share prices

Demand for smartphones across all price ranges is expected to decline quarterly in the first three months of this year due to the continuing economic slowdown and other factors contributing to macroeconomic instability. Samsung is suffring for lower demand Samsung is the world's largest manufacturer of two main types of memory chips called DRAM, which allows devices to multitask, and NAND flash, which provides storage in devices. Samsung Electronics Co. expects demand for semiconductors and smartphones to remain weak as macroeconomic challenges and recession fears continue to weigh on sales. The global smartphone industry is also in crisis, causing profits to fall for Samsung, the world's largest smartphone maker by shipments. Demand for smartphones across all price ranges will decline quarterly in the first three months of this year due to continued economic slowdown and other factors contributing to macroeconomic instability. Memory chip makers, many with large inventories, are also making bleak predictions as demand for gadgets continues to decline after the pandemic boom. Samsung's profit Samsung's fourth-quarter operating profit was 4.31 trillion won, equivalent to $3.5 billion. Revenue for the three-month period fell by about 8% compared to last year to 70.5 trillion won. The company's net profit for the last three months of 2022 more than doubled to 23.84 trillion won, reflecting a one-time tax cut based on new accounting procedures as part of a recent revision of South Korea's subsidiary dividend tax rules, Samsung said. Samsung's full-year net profit for 2022 was 55.6 trillion won, an increase of 39.5% over the previous year. Revenue for the full year was 302.2 trillion won, up 8% over the previous year. Read next: Glovo Is Planning To Layoff 250 Workers Worldwide, The Middle East Is Already Suffering From A Water Shortage| FXMAG.COM Samsung will keep its 2023 capex plans Despite the current slowdown, Samsung said it will keep its 2023 capex plans at a similar level to last year as it wants to prepare for mid- to long-term demand. The move contrasts with that of rivals, which have already withdrawn their capacity expansion plans or slashed production for this year to ease the oversupply. Samsung said it is in the process of optimizing and upgrading its production lines. While tough market conditions continue, Samsung plans to launch its new Galaxy S23 series of smartphones this week as the industry's first major launch this year. Opinion of analysts Given the global economic slowdown and persistent inflation and geopolitical tensions, the smartphone market is expected to shrink in 2023. Memory prices peaked during the early Covid-19 pandemic due to strong demand for tech products and began to fall in late 2021. Quarterly declines became steeper in the second half of last year. Industry analysts expect average contract prices for both types of memory to continue declining in the first half of the year as demand remains weak and inventory levels high amid continued macroeconomic challenges and deepening recession fears. Conditions may improve in the second half of this year depending on macroeconomic developments that could revive global demand for chips. Memory orders may increase as corporate and consumer spending rebounds based on changes in interest rate policy. Samsung share prices In late January, Samsung's shares rose to their highest levels of six months ago. But then Samsung shares traded about 3.5% lower on Tuesday afternoon after the results were announced. Highest scores in January were read at 64,600.00 then dropped to 61,000.00 Source: wsj.com, finance.yahoo.com

The global tourism industry has faced unprecedented challenges during the COVID-19 pandemic and companies in the sector have suffered significant losses. However, as the world recovers and travel restrictions finally come to an end, the industry is now poised for a resurgence. A successful summer season on the horizon brings new hope to the afflicted industry. As travel resumes, equity prices in the tourism and travel sector are expected to show positive momentum. The market reaction to the reopening of borders and the resumption of international travel is likely to be reflected in the share prices of companies in the industry.   While the industry is on track to recover, it is important to note that reaching pre-pandemic levels may not happen immediately for all companies. The losses incurred during the pandemic have had a significant impact on the financial position of many tourism enterprises. Some companies are still striving to recover losses and restore financial stability, but here’s a look at the prospects for individual sectors of the tourism industry:   Airlines: Companies such as Lufthansa and other major airlines have been hit hard by the pandemic. As demand for travel increases, airline shares are expected to rise. However, the recovery of airline inventories will depend on various factors, including vaccination rates, travel regulations and consumer confidence in air travel.   Online booking platforms: Platforms such as Airbnb and Booking.com are likely are likely to benefit from the resurgence of the travel industry. As travelers start planning their trips, the demand for online booking services is expected to increase. Hence, these platforms may see their stock prices rise as they gain momentum.    Hotels: The hospitality sector has faced major challenges during the pandemic. As travel resumes, hotels are expected to reopen. However, the pace of recovery may vary depending on factors such as location, travel restrictions and the ability to meet changing consumer preferences, such as an increased focus on hygiene.    In terms of the impact of inflation on the travel industry, rising prices have the potential to affect both the market and share prices. Higher prices may lead to higher spending on travel-related services, which may affect consumer behavior and demand. Companies operating in the travel industry will need to carefully manage their pricing strategy to balance profitability and affordability for customers.   When it comes to investment opportunities, it is extremely important to do a thorough research and consider various factors before making an investment decision. While the share prices of some travel companies may have risen significantly, there may still be room for growth. Further development of stock prices in the near future will depend on factors such as the pace of the global recovery, travel trends, company performance and market dynamics against the backdrop of Fed policy.

 NatWest Group H1 23 – 28/07 after starting the year on a fairly solid base, UK banks have seen their share prices slide back to levels last seen in the aftermath of the Kwarteng budget in the past few weeks. The sharp rise in UK interest rates, along with an anticipation that rates could go even higher is fuelling concerns over rising defaults and higher loan loss provisions as fixed rate mortgages expire and get re-fixed at higher rates. When the bank reported its Q4 and full-year numbers the bank was cautious saying it expects to generate full-year income of £14.8bn, and a full-year NIM of 3.2%, based on a base rate of 4%.   They retained this caution in their Q1 guidance, despite many expecting the base rate to go much higher. The base rate is now at 5% and looks set to go higher, the concern isn't so much about income, but about economic conditions over the course of the rest of the year, along with demand for loans, pressure on margins, as well as higher costs. Profits in Q1 came in higher than expected at £1.28bn, comfortably above the same quarter last year of £841m, but net revenues have come in higher than expected at £3.87bn. The numbers were also above Q4's £1.26bn, while impairments came in lower at £70m, while net interest margin rose to 3.27% for Q1.   Operating expenses did come in sharply higher than the same quarter last year, rising 12.5%, with most of that attributable to higher staff costs due to a £60m cost of living payment to help staff with the high inflation environment. Customer deposits did see a fall of £11.1bn during the quarter to £421.8bn, due to tougher liquidity conditions and increased competition for deposits. Net loans saw an increase to £352.4bn.     

The resilience of US growth, earnings, and markets in 2023 has surprised many. After more than a year of aggressive Federal Reserve (Fed) rate hikes, the fact that the United States managed to avoid a recession, experience an upswing in US corporate earnings expectations, and witness a strong rebound in major equity indexes was unexpected at the beginning of the year. While numerous explanations have been offered to account for these phenomena, one crucial factor seems to have been overlooked—US private sector debt. Over the past 15 years, significant changes have occurred in US household and corporate sector indebtedness, reshaping the economy, profits, and equity valuations. These changes have made these factors less sensitive to monetary policy than they have been in over a generation.     The resilience of US growth, earnings and markets has been the big surprise of 2023. Following more than a year of aggressive Federal Reserve (Fed) rate hikes, few would have believed at the beginning of this year that the United States would avoid a recession, see an upswing in US corporate earnings expectations, and enjoy a strong rebound of major equity indexes. While many explanations have been offered to explain these phenomena, one important factor has been generally overlooked—US private sector debt. Over the past 15 years, US household and corporate sector indebtedness has changed significantly and in ways that make the economy, profits and equity valuations less sensitive to monetary policy than at any time in over a generation. We will focus on the corporate debt story here. But we must note that household borrowing habits have also changed in important ways since the global financial crisis (GFC). Total household debt, as a share of gross domestic product (GDP), has fallen by nearly a third since 2008. Credit standards have tightened, with fewer at-risk households able to borrow or borrow as much. And, importantly, mortgage borrowing has reverted to conventional 30-year fixed rate mortgages and away from floating rate or adjustable-rate mortgages. As a result, the lags between the Fed’s short-rate hikes and debt servicing costs in the household sector have lengthened. Those factors alone help explain why the US economy and consumer spending have held up better than many thought they would at the onset of 2023. A strong labor market, underpinned by post-COVID re-hiring, shortages of able-bodied workers, and fiscal stimulus have also contributed significantly to the resilience of demand. But for economists, policymakers and investors, there has been another interesting debt development underway: the absence of any discernable impact of rising interest rates on corporate profitability. That outcome deserves closer attention, because it has important implications for growth, profits and equity as well as credit market outcomes.   What has changed? Just as for the household sector, the GFC unleashed significant changes in the way companies borrow. Although overall corporate de-leveraging was more modest for companies than households since the GFC, a similar development has taken place in the tenor of borrowing. Specifically, one of the consequences of the GFC was to reduce company reliance on short-term borrowings such as commercial paper or bank loans and replace it with public and private credit instruments with longer maturities and fixed terms. For example, the commercial paper market was roughly $2.2 trillion in mid-2007 and as of August 2023, it is close to $1.2 trillion.1 In that same span, US investment-grade and US high-yield debt markets have mushroomed from $2.1 trillion to $7.8 trillion, and from $0.7 trillion to $1.2 trillion respectively.2 Meanwhile, global private credit has grown by $1 trillion.3 Mostly, those borrowings are fixed rate and the average maturities across these three asset classes range from 4 to 10 years.   Accordingly, lags between rising interest rates (courtesy of Fed tightening) and corporate debt servicing costs have lengthened. As a result, the corporate sector, by virtue of structural changes in corporate finance, has thus far been sheltered from the harshest impacts of what has otherwise been an aggressive series of Fed rate hikes since early 2022. But that is not all. As the most recent data for the second-quarter 2023 earnings season shows, companies across many sectors are reporting falling net interest costs, despite higher interest rates at all maturities. How is that possible? Part of the answer resides in an inverted yield curve, with short-term rates above long-term rates. Companies with high cash balances (based on resilient earnings as well as prudent capital spending) are enjoying higher interest revenues by parking their money in short-dated notes, but low interest costs having locked in lower rates via longer-term borrowing. The corporate sector is, in sum, playing an inverted yield curve to its benefit. That is a contributing factor to explain why, for virtually every sector in the S&P 500 Index (except for consumer staples and health care), net interest expense as a percentage of net profit is lower today than it was 20 years ago. Indeed, for the S&P 500 as whole, net interest expense as a percentage of net profit is today only about 40% of its 2003 level.4 The result is higher earnings—boosting share prices—as well as a more resilient corporate sector to Fed tightening. But is this happy situation sustainable? In the long run, no. At some point, new borrowings are required and maturing debt must be rolled over. If borrowing costs remain elevated, the good times will go away. But the corporate debt shield may yet endure for longer. That is because maturity extension has been significant for many companies and across many sectors. Since the end of 2020, for example, the proportion of investment-grade debt maturing after 2028 has gone from roughly 48% to 56%.5 This trend is even more pronounced among high yield (sub-investment grade) borrowers, with the proportion of borrowings extending beyond 2028 rising from 20% to roughly 42% of the market.6 And, of course, if rates fall between now and then (as would seem likely as inflation recedes), then companies may refinance on more agreeable terms before their debt matures.   It is also interesting to see where these developments are particularly significant. Within investment- grade markets, financials lead the way with a 50% increase in longer dated debt.7 The energy and technology sectors have witnessed increases of over 25%.8 At the other end of the borrowing spectrum, health care has not recorded a similar shift in debt maturity and, perhaps as a result, it has seen net interest expense take a bigger chunk out of net earnings in recent quarters.     The fact that profits have been shielded from the impacts of Fed tightening helps explain continued company interest in hiring. It also points to a positive feedback loop between profits, employment and demand that, while not sustainable forever, has helped to support US economic growth well into 2023. If so, the resilience of earnings and growth has another key implication for investors—namely reduced default risk. Credit risk is more nuanced. Individual defaults remain possible, and some will be unavoidable. But barring a freezing up of lending markets, overall corporate default rates are likely to be lower in this cycle than in prior ones.

  DocuSign Q3 24 – 07/12 – slipped below $40 a share at the end of October and the lowest levels since November 2018, as despite an improving revenue and profits outlook, the shares have continued to struggle. We've seen a modest rebound since then, however the shares have remained well below their September peaks of $53. In September when the company reported its Q2 numbers the shares fell sharply despite seeing an 11% increase in revenues to $687.7m, comfortably beating its Q1 guidance, with profits coming in at 72c a share. Just like they did in Q2, management upgraded their guidance projecting Q3 revenues of $687m to $691m, as well as raising their full year forecast to between $2.73bn and $2.74bn. Q3 profits are forecast to come in at 63c a share, up from 57c a share.       GameStop Q3 24 – 06/12 – it's been a slow drift lower for GameStop shares over the past 6 months, after hitting a 7-month high back in June. The summer positivity came about after the gaming company posted a surprise quarterly profit at the end of last year, helped by a $4.5m boost from the sale of some digital assets. There has been success in cutting costs as well as withdrawing from non-core markets, however they have been hampered by some poor decisions, the partnership with failed crypto exchange FTX, as well as experimenting with NFT at around the same time the bottom fell out of that market. The company returned to a loss of 14c a share in Q1, or $50.5m, while net sales fell short at $1.24bn. For Q2 there was a slight improvement on last year with revenues rising to $1.16bn, while losses narrowed to 0.03c a share. Over the last few days we've seen the share price surge after option traders bought a load of cheap call options with $20 and above strike prices, in anticipation of a decent set of Q3 numbers. For Q3 expectations are for revenues to come in unchanged at $1.18bn while losses are expected to come in at 0.08c a share.