Earnings Update
Good Evening All, Earnings season is upon us in full force and the results are making a major impact on the market, as per usual.
Goldman Sachs results showed the real story on bank income slowing, as the heat from the SEC has obviously impacted on their trading style, having the SEC looking over their shoulder required them to be more discretionary and this has hit their earnings hard, a drop of 82%.
Second-quarter net income of $453 million was hurt by one-time charges, including a settlement of a civil fraud suit brought by the Securities and Exchange Commission and a British tax on bank executives’ bonuses, total cost of these charges was over 1 billion dollars.
The UK tax on bank emloyee bonuses over 25,000 GBP earned the UK government a bonus of around GBP 2.5 Billion so far this year not a bad little idea to curb the extraordinary pay of these financial terrorists and a big slug on bank earnings.
More banks will reveal their contribution to the UK tax coffers in the coming days with Credit Suisse estimating its charge at CHF400 million ($381.5 million) releasing earnings tomorrow, UBS earlier in the year said it expected to pay CHF300 million ($286 million) releasing earnings on July 27 and Deutsche Bank estimated its bill at EUR225 million ($290 million), a figure it is expected to update when it reports earnings July 27.
Earnings Move Market
The market last night looked like going into a huge dive on a series of bad earnings reports from Goldman Sachs, Texas Instruments, IBM and Whirlpool, all the bad news was obliterated by Stella earnings from Apple up 70% or more, these guys have absolutely hit the nail on the head with the IPad and this I beleive has raised awareness of the quality of other MApple products like the Mac Book, as they sold more of these than they have EVER..!
