Novartis posts Q3 earnings with 10 per cent sales growth and 20 per cent core income growth. The drug maker has also hiked its FY guidance. HSBC sees Q3 profits jump by 10 per cent. The lender has also launched a $3bn buyback scheme on the back of slower-than-expected rate cuts. Wall Street begins the week in the green ahead of key inflation data and earnings from the tech sector. In autos news, Volkswagen is warning of unprecedented plant closures and mass lay-offs as the German giant struggles against Chinese rivals and poor demand for EVs.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The ruling LDP in Japan loses its parliamentary majority in its worst defeat more than a decade. The yen slumps to a three-month low as a result. We hear from German finance minister Christian Lindner at the IMF annual meeting in Washington who says Europe must be prepared for a second Trump administration. Moody’s cuts its forecast for France to negative for worse-than-expected fiscal deterioration. The credit ratings agency also cast doubt over the current government’s ability to tackle wider deficits. And in the U.S., campaigning enters its final full week with both candidates targeting purple swing states. In energy news, Brent and WTI are both sharply down after IDF airstrikes avoided key Iranian oil installations. 

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tesla shares rocket by 21.9 percent – the company’s largest one-day gain in more than a decade – as U.S. markets hope to avoid their first negative week in six. The IMF warns that the growth gap between the EU and U.S. will only widen further. We hear from ECB board member and governor of the National Bank of Belgium, Pierre Wunsch, who says he would consider a 50 basis point rate cut should data move in the wrong direction. Japanese voters head to the polls this weekend with the ruling LDP facing the prospect of a heavy defeat and the first possible loss of parliamentary majority since 2012. And in the U.S. a court blocks a merger between Coach owner Tapestry and the owner of Michael Kors, Capri Holdings.  

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tesla share surge in extended trade after the EV maker posted a better-than-expected earnings beat in Q3. CEO Elon Musk says the company’s sales targets of 20-30 per cent are achievable next year. The U.S. Treasury yield hits a three-month high and the dollar rallies as jitters over fiscal spending and the U.S. election surface. IMF First Deputy MD Gita Gopinath tells CNBC the macro environment is beginning to stabilise. South Korean semi-conductor supplier SK Hynix notches a record quarterly profit and shrugs off fears of an A.I. supply glut. French luxury giant Kering slashes its FY operating profit outlook by half after sales at Gucci continue to slump. 

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The IMF hikes its U.S. forecast for 2024 but Germany weighs on the European outlook. The IMF’s Director of the Monetary and Capital Markets department, Tobias Adrian tells CNBC there are reasons for optimism. The S&P 500 suffers its first back-to-back session loss since September as investor attention turns to the dollar. Markets are now increasingly pricing in the outcome of a Trump victory in the U.S. election next month. Speaking to CNBC, IIF CEO Tim Adams believes the fight against inflation could be compromised as a result. French cosmetics giant L’Oréal misses Q3 sales targets as consumer demand in China wanes but the company pins its hopes on the market and on further stimulus from Beijing. Asian markets warmly welcome new listings Tokyo Metro – Japan’s largest in 6 years, while China Resources Beverages also gains on its debut in Hong Kong. And in banking news, Deutsche Bank notches a €2.3bn Q3 profit beat, thanks partly to the release of Postbank-related litigation provisions.    

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A late rally from Big Tech stocks pushes the Nasdaq to the brink of a fresh record high as earnings season begins in earnest. German computing giant SAP hikes its FY guidance following a top and bottom-line Q3 beat on the back of strong cloud revenues. Maersk raises its FY outlook for the fourth time this year. In autos news, monthly new car sales decline as demand for plug-in hybrid wanes, dropping more than 20 per cent across all major markets. Hyundai Motor India stock plunges 5 per cent as the retail sector response to the Bombay Sensex listing – the country’s largest ever IPO - is muted.  

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The PBOC cuts its benchmark lending rate to provide more support for the economy. The Shenzhen Composite moves higher as a result. In the U.S., Wall Street posts its longest streak of weekly gains so far this year on the back of lower rates and earnings optimism. Fitch confirms Italy’s credit rating and boosts its outlook to ‘positive’ in a sign the euro zone’s third largest economy is on the right track. And overnight in Lebanon, Israel targets Hezbollah-linked banks.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asian markets remain sanguine on China’s slowest GDP growth in more than a year as the PBOC’s raft of stimulus measures kick in. Bridgewater Associates founder Ray Dalio tells our colleagues in Singapore that the central bank’s support needs to be more focused. We hear from IMF managing director Kristalina Georgieva who says that while governments need to head off high levels of debt, she is optimistic about reining in inflation. The ECB delivers a back-to-back rate cut for the first time in 13 years. The move is due to weak economic data and slow progress in tackling inflation within the euro zone with ECB president Christine Lagarde indicating more cuts will be needed. Netflix posts its most successful quarter ever, beating expectations and adding 5 million new customers. In Gaza, Israeli troops kill Hamas leader and the October 7th attacks mastermind Yahya Sinwar. Prime Minister Benjamin Netanyahu has hailed his death as ‘the beginning of the end’ for the conflict.   

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese developer stocks sink despite the housing ministry briefing outlining further measures to help prop up the troubled property sector. We are live in Brdo, Slovenia where the ECB’s governing council is holding its annual external meeting ahead of its widely expected second consecutive rate cut later today. Stateside the Dow hits a fresh record high thanks to Morgan Stanley reporting quarterly beats on both the top and bottom lines. CEO Ted Pick tells our U.S. colleagues that he no longer expects a slew of companies to come to market. Swiss robotics company ABB hikes its margin guidance despite failing to hit Q3 profit and revenue forecasts

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Dutch chip maker ASML suffers its worst sell-off since 1998 after it slashed its sales outlook in an earnings release it published accidentally. Chip stocks see heavy losses globally as a result. French luxury giant LVMH posts its first quarterly loss since the Covid pandemic, missing expectations with the group warning Chinese consumer confidence has hit an all-time low. Adidas increases its FY outlook for the third time this year as bumper sales of its retro sneaker models helped it to a Q3 earnings beat. In China, equities endure choppy trade as the housing ministry announces it will give another public update briefing on the country’s beleaguered property sector tomorrow.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.