Weekly Market Update - 5 February 2024

Chips In

Qualcomm, the world’s biggest seller of smartphone processors, warned that some customers are still working through gluts of chip inventory even as the industry begins to recover. Shares in Advanced Micro Devices, meanwhile, took a beating in the wake of a downbeat forecast, although they clawed back some ground following optimistic comments from CEO Lisa Su.

Source: Bloomberg

China Evergrande

China Evergrande will once again try to fend off liquidation at court hearings in Hong Kong. Eight weeks after the debt-laden property developer won a surprise reprieve in the long-running lawsuit, Evergrande has made little progress toward clinching a restructuring agreement with creditors. Any order to wind up Evergrande, which has about $327 billion in liabilities, will likely send ripples through China’s financial system at a time when policymakers are trying to stem a stock market rout. It would also further weaken confidence in the housing industry.

Source: Bloomberg

Boeing

Boeing’s leader apologized for the string of quality lapses that culminated in a near-catastrophic panel blowout on a 737 Max operated by Alaska Air. “We caused the problem,” CEO Dave Calhoun said on a call Wednesday to discuss quarterly earnings. While an investigation on the January accident is underway, he emphasized that the ultimate responsibility rested with Boeing. The planemaker is also racing to complete a key engineering fix needed to certify the smallest version of its 737 Max jetliner. Meanwhile, the manufacturer broke from tradition in declining to give an earnings forecast, but there are signs that China might be a potential bright spot for the firm. Airlines there are stepping up deliveries of 737 Max jets and if that continues, it could prove an important source of cash for Boeing.

Source: Bloomberg