Monday, 6 Dec 2021

China Leaves Loan Prime Rate Unchanged

Hitachi H1 Profit Climbs On Strong Revenue Growth – Quick Facts

Japanese conglomerate Hitachi Ltd. (HTHIF.PK,HTHIY.PK) reported Wednesday that its first-half net income attributable to shareholders was 322.4 billion yen or $2.88 billion, 29 percent higher than last year’s 250.7 billion yen.

Earnings per share were 333.24 yen or $2.98, up from 259.29 yen a year ago.

EBIT grew 10 percent to 425.4 billion yen or $3.80 billion from 386.2 billion yen last year. Adjusted operating income was 310 billion yen or $2.77 billion, 72 percent higher than last year’s 180.7 billion yen.

Revenues for the period increased 29 percent to 4.83 trillion yen or $43.15 billion from previous year’s revenue of 3.76 trillion yen.

Heineken N.V. 9-month Profit Rises; Full Year Expectations Unchanged – Quick Facts

While issuing a trading update for the third quarter of 2021, Heineken N.V. (HEINY.OB) said the macro environment remains volatile and the company is responding accordingly. Heineken is taking an assertive approach to pricing and cost across all of its markets to meet this challenge. As a result, the company’s expectations remain unchanged, with full year results remaining below 2019.

For the first nine months, reported net profit was 3.08 billion euros compared to 396 million euros, prior year. The company noted that this includes an exceptional gain of 1.3 billion euros.

Beer volume was down 5.1% organically for the third quarter; while up 4.0% for the first nine months. The Heineken brand sustained its growth, with volume up 8.0% in the quarter; and up 15.1% for the first nine months.

The company’s Asia Pacific region was deeply impacted by the pandemic in the third quarter.

Mike Pompeo: Xi wants virtual meeting with Biden to secure good deal for CCP

Mike Pompeo: Xi knows Biden is not defending America’s interests

Former secretary of state warns of the Biden admin putting politics ahead of human rights on ‘The Ingraham Angle’

President Biden will meet virtually with his Chinese counterpart Xi Jinping before the end of the year, Jake Sullivan, the president’s national security adviser said. Mike Pompeo, the former secretary of state, joined “The Ingraham Angle” to discuss his forecast of the meeting. 

WH TRIES TO CLARIFY MULTIPLE BIDEN COMMENTS AT LAST WEEK’S TOWN HALL

MIKE POMPEO: “He [President Xi] believes he will be sitting across the table from a leader who will not defend America’s interests, not provide a clear articulation of America being first and foremost in his policy vision. He thinks that he is sitting across from a leader who he can roll and get a deal that will make a lot better outcome for the Chinese Communist Party and a worse outcome for the American people—frankly the worst outcome for most of the Chinses people as well. But certainly, one that’s not in America’s best security interest. I think that’s the reason he wants to sit across the table from President Biden. He wants to get a fat deal for his own team.”

Nabors Industries Ltd. Q3 Earnings Summary

Below are the earnings highlights for Nabors Industries Ltd. (NBR):

-Earnings: -$122.50 million in Q3 vs. -$161.12 million in the same period last year.
-EPS: -$15.79 in Q3 vs. -$23.42 in the same period last year.
-Revenue: $524.37 million in Q3 vs. $437.61 million in the same period last year.

European Economics Preview: Germany Ifo Business Confidence Data Due

Business confidence survey data from Germany is due on Monday, headlining a light day for the European economic news.

At 3.00 AM ET, business confidence survey results are due from the Czech Statistical Office. Also, manufacturing sentiment survey data is due from Turkey.

At 4.00 am ET, ifo Institute is scheduled to issue Germany’s business confidence survey data. Economists expect the business climate index to fall to 97.9 in October from 98.8 in September.

In the meantime, unemployment report is due from Poland. The jobless rate is seen falling to 5.7 percent in September from 5.8 percent in August.

At 6.00 am ET, Bundesbank is set to publish its monthly report.

Labour leader Keir Starmer tests positive for COVID

Labour leader Sir Keir Starmer has tested positive for coronavirus so will miss the opportunity to challenge the government in-person on its budget this afternoon.

Former Labour leader Ed Miliband is standing in for Sir Keir at Prime Minister’s Questions, which has taken place just before Rishi Sunak announces the budget.

Sir Keir will have to self-isolate for 10 days so will miss the beginning of the COP26 climate change summit, however, it has not been confirmed if he was attending.

He tested positive for COVID-19 after taking a lateral flow test earlier on Wednesday.

China Leaves Loan Prime Rate Unchanged

China maintained its benchmark loan prime rates for the 18th consecutive month, as widely expected.

The one-year loan prime rate was kept unchanged at 3.85 percent and the five-year LPR at 4.65 percent.

The one-year and five-year loan prime rates were last lowered in April 2020. The one-year loan prime rate was cut by 20 basis points and five-year rate by 10 basis points in April 2020.

Markets expected LPR rates to remain on hold as the People’s Bank of China had kept the rate on its medium-term lending facility unchanged early this month.

The loan prime rate is fixed monthly based on the submission of 18 banks, though Beijing has influence over the rate-setting. This lending rate replaced the central bank’s traditional benchmark lending rate in August 2019.

Pressure to relieve the financing strains of indebted borrowers will intensify as economic activity weakens, Julian Evans-Pritchard and Sheana Yue, economists at Capital Economics, said.

As such, the economists expect the PBOC to start lowering policy rates, including the LPR, before the end of this year, followed by more reductions in 2022. The economists expect 50 basis points of cuts in total and think that the 10-year yield will end next year at 2.50 percent.

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