Global Markets Overview:
- Chinese Stocks: Remained an outlier, as absence of convincing stimulus and economic data kept investors away.
- Oil Prices: Fell on worries about China’s demand.
- Japanese Shares: Rose due to a rally in chip-industry stocks and softer core inflation data.
- European Equities: Gained, supported by financial stocks. However, the benchmark index faced a weekly decline after hawkish remarks from ECB policymakers.
- UK Markets: The FTSE 100 experienced gains, while European stocks closed the week lower. The dip in European stocks was attributed to disappointing UK retail sales data for December. Additionally, investors expressed concerns about an elevated risk of recession, contributing to the overall market downturn.
- Canadian Stock Index: Rose due to gains in gold prices, driven by a weaker U.S. dollar.
- U.S. Markets: Advanced with gains in chip and megacap stocks. Investors awaited corporate U.S. earnings reports.
Corporate News:
- Citigroup Layoffs: CEO Jane Fraser held a conference call to discuss the bank’s overhaul, eliminating more leadership roles.
- Japan’s Core Inflation: Stayed above the central bank’s 2% target but slowed for a second straight month.
- U.S. Government Funding: The U.S. House of Representatives approved a stopgap bill to fund the federal government through early March, averting a partial government shutdown.
- LVMH: Michael Burke appointed Chairman and CEO of LVMH Fashion Group, overseeing the luxury goods group’s fashion labels.
- Airbus: Expects to double the total value of parts sourced from India to $1.5 billion in the coming years.
- Bayer AG: Likely to hold off on presenting break-up plans, focusing on internal reorganization for now.
Corporate Moves:
- Deutsche Bank: Hired Dino Siason as Chief Country Officer and Head of Corporate Bank for its Philippines division.
Company-Specific News:
- Spirit Airlines and JetBlue Airways: Spirit Airlines seeks to convince JetBlue to appeal a decision by a federal judge to block their tie-up.
- Macy’s: To cut 2,350 jobs and close five stores as part of a streamlining effort.
- J.B. Hunt Transport Services Inc: Missed Wall Street estimates for fourth-quarter profit due to weakened freight demand.
- PPG Industries Inc: Beat Wall Street estimates for fourth-quarter profit, benefiting from increased sales of vehicles and strength in the aerospace segment.
- SLB (Schlumberger): Beat analysts’ estimates for quarterly profit as resilient offshore and overseas drilling activity buoyed demand for oilfield services and equipment.
- Travelers Cos: Fourth-quarter profit more than doubled, driven by stronger underwriting, higher investment returns, and lower catastrophe losses.
Industry News:
- Aerospace and Aviation: Boeing expects no meaningful delays in plane deliveries to India despite scrutiny of its 737 jets production program. An Atlas Air Boeing 747-8 cargo plane made an emergency landing in Miami after an engine malfunction.
- Banking: Citizens Financial Group and US Bancorp raised a total of $4.75 billion selling bonds, indicating confidence in regional banks.
- Automotive: Cummins, Daimler Trucks & Buses, and PACCAR selected Marshall County, Mississippi, as the site for advanced battery cell manufacturing.
Legal and Regulatory:
- Amazon and iRobot: EU antitrust regulator planning to block Amazon’s $1.4 billion buyout of iRobot.
- Apple: The European Commission seeks feedback on concessions offered by Apple to settle EU antitrust charges.
- Starbucks: U.S. Supreme Court case involving Starbucks’ firing of union supporters could impact the powers of the federal agency enforcing workers’ rights.
Financial Reports:
- JPMorgan Chase & Co: CEO Jamie Dimon’s compensation for 2023 climbed about 4.3% to $36 million.
- KKR & Co Inc: Emerged as the largest shareholder of Medical Saigon Group, one of Vietnam’s biggest eye hospital chains.
Retail:
- Macy’s: Cutting jobs and closing stores as part of a strategy to meet changing consumer needs.
Cybersecurity:
- VF Corp: Experienced a cyber incident, leading to a breach of personal data of about 35.5 million consumers.
Unionization Efforts:
- Wells Fargo: Employees at a small bank branch in Atwater, California, voted against forming a union, the first Wells site to reject unionization efforts.
This summary provides an overview of the global markets, corporate news, company-specific developments, legal and regulatory updates, financial reports, and other relevant information.
Top Analyst Ratings
- Albemarle Corp (ALB):
- Berenberg lowers the target price to $130 from $135.
- Reason: Anticipates a reduction in capital expenditure, causing a delay in meaningful projects.
- Atlassian Corp (TEAM):
- TD Cowen raises the target price to $210 from $180.
- Reason: Expects increased data center migration activity to drive demand.
- Humana Inc (HUM):
- Stephens cuts the target price to $550 from $600.
- Reason: Refers to the lowered outlook for membership growth.
- Roku Inc (ROKU):
- Seaport Research Partners upgrades the rating to neutral from sell.
- Reason: Cites a better inventory position and a strong demand profile.
- Vertex Pharmaceuticals Inc (VRTX):
- Piper Sandler raises the target price to $450 from $400.
- Reason: Forecasts increased revenue from new drugs in the pipeline.
- AGF Management Ltd (AGF.B):
- CIBC raises the target price to C$9 from C$8.25.
- Reason: Points to the company’s resilient sales performance compared to peers.
- Blackline Safety Corp (BLN):
- Canaccord Genuity raises the target price to C$5 from C$4.
- Reason: Expects continued strong organic growth.
- Mullen Group Ltd (MTL):
- CIBC raises the target price to C$16.50 from C$16.
- Reason: Expects higher demand for specialized industrial services and upsides from recent acquisition deals.
- Propel Holdings Inc:
- Canaccord Genuity raises the target price to C$18 from C$12.
- Reason: Predicts robust loan book growth in 2024.
- Richelieu Hardware Ltd (RCH):
- National Bank of Canada downgrades the rating to sector perform from outperform.
- Reason: Expects a decline in renovation spending in 2024.
