Half yearly results reveal xero net profits… again

Xero’s (ASX:XRO) share price fell on Thursday’s open following the company announcing its first half results and delivering news that chief executive Steve Vamos will be resigning. The unexpected announcement regarding Vamos was made in conjunction with results showing net losses deepening over a yearly basis to $NZ10.2 million. The company has recorded a loss for the last four halves with H1 FY2021 being the last profitable half on record. Costs across the company increased over the half as asset impairments and other income and expense have approximately doubled since last half. Net losses came in higher than analyst expectations while EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also fell behind expectations. Following the result, shares ended the week down 6.4%, swapping hands at $70.09.

JP Morgan lists ETFs down under

The ASX welcomed two new JPMorgan ETF’s this week offering Aussie investors another avenue to increase global exposure within their portfolios. The JPMorgan Equity Premium Income Active ETF (ASX:JEPI) and JPMorgan Global Research Enhanced Index Equity Active ETF (ASX:JREG) will offer investors the opportunity to invest in an actively managed ETF that specialises in selecting global assets. The two new ETFs are the banks only listed ETFs in the Australian market and are designed for investors who are seeking capital growth and regular income. The JPMorgan Equity Premium Income Active ETF began trading on Friday.

US inflation is … down?

Thursday night’s US inflation print showed the headline rate of inflation at its lowest level since January causing a strong market rally. The Bureau of Labor Statistics announced that inflation had fallen from 8.2% in September to 7.7% in October. The ASX 200 jumped 2.67% in the first ten minutes of trading on Friday morning, whilst the FTSE 100 and S&P 500 rose 1.31% and 5.54% intraday respectively. In addition to the dip in the headline rate, the core rate of inflation which excludes the volatile energy and food sectors also dropped 0.3%.

Elon dumps Tesla shares

Tech billionaire Elon Musk sold US$3.95 billion worth of shares this week in his electric vehicle company, Tesla. Musk began purging his holdings on Friday, unloading additional shares on Monday and Tuesday, resulting in a total dump of 19.5 million shares. Shares in the company have slumped 8.07% over the week, swapping hands at US$190.72 per share. This also isn’t the first time Musk has offloaded Tesla shares. In August he sold a $6.9 billion stake in the company after a $8.5 billion sale in April.

What we are watching:

  • Tuesday: Great Britain unemployment rate
  • Wednesday: Australian wage data
  • Thursday: Australian unemployment data

One good read:

There’s one big subject our leaders at Cop27 won’t touch: livestock farming