US earnings season is at full throttle this week
US earnings season officially started on Friday with reports from JPMorgan, Citigroup and Wells Fargo. There are no reports of importance expected today, but other major banks are due to post quarterly earnings tomorrow.
The dollar basket
The dollar basket remained above 106 on Monday morning, while gold settled near a three-week high after Friday's strong gains.
The People's Bank of China
As expected, the People's Bank of China (PBOC) kept its medium-term lending facility rate at 2.5% but ramped up liquidity support for its banking system. In its statement overnight, the PBOC said it conducted Mortgage , Leasing , Factoring, and Consumer Finance (MLF) operations worth 789 billion yuan to keep liquidity in the banking system adequate.
Britain
According to Rightmove, the average new seller asks for a price across Britain increased by 0.5% (£1,950) month-on-month in October to reach £368,231. Newly advertised properties typically increase at this time of year as the autumn selling market gets underway.
Rite Aid
Over in the US, the US drugstore chain Rite Aid has filed for Chapter 11 bankruptcy protection in New Jersey and said it would begin restructuring to significantly reduce its debt. It's reached a deal with creditors on a restructuring plan that includes closing underperforming locations. Rite Aid also said lenders agreed to provide $3.45 billion in new funding to "provide sufficient liquidity" as it embarks on its restructuring plan.
Walgreens boots Alliance
Moody's placed Walgreens Boots Alliance is under watch for a possible downgrade on Friday. Walgreens's unsecured debt note is currently Baa3, which means that a downgrade would send it to non-investment grade.
The US earnings season
US earnings season officially started on Friday with reports from JPMorgan, Citigroup and Wells Fargo. There are no reports of importance expected today, but other major banks are due to post quarterly earnings tomorrow. Bank of America is forecast to post earnings of 82 cents per share in Q3, down 1% on the same quarter last year. Revenue should reach $25.16Bln. Investors will also be attentive to loan-loss provisions, forecast to have risen by 13% in the period. The Street also expects Goldman Sachs to post earnings of $6.13 per share, on revenue of $11.45Bln.
Netflix
Week two of US earnings sees tech companies come into the limelight. On Wednesday, Netflix should report earnings per share (EPS) of $3.51, an increase of 7.6% year-on-year. Revenue is expected to rise by about 12.5% to $8.54 billion, driven by growth in average-paid memberships.
Tesla
Also on Wednesday: Tesla, earnings are forecast to come in at 75 cents per share in the third quarter. a figure that has been downwardly revised after disappointing delivery numbers. Revenue is anticipated to reach $24.53 billion. This past quarter, Tesla announced further price cuts as the company sticks to its approach of sacrificing margins to produce more vehicles.
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