Fri, Jan 12 2024 11:43 AM EST
Europe stocks close higher
European stocks closed higher Friday, with the Stoxx 600 gaining 0.77%.
France’s CAC 40 and Germany’s DAX were up by 1.05% and 0.95%, respectively. The U.K.’s FTSE 100 shook off some of the week’s losses to climb 0.64%.
See Chart…
Stoxx 600 index.
Fri, Jan 12 2024 10:42 AM EST
Volvo Cars pauses production in Belgium due to Red Sea attacks
This photograph taken on August 29, 2023, shows a view of the production line during a visit of the Dutch Prime Minister to the Volvo Car Academy and the Volvo Car Gent production site, in Gent.
Jonas Roosens | AFP | Getty Images
Volvo Cars, which is majority-owned by China’s Geely, will next week pause output at its plant in Gent in Belgium for three days due to delays caused by the security situation in the Red Sea, the company said on Friday.
A delivery of gear boxes has been delayed, a spokesperson for the Sweden-based auto maker said, the second company after Tesla to disclose an interruption to production because of attacks on vessels in the Red Sea.
Car deliveries, production targets and its other European plant in Gothenburg, Sweden, were not affected by the pause, the spokesperson said.
The attacks by Iranian-backed Houthi militants, in solidarity with Palestinian Islamist group Hamas in its fight against Israel in Gaza, have disrupted one of the world’s most important shipping routes, forcing container vessels to travel via southern Africa and avoid the Suez Canal.
That adds about 10 days and $1 million fuel costs to a journey from Asia to Europe.
-Reuters
Fri, Jan 12 2024 10:39 AM EST
Beer market isolated from supply chain woes, CEO says
Budweiser beer in the brewery section at a Walmart Supercenter on March 02, 2023 in Austin, Texas.
Brandon Bell | Getty Images
The beer industry should prove resilient through looming supply chain challenges that look set to impact some markets, the chief executive of Budweiser owner AB InBev
said Friday.
Beer has a “characteristic as a category that is incredible, which is beer is local,” Michel Doukeris told CNBC’s Arabile Gumede.
Read the full story here.
Fri, Jan 12 2024 10:29 AM EST
Dimon cautions that inflation could be ‘stickier’ and rates higher
JPMorgan Chase CEO Jamie Dimon on Friday warned about the longer-term trend for inflation and market expectations for interest rates.
Dimon noted that U.S. economic growth is being fueled by “large amounts of government deficit spending and past stimulus.”
“There is also an ongoing need for increased spending due to the green economy, the restructuring of global supply chains, higher military spending and rising healthcare costs,” he said in a statement issued with the bank’s fourth-quarter earnings release. “This may lead inflation to be stickier and rates to be higher than markets expect.”
In addition, the head of the largest U.S. bank by assets criticized new global rules for the industry known as “Basel Endgame” and said said JPMorgan is taking a “cautious” approach in 2024 due to an array of potential trouble signs such as wars in Ukraine and Middle East and monetary tightening from the Federal Reserve.
—Jeff Cox
Fri, Jan 12 2024 9:45 AM EST
U.S. stocks open slightly higher on Friday
Fri, Jan 12 2024 6:17 AM EST
Oil prices jump 4% after U.S., Britain strike Iran-backed Houthis
Fri, Jan 12 2024 3:15 AM EST
Stocks on the move: Burberry down 12% as luxury stocks fall
Pedestrians walk past a Burberry Group Plc store, left, in the Causeway Bay shopping district of Hong Kong.
Xaume Olleros | Bloomberg | Getty Images
British luxury brand Burberry plunged to the bottom of the Stoxx 600, down 12%, after issuing a profit warning in response to slowing demand.
The share price was briefly on track for its biggest one day loss since 2012. The announcement dragged down other luxury lines including Kering, LVMH and Christian Dior.
The stock rebounded slightly after the market open to trade down 7% by 8:30 a.m. London time.
— Karen Gilchrist
Fri, Jan 12 2024 2:12 AM EST
UK economy grows 0.3% in November
The U.K. economy returned to growth in November, with gross domestic product expanding by 0.3%, fresh data from the Office for National Statistics showed Friday.
That’s slightly stronger than the 0.2% growth which economists expected and follows a 0.3% contraction in October.
The uptick was primarily driven by the services sector, which rose by 0.4% during the month, and was the biggest contributor to economic growth.
However, GDP shrank 0.2% in the three months from September to November, more than the 0.1% predicted, the data showed.
— Karen Gilchrist
Thu, Jan 11 2024 7:31 PM EST
CNBC Pro: TSMC and more: Goldman Sachs loves these Asian tech stocks, giving one 37% upside
Many investors have been bullish on technology stocks over the past few months, and Goldman Sachs is no exception.
The investment bank highlighted opportunities in the Asian tech hardware industry, citing “focal points” for 2024, such as cyclical recovery, artificial intelligence and the impact of geopolitical conditions, including changes in the semiconductor supply chain.
“While we expect a very modest cyclical recovery as a whole, we continue to look for opportunities among individual stocks,” Goldman Sachs’ analysts, led by Daiki Takayama, wrote in the note, naming buy-rated names, including four conviction list stocks to play the theme.
The bank’s conviction list comprises its top buy-rated stock ideas that are expected to beat the market.
— Amala Balakrishner
Thu, Jan 11 2024 7:31 PM EST
CNBC Pro: These European stocks are likely to outperform once rate cuts begin, BofA says
Investors are eagerly looking forward to rate cuts this year — the U.S. Federal Reserve signaled at least three, which would end an aggressive interest rate-hiking campaign for the last couple of years.
The question is when the first of the rate cuts will come.
BofA created a screen of which global companies might outperform as rates fall, and have “not yet rallied as strongly” as the average historical performance following the initial cut of the cycles.
It also screened for companies under scenarios such as whether the Fed cuts at a faster or slower pace than the European Central Bank — and vice versa.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Fri, Jan 12 2024 2:08 AM EST
European markets: Here are the opening calls
European markets are set to open in positive territory Thursday.
The U.K.’s FTSE 100 index is expected to open 25 points higher at 7,673, Germany’s DAX up 92 points at 16,783, France’s CAC up 51 points at 7,470 and Italy’s FTSE MIB up 164 points at 30,696, according to data from IG.
— Karen Gilchrist
