Boeing returns to Q4 profit on asset sale, but core programme losses persist

South African Market Summary

South African equities retreated, with the JSE All Share Index falling 0.92% to 123,419.62 and the Top 40 declining 0.93% to 115,619.70, as investors weighed softer risk appetite against improving domestic fundamentals. Government and business have launched Phase 3 of their reform partnership, targeting youth employment, crime reduction and faster progress in energy and logistics. Recent gains include removal from the FATF grey list, an S&P upgrade and adoption of a 3% inflation target, supporting the rand and bonds. New measures to bolster automotive production are expected by February.

European Market Summary

European equities advanced, supported by company-specific catalysts that helped offset persistent trade-related uncertainty. Banks led sector gains, reaching their highest levels since 2008, while HSBC strengthened after briefly touching a $300 billion market capitalisation. Puma surged after China’s Anta agreed to acquire a significant minority stake, a move expected to support the brand’s expansion in the Chinese market. Macro data also aided sentiment, with Spain’s unemployment rate falling to its lowest level since 2008, pointing to gradual labour-market stabilisation despite remaining elevated by EU standards.

US Market Summary

US equities edged higher, with the S&P 500 notching another record close as optimism ahead of megacap earnings offset a sharp selloff in health insurers. UnitedHealth led declines after policy proposals signalled pressure on Medicare Advantage reimbursement, dragging peers lower. Strength in General Motors, following robust quarterly profit, helped counterbalance sector weakness and supported broader indices, with the Nasdaq also advancing. Investor focus now shifts to results from key technology bellwethers, seen as critical for sustaining AI-driven momentum. Markets are also bracing for the Federal Reserve’s policy decision and forward guidance.

Asian Market Summary

Asia-Pacific markets traded mixed, diverging from Wall Street’s record close as regional data and corporate updates shaped sentiment. Australian inflation accelerated to 3.6% year on year in the fourth quarter, the highest in six quarters, reinforcing expectations that policy easing will be gradual. While quarterly price momentum moderated, housing, food and leisure costs remained key drivers. In corporate news, Woodside Energy flagged a softer 2026 production outlook, overshadowing stronger-than-expected quarterly revenue, where resilient volumes helped offset weaker realised commodity prices, highlighting ongoing earnings sensitivity to both output trends and energy price dynamics.

Currency Market Summary

The South African rand firmed, supported by stronger precious metals prices and positioning ahead of domestic central bank data expected to shed light on the economic outlook. Globally, the US dollar remained under pressure, hovering near multi-year lows as markets reacted to political commentary perceived as tolerant of currency weakness. Broad dollar softness lifted major peers including the yen, euro and sterling, reinforcing favourable conditions for emerging-market currencies. Speculation around potential policy coordination to stabilise the yen has added to volatility, keeping foreign-exchange markets sensitive to both official signals and shifting risk sentiment.

Commodity Market Summary

Oil markets traded unevenly as weather-related supply disruptions in the US and lingering outages in Kazakhstan tightened near-term fundamentals, even as some export infrastructure normalised. A winter storm temporarily curtailed a meaningful share of US output and constrained Gulf Coast flows, while recovery at the Tengiz field remains gradual. OPEC+ is expected to maintain its pause on production increases, reinforcing a cautious supply backdrop. Inventory signals were mixed across crude and products. Meanwhile, gold extended its rally to fresh record highs, reflecting persistent investor demand for defensive assets amid macroeconomic and geopolitical uncertainty.

Anheuser-Busch InBev SA (ANH) -0.54%

AB InBev reported continued execution of its October 2025 share buy-back programme, repurchasing 726,020 shares between 19 and 23 January 2026 at an average price of €58.90, for total consideration of €42.8 million. Since inception in November, the brewer has acquired 8.58 million shares for €469.4 million, representing 0.42% of shares outstanding. The programme, executed via an independent intermediary, signals ongoing balance-sheet confidence and disciplined capital allocation, supporting shareholder returns alongside the group’s geographically diversified earnings base and resilient global beer portfolio.

AVI Limited (AVI) -0.76%

AVI reported 4.9% revenue growth for the six months to December 2025, supported by volume gains and pricing across Food & Beverage, I&J and Footwear, offsetting weaker Personal Care and flat Fashion Brands. Gross margin expansion, driven by improved fishing performance at I&J and disciplined cost control, lifted operating profit and margins. Headline earnings per share are expected to rise 10.5%–12.5% to 450.3–458.4 cents, with earnings growth supported by stable finance costs and restructuring benefits, underscoring resilient execution in a constrained consumer environment.

Lewis Group Limited (LEW) +1.95%

Lewis Group reported 11.1% revenue growth for the nine months to December 2025, driven by a 9.1% rise in credit sales and 16.2% growth in higher-margin ancillary and insurance income. Merchandise sales increased 7.1%, with comparable store growth of 4.3%, supported by robust Black Friday demand. Credit penetration rose to 69.4% of sales, while collections remained resilient at 78.3%. Debtor costs increased on book growth and consumer strain, but momentum in credit-driven revenue underpinned solid top-line performance ahead of year-end results.

Libstar Holdings Limited (LBR) -0.43%

Libstar issued a further cautionary announcement, advising shareholders to continue exercising caution when trading in its securities pending additional updates on previously disclosed corporate matters. The notice follows earlier cautionary statements, most recently in December 2025, indicating that discussions or transactions under consideration remain unresolved and could still have a material effect on the company’s share price. The board confirmed responsibility for the accuracy of the information disclosed. Ongoing cautionary status signals potential strategic or corporate activity that may influence valuation once clarified.

UnitedHealth Group Inc. (UNH) -19.61%

UnitedHealth warned that annual revenue will decline for the first time in decades after a sharply lower-than-expected 2027 Medicare Advantage reimbursement proposal, prompting a near-20% share price fall as earnings expectations reset. The government’s proposed 0.09% rate rise fell well short of market assumptions, intensifying pressure on managed-care margins and recovery prospects. Management flagged benefit reductions and portfolio rationalisation to offset funding constraints, while reaffirming a medium-term earnings rebound. Guidance implies softer near-term revenue but improving profitability through repricing and cost control. Elevated medical loss ratios remain a headwind, with operational streamlining and automation central to restoring sustainable margin expansion.

Boeing Company (BA) -1.56%

Boeing returned to fourth-quarter profitability, primarily driven by the $10.6 billion sale of Jeppesen, alongside higher 737 MAX and 787 production and improved deliveries. However, underlying performance remained pressured, with larger-than-expected losses in commercial aircraft and defence, plus a further charge on the KC-46 tanker programme. Revenue rose sharply year on year and free cash flow turned positive in the quarter, although full-year cash burn persisted. Management reaffirmed plans to lift narrowbody and widebody output and guided to positive free cash flow this year, signalling gradual operational stabilisation despite certification risks and ongoing programme execution challenges.

LVMH Moët Hennessy Louis Vuitton SE (MC) +0.22%

LVMH reported fourth-quarter sales modestly ahead of expectations, signalling early stabilisation in global luxury demand. Like-for-like revenue rose 1%, supported by improving trends in Asia and resilient growth in watches and jewellery, while core fashion and leather goods declined slightly. Management flagged a cautious outlook as currency headwinds, softer US tourist spending in Europe, elevated gold prices and trade frictions weighed on margins, contributing to a decline in annual operating profit. The group continues to invest selectively in flagship stores in China to capture a nascent recovery, while maintaining tight cost control amid an uneven sector rebound.

Prefer to read the full report offline? Click here to download the full report.