Before the bell: Snip, Snip

Central banks trimmed interest rates while the final corporate earnings reports of the year rolled in.

What do central bankers in 2024 have in common with hairdressers? Both seem fond of using figurative scissors this year. While one trims hair, the other trims interest rates. As expected, ECB President Christine Lagarde cut rates by 25 basis points yesterday. The move was anticipated by the market and barely caused a ripple. Not so in Switzerland, where central bankers surprised everyone with an unexpected 50 basis point cut, halving their rate to 0.5%. The days of zero interest rates seem to be inching closer again in the Swiss Alps. Meanwhile, U.S. investors are watching closely to see if MicroStrategy will be added to the Nasdaq 100. Such a move could give Bitcoin another push toward reclaiming the 100,000 dollar milestone.

On the corporate front, there’s plenty of news this morning. Grid operator Elia finally announced a new CEO: Bernard Gustin will take the helm, with Marco Nix as CFO. Metal specialist Campine expects its 2024 profit to surpass expectations, with annual revenue up 12% and EBITDA up a stunning 50%. However, the company refrains from making forecasts for 2025. Real estate developer Atenor secured building permits for its Move’Hub project in Brussels. Chip producer Broadcom beat profit expectations, fueled by growth in the AI sector. A positive market opening is expected.

From Denmark to Vietnam

One of the most overlooked giants in the global economy is American retail giant Costco. Its market capitalization is now larger than Denmark’s GDP. In just 90 days, Costco recorded revenue of 62.15 billion dollars, exceeding expectations. Even more impressive was its earnings per share of 4.04 dollars, beating the forecasted 3.79 dollars. Costco operates similarly to Belgium’s Colruyt, leveraging bulk purchasing to offer goods at extremely low prices. The model is working: e-commerce orders rose 5%, and revenue climbed 13% year-over-year. Already surpassing Denmark’s GDP, Costco could rival Vietnam’s GDP in just one or two years if it maintains this growth trajectory.

Everything must go!

Good news for Cofinimmo shareholders: the company announced the sale of its last two office buildings in Antwerp, along with a nursing home in Brussels and a care facility in Arnhem. The proceeds align with the book value, generating 40 million euros in cash. This is reassuring for shareholders, as Cofinimmo has been grappling with a hefty debt load while facing pre-committed investments. These divestments ease concerns about a potential capital increase and reduce the office share in its portfolio—an asset class currently out of favor with investors.

Did you know…

Elon Musk’s net worth surpassed 400 billion dollars yesterday? Since November, Musk’s wealth has increased by 66%.

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