Samsung’s profit in the fourth quarter fell by 40%
Quarterly results of Samsung Electronics showed a sharp decline in profits, foreshadowing the difficulties that await the technology giant against a background of sluggish sales of smartphones.
Revenue from main activity, production of microprocessors, increased substantially in the last year, offsetting the decline in profits in the cellphone field.
However, taking into account that the industry is experiencing a surplus production of microprocessors, falling prices affected the company’s results.
Samsung’s net profit for the three-month period to December 31 decreased by 40% to 3.2 trillion Korean won ($ 2.7 billion). Meanwhile, operating profit rose by 16% to 6.14 trillion won, while the revenue remained almost unchanged at around 53 trillion won.
Goldman Sachs: Indian shares are more popular than Chinese
According to Goldman Sachs, in the asset managers’ portfolios shares of Indian companies dominate, while concern about the outflow of capital has reduced the demand for Chinese stocks.
Since the beginning of the year the shares of Asian companies suffered a sale by foreign investors in the amount of $ 7.7 billion.
Foreigners sold the Asian securities for $ 40 billion since the beginning of June, was estimated at Goldman Sachs.
Meanwhile, Indian stocks remain popular.
“Despite the fact that the consensus assumes long positions on Indian shares, investors worry about the potential risks if the flow pressure remains, amid inflated quotes and decreased appetite for assets in emerging markets”, – says Goldman.
Combined positions of investors on the island securities are any insignificant. The least popular are financial stocks.
“Of the 200 largest funds in emerging markets three quarters keep a small share of Chinese banks in portfolio, or do not hold at all”, – continues Goldman.
According to the bank, the funds will be forced to increase the share of these positions in their portfolios, otherwise the sector is threatened with status of the most unpopular, in particular, as the share of Chinese stocks in the MSCI Emerging Market Index will rise in May.
Deutsche Bank has suffered a loss in the investment division
Deutsche Bank reported about a net loss of 6.8 billion euros in 2015, against a background of legal costs and restructuring costs.
John Cryan, head of the bank, said that in 2015 a significant progress in implementing the updated strategy was made. The decisions that were taken during the second half of the year were necessary, but resulted in a loss for the last quarter and the whole year, he added.
The bank reported about a loss before the taxation of 1.5 billion euros in its investment division for the fourth quarter. The revenue fell by 30% compared to the previous year, and the bond trade slowed down.
In October Deutsche Bank announced a restructuring plan reducing staff and closing offices in 10 countries.