Pepsico Inc Q2 adjusted earnings Beat Estimates

Pepsico Inc (PEP) revealed a profit for its second quarter that increased from the same period last year.

The company’s earnings totaled $2.04 billion, or $1.44 per share. This compares with $1.82 billion, or $1.28 per share, in last year’s second quarter.

Excluding items, Pepsico Inc reported adjusted earnings of $2.18 billion or $1.54 per share for the period.

Analysts had expected the company to earn $1.50 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 2.2% to $16.45 billion from $16.09 billion last year.

Pepsico Inc earnings at a glance:

-Earnings (Q2): $2.18 Bln. vs. $2.30 Bln. last year.
-EPS (Q2): $1.54 vs. $1.61 last year.
-Analysts Estimate: $1.50
-Revenue (Q2): $16.45 Bln vs. $16.09 Bln last year.

How Deutsche Bank could turn into another Lehman Brothers

Stock enthusiasts would be wise to keep a close watch on what is happening at Deutsche Bank, which shook up its business and said it planned to lay off thousands of traders and other workers.

One of Deutsche Bank’s main problems has been the derivatives it holds. Derivatives are just what the word implies — they are securities derived from other securities, and they are very complicated.

But the important fact to remember is that Deutsche Bank traded these derivatives with other financial firms. So, is this going to be another Lehman Brothers situation whereby one bank’s problems becomes other banks’ problems?

Pay close attention to this.

If the situation gets out of hand, the Federal Reserve and other central banks will have no choice but to cut interest rates even if it’s not the best thing for the world economies.

UK to sell 2.5 bln stg of 2041 linker after sale via syndication

LONDON, July 9 (Reuters) – Britain will sell 2.5 billion pounds ($3.1 billion) of a 20-year index-linked gilt after attracting bids worth more than 20 billion pounds at a sale via syndication on Tuesday, one of the bookrunners said.

Goldman Sachs International, JPMorgan, Nomura and UBS Investment Bank acted jointly as bookrunners for the sale of the 0.125% 2041 linker.

The bond was priced 3.75 basis points above the similar 0.625% 2040 index-linked gilt. ($1 = 0.8026 pounds) (Reporting by Andy Bruce; Editing by Catherine Evans)

Home Depot Shoppers Boycotting Store For Co-founder Supporting Trump

Home Depot is facing the heat of shoppers, who are threatening to boycott the home improvement retailer after its co-founder reportedly offered millions to support Donald Trump’s re-election.

In a recent interview with the Atlanta Journal-Constitution, billionaire Bernie Marcus, who retired from Home Depot in 2002, said that he would be donating to President Trump’s bid for a second term in the White House. Marcus has been a Trump supporter for long and donated $7 million to help in Trump’s 2016 election.

Marcus told in the interview, “He’s got a businessman’s common sense approach to most things… the truth is he has produced more than anybody else. He has. If we look at this country, I would say that we are better off today than we were eight years ago or six years ago.”

Following the news, the messages are outpouring in social media under the hashtag #BoycottHomeDepot. The customers also said they are discarding their Home Depot cards, and urged to shop at competitors like Lowe’s and Menards. The shoppers have also posted on Home Depot’s official Twitter account with comments like “just say no to Home Depot”.

TCS April-June consolidated net profit rises 10.8% to ₹8,131 crore

Tata Consultancy Services revenue has been up 11.4% to ₹38,172 crore

Tata Consultancy Services Ltd. on July 9 reported a 10.8% rise in its first-quarter profit, helped by a strong performance in its key banking, financial services and insurance segment.

The Mumbai-headquartered company said its net profit for the quarter ended June 30 rose to 81.31 billion rupees from 73.40 billion rupees a year ago.

Analysts on average had expected the company to report a profit of 78.24 billion rupees, according to Refinitiv data.

TCS posted 11.4% rise in revenue.

Gold Edges Lower As Dollar Firms On Fed Rate Repricing

Gold prices edged lower on Tuesday, the U.S. Treasury yield curve flattened and the U.S. dollar scaled to multi-week highs as markets repriced chances of Fed easing.

Spot gold slid 0.4 percent to $1,390.18 per ounce while U.S. gold futures were down 0.6 percent at $1,392.05 an ounce.

Caution prevailed ahead of Fed Chairman Jay Powell’s two-day testimony to Congress on Wednesday and Thursday, with markets waiting to see whether the language will be dovish enough after the release of a stronger-than-expected jobs report.

Economists had been nearly certain the Federal Reserve would cut interest rates in coming weeks. But Friday’s robust U.S. jobs data tempered expectations the U.S. central bank will deliver a large rate cut.

The Federal Reserve meets on July 30 and 31, with analysts expecting that Fed officials will probably think the labor market is too hot to handle rate cuts.

BMO downgrades CannTrust after Canadian government seizes its cannabis for unlicensed growing

BMO Capital Markets became the latest bank to downgrade the shares of Canadian cannabis company CannTrust Holdings Inc. CTST, -22.47%TRST, -22.60% on Tuesday, cutting its rating to market perform from outperform after the Canadian government seized the company’s cannabis because it was growing product in unlicensed rooms. "It is unclear how the company would have commenced cultivation in unlicensed rooms and we are surprised by this development and the inability of CannTrust’s internal operational controls to prevent this," BMO analysts wrote in a note to clients. "In addition, it is unclear what Health Canada could decide with respect to the status of the affected inventory and finished products that were sold to the market." The analysts noted key personnel turnover at the affected facility and among senior management last fall. BMO lowered its stock price target to $6 on the news. CannTrust shares were down 0.8% premarket, adding to their prior day loss of about 22%.