By THE NEW YORK TIMES
May 3, 2017
We’re following major developments in the markets throughout the day. Check below for the latest updates.
What to Watch For: The Fed, France and Earnings
• The Federal Reserve is expected to keep its benchmark interest rate unchanged at the conclusion of its two-day policy-setting meeting.
• France’s two remaining presidential candidates, Emmanuel Macron and Marine Le Pen, face off in their only televised debate before the decisive second round of the election on Sunday. The debate starts at 3 p.m. E.D.T.
• Tesla, Facebook and Time Warner report earnings.
• HNA Group, a secretive Chinese conglomerate, has become Deutsche Bank’s biggest shareholder.
• Don’t forget to read the DealBook Morning Agenda.
Eurozone Growth and the (Potential) Withdrawal of Stimulus
The eurozone, the 19-nation common currency area, reported economic growth of 0.5 percent in the first quarter compared with the previous three-month period.
Despite all the uncertainty in the region — from grappling with “Brexit” negotiations to elections in several countries — the economy seems to be holding up.
“Bar a surprise at the French elections on Sunday, eurozone growth is set for a strong 2017,” Bert Colijn, a senior economist at ING, said in a note to clients.
Market reaction was muted (the figures were in line with forecasts), but the impact of a strengthening economy could still be considerable: Stronger growth would put pressure on policy makers at the European Central Bank to withdraw monetary stimulus sooner than expected.
Volkswagen Profits Indicate Carmaker on More Stable Footing
Volkswagen’s operating profit rose 27 percent in the first quarter from the year before to 4.4 billion euros, or about $4.8 billion, according to more detailed earnings published Wednesday.
The report confirmed an earlier preliminary report and indicated that the company was on a more stable footing after its emissions scandal and questions about its insular culture.
The results were helped by operating profit from the Volkswagen brand, which rose to €869 million from €73 million the year before.
“Our effort to improve efficiency and productivity across all areas of the company are also paying off,” Matthias Müller, the chief executive, said in a statement.
Shares slumped almost 1 percent on Wednesday.
The company will hold a news conference on Friday, where it plans to outline its plans to revive its brand, which had struggled with production costs and meager profits before the emissions scandal unfurled. — AMIE TSANG
BNP Earnings Up on Trading
BNP Paribas’s profit rose 4.4 percent in the first quarter, driven in part by gains in its fixed income and equity trading businesses.
The French bank said that revenue in its global markets business increased 33 percent in the first three months of the year after it faced “a very challenging market context at the beginning of the year 2016.”
Its shares declined less than 1 percent in early trading in Paris on Wednesday. — CHAD BRAY