The US stock market closed lower on Tuesday’s session as the new President Biden’s administration succeeded to bring into effect pre-election promises on standing strong against national security ”threats” that Russia, China and Iran allegedly represent.
According to Bloomberg, Biden had his first phone call with Russian President Vladimir Putin, condemning the detainment of opposition leader Navalny and violent arrests during protests.
IMF Upgrades Global GDP forecast to 5.5%
The International Monetary Fund (IMF) has increased its projections for the global economy with a GDP of 5.5%, compared to previous projections of 5.2%.
The IMF says the upgrade is driven by renewed hopes of a global recovery as vaccinations start and expectations of more stimulus in large economies.
In 2022, the IMF sees the growth at 4.2% while the global economic contraction in 2020 is estimated at 3.5%.
IMF also estimates the US GDP fell by 3.4% in 2020 and is expected to grow by 5.1% in 2021 and 2.5% in 2022.
Emerging markets and developing countries are expected to grow by 6.3% in 2021, mainly led by India whose GDP is estimated to grow by 11.5% and China, which is expected to grow by 8.1%.
Microsoft on Tuesday released its financials for the fiscal second-quarter with revenue rising 17% to $43.10 billion. Its operating income was up 29% to $17.9 billion, while net income rose by a third to $15.5 billion.
“What we have witnessed over the past year is the dawn of a second wave of digital transformation sweeping every company and every industry… Building their own digital capability is the new currency driving every organization’s resilience and growth. Microsoft is powering this shift with the world’s largest and most comprehensive cloud platform,” noted Chief Executive Satya Nadella.
The company’s stocks rose 5.44% in the after-hours trading to sell for record $245.34 per share following the impressive earnings report.
Bytedance’s 2020 revenue rises by over 100%
TikTok’s parent firm ByteDance’s revenue rose by more than 100% in 2020 to approximately $37 billion.
According to the Information, ByteDance’s revenue growth was as a result of robust growth of ad sales by its Chinese apps offset any impact from India’s ban on TikTok and the US’s threat of a ban. The company generated more than $7 billion in operating profit last year, compared with less than $4 billion the previous year.
ByteDance is a private Chinese technology company, popular for its video-sharing app TikTok, and it also owns more than a dozen social networking apps operating across China, India and Indonesia.
Apple Ramps Up China Production
Apple is reportedly ramping up the production of iPhones, iPads, Macs and other products outside of China. According to Nikkei Asia, the tech firm seeks to accelerate its production diversification despite hopes that U.S.-China tensions will ease under President Joe Biden.
The tech giant is expected to release its financials today after market close.
Starbucks Corporation on Tuesday released its earnings for the first quarter of 2020 with net revenue falling by 5% to $6.7 billion, citing the impact of the global pandemic.
Its operating income stood at $813.5 million, down by 26% from $1,1 billion reported in the first quarter last year.
“I am very pleased with our start to fiscal 2021, with meaningful, sequential improvements in quarterly financial results despite ongoing business disruption from the pandemic. Investments in our partners, beverage innovation and digital customer relationships continued to fuel our recovery and position Starbucks for long-term, sustainable growth,” the company’s President and Chief Executive Officer (CEO) Kevin Johnson said.
General Electric Q4 Earnings
General Electric Co. (GE) on Tuesday reported earnings for the fourth quarter of 2020 with revenues falling 16% to $21.93 billion compared to the same period in 2019.
Net earnings hit $2.64 billion from $721 million from the previous year’s fourth trimester.
For the entire year 2020, total revenues were 16% lower, landing at $79.62 billion, while net earnings reached $5.55 billion in 2020, compared to a $4.9 billion net loss in the same quarter of 2019.
Aramco to sell more shares
Saudi Aramco may consider selling more shares if market conditions are right, the head of Saudi Arabia’s sovereign wealth fund announced on Tuesday.
The Saudi government sold more than 1.7% of Aramco in a 2019 initial public offering that raised a record $29.4 billion, triggering more IPOs in the kingdom, which is also seeking to deepen its capital markets to reduce its reliance on oil.