ANGLO AMERICAN (EU Satellites) completed its spin-off of Thungela Resources Ltd, encompassing its South African thermal coal assets. Shareholders received one Thungela share for every ten Anglo shares held. We recommend selling Thungela shares.
COMET (Swiss Convictions): rising memory prices boosted revenue for chip maker Nanya Technology and memory module manufacturer ADATA Technology in May 2021, according to DigiTimes. Comet should also benefit.
FACEBOOK (Core Holdings): the European Union and the United Kingdom have both opened antitrust investigations into Facebook’s use of advertising data on its Marketplace. As well as facing the possibility of hefty fines, Facebook could be forced to change its business model.
INDITEX (Core Holdings) is due to report its Q1 2021 results this Wednesday. Despite lockdown restrictions, they are expected to show a sharp rise in sales (up 50-60% to €5bn), robust margins and a rebound in EBIT to €540m (vs. a Q1 2020 loss of €200m excluding provisions). Better still, store reopenings have been gathering pace in May and June. The resumption of in-store shopping and continued momentum in e-commerce should give the clothing market a shot in the arm.
Last Friday’s US job numbers indicated that the economic recovery is proceeding more slowly than expected, and hence inflationary risk is also lower than expected, enabling indices to end the week on a positive note. Inflation will be on the agenda again this week, with the US CPI due out and an ECB meeting scheduled for this Thursday. We remain positive.
US job numbers came in short of expectations, helping calm inflationary fears to some extent. This meant USD was unable to hold firm and has begun to fall again: EUR/USD 1.2170; USD/CHF 0.9000. Forex dealers will be keeping a close eye on this Thursday’s ECB meeting and what Christine Lagarde has to say. CHF has clawed back c. 60 bps against EUR, taking EUR/CHF to 1.0940 this morning. Our ranges: EUR/CHF 1.0900-1.1050; USD/CHF 0.89-0.91; GBP/USD: 1.4018-1.4340.
This document has been issued for information purposes and is exclusively supplied by Bordier & Cie SCmA in the framework of an existing contractual relationship with the recipient of this document. The views and opinions contained in it are those of Bordier & Cie SCmA. Its contents may not be reproduced or redistributed by unauthorized persons. The user will be held liable for any unauthorized reproduction or circulation of this document, which may give rise to legal proceedings. All the information contained in it is provided for information only and should in no way be taken as investment, legal or tax advice provided to third parties. Furthermore, it is emphasized that the provisions of our legal information page are fully applicable to this document and namely provisions concerning the restrictions arising from different national laws and regulations. Consequently, Bordier Bank does namely not provide any investment services or advice to “US persons” as defined by the Securities and Exchange Commission rules. Furthermore, the information on our website – including the present document – is by no mean directed to such persons or entities.