EUROPEAN MIDDAY BRIEFING – Stocks Edge Lower -2-

0


Fitch Solutions said industrial metal prices are expected to fall this year amid concerns about global economic growth from Omicron and continued weakness in China’s real estate sector.

“We expect the 2022 annual average for all metals under our coverage to be below current levels,” adding he believes base metal prices peaked in 2021.

While manufacturing-related metals like aluminum and tin may find some support from industrial demand, copper, often viewed as a broader macroeconomic health barometer, may underperform due to a poor outlook. macroeconomics, Fitch said.

While the unrest in Kazakhstan has put the spotlight on the uranium market – as it accounts for two out of every five pounds produced globally – the country is also a major supplier of some other commodities, such as ferrochrome, which are at risk. also disturbances.

“Kazakhstan is also an important player in the world ferrochrome market [12% share] via Kazchrome, which is owned by Eurasian Resources Group, ”Morgan Stanley said.

If its supplies were to be cut off, Finland’s Outokumpu could find its ferrochrome – which accounts for around 27% of that company’s EBITDA – in high demand, MS said.

   
 
 

EMEA SECURITIES

Eurozone inflation hits all-time high

The euro area’s annual inflation rate rose further in December, reaching the highest figure in history, released over thirty years ago in July 1991.

Consumer prices rose 5.0% year on year in December after rising 4.9% in November, according to a first estimate released Friday by Eurostat, the statistical agency of the European Union. Consumer prices rose 5.0% year on year in July 1991, marking the highest point in history until December 2021.

   
 
 

Eurozone economic sentiment fell to its lowest level in seven months in December

Eurozone consumer and business confidence fell in December to its lowest level since May as the rise in Covid-19 infections from the Omicron variant weighed on the service sector.

The European Commission said on Friday that its economic sentiment indicator, an aggregate measure of business and consumer confidence, fell to 115.3 in December from 117.6 in November. Economists polled by the Wall Street Journal expected the index to stand at 116.2.

   
 
 

German industrial production fell unexpectedly in November

German industrial production edged down in November, falling short of expectations for an increase as supply chain bottlenecks and rising producer prices continue to weigh on production.

Total industrial production – including production in industry, energy and construction – fell 0.2% on a month-on-month basis in November in calendar-corrected terms, the Destatis statistics office said on Friday. Economists polled by the Wall Street Journal expected an increase of 0.5%.

   
 
 

Sanofi and Exscientia join forces for drug development

Sanofi SA and Exscientia PLC will team up for the development of drugs in oncology and immunology in an agreement that could see the latter receive up to $ 5.3 billion, the two pharmaceutical companies announced on Friday.

Paris-listed Sanofi and UK-based Exscientia will collaborate to identify and select target projects, using Exscientia’s artificial intelligence-based personalized medicine platform.

   
 
 

Shell to return $ 5.5 billion from Permian sale via buybacks

Royal Dutch Shell PLC announced on Friday that it would distribute the remaining $ 5.5 billion of the proceeds from the sale of its Permian Basin assets in the United States through share buybacks.

The oil and gas major said this is in addition to regular distributions by 20-30% of operating cash flow.

   
 
 

STMicroelectronics Shares Rise After Surpassing Fourth Quarter Revenue Target

Shares of STMicroelectronics NV rose after the company said a dynamic market helped it perform better than expected in the fourth quarter, pushing its revenue above the upper bound of its forecast.

At GMT 0822, shares of the European chipmaker were trading up 3.9% to EUR 44.5.

   
 
 

Aston Martin warns about 2021 results

Aston Martin Lagonda Global Holdings PLC on Friday warned that profits for 2021 will be lower than expected after the company shipped fewer Valkyrie sports cars than expected in the fourth quarter of the year.

The British luxury car maker said adjusted profit before interest, taxes, depreciation and amortization – which excludes one-off and other one-off items – is expected to be around £ 15million ($ 20.3million) lower. after the company only sold 10 units of its luxury sports car, less than expected.

   
 
 

German exports grew at a slower pace than imports in November

German exports increased in November, but at a slower pace than imports, reducing the trade surplus, German statistics office Destatis said on Friday.

Exports rose 1.7% on the month in adjusted terms. Imports rose 3.3% on the month, Destatis said. Figures take into account seasonal fluctuations and calendar effects.

   
 
 

Danske Bank reorganizes its business activities into 3 business units

Danske Bank AS said on Friday it was reorganizing its business activities into three business units as part of its continued transformation, and making “solid progress” towards the bank’s 2023 ambitions.

The Copenhagen-based bank has announced that it will split its personal and business clientele unit into two units by May 1, headed by Christian Bornfeld and Johanna Norberg respectively.

   
 
 

Getlink’s passenger traffic increased 10% in December

Getlink SE said on Friday that December passenger traffic increased from the previous year as there were fewer coronavirus restrictions in place for part of the month.

The French operator of the Channel Tunnel between the UK and France reported a 10% increase in the number of passenger vehicles last month, to 95,575. The increase was mainly explained “by conditions of travel less restrictive than in 2020 in the first half of December, before the return of significant restrictions on cross-Channel trips, “said the company.

   
 
 

Kazakhstani leader orders security forces to fire without warning

Kazakh President Kassym-Jomart Tokayev said he ordered the police and army to shoot without warning as the country’s security forces roamed the streets of Almaty and other towns in the search for protesters after days of unrest sparked by rising fuel prices.

He said his government had largely restored order and told a meeting of security chiefs on Friday that what he called a counterterrorism operation would continue “until the militants are completely liquidated,” which , according to him, still used weapons. “The police and the army have been ordered to shoot terrorists to kill them without warning,” he said, following the arrival of Russian troops to support his government.

   
 
 

Turmoil in Kazakhstan pushes uranium and oil prices up

Instability in Kazakhstan, the world’s largest uranium producer, threatens to curb production and raise prices as nuclear fuel supplies tighten.

Dozens of people died Thursday when authorities took action against protesters after days of unrest and the arrival of a Russian-led military alliance to quell the unrest.

   
 
 
   
 
 

WORLD NEWS

December jobs report set to post record annual gain

U.S. job growth for 2021 is set to hit an annual record, and the economy is poised to create jobs this year despite temporary disruptions from the Omicron variant surge, according to economists.

Economists polled by the Wall Street Journal estimate that hiring strengthened in December, with employers creating 422,000 jobs, more than double the 210,000 created in November. Such wage bill gains would leave the US economy about 6.5 million more jobs than at the end of 2020, more than in any record year, but 3.5 million jobs below pre-pandemic levels.

   
 
 

Investors Prepare to Slow Sales of Corporate Bonds

Investors expect a pandemic U.S. corporate borrowing boom to continue to cool in 2022.

Analysts from banks such as Citigroup, Bank of America and Deutsche Bank predict that US companies will issue around $ 1.3 trillion or $ 1.4 trillion of investment grade bonds this year, including debt sold by financial institutions. That would almost match last year’s $ 1.46 trillion, while still marking a drop from 2020’s record high of $ 1.86 trillion, according to Refintiv.

   
 
 

New information reignites questions about transactions from Fed policymakers

Federal Reserve Vice Chairman Richard Clarida has disclosed additional sales of shares in broad-based equity funds, attracting further scrutiny of the financial transactions he conducted at the start of the coronavirus pandemic.

Last year, Mr Clarida said that three financial investment transactions he executed on February 27, 2020 were part of a pre-planned portfolio rebalancing that took place before he had any conversations about the Fed’s upcoming policy actions.

   
 
 

Unable to get Covid-19 tests, Americans continue, go to work, fly

Stephanie Chen works in the Orange County, Calif., Office every day, taking her 5-year-old son to school, going to church and going about her routine for nine days, while wondering if she is positive for Covid- 19.

When Ms. Chen learned that her cousin’s entire family had tested positive for the virus after a Christmas reunion she attended with them in Orange County, pharmacies were exhausted for rapid testing. The lines exceeded two hours at a local test site. A Rite Aid website said no appointments were available within 50 miles of her home for at least two weeks.

   
 
 

CDC relaxes isolation and quarantine guidelines for schools

The Centers for Disease Control and Prevention updated their Covid-19 quarantine and isolation guidelines for K-12 schools on Thursday, bringing them into line with less stringent recommendations for the general public announced last week.

(MORE FOLLOWING) Dow Jones Newswires

January 07, 2022 06:44 ET (11:44 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.


Share.

About Author

Comments are closed.