Cartier-owner Richemont and trenchcoat-maker Burberry face challenging year-earlier comparisons when they report next week as earnings season returns in earnest. For both, last year’s fiscal first quarter coincided with China’s re-emergence from lockdown, offering growth before demand swooned later in the year. Richemont’s resilient jewellery business should act as a buffer, but there’s no let-up in sight for Burberry as it navigates a strategy turnaround.
Hundreds of jobs may be on the line in the process. With central banks across Europe in easing mode, the focus will be on the net interest income (NII) trajectory for Nordic lenders, who step up bank earnings next week. While Sweden’s SEB and Swedbank likely saw their NII shrink in the second quarter, Nordea Bank Abp and Danske Bank may have countered the impact of lower interest rates with deposit hedging.
Dutch semiconductor equipment maker ASML — whose shares surpassed €1,000 apiece for the first time this week — should be on track to meet sales targets after a disappointing first quarter, while Swiss drug giant Novartis’s report will be scrutinised for more clues on the growth potential of some of its key drugs. On Monday, Nordea’s net interest income growth is seen slowing to 5.2% in the second quarter, from 10.
7% in the first, consensus shows. While the pace will probably decelerate to about 3% for the year as a whole, the bank’s hedging strategy should help offset a hit from lower rates kicking .
