UniCredit CEO says Europe can defy challenges and avoid recession
According to Andrea Orcel, CEO of Italian bank UniCredit, the latest data shows that the euro zone can face challenges and avoid a recession.
“Our view was a slight recession for this year, but if we look at all the indicators we’ve seen since then, we’re probably seeing upside risk, so we’re looking at something that won’t even be a recession,” Orcel told CNBC. World Economic Forum held in Davos, Switzerland.
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– Elliot Smith
Stocks in motion: Just Eat Takeaway up 15%, ASMI up 8%
Just Eat Takeout Shares rose 15% in early trading Wednesday after the Dutch food delivery company announced second-half earnings and promised to prioritize profitability over forward growth.
Citizen semiconductor company ASMI It rose more than 8% after beating expectations for fourth-quarter earnings, supported by improved supply chain conditions.
UK inflation rate fell for second month in December
Annual inflation in the UK fell once again in December to 10.5%, slightly below analyst expectations.
It marked the second month of decline after the rate dropped to 10.7% from a 41-year high in November.
The UK’s Office for National Statistics said the largest downstream contribution to change “comes from transport (especially motor fuels), clothing and footwear, leisure and culture, with rising prices in restaurants and hotels and food and soft drinks being the largest of the upside contributions, which partially offsets it. “
CNBC Pro: Morgan Stanley says cheaper EVs are coming – and names global stocks that will benefit
According to Morgan Stanley, as electric cars become more and more popular, a new manufacturing technique is gaining attention that could make them more affordable.
The Wall Street bank said some automakers are outsourcing the process, which could benefit three of Asia’s leading parts suppliers.
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— Ganesh Rao
Oil prices rise as optimism about China reopening rises and demand picks up
Oil prices are bolstered by China’s reopening optimism and fuel demand, as OPEC forecasts Chinese oil demand to be on a bounce.
Brent crude futures rose 0.85% to $86.65 a barrel, while US West Texas Intermediate futures rose 0.91% to $80.91 a barrel.
OPEC’s monthly oil report states, “China’s oil demand is on track to recover as the country’s zero-COVID measures have been eased recently.”
He added that China’s first-quarter oil demand will recover from a year-on-year decline of 0.3 million barrels per day in the fourth quarter of 2022 to a growth of 0.2 million barrels per day on an annual basis.
– Lee Ying Shan
CNBC Pro: Thinking of returning to Big Tech? This investor is especially wary of 2 stocks
Bank of America thinks recession started later
A recession probably won’t begin until late 2023, as consumer spending is stronger than expected and the Federal Reserve intensifies rate hikes, according to Bank of America.
“Given the resilience of consumer spending due to strong labor markets, excess savings, falling energy prices and easier financial conditions, we are delaying the timing of our outlook for a moderate recession in the U.S. economy by about a quarter,” the firm said. a customer note. “However, we think headwinds will push consumers to cut spending and raise the savings rate as the year progresses.”
That puts the recession into the second quarter, caused by an investment-driven slowdown seeping into consumer spending.
After the Fed increased the benchmark borrowing rate by 4.25 points in 2022, it is expected to cut interest rates by increasing it by 0.25 points in February. This is expected to be followed by additional quarter point increases in March and May.
The firm said the rate cuts likely won’t come until 2024.
European markets: Here are the opening talks
European markets are heading for a mixed opening Wednesday as investors remain uncertain about the economic outlook, which was at the top of the agenda at the World Economic Forum in Davos this week.
of England FTSE 100 The index is expected to open at 7,832, down 12 points. DAX 15,203, an increase of 31 points, France CAC 7,085 and Italy, up 19 points FTSE MIB It rose 37 points at 25,982, according to IG data.
CNBC will speak at the World Economic Forum on Wednesday with a number of delegates, including the CEOs of Unicredit, Infosys, Nokia, Aramco and Credit Suisse, as well as the finance ministers of Greece and Poland, and the foreign minister of Saudi Arabia. Follow our news here.
— Holly Elyatt