Microsoft is reporting disruptions to some office applications and cloud services. Huang said Meta has 600,000 Nvidia GPUs. The app Talkie exploded in the United States. The United States Film Market had a sluggish second quarter. Microsoft, AMD, Procter & Gamble, L'Oréal, Starbucks, Rising Coffee, Diageo, Pfizer, Merck, United Kingdom, Airbus, Fanuc, PayPal, Standard Chartered Group announced results. Microsoft said it was investigating outages in some Office applications and cloud services. On Tuesday, Microsoft posted an update on its website monitoring Azure cloud services saying they were investigating problems with users around the world connecting to Microsoft services. In addition, Microsoft also posted on social network X on Tuesday morning that the issue also affects several Microsoft 365 services and features. Microsoft 365 includes common office applications such as Outlook, Word, and Excel.
Intel plans to lay off thousands of workers to reduce costs and fund efforts to rebound from declining earnings and market share. Layoffs could be announced as early as this week. Intel has approximately 110,000 employees, excluding employees in the divestiture division. After announcing layoffs starting in October 2022, Intel cut about 5% of its workforce in 2023 to 124,800 by the end of the year. Intel has also slowed spending in other areas.
At the 51st SIGGRAPH Graphics Conference in the United States, NVIDIA founder and CEO Jensen Huang and Meta founder CEO Mark Zuckerberg had a face-to-face public conversation, sharing the company's latest progress and thoughts on the development trend in the field of artificial intelligence. Meta has been an important customer of NVIDIA since the development of large models. Huang revealed in the conversation that "the number of Nvidia GPUs owned by Meta may have reached 600,000." On the same day, Zuckerberg also announced the launch of AI Studio, an AI chatbot built on Meta's latest large model, Llama 3.1, which allows users to create, share, and design personalized AI chatbots.
An app called Talkie exploded in United States. The chatbot, which lets users have AI conversations with Trump, Taylor · or a custom romantic partner, is one of the most popular entertainment apps in the United States, but many users don't notice that it's actually owned by a Chinese company. The English-language app, called Talkie, was launched about a year ago and its ownership can be traced back to a Singapore company. But its ultimate parent company is Shanghai-based MiniMax. MiniMax is one of four Chinese tech unicorns often referred to as the "AI Tigers".
Advertising communications giant WPP Group on Tuesday appointed former United Kingdom Telecom chief executive Philip Jansen as the new chairman of the board, replacing Roberto Quarta. Jansen will join WPP's Board of Directors in September and succeeds Quarta, who has served as WPP's Board Chair since 2015, on January 1 next year. The appointment comes at a time when WPP, which owns the advertising agencies Ogilvy and GroupM, is significantly behind the global advertising agency. WPP's organic revenue declined in the first quarter due to lower spending from technology customers and the loss of Pfizer's business. Jansen left United Kingdom Telecom earlier this year.
The United States film market had a sluggish second quarter, with box office receipts of $1.95 billion, down 27% year-on-year. Excluding 2020, when the pandemic led to global theater closures, this was the largest decline since 1976, the data showed. "Mind Squad 2" was released in the last two weeks of the season, but it still accounted for nearly a quarter of the total quarterly box office receipts. The blockbuster from Disney's Pixar studio has become the best-performing film so far this year, grossing nearly $1.5 billion worldwide. Against the backdrop of a sluggish box office, IMAX has performed relatively well, and those who still go to the cinema are obviously willing to pay a premium for a better experience.
Toyota Motor announced that the Group's global sales in the first half of 2024 (January to June), including Daihatsu Kogyo and Hino Motor, were 5,162,442 units, surpassing Germany's Volkswagen's 4.348 million units and ranking first in the world in the first half of the year for five consecutive years. Sales in Japan decreased 32.0% to 823,595 units in the first half of the year. Overseas sales rose 3.1% to a record high of 4,338,847 units. Of the global sales, Toyota sold 4,892,259 units, Daihatsu 210,910 units, and Hino 59,273 units. Group global production decreased by 9.8% to 5,074,575 units. Toyota's June global sales were down 5.1% y/y to 853,082 units. Production was down 12.9% to 795,862 units.
Shares of Ford Motor, Tesla and Jeep parent company Stellantis all fell short of Wall Street expectations. General Motors shares fell despite earnings that beat expectations and raised its full-year profit outlook. Automakers have warned of margin pressures in the traditional automotive business, which is already facing the high costs and challenges of the transition to electric vehicles.
The post-pandemic manufacturing boom in United States is losing momentum. As we prepare for a prolonged downturn in demand, a growing number of United States manufacturers are reconsidering their plans. Rising interest rates, rising operating costs, a stronger U.S. dollar, and lower commodity selling prices are dampening activity at factories across the country. Executives at durable goods manufacturers such as automobiles, crop harvesters and washing machines expect a challenging business environment for the rest of the year.
Glencore said it would announce whether it would spin off its coal assets in its half-year earnings report next week. The miner and trader completed a deal this month to acquire most of Teck's coal business. Glencore is already the largest producer of thermal coal, with production expected to be between 98 million and 106 million tonnes this year. In 2024, the acquired steelmaking coal production will increase from 7 million tonnes to 19 million tonnes to 21 million tonnes. A growing number of Glencore investors want the company to continue mining coal rather than spin off its soon-to-be-expanded subsidiary.
Boehringer-Ingelheim announced its investment in Biotech to accelerate the advancement of its oncolytic bacterial pipeline into clinical trials. The investment, which was the first round of funding, was led by Boehringer Ingelheim Ventures (BIVF) and Temasek, with participation from Lenovo Ventures, Rehab Capital and Darts Charyan Fund. Shengbao Biotech is a Shenzhen-based biotechnology company that aims to precisely regulate live bacterial genes through artificial gene circuits to deliver therapeutic proteins to tumor cells more precisely.
Royal FrieslandCampina Netherlands the largest dairy company in Netherlands, announced that Chen Ge, president of China, has voluntarily submitted his resignation. Chen Ge has previously submitted his resignation report to FrieslandCampina's board of directors and will officially leave his post on August 15. In June 2019, Chen Ge joined FrieslandCampina China from Kraft Heinz to succeed foreign executive Gao Ruihong as President of FrieslandCampina China. In 2023, Sima Han will go to Unilever as CEO. Prior to the appointment, Harvey Uong, FrieslandCampina's Global President of FrieslandCampina Professional Nutrition, will be in charge of FrieslandCampina's professional nutrition business in China.
McDonald's suffered its first decline in global sales since 2020. Consumers around the world shy away from burgers, fries and soft drinks that have repeatedly increased in price. In the three-month period to the end of June, the fast-food chain's comparable sales fell 1 percent year-over-year, with sales at both overseas restaurants and McDonald's restaurants in the United States declining. However, McDonald's CEO Chris Kempczinski said the company is still moving forward with plans to open 1,000 new restaurants in China this year, and the return on opening new stores is good. "We're seeing a lot of consumers changing their behavior, and they're always going to choose the best deal," he said.
The owner of Louis Vuitton designed the medals for the Paris Olympics, but it was a mixed bag to see rival Hermes dominate the second-quarter sales boom. France's three largest luxury goods companies reported mixed second-quarter results. LVMH's sales for the three months to June rose by just 1% year-on-year, disappointingly. Gucci's parent company, Kering, saw its sales fall 11% in the second quarter and issued a profit warning. However, Hermès' sales rose 13% in the quarter, dwarfing its rivals.
Financial Reporting Information
Luckin Coffee announced its financial results for the second quarter of 2024. The total net revenue for the quarter was 8,402.6 million yuan, a year-on-year increase of 35.5%; Net profit was RMB871.1 million, compared to RMB998.7 million in the same period last year, and non United States-GAAP net profit was RMB971.0 million, compared to RMB1,062.2 million in the same period last year. In the second quarter, the revenue of Luckin Coffee's self-operated stores was 6.277 billion yuan, and the store-level profit of self-operated stores was 1.351 billion yuan. Revenue from associated stores was $1.85 billion in the second quarter. Luckin Coffee opened 1,371 net new stores in the second quarter, and as of the end of the second quarter, the total number of Luckin Coffee stores reached 19,961, including 13,056 self-operated stores and 6,905 associated stores.
Fanuc announced its consolidated financial results for April~June 2024. Quarterly operating income decreased 3% to 195.1 billion yen, and net income decreased 5% to 28.8 billion yen. China, which had previously maintained a strong momentum, saw a slowdown in investment in pure electric vehicles, leading to a decline in sales in the robotics division. In the factory automation segment, sales increased significantly in China, while domestic demand in Europe and Japan was sluggish, resulting in a decline in overall sales. In China and the United States, while the CNC machine tool division performed strongly, it failed to compensate for the decline in the robotics division and the factory automation division.
Airbus announces its results for the first half of 2024. Revenue for the current period was 28.825 billion euros, compared to 27.663 billion euros in the same period of the previous year, a year-on-year increase of 4%. Among them, the revenue of the commercial passenger aircraft business was 21.215 billion euros. EBIT profit for the period was 1,456 million euros, compared to 1,887 million euros in the prior-year quarter. Net profit for the period was 825 million euros, compared to 1,526 million euros in the prior-year quarter. In the second quarter, revenues were 15,995 million euros, EBIT profit was 847 million euros and net income was 230 million euros.
Standard Chartered announced its results for the first half of 2024. The operating income for the current period was US$9.958 billion, compared with US$8.951 billion in the same period last year, a year-on-year increase of 11%. Basic profit before tax for the period was US$3,957 million, compared to US$3,306 million in the same period last year. Profit attributable to shareholders of the parent company for the period was US$2,378 million, compared to US$2,388 million in the same period last year. Among them, the operating income in the second quarter was 4.806 billion US dollars, compared with 4.555 billion US dollars in the same period last year. Quarterly pre-tax underlying profit was US$1,828 million, compared to US$1.6 billion in the year-ago quarter.
United Kingdom Petroleum (BP p.l.c. Group) announced its results for the second quarter of 2024. Underlying RC profit, which is used to measure profitability, was $2,756 million, compared to $2,589 million in the year-ago quarter. Net loss attributable to shareholders of the Company was $129 million, compared to a net profit of $1,792 million in the same period last year. Total revenue for the quarter was $48.25 billion, compared to $49.479 billion in the year-ago quarter.
Diageo, the world's largest spirits manufacturer, United Kingdom announced its results for the year ended June 30, 2024. The company's net sales for the fiscal year were $20.27 billion, down 1.4% from the same period last year. Operating profit increased 8% year-over-year to $6.0 billion. Net income fell to $3.87 billion from $4.45 billion in the previous year. Sales in Latin America and the Caribbean declined significantly.
L'Oreal announces its results for the second quarter and first half of 2024. Group sales in the second quarter amounted to 10,876 million euros, up 6.7 percent year-on-year. Among them, sales of professional products were 1.183 billion euros, consumer products were 4.149 billion euros, L'Oréal luxury sales were 3.766 billion euros, and beauty products sales were 1.777 billion euros. Group sales in the first half of the year were 22.121 billion euros, a year-on-year increase of 7.5%. Operating profit for the first half of the year was 4.599 billion euros, up 8% year-on-year. Net profit after non-recurring items was 3,745 million euros, up 3.5 percent year-on-year.
Procter & Gamble announced results for its fiscal fourth quarter and fiscal year ended June 30, 2024. Net sales in the fourth fiscal quarter were $20.532 billion, essentially unchanged from $20.553 billion in the same period last year. Net income attributable to the Company for the quarter was $3,137 million, compared to $3,384 million in the year-ago quarter. Net sales for the fiscal year were $84.039 billion, compared to $82.006 billion in the previous fiscal year. Net profit attributable to the company for the fiscal year was US$14.879 billion, compared to US$14.653 billion in the previous fiscal year.
Merck & Co., Inc. Announced results for the second quarter of 2024. Total sales for the quarter were $16,112 million, compared to $15,035 million in the same period last year. Net income for the quarter was $5.455 billion, compared with a net loss of $5.975 billion in the year-ago quarter. Among them, the sales of pharmaceutical business were 14.408 billion US dollars, compared with 13.457 billion US dollars in the same period last year. Animal Health sales were $1,482 million, compared to $1,456 million in the year-ago quarter.
United States pharmaceutical giant Pfizer announced its second-quarter 2024 results. Quarterly revenue was $13.283 billion, compared to $13.007 billion in the year-ago quarter. Net income for the quarter was $41 million, compared to $2,327 million in the year-ago quarter. Quarterly adjusted net income was $3.4 billion, compared to $3,839 million in the year-ago quarter.
Starbucks announced results for its fiscal third quarter ended June 30, 2024. Total net revenue for the quarter was $9,114 million, compared to $9,168 million in the year-ago quarter. Operating profit for the quarter was $1,518 million, compared to $1,584 million in the year-ago quarter. Net income attributable to the Company for the quarter was $1,055 million, compared to $1,142 million in the year-ago quarter. Starbucks' fiscal third-quarter comparable sales fell 3% year-over-year. Starbucks China same-store sales fell more than expected due to lower transaction volume and average order value.
PayPal announced its second-quarter 2024 results. Net revenue for the quarter was $7,885 million, compared to $7,287 million in the year-ago quarter, an increase of 8% year-over-year. Operating profit for the quarter was $1,325 million, compared to $1,133 million in the year-ago quarter. Net income for the quarter was $1,128 million, compared to $1,029 million in the year-ago quarter.
AMD reports second-quarter 2024 results. Quarterly revenue was $5.835 billion, compared to $5.359 billion in the same period last year, an increase of 9% year-over-year. Operating profit was $269 million, compared to an operating loss of $20 million in the year-ago quarter. Net income for the quarter was $265 million, compared to $27 million in the year-ago quarter, an increase of 881% year-over-year.
Microsoft Corp. Announced results for the fourth fiscal quarter and fiscal year ended June 30, 2024. Revenue for the fourth fiscal quarter was $64.727 billion, compared to $56.189 billion in the same period last year, a year-over-year increase of 15%. Operating profit for the quarter was $27,925 million, compared to $24,254 million in the year-ago quarter. Net profit for the quarter was $22.036 billion, compared to $20.081 billion in the same period last year. The revenue for the fiscal year was 245.122 billion US dollars, compared with 211.915 billion US dollars in the previous fiscal year. The operating profit of 109.433 in the fiscal year was 27.925 billion US dollars, compared with 88.523 billion US dollars in the previous year. Net profit for the fiscal year was US$88.136 billion, compared to US$72.361 billion in the previous fiscal year.
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