World Street | US growth slows, Microsoft and Alphabet surpass projections, Honda gains momentum, and more

World Street | US growth slows, Microsoft and Alphabet surpass projections, Honda gains momentum, and more

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The Bank of Japan's policy objectives, Honda's establishment of an EV hub, and IT giants surpassing revenue projections are just a few of the significant global happenings.

Cloud services drove growth in the first quarter earnings report from tech titans Alphabet and Microsoft. This and other stories in the April 26 issue of World Street Journal. The US GDP is slowing down, which has reignited worries of rate cuts. At the same time, the Bank of Japan will be keenly monitored for signs of tightening monetary policy.

Alphabet Exceeds Predictions

After hours trading saw a 13% increase in Alphabet's shares, the parent company of Google, after its quarterly profits above forecasts. Alphabet's revenue for the three months ending March 31 increased by 16 percent year over year to $67.59 billion. The massive technology company also declared a 20-cent dividend per share. CEO Sundar Pichai said, "Our first-quarter results show strong performance from Search, YouTube, and Cloud."

US GDP struggles

The US GDP missed experts' projections for the first quarter, coming in at 1.6 percent instead of the 2.5 percent they had predicted. The GDP has decreased from the December quarter's figure of 3.4 percent. Additionally, inflation remained sticky, with the "super core" inflation rate coming in at 3.7%.

Experts predict that the US Federal Reserve will have to reschedule its rate-cutting plan due to the sluggish GDP and higher-than-expected inflation.

Microsoft's Profits Were Higher

Microsoft's cloud computing division helped the tech giant's profitability during the March quarter, causing its top and bottom lines to surpass projections. Microsoft's sales increased sequentially by 17% to $61.86 billion.

Azure and Microsoft's other cloud services saw a 31% increase in income. A growing number of users are signing up for Azure's cloud services, which include OpenAI products.

Honda Forward-Charging

For a total estimated cost of $11 billion, Honda Motor and a joint venture partner will establish a "comprehensive EV value chain" in Ontario, Canada. The new facility will include a battery and assembly factory in addition to other tools and resources needed to design and build electric cars. Production is expected to begin in 2028 and, when fully operational, have a capacity of around 280,000 automobiles.

Bank of Japan Observed

When the Bank of Japan releases its inflation forecast, it will be widely watched. In an attempt to strengthen the Yen from its present 34-year low levels, some anticipate that the BoJ would indicate that it is prepared to hike interest rates from near-zero. Though no policy changes are anticipated, remarks made by BoJ governor Kazuo Ueda will be closely examined for any hints about what's to come.

Beijing's shoulder chip

Beijing authorities have promised incentives for businesses who purchase AI chips made in China. This comes as the nation seeks to reduce its dependency on foreign technology by developing its own semiconductor sector. By 2027, Beijing wants its smart computing infrastructure to be entirely self-sufficient.