Fed’s quarter-point rate hike reaction

Luxury car Ferrari beats earnings expectations

Italian luxury car maker Ferrari It reported 16% adjusted core earnings growth for 2022, with next year expected to be “even stronger.”

The company said its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached 1.77 billion euros ($1.95 billion) last year, setting guidance of 2.13-2.18 billion euros for 2023. has done

Ferrari reported fourth-quarter EBITDA of 469 million euros, up 18 percent year-on-year, beating analysts’ expectations of 449 million euros, according to a Reuters poll.

Car deliveries increased by 19% to 13,221 units in 2022, boosted by deliveries of the Ferrari Portofino M and the SF90 family, alongside the 296 GTB and 812 Competizione models that were in the growth phase.

A Ferrari NV SF90 hybrid car on the opening day of the Paris Motor Show in Paris, France, Monday, Oct. 17, 2022.

Nathan Lane | Bloomberg | Getty Images

Ferrari CEO Benedetto Vigna said: “These figures provide an even stronger basis for 2023, due to the continuous increase in our products worldwide.”

The company’s shares were up 2.63% in New York by 12:46 a.m. London time.

Ruksandra Iordache

Bank of England raises rates by 50 basis points, now sees recession ‘much slower’ than feared

People walk in front of the Bank of England in the financial district of the City of London, in London, United Kingdom, on January 26, 2023.

Henry Nicholls | Reuters

The Bank of England raised interest rates by 50 basis points on Thursday, reversing some of its earlier economic forecasts.

The Monetary Policy Committee voted 7 to 2 in favor of a second straight halving rate hike, taking the bank’s key rate to 4%, but indicated in its decision statement that a smaller increase of 25 basis points could be on the cards in future meetings. . The two dissenting members voted to keep the rates unchanged.

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Crucially, the Bank also dropped the word “forced” from its rhetoric about continuing to raise rates as needed to curb inflation.

Britain’s FTSE 100 rose 0.5% after the announcement, extending earlier gains.

Read the full story here.

– Elliott Smith

ING’s CFO says the rate of net interest income will increase

ING's CFO says the rate of net interest income will increase

Thanat Phutrakul, ING’s chief financial officer, discusses the better-than-expected fourth-quarter net profit.

Stocks on the move: Telecom Italia down 11%, Electrolux down 8.5%

Bloomberg | Bloomberg | Getty Images

Telecom Italia European shares fell in early trade, rising 11%, after reports that US private equity firm KKR & Co Inc was preparing to make a non-binding offer for the fixed-line network.

Reuters reports that the network provides key support to the struggling company’s massive debt load.

Meanwhile, Electrolux Down 8.5%, after warning it will see lower sales this year and could be hurt by higher energy and labor costs.

— Jenny Reid

European markets rose ahead of the central bank announcements

The Stoxx 600 was 0.5% higher in Europe as investors braced for interest rate hikes from the Bank of England and the European Central Bank later today.

This is after a decline in the last three sessions. After the European close on Wednesday, the US Federal Reserve announced a smaller rate hike of 25 basis points – but gave few hints that its dovish cycle is coming to an end.

Also Read :  Data, news, stocks, WEF and earnings

Germany’s DAX was up 0.65%, France’s CAC 40 was up 0.6% and Britain’s FTSE 100 was up 0.2%.

Deutsche Bank beat profit expectations in the fourth quarter

Deutsche Bank reported its 10th consecutive quarter of growth, boosted by higher interest rates and favorable market conditions.

The German lender reported a net profit of 1.8 billion euros ($1.98 billion) in the fourth quarter, pushing its full-year net income to 5 billion euros for 2022, up 159% from last year.

That nearly doubled the consensus estimate among analysts polled by Reuters of 910.93 million euros in fourth-quarter net profit, beating forecasts of 4.29 billion euros a year earlier.

Read the full story here.

Deutsche Bank stock price

CNBC Pro: JPMorgan says Hong Kong stocks will rebound in February and lists 5 stocks

JPMorgan listed five stocks to own amid an expected rally in the broader Chinese stock market in February.

Wall Street bank strategists attributed last week’s selloff in Hong Kong-listed stocks to profit-taking by some investors.

They said the broader stock market would be “higher” this month, but turning into a “quality lag in consumption, as well as a cyclical and growth environment.”

CNBC Pro subscribers can learn more about the 5 JPMorgan stocks listed.

— Ganesh Rao

CNBC Pro: Beware of tech stocks — these cash-rich names are better bets, analysts say

Forget growth stocks like technology. Analysts recommend that investors turn to cash-strapped companies.

Also Read :  Stocks, data, earnings, WEF news

Markets rallied in January, including the Nasdaq Composite, which rose nearly 10.7% last month for its best monthly performance since July.

But analysts say companies with pricing power are a safer bet than tech, given inflation is expected to remain high this year and uncertainty surrounding whether the U.S. Federal Reserve will continue to cut interest rates. .

They listed three stocks to buy.

CNBC Pro subscribers can read more here.

– Weichen Tan

CNBC Pro: Worried About Alibaba’s Share Price Drop? Analysts have 4 alternative technology choices

Alibaba’s shares have enjoyed a strong rally this year, although a recent drop in its share price has some investors worried.

But the Wall Street favorite is far from the only game in town, with several stocks also bidding on China’s Internet sector.

Professional customers can read more information here.

– Xavier Ong

European Markets: Here are the open calls

European markets edged higher on Thursday as markets reacted favorably to the US Federal Reserve’s three-month rate hike.

United Kingdom FTSE 100 Germany’s index is expected to be 31 points higher at 7,788 DAX 101 points higher at 15,273, France CAC 35 points up 7,109 and Italy FTSE MIB 121 points at 26,870, according to IG.

On Thursday, investors in Europe will focus on the latest monetary policy decisions of the European Central Bank and the Bank of England.

It’s a busy day for earnings with reports from Shell, BT Group, Deutsche Bank, Banco Santander, ABB, Julius Baer and Roche.

— Holly Ellyatt


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