📊 Market Event Roundup

May 6th Market Event Recap:

• 🇨🇳 Xi’s European tour. China’s President kicked off his trip with a visit to France. His mission? Stabilize China’s relationship with Europe and perform damage limitation on trade ties with the EU

• 🐭 Disney earnings. It’s the first set of numbers since CEO Bob Iger successfully fought off activist investor Nelson Peltz. The likes of Uber, Airbnb, and BP also report.

• 🇬🇧 BOE rate decision. Policymakers are expected to keep rates on hold, but investors will be watching the monetary policy report for clues about a possible timeline.

May 10th Market Event Update:

🇨🇳 Xi’s European tour. China’s President’s trip began in France and then moved to Serbia and Hungary.

• In France - President Xi met with President Macron. The two discussed their differing ideas on China’s economic model for EV production. Specifically, China’s interest in building EV factories in the EU. However, this would move operations further from the battery creation in China.

• In Serbia - President Xi arrived at the same time as the commemoration of the 25th anniversary of NATO's mistaken bombing of the Chinese Embassy in Belgrade.

• In Hungary - President Xi had high praise for Prime Minister Viktor Orban who has clashed with European leaders since the beginning of Russia’s invasion of Ukraine.

📈 This week’s earnings calls.

• Disney - Beat earnings estimates with an adjusted $1.21 per share, increasing 30.1% YoY.

• AirBnb - Revenue increased 18% YoY, but shares fell 7% due to signals that sales could fall short of estimates.

• Uber - Analysts’ expectations were met with revenue up 14.8% YoY and Gross Margin (GAAP) 39.1% up from 33.1% last year.

• BP - Shares are down only 0.2% but profits plummeted 40% due to low energy prices and the US refinery outage offset increased oil and gas production.

🇬🇧 BOE rate decision came in with an ‘Optimistic’ feeling. The previous 5.25% rate was upheld and will continue for the sixth time in a row.

• “Andrew Bailey has said he is expecting inflation to fall "close" to the target 2% within the next couple of months - it has fallen to 3.2%, but is still above the Bank's target of 2%

• We also learned that activity within the housing market is "beginning to pick up" despite prices having been "broadly flat" over the past year

• Meanwhile, Bailey reported that the "big global shocks" that prompted rises in inflation have "faded"

• The Bank also anticipated unemployment to rise across the coming year but by less than previously thought”

  (Source BBC)