In today’s briefing:
- Microsoft’s Strong Q2: Solid Revenue and Earnings Growth Despite Cloud Concerns
- [Q2 Earnings Review] ADM Falls Short of Expectations on Weak Results in AS&O & Nutrition Businesses
- Copper Tracker August 5th, 2024: Physical/Equity Screens And Trades, Positive Signs For Copper
- Intel’s Market Meltdown: Analyzing the Struggles of a Semiconductor Leader
- [CB 30/2024] Corn & Soy Tumble on Improving Weather; Chinese Demand Likely to Support Soy
- Viacom Inc – Paramount Global in Takeover Crosshairs: What Investors Need to Know!
Microsoft’s Strong Q2: Solid Revenue and Earnings Growth Despite Cloud Concerns
- Q2 revenue of $64.73 billion and EPS of $2.95 surpassed expectations of $64.39 billion and $2.93, respectively. Intelligent Cloud revenue reached $28.52 billion but below analysts’ $28.68 billion expectation.
- Activision acquisition boosted revenue by 3 points but cut EPS by $0.06 due to lower operating income.
- While Microsoft’s core cloud business slowed, it increased capex significantly. Uncertain GenAI monetization might shift wealth from Microsoft shareholders to Nvidia shareholders.
[Q2 Earnings Review] ADM Falls Short of Expectations on Weak Results in AS&O & Nutrition Businesses
- ADM’s Q2 results underperformed analyst expectations with both EPS and revenue missing analyst estimates.
- Operating profit declined for Ag Services & Oilseeds (ASO) and Nutrition, while Carbohydrate Solutions saw an uptick, driven by margin and volume expansion in Starches and Sweeteners.
- ADM expects weak Q3 for AS&O and Carbohydrate Solutions, with improvements expected in H2 2024. Nutrition is expected to perform strongly due to cost efficiency and volume expansion.
Copper Tracker August 5th, 2024: Physical/Equity Screens And Trades, Positive Signs For Copper
- Copper declined below the 9,000 USD/ton levels (WoW by -0.5%) due to weakness in financial markets caused by the Federal Reserve’s slowness in cutting rates.
- Positive signs for copper were the Yangshan Copper Premium inflecting into positive territory and combined inventory on all exchanges being drawn down by almost 5%.
- Lundin Mining (LUN CN) and BHP Group Ltd (BHP AU) will acquire Filo (FIL CN) for 4.1 bn CAD and develop the Josemaria project in Argentina.
Intel’s Market Meltdown: Analyzing the Struggles of a Semiconductor Leader
- In a shocking turn of events, Intel Corporation, a long-standing leader in the semiconductor industry, witnessed one of its worst days on Wall Street, losing over a quarter of its market value in a single trading session.
- The drastic drop followed the company’s announcement of a $1.6 billion net loss for the second quarter of 2024, a stark contrast to the $1.47 billion profit reported in the same period the previous year.
- Intel’s share price plummeted by 27%, marking its steepest decline since 1974, as the company grappled with disappointing earnings, a bleak forecast, and a massive restructuring plan.
[CB 30/2024] Corn & Soy Tumble on Improving Weather; Chinese Demand Likely to Support Soy
- North Dakota accounts for 51% of total US spring wheat production. The region’s projected 2024 crop yield 15% higher YoY at an average of 54.5 bushels per acre.
- Large old-crop corn inventories record yield of 183-185 bpa collectively dragging corn prices down.
- Wheat vols rebounded last week after falling the prior week. Prices face uncertainty as strong exports, lower production in EU & China provides support against massive US harvest.
Viacom Inc – Paramount Global in Takeover Crosshairs: What Investors Need to Know!
- In a dynamic and evolving media landscape, Paramount Global finds itself the subject of takeover speculation, igniting interest among investors.
- Reports suggest that Edgar Bronfman Jr., the former CEO of Warner Music and Seagram, is considering a bid for Paramount’s parent company, National Amusements, with backing from Bain Capital.
- This development emerges just as Paramount is concluding a 45-day “go-shop” period related to a potential deal with Skydance Media, expiring on August 21st.
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