Standard Chartered Bank on Wednesday became the latest company to warn of the impact of this year’s sharp decline in emerging market currencies.
The bank said in a statement that growth income and in pre-tax profits would be below 10 per cent in the six months to the end of June, due to the slow down in Asia and a drop in Asian currencies against the US dollar, not least in the Indian rupee.
StanChart shares fell 2 per cent early in Hong Kong, before investors decided that there wasn’t much in the announcement that they didn’t know already – and the stock recovered to trade 1 per cent lower. But StanChart is not alone. Procter&Gamble and Philip Morris International have both this month warned of the impact of EM currency swings on their results. There will be others.
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