Scroll down to see last week’s recap.
Events:
Monday, 6th of March:
- The Swiss CPI (Consumer Price Index) for February is expected to decrease to 0.4% compared to 0.6% in January. The CPI is a measure of the average price of goods and services purchased by households in Switzerland. A positive change indicates inflation, while a negative change indicates deflation.
Tuesday, 7th of March:
- The AUD Cash Rate for March is expected to increase from 3.35% to 3.60%. The cash rate refers to the interest rate set by the Reserve Bank of Australia (RBA) for overnight loans between financial institutions. It is the rate at which commercial banks can borrow or lend funds to maintain their daily cash reserve requirements with the RBA. The cash rate is a key monetary policy tool used by the RBA to achieve its inflation and employment objectives. Changes in the cash rate have a significant impact on the economy and financial markets, as they influence borrowing costs, exchange rates, and asset prices.
Wednesday, 8th of March:
- The ADP Non-Farm Employment Change for February is expected to rise to 195K compared to 106K in January. It is a monthly report published by the private payroll company ADP that provides an estimate of the monthly change in non-farm private employment in the United States, based on payroll data from ADP clients who employ about 24 million workers in the U.S. The ADP Non-Farm Employment Change refers to the monthly net change in employment in the U.S. private sector.
Friday, 10th of March:
- The British GDP (Gross Domestic Product) for January is expected to increase to 0.1% compared to -0.5% in December 2022. This indicator measures the monthly change in the total value of goods and services produced within the UK economy.
- The Canadian Unemployment Rate for February is expected to rise to 5.1% compared to 5.0% in the previous month. It is a key indicator of the health of the Canadian economy, as high unemployment rates indicate a struggling economy, while low unemployment rates suggest a strong and growing economy.
- The Canadian Employment Change is expected to decrease from 150.0K to 10.0K. It is based on a survey of employers across various industries in Canada. The Employment Change data includes both full-time and part-time employment and is considered a key indicator of the health of the Canadian economy. If the number of employed individuals increases, it is generally seen as a positive sign for the economy, indicating growth and increased consumer spending. Conversely, a decrease in employment is seen as a negative sign, suggesting an economic contraction and reduced spending.
- The Non-Farm Payrolls (NFP) measure is expected to decrease from 517K to 200K. It measures the change in the number of employed people in the United States, excluding farm workers, private household employees, and non-profit organization employees. The NFP report is widely considered as a key indicator of the health of the U.S. economy, and its release can have a significant impact on financial markets, as it provides insights into the strength of the labor market and potentially the future path of monetary policy by the Federal Reserve.
IPOs:
Notable Earnings:
Recap from Last Week (27.02.23 – 03.03.23):
TESLA (TSLA) recently shifted its strategy away from Europe to take advantage of significant subsidies in the United States. This move has prompted many multinational companies to reconsider their investment plans in Europe, as U.S. President Joe Biden’s Inflation Reduction Act provides a record $369 billion in climate and energy policy spending. This landmark legislation, which includes green subsidies for businesses, has raised competition issues for European companies and upset politicians in the region. As a result, companies such as Northvolt, Linde, Volkswagen, and Enel have expressed interest in profiting from U.S. subsidies, and there may be more. Now, some European companies are considering moving their operations to the U.S. due to the additional bureaucracy in Europe. European businesses are calling on officials in the region to do more to support them, while European Commission President Ursula von der Leyen has called for a “simpler and faster framework.” However, some fear that it may be too little, too late to prevent significant investment from drifting away from Europe.
Ericsson (ERIC-B), the Swedish telecommunications company, will pay a $206 million penalty due to violating the anti-bribery provisions of the Foreign Corrupt Practices Act. This comes after the company paid a $520.6 million penalty in 2019 and entered into a deferred prosecution agreement with the US Attorney’s Office. The Department of Justice alleged that Ericsson violated the agreement by failing to truthfully disclose all factual information and evidence about its schemes in Djibouti, China, and Iraq. The company used outside consultants to pay bribes to government officials and manage off-the-books slush funds in all five countries, using sham contracts and false invoices to obscure the nature of the funds. Ericsson CEO, Börje Ekholm, said that the matter is now resolved.
On Friday, Bumble (BMBL) shares fell in premarket trading after its founder and CEO Whitney Wolfe Herd, along with Blackstone and other shareholders, sold $313 million worth of stock at $22.80 per share, which is 9.2% below Thursday’s closing price of $24.54. Bumble had initially announced that it would sell 12.5 million shares, but increased that to 13.75 million, with Blackstone Group selling the majority. Despite posting an optimistic forecast for the year ahead, predicting a profit as it expands its female-focused dating sites in Europe and Latin America, Bumble’s shares fell 6.7% due to the share sale.
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