Ikea Invests Big in US
Ikea is investing €2bn into the US market, its largest investment in a single country. The company plans to open eight new large stores and nine smaller planning studios and order points over the next three years. By doing so, Ikea hopes to take advantage of the current economic downturn to take market share, with the US expected to surpass Germany as the company’s largest country in terms of sales in the coming years.
Blackstone’s AUM Increases
Blackstone (NYSE:BX) has reported first-quarter earnings, with assets under management climbing to $991.3 billion, an 8% increase from the previous year. However, net income fell to $85.8 million, or 11 cents a share, compared to $1.22 billion, or $1.66 a share, in Q1 of 2022. The company is just shy of its goal set in 2018 to reach $1 trillion in assets by 2026. Blackstone is the first big private-equity company to release its results for a period that featured higher interest rates and banking sector turmoil.
Ford’s Electric F-150 in Norway
Ford (NYSE:F) will start selling its electric F-150 Lightning in Norway, marking the first time the US carmaker has sold its flagship pick-up truck outside of North America. The company has allocated a few models for Norway, where four out of every five vehicles sold are battery-powered. Selling in Norway will help Ford reach its European carbon emissions targets by adding another fully electric vehicle to its line-up.
AT&T’s Postpaid Phone Slowdown
AT&T (NYSE:T) added 424,000 postpaid phones, its most lucrative connections, during Q1 of 2023. The figure matched Wall Street’s expectations, but it is the lowest tally the company has recorded since the Covid pandemic began. The company has said it expects wireless growth to return to a more normalized pace this year, after experiencing a pandemic-driven boom. The telecommunications company faces competition from cable companies’ growing cellphone businesses.
Global Banks Shift to Eurozone
Citigroup (NYSE:C) and other global investment banks are expected to move billions of dollars more in assets and risk transfers to the euro area, following the European Central Bank’s urging. Citigroup officials are set to receive feedback on their plans from the ECB, with other firms also preparing to hear the regulator’s thoughts. The shift is a consequence of the watchdog’s findings in a “desk mapping” review conducted last year.
Recession Fears Hit Small-Cap Stocks
Economically sensitive stocks, such as those of transportation and small-cap companies, are underperforming the broader market, reflecting growing investor concern about a potential recession. The Dow Jones Transportation Average (DOWI:DJT) has underperformed the Dow Jones Industrial Average (DOWI:DJI) by about 8.3 percentage points since early February. Small-cap stocks, often perceived as riskier and more sensitive to economic changes than their larger peers, have also fallen behind in recent weeks after rallying at the start of the year.
Dowlais IPO Values Company at £2bn
Dowlais, the automotive arm of GKN, has floated on the London Stock Exchange, marking the first day of trading as shares rose 11% to value the company at £2bn. Dowlais makes parts for vehicles, from side-shafts for cars to specialist axles for electric models. Melrose Industries acquired the business in 2018 as part of its $11bn deal to buy struggling engineer GKN. Listing Dowlais means breaking up the historic GKN, which also owned an aerospace arm.
FCA Investigates WANdisco
The UK’s financial watchdog, the Financial Conduct Authority (FCA), has launched an investigation into WANdisco (LSE:WAND) after the troubled software group was found to have falsified almost $15mn in revenue last year. The investigation will focus on company announcements between January 2022 and March 2023 that “may have materially misstated the company’s financial position.” Shares were suspended from trading on the UK’s Aim market while the investigation was conducted.
Kering SA Premises Searched
Gucci owner, luxury fashion conglomerate Kering SA (EPA:KER), has confirmed that its premises were searched by the European Commission as part of an investigation into potential anticompetitive behavior in the fashion industry. The commission has also sent formal requests for information to several other fashion companies to investigate whether they have violated rules against restrictive business practices. Kering has stated that it is fully cooperating with the investigation but declined to comment further.
Bitcoin’s Bullish Pattern Test
The recent struggles of Bitcoin (COIN:BTCUSD), which has been hovering around the $30,000 mark, could be tested by a pattern identified in its recent movements. The pattern involves a daily increase of at least 3%, followed by a reversal of at least that magnitude during a generally bullish period for the cryptocurrency. Bitcoin has exhibited this pattern over Tuesday and Wednesday, and data analyzed by Bloomberg shows that the token has risen by an average of 7% over three, five, and ten days after the previous 17 such signals in the last five years. To identify bullish periods, the study used Bitcoin’s relative strength index, a momentum gauge that had to be above 50.