2023-07-25 16:20:04
(Illustration: Camille Charbonneau)
NEWS ESSENTIALS
• GM favors profit over growth and moves away from Tesla. General Motors has raised its full-year profit forecast, largely because it plans to invest less in new products and cut operating costs by another billion dollars through the end of next year.
• GE takes advantage of the aviation boom to raise its profit forecast for 2023. General Electric Group has raised its full-year adjusted profit forecast, betting on sustained demand for aircraft engine parts and services from airlines looking to cash in on increased air traffic.
• The Fed is not pleased with the resilience of the US economy. As the Federal Reserve heads for another interest rate hike this week, policymakers must choose how much weight to give to recent economic data that has made hoped-for inflation and unemployment outcomes more likely, while posing the risk that the economy is too strong to keep prices at an acceptable level.
• 3M announces a quarterly loss following an agreement on “eternal chemicals”. The US industrial conglomerate posted a quarterly loss from a year earlier profit, due to a $10.3 billion settlement of water pollution complaints linked to “eternal chemicals”.
• The problem with X? Meta, Microsoft and hundreds of others own trademarks for Twitter’s new name. Billionaire Elon Musk’s decision to rebrand Twitter as “X” might be complicated legally: companies such as Meta and Microsoft already own intellectual property rights to the same letter.
TRENDS BEFORE OPENING
The main Canadian stock index, where many resources are listed, rose on rising metal prices and Chinese stimulus measures. Wall Street futures were subdued as investors focused on quarterly results from large-cap tech companies and the Federal Reserve’s two-day policy meeting. The European stock edged higher, driven by a rally in the mining and luxury sectors. In Asian equity markets, the Japanese Nikkei ended lower, weighed down by tech heavyweights. Meanwhile, the Chinese stock ended sharply higher and the yuan strengthened following the country’s leaders pledged to support the economic recovery. Spot gold prices rose while the dollar was little changed. Oil prices rose slightly on signs of tighter supply.
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TITLES TO FOLLOW
• Newcrest Mining : Australia’s biggest gold producer reported a 9.1% sequential increase in quarterly gold output as easing problems at its flagship Cadia mine led to a rebound in output. The mining company said the reduction in scheduled and unscheduled maintenance at Cadia boosted throughput at the mill, with production rising nearly 14% sequentially in the fourth quarter, following a decline in the prior quarter. “Adjustments have been implemented underground, including reduced extraction rates, changes to the ventilation circuit, and the installation of additional dust sprayers and spray curtains,” the company said. The gold miner produced 556.2 kilo ounces (koz) of yellow metal in the three months ending June 30, which is below the consensus estimate of 584 koz determined by research firm Visible Alpha. Over the full year, gold production increased by 7.6% to reach 2.11 million ounces (Moz). Mine sustaining costs rose to $1,196 an ounce in the fourth quarter from $999 in the prior quarter.
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