Closing changes for the main indexes
- UK FTSE -0.3%
- French CAC -0.7%
- Spain Ibex -0.1%
- Italy MIB -1.0%
- Germany – closed for holiday
Italian banking worries were a weight on the MIB.
Italian banking worries were a weight on the MIB.
“No Brainer” US bank stocks languish unchanged in 2017 and even the unstoppable FANG stocks are lagging badly behind Nigerian banks.
It appears all those emails from Nigerian princes are paying off?
Or, as Bloomberg notes, since the Nigerian central bank eased a dollar shortage by opening a currency-trading window for foreign investors in April, lenders in Africa’s biggest economy have soared.
The local banking index is up 35 percent this quarter, outstripping South Africa’s equivalent stock gauge and MSCI’s emerging-market financials index. Even after the jump, Guaranty Trust Bank is the sole Nigerian lender in the index to trade above its book value, while none of the six members of the South African index trade below that level.
Airline Emirates is suspending flights to and from Doha indefinitely from tomorrow morning, under instruction from the government of the UAE, after several Arab states severed ties with the country.
In a statement, Emirates said the last flight from Dubai to Doha will leave at 0230 on June 6. The last flight in the other direction is at 0350.
Emirates’ flights to and from Doha today (5 June), will operate as normal. Travellers bound for Doha, who are boarding their flight from airports around the Emirates network today (5 June), will be advised to make alternative arrangements.
All customers booked on Emirates’ flights to and from Doha will be provided with alternative options, including full refunds on unused tickets and rebooking to the nearest alternate Emirates destinations.
None of these releases are that key tbh.
UK services though of more importance at 08.30 GMT given the sector’s large contribution to GDP.
WTI currently on session lows of $48.11.Initial support at $48.00 then $47.80
Brent currently $50.41 also on session lows . Support/demand into $50.00 then 49.85
Expect offers/res 111.65, larger at 111.80 ands 112.00. Demand/bids 110.30, larger into 110.00
Australia’s S&P/ASX200 closes down -0.7% at 5747.80
IMF Deputy Managing Director Mitsuhiro Furusawa
With close to 500 companies reporting losses, the highest number in at least five quarters, the earnings season has been a big disappointment. Save for a clutch of metals producers, which swung from loss to profit, most companies have struggled to grow their top lines in a weak economy. In an environment in which raw material prices have risen, albeit moderately, cash flows have been crimped. For a sample of 1,893 companies (excluding banks, financials, OMCs, metal producers and Reliance Industries), net profits fell nearly 15% y-o-y in the three months to March with revenues rising at sub-5% y-o-y.
Consumer spends are on a leash; Jubilant Foodworks and Shoppers Stop reported poor same store sales while at Britannia revenues grew just 6% y-o-y. Telcom firms’ bottom lines have been battered in a tariff war; profits at Bharti Airtel crashed.
In a quarter in which the impact of demonetisation was severe, volumes were hard to come by and pricing power nearly absent. At ACC operating margins contracted by 190 basis points due to costlier power, fuel and freight while at Hero MotoCorp, operating margins were dented by higher input costs. Capital goods makers such as BHEL reported subdued order flows and its revenues fell 3% y-o-y in Q4FY17. At Coal India, realisations were weak even as costs rose.
About 500 miles from Pyongyang, residents in the tiny western Japanese village of Abu have, on Tokyo’s recommendation, begun holding evacuation drills, training themselves to hunker down at a signal, in the event that the Democratic People’s Republic of Korea (DPRK) makes good on its continual threat to fire off nuclear weapons at its numerous enemies, real and imagined.
Japanese children and their parents, grandparents and other village dwellers, after hearing the singsong siren alert, quickly congregated at the school gymnasium in the coastal village, assembling everyone in a remarkable three minutes, while town elders made a head count.
Locals commented on the new directives, with one 10-year-old student remarking that the siren “rang all of a sudden while we were picking grass, so that scared me,” according to Deutsche Welle.
An aboveground gymnasium may not provide adequate protection from a nuclear warhead delivered by a ballistic missile, according to one local parent, who observed that while the drill “didn’t feel very realistic, it was a good way to understand how to evacuate.”
Located on the southwest coast of Japan, Abu is close to the Korean Peninsula. Military observers calculate about 10 minutes for a missile launched by Pyongyang to strike the Japanese coast — a figure that does not account for several minutes that would be required by the government to become aware of the attack and to initiate the alert system.
The DPRK claim that its weapons development plan is necessary.