Market Daily

Equity Market Updates

Lyft (LYFT US)

Ride-hailing firm Lyft on Thursday reported better-than-expected gross bookings in 1Q25 at USD4.16B, with rides increasing 16% YoY to 218.4M. Additionally, the company expects gross bookings for the current quarter to be between USD4.41B and USD4.57B, the midpoint of which was higher than expected. Lyft also announced an accelerated and expanded share buyback program, with its management authorising a USD250M increase to the company’s repurchases.

Lyft’s results contrast with Uber’s recent downbeat earnings report, whereby the latter posted slower-than-expected gross bookings growth while citing a decline in US inbound travel. This is likely to support Lyft’s share price going forward.

MARKET CONSENSUS: 11 BUYS, 33 HOLDS, 2 SELLS, AVERAGE TP USD15.57

Paramount Global (PARA US)

Paramount Global on Thursday reported 1Q25 results that beat Wall Street estimates with revenue at USD7.19B vs. USD7.10B expected, while adjusted EPS was at USD0.29 vs. USD0.25 expected. The company’s solid performance last quarter was helped by TV revenue that dropped less than anticipated, while other segments remained relatively solid.

The company’s streaming service Paramount+ saw subscriber count grew 11% YoY in 1Q25, bringing the total to 79.0M vs. 78.8M expected by the market.

Amid ongoing economic uncertainty, investors are likely waiting to see if streaming customers will pull back on spending. This will be key to Paramount’s share price trajectory.

MARKET CONSENSUS: 4 BUYS, 12 HOLDS, 9 SELLS, AVERAGE TP USD12.05

Warner Bros Discovery (WBD US)

US media company Warner Bros reported on Thursday 1Q25 results that missed expectations due to declines in pay-TV subscriptions and a weaker movie slate, with the company’s revenue coming in at USD9.0B vs. USD9.6B expected, while net loss was at USD453M vs USD320M expected.

A bright spot in Warner Bros’ results however came in the form of a 5.3M gain in streaming subscribers, bringing the total to 122.3M, which puts the firm on track to surpass its 150M subscriber goal by the end of next year. This lifted its share price yesterday. How its streaming business will be able to offset challenges in TV networks will be key to Warner Bros’ share price trajectory going forward.

MARKET CONSENSUS: 15 BUYS, 13 HOLDS, 1 SELL, AVERAGE TP USD13.28

Nintendo (7974 JP)

Nintendo on Thursday posted a 4Q25 top-line miss with revenue at JPY208.7B vs. JPY226.0B expected, dragged by slower sales of its consoles and software. Operating profit also missed at JPY35.0B vs. JPY39.8B expected, while adjusted EPS was at JPY35.7 vs. JPY34.6 expected.

The Japanese video game company forecasts weaker-than-expected initial sales of the Switch 2, citing uncertainty around US tariffs. Initial shipments for the new console is expected to reach around 15M this fiscal year vs. the 16.8M expected by analysts. Operating profit guidance at JPY320B also fell short of analyst expectations. This may negatively impact the company’s share price in the near term.

MARKET CONSENSUS: 21 BUYS, 9 HOLDS, 3 SELLS, AVERAGE TP JPY12434.4

Toyota (7203 JP)

Toyota on Thursday provided full-year guidance that fell short of analyst expectations as it warned of a profit slump due to US President Trump’s tariffs. The company specifically expects a JPY180B hit to profit from US levies over April and May 2025, while operating income for FY2026 is forecasted to be JPY3.8T vs. JPY4.8T expected by the market.

The Japanese carmaker’s cautious outlook follows a lukewarm end to its FY2025, with FY4Q25 revenue at JPY12.4T vs. JPY12.1T expected, while adjusted EPS stood at JPY50.9 vs. JPY57.5 expected.

Looking ahead, upside on shares of Toyota may be limited until there is further clarity surrounding US-Japan trade talks.

MARKET CONSENSUS: 19 BUYS, 7 HOLDS, 1 SELL, AVERAGE TP JPY3058.95

Earnings Announcements

Global Indices Changes (%)

Fixed Income Market Updates

EUROPEAN BANK COCO (AT1)

The AT1 market is higher by 25 to 50c as the primary market drought persists, however lower beta bonds are coming out. New issues are expected soon. Positive macro developments are expected to stabilize volatility and support the technical of AT1s as they trend tighter. As mentioned we like the 2028 to 2031 maturities. 

ASIA INVESTMENT GRADE (IG)

A frim day as spreads are tighter all around. In the China IG market spreads are 1-5 bps (basis points tighter) and long end bonds are clearing with the support of the steeper yield curve.  . Thai continues to lag as beta remains better offered, such as T2's. In the Korea higher beta spacce, there is better buying of 3-5 year tenors from real money. 

ASIA HIGH YIELD (HY)

The China HY property market lagged today while the rest of the HY space was firm. The PBOC rolled out a litany of economic stimulus measures yesterday, though it did not include any incremental property-specific measures. In India and Indonesia HY, the previously underperformed commodity names caught some bids today. Vedanta trading +0.5pt higher into midday. Though with India/Pakistan escalation headlines in the afternoon, bonds were lower Medco unchanged to slightly higher with the 29's particularly active two way going into the new issuance. 

Forex Market Updates

USD

The US dollar gained against the safe-haven yen and Swiss franc on Thursday with market nerves soothed by a bilateral trade deal between the United States and the United Kingdom, while sterling reversed gains made after an interest rate cut from the Bank of England. U.S. President Trump announced a "breakthrough" trade agreement with Britain on Thursday, which leaves in place a baseline 10% tariff on British imports including vehicles. The market sees the trade deal as positive because it means Trump is envisioning a 10% baseline for friendly countries with anything beyond that subject to negotiation. 

The Dollar Index continues to firm and appears poised to test the next key resistance level near the 101.00 mark, reflecting persistent demand amid policy and trade uncertainty.

GBP

The British Pound gave up its earlier gains after the release of the trade deal with the United States. Earlier in the day, Sterling edged higher as UK markets got some support from the Bank of England's widely expected decision to cut its main interest rate by a quarter of a point to 4.25%, although a surprising three-way split among policymakers highlighted how Trump's tariffs continue to cloud the economic outlook. At a press conference in the Oval Office on Thursday, Trump and Starmer announced trade agreements on aluminium and steel, automotive and aerospace exports, and pharmaceuticals. The pound rallied as much as 0.5% overnight, when reports of a possible deal surfaced, but pared much of those gains when some of the details emerged.

Sterling looks to be potentially testing the support level of 1.3200, facing broad dollar strength.

CNH

The Chinese Yuan slipped against the dollar on Thursday after the central bank guided the currency much lower through its official fix following a recent surge. The Chinese currency leapt earlier this week to the highest since November, underpinned by an unwinding of carry trades and a broader rush out of U.S. assets and back into Asia. Prior to market opening on Thursday, the People's Bank of China (PBOC) set the midpoint rate CNY, around which the yuan is allowed to trade in a 2% band, at 7.2073 per dollar, its weakest since April 24. Currency traders said market focus remained on trade negotiations, as U.S. and Chinese officials prepare to meet in Switzerland this weekend for talks that could be the first step toward resolving a trade war disrupting the global economy.

USDCNH is showing signs of strength and appears to be trending higher, with the next key resistance level likely to be tested around 7.2645.

XAU

Gold extended losses and fell more than 1% on Thursday after U.S. President Donald Trump announced a trade deal with the United Kingdom, raising hopes of such deals with other countries. Bullion, widely regarded as a hedge against geopolitical uncertainty, had hit multiple record highs since Trump first announced his tariffs. Elsewhere, China's central bank has approved foreign exchange purchases by commercial banks to pay for gold imports under recently increased quotas, two people with direct knowledge of the matter said. 

Gold remains under pressure but is currently well supported above the 3205 level, suggesting consolidation rather than a clear reversal in trend.

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Colgate-Palmolive (CL US)

Colgate-Palmolive on Friday posted 1Q25 results that were better than analyst estimates with revenue at USD4.91B vs. USD4.89B expected, while adjusted EPS was at USD0.91 vs. USD0.86 expected, driven by higher prices. Organic sales, however, rose 1.4% YoY vs. 2.1% estimated, dragged by a decline in volumes.

Looking ahead, the company cut its full year outlook to now expect organic sales growth of between 2% and 4% this year from its previous forecast of between 3% and 5%. Further commentary from the company will be closely watched by the market in the next few quarters as we gain further clarity surrounding global trade.

MARKET CONSENSUS: 14 BUYS, 9 HOLDS, 3 SELLS, AVERAGE TP USD98.13

Schlumberger (SLB US)

Oilfield services company Schlumberger on Friday posted misses in both its 1Q25 top- and bottom-line, as decreased activity in certain parts of the world weighed on results, likely reflecting much of the uncertainty surrounding global trade and tariffs. The company’s 1Q25 revenue stood at USD8.49B vs. USD8.61B expected, while adjusted EPS was at USD0.72 vs. USD0.74 expected.

Schlumberger’s revenue in the reservoir performance and well construction divisions declined YoY, while digital and integrations, and production systems revenue increased marginally over the same period.

Looking ahead, the company echoed many that have reported recently to provide a cautious outlook ahead, citing “potential shifts of priorities driven by changes in the global economy, fluctuating commodity prices and evolving tariffs.” Nevertheless, Schlumberger remains committed to return a minimum of USD4B to shareholders in 2025.

MARKET CONSENSUS: 26 BUYS, 6 HOLDS, AVERAGE TP USD49.17

Amgen (AMGN US)

Amgen on Friday announced a USD900M expansion of its Ohio biotech manufacturing facility, becoming the latest in a string of drugmakers pledging to increase US capacity amid threats of potential import tariffs, likely dampening its impact to margins going forward. Other drugmakers committing recently to US manufacturing expansions include Eli Lilly, Novartis, Roche, and Johnson & Johnson.

The announcement came after the biotechnology company previously announced in December last year plans to invest USD1B to build a second drug substance manufacturing plant in Holly Spring, North Carolina. Amgen also currenly has manufacturing facilities in Massachusetts, Rhode Island, California and Puerto Rico.

MARKET CONSENSUS: 17 BUYS, 14 HOLDS, 3 SELLS, AVERAGE TP USD317.37

Nissan Motor (7201 JP)

Japanese carmaker Nissan warned on Friday that it will post a net loss of as much as JPY750B for FY2025, a record annual deficit as restructuring charges weigh on the company, while citing changes in the competitive environment and a deterioration in sales performance. Analysts on average were projecting a net loss of JPY112B, which itself was already worse than Nissan’s prior outlook for a JPY80B loss.

Nissan’s share price held ground , however, as investors saw the restructuring charges as a sign that the company is moving towards a much-needed turnaround. The magnitude and speed of Nissan’s turnaround will be closely watched by the market in the next several quarters.

MARKET CONSENSUS: 1 BUY, 9 HOLDS, 9 SELLS, AVERAGE TP JPY370.17

Baidu (9888 HK)

Baidu on Friday unveiled its latest flagship AI model, Ernie 4.5 Turbo, as well as a new reasoning model called Ernie X1 Turbo, both of which are faster and cheaper than previous iterations. Ernie 4.5 Turbo is specifically 80% cheaper than its predecessor, while Ernie X1 Turbo costs half as much to run.

Baidu also announced a slew of products including an AI agent platform known as Xinxiang, which it said can automate everyday tasks, bringing competition to Chinese service Manus AI.

These announcements are likely to improve Baidu’s stance in the highly competitive AI landscape in China, thus providing support to its share price going forward.

MARKET CONSENSUS: 25 BUYS, 8 HOLDS, AVERAGE TP HKD105.35