Before the bell: bribery scandal

Results at CFE and Ackermans & van Haaren. Cannibalism at Bekaert.

In Europe, the Euro Stoxx 50 and Bel20 both rose by 0.5%. In Brussels, Argenx and UCB pushed the index higher for the second consecutive day. At Tessenderlo, more than 100 jobs are being cut. The layoffs affect the gelatin producer PB Leiner in Vilvoorde. Across the Atlantic, the S&P 500 rose by 0.5%, while the Nasdaq technology index remained unchanged. At Nvidia, which released earnings yesterday, investors were divided, with the stock ultimately closing 0.5% higher. Salesforce gained 3.1% after receiving two price target upgrades yesterday. Meanwhile, Adani Enterprises plunged 23.4%. Indian tycoon Gautam Adani is accused in New York of bribing Indian officials with more than 250 million dollars.

This morning, Japan’s central bank announced that inflation in the country rose slightly in October. Elsewhere in Asia, Tokyo’s Topix gained 0.7%, while Hong Kong’s Hang Seng Index dropped 1.9%. In Belgium, Ackermans & van Haaren announced it expects an annual profit exceeding 400 million euros. CFE forecasts a slight decline in annual revenue, and real estate company Montea revealed plans to invest nearly 30 million euros in the Netherlands. In the United States, investors await the University of Michigan’s November consumer confidence survey for further macroeconomic insights.

Is Google a Good Bargain?

The United States Department of Justice has asked a judge to force Alphabet, the company behind Google, to divest its Chrome web browser. The stock dropped 4.6%, though the news wasn’t unexpected. A month ago, the Department of Justice indicated that it believes Google abuses its dominant market position. Google controls about 90% of the search engine market, and two-thirds of people use Chrome, Alphabet’s browser, for web surfing. This combination gives Google unparalleled insight into internet user behavior. Alphabet still holds a market valuation of 2 trillion dollars. However, trading at 21 times this year’s expected earnings, it remains relatively cheap compared to other members of the “Magnificent Seven.”

Cannibalism

Belgian steel wire producer Bekaert continues to face challenging market conditions. Its revenue for the first nine months of the year reached 3 billion euros, 10% less than in the same period last year. Part of this decline stems from lower raw material and energy prices, which the company passes on to customers. Additionally, a 4% drop in volumes negatively impacted revenue. For the full year, Bekaert expects revenue to fall just short of 4 billion euros. Operating profit is expected to remain stable, between 340 and 350 million euros. The company continues to generate cash and is actively seeking acquisitions in faster-growing sectors. However, in the absence of acquisitions, Bekaert plans to buy back 200 million euros worth of its own shares over the next 24 months.

Did You Know…

a Coca-Cola ad created using AI has caused quite a stir in the United States? The absence of Santa Claus in the ad has upset many viewers. Apparently that is still too difficult for AI.

This article was translated from Dutch and was originally published on Spaarvarkens.be.