Asia’s busiest earnings week is offering investors an early test of whether the hype around artificial intelligence is yielding real profits and if consumer demand is showing signs of a more sustainable recovery https://t.co/9SgRxvq8Wy ...

Question-and-Answer SessionHarry BartlettRothschild & Co Redburn, Research Division Great. So look, it's kind of hard to avoid the current environment at the moment. So maybe I'll start there looking at the consumer. So I guess given we're seeing kind of increasing geopolitical risk and I guess, depending on how long this lasts and we could see some spillover effects. I mean, I guess in terms of what you're seeing from the consumer in terms of demand in the credit side, maybe you can talk us through there. ...

After several years of higher operating costs and softer consumer demand, gas prices are climbing as the war with Iran escalates. That’s adding pressure on small businesses, which power the US economy and account for most of the country’s jobs. https://t.co/MIv1DYzRE5 https://t.co/pltIQckckx ...

Australia’s household spending rebounded in January, signaling resilient consumer demand even as the outlook is clouded by the risk of further interest-rate increases and higher energy costs stemming from the escalating Middle East conflict https://t.co/LltxBWyyoo ...

Coca-Cola - Coca-Cola reported mixed earnings, beating adjusted EPS expectations at 58 cents per share compared to the expected 56 cents, but revenue fell short at $11.8 billion against the anticipated over $12 billion [2] - The company issued a modest growth forecast, projecting organic revenue growth of 4-5% and EPS growth of 7-8%, which is seen as steady but not aggressive, contributing to an 8% decline in shares [3][4] - Analysts noted signs of slower consumer demand, with budget-conscious shoppers cutting back on discretionary spending, impacting Coca-Cola's total volume for 2025, which was flat [5] - Despite overall volume challenges, premium brands like Smart Water and Coke Zero Sugar showed growth, with Coke Zero Sugar experiencing a 13% increase in volume [7][8] Semiconductor Industry - A semiconductor company reported a sharp drop in fourth-quarter profit, with adjusted EPS beating expectations at 64 cents per share versus the anticipated 62 cents, while revenue fell 11% to $1.53 billion [11] - The company highlighted growth in its smaller intelligent sensing unit, indicating potential stabilization in key markets, which may suggest moderation in the semiconductor downturn [13] Palantir - Palantir received an upgrade from Daiwa, moving from neutral to buy, despite a 30% pullback from recent highs, with a new price target of $180, indicating confidence in its growth story [15][16] - The upgrade reflects strength in US operations and demand from both government and commercial sectors, with the analytics platform gaining traction [16]

Amazon’s earnings today put multiple sectors in focus:▪️ Consumer demand▪️ Cloud infrastructure▪️ Global logisticsExplore $AMZNx on Kraken ⤵️https://t.co/0Ot8TjXnJv https://t.co/sBy0lOUF3K ...

Core Viewpoint - Morgan Stanley suggests that despite some negative economic signals, the economy is in an "early cycle" environment with potential for growth ahead [1][3]. Economic Indicators - ADP private payrolls were negative in November, and layoffs are at the highest levels in two decades, indicating some economic stress [1]. - The unemployment rate is rising, but Morgan Stanley believes the worst is already behind us [1]. Earnings Growth - There has been a significant rebound in earnings revisions, with the S&P 500 earnings revisions breadth improving from negative 25% in April to positive 15% [4]. - This rebound is typically seen in early cycle environments, suggesting improving business confidence [4]. Wage Growth and Profit Margins - Wage growth has slowed to a three-month moving average of 4.1% year-over-year, down from 6.7% in July 2022, providing room for profit margins to expand [4]. - Such a decline in wage growth is often observed during recessionary periods [4]. Consumer Demand - Consumer demand is expected to accelerate, as companies are showing higher pricing power, allowing them to increase prices without significantly impacting demand [5]. Federal Reserve Actions - The Federal Reserve is cutting rates to stimulate economic activity, with expectations of two additional cuts in 2026 [6]. - Moderate weakness in the labor market is anticipated to continue, which will support these rate cuts without leading to a recession [6]. Market Outlook - Morgan Stanley forecasts a 14% rise in the S&P 500 to 7,800 by 2026, indicating a bullish outlook for the stock market [7]. Investment Recommendations - The bank recommends an "overweight" position on consumer discretionary stocks, which are expected to perform well during economic recoveries [8]. - This sector includes companies benefiting from consumer spending on non-essentials, such as apparel and hospitality [8].

Group 1 - Strong consumer demand has led to increased traffic and spending at Canada's largest dollar-store chain [1]

China’s services activity expanded at the weakest pace in five months, a private survey showed, adding more evidence of sluggish consumer demand that’s putting further pressure on a slowing economy https://t.co/S6RXJTq8yC ...

Weak consumer demand forced Philippine manufacturers to cut factory output and jobs in November, becoming the only nation to buck expansion in the region https://t.co/pYEbymCaCe ...