings amid fluctuating economic indicators. Investors are encouraged to stay vigilant and prepared as critical data points are released.
Stay Tuned: Don’t miss out on the action—each report could set off tidal waves in the market!
Mazon, Alphabet, and Microsoft in the U.S. market.
Investor Strategy
As investors brace for a potentially volatile week, maintaining a focus on key indicators such as unemployment rates, inflation data, and corporate earnings will be essential for navigating market movements. The interplay of these elements could dictate investment strategies as the financial landscape evolves in response to emerging data.
Stay tuned for updates as this eventful week unfolds, and prepare your trading strategies accordingly!
