2024-07-30 22:19
July 30 (Reuters) - Videogame publisher Electronic Arts (EA.O) , opens new tab forecast second-quarter bookings above analysts' expectations on Tuesday, citing robust sales of its popular titles such as "EA FC 24". EA's optimistic forecast suggests the firm is benefiting from increased spending on its popular sports games like the newly released "EA Sports College Football 25", indicating a potential rebound in the gaming industry after a prolonged downturn. EA has made significant investments in reviving its college football franchise after a decade-long break as it looks to drive bookings growth amidst intense competition from publishers such as Take-Two Interactive (TTWO.O) , opens new tab, Ubisoft (UBIP.PA) , opens new tab, and Roblox (RBLX.N) , opens new tab. Based on engagement trends in the week following its release, "College Football 25" is expected to outsell popular American football video game "Madden" and surpass the sales of Take-Two's "NBA 2K", according to analysts at TD Cowen. "College Football sold around 5 million early in the quarter, and it is likely to sell 7 million or more this quarter and likely as many as 8 to 9 million lifetime. That's very good, and sets up a big season for Madden NFL," said Wedbush Securities analyst Michael Pachter. When asked about possible cannibalization within the genre, EA executives said on a conference call that the new college football title is expected to complement the "Madden NFL" series. Executives also said that they did not expect the Hollywood video game performers strike to have any significant short term impact on EA, and they do not anticipate any near-term disruption to games currently in development. EA forecast second-quarter bookings in a range of $1.95 billion to $2.05 billion, the midpoint of which is above analysts' average estimate of $1.95 billion, according to LSEG data. Bookings for the quarter came in at $1.26 billion, missing estimates of $1.29 billion. The company earned $1.04 per share, compared with $1.47 per share a year ago, and left its forecast for full-year bookings unchanged. Sign up here. https://www.reuters.com/technology/electronic-arts-forecasts-second-quarter-bookings-above-estimates-2024-07-30/
2024-07-30 21:47
July 31 (Reuters) - A look at the day ahead in Asian markets. Asian assets have rarely been exposed to as many market-moving triggers in one day than they will be on Wednesday, with the Bank of Japan rate decision and China's purchasing managers index reports topping a packed policy, data and corporate calendar. Investors are also bracing for second quarter GDP estimates from Taiwan and Hong Kong, inflation numbers from Australia, and earnings from corporate heavyweights including HSBC, Samsung, Panasonic, Mitzuho and Sumitomo. All that follows heavy after-the-bell selling of U.S. Big Tech on Tuesday after Microsoft warned of slow returns on AI technology spending, and comes ahead of the Federal Reserve's rate decision on Wednesday. With so much event risk looming - it's month-end too - an escalation in Middle East tensions could not have come at a more sensitive time for markets. World stocks, the S&P 500, Nasdaq and U.S. Treasury yields all slid on Tuesday. The dollar on Tuesday hit a three-week high on an index basis, nudged above 155.00 yen, and was fixed at its strongest level since November against the Chinese yuan. But it ended U.S. trading on the defensive. The BOJ's policy decision is on a knife-edge, at least according to money market pricing, which indicates a 55% likelihood the BOJ will raise rates by 10 basis points. That's down from a 60% probability earlier this week. If the central bank stands pat and delivers a dovish message, the dollar could head back up to intervention territory around 160.00 yen. A hike and hawkish stance could bring 150.00 into view. While policymakers are expected to outline plans to taper the bank's huge bond-buying stimulus, a rate cut is a close call. They may wait and see what the Fed does later on Wednesday, making a move in September more likely. While the Bank of Japan deliberates how it will tighten policy, the People's Bank of China is going the other way, and PMIs from Beijing on Wednesday will give the first glimpse of how the world's second largest economy performed in July. Expectations are being kept low - the manufacturing PMI is forecast at 49.3, according to a Reuters poll, down from June's 49.5 and marking the third month of contraction in a row. More stimulus is needed if 2024 GDP growth is to reach Beijing's 5% target, especially with U.S. tariffs coming down the pike. Chinese leaders on Tuesday signalled that stimulus will be directed at consumers, deviating from their usual playbook of pouring funds into infrastructure projects. Elsewhere, Australian inflation in June is expected to come in at 3.8%, up from 3.6% in May, while annual GDP growth in Taiwan is seen slowing to 4.8% in the April-June period from 6.6% in Q1. Here are key developments that could provide more direction to markets on Wednesday: - Bank of Japan policy decision - China 'official' PMIs (July) - Taiwan GDP (Q2) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-07-30/
2024-07-30 20:48
July 30 (Reuters) - Wildfires continued to disrupt communities in British Columbia on Tuesday, with as many as 349 fires burning across the Canadian province, according to government officials, despite rainfall over the past few days and cooler temperatures bringing some relief. The Canadian provinces of Alberta and British Columbia have witnessed hundreds of fires since July including a huge fire last week that devastated the picturesque tourist town of Jasper in the Canadian Rockies. As of Tuesday morning, 1,350 people are under an evacuation order, primarily in the central Kootenay region, and an additional 2,800 people are under an evacuation alert, said Bowinn Ma, British Columbia's minister of emergency management and climate readiness. However, the cooler weather and rainfall are helping firefighters to tame the spread, according to local officials, with several evacuation orders being downgraded to evacuation alerts. "The wildfire situation can change quickly and we may see more fires as temperatures warm up again in the coming days," Ma said. This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned. Sign up here. https://www.reuters.com/business/environment/wildfire-threat-lingers-british-columbia-rains-offer-some-respite-2024-07-30/
2024-07-30 20:41
NEW YORK, July 30 (Reuters) - The Republican leader of a U.S. congressional committee wrote on Tuesday to demand more than 130 investors explain their environmental, social and governance (ESG) goals, highlighting how his party's scrutiny of such initiatives is continuing. Judiciary Committee Chair Jim Jordan, who penned the letters, has warned money managers that collective pledges to drive down greenhouse gas emissions might violate antitrust law. The Democratic minority on the committee disagrees, reflecting a broader partisan split on the issue. Republican ire has landed forcefully upon alliances that formed around corporate commitments to help combat climate change, partly driven by fears of job losses in the fossil fuel industry. One of those groups is Climate Action 100+, which boasts around 700 signatories. The committee's letters pertain to Climate Action 100+'s push for companies to implement , opens new tab plans to deal with the energy transition. Each recipient was asked what requests they will make of companies in their portfolio, and was told to preserve "all documents and communications referring or relating to the company's efforts to advance ESG-related goals". A representative for climate-focused investor group Ceres, which co-founded Climate Action 100+, said "tens of thousands of documents" had already been produced for the committee and the letters were "unlikely to gather any new information". No antitrust lawsuit has been brought against any climate coalition, but Jordan's committee claims responsibility for the decisions taken by several asset managers to end their membership of the group for fear of a crackdown. "These letters are another attempt to deter investors from participating in the initiative," the Ceres representative said. The committee has also interviewed former regulators as part of its antitrust probe. A rule passed by U.S. President Joe Biden, which itself overturned one put in place by his predecessor Donald Trump to limit socially conscious investing by employee retirement plans, is still being litigated in court. Sign up here. https://www.reuters.com/world/us/us-house-committee-demands-esg-information-investors-2024-07-30/
2024-07-30 20:27
PHILADELPHIA, July 30 (Reuters) - Pennsylvania Governor Josh Shapiro said on Tuesday that he cannot support Nippon Steel's (5401.T) , opens new tab bid to buy U.S. Steel (X.N) , opens new tab in its current form because the United Steelworkers union is unhappy with the merger. Shapiro, who is a contender to be Vice President Kamala Harris' Democratic Party running mate in the November U.S. presidential election, said he was viewing the proposed merger through its impact on workers. "Speaking from a state perspective as governor, if the U.S. steel workers aren't happy with this deal, which they are not, I'm not happy with this deal," Shapiro said at an Internal Revenue Service event attended by Treasury Secretary Janet Yellen. "If I don't see a future where U.S. Steel manufacturing continues here in the Commonwealth of Pennsylvania, and is expanding from what is happening right now, I'm not happy, so I've got really serious concerns," he said. Sign up here. https://www.reuters.com/markets/commodities/pennsylvania-governor-says-cannot-support-nippon-us-steel-merger-2024-07-30/
2024-07-30 20:22
July 30 (Reuters) - Cadbury parent Mondelez International (MDLZ.O) , opens new tab missed expectations for second-quarter revenue on Tuesday, as budget-conscious customers opted for lower-priced alternatives amid sticky inflation. While consumer packaged goods companies like Mondelez International, Hershey (HSY.N) , opens new tab have beefed up prices to counter higher costs of raw materials such as cocoa and sugar, demand for their products faltered. Mondelez's sales volumes declined as lower-income consumers preferred cheaper private label brands over its more expensive products including Chip Ahoy! and Oreo cookies. The company's quarterly volumes fell 2.2 percentage points, while its prices rose 4.7 percentage points. "We are implementing new targeted promotions as well as a new pack size priced in the $3 to $4 range to drive brand loyalty and value for Oreo, Chips Ahoy! and Ritz in North America," CEO Dirk Van De Put said on a post earnings call. Higher costs of transport, consumer promotions, as well as impact from 2023 divestiture of the developed market gum business have pushed Mondelez's gross profit margins down by 590 basis points to 33.5%. Larger industry peer General Mills (GIS.N) , opens new tab also saw quarterly sales drop and warned of macroeconomic uncertainty leading to "value-seeking" behaviors of consumers. However, consecutive price hikes as well as easing manufacturing helped the company surpass quarterly profit estimates. On adjusted basis, Mondelez earned a profit of 86 cents per share, topping estimates of 79 cents per share, according to LSEG data. The company posted net revenue of $8.34 billion for the quarter ended June 30, compared with analysts' average estimate of $8.45 billion. The Chicago, Illinois-based company also maintained its annual organic net revenue and profit forecasts. Sign up here. https://www.reuters.com/business/retail-consumer/mondelez-international-misses-quarterly-sales-estimates-weaker-demand-2024-07-30/
