Chillin' out till it needs to be funded
While Greek Debt and French downgrades have kept everyone busy in Europe, the Global Corporations from the Continent led by the bankrupt banks from Lloyd, Barclays and RBS on the island to Credit Suisse and UBS shot up by a tough Franc now a $1.25 shocked markets into instant submission on Thursday. Apart from the banks, the larger Chemical companies Bayer and BASF and the bellwether Siemens also reported shocking numbers, while energy bellwether Shell, reported Euro 6.55 bln profits just for this quarter growing upstream on Oil’s continuing run above $90. Even for Shell downstream products showed sales volume and margin reductions, while Siemens reported a large charge on new Healthcare technology that brought the house down.
European Big Pharma shocked the other way with growing profits at Sanofi and AstraZeneca HSBC announced fresh 10000 job cuts in retail while Credit Suisse reported subdued CHF 700 mln profits with EUR 850 mln in the private bank despite regulatory headwinds. Currency pressures alone cost the bank EUR 650 mln or half its EBITDA (PTI) Friday should see more job cuts being announced at Barclays and Lloyds after results as also UBS will make job cuts in the continent. Santander results were an eye opener though, growing profits despite higher 4.8% Spanish contingencies and continues to grow in Brazil and LAtin America with aplomb. For Siemens, it was a lower results led by a new research charged off to Healthcare and the US Dollar which is 40% of its business. We would do more detailed analysis of th European Banks result Season after the weekend. Also we will follow up on Big Pharma as their performance taken with the Swiss Franc’s latest rise is esp challenging and study the savings programs launched at Swiss, French and British banks targeting a billion each and more in a few cases. Auto sales in Europe for May and June ticked lower year on year by 10 continuing the downhill ride since 2008s truck and the peripherals have been joined by the Eastern bloc dependent on Germany and France for business