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CNN Live At Daybreak
International Market Update
Aired February 06, 2004 - 05:16 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Turning now to money matters, investors are waiting to see the Labor Department's January employment figures. Analysts are expecting a positive report, so let's see if that's affecting the financial markets overseas.
For that, we head to London and Tony Campion.
Good morning, Tony.
TONY CAMPION, CNN CORRESPONDENT: Good morning, Carol.
Yes, it sure is. Of course, the jobs report is always a biggie - 8:30 Eastern is the time it comes out. Rise of 150,000 is what people are expecting. The big question is whether or not the figures match those expectations. If they don't, you know which way Wall Street is going to head. I guess you can make your own guess, since certainly markets here are going to follow that trend too.
For now, we're in positive territory. The FTSE is up about a quarter of a percent. We've got the DAX up about three-quarters of a percent. And the Camp 40 (ph) in Paris up slightly less than half of one percent.
But the big news, really, in terms of, you know, what's making the markets tick right now is what Erickson has come out with. You know, Erickson, obviously, maker of mobile phones, of the kit that makes the mobile phones work (UNINTELLIGIBLE) for Erickson.
And they have come out with some results that have been absolutely storming; the share prices up some 12 percent. They've more than doubled the market expectation in terms of their profits, just for the fourth quarter alone, OK? They came out with $754.4 million. That's the adjust pre-tax profit, and that's a lot of money. Market likes it. Particularly the fact the margins up as well - actually, up to - carry on (ph) from 42 percent from only 36 percent last time.
Maybe that's kind of technical, but it's good news. It means that all the job cuts that they've put in place look like they could actually have a continuing affect on the figures. (UNINTELLIGIBLE) job cuts sometimes only affect a company's figure in sort of one time around and it doesn't necessarily peak (ph) through to the bottomline going forward. Margin up is a good thing.
And I guess the other key thing - just while we're talking about finance - to highly is, of course, the G-7 meeting coming over this weekend in Florida. You're probably talking about that. You know, the market's already betting that the - the finance ministers who go aren't going to be able to come out with any coherent strategy on the dollar, the weakening dollar. OK, it's a little bit stronger than it was against the euro compared to a few weeks ago, but already the market betting that it's going to be on the decline again after this G-7 meeting.
So it's kind of a - kind of a watch this space day, Carol.
COSTELLO: All right. And we'll be doing that. Tony Campion, live from London this morning.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired February 6, 2004 - 05:16 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Turning now to money matters, investors are waiting to see the Labor Department's January employment figures. Analysts are expecting a positive report, so let's see if that's affecting the financial markets overseas.
For that, we head to London and Tony Campion.
Good morning, Tony.
TONY CAMPION, CNN CORRESPONDENT: Good morning, Carol.
Yes, it sure is. Of course, the jobs report is always a biggie - 8:30 Eastern is the time it comes out. Rise of 150,000 is what people are expecting. The big question is whether or not the figures match those expectations. If they don't, you know which way Wall Street is going to head. I guess you can make your own guess, since certainly markets here are going to follow that trend too.
For now, we're in positive territory. The FTSE is up about a quarter of a percent. We've got the DAX up about three-quarters of a percent. And the Camp 40 (ph) in Paris up slightly less than half of one percent.
But the big news, really, in terms of, you know, what's making the markets tick right now is what Erickson has come out with. You know, Erickson, obviously, maker of mobile phones, of the kit that makes the mobile phones work (UNINTELLIGIBLE) for Erickson.
And they have come out with some results that have been absolutely storming; the share prices up some 12 percent. They've more than doubled the market expectation in terms of their profits, just for the fourth quarter alone, OK? They came out with $754.4 million. That's the adjust pre-tax profit, and that's a lot of money. Market likes it. Particularly the fact the margins up as well - actually, up to - carry on (ph) from 42 percent from only 36 percent last time.
Maybe that's kind of technical, but it's good news. It means that all the job cuts that they've put in place look like they could actually have a continuing affect on the figures. (UNINTELLIGIBLE) job cuts sometimes only affect a company's figure in sort of one time around and it doesn't necessarily peak (ph) through to the bottomline going forward. Margin up is a good thing.
And I guess the other key thing - just while we're talking about finance - to highly is, of course, the G-7 meeting coming over this weekend in Florida. You're probably talking about that. You know, the market's already betting that the - the finance ministers who go aren't going to be able to come out with any coherent strategy on the dollar, the weakening dollar. OK, it's a little bit stronger than it was against the euro compared to a few weeks ago, but already the market betting that it's going to be on the decline again after this G-7 meeting.
So it's kind of a - kind of a watch this space day, Carol.
COSTELLO: All right. And we'll be doing that. Tony Campion, live from London this morning.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
