Infineon expects revenue to fall next fiscal year
Semiconductor company Infineon said on Tuesday it expected revenue in fiscal 2025 to be slightly lower than in fiscal 2024, which ends on September 30.
company report The company’s revenue for fiscal 2024 was 14.955 billion euros ($15.87 billion), down 8% from the previous year.
Infineon Chief Financial Officer Sven Schneider told CNBC that the company had “very significant inventory management on behalf of customers,” which slowed demand in the current quarter and possibly next quarter.
Schneider said a distinction needs to be made between cyclical and structural conditions when talking about the outlook for the coming months.
“If we think about structural issues, there are always these five megatrends, which are electrification, software-defined vehicles, IOT (Internet of Things), renewable energy, and even more and more data centers/artificial intelligence. So, these structural Trends are uninterrupted and they are very powerful,” he said.
Schneider added that on the cyclical side, two factors beyond geopolitics and macro uncertainty are also at play.
“There’s very obviously inventory management and, on top of that, customers are going back to very short-term ordering behavior and if you put those things together and if you look at the inventory in the supply chain as well… the demand is very Healthy and strong, but inventory needs to be digested before demand translates into new higher revenues.
Infineon shares were up about 2.9% as of 12:47 pm London time as investors shrugged off the weak outlook.
——Sophie Kidlin
Mediobanca shares fell more than 8%
Italian Medio Bank Fall to the bottom Stoke 600 The index rose after the bank issued a lower-than-expected revenue forecast and lowered its full-year net interest income forecast.
The Milan-listed stock plunged more than 8% after the news broke.
Medio Bank
Stoxx 600 down 1%
The pan-European Stoxx 600 index was down 1% at around 11:15 a.m. London time, with major exchanges and almost all sectors in negative territory.
French CAC 40 Britain’s FTSE 100 and Germany’s FTSE 100 fell 1.2% German DAX Index fell 0.9% and 0.8% respectively.
— Sam Meredith
Germany sets early election date for February
German Chancellor Olaf Scholz fired Christian Linde after a meeting in Berlin with leaders of the so-called “traffic light” coalition between the Social Democrats (SPD), the Greens and Lindner’s FDP Christian Lindner, then left Bellevue Palace.
Liesa Johannssen | Liesa Johannssen Reuters
Germany is set to hold federal elections in February, earlier than Chancellor Olaf Scholz initially proposed after his governing coalition collapsed last week.
According to sources within the parliamentary group of the Social Democratic Party (SPD) led by Scholz, the election is scheduled to be held on February 23.
Read the full story here.
——Sophie Kidlin
ConvaTec surges 21%, Drax rises 6%
Shares in British medical products and technology company ConvaTec soared 21% in early trading, climbing to the top of the Stoxx 600 following the company’s listing bulge its full-year sales guidance.
The company raised its full-year 2024 organic sales growth guidance to 7.25% to 8%, up from its previous forecast of 6% to 7%.
Meanwhile, shares in British energy company Drax rose more than 6%. explain The company now expects full-year core profit to be at the high end of analysts’ consensus forecasts. On Tuesday, the London-listed share price hit a 52-week high.
— Sam Meredith
Bayer shares fall to 20-year low
German life sciences company Bayer reported lower-than-expected third-quarter earnings, cut its full-year forecast and announced its share price hit rock bottom on the Stoxx 600. warn Revenue “is likely to decline” next year.
The company’s shares fell about 11%, hitting a 20-year low.
Bayer stock year-to-date.
Shell wins appeal against landmark Dutch climate ruling
Oil storage silos outside flooded land at the Shell Penis refinery in Rotterdam, the Netherlands, Sunday, February 11, 2024.
Bloomberg | Bloomberg | Getty Images
A Dutch court on Tuesday dismissed a landmark climate ruling against Shell after the oil giant was ordered to significantly reduce its global carbon emissions in 2021.
The results came on the opening day of the conference COP29 climate summit In Azerbaijan, it marks the latest twist in a precedent-setting case that could have far-reaching consequences for the future of climate litigation.
Read the full story here.
— Sam Meredith
UK unemployment rate rises
Data from the Office for National Statistics showed that the UK unemployment rate rose to 4.3% in the three months to September as wage growth continued to slow.
While total revenue, including bonuses, rose to an annual rate of 4.3%, employee wages excluding bonuses rose 4.8% in the quarter, the lowest level in more than two years.
The data comes after the Bank of England cut interest rates last month, citing progress in cooling the labor market.
“Wages growth has been a real sticking point for the Bank of England and although it remains well above the Bank’s 2% inflation target and such a rise would be unpopular as far as the Bank is concerned, we are likely to We will see a significant slowdown, Lindsay James, investment strategist at Quilter Investors, said in a report.
— Karen Gilchrist
AstraZeneca raises forecasts after third-quarter profit beats forecast
The AstraZeneca logo is photographed at the 2021 World Artificial Intelligence Conference in Shanghai, China, on July 7, 2021.
Cost Photo | Future Publishing | Getty Images
British pharmaceutical company AstraZeneca It raised its full-year sales and profit forecast after third-quarter results beat expectations on demand for nursing care and rare disease drugs.
Total revenue for the three months was $13.57 billion, Reuters reported, higher than analysts’ expectations of $13.1 billion.
Chief Executive Pascal Soriot said in a statement: “We are encouraged by the broad underlying momentum our company is seeing in 2024, with growth expected to continue into 2025, as we build towards our 2030 provide a solid foundation for the year’s ambitions.
— Karen Gilchrist
Germany’s October inflation rate was 2%
People cross the road in front of the European Central Bank (ECB) headquarters building in Frankfurt am Main in western Germany on June 5, 2024.
Kirill Kudryavtsev | Kirill Kudryavtsev AFP | Getty Images
Germany’s inflation rate increased by 2% year-on-year in October, a slight increase from 1.6% last month, the latest data data Starting on Tuesday.
The Federal Statistical Office said the rise in prices in the country was mainly due to higher costs for food and services, while energy prices fell.
The coordinated inflation rate for the month was 2.4%, confirming the preliminary data.
— Karen Gilchrist
CNBC Pro: What Trump’s election victory means for global investors
President-elect Trump’s return to the White House has triggered a ripple effect in global financial markets, with many investors looking to recalibrate their portfolios to prepare for a radically different policy landscape ahead.
A Republican sweep of the presidency and possibly both chambers of Congress has triggered a return to what analysts call the “Trump trade” — but key differences from 2016 could reshape the investment outlook.
Wall Street banks have priced in the potential impact of a Trump victory on U.S. bonds, Asian and European stocks, currencies and investors’ future outlook.
CNBC Pro subscribers can read more here.
— Ganesh Rao
CNBC Pro: Want to profit from China’s stimulus package? Here’s what pros can expect next
The Chinese market is back in the spotlight after the government implemented a series of stimulus measures in recent weeks.
However, investors were disappointed by news on Friday of a five-year 10 trillion yuan ($1.4 trillion) debt swap program that fell short of calls for more direct support for the economy.
For many market participants, including Pella Funds’ Jordan Cvetanovski, this means taking a longer-term view when investing in the Asian powerhouse.
“The market is always impatient. They want to see a sugar high immediately, they want to see a big bazooka…However, as we have found over the years, the Chinese government…takes more measured fashion ,” he said.
As investors think about how to navigate the Chinese market, Bernstein listed some stock opportunities.
CNBC Pro subscribers can read more here.
— Amala Balakrishna
European Markets: Here are the opening calls
European markets are expected to open in negative territory on Tuesday.
British FTSE 100 German stocks are expected to open 18 points lower at 8,054 German DAX Index France fell 93 points to 19,355 CAC Down 34 points to 7,392 points, Italy FTSE MIB It fell 157 points to 33,659, according to IG data.
On Tuesday, Infineon, Bayer, Vodafone and AstraZeneca reported earnings. In addition to German inflation data, the UK unemployment rate and European and German ZEW economic sentiment data will also be released.
— Holly Elliot
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