Before the bell: Samsung excels

Asian markets are down this morning, although Samsung posts strong quarterly results. In the US, job creation comes in below expectations, while in Brussels property stocks attract strong buying interest.

There was little enthusiasm on Wall Street. The S&P 500 (-0.3%) edged lower, while the Nasdaq (+0.2%) managed a modest gain. Figures from payroll processor ADP show that 41,000 jobs were added in the US private sector in December, fewer than the 49,000 expected. That disappointing news was nevertheless well received, as it suggests there is still room for interest-rate cuts. Among the Magnificent Seven, Alphabet (+2.4%) stood out, while Meta (-1.8%) attracted fewer buyers. Constellation Brands (-2.2%) lost ground ahead of its earnings release, but recovered those losses after the close. There was little action on European markets as well. The Euro Stoxx 50 (+0.1%) went nowhere. Brussels was more lively. Within the Bel20, property stocks posted strong daily gains: WDP (+4.1%), Cofinimmo (+3.6%), Montea (+3.4%) and Aedifica (+2.8%) were all in demand.

Asian markets are falling this morning. In Japan, stocks in the index are down an average of 0.8%. In Hong Kong, losses reach 1.6%. In Seoul, Samsung Electronics shares fell 1.6%, after earlier trading as much as 2.1% higher. The electronics group reported a 23% increase in revenue, while operating profit more than tripled. Today brings eurozone unemployment data. Shell, Tesco, Marks & Spencer and Sodexo will also provide quarterly updates.

Samsung also benefits from artificial intelligence

Samsung published its quarterly results this morning. The South Korean electronics group saw its profit triple. Samsung has a strong position in memory chips, where demand is rising sharply thanks to artificial intelligence. Quarterly revenue climbed 23% to 55 billion euro, while operating profit rose much more strongly, to nearly 12 billion euro. That is three times the level of the final quarter of 2024. Excellent news, as it shows Samsung is strong enough to expand its margins. These figures set a record, although it is unlikely to stand for long. Anyone who is a little older may remember how Samsung was once dismissed decades ago. “Isn’t that the Aldi brand?” people used to sneer. Let them laugh. Congratulations, Samsung. Well done, Korea – South Korea, that is.

Many Belgians still find electric cars too expensive

AG published a press release this morning with the results of a mobility survey among Belgian households. The insurer finds that 15% of Belgians currently drive electric vehicles, nearly one in six. Six years ago, that figure was barely 3%. Almost one in ten Belgians has switched to electric in the past three years, and 21% of households plan to do so over the next three years. Those who remain hesitant cite limited familiarity with the new technology and high prices. No fewer than six in ten Belgians consider electric cars too expensive. In 2019, that was only four in ten. Another notable shift is that environmental motives play a smaller role. In 2019, 24% would buy an electric car for ideological reasons; today that figure is down to 18%. AG is part of Ageas, of which many of our members are satisfied shareholders. The insurer also notes that it is the market leader, with one in six vehicles insured by AG. My conclusion? Caution among consumers, combined with Europe’s recent easing of mobility rules, will lead more people to choose hybrid vehicles. Chinese hybrid cars are significantly cheaper than fully electric ones because they do not fall under heavy import tariffs. And hybrids happen to be a specialty of… BYD.

Did you know…

that governments and companies worldwide have already raised more than 230 billion dollar through new bond issues in the first seven days of the new year? According to Bloomberg, never before have so many bonds been issued at the start of a year.

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