MORNING NEWS

Market strategy by Swissquote Analysts

By Peter Rosenstreich
16.06.2024

French assets remain under pressure as the market prepares for snap elections at the end of the month, with the prospect of a win by Marine Le Pen’s far‑right National Rally party. The National Rally, along with other European right‑wing nationalist parties, performed strongly at last weekend’s European parliamentary elections, although mainstream parties look set to keep their majority. The results prompted French President Emmanuel Macron to call snap elections, leading to uncertainties about the country’s near‑term political and economic outlook. The weeklong meltdown in French assets led Finance Minister Bruno Le Maire to warn that France would be plunged into a debt crisis similar to the one sparked in the U.K. two years ago if the National Rally wins. France’s CAC‑40 slid more than 2% on Friday to reach its lowest level since late January, with bank stocks falling by between 3% and 5%.

By Peter Rosenstreich
13.06.2024

Stellantis will shift the focus of its capital allocation strategy to efficient investments and shareholder returns, and will target a higher dividend in 2025. The Netherlands‑based maker of Jeep, Dodge and a dozen other brands said Thursday that it will set a liquidity target of 25% to 30% of revenue in the medium term to support shareholder rewards.

By Peter Rosenstreich
12.06.2024

Tesla Chief Executive Elon Musk said late Wednesday on X that preliminary voting results show shareholders currently backing proposals to ratify his pay package and reincorporate the company in Texas by “wide margins.” In the post, he included line graphs showing the cumulative “for” votes on both resolutions above the line needed for approval. The post came ahead of the company’s annual shareholders meeting Thursday, at which the final results are expected to be announced.

By Peter Rosenstreich
11.06.2024

Oracle shares were shooting more than 9% higher in Tuesday’s extended session after the company delivered upbeat guidance that seemed to overshadow earnings miss for the latest quarter. The software company reported fiscal fourth‑quarter net income of $3.14 billion, or $1.11 a share, compared with $3.32 billion, or $1.19 a share, in the year‑earlier period. On an adjusted basis, Oracle ORCL earned $1.63 a share, whereas analysts tracked by FactSet were expecting $1.65 a share. Revenue rose to $14.29 billion from $13.84 billion, while analysts tracked by FactSet were anticipating $14.56 billion.

By Nadine PEREIRA
10.06.2024

Apple joined the AI arms race, saying Monday it plans to bring a more personalized version of artificial intelligence to its 2.2 billion device users ‑ including striking a deal with ChatGPT‑maker OpenAI. The new AI system, which it called “Apple Intelligence,” offered a preview to what many consider to be the holy grail of AI, a voice assistant empowered with enough personal user information to meaningfully help complete an array of tasks. Apple has partnered with OpenAI, and its ChatGPT, for some new AI functions, such as answering more complex queries or composing messages, capabilities that Apple’s AI can’t handle.

By Peter Rosenstreich
09.06.2024

Saudi Arabia is poised to raise more than $11.2 billion from the sale of shares in its crown jewel, oil giant Aramco, generating fresh cash for the country's efforts to diversify its economy beyond oil. The country and its de facto leader, Crown Prince Mohammed bin Salman, face near‑term pressure to fund a slew of megaprojects including a new city and a global airline. The country supersized a $12 billion debt sale earlier this year and has transferred billions from its foreign‑currency reserves to its sovereign‑wealth fund.

By Peter Rosenstreich
06.06.2024

Credit Suisse bondholders sued Switzerland in a Manhattan federal court on Thursday, alleging the country put national interests above the law when their bonds were voided in the banks rescue last year by UBS. Switzerland stunned markets by ordering $17 billion in so‑called AT1 bonds at Credit Suisse to be written down before UBS bought it, upending the usual practice of bondholders having a priority claim over shareholders. Holders of the bonds, ranging from distressed debt funds to U.S. and Swiss pension fund managers, say the writedown was disproportionately punitive. Switzerland acted as self‑interested politicians, ramming through the deal, ignoring the multitude of other potential buyers, Thursdays lawsuit filed in Manhattan alleged. Without any competitors, UBS was free to name its price and dictate the terms of its acquisition.

By Peter Rosenstreich
05.06.2024

Nvidia rose 5.2% Wednesday and is now up more than 150% this year. It trades at about 45 times the per‑share earnings it is expected to produce over the next year. Strong demand for its graphics‑processing units, used in the artificial‑intelligence systems that have captivated Wall Street, has led to robust gains in sales and earnings and a buying frenzy for the stock. The Nvidia rally has picked up steam in recent weeks because the company’s stock is set to split 10 for one at the end of this week. That means one Nvidia share, now trading at a record high around $1,225, would be above $120 on Monday morning after the split, based on Wednesday’s closing price.

By Nadine PEREIRA
04.06.2024

Momentum in artificial‑intelligence servers lifted Hewlett Packard Enterprise Co. to a sizable revenue beat in the latest quarter as the company returned to growth. HPE reported $7.2 billion in total revenue for its fiscal second quarter, up 3% from a year before and ahead of the $6.8 billion FactSet consensus. Growth in the latest quarter came after HPE posted a 14% revenue decline in the fiscal first quarter. The stock climbed 15.3% in Tuesday’s extended session. The company called out AI as a chief driver, as cumulative AI systems orders came out to $4.6 billion. Chief Financial Officer Marie Myers spoke of “a pipeline that has…multitudes of the current orders.” While current Nvidia Corp. chips can work with water cooling; Myers thinks direct liquid cooling will become more necessary once the Blackwell line rolls out.

By Nadine PEREIRA
03.06.2024

Intelligence‑related chip announcements at the Computex trade show in Taipei has spurred a rally in related semiconductor shares, as the battle heats up for AI chips targeted at both data centers and PCs. There already have been announcements at Computex from Nvidia, Advanced Micro Devices, Qualcomm, and Arm Holdings, with Intel’s keynote still to come. As per usual when it comes to AI chips, Nvidia has received the most attention. Earlier this year, Nvidia unveiled plans for a new generation of GPUs called the Blackwell B200, which will succeed the current top‑of‑the line Hopper H100. In Taipei, Nvidia unveiled plans for three future generations of GPUs—the Blackwell Ultra in 2025, a new chip called Rubin in 2026, which includes a new CPU called Vera, and a Rubin Ultra chip in 2027.

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