Asian Mid-session Market Update: BOJ disappoints with only marginal expansion of ETF program easing
***Economic Data***
- (JP) JAPAN JUN RETAIL SALES M/M: 0.2% V 0.3%E; RETAIL TRADE Y/Y: -1.4% V -1.2%E
- (JP) JAPAN JUN PRELIMINARY INDUSTRIAL PRODUCTION M/M: 1.9% V 0.5%E; Y/Y: -1.9% V -2.9%E
- (JP) JAPAN JULY TOKYO CPI Y/Y: -0.4% (3-month high) V -0.5%E; CPI EX-FRESH FOOD Y/Y: -0.4% (3-month high) V -0.4%E; CPI Ex Food/Energy Y/Y: 0.3% v 0.3%e; 1-year low
- (JP) JAPAN JUN OVERALL HOUSEHOLD SPENDING Y/Y: -2.2% V -0.4%E; biggest decline in 3 months
- (JP) JAPAN JUN NATIONAL CPI Y/Y: -0.4% V -0.4%E; CPI EX FRESH FOOD (CORE) Y/Y: -0.5% (3-year low) V -0.4%E
- (JP) JAPAN JUN JOBLESS RATE: 3.1% V 3.2%E; 8-month low
- (AU) Australia Jun Private Sector Credit M/M: 0.2% (3-year low) v 0.5%e; Y/Y: 6.2% (11-month low) v 6.5%e
- (AU) Australia Q2 PPI Q/Q: +0.1% v -0.2% prior; Y/Y: 1.0% v 1.2% prior
- (NZ) New Zealand July ANZ Activity Outlook: 31.4 v 35.1 prior; Business Confidence: 16.0 v 20.2 prior
- (NZ) New Zealand Jun Building Permits M/M: 16.3% v -0.9% prior
- (UK) JULY GFK CONSUMER CONFIDENCE: -12 V -8E; 2-year low
- (KR) SOUTH KOREA JUN INDUSTRIAL PRODUCTION M/M: -0.2% V -0.6%E; Y/Y: 0.8% V 0.3%E
- (KR) SOUTH KOREA AUG BUSINESS MANUFACTURING SURVEY: 71 V 72 PRIOR; NON-MANUFACTURING SURVEY: 70 V 72 PRIOR
***Index Snapshot (as of 04:30 GMT)***
- Nikkei225 -0.8%, S&P/ASX -0.1%, Kospi +0.1%, Shanghai Composite flat, Hang Seng -0.9%, Sep S&P500 -0.3% at 2,157
***Commodities/Fixed Income***
- Dec gold +0.2% at $1,343/oz, Sep crude oil -0.2% at $41.05/brl, Sep copper +0.1% at $2.21/lb
- (CN) PBOC to inject CNY70B in 7-day reverse repos; Injects net CNY325B this week v injected CNY265.3B prior
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.6511 V 6.6597 PRIOR; 4th straight firmer Yuan fix;; strongest Yuan fix since July 4th
- (AU) Australia MoF (AOFM) sells A$900M in 4.25% 2026 Bonds; avg yield: 1.8412%; bid-to-cover: 2.58x
***Market Focal Points/FX***
- Asian equity markets are lower as Bank of Japan has effectively kicked the can down the road on deciding to implement further large-scale stimulus, allowing the govt to do more heavy lifting with its fiscal plan instead. Against expectations of deeper cut in negative rates to -0.15% from -0.10% and a large minority view of expansion of annual monetary base beyond the current ¥80T, the BOJ merely boosted its ETF buying program to ¥6T from ¥3.3T and doubled the size of USD lending program to $24B. Inaction at this meeting - one that coincided with an update on BOJ's forecasts for GDP and CPI as well as more soft economic data in household spending and nationwide CPI - underscores the reluctance that Gov Kuroda has shown ever since that initial foray into negative rates back in January. It mattered little that the progress of Abenomics has slowed, JPY has strengthened, and that politically the Abe cabinet has been bolstered by the recently achieved super majority in the upper house of Parliament and thus a perceived mandate to do more on economy. USD/JPY was hit the hardest among the FX majors, falling nearly 200pips on the decision below 102.80. AUD/USD and NZD/USD were up a modest 25pips at 0.7530 and 0.7110 respectively despite the risk-off seen in Japan equities and a downtick in US equity futures.
- To delve deeper into today's BOJ decision, the quarterly forecasts saw inflation for current year cut to 0.1% from 0.5%, but the next 2 years maintained at 1.7% and 1.9% respectively. On growth, the current year was cut to 1.0% from 1.2%, but next year was raised dramatically to 1.3% from 0.1% - presumably thanks in part to expected pause in consumption tax increase. BOJ added it still views the current monetary measures and the latest €28T fiscal stimulus from the govt would have the needed impact to shock the economy, but also said there is still considerable uncertainty over outlook for prices, vowing to conduct a "comprehensive assessment of developments in economic activity and policy effects at the next policy meeting." Overall economic assessment, the view of business investment, private consumption, and industrial output were unchanged, but assessment of exports was cut to "more or less flat" and inflation has been acknowledged to be slightly negative vs prior view of about 0%. BOJ also added Brexit to its list of external uncertainties, while still monitoring risks related to emerging economies, US monetary policy, and debt problems in Europe.
***Equities***
US equities / ADRs:
- PFG: Reports Q2 $1.15 adj v $1.06e; Rev $3.04B v $3.5Be; Increases dividend 5% to $0.41 (implied yield 3.7%); +7.4% afterhours
- GOOGL: Reports Q2 $8.42 v $8.07e, R$21.5B (includes $B TAC) v $20.8B; +4.1% afterhours
- AMZN: Reports Q2 $1.78 v $1.14e, R$30.4B v $29.7Be; +2.1% afterhours
- HIG: Reports Q2 $0.54 v $0.77e (unclear if comp), R$4.68B v $4.69B y/y; +1.1% afterhours
- MAN: Announces New 6M Share Repurchase Authorization (8.3% of shares outstanding); flat afterhours
- CBS Reports Q2 $0.93 v $0.86e, R$3.29B v $3.22Be; -0.1% afterhours
- BIDU: Reports Q2 $1.22 v $0.94e, R$2.75B v $2.59Be; Guides Q3 Rev $2.71-2.80B v $2.86Be; -1.0% afterhours
- WYNN: Reports Q2 $1.07 v $0.97e, R$1.06B v $1.01Be; -6.1% afterhours
- WDC: Reports Q4 $0.79 v $0.72e, R$3.50B v $3.44Be; -6.3% afterhours
- EXPE: Reports Q2 $0.83 v $0.73e, R$2.20B v $2.24Be; Raises dividend; explores potential Trivago IPO; -6.5% afterhours
Notable movers by sector:
- Consumer discretionary: Wynn Macau 1128.HK -4.2% (Q2 result); Anta Sports Products 2020.HK -1.0% (Q2 result); Bega Cheese BGA.AU +6.7% (won contract from Woolworths ); Murray Goulburn MGC.AU -6.0% (loses Woolworth contract); Kao Corp 4452.JP -2.1% (H1 result)
- Industrials: Great Wall Motor 2333.HK +5.6% (H1 result)
- Technology: Denso Corp 6902.JP +3.4% (Q1 result)
- Materials: Lotte Chemical Corp.011170.KR +2.2% (Q2 result); OceanaGold Corp OGC.AU -2.5% (H1 result); Nippon Steel & Sumitomo Metal Corp 5401.JP -4.3% (Q1 result)
- Energy: CNOOC 883.HK -2.4% (profit warning); AWE AWE.AU -2.2% (quarter result); Origin Energy ORG.AU -1.9% (Q4 result)
- Healthcare: Wuyi International Pharmaceutical Co 1889.HK -1.6% (profit warning); Fosun International 656.HK -1.0% (acquisition); Yuhan Corp 000100.KR +4.6% (contract awarded)
- Telecom: Softbank Corp 9984.JP +2.2% (Q1 result)
- Utilities: Mitsubishi Electric Corp 6503.JP +2.4% (Q1 result)
EUROPEAN M&A: In this report we revisit the outlook for M&A in Europe. We combine fundamental views from our sector analysts to highlight potential targets and likely protagonists and also assess the broader backdrop and likely drivers looking forward from a macro perspective. The level of M&A in Europe is actually running below last year and in fact consistent with the reduced near term appetite apparent in our recent survey of corporate spending. However, we see structural financial support and incentives for a revival domestically but also important external factors. Following a screening we get: Centrica, Euronext NV, Exova, ITV, Shawbrook, Victrex and Zodiac Aerospace. Neutrals include: Aberdeen Asset Management, Entertainment One, Jupiter Fund.
Bank of Japan Takes Modest Easing Action
The BOJ expands purchases of exchange-traded funds but leaves a key rate and government bond buying unchanged
TOKYO—The Bank of Japan decided on a modest dose of monetary stimulus Friday, joining Prime Minister Shinzo Abe ’s efforts to reboot the economy but falling short of sweeping new measures.
The central bank said it would buy ¥6 trillion ($58 billion) worth of exchange-traded stock funds annually, up from ¥3.3 trillion previously. It didn’t change its targets for purchasing government bonds or reduce its main interest rate—already in negative territory—in a suggestion that it may be running up against limits of monetary policy.
Markets reacted with disappointment to the news, with the Nikkei Stock Average falling and the yen up against the dollar.
The Bank of Japan already owns more than a third of all outstanding Japanese government bonds, with its balance sheet ballooning to 85% of gross domestic product as of May. Some people inside and outside the central bank have suggested that it couldn’t expand its bond purchases much further without provoking instability in the market, a view that is likely to gain strength after Friday’s decision.
The Bank of Japan also faced resistance after it introduced a negative interest rate for the first time in February. The rate is charged on certain deposits held by commercial banks, and those banks objected that a further dive into negative territory would hurt their earnings and damage public confidence.
The BOJ’s choices will help it avoid a backlash on that front but risk hurting sentiment among investors who expected more-aggressive action to counter faltering inflation and a stronger currency. Pressure on the BOJ to expand its stimulus had been rising for months, and speculation in recent weeks about what it might do went as far as “helicopter money,” a radical policy involving direct underwriting of government spending.
Many economists, though, had already concluded that the BOJ had reached its policy limits, and had little or no ammunition left to fire.
BOJ Gov. Haruhiko Kuroda has vowed repeatedly to do “whatever it takes” to reach 2% inflation. But inflation is nowhere near that level--and in recent months has been moving in the opposite direction. Data released Friday showed one benchmark of prices fell 0.5% in June from a year earlier, the fastest pace of decline since 2013, while consumption was weaker than expected.
The BOJ’s move comes as other central banks struggle to address their own set of challenges. The U.S. Federal Reserve has been trying for months to raise interest rates, but has been thwarted by uneven economic data and global uncertainty, particularly surrounding the U.K.’s vote to leave the European Union.
The European Central Bank last week left its policy on hold in its first meeting after the Brexit vote, with President Mario Draghi saying the central bank would reassess conditions in September.
Mr. Abe’s advisers have called for an “upgrade” of Abenomics, the prime minister’s growth program, including the simultaneous expansion of fiscal spending and monetary easing. That’s a combination not seen in earnest since the early days of Mr. Abe’s tenure, when aggressive monetary easing and robust stimulus helped drive the yen to long-term lows and pushed the Nikkei Stock Average to multi-year highs.
The Bank of Japan showed willingness to be part of the effort in Friday’s policy statement, saying it believed its increased purchases of Japanese stocks and existing loose monetary policy would produce “synergy” with the Abe government’s efforts.
Mr. Abe said Wednesday he would announce a ¥28 trillion spending package next week, though actual new spending is expected to be a fraction of that. In June, he pushed back a sales-tax increase scheduled for next year until 2019, part of a shift toward looser fiscal policy to address sputtering growth.
Mr. Abe took office in December 2012 vowing to end 15 years of deflation, or steadily falling prices. After some initial success, an increase in the national sales tax to 8% in April 2014 from 5% hit consumer spending, and growth has been patchy for the last two years.
Nonetheless, a healthy job market and political stability have helped keep Mr. Abe’s popularity fairly high. His ruling coalition won elections for parliament’s upper house in July, helping the stock market rise.
Mr. Abe’s latest stimulus package is aimed at keeping the momentum going. The program is likely to include greater government spending on infrastructure, including a magnetic-levitation train line connecting Tokyo and Osaka, center of Japan’s second-most-populous region. Construction is already under way on an initial leg of that route. The stimulus plan may also include direct payments to lower-income people.
Some economists question whether such stimulus could overcome the causes of Japan’s slow long-term growth, including its falling population. “Even if Japan were to spend a trillion yen or two more a year, that trend can’t be changed,” said Yuichi Onsen, general manager of global fixed-income investment at T&D Asset Management Co.
Jobs data released Friday showed a tight market, with more jobs available than there are workers to fill them. That is another reason a stimulus might not have the usual effect, because construction companies say they lack the workers to undertake more projects. Japan allows only limited immigration, especially by manual laborers, so it is difficult to expand the workforce quickly to take on additional projects financed by government spending.
UK delay deals fresh blow to Hinkley Point nuclear plant
Ministers announce new review immediately after EDF gives green light to £18bn project
The plan to build an £18bn nuclear reactor at Hinkley Point was hit with a last-gasp delay on Thursday night as the government decided to hold a new review hours after EDF, the project’s French developer, gave it the go-ahead.
Greg Clark, the business and energy secretary, announced that ministers would once more review the project almost immediately after the EDF board had narrowly voted to approve the scheme.
He said: “The UK needs a reliable and secure energy supply and the government believes that nuclear energy is an important part of the mix. The government will now consider carefully all the component parts of this project and make its decision in the early autumn.”
Successive British governments have supported the scheme but Theresa May, the new prime minister, has never given it her personal backing. Mrs May met François Hollande, the French president, last week, and the pair discussed the project.
One person said the scheme was expected to proceed after the review but the fresh delay had been a surprise.
The news came after EDF had given the go-ahead for the UK’s first nuclear power plant in 20 years, approving the Hinkley Point scheme at a board meeting on Thursday.
Directors approved the long-delayed project during a meeting in Paris. But opposition from within the company was underlined by the resignation in protest of a board member as the meeting started. The board was more divided than had been expected.
Pending final sign-off by the British government, which has already agreed to underwrite the project with a guaranteed price for the electricity it produces, construction could begin within weeks.
The new power plant is designed to give the UK zero-carbon power for the next 60 years, to kick-start a string of new reactors across the country and to provide work for France’s nuclear power industry.
EDF said Hinkley Point was “a unique asset” that would benefit the nuclear industries of both Britain and France. It said the “first concrete” would be scheduled for mid-2019 with the plant completed by 2025, when it will be able to meet 7 per cent of the UK’s electricity needs with a capacity of 3.8 gigawatts.
But critics say the project could also risk the financial future of EDF, the highly indebted French utility, whose chief financial officer Thomas Piquemal quit in March, warning that its future was being put in danger by Hinkley Point.
The scheme has been subject to multiple delays and budget revisions since first being proposed in the mid-2000s as part of what Tony Blair’s government promised would be a “nuclear renaissance” for the UK.
New reactors are also being planned in north Wales and in Cumbria, while EDF wants to help develop two sites after Hinkley Point — at Sizewell in Suffolk and Bradwell in Essex.
EDF had hoped to take the final investment decision earlier this year but it was postponed amid growing opposition from board members and executives.
That opposition persisted until the end, despite the company’s decision to push ahead with the scheme. As the meeting got under way, Gérard Magnin quit as a state representative on EDF’s board, calling the company’s nuclear strategy “highly risky”.
In the end, the vote was carried by 10 to 7. It was closer than expected, with all six union representatives and one shareholder representative voting against the measure.
Ministers in the UK must now give their final sign-off to the scheme, having already agreed to pay £92.50 — double the current wholesale price — for each megawatt hour of electricity it produces for 35 years.
While Theresa May has not said anything about the scheme since becoming prime minister two weeks ago, her new chancellor Philip Hammond said earlier this month: “We must make sure the project goes ahead.”
The French group’s Chinese partners in the project, China General Nuclear Power, said: “We respect the new government’s need to familiarise itself with a project as important to the UK’s future energy security as Hinkley Point C and we stand ready to help the government in this respect.”
After Hours Summary: DECK +4%, GOOG +4%, AMZN +2% on earnings/guidance... HIG -11%, FTNT -10%, EXPE -6.5%, WDC -6%, WYNN -6% on earnings/guidance, OTA / casino names lowerAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: TSRI +27.2% (thinly traded), CVEO +11.7% (light volume), LYV +11%, SNMX +10.9% (also discloses an extension of its collaborative research, development, commercialization and license agreement with PepsiCo), MOBL +9.7% (ticking higher), CLD +9.1%, YRCW +9%, ACTG +8.1%, PXLW +7.7%, GIMO +7.3%, GNMK +7.2%, STMP +6.4%, DLNG +6.1%, AVHI +5.8% (ticking higher), BCOV +5.7%, PCCC +4.9%, LPLA +4.9%, CBL +4.7%, DECK +4%, GOOG +3.9%, BGS +3.2%, CATM +3.1%, ELLI +3%, CY +2.5%, TLGT +2.3%, AMZN +2.1%, ARII +1.4%, IM +1.1% (ticking higher), UVE +0.6%
Companies trading higher in after hours in reaction to news: P +2.4% (Corvex Management affirms 9.95% active stake, discloses FCC petition), TERP +2% (light volume-TerraForm Power planning to launch a formal auction in September to sell itself, according to Bloomberg), GE +0.4% (following insider buy disclosure - Chairman / CEO Immelt disclosed the purchase of 50K shares at $31.45/share)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: EHTH -14.7%, SFS -13.8%, CAA -10.8% (ticking lower), HIG -10.7%, FTNT -10.2%, CYBE -10.1%, SRCL -9.5% (also discloses that various prior financial statements should no longer be relied upon due to errors in the timing of recognition of certain loss reserves), MDCA -8%, RCKY -7.3% (light volume), EXPE -6.5%, WDC -6.3%, WYNN -6.1%, EMN -5.5%, EYES -5.3% (also announced plans to distribute the Argus II Retinal Prosthesis System in Taiwan through exclusive agreement with Orient Europharma and in Iran through Arshia Gostar Darman), QSII -5.1%, ISIL -2.6%, COLM -2.5%, AUY -2% (also announces sale of Mercedes mine in Mexico), SYNA -1.8%, BIDU -1%
Companies trading lower in after hours in reaction to news: QTNT -16.3% (commences an underwritten public offering of its ordinary shares for an undisclosed amount), TRIP -2.2% and PCLN -2% (following EXPE earnings)
Select casino / gaming names are lower following WYNN earnings: LVS -2.4%, MPEL -1.6%, MGM -0.9%
Closing Market Summary: Stocks Little Changed Ahead of Bank of Japan Policy StatementThe major averages ended Thursday's session with some fight, but ultimately closed the day mixed and with modest changes. The Nasdaq (+0.4%) outperformed on the back of Facebook's (FB 125.00, +1.66) glowing earnings report and some dealmaking that included Oracle (ORCL 41.19, +0.26) acquiring NetSuite (N 108.41, +16.84) for $9.3 billion in cash.
Overall, there was an air of hesitation in the air ahead of some key happenings, including earnings reports from Amazon.com (AMZN 752.61, +15.94) and Alphabet (GOOG 745.91, +4.14) after Thursday's close, a policy decision from the Bank of Japan, and the stress test results from the European Banking Authority on Friday.
Other limiting factors included the continued slide in oil prices, underlying frustration with the Fed's uncertain policy outlook, a cautious-sounding outlook from Ford (F 12.71, -1.13), and a nagging sense the market may be due for a consolidation phase after its strong run off the June 27 post-Brexit low. Even so, sellers didn't show a lot of conviction today as the market continued to exhibit an inclination to buy on dips versus selling on strength.
Equities began the day on a choppy note, responding to a plethora of quarterly earnings reports and yesterday's policy statement from the Federal Open Market Committee. The Fed voted to maintain its key policy rate, but left its larger policy intentions open ended.
On the earnings front, technology (+0.4%) heavyweight Facebook blew past analysts' estimates for the quarter while Ford disappointed investors with its bottom-line result and a warning regarding its full-year outlook.
The major averages went on the defensive in early action, weighed down by a retreat in oil futures. WTI crude fell from the $42.00/bbl price level at the start of the session and slipped to the $41.10/bbl area shortly before midday.
The S&P 500 retreated to the 2160 area where it found support and clawed its way back from there before seeing a slight dip into the close.
The heavily-weighted financial (+0.2%) and technology (+0.2%) sectors helped lead the afternoon reversal. Six sectors ended above the flat line, with the consumer staples sector (+0.5%) logging the biggest advance. The telecom services (-0.7%), energy (-0.2%), materials (-0.1%), and health care (-0.04%) sectors ended in negative territory.
The relative strength in the consumer staples sector was fueled by Anheuser-Busch InBev (BUD 125.92, +3.98), which rallied 3.3% ahead of tomorrow morning's earning release. The stock also benefited from reports that indicated that major shareholders of SABMiller PLC (SBMRY 57.55, +1.30) approve of Anheuser-Busch InBev's revised takeover offer for the company. Separately, Molson Coors Brewing (TAP 97.75, +4.62) gained 5.0% as its stands to acquire SABMiller PLC's interest in MillerCoors in the transaction.
In the consumer discretionary space, Amazon.com outperformed ahead of this evening's earnings report. Elsewhere, Dow component Home Depot (HD 137.96, +1.65) topped the price-weighted index while automakers underperformed alongside Ford.
The U.S. Dollar Index (96.69, -0.36) ended modestly lower as the euro and the commodity-currencies gained ground against the buck. The euro/dollar pair finished higher by 0.2% (1.1077) while the greenback lost 0.2% against the Canadian dollar (1.3158). The dollar/yen pair finished flat (105.40) ahead of tomorrow's policy statement from the Bank of Japan.
Treasuries finished on a mixed note. The short-end of the Treasury curve saw some modest buying interest while the long end lagged. The yield on the 10-yr note finished higher by one basis point at 1.50%.
Today's trading volume was in-line with the recent average as more than 853 million shares changed hands on the NYSE floor
Today's economic data included weekly initial claims and International Trade in Goods for June:
- Initial claims for the week ending July 23 increased by 14,000 to 266,000 (consensus 260,000).
- Overall, there is nothing in this report that will make the market anxious about a weakening in labor market conditions.
- There were no special factors influencing the claims reading, which remained below 300,000 for the 73rd straight week.
- The four-week moving average for initial claims dropped by 1,000 to 256,500.
- Continuing claims for the week ending July 16 were 2.139 million, up 7,000 from the prior week.
- The four-week moving average for continuing claims decreased by 7,000 to 2.135 million, which is the lowest average since November 11, 2000.
- June International Trade in Goods showed a deficit of $63.30 billion, compared to the May deficit of $60.59 billion.
Tomorrow's economic data will include the advance estimate for Q2 GDP (consensus +2.6%), which will cross the wires at 8:30 ET. The Chicago PMI for July (consensus 54.0) and the final reading of the University of Michigan Consumer Sentiment Survey for July (consensus 90.0) will be released at 9:45 ET and 10:00 ET, respectively.
- Russell 2000 +7.3% YTD
- S&P 500 +6.2 % YTD
- Dow Jones +5.9 % YTD
- Nasdaq +3.0% YTD
Amazon beats on the top and botton line; guides Q3 revs in-line
Reports Q2 (Jun) earnings of $1.78 per share, $0.66 better than the Capital IQ Consensus of $1.12; revenues rose 31.1% year/year to $30.4 bln vs the $29.57 bln Capital IQ Consensus and $28.0-30.5 bln guidance.
Operating income $1.3 bln vs. $375-975 mln guidance and $900 mln estimate.
North American sales +28% to $16.52 bln; operating income +102% to $702 mln.
International sales +29% to $9.8 bln; op. income ($135) mln.
AWS sales +58% to $2.9 bln; operating income +126% to $718 mln.
Co issues in-line guidance for Q3, sees Q3 revs of $31.0-33.5 bln vs. $31.66 bln Capital IQ Consensus; operating income is expected to be between $50 million and $650 million vs. $800 mln est, compared with $406 million in third quarter 2015.
Alphabet prelim Q2 $8.42 vs $8.04 Capital IQ Consensus Estimate; revs $21.5 bln vs $20.77 bln Capital IQ Consensus Estimate
Alphabet- Paid Clicks and Cost Per Clicks Aggregate paid clicks Y/Y
* Aggregate Paid Clicks Q2 +29%;-Q1 +29%;Q4 +31%; Q3 +23%.
- Paid Clicks on Google websites- Q2 +37%;Q1 +38%; Q4 +40%; Q3 +35%.
- Paid clicks on member sites- Q2 0%;Q1 +2%; Q4 +2%; Q3 -5%.
* Aggregate cost per click- Q2 -7%; Q1 -9%; Q4 -13%; Q3 -11%
- CPC on Google sites- Q2 -9%;Q1 -12%; Q4 -16%; Q3 -16%.
- CPC on member sites- Q1 -8%; -8%; Q4 -8%; Q3 -4%.
Amazon Q2 operating income $1.3 vs. $375-975 mln guidance and $900 mln estiamte; rev $30.4 bln vs. $28-30.5 bln guidance and $29.6 bln CIQ Consensus;
Amazon sees Q3 operating income of $50 million and $650 million mln vs ~$800 mln estimate; revs $31.0 billion and $33.5 billion bln vs $31.7 bln consensus
This guidance assumes, among other things, that no additional business acquisitions, investments, restructurings, or legal settlements are concluded.