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Prime Minister Viktor Orban says Hungary must avoid recession next year

Hungarian Prime Minister Viktor Orban said on Wednesday that the country must avoid recession next year and bring its inflation to single digits by the end of 2023.

According to Reuters, the head of state said in a briefing that Hungary is likely to face an energy bill of 17 billion to 20 billion euros ($18 billion to $21 billion) next year. And he added that his government would be able to raise money to cover this cost.

Orban said he would not need to approach the International Monetary Fund for additional financing.

Hungary’s economy is facing a recession and currently has the highest central bank interest rate in Europe at 23.1%. Annual inflation is expected to increase between 26% and 27% in the coming months, as reported by Reuters.

– Hannah Ward-Glenton

UK retail sales fall flat in December

British retailers reported a year-on-year increase in sales in December, but expect purchases to fall again in 2023, according to a study by the Confederation of British Industry.

Retailers and a Reuters poll of economists had predicted that demand would see a year-on-year decline this month due to the cost of living crisis in the UK.

The CBI trade index rose to +11 in December from -19 in November, well above the -21 expected by dealers. Forecasts suggest that January will see the retail balance return to -17.

– Hannah Ward-Glenton

Corporate debt and good quality gold are where you want to be next year, the analyst says.

Corporate debt and good quality gold are where you want to be next year, the analyst says

Howell also said the U.S. Federal Reserve may turn to liquidity before “Squawk Box Europe” on interest rates on Wednesday.

Stocks on the move: Uniper rises 4.7% as EU clears state aid

Shares in energy giant Uniper were up 4.7 percent at 10:30 a.m. London time, after shareholders on Monday approved a bailout deal offered by the German government.

The European Commission cleared the plan on Tuesday. The move has already cost 50 billion euros ($53 billion) and will contribute 34.5 billion euros ($36.60 billion) in cash injections by 2024, Reuters reported.

The company had warned that it faced collapse if no deal was reached and that shareholders would be left with nothing.

As Germany’s largest importer of Russian gas, Uniper has been destabilized by rising market prices and a sharp cut in deliveries this year.

Among several bailout conditions, the company must divest its 84 percent stake in Russian business Unipro, its German district heating arm, and parts of its North American power business, all by 2026.

“The stabilization of Uniper is complete,” said CEO Klaus-Dieter Maubach. “We will do everything we can to find the best owners for the properties and businesses that are being sold.”

Germany should also have an exit strategy by the end of next year and try to reduce its share from 25% to one share by the end of 2028.

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Despite the uptick in recent news, Uniper’s share price remains down 90% year-to-date.

Sportswear brands profit after Nike results

Shares of European sportswear brands made gains after Nike beat its latest earnings estimates.

Puma topped the pan-European Stoxx with gains of 7.4%, followed by JD Sports and Adidas, which rose 7% and 6.6% respectively.

Shares of Nike rose more than 9% in after-hours trading in the United States after the activewear maker posted stronger-than-expected revenue and profit.

– Hannah Ward-Glenton

CNBC Pro: Fund manager says recession ‘imminent’ – and names cheap stocks to play it

Market watchers increasingly fear a recession in sight and fund manager Steven Glass is no exception.

Against this backdrop, he says he focuses on companies with earnings visibility that trade at attractive valuations.

His picks include a Big Tech name that he says is “very cheap” with “huge margin potential.”

Pro subscribers can read more here.

– Zavier Ong

Expect a tougher environment ahead, says Atlantic Equities

Atlantic Equities analysts predict a tougher outlook for global consumers in 2023.

“Inflation may have peaked on a core basis but input costs are still high and companies will expect to see higher prices if not in some cases,” analyst Edward Lewis said on Tuesday. “This may become more difficult as elasticity levels begin to normalize with US retailers starting to pull back on price inflation, compared to where European peers have been all year.”

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He highlighted Coca-Cola and Pepsi as some of his favorite consumer picks, citing “category strength, continued investment and strong execution supporting high growth.”

– Tanaya Macheel

The stock market has lost 11.7 trillion dollars so far this year

It’s been a tough year for stocks, which are currently in the market and are down year-to-date.

From the market’s annual high on Jan. 3 through this morning, U.S. stocks lost $11.7 trillion in market value, according to Bespoke Group data.

“The maximum drawdown was $13.6 trillion on 9/30, so we’ve seen market capitalization increase by just under $2 trillion since then,” analysts wrote Tuesday. “In dollar terms, this drop has been more severe than anything investors have ever experienced. That’s pretty deflationary if you ask us!”

Of the $11.7 trillion, more than $5 trillion in losses come from just five companies — Apple, Microsoft, Amazon, Alphabet, Meta and Tesla.

– Carmen Reinicke

European Markets: Here are the opening calls

European markets headed for a higher open Wednesday, reversing a negative trend in the previous session.

British ones FTSE 100 The index is expected to rise by 23 points to 7,389 in Germany DAX 99 points higher 13,969, France CAC up 34 points in 6,478 and Italy FTSE MIB 137 points at 23,830, according to IG data.

There are no significant earnings or announcements.

– Holly Elliott

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