This week ahead || Dec 25th - Dec 29th 2023
Hershey's bitter ending to 2023 shows innovation will be key to success in 2024, says analyst
Hershey (HSY) investors are facing challenges as the company's shares hit a new two-year low, down 21% compared to a year ago. The chocolate maker is dealing with fears over commodity inflation, pricing power, volume decline, and fierce competition. Higher prices for key ingredients like sugar and cocoa are adding to its challenges. Sugar prices have experienced volatility, and cocoa prices are up roughly 65% compared to last year due to irregular weather patterns. Hershey's comments about extraordinary cocoa inflation and concerns about pricing power have raised caution among analysts. The company is also grappling with changing consumer behaviors and seeking innovation to boost traffic.
Stocks sit near record highs as 2023 trading wraps up: What to watch this week
As the US stock market enters the final trading week of 2023, inflation data on Friday showed the Federal Reserve closing in on its goal of returning inflation to 2%, putting the central bank on the path towards cutting interest rates. The week ahead is expected to be relatively quiet with a light economic schedule and no major earnings reports. Key economic updates include data on home prices and initial jobless claims. The stock market has rallied in 2023, with the S&P 500 and Dow nearing record highs. The focus remains on the Fed's stance on interest rates and the potential for rate cuts in 2024.
Markets in 2023: Soaring stocks and roaring bonds defy the doubters
Despite turbulence and incorrect predictions, global stocks have risen by nearly 20%, bond markets anticipate central banks to cut rates after initially expecting hikes, and various assets, such as Bitcoin and emerging market bonds, have experienced significant fluctuations. The article highlights the unexpected outcomes and challenges, including the collapse of Silicon Valley Bank, Credit Suisse's rescue, and geopolitical tensions. Additionally, it mentions the round-trip of the 10-year U.S. Treasury yield and the anticipation of a soft landing, lower bond yields, and future Fed rate cuts. The political front is expected to be active in 2024 with over 50 major elections scheduled globally.
Putin clears Rosbank's purchase of Societe Generale's Russian assets
Russian President Vladimir Putin has signed a decree allowing Rosbank to acquire stakes in major Russian companies previously owned by Societe Generale. The decree permits Rosbank to purchase SocGen's stakes in companies like Rosneft, Gazprom, Norilsk Nickel, Severstal, and other leading Russian blue-chip firms. While SocGen's stakes in these companies are reported to be relatively small, the combined value of the assets is significant. The move comes amid the ongoing geopolitical tensions and sanctions against Russia. Societe Generale withdrew from Russia in May 2022 and sold its local unit, Rosbank, to the Interros group.