UBS is downgrading the Big-6 in US tech this morning, positing that their EPS growth will decline from 42% to 16% over the next year, versus everyone else’s growth rates improving. Four of the Mag 7 report this week. Overall, though, analysts can’t agree whether US companies will deliver on their robust earnings forecasts for this year, per Bloomberg.
The House approved $95 bn for Ukraine, Israel and Taiwan. The Senate votes this week. The deal includes sanctions on Iran’s oil sector, so we may see prices stay higher.
China’s imports of Russian oil were up +19% in March to the highest level in 20+ years while imports from Saudi Arabia were down, and those from Venezuela were flat.
China became the world’s top buyer of gold. Does anyone else worry about why they want so much gold versus currencies or securities?
We’ve been talking about focusing on areas less-owned, including the EZ.
Tomorrow Tesla will report a roughly -40% reduction in operating profit and its first revenue decline in 4 years. You’ve got layoffs, robotaxis, a ridiculously high pay package for Elon, more price cuts—now in the US too, trouble in China, an abruptly cancelled meeting in India, and some folks who just won’t buy the products because of the person in charge.
MSN has a piece out about Nike, which is a topic we covered last week on Wall Street Beats. A lack of innovation, missteps with retail partners, and competitors who delivered what customers wanted…yes, I’m talking to you, Hoka and On…and heck, even Adidas figured out more in the last year. It sounds like his cost-cutting didn’t go over so well with employees who wonder what pain he’s feeling.
Per a story by MSN, traditional and alternative asset managers control twice as many assets as US banks. Blackstone, Franklin Templeton, BlackRock, KKR, and others may not make the same mistakes as regular banks…but as they target individuals versus institutions and expand their services (e.g., lending), you have to know that there will be new consequences. People with private equity who didn’t understand the lock up and risks, for example.
The new trend in China is posting “gross” work outfits. Think pajama pants, slippers, mismatching clothes—part of a rebellion against the world that includes bad bosses, poor work conditions, low pay, long hours, and the next step from “lying flat.” Why do you care? Other than some fun pix, record youth unemployment and a stagnant economy in China matters for your portfolio. While, yes, India can try to pick up some slack, global investors need the Chinese to start making things, buying things, selling things…driving growth globally.