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00:00 This is a strange thing.
00:03 Today, in European indicators, we are talking about statistical figures.
00:07 In light of the profits of these companies, more than 310 European companies have made their results.
00:15 Only about 50% of these companies were able to exceed market expectations.
00:21 When we compare these figures, they are the worst since the beginning of the coronavirus pandemic in the first quarter of 2020.
00:32 Therefore, how is it possible for European stocks to be at these levels?
00:40 The answer may be in the resumption of stock purchases, which has not been done in previous periods.
00:47 We also know that European companies usually make distributions,
00:52 but they buy stocks to satisfy investors and to reduce the stocks in exchanges.
00:59 We have seen this in several companies, the most prominent being Shell in the recent period.
01:03 It seems that this policy is continuous and may be a supporting factor.
01:09 But why is this profit declining so much?
01:12 The Russian-Ukrainian war has been going on for more than two years.
01:18 It has had an impact on the rise of gas prices and on the inflation rate.
01:24 As the whole world knows, the rise of interest rates does not affect the profits of these companies.
01:32 These were the main factors that contributed to this pressure.
01:38 On the other hand, we have a slowdown in the economy.
01:42 We are actually approaching an economic decline in the European continent,
01:46 especially in the largest European economy, Germany.
01:50 Therefore, the consumer today has a weak spending.
01:54 European companies that do not have a big exposure to the United States,
02:00 where we see that America still lives the American Dream,
02:04 still spends well, according to recent figures.
02:08 So, of course, any company that does not have a big exposure has had a negative impact.
02:14 One of the worst sectors of performance was health care.
02:18 Of course, health care also has a different story,
02:21 especially since most of these companies that have made losses in some places
02:27 were due to the coronavirus vaccines that were administered and therefore caused losses.
02:37 Consumer products have also been affected by the weak spending.
02:41 But as we see today in the United States,
02:44 the technology stocks are still leading,
02:47 and also with the safety and the rise that we have seen in the returns of these stocks,
02:55 the companies were also among the stocks that performed well.
03:00 But since we do not have the Magnificent Seven in Europe today,
03:07 therefore, the ratings are still lower than many of those we see today on Wall Street.