![]() ![]() The acid test for the severity of a recession is how much someone is prepared to pay for food on the go. ![]() Earnings per share came in at $0.99 versus the $0.78 pencilled in by analysts, supported by a strong showing from its theme parks. The company saw the first quarterly drop in subscriber numbers since the launch of its Disney+ platform in 2019 but the loss of 2.4 million was less than the three million which had been forecast. He also announced 7,000 job cuts in a bid to save £5.5 billion in costs. He is simplifying the group's structure with three divisions: Disney Entertainment (streaming and most other media operations), ESPN (the sports TV network) and Parks, Experiences and Products. Under pressure from activist investor Nelson Peltz and other shareholders after a miserable run for the share price under his one-time successor and predecessor Bob Chapek, Iger has wasted no time in acting. ![]() The market reacted positively to the first earnings update under returning chief executive Bob Iger at Walt Disney (DIS:NYSE). ‘The bigger picture here, though, is that the surge in layoff announcements will pass through into claims by late winter/early spring, allowing for the usual lags,’ Pantheon Macroeconomics said.įinancials also weighed on the market, pressured by a dip in bank stocks as an inverted yield curve, in which short rates are higher than longer rates, tends to keep a lid on bank lending margins' profitability. Worries about a recession have been belied by a strong jobs market, though layoffs continue to flow through, with Disney (DIS:NYSE), Yahoo, Zoom (ZM:NASDAQ), Dell Technologies (DELL:NYDSE), and PayPal (PYPL:NASDAQ) swinging the jobs axe during the past few days. The more considered response from investors had led US equity markets lower over the past week, with small caps hurting more than most. ‘We didn't expect it to be this strong,’ Powell said at the Economic Club of Washington, referring to the nonfarm payrolls report for January, but it ‘shows why we think this will be a process that takes quite a bit of time.’ His comments renewed investor hopes for less aggressive monetary policy that wavered after a strong US jobs report last Friday. Powell said 2023 should be a year of ‘significant declines in inflation.’ Trying to divine the future for pricing is always precarious, especially in the near term, but stocks were lifted early in the week as investors digested comments from Federal Reserve Chair Jerome Powell about how long the central bank may need to tame inflation. This year’s rebound in US asset prices suggests that investor sentiment is shifting to risk-on after a year of playing defence. ![]()
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