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3 hours ago

Consumer confidence in the eurozone rose in February

Eurozone consumer confidence rose in February, according to a preliminary estimate by the European Commission. Confidence rose 1.7 points from January to -19.0.

The estimate was in line with analysts’ forecasts from Reuters.

Although consumer confidence has improved for four months in a row, it remains well below its long-term average, according to the Commission.

—Hannah Ward Glenton

6 hours ago

Shares of Telecom Italia are falling as the government’s bid for the power grid fails to appear

Shares of Telecom Italia fell 2.2% in the afternoon after a rumor that a government-sponsored bid for some of its key assets failed to materialize over the weekend.

Officials told Reuters the Italian government borrower was still trying to get government backing to join Australian fund Macquarie in a bid for rival US fund KKR.

Two sources told Reuters that KKR has valued Telecom Italia’s fixed network and submarine cable unit at 20 billion euros ($21.3 billion).

The beleaguered company, which has seen its revenues plummet amid increased competition, is looking to sell assets to reduce debt and revitalize the company.

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Share Telecom Italia.

7 hours ago

Cybersecurity firm Darktrace hires EY to review financial processes

Cybersecurity firm Darktrace said Monday that the accounting firm has appointed EY to review its “key financial processes and controls” in an effort to allay investor fears after a short seller accused the company of manipulating its accounts.

“The board fully believes in the robustness of Darktrace’s financial processes and controls. As a sign of that confidence, we have commissioned this independent third-party review from E&Y,” Geoffrey Hurst, chairman of the board, said in a statement. “We look forward to the outcome of this assessment.”

EY will report to the chairman of Darktrace’s audit and risk committee, Paul Harrison, according to Darktrace.

Read the full story here.

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Darktrace stock price.

8 hours ago

Ericsson is cutting 1,400 jobs in Sweden

Mobile telecommunications equipment maker Ericsson plans to cut 1,400 jobs in Sweden, in line with a previously announced cost-cutting strategy.

“It is our intention to handle the staff cuts through a voluntary program,” a company spokesperson told CNBC in an emailed statement, adding that the company has finalized negotiations on staff cuts with Swedish unions. “Managers will be sharing with their employees how each unit is affected in the coming days.”

The company employs 14,500 people in research, development, sales, production and administration.

“The cost savings relate to several areas, such as reducing consultants, streamlining processes, reducing facilities,” the spokesperson said.

The layoffs come as Ericsson aims to reduce costs by SEK 9 billion ($869 million) by the end of this year, of which 70% will be cost of goods sold and 30% will be in selling, general and administrative expenses. It expects to see the benefits of this initiative starting in the second quarter, according to the company’s fourth quarter presentation.

Tech giants such as Microsoft, Google and Amazon have announced a spate of substantial layoffs in recent weeks as recession fears threaten to bite consumer demand.

Ericsson shares fell 0.28% at 11am London time.

Ruxandra Iordache

8 hours ago

The construction rate in the Eurozone fell in December; Germany 8% lower

Production in the construction sector fell by 2.5% in December in the euro area and by 2% in the European Union on a monthly basis.

Figures published by Eurostat on Monday showed the declines, following a 0.1% fall in the eurozone and a 0.1% rise in the EU in November.

The country breakdown showed that the largest decline was in Germany, down 8% on the month, followed by Austria, down 7.6% and Poland, down 3.8%.

Higher borrowing costs and continued input cost inflation have weighed on the sector, even as overall forecasts for the Eurozone economy have improved, with many now predicting that the bloc will avoid a recession.

—Jenni Reid

9 hours ago

The Fed will aggressively cut rates if inflation factors fall, boosting technology and bonds: Atomos

Haig Bathgate, head of investments at Atomos, says there’s a big opportunity in growth stocks, but if you’re wrong, you’ll run out of steam.

9 hours ago

Two-thirds of Britons are cutting back on non-essentials because of the cost of living

More than two-thirds of adults in the UK are cutting spending on non-essentials in the face of cost pressures, figures released on Monday showed.

A survey by the Office of National Statistics found that 94% of people said their cost of living is higher than it was a year ago. When asked how they respond to this, 69% say they spend less on non-essential things and 60% use less gas and electricity at home.

The ONS said 55% of renters would be unable to afford an unexpected £850 ($1,022) expense, compared to 12% of outright homeowners; while adults aged 25 to 34 are most likely to experience some form of financial vulnerability, and 34% are borrowing more money or using more credit than a year ago.

The pace of UK inflation is declining, but remains above 10%.

—Jenni Reid

10 hours ago

The probability of a recession in the US this year is “very low,” says the strategist

Bob Parker, a senior adviser at the International Capital Markets Association, says he “would not be at all surprised if we gradually see more and more upward revisions to US growth.”

10 hours ago

Stocks on the move: Faurecia pushes higher, DS Smith lower

European stock movements were subdued in early Monday trading.

French auto parts maker Faurecia was the best performer, gaining 4.7% after announcing on Sunday it would sell its SAS Cockpit Modules arm for 540 million euros ($577.5 million) to focus on its’ core activities’.

At the bottom of the Stoxx index, British packaging company DS Smith fell 3.5%.

—Jenni Reid

11 hours ago

European markets open higher

European markets were cautiously higher in early trading, with the Stoxx 600 up 0.25% and most sectors in the green.

Mining stocks were up 1% and utilities were up 0.7%, while household goods were down 0.3%.

The French CAC 40 and German DAX posted slight gains, while the FTSE was flat from the previous session.

See chart…

Stoxx 600 index.

12 hours ago

European markets open higher

European markets were on track for a higher opening Monday, suggesting last week’s bullish momentum is back on track.

The FTSE 100 was on track to open 26 points higher at 8,022, data from IG showed, after closing above the 8,000 level for the first time on Thursday.

France’s CAC 40 was up 29.5 points to 7,374, Italy’s MIB was up 62.5 points to 27,911.5, and Germany’s DAX was up 59 points to 15,535.9.

—Jenni Reid

13 hours ago

Goldman Names 2 Global Stocks to Join the ‘Clean Hydrogen Revolution’, Rising 50%

According to investment bank Goldman Sachs, the rise of clean hydrogen is gaining momentum.

“The clean hydrogen revolution continues to accelerate,” analysts at the bank said in a Feb. 13 note. “We have reflected this in our hydrogen projections, nearly tripling our base case through 2030, compared to our initial estimates last year (February 4, 2022).”

The bank pointed to some factors driving clean hydrogen, including positive regulation gaining momentum with the U.S. Inflation Reduction Act (IRA) at the forefront, and new initiatives to create a global marine market (hydrogen can be shipped in liquid form by ships being transported).

Pro subscribers can read more here.

— Weizhen Tan

14 hours ago

Unsure about the market rally? Strategist picks 3 stocks to stay ‘defensive offensive’

The stock markets seem to have turned the tide after a gloomy 2022.

But with the path of rate hikes still uncertain and a potential recession still a possibility, market watchers are finding it hard to decide whether this is another bear market rally or the start of a new bull market.

“There are essentially two stories in the market today,” Rahul Ghosh, portfolio specialist, equity division at T. Rowe Price, told CNBC’s “Street Signs Asia” on Thursday.

“The optimistic one [one] is the story of disinflation … The slightly more negative [one] is the story of sticky inflation, which then has implications for either the path of rate hikes or the duration of rate hikes.”

In this environment, Ghosh said investors should be “almost defensively offensive.”

Pro subscribers can read more here.

— Zavier Ong


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