EU TECHNOLOGY: US Earnings: Microsoft Earnings Beat, Azure Growth Disappoints
MSFT Aaa/AAA
From our DM team last night; equity indicating -5% though not a spread mover given the credit quality.
• Microsoft reported Q2 FY25 earnings that exceeded revenue and EPS estimates but disappointed on Azure growth, leading to a post-market decline of over 5%. Revenue rose 12% YoY to $69.6B (est. $68.9B), with EPS at $3.23 (est. $3.11). Cloud revenue grew 21% to $40.9B, but Azure's 31% YoY growth missed the 31.8% estimate and slowed from the prior quarter’s 34%. Capex surged to $15.8B, reflecting heavy AI investments, with management signaling continued spending growth. While Microsoft’s AI-driven revenue hit a $13B annualized run rate (+175% YoY), concerns over monetization timelines and rising competition, especially from cost-efficient AI models like DeepSeek has added pressure.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
China To Boost EV Use In Government Procurement
China's Ministry of Finance said the proportion of electric vehicles in the total annual official vehicle procurement should not be less than 30% in principle, China Securities Journal reported citing a statement on MOF website. The procurement ratio for EVs should be 100% for official vehicles with relatively fixed routes and single usage scenarios, and mainly operating in urban areas such as vehicles for confidential communication, the statement said.
USDJPY TECHS: Corrective Pullback
- RES 4: 160.00 Round number resistance
- RES 3: 159.45 High Jul 12
- RES 2: 159.26 0.618 proj of the Sep 16 - Nov 15 - Dec 3 price swing
- RES 1: 158.08 High Dec 26
- PRICE: 156.29 @ 06:47 GMT Dec 31
- SUP 1: 155.89/155.19 High Nov 20 / 20-day EMA
- SUP 2: 153.25/150.90 50-day EMA / Low Dec 10
- SUP 3: 149.37 Low Dec 06
- SUP 4: 148.65 Low Dec 03 and the bear trigger
USDJPY has pulled back from this week’s high, however, the move down appears corrective in light of an over-arching bullish condition. The recent breach of 156.75, the Nov 15 high, confirmed a resumption of the uptrend and has paved the way for a move towards 159.45, the Jul 12 high. Moving average studies are in a bull-mode position highlighting a dominant uptrend. Initial firm support is 155.19, the 20-day EMA.
EUROZONE T-BILL ISSUANCE: W/C December 30, 2024
Greece is due to sell bills this week. We expect issuance to be E0.5bln in first round operations, in-line with last week.
- Today, Greece will sell E500mln of the new 13-week Apr 4, 2025 GTB.
For more on future auctions see the full MNI Eurozone/UK T-bill auction calendar here.
