In today’s top stories, Tesla delivers a record for deliveries but slumps on targets, while Intel’s Mobileye files for IPO. Signs of shifting power in Brazil make investors hopeful for the long-haul. In Europe, Credit Suisse fails to calm nerves. Investors will be keeping an eye on food service companies sharing results this week.
Tesla slumps despite record deliveries
Tesla [TSLA] delivered an all-time record 343,830 vehicles and produced a total of 365,923 in Q3, up 42% from Q2. The Tesla share price was trading lower in Monday’s pre-market trading as the EV maker signalled it could struggle to meet its full-year target. “As our production volumes continue to grow, it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost during these peak logistics weeks,” read a statement.
Intel’s Mobileye files for IPO
The IPO market has been pretty quiet this year, but Mobileye could be about to change this. The Israeli manufacturer of processors for the self-driving market has filed to go public in the Nasdaq under the ticker MBLY in what is expected to be one of the largest IPOs of the year. Intel [INTC], which acquired Mobileye for $15.3bn in 2017, will retain overall control.
High confidence in Brazilian equities
Brazil’s election is headed for a runoff, but confidence is high that left-wing candidate Lula will prevail. The Lyxor MSCI Brazil ETF [RIO.PA] was trading higher in Paris on Monday morning. Brazilian equities should continue to outperform emerging market peers, according to a research note from UBS analysts seen by Bloomberg. Amer Bisat, head of emerging markets fixed income at BlackRock, told Reuters he takes “a broadly positive medium-term view on Brazilian investment opportunities”.
Credit Suisse fails to calm nerves
Credit Suisse [CSGN.SW] has tried to reassure investors that it does have a strong balance sheet amid reports its default risk is at its highest level in a decade. Investors are clearly concerned, however, with the stock trading 11% lower in early Monday morning trading. Komal Sri-Kumar, president of Sri-Kumar Global Strategies, told CNBC that the Credit Suisse news highlights the “real danger of having miscalculated inflation for such a long time”.
A wholesale play on aviation
While much of the travel industry is struggling to cope with staffing problems and price hikes, a tech solution for the wholesale market may have the wind at its back. Sabre Corp [SABR] is a B2B travel marketplace used by travel agencies to search, price and book for customers. Its gross air bookings for the month of August were about 55% of 2019 levels – and the results gave its stock a 6% boost when announced in September.
No loss of appetite for Greggs
Despite rising inflation and a weakening pound, consumers are still finding satiation with savoury and convenient snacks from Greggs [GRG.L]. The bakery chain is expecting to report higher earnings and 13% revenue sales growth when it issues its third-quarter results today. According to CEO Roisin Currie, its value proposition means it’s “well positioned to navigate the widely publicised challenges affecting the economy”.
Tesco focuses on budget lines
The cost of living is threatening to eat into grocery margins and Tesco [TSCO.L] expects operating profit for fiscal 2023 to be between £2.4bn and £2.6bn, which would be a decline of at least 8% from 2022. However, the chain continues to outperform its peers in pre-pandemic comparisons, and its renewed focus on its budget product line is a timely focus gives investors hope that shoppers will keep coming through Tesco’s doors.
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