1. Deutsche Bank loss: Germany’s biggest bank posted a loss of nearly $3.5 billion in the second quarter, slammed by the cost of a radical overhaul aimed at returning the company to profit.
The electric carmaker said Wednesday that it lost $408 million during the three months ending in June, far worse than Wall Street had expected. Shares fell more than 10% in premarket trading.
The loss was slightly less painful than the previous quarter, when Tesla (TSLA) lost $702 million.
CEO Elon Musk also announced a key departure. J.B. Straubel, a founding member of the company, is stepping down from his role as chief technology officer and will become a senior adviser.
“I think everyone was a bit surprised, we thought this could be a moment where Tesla makes some more positive news,” Jessica Caldwell, executive director of insights at Edmunds, told CNN Business.
2. The comeback kids: Shares in both Chipotle and Snap are moving higher after the companies posted banner earnings after US markets closed on Tuesday.
Nokia shares shot up 8% after the Finnish telecom equipment maker said that sales increased 7% in the second quarter.
It also said that “some customers are reassessing their vendors in light of security concerns,” suggesting that it may be picking up 5G orders because of concerns about Chinese rival Huawei.
Anheuser-Busch InBev reported increased revenue and drinks volume. Budweiser, Stella Artois and Corona sales increased 8.5% globally. Shares in the world’s biggest brewer gained over 4.5%.
Volkswagen stock got a mild boost after the company confirmed its guidance for 2019. Revenue was up nearly 5% in the first half of 2019, despite a small drop in vehicle sales. Operating profit was up 1.9%.
Unilever results were gloomier. Sales growth missed analyst expectations, and the owner of Ben & Jerry’s said bad weather in Europe and North America had harmed ice cream sales.
Japan’s second biggest automaker said profits were almost completely wiped out in the first quarter of its fiscal year. Operating profit plunged 99% in the quarter compared to a year earlier. Revenue, meanwhile, dropped nearly 13%.
Nissan said it will slash roughly 12,500 jobs from its workforce worldwide. That’s more than twice as many positions as the company was reportedly expecting to cut in May. It’s also planning to reduce its product lineup and global production capacity by 10%.
3. Tech reckoning: The US Justice Department is launching a formal antitrust review of the nation’s biggest tech companies, raising the stakes for Silicon Valley after weeks of anticipation in Washington.
The central bank could provide answers on Thursday, when it reports its latest interest rate decision and outgoing president Mario Draghi gives a press conference.
Many investors expect the ECB to lay the groundwork for a September cut that would push its key lending rate further into negative territory. The central bank could also revive its bond-buying program.
The ECB has less room to maneuver than the US Federal Reserve, which is also expected to cut rates soon. With interest rates in Europe at record lows, economists say that governments must act to increase spending.
“The days of ‘whatever it takes’ are long gone,” said Societe Generale strategist Kit Juckes. “Fiscal policy needs to engage.”
4. Markets mixed: Stocks moved higher in Asia on Wednesday, but the mood was darker in Europe and the United States.
4. Coming this week:
Monday — Whirlpool
Tuesday — Europe consumer confidence; US existing home sales; Coca-Cola (KO), Harley-Davidson (HOG), Kimberly-Clark, Lockheed Martin (LMT), Chipotle (CMG), Snap (SNAP), UBS (UBS), Visa (V) earnings
Wednesday — German manufacturing data; US new home sales; US crude inventories; Deutsche Bank (DB), AT&T (T), Boeing (BA), Caterpillar (CAT), UPS (UPS), Facebook (FB), Ford (F), PayPal (PYPL), Tesla (TSLA) earnings
Thursday — ECB rate decision; US durable goods; 3M (MMM), American Airlines (AAL), Anheuser-Busch InBev (BUD), Comcast (CCZ), Hershey (HSY), Nokia (NOK), Amazon (AMZN), Alphabet (GOOG), Intel (INTC), Mattel (MAT), Starbucks (SBUX) earnings
Friday — US Q2 GDP; McDonald’s (MCD) and Twitter (TWTR) earnings