Shell shares go up:
Following the first-quarter profit reports, which exceeded market analyst expectations, Royal Dutch Shell’s shares witnessed a step up in the London stock market. This is despite the company’s net income having slightly receded to $5.4 billion from last year. Reports suggest that the increase in Shell’s share value can be attributed to the commendable growth in the company’s trading and natural gas businesses.
The first quarter had also witnessed a steep increase in the prices of Shell crude oil, but according to reports, they did not go as high as what they were during the same period last year. This, added to the comparatively poor performance from its rivals – Exxon Mobil and BP – has helped increase Shell’s market value. Both its competitors have suffered lower profits in the first quarter this year.
Volkswagen stays resilient despite lower deliveries:
Volkswagen has displayed immense resilience by reporting an increase of 3.1% in its revenue despite lower car deliveries in the first quarter of 2019. The company’s profits worth €3.9 billion ($4.4 billion) have been reported to be in accordance with analyst expectations. Its shares also increased by 5% in the Frankfurt stock exchange. In addition, in light of reports suggesting Volkswagen’s diesel emissions scandal, the company seems to be financially prepared to handle the issue, claiming to have kept aside nearly €1 billion ($1.1 billion) to cover costs emanating from the scandal.
Most car manufacturers are going through a tough time this year for a number of reasons, one of them being the weak trade market in China.
Central banks leave interest rates unchanged:
The key benchmark rate of the Federal Reserve remained unchanged even Wednesday, in spite of President Trump making repeated pleas for lower bank interest rates. The policy-making committee, headed by Chairman Jerome Powell, made a unanimous decision to continue with their wait-and-watch policy in the light of growing uncertainty for the British economy amid confusion over the Brexit issue. The Bank of England is expected to announce its latest policy decision on Thursday.