Mining giant plunges 14 percent

Anglo American was the Euro Stoxx 600 index’s biggest loser on Friday, with a price drop of 14 percent. Europe’s second largest mining company announced that spending will be reduced by 1.8 billion euros until 2026. The reason is a dramatic drop in demand in the metal market, and next year Anglo American will cut production by 4 percent. Previously, the company had planned cost cuts of “only” 500 million dollars, including by firing employees at the head offices in Johannesburg and London.

In the US, however, First Solar was up by more than 3 percent, after Morgan Stanley upgraded the solar panel maker from “underweight” to “overweight.” The price target was also jacked up from 214 to 237 dollars, which gives an upside of around 60 percent. The brokerage pointed out that First Solar’s products are sold out until well into 2026, and that the cost side is secured. This is expected to improve margins by more than 10 per cent over the next three years.

Lululemon, which is best known for its yoga pants, was also in the news. The retail chain sold more than expected in its third quarter, which ended on October 29, but earnings were down from the same period last year. Management is now forecasting a turnover of 3.14-3.17 billion dollars in the fourth quarter, which includes the important Christmas trade. In advance, $3.18 was expected, but on Friday afternoon the share was still up by 2 percent.

On the macro front, the US nonfarm payrolls report made the biggest headlines. Employment outside agriculture increased in November by 199,000, which was 9,000 more than the consensus estimate and up by 49,000 from October. At the same time, unemployment shrank to a modest 3.7 per cent, against the expected 3.9 per cent.

It’s worth noting that these statistics are by no means written in stone. On the contrary. From January to September, every single monthly employment figure has subsequently been revised down. In Friday’s report, the September figure was reduced from the original 332,000 to now 297,000.