US tech, UK banks lead profit windfall, Fed rates meeting

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Earnings

Great technology

Advertising figures will be in the spotlight when Google’s parent Alphabet reports this week. An unexpected increase in advertising in the last few months of last year has pushed Google’s revenue up well above Wall Street forecasts.

Alphabet’s revenue grew 13% for the full year, even as non-digital sectors of the global advertising industry contracted by around 20%.

A boom in PC sales, growing demand for video games, and increased use of cloud services are expected to drive revenue for Microsoft.

In the last quarter, the company posted a 17% increase in revenue to $ 43.1 billion. The jump belied Wall Street’s expectations that the US software company’s growth rate would slow to less than 10 percent.

Sales of iPad and its wearable unit, which includes AirPods and Apple Watch, are expected to boost profits for Apple.

Sales of the company’s five product categories at $ 2.4 billion rose at double-digit percentages in January, with the iPhone being the slowest growing category in the group due to supply constraints and the delayed launch of its first 5G compatible smartphones.

A surge in e-commerce during coronavirus lockdowns has paid off for Facebook, which posted record quarterly earnings in January. But forecasts could be uncertain for this quarter after chief executive Mark Zuckerberg warned of a growing competitive threat from Apple.

Zuckerberg cited Apple’s upcoming privacy changes to the iOS 14 operating system, which requires apps on iPhone to obtain user permission to harvest ad targeting and tracking data.

AmazonThe move to bolster its infrastructure to offer overnight shipping, growth in other areas of the business, and rising numbers for its Prime subscriptions are expected to boost revenue for the e-commerce giant.

Amazon’s profits over the holiday season far exceeded analysts’ expectations in the last quarter. The retailer topped revenue estimates, but it was the strong net income that surprised investors the most: $ 3.3 billion versus a consensus of $ 1.97 billion, according to data from S&P Capital IQ.

Banks

Barclays reports this week after suffering a 68% drop in the fourth quarter and warned that the long-term impact of the coronavirus was still uncertain, the real fallout disguised by government and central bank support programs.

HSBC, which unveiled a strategic shift to Asia and withdraw from the west, pledging to invest $ 6 billion to expand into Hong Kong, China and Singapore, while selling its retail division to the States -Unis and its French consumer bank, publishes its results this week.

Lloyds, NatWest and Standard charter also report this week.

Provisions for doubtful debts and impairment of the value of certain SantanderThe lender’s activities are expected to have an impact on the lender’s bottom line.

In February, the loss of 8.8 billion euros was exacerbated by new costs related mainly to the restructuring of the Spanish activities of Santander in the fourth quarter. However, the bank predicted a rebound in profitability in 2021.

An increase in bond and rate trading income is expected to increase German BankGermany’s net profit, when Germany’s largest lender reports it.

In the last quarter, Deutsche achieved a net profit for the first time in six years thanks to a global business boom. The bank achieved a net profit of 113 million euros for 2020, the first since 2014 and higher than analysts’ expectations.

Visa and Mastercard payment groups are also reporting this week.

Energy

Some of the world’s largest energy groups reported record annual losses in the last quarter, marking a brutal 12 months for an industry under increasing pressure to accelerate the transition to cleaner fuels. Both ExxonMobil, the largest oil producer in the United States, and BP, the British energy group, will inform investors.

ExxonMobil racked up losses of more than $ 20 billion last year – the first annual loss in its history, while BP recorded its first annual loss since the Deepwater Horizon disaster more than ten years ago after the fall of fourth quarter profits of 96%.

Total, which will also release its results this week, in February joined the list of oil majors reporting multibillion-dollar full-year losses, but it provided a rare ray of hope in the pandemic-stricken sector by surpassing expectations of the fourth quarter and maintaining its dividend.

Other companies to watch this week include electric car maker You’re herepharmacist AstraZeneca, coffee chain Starbucks, aerospace manufacturer Boeing, British pharmacist GlaxoSmithKline, Owner of KFC YUM! Brands, food manufacturer Kraft Heinz and fast food chain Mcdonalds.

Key reports

Monday

National Railway of Canada; You’re here; Pearson

Tuesday

3M; Advanced micro-systems; Alphabet; Amgen; BP; Centene; Ecolab; Eli Lilly; Fiserv; General Electric; HSBC; Illumina; Marsh & McLennan Companies; Microsoft; Mondelez International; Roper Industries; Sherwin-Williams; Starbucks; Stryker; Texas Instruments; United Parcel Service; Valley; Visa; Waste Management; Novartis; Whitbread; Focusrite; Aveva; IWG; PZ Cussons

Wednesday

ADP; Apple; Boeing; Boston Scientific; Equinix; Facebook; GlaxoSmithKline; Humana; Moody’s; Norfolk Southern; Qualcomm; Sanofi; ServiceNow; German Bank; eBay; Ford Motor; Shopify; Spotify; YUM! Brands; Chubb; Santander; Dixons Carphone; Fresnillo; Lloyds Banking Group; London Stock Exchange; Metro Bank; Nichols; Khaki; Reckitt Benckiser; WPP; French connection; J Sainsbury

Thursday

Altria; Amazon; American tower; Baxter International; Bristol-Myers Squibb; Caterpillar; Comcast; Digital real estate; Gilead Sciences; Intercontinental exchange; Kraft Heinz; MasterCard; McDonalds; Merck & Co; Newmont Mining; Northrop Grumman; S&P Global; From South; Thermo Fisher Scientific; Total; Vertex Pharmaceuticals; Twitter; Royal Dutch Shell; Airbus; Willis Towers Watson; WHSmith; Flutter Entertainment; Glencore; Inchcape; Meggitt; NatWest; Schroders; Smith & Nephew; St James’s Place; Standard Chartered; Unilever

Friday

AbbVie; AON; AstraZeneca; Charter Communications; Chevron; Colgate-Palmolive; ExxonMobil; Barclays; BNP Paribas

Economic data and central banks

Investors will follow the US Federal Reserve’s post-meeting press conference on Wednesday for any indication from President Jay Powell on thinking about the looming rise in inflationary pressures that could force it to cut its monthly asset purchase program by 120. billion dollars while key rates remain tied. close to zero.

While Powell acknowledged this month that the US economy is at an “inflection point,” he has not deviated from his stance that monetary policy will remain ultra-accommodative until targets are met. central bank to a more inclusive recovery are achieved.

In the weeks following the last U.S. central bank rally in mid-March, initial jobless claims in the world’s largest economy fell to their lowest level since the start of the pandemic and data showed that March retail sales increased the most in March. 10 months.

The first growth figures for the euro area, which will be released by Eurostat on Friday, are expected to show the region’s gross domestic product contracted by 0.8% in the first quarter compared to the previous one, according to a Reuters survey.

A drop in output would push the bloc into the second technical recession – defined as two consecutive quarters of GDP contraction – since the start of the pandemic.

Nomura analysts, however, expect an economic rebound from the end of the second quarter.

Data released at the end of last week reinforced that optimism, with activity in the eurozone’s services sector returning to growth this month for the first time since last summer despite continued restrictions. The IHS Markit euro area flash purchasing managers index for services rose to 50.3 in April, from 49.6 in March.

China’s manufacturing purchasing managers index for April, released on Friday, will be watched closely for signs of further expansion as the country’s economic recovery continues.

Factory activity in the country exceeded expectations to reach 51.9 in March, according to official figures from the National Bureau of Statistics. A reading greater than 50 extension signals.

Data released earlier this month showed gross domestic product surged by a record year-over-year increase in the first quarter, although the rise was flattered by a contraction a year earlier due to the pandemic.

Non-manufacturing PMI data, also released on Friday and which jumped to 56.3 in March, will point to the role of China’s services sector in the recovery.

Key data and events

Monday

Germany, Ifo expectations (April)

Tuesday

United States, consumer confidence (April)

Sweden; Hungary; Japan, tariff decisions

Wednesday

Japan, retail sales (March)

Australia, IPC (Q1)

Germany, GfK consumer confidence (May)

France, consumer confidence (April, index)

Canada, retail sales (February)

United States, tariff decision

Thursday

Sweden, GDP (Q1)

Germany, unemployment rate (April)

Euro zone, consumer confidence (April)

Germany, CPI (April, flash)

United States, first jobless claims

United States, Real GDP (Q1)

United States, real consumer spending (Q1)

Egypt, tariff decision

Friday

Japan, unemployment rate (March)

Japan, industrial production (March, preliminary)

Japan, Manufacturing PMI (April, final)

China, NBS non-manufacturing PMI (April, index)

China, NBS manufacturing PMI (April, index)

France, GDP (Q1, flash)

France, IPC (April, flash)

Spain; Germany; Italy, GDP (Q1, flash)

Euro zone, HICP (April, flash)

Euro area, GDP (Q1)

Canada, GDP (February)

United States, personal income (March)

United States, personal expenses (March)

Core PCE inflation in the United States (March)

United States, sentiment from the University of Michigan (April)

Colombia, tariff decision

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