Key Stories from the past week: Disney Magic & Google AI Woes

Key Stories from the past week: Disney Magic & Google AI Woes

Macro
Saxo Be Invested
Saxo

Markets have been closely monitoring developments regarding trade-related uncertainties, and therefore it was clearly quite welcome news on sentiment when the White House showcased the US / UK trade deal along with more positive comments from President Trump on US-China tariffs. Several big earnings releases hit throughout the week, including Rheinmetall and Disney reporting strong figures vs estimates, whereas Palantir failed to meet lofty expectations – declining 12% despite an increase in full-year forecast. The Bank of England cut policy rate 25bps & Federal Reserve kept rates steady, meanwhile Bitcoin surpassed $100k again and Google might be facing elevated competition from AI. Read more in this week’s key stories below:

Rheinmetall grows with EU military spend
Europe’s push for military rearmament bolstered demand for Rheinmetall’s combat vehicles, artillery and munitions with the firm’s first quarter earnings beating estimates with operating profit jumping +49% YoY. The company reaffirmed its full year forecast of +25% to +30% sales growth.
Riding the wave of Europe's defence boom

Disney Magic
Disney’s quarterly earnings results beat estimates from strong performance in experience segment (parks) & significant subscriber growth in Disney+ streaming service. The company also nearly doubled their annual growth expectation to 16%, while CEO Bob Iger acknowledge “confident but cautious” view as broader economic uncertainties and their implications still linger.
Disney shines bright as streaming and parks outperform expectations

Could AI shake Google’s core business?
On May 7th shares in Google-parent Alphabet declined more than 7% after Apple executive Eddy Cue’s testimony confirmed Safari search volumes are falling as users shift to AI tools like ChatGPT. Investors were quick to react to the comments, as search remains Alphabet’s core business, contributing over 50% of total revenues.
Alphabet’s Kodak moment?

Palantir’s lofty valuation
Palantir revenue for the first quarter jumped 39%, beating analyst’s estimates with the company also raising its full year revenue forecast. This wasn’t sufficient to meet incredibly high expectations and shares sold off by -12%. Most of this was regained by the end of the week and general risk sentiment grew.
Buy the dip or brace for a reset?

Next week markets will adjust to any developments from initial US-China trade talks. Q1 company earnings highlights include Sea Ltd, Softbank, JD.com, Nu Holdings (Tues). Tencent, Cisco Systems, Sony (Weds). Alibaba, Walmart, Deutsche Telekom, Allianz, Mitsubishi Financial, Deere, Applied Materials (Thurs). Richemont (Fri). Key data announcements include German May ZEW economic sentiment, US Apr CPI (Tuesday), EU & UK Q1 GDP, US Apr Retail Sales, US May Philadelphia Fed Manufacturing (Thursday), Japan Q1 GDP, US May Michigan Consumer Sentiment (Friday).


Quarterly Outlook

01 /

  • Upending the global order at blinding speed

    Quarterly Outlook

    Upending the global order at blinding speed

    John J. Hardy

    Global Head of Macro Strategy

    We are witnessing a once-in-a-lifetime shredding of the global order. As the new order takes shape, ...
  • Equity outlook: The high cost of global fragmentation for US portfolios

    Quarterly Outlook

    Equity outlook: The high cost of global fragmentation for US portfolios

    Charu Chanana

    Chief Investment Strategist

  • Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Quarterly Outlook

    Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Jacob Falkencrone

    Global Head of Investment Strategy

  • Commodity Outlook: Commodities rally despite global uncertainty

    Quarterly Outlook

    Commodity Outlook: Commodities rally despite global uncertainty

    Ole Hansen

    Head of Commodity Strategy

  • Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    Quarterly Outlook

    Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    John J. Hardy

    Global Head of Macro Strategy

  • Equity Outlook: The ride just got rougher

    Quarterly Outlook

    Equity Outlook: The ride just got rougher

    Charu Chanana

    Chief Investment Strategist

  • China Outlook: The choice between retaliation or de-escalation

    Quarterly Outlook

    China Outlook: The choice between retaliation or de-escalation

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: A bumpy road ahead calls for diversification

    Quarterly Outlook

    Commodity Outlook: A bumpy road ahead calls for diversification

    Ole Hansen

    Head of Commodity Strategy

  • FX outlook: Tariffs drive USD strength, until...?

    Quarterly Outlook

    FX outlook: Tariffs drive USD strength, until...?

    John J. Hardy

    Global Head of Macro Strategy

  • Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Quarterly Outlook

    Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Althea Spinozzi

    Head of Fixed Income Strategy

The information on or via the website is provided to you by Saxo Bank (Switzerland) Ltd. (“Saxo Bank”) for educational and information purposes only. The information should not be construed as an offer or recommendation to enter into any transaction or any particular service, nor should the contents be construed as advice of any other kind, for example of a tax or legal nature.

All trading carries risk. Loses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money.

Saxo Bank does not guarantee the accuracy, completeness, or usefulness of any information provided and shall not be responsible for any errors or omissions or for any losses or damages resulting from the use of such information.

The content of this website represents marketing material and is not the result of financial analysis or research. It has therefore has not been prepared in accordance with directives designed to promote the independence of financial/investment research and is not subject to any prohibition on dealing ahead of the dissemination of financial/investment research.

Saxo Bank (Schweiz) AG
The Circle 38
CH-8058
Zürich-Flughafen
Switzerland

Contact Saxo

Select region

Switzerland
Switzerland

All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) Ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law. 

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.