Saturday, 26 Nov 2022

Oil Extends Losses After Large Inventory Build-up

Vodaphone To Sell 81.7% Stake In Vantage Towers To GIP, KKR Consortium For Minimum Of 3.2 Bln Euros

Vodafone Group Plc (VOD.L,VOD) announced the sale of its 81.7 percent stake in Vantage Towers AG to the consortium led by Global Infrastructure Partners or GIP and KKR for minimum net cash proceeds of 3.2 billion euros. The Consortium will obtain a shareholding in the JV of up to 50 percent by acquiring JV shares from Vodafone for cash. Sale proceeds will be used for deleveraging and reducing net debt.

Vodafone said the deal results in a premium of 19 percent to Vantage Towers’ 3-month volume-weighted average share price at a valuation of 32 per share euros.

The joint venture will make a voluntary takeover offer for the outstanding Vantage Towers shares held by minority shareholders. The transaction is expected to close in the first half of 2023.

Ceva Inc. Q3 Earnings Summary

Below are the earnings highlights for Ceva Inc. (CEVA):

Earnings: -$22.30 million in Q3 vs. -$0.17 million in the same period last year.
EPS: -$0.96 in Q3 vs. -$0.01 in the same period last year.
Excluding items, Ceva Inc. reported adjusted earnings of $4.71 million or $0.20 per share for the period.

Analysts projected $0.20 per share
Revenue: $33.66 million in Q3 vs. $32.79 million in the same period last year.

Walker & Dunlop, Inc. Q3 Income Drops, misses estimates

Walker & Dunlop, Inc. (WD) released a profit for third quarter that decreased from the same period last year and missed the Street estimates.

The company’s bottom line came in at $46.83 million, or $1.40 per share. This compares with $71.72 million, or $2.21 per share, in last year’s third quarter.

Analysts on average had expected the company to earn $1.99 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter fell 8.9% to $315.61 million from $346.29 million last year.

Walker & Dunlop, Inc. earnings at a glance (GAAP) :

-Earnings (Q3): $46.83 Mln. vs. $71.72 Mln. last year.
-EPS (Q3): $1.40 vs. $2.21 last year.
-Analyst Estimates: $1.99
-Revenue (Q3): $315.61 Mln vs. $346.29 Mln last year.

Centre-left Bloc Wins Denmark Election

The ruling “red bloc” of center-left parties won Denmark’s general election.

The coalition, led by Prime Minister Mette Frederiksen’s Social Democrats party, is on course to secure majority in the 179-seat parliament.

The bloc won 87 seats in Denmark, and one seat in the Faroe Islands, and are projected to win two more seats in Greenland, a sovereign Danish dependent territory outside the mainland.

The late results were crucial for the ruling bloc in securing the 90 seats threshold that is necessary to form a government.

The result is seen as a vote of confidence in Fredreicsen.

The Social Democrats displayed their best performance in more than two decades by winning 27.5 percent of the vote, making them the biggest party in the Folketing, the Parliament of Denmark.

Addressing supporters in capital Copenhagen, she thanked them for giving another mandate at the polls.

“Thanks to all Danes who have trusted us with your vote. It’s a huge vote of confidence. I know some of you have had doubts along the way.”

She said she is “thrilled and proud” for getting the best election result in 20 years.

Frederiksen said she will submit the government’s resignation to Queen Margrethe, and that she wishes to form a broader coalition government incorporating other parties.

Gold Tad Lower As Dollar Rebounds

Gold prices were a tad lower on Wednesday after rising more than 2 percent in the previous session to reach one-month highs amid the dollar’s retreat.

Spot gold slipped 0.2 percent to $1,708.23 per ounce, while U.S. gold futures were down 0.3 percent at $1,710.60.

The dollar edged higher in early European trade as investors monitored results from the U.S. mid-term election.

Early results from the elections showed Republicans are likely to narrowly win control of the U.S. House.

Equity markets are betting on the possibility of a divided government that could prevent major policy changes.

Investors also await the U.S. consumer price inflation report due on Thursday, which might suggest the path for interest rates ahead.

Economists expect a modest slowdown in the annual rate of consumer price growth, which could add to optimism about a slowdown in the pace of rate hikes.

Official data showed earlier in the day that consumer prices in China were up 2.1 percent on year in October.

That was shy of expectations for an increase of 2.4 percent and down from 2.8 percent in September.

Producer prices slipped 1.3 percent on year in October, beneath expectations for a decline of 1.5 percent following the 0.9 percent increase in September.

Oil Extends Losses After Large Inventory Build-up

Oil prices fell for a third straight session on Wednesday after industry data pointed to rising U.S. inventories. China demand concerns also weighed on prices.

Benchmark Brent crude futures dipped 0.2 percent to $95.20 a barrel, while WTI crude futures were down 0.3 percent at $88.64.

The American Petroleum Institute (API) reported that oil inventories increased by 5.61 million barrels last week, following a major surprise draw in crude oil inventories of 6.53 million barrels in the previous week.

The build in inventories was partially due to the Department of Energy’s release of 3.6 million barrels from the Strategic Petroleum Reserves in the week ending November 4.

The report also showed higher gasoline stockpiles, adding to demand concerns amid signs of worsening COVID-19 outbreaks in China.

COVID cases hit the highest in more than five months in Beijing, with 78 new infections reported for Wednesday.

The official inventory report from the Energy Information Administration (EIA) will be out later in the day.

On Tuesday, the EIA has slashed its world oil demand growth forecast for 2023 by 320,000 barrels per day while raising 2022 oil demand growth by 140,000 bpd.

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