- Bitcoin and carbon credits are Tesla’s saving grace
- HSBC forecasts brighter days ahead
- BP brings back buybacks - is this the first of many as reporting season returns to normal?
Good morning and welcome to the IC’s live blog, covering the biggest business stories of the day, and the overnight news from the US - where big tech results have started to roll in.
Tesla (US:TSLA) shares slipped 2.5 per cent in after-hours trading - possibly because of the lack of a specific estimate for car deliveries this year. But the EV maker posted a record profit in the first quarter, benefitted from its huge holding in Bitcoin and so far has managed to meet demand despite the global chip shortage. That is not to say Tesla has not been affected by supply chain disruption. Chief executive Elon Musk described “insane difficulties...over the whole range of parts”, as well as production problems arising from quarantine restrictions in China.
The outlook for the company is also dampened by the surge in EV production from traditional carmakers - the businesses that Tesla has historically sold big carbon credits to. Volkswagen (VOW3) in particular has put its foot on the accelerator with its EV initiative and aims to be the biggest selling electric carmaker in the world by 2025. Recent manufacturing numbers show that Europe has now overtaken China as the biggest electric vehicle market in the world - a nice boost for VW’s own territory.
A mixed way to kick off earnings season, then. Watch out for other US heavyweights that will be reporting tonight, too: including Alphabet (US:GOOGL) and Microsoft (US:MSFT), as well as Starbucks (US:SBUX) and Pinterest (US:PIN).
And closer to home, HSBC (HSBA) said in an update this morning that its pre-tax profit grew by 79 per cent in the first quarter to $5.8bn (£4.8bn). Provisions for bad loans shrank and a brighter economic outlook helped the bank to offset the impact of low interest rates. Shares are mostly flat this morning. You can read our deep dive into the bank here.
UK earnings season kicks off with some good news
Closer to home, HSBC (HSBA) said in an update this morning that its pre-tax profit grew by 79 per cent in the first quarter to $5.8bn (£4.8bn). Provisions for bad loans shrank and a brighter economic outlook helped the bank to offset the impact of low interest rates. Shares are mostly flat this morning. You can read our deep dive into the bank here.
Oil and gas major BP’s (BP.) first quarter profits surged on the back of the higher oil price, and it has announced a buyback programme would start in the coming weeks. Read our full analysis here.
Has Covid-19 changed the brewery sector forever?
Heineken’s first quarter results last week showed that the big brewers are still paying the price of over a year of lockdowns. But things are looking up, especially in the UK, where the chief executive of Suffolk-based Adnams is “cautiously optimistic”. But has the pandemic changed the way we consume beer? And what impact might that have on margins? Read our analysis of the sector here.
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