Breakfast Bites - Tue Apr 25, 2023

Rise and shine everyone

The big news this morning are the earnings releases. The full calendar is below but here are some highlights:

• McDonald's double beat. Beats by EPS $0.29, beats on US and Global revs comps +12.6%. Accelerating the Arches strategy is working

• General Motors beats by $0.48, beats on revs; raises FY23 EPS and EBIT guidance

• Raytheon double beat; reaffirms guidance

• GE clear double beat; reaffirms guidance.

• Pepsi double beat, and margins expanding.

• Finally, UPS narrowly missed EPS and Revenues, lowered guidance

“UPS CEO Carol Tome: In Q1, deceleration in U.S. retail sales resulted in lower volume than we anticipated, and we faced ongoing demand weakness in Asia. In response, we focused on controlling what we could control and delivered first-quarter consolidated operating profit and operating margin in line with our base case targets. Given current macro conditions, we expect volume to remain under pressure”

S&P futures down 0.5% in Tuesday morning trading after US equities put in a mixed performance in a fairly uneventful session to start the week that saw energy and defensives outperform and pockets of tech and select regional banks lag. Gold a touch higher. Bitcoin futures up 01.1%. WTI crude down 0.4% after gaining just over 1% on Monday.

Asia and Australia

• Asian markets mostly lower overnight with Hong Kong underperforming once again, down over 1.5%, while Japan eked out a gain for a second straight session.

• China's Politburo likely to shift focus from stimulus to reforms

• South Korea economy grows in Q1, outlook dims amid weak exports

Europe, Middle East, Africa

• European equity markets lower: banks, basic resources under pressure; food/beverage, travel/leisure, healthcare

• UBS disappoints on earnings, but talks up inflows from recent turmoil

• Analysts say German public sector pay rise deal may complicate ECB's inflation fight

• ECB's Schnabel says 50 bp rate hike still on the table for May meeting

The Americas

• Central banks cut dollar operations with Fed as market stress eases since March's banking meltdown

• Biden and McCarthy locked in debt standoff ahead of key vote and fresh data that will give a new deadline for agreement

• Apple wins long running court battle to block Epic Games from breaking down App store barriers

• Microsoft bows to EU pressure and agrees to stop bundling Teams with Office

Calendars

(news taken from Reuters, FT, Bloomberg; Calendar from Trading Economics)

Earnings

Economic