France : Google has revealed that its strong foothold on smartphones contributed to outsized growth and profits in the latest quarter, less than a week after the EU hit the internet company with a €4.3bn fine over its Android mobile software.
Shares in Google’s parent, Alphabet, climbed 4 per cent in after-market trading on Monday as Wall Street welcomed another period of re-accelerating growth in the company’s advertising business.
The fine from Brussels sliced 60 per cent from Alphabet’s profits in the three months to the end of June. However, investors looked past that to the latest evidence that its Android strategy — launched 10 years ago to make sure it has a guaranteed way of reaching smartphone users with its search engine and advertising — has been a runaway business success.
In markets, Chinese stocks rose after Beijing promised further measures to bolster the economy, sending infrastructure-related shares higher. The CSI 300 of Shanghai and Shenzhen stocks was up 1.8 per cent, at a one-month high. The Hang Seng China Enterprises index of Hong Kong-listed Chinese shares rose 2.4 per cent putting it on track for its biggest one-day gain since March and the Hang Seng index was up 1.4 per cent. Japan’s Topix was up 0.5 per cent and the S&P/ASX 200 was 0.6 per cent higher.
Meanwhile, Japanese 10-year government bond yields regained their poise on Tuesday after climbing to a 6-month high in the previous session on concerns that the Bank of Japan might tweak its policy.
Futures tip the FTSE 100 to open 0.4 per cent higher while the S&P 500 is set to climb 0.2 per cent.
European companies with earnings or updates slated for Tuesday include PSA, UBS, Hammerson, Fulham Shore, Halfords, Fevertree, Britvic, Drax, IG Group, PZ Cussons and Heathrow. The economic calendar is a mixed bag (all times London)
