The world economy has been on a downtrend, bangled with geopolitical and economic turbulence. The recent Q3 earnings are a perfect indicator that recession is not coming but it’s already here. A three-hour bilateral meeting between US President Joe Biden and Chinese leader Xi Jinping on the eve of the G20 summit was a hopeful sign.
The main lesson to be learned from the recent earnings season is that Big Media companies nearly universally reported poor quarters, making an already difficult year for the industry even more challenging.
Wall Street has hammered media firms hard even while the market as a whole declined. Disney’s share price, for example, fell 13% on Wednesday after its earnings release, marking its biggest single-day percentage decrease since September 2001 and lowest closing since March 2020.
This week, earnings continue with major companies from across sectors but most awaited are the retail giants: Walmart and Home Depot. Here is a summary of what inventors anticipate.
Walmart Inc.
Walmart Inc. is set to disclose profits before the market opens on November 15, 2022. The report will cover the fiscal quarter that ends in October 2022. According to consensus EPS projection for the quarter is $1.31, based on expert forecasts. Last year, the reported EPS for the same quarter was $1.45.
Home Depot, Inc. (The)
Home Depot, Inc. (The) is slated to disclose earnings before the market opens on 11/15/2022. The American multinational home improvement retail corporation financial report will cover the fiscal quarter that ends in October 2022.
According to analysts, the consensus EPS projection for the quarter is $4.1. Last year, the reported EPS for the same quarter was $3.92.
Alcon Inc.
Alcon is a Swiss-American medical corporation that specializes in eye care products. The earnings report is expected on November 15, 2022. The consensus EPS forecast for the quarter is $0.48, based on 5 expert predictions. The reported EPS for the same time period last year was $0.54.
Eletrobras- Centrais Electricas Brasileiras S.A.
Eletrobras is the fourth-largest sustainable energy firm in the world and a significant provider of electricity in Brazil. Centrais Electricas Brasileiras S.A. is expected to announce profits on November 15, 2022. Last year, the reported EPS for the same quarter was $0.11.
Advance Auto Parts Inc.
Advance Auto Parts, Inc. is an American supplier of automotive aftermarket components. On November 15, 2022, it will report its financial results following the market close. The fiscal quarter covered by the report will end on September 30, 2022.
The consensus EPS forecast for the quarter, based on expert predictions, is $3.31, and the reported EPS for the same quarter last year was $3.21.
Aramark
On November 15, 2022, Aramark is to release financial results before the market opens. The fiscal quarter covered by the report will end on September 30, 2022. The consensus EPS expectation for the quarter is $0.49, which is based on predictions from analysts.
The reported EPS for the same quarter last year was $0.21.
G20 Summit to Address Global Crises
Despite significant divisions over the war, Indonesian President Joko Widodo launched the G20 conference earlier in the day with a call for unity and tangible action to repair the global economy.
“There is no other choice; teamwork is required to rescue the earth,” he stated. “The G20 must serve as a driving force for inclusive economic recovery. We should not partition the world. We cannot allow the world to descend into another cold war.”
The G20, which comprises countries ranging from Brazil to India, Saudi Arabia, and Germany, accounts for more than 80% of the global GDP, 75% of global trade, and 60% of the global population.
The US and China leaders promised more frequent communications despite their numerous disagreements after a three-hour bilateral meeting ahead of the summit.
In the UK, the GDP shrank by 0.2% in the third quarter as a result of declining consumer expenditure and company investment, signaling a protracted recession is already under way. The only economy in the Group of Seven that has not yet fully recovered from the pandemic is Britain.
According to his government’s announcement on Monday, British Prime Minister Rishi Sunak will ask the Group of 20 (G20) for concerted action to address global economic instability and the growing cost of living following Russia’s invasion of Ukraine.
Analysts predicted that the summit might pave the way for closer connections between the top economic superpowers in the globe. Due to this, the stock markets in mainland China and Hong Kong were boosted, and technological behemoths like Tencent (TCEHY) and Alibaba (BABA) saw significant gains on Tuesday.
RBA May Pause Rate Hikes
In other developing news and according to the minutes of the policy meeting held on November 1 when the benchmark interest rate was raised by a quarter percentage point, Australia’s central bank is prepared to halt its tightening cycle or resume greater interest-rate rises if the economy calls for it.
At that meeting, the Reserve Bank’s board debated two choices — 25 basis points or 50 basis points — and came to the conclusion that the evidence for the former was stronger because the full impact of the bank’s rapid-fire rate hikes since May was still to come.
Recent RBA Rate Hikes
Rates “are not on a pre-set path,” the RBA reaffirmed, adding the magnitude and timing of future hikes will depend on incoming data as well as the forecast for inflation and employment. This gives the board the most room for maneuvering throughout the current cycle.
As it struggles with the fastest inflation in more than three decades, the RBA has increased rates by 2.75 percentage points in just seven months. However, the central bank was the first to deviate from the global trend of disproportionate increments when it switched to quarter-point increases in the most recent two sessions.
In order to strengthen the RBA’s commitment to getting inflation back to its target range of 2-3%, Governor Philip Lowe is anticipated to extend the tightening cycle with smaller increments over a longer length of time. A peak in the consumer price increase of 8% is anticipated for late this year.
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