COMPANY NEWS IN BRIEF

Jewellery helps Richemont sales jumpStrong demand for its jewellery and watches in the Americas and Europe in a post-pandemic rebound helped quarterly sales at Cartier owner Richemont rise by nearly a third, the world's second-largest luxury group said on Wednesday.Sales at Richemont rose to 5.658 billion euros (US$6.41 billion) in the company's third quarter ended December, a 32% increase when currency swings were removed. The performance was 38% better than the 2019 Christmas quarter before the pandemic hit, Richemont said in a statement.Shares, slightly down so far this year following a 71% jump last year, climbed 5.7% in early trading after the better-than-expected sales.Demand for luxury goods has rebounded strongly from the worst troughs of the coronavirus pandemic - Italy's Prada and Britain's Burberry also posted strong numbers this week - and Richemont benefits from its exposure to the fast-growing jewellery category. read moreHigh-end watch sales also recovered last year, with Swiss watch exports overall slightly above 2019 levels at the end of November. -ReutersUnited Airlines cuts capacity forecastUnited Airlines Holdings on Wednesday trimmed its capacity forecast and warned of higher costs, after posting a smaller-than-expected fourth-quarter loss, citing turbulence from the Omicron coronavirus variant.The Chicago-based carrier said the latest wave of the health crisis has depressed near-term demand even as bookings for the spring and beyond remain strong.United said its priority is to match capacity with demand. As a result, its 2022 capacity is now projected to be lower than in 2019, instead of growing 5% as estimated earlier.It expects to restore 82% to 84% of pre-pandemic capacity in the quarter through March, with revenue recovering to just 75% to 80% of 2019 levels. Costs this year are now expected to be higher than in 2019, instead of going down.United's shares declined about 2.5% to US$43.31 in extended trading. Rival Delta Air Lines last week forecast a current-quarter loss due to the Omicron variant's impact on travel. -ReutersBank of America profit beats estimatesBank of America Corp reported a better-than-expected 30% jump in quarterly profit on Wednesday, driven by loan growth and record-breaking M&A volumes in its investment banking business.Flush with cash and emboldened by soaring stock market valuations, large buyout funds, corporates and financiers struck billions of dollars’ worth of deals in the fourth quarter, generating record advisory fees of US$850 million for BofA, up 55% from a year earlier.Loans grew during the quarter across every category except home equity, with average loans and leases, excluding those from the government's Paycheck Protection Program, up 3.4% from the prior quarter and 3.2% from a year ago, the bank said.That compared with a 6% rise in average loans at JPMorgan Chase & Co. In contrast, Wells Fargo & Co reported a 3% drop, although it noted positive trends to the upside in the final six weeks of 2021.2021 started with "green shoots" and culminated "with US$50 billion in record loan growth this quarter," Bank of America's Chief Executive Brian Moynihan said on a call with analysts. -ReutersChesapeake to buy Chief Oil & GasChesapeake Energy Corp is in advanced talks to acquire privately owned natural gas producer Chief Oil & Gas for around US$2.4 billion, including debt, people familiar with the matter said on Wednesday.A deal for Chief Oil & Gas, founded and controlled by Texan 'wildcatter' Trevor Rees-Jones, could be announced as soon as this week, the sources said. In wildcat drilling, exploration wells are dug in areas not known to be natural resource fields.The acquisition by Chesapeake, a US shale gas and oil producer that only emerged from bankruptcy just last year, underscores the recovery of parts of the energy industry as natural resource prices surge to multi-year highs.The sources, who spoke on condition of anonymity to discuss private information, cautioned that negotiations could still fall apart at the last moment.A Chief Oil & Gas spokesperson declined to comment. Chesapeake did not immediately respond to a request for comment. -ReutersMorgan Stanley outperforms rivalsMorgan Stanley reported fourth-quarter profit which beat market expectations, outperforming rivals as its focus on advising wealth clients bore fruit, sending its shares up as much as 3.7% on Wednesday.The Wall Street investment bank also benefited from a boom in global dealmaking and keeping expenses in check at a time when its peers had been hampered with rising wages and technology costs.Full-year profit as well as revenue was a record for the bank, which advised on some of the world's biggest mergers during the year. Net income surged 37% to US$15 billion and revenue jumped 23% to nearly US$60 billion.The bank also lifted its long-term target for return on tangible capital equity (ROTCE), a key metric which measures how well a bank uses shareholder money to produce profit. It is targeting ROTCE of at least 20%, up from 17% previously."We are increasing our ROTCE goal to reflect the earnings power we see in our business model," Chief Executive James Gorman told analysts on a conference call. -Reuters

COMPANY NEWS IN BRIEF

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Namibian Sun 2022-05-29

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COMPANY NEWS IN BRIEF

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Namibian Sun 2022-05-29

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