(Alliance News) - Stocks in Europe are expected to rise, as risk sentiment recovers slightly ahead of a key US inflation print.
Here is what you need to know before the European market open on Wednesday:
----------
MARKETS
----------
CAC 40: called up 36.1 points, 0.5%, at 8,085.27
DAX 40: called up 79.5 points, 0.4%, at 18,156.19
FTSE 100: called up 42.8 points, 0.5%, at 7,977.59
----------
Hang Seng: up 1.9% at 17,144.54
Nikkei 225: down 0.4% at 39,625.95
S&P/ASX 200: up 0.4% at 7,851.40
----------
DJIA: closed down slightly at 38,883.67
S&P 500: closed up 0.1% at 5,209.9
Nasdaq Composite: closed up 0.3% at 16,306.64
----------
EUR: flat at USD1.0854 (USD1.0856)
GBP: flat at USD1.2676 (USD1.2672)
USD: up at JPY151.74 (JPY151.65)
GOLD: up at USD2,351.54 per ounce (USD2,347.44)
OIL (Brent): down slightly at USD89.45 a barrel (USD89.82)
(changes since previous London equities close)
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ECONOMIC CALENDAR
----------
08:30 EDT Canada building permits
09:45 EDT Canada interest rate decision
10:00 CEST Italy retail sales
08:30 EDT US CPI
10:00 EDT US wholesale inventories
10:30 EDT US EIA crude oil stocks
14:00 EDT US FOMC meeting minutes
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TOP ECONOMIC NEWS
----------
Israel bombed targets in Gaza on Tuesday as mediators in Cairo sought progress towards a truce and hostage deal and Prime Minister Benjamin Netanyahu insisted Israeli troops would launch a ground invasion of Rafah. US Secretary of State Antony Blinken said he had no indication of an "imminent" Israeli assault on the city, the last in the Gaza Strip yet to be the target of a ground invasion and where around 1.5 million Palestinians are sheltering. Meanwhile, US President Joe Biden said Netanyahu's Gaza policy was a "mistake" and urged Israel to call for a ceasefire, in an interview aired Tuesday.
----------
The British government has concluded it can keep sending weapons to Israel, Foreign Secretary David Cameron said, rejecting pressure to suspend exports over charges of humanitarian violations in Gaza. "On Israel and international humanitarian law, and as required by the UK's robust arms export control regime, I have now reviewed the most recent advice about the situation in Gaza and Israel's conduct of their military campaign," Cameron said on a visit to Washington. "The latest assessment leaves our position on export licenses unchanged," he said.
----------
Credit ratings agency Fitch cut its outlook on China's long-term foreign-currency issuer default rating to 'negative' from 'stable', but affirmed the IDR at 'A+'. Fitch explained: "The outlook revision reflects increasing risks to China's public finance outlook as the country contends with more uncertain economic prospects amid a transition away from property-reliant growth to what the government views as a more sustainable growth model. Wide fiscal deficits and rising government debt in recent years have eroded fiscal buffers from a ratings perspective." However, Fitch explained that China's A+ IDR remains supported by its large and diversified economy, "solid" economic growth prospects compared to peers, its critical role in global goods trade, strong external finances, as well as the reserve currency status of the yuan.
----------
The US warned that it will hold China responsible if Moscow makes gains in Ukraine, after Beijing renewed pledges of cooperation during a visit by Russia's top diplomat. Kurt Campbell, the deputy secretary of state long associated with regearing US policy toward Asia, said that for the US, maintaining peace and stability in Europe is "our most important mission historically." With Moscow renewing its Ukraine offensive amid a deadlock in the US Congress on approving more weapons to Ukraine, Campbell warned that Russian territorial gains could "alter the balance of power in Europe in ways that are, frankly, unacceptable."
----------
Biden welcomed Japanese Prime Minister Fumio Kishida to the White House Tuesday, kicking off a state visit featuring a major upgrade in defense ties against a resurgent China. A gala dinner and Rose Garden press conference are on the menu for the formal part of the visit on Wednesday, in a sign of the value Washington places on an increasingly self-confident Japan/ The two leaders are expected to unveil plans to restructure the US military command in Japan – the biggest upgrade to defense cooperation since the 1960s – to make them more responsive against threats in the Asia-Pacific region.
----------
Japan's producer price inflation accelerated slightly on an annual basis in March, according to the Bank of Japan. Producer prices edged up 0.2% month-on-month in March, matching the pace of increase seen in February. The rise was led by nonferrous materials, and agriculture, forestry & fishery products. On an annual basis, producer prices rose 0.8% in March, picking up slightly from a revised figure of 0.7% in February, which was first reported as 0.6%.
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COMPANY CALENDAR
----------
Airbus SE - AGM
Costco Wholesale Corp - Trading Statement
Deutsche Telekom AG - AGM
Tesco PLC - Full Year Results
Zurich Insurance Group AG - AGM
----------
TOP COMPANY NEWS
----------
Federal aviation authorities are investigating claims by a Boeing engineer that the 787 Dreamliner suffers from assembly defects that threaten safety, US officials said. Attorneys for the whistleblower, Sam Salehpour, accuse the company of putting profit over safety – and retaliating against him after he raised concerns by "involuntarily" transferring him to the 777 program. At the 777 program, he raised more issues, for which his attorneys say he was threatened with termination. Boeing, which has been under scrutiny following recent safety problems, released a detailed defense of the aircraft, saying it is "fully confident" in the Dreamliner and denying charges it retaliated against the worker.
----------
Microsoft announced a USD2.9 billion investment over the next two years in Japan to bolster the country's push into artificial intelligence and strengthen its cyber defences in the face of threats from China and Russia. "This is Microsoft's single largest investment in its 46-year history in Japan," said Brad Smith, Vice Chair & President of Microsoft, who met Japan's PM Kishida on Tuesday. The investment includes providing "more advanced computing resources", according to Smith, including powerful graphics processing units crucial for running AI applications. Microsoft also pledged to invest in training three million Japanese workers in AI skills over the next three years, and announced the opening of its first Microsoft Research Asia lab in Tokyo that will work on AI and robotics.
----------
GM subsidiary Cruise said it plans to get its self-driving cars back on the road without human drivers after suspending robotaxi service late last year due to safety concerns. Vehicles driven by humans are out gathering mapping data in the Arizona city of Phoenix, which has been amenable to testing of autonomous cars deployed by Cruise and Google's Waymo. "Our goal is to resume driverless operations," Cruise said in a blog post. "At this stage, no autonomous systems are engaged and the vehicles will not carry public passengers." Cruise suspended all operations of driverless cars in October after California authorities halted testing of its vehicles in the state citing safety concerns following a series of accidents.
----------
Intel unveiled its latest artificial intelligence chip in a move to take market share from Nvidia. Intel said the Gaudi 3 could generate AI responses, a process called inference, faster than Nvidia's H100. It was also more power efficient and cheaper, Intel said. The H100 is one of Nvidia's most popular chips, powering AI for the likes of Microsoft and Google. Nvidia's computer systems dominate AI training in data centres and the company holds a market share position of about 80%. Intel said that the new chips would be available to customers including Dell, Hewlett Packard Enterprise and Lenovo in the second quarter of 2024.
----------
Popular video games including "World of Warcraft" will return to China this summer, US developer Blizzard and local partner NetEase said Wednesday, over a year after a contract dispute pulled them from the market leaving millions of fans bereft. "Beloved video game titles from Blizzard Entertainment that captivated millions of players in China will return to the market sequentially, beginning this summer, under a renewed publishing deal," the companies said in a statement. They added that titles including "World of Warcraft" spin-off card game "Hearthstone" and other games in the WoW and "Overwatch" franchises would also return to the country. WoW's Chinese servers went offline in January 2023, prompting a wave of mourning and anger from fans who had poured years of their lives into building up their in-game points.
----------
By Elizabeth Winter, Alliance News senior correspondent
Comments and questions to newsroom@alliancenews.com
Copyright 2024, Alliance News
GLOBAL BRIEFING: Fitch cuts China's debt outlook to negative
(Alliance News) - Stocks in Europe are expected to rise, as risk sentiment recovers slightly ahead of a key US inflation print.
Here is what you need to know before the European market open on Wednesday:
----------
MARKETS
----------
CAC 40: called up 36.1 points, 0.5%, at 8,085.27
DAX 40: called up 79.5 points, 0.4%, at 18,156.19
FTSE 100: called up 42.8 points, 0.5%, at 7,977.59
----------
Hang Seng: up 1.9% at 17,144.54
Nikkei 225: down 0.4% at 39,625.95
S&P/ASX 200: up 0.4% at 7,851.40
----------
DJIA: closed down slightly at 38,883.67
S&P 500: closed up 0.1% at 5,209.9
Nasdaq Composite: closed up 0.3% at 16,306.64
----------
EUR: flat at USD1.0854 (USD1.0856)
GBP: flat at USD1.2676 (USD1.2672)
USD: up at JPY151.74 (JPY151.65)
GOLD: up at USD2,351.54 per ounce (USD2,347.44)
OIL (Brent): down slightly at USD89.45 a barrel (USD89.82)
(changes since previous London equities close)
----------
ECONOMIC CALENDAR
----------
08:30 EDT Canada building permits
09:45 EDT Canada interest rate decision
10:00 CEST Italy retail sales
08:30 EDT US CPI
10:00 EDT US wholesale inventories
10:30 EDT US EIA crude oil stocks
14:00 EDT US FOMC meeting minutes
----------
TOP ECONOMIC NEWS
----------
Israel bombed targets in Gaza on Tuesday as mediators in Cairo sought progress towards a truce and hostage deal and Prime Minister Benjamin Netanyahu insisted Israeli troops would launch a ground invasion of Rafah. US Secretary of State Antony Blinken said he had no indication of an "imminent" Israeli assault on the city, the last in the Gaza Strip yet to be the target of a ground invasion and where around 1.5 million Palestinians are sheltering. Meanwhile, US President Joe Biden said Netanyahu's Gaza policy was a "mistake" and urged Israel to call for a ceasefire, in an interview aired Tuesday.
----------
The British government has concluded it can keep sending weapons to Israel, Foreign Secretary David Cameron said, rejecting pressure to suspend exports over charges of humanitarian violations in Gaza. "On Israel and international humanitarian law, and as required by the UK's robust arms export control regime, I have now reviewed the most recent advice about the situation in Gaza and Israel's conduct of their military campaign," Cameron said on a visit to Washington. "The latest assessment leaves our position on export licenses unchanged," he said.
----------
Credit ratings agency Fitch cut its outlook on China's long-term foreign-currency issuer default rating to 'negative' from 'stable', but affirmed the IDR at 'A+'. Fitch explained: "The outlook revision reflects increasing risks to China's public finance outlook as the country contends with more uncertain economic prospects amid a transition away from property-reliant growth to what the government views as a more sustainable growth model. Wide fiscal deficits and rising government debt in recent years have eroded fiscal buffers from a ratings perspective." However, Fitch explained that China's A+ IDR remains supported by its large and diversified economy, "solid" economic growth prospects compared to peers, its critical role in global goods trade, strong external finances, as well as the reserve currency status of the yuan.
----------
The US warned that it will hold China responsible if Moscow makes gains in Ukraine, after Beijing renewed pledges of cooperation during a visit by Russia's top diplomat. Kurt Campbell, the deputy secretary of state long associated with regearing US policy toward Asia, said that for the US, maintaining peace and stability in Europe is "our most important mission historically." With Moscow renewing its Ukraine offensive amid a deadlock in the US Congress on approving more weapons to Ukraine, Campbell warned that Russian territorial gains could "alter the balance of power in Europe in ways that are, frankly, unacceptable."
----------
Biden welcomed Japanese Prime Minister Fumio Kishida to the White House Tuesday, kicking off a state visit featuring a major upgrade in defense ties against a resurgent China. A gala dinner and Rose Garden press conference are on the menu for the formal part of the visit on Wednesday, in a sign of the value Washington places on an increasingly self-confident Japan/ The two leaders are expected to unveil plans to restructure the US military command in Japan – the biggest upgrade to defense cooperation since the 1960s – to make them more responsive against threats in the Asia-Pacific region.
----------
Japan's producer price inflation accelerated slightly on an annual basis in March, according to the Bank of Japan. Producer prices edged up 0.2% month-on-month in March, matching the pace of increase seen in February. The rise was led by nonferrous materials, and agriculture, forestry & fishery products. On an annual basis, producer prices rose 0.8% in March, picking up slightly from a revised figure of 0.7% in February, which was first reported as 0.6%.
----------
COMPANY CALENDAR
----------
Airbus SE - AGM
Costco Wholesale Corp - Trading Statement
Deutsche Telekom AG - AGM
Tesco PLC - Full Year Results
Zurich Insurance Group AG - AGM
----------
TOP COMPANY NEWS
----------
Federal aviation authorities are investigating claims by a Boeing engineer that the 787 Dreamliner suffers from assembly defects that threaten safety, US officials said. Attorneys for the whistleblower, Sam Salehpour, accuse the company of putting profit over safety – and retaliating against him after he raised concerns by "involuntarily" transferring him to the 777 program. At the 777 program, he raised more issues, for which his attorneys say he was threatened with termination. Boeing, which has been under scrutiny following recent safety problems, released a detailed defense of the aircraft, saying it is "fully confident" in the Dreamliner and denying charges it retaliated against the worker.
----------
Microsoft announced a USD2.9 billion investment over the next two years in Japan to bolster the country's push into artificial intelligence and strengthen its cyber defences in the face of threats from China and Russia. "This is Microsoft's single largest investment in its 46-year history in Japan," said Brad Smith, Vice Chair & President of Microsoft, who met Japan's PM Kishida on Tuesday. The investment includes providing "more advanced computing resources", according to Smith, including powerful graphics processing units crucial for running AI applications. Microsoft also pledged to invest in training three million Japanese workers in AI skills over the next three years, and announced the opening of its first Microsoft Research Asia lab in Tokyo that will work on AI and robotics.
----------
GM subsidiary Cruise said it plans to get its self-driving cars back on the road without human drivers after suspending robotaxi service late last year due to safety concerns. Vehicles driven by humans are out gathering mapping data in the Arizona city of Phoenix, which has been amenable to testing of autonomous cars deployed by Cruise and Google's Waymo. "Our goal is to resume driverless operations," Cruise said in a blog post. "At this stage, no autonomous systems are engaged and the vehicles will not carry public passengers." Cruise suspended all operations of driverless cars in October after California authorities halted testing of its vehicles in the state citing safety concerns following a series of accidents.
----------
Intel unveiled its latest artificial intelligence chip in a move to take market share from Nvidia. Intel said the Gaudi 3 could generate AI responses, a process called inference, faster than Nvidia's H100. It was also more power efficient and cheaper, Intel said. The H100 is one of Nvidia's most popular chips, powering AI for the likes of Microsoft and Google. Nvidia's computer systems dominate AI training in data centres and the company holds a market share position of about 80%. Intel said that the new chips would be available to customers including Dell, Hewlett Packard Enterprise and Lenovo in the second quarter of 2024.
----------
Popular video games including "World of Warcraft" will return to China this summer, US developer Blizzard and local partner NetEase said Wednesday, over a year after a contract dispute pulled them from the market leaving millions of fans bereft. "Beloved video game titles from Blizzard Entertainment that captivated millions of players in China will return to the market sequentially, beginning this summer, under a renewed publishing deal," the companies said in a statement. They added that titles including "World of Warcraft" spin-off card game "Hearthstone" and other games in the WoW and "Overwatch" franchises would also return to the country. WoW's Chinese servers went offline in January 2023, prompting a wave of mourning and anger from fans who had poured years of their lives into building up their in-game points.
----------
By Elizabeth Winter, Alliance News senior correspondent
Comments and questions to newsroom@alliancenews.com
Copyright 2024, Alliance News