FirstFT: Meta returns to growth

Meta reported yesterday a return to sales growth after three quarters of decline, sending its shares up 12% in aftermarket trading.

Revenue for the first three months of 2023 rose 3% from a year ago to $28.6 billion, beating analysts’ expectations of a slight decline, the social media company said in its latest results.

Additionally, it forecast current-quarter revenue of between $29.5 billion and $32 billion, above analyst expectations of $29.46 billion.

The owner of Facebook, WhatsApp and Instagram said he was busy building new AI-powered features, including “visual creation tools” and “AI agents”, as well as custom features for advertisers.

Despite the focus on AI, Meta CEO Mark Zuckerberg reiterated his commitment to the Metaverse.

He insisted that “the narrative” that the company was moving away from the vision was false.

“I just want to say up front, that’s not accurate,” he said.

Amazon is the latest Big Tech company to report results today. Here’s what else I’ll be looking at:

• Economic data : The Commerce Department is expected to confirm that the US economy slowed in the first quarter.

• Results: Pharmaceutical companies Eli Lilly, Merck and Bristol Myers Squibb report results today, as do Southwest Airlines, Caterpillar and Honeywell.

• Sudan: The ceasefire limited to 72 hours between rival military groups in Sudan ends at midnight local time Today.

Five other top stories

1. Exclusive: Johnson & Johnson’s Kenvue has been hit with claims that its talcum powder can cause cancer, days before it aims to complete the largest initial public offering in 18 months. Kenvue, which began its IPO round this week, has been named in at least seven talc lawsuits. Read the full story.

2. The House of Representatives yesterday narrowly approved House Speaker Kevin McCarthy’s bill to raise the debt ceiling. The Limit, Save, Grow Act included a long list of Republican policy priorities to roll back some of Joe Biden’s promises such as student loan debt forgiveness and is almost certain to fail in the Senate. Learn more about what this means for the debt ceiling impasse.

3. Microsoft yesterday pledged to appeal UK regulators’ decision to block its blockbuster $75 billion acquisition by Activision. Shares in Activision, creator of the Call of Duty gaming franchise, fell 11% on the news. Learn more about what the decision means for Microsoft’s gaming ambitions.

4. First Republic shares fell another 30% yesterday, taking its losses for the week to 60% as potential bidders held back from stepping in and bailing out the San Francisco-based lender. Regulators are monitoring the situation closely in the hope that a private sector solution can be found, people familiar with the company said. Read the latest information on efforts to save the lender.

5. Leftist Colombian President Gustavo Petro overthrew moderate Finance Minister José Antonio Ocampo after the collapse of his governing coalition amid disputes over sweeping reform plans. Ocampo will be replaced by Ricardo Bonilla, who served under Petro when he was mayor of Bogotá.

The big read

LVMH became Europe’s first $500 billion company this week and the only one to be ranked among the top 10 global companies. His rise testifies to the surprising growth and resilience of the luxury sectorwhich has thrived through financial crises, a pandemic, geopolitical turmoil and runaway inflation.

We also read. . .

• Disney vs. DeSantis: The media company sued the Florida governor and other officials, saying the state violated his constitutional rights on his position on the “Don’t Say Gay” law.

• Selling cigarettes to North Korea: US officials revealed an “elaborate scheme” by British American Tobacco to sell products to North Korea.

• Cryptocurrency: Crypto illegal activity logging is not a bug — the technology was designed to evade the rules governing the financial system, writes Jemima Kelly.

Card of the day

Since becoming Governor of the Bank of Japan this month, Kazuo Ueda has carefully signaled political continuity, but few investors take his words at face value. Any change in policy would have huge implications for the bond market and the central bank’s massive asset purchase program.

Take a break from the news

King Charles III has often been described as stiff and clumsy. But that obscured the fact that he’s an exceptionally good dresser. As a wiry, fit young man in his polo kit, Charles was, whisper it, even a little hot, writes Robert Armstrong.

Additional Contributions by Tee Zhuo And Emily Goldberg