Euro zone GDP, Fed meeting in focus

Stocks on the move: Unicredit down 11%, Philips down 5.8%

UniCredit traded higher in afternoon trading, rising 11% following an earnings report on Tuesday.

On the other hand, German arms producer Rheinmetall fell below the benchmark, down 6.4 percent. Philips It fell 5.8 percent on news that it would cut its workforce by 13 percent.

– Karen Gilchrist

US stocks open higher

US stocks opened slightly lower on Tuesday as traders ended a strong month for equities.

The Dow Jones Industrial Average was flat in early trade, while the S&P 500 rose 0.1%. Nasdaq also increased by 0.2%.

– Karen Gilchrist

The eurozone economy posted a surprise expansion in the fourth quarter, easing fears of a recession

According to Eurostat’s preliminary data published on Tuesday, the euro area grew by 0.1 percent in the last quarter of 2022.

Energy prices cooled in the latter part of the year, bringing some relief to the broader economic performance of the eurozone.

The latest figures come after the euro zone recorded a GDP increase of 0.3% for the third quarter.

Germany was surprised by the extent of the country’s collapse. Europe’s largest economy shrank by 0.2 percent in the last quarter of 2022, with analysts now expecting Berlin to slip into recession.

– Silvia Amaro

UK retail price inflation at 16.7%

UK retail price inflation hit 16.7% in the four weeks to January 22, up 2.3% from the previous month, market research firm Kantar said Tuesday.

The figures, the highest since the company began tracking the data in 2008, show a worsening of the country’s cost-of-living crisis, which has seen shoppers switch to branded food products for own-label and discount stores. do business

Consumers are feeling the pinch from higher food prices as inflation rises.

Nathan Stirk | Getty Images News | Getty Images

“We thought inflation was coming down; the fact that it’s gone back is not big news,” Fraser McKevitt, head of retail and consumer insights at Kantar, told CNBC. Grocers are “in particular increasing their own label lines, with sales of these lines increasing steadily over the past nine months.”

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Own-label lines grew by 9.3% in the period, while discounter Aldi was the fastest-growing retailer for the fourth month in a row, ahead of Lidl.

– Karen Gilchrist

A recession in Europe and the US is still very possible, says the portfolio manager

A recession in Europe and the US is still very possible, says the portfolio manager

Data released on Tuesday showed that economic growth in France slowed to 0.1% in the fourth quarter from 0.2%, while retail sales in Germany fell sharply in December.

Joost van Leenders, senior portfolio manager at Kempen Capital Management, told CNBC that these and other indicators meant the picture going into 2023 was “not that strong” and that a recession was likely in Europe and the United States. “is still strongly on the agenda.”

– Jenny Reid

Stocks on the move: UniCredit down 7.5%, Rheinmetall down 6%

UniCredit was the best performer in early trade, rising 7.5% after the bank pledged to pay 5.25 billion euros ($5.69 billion) to shareholders following big profits.

German arms maker Rheinmetall fell 6 percent after announcing yesterday that it had won a US Army contract. General Motorsto supply 40,000 trucks worth up to 14 billion dollars.

– Jenny Reid

European markets open lower in view of GDP data, central bank meetings

Europe’s Stoxx 600 index opened 0.2% lower, extending Monday’s slide as investors prepared to boo on a fast estimate of euro zone GDP.

Figures released early Tuesday from France, the bloc’s second-largest economy, showed growth slowed from 0.2% to 0.1% in the fourth quarter of 2022. However, it was ahead of expectations.

Most sectors were in the red in early trade, led by financial services, which were down 0.8%.

However, banks gained 0.6% after UniCredit and UBS beat profit expectations.

Stoxx 600 one-week performance.

Also in the mainstream markets this week are central bank rate hike decisions from the United States on Wednesday and from the United Kingdom and the eurozone on Thursday.

– Jenny Reid

UniCredit raises payout target to 40 percent after record profit

The CEO of UniCredit says that the transformation of the bank is not done yet
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UniCredit on Tuesday pledged to return 5.25 billion euros ($5.69 billion) to investors after posting its best profit in a decade.

The bank said net profit rose to 2.46 billion euros in the three months to December, twice the average forecast of 1.10 billion euros ($1.2 billion) from analysts polled by the bank.

UniCredit said it expects its Russian business to post a net profit in 2023 broadly higher than in 2022, after it missed its profit target last year following Russia’s invasion of Ukraine.

It has not been able to extricate itself from Russia, which has 15 largest creditors.

UniCredit’s one-year share price.

Swiss bank UBS gets a boost from higher interest rates, beating expectations in the fourth quarter

UBS chief says it's been a 'very healthy year' despite macro challenges

UBS’s fourth-quarter profit beat market expectations, but the Swiss banking giant reported a drop in revenues on the back of weak consumer activity and warned of an “uncertain” year ahead.

The bank reported net income of $1.7 billion for the fourth quarter of last year, putting its full-year profit on track to reach $7.6 billion in 2022.

Looking ahead, the Swiss lender said earnings for the first quarter of 2023 were set to be “positively impacted” by consumer activity and higher interest rates, as well as by the easing of Covid-19 restrictions in Asia. “.

However, he was broadly cautious about the economic outlook, citing central bank action as a potential catalyst for market volatility.

UBS said it will buy back more shares this year.

Read the full story here.

– Silvia Amaro

European Markets: Here are the opening calls

European markets are heading into the open on Tuesday as investors focus on the next meeting of the US Federal Reserve, which starts today. The two-day meeting will conclude on Wednesday with the announcement of the central bank’s latest interest rate decision.

British ones FTSE 100 It is expected that the index will decrease by 26 points to 7758, in Germany DAX France fell 79 points to 15,052 CAC 40 points dropped to 7049 and that of Italy FTSE MIB It fell 125 points to 26,260, according to IG data.

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Earnings come from Pets at Home, UBS and Spotify, and data releases include fourth-quarter gross domestic product data in euros. German and French inflation data for January are also released.

– Holly Elliott

CNBC Pro: What one tech fund manager expects from Apple and Alphabet’s earnings this week

Tech fund manager says 'dark cloud' looms over Alphabet stock ahead of earnings

Microsoft issued a disappointing earnings forecast last week, but its stock has since risen. What does that mean for other Big Tech companies that have been reported?

Technology fund manager Jeremy Gleeson, who runs the £1.1 billion ($1.5 billion) AXA Framlington Global Technology Fund, said there was enough bad news in Microsoft’s earnings to “scare” investors into selling.

However, the fact that the stock is up more than 2% after that is an “encouraging” sign for the rest of Big Tech’s earnings, Gleeson told CNBC’s “Squawk Box Europe.”

He shared his thoughts on what to expect from Apple and Alphabet this week.

CNBC Pro subscribers can read more here.

– Ganesh Rao

CNBC Pro: Tesla shares surged 30% last week. This is where Wall Street sees it going

Last week, the electric vehicle maker’s stock rose more than 30% after announcing its earnings. So far this year, Tesla shares are up about 44%.

It follows a bleak 2022 when Tesla shares fell 35% in December and around 65% for the year.

After all this volatility, here’s where Wall Street analysts are going for the stock next:

CNBC Pro subscribers can read more here.

– Weizhen Tan

CNBC Pro: Can Chinese stocks rally more? One investment bank thinks so — and is naming its top stock picks

Chinese stocks rebounded on Monday, as China’s benchmark index broke out of the bull market in a significant range.

Bernstein analysts believe the rally needs to go further and reveal its top stocks to play it out.

Pro subscribers can read more here.

– Zavier Ong


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