European markets close slightly higher as investors wait for Fed

European markets close slightly higher as investors wait for Fed bonds

3 hours ago

Eurozone consumer confidence rose in February

Eurozone consumer confidence rose in February, according to a flash estimate released by the European Commission. Confidence rose 1.7 points to -19.0 compared to January.

The estimate was in line with Portal analysts’ forecasts.

Although consumer confidence has now improved for four consecutive months, it remains well below its long-term average, according to the Commission.

– Hannah Ward-Glenton

6 hours ago

Telecom Italia shares fall as government network offer fails to appear

Telecom Italia shares tumbled 2.2% at midday after an alleged government-backed bid for some of its key assets failed to materialize over the weekend.

Officials told Portal that the Italian state lender was still trying to secure government backing to make a bid for rival US fund KKR alongside Australian fund Macquarie.

Two sources told Portal that KKR has valued Telecom Italia’s fixed line and submarine cable business at 20 billion euros ($21.3 billion).

The struggling company, whose profits have plummeted due to increased competition, plans to sell assets to reduce debt and revitalize business.

See grafic…

Telecom Italia share price.

7 hours ago

Cybersecurity company Darktrace hires EY to review financial processes

Cybersecurity firm Darktrace said Monday it hired accounting firm EY to review its “key financial processes and controls” to allay investor fears after a short seller accused the company of rigging its accounts.

“The Board of Directors fully believes in the robustness of Darktrace’s financial processes and controls. As a sign of that confidence, we have commissioned this independent audit by E&Y,” Chief Executive Officer Geoffrey Hurst said in a statement. “We look forward to the outcome of this review.”

EY will report to Darktrace’s Audit and Risk Committee Chair, Paul Harrison, Darktrace said.

Read the whole story here.

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Darktrace stock price.

8 hours ago

Ericsson cuts 1,400 jobs in Sweden

Mobile telecommunications equipment maker Ericsson plans to cut 1,400 jobs in Sweden, in line with a previously announced cost-cutting strategy.

“Our intention is to manage the downsizing through a voluntary program,” a company spokesman told CNBC in an emailed statement, adding that the company had finalized negotiations on the downsizing with Swedish unions. “Managers will be communicating to their staff in the coming days how each unit is being impacted.”

The company employs 14,500 people in its research, development, sales, production and administration departments.

“The cost savings cover various areas such as the reduction of consultants, streamlined processes, reduced facilities,” said the spokesman.

The layoffs come as Ericsson seeks to cut costs by 9 billion Swedish kronor ($869 million) by the end of this year, 70% of which will be cost of goods sold and 30% SG&A. According to the company’s fourth quarter earnings presentation, the company expects to start seeing the fruits of this initiative in the second quarter.

Tech titans like Microsoft, Google and Amazon have announced a series of substantial layoffs in recent weeks as recession fears threaten to hurt consumer demand.

Ericsson shares are down 0.28% as of 11am London time.

– Ruxandra Iordache

9 hours ago

The construction rate in the euro zone fell in December; Germany down 8%

In December, construction output fell by 2.5% in the euro area and by 2% in the European Union compared to the previous month.

Figures released by Eurostat on Monday revealed the declines, which followed a 0.1% fall in the euro zone and a 0.1% rise in the EU in November.

The country breakdown showed that the biggest drop was in Germany, down 8% on the month, followed by Austria, down 7.6%, and Poland, down 3.8%.

Higher borrowing costs and continued input cost inflation have weighed on the sector, although broader forecasts for the eurozone economy have brightened and many now expect the bloc to avoid a recession.

– Jennie Reid

9 hours ago

The Fed Will Cut Rates Aggressively When It Sees Inflation Drivers Fall And Boost Technology And Bonds: Atomos

Haig Bathgate, head of investments at Atomos, says growth stocks offer a great opportunity — but if you get it wrong, “you become empty.”

9 hours ago

Two-thirds of Britons cut back on essentials because of the cost of living

More than two-thirds of British adults are cutting back on non-essential spending amid cost pressures, figures released on Monday showed.

A survey by the Office of National Statistics found that 94% of people said their cost of living is higher than it was a year ago. When asked how they react, 69% say they spend less on non-essentials and use 60% less gas and electricity in their homes.

The ONS said 55% of renters could not afford an unexpected expense of £850 ($1,022), versus 12% of direct homeowners; while adults aged 25 to 34 are the most likely to experience some form of financial vulnerability, borrowing 34% more or using more credit than a year ago.

The pace of UK inflation has slowed but is still above 10%.

– Jennie Reid

10 hours ago

The likelihood of a US recession this year is “very low,” says the strategist

Bob Parker, senior advisor at the International Capital Markets Association, says he “wouldn’t be at all surprised if we kept seeing more upward revisions to US growth.”

10 hours ago

Stocks move: Faurecia rises, DS Smith falls

European stock movements were muted in early Monday trading.

French auto parts maker Faurecia was the top performer, up 4.7% after announcing on Sunday it would sell its SAS cockpit module division for 540 million euros ($577.5 million). to concentrate on its “core activities”.

At the bottom of the Stoxx index, British packaging company DS Smith fell 3.5%.

– Jennie Reid

11 hours ago

European markets open higher

European markets were cautiously higher in early trade with the Stoxx 600 trading 0.25% higher and most sectors in the green.

Mining stocks rose 1% and utilities 0.7%, while household goods fell 0.3%.

France’s CAC 40 and Germany’s DAX posted modest gains, while the FTSE was flat in the previous session.

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Stoxx 600 index.

12 hours ago

The European markets should open higher

European markets were on course for a higher opening Monday, suggesting last week’s bullish momentum is back on track.

The FTSE 100 was on track to open 26 points higher at 8,022, IG data showed, after closing above the 8,000 mark for the first time on Thursday.

France’s CAC 40 rose 29.5 points to 7,374, Italy’s MIB rose 62.5 points to 27,911.5 and Germany’s DAX rose 59 points to 15,535.9.

– Jennie Reid

13 hours ago

Goldman names 2 global stocks to play the “Clean Hydrogen Revolution” and gives one 50% upside

According to investment bank Goldman Sachs, the clean hydrogen boom is picking up speed.

“The clean hydrogen revolution continues to accelerate,” analysts at the bank said in a Feb. 13 statement. “We have taken this into account in our hydrogen projections and have almost tripled our baseline scenario to 2030 compared to our initial estimates from last year (February 4, 2022).”

The bank pointed to some factors driving clean hydrogen, including positive regulation gaining momentum with the US Inflation Reduction Act (IRA) at the forefront and new initiatives to create a global marine market (hydrogen can be bought in liquid form from transported by ship).

Pro subscribers can read more here.

— Wheat Tan

14 hours ago

Unsure about the market rally? Strategist selects 3 stocks to remain “defensively offensive.”

Stock markets appear to have turned the tide after a dismal 2022.

But with the path of rate hikes still uncertain and a potential recession still a possibility, market watchers are having a hard time deciding whether this is another bear market rally or the start of a new bull market.

“There are essentially two stories in the market today,” Rahul Ghosh, a portfolio specialist in equities at T. Rowe Price, told CNBC’s Street Signs Asia on Thursday.

“The optimist [one] is the story of disinflation… The slightly more negative [one] is the story of sustained inflation, which then affects either the path of rate hikes or the duration of rate hikes.”

In this environment, Ghosh said, investors should try to be “almost defensively offensive.”

Pro subscribers can read more here.

– Zavier Ong