Wednesday, December 6, 2023

European markets lower as investors weigh economic outlook

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UK retail investors seem slightly more confident, analyst says

Emma Wall, head of investment analysis and research at Hargreaves Lansdown, discusses the U.K. stock market ahead of the spring budget.

Dutch government presses ahead with semiconductor export restrictions

The Dutch government is pressing ahead with export restrictions on “advanced” semiconductor manufacturing equipment following political pressure from the United States.

The small European nation of the Netherlands is home to ASML, one of the world’s top manufacturers of machines that make semiconductors, and has now become embroiled in tensions between the United States and China.

“Given the technological developments and the geopolitical context, the [Dutch] government has come to the conclusion that the existing export control framework for specific equipment used for the manufacture of semiconductors needs to be expanded, in the interests of national and international security,” the country’s Foreign Trade Minister Liesje Schreinemacher said in a letter to parliament Wednesday.

The full story can be found here.

Fashion house Hugo Boss warns of sales slowdown

Krisztian Bocsi | Bloomberg | Getty Images

Luxury fashion house Hugo Boss on Thursday said it expects sales to slow to “a mid single-digit percentage rate” this year amid “ongoing macroeconomic and geopolitical uncertainties.”

Sales jumped by 27% to top 3 billion euros (£2.67 billion) for the first time, coming in at 3.65 billion euros for 2022.

The group expects its operating profit to rise by 5-12% in 2023, compared with the 47% jump seen in 2022. Hugo Boss sees capital expenditure reaching between 200 million euros and 250 million euros in 2023, versus 191 million euros last year.

Daniel Grieder, who assumed leadership of the company in June 2021, has led a rebranding of the fashion house that now focuses its Hugo and Boss collections on the Millennial and Gen-Z client base, respectively. The company launched its first-ever line of non-fungible tokens in October.

Ruxandra Iordache

Stocks on the move: Dassault up 10%, LEG Immobilien down 10%

Shares of Dassault Aviation were up 9.9% in early trade after the French company posted positive annual results.

Dassault’s adjusted net income was up almost 20% from the previous year, from 693 million euros ($731 million) to 830 million.

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Chart to show Dassault Aviation’s share price.

The company expects lower sales overall in 2023 as the aviation industry continues to be affected by supply chain issues.

LEG Immobilien fell to the bottom of the blue-chip index in early trade after shares dropped 9.8% on news the company would be suspending its dividend.

The German property company made the announcement as it released its full-year results.

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Graph to show LEG Immobilien shares.

The dividend money will instead be used to strengthen the company’s balance sheet, the company said.

— Hannah Ward-Glenton

European equity markets open lower

The pan-European Stoxx index was down 0.2% in early trade with most sectors and major bourses trading in negative territory.

Mining stocks made the biggest losses with a drop of 1.1%, while food and beverages led modest gains, up 0.2%.

— Hannah Ward-Glenton

Credit Suisse to delay its 2022 annual report after a ‘late call’ from the SEC

Credit Suisse on Thursday announced that it will delay the publication of its 2022 annual report.

Stefan Wermuth | Bloomberg | Getty Images

Credit Suisse on Thursday announced that it will delay the publication of its 2022 annual report after a late call from the U.S. Securities and Exchange Commission on Wednesday night.

The report was scheduled for publication on Thursday morning, but the embattled Swiss lender said it had received a call related to SEC comments about the “technical assessment of previously disclosed revisions to the consolidated cash flow statements in the years ended December 31, 2020, and 2019, as well as related controls.”

“Management believes it is prudent to briefly delay the publication of its accounts in order to understand more thoroughly the comments received. We confirm the 2022 financial results as previously released on February 9, 2023, are not impacted by the above,” Credit Suisse said.

Credit Suisse shares closed Wednesday’s trade at around 2.68 Swiss francs per share, down 3.22% since the start of the year, and are expected to fall further at market open on Thursday.

Read the full story here.

— Elliot Smith

CNBC Pro: Bonds yields are soaring. But this strategist says she’s still a fan of these ‘compelling’ stocks

Higher bond yields are usually bad news for stock investors. But that’s not the case for these stocks, given their innovative business models, strategist Amy Kong says.

“We continue to be constructive on stocks relative to bonds and cash but recognize risks have escalated,” Kong, who is chief investment officer at CI Barrett Private Wealth, told CNBC’s “Street Signs Asia” on Wednesday.

Pro subscribers can read more here.

— Zavier Ong

China’s consumer inflation eases in February

China’s consumer price index for February came in at 1% year on year, coming off from an annual increase of 2.1% in January.

The figure is lower than Reuters’ forecast of a 1.9% increase. Prices of food, alcohol and tobacco increased by 2.1% year on year.

China’s producer price index for February declined 1.4% compared to a year ago, deepening a contraction of 0.8% in January.

— Lee Ying Shan

CNBC Pro: Investors share strategies to beat interest rate fears — including one that trumped the 60/40 model

Major cryptos drop 2% following Silvergate shutdown

Major cryptocurrencies bitcoin and ether sank in early Asia trade after the central lender to the crypto industry, Silvergate Capital, said it will shutdown its operations.

“In light of recent industry and regulatory developments, Silvergate believes that an orderly wind down of Bank operations and a voluntary liquidation of the Bank is the best path forward,” the company said in a statement. Bankrupt crypto exchange FTX was a major Silvergate customer.

Bitcoin was down 2.31% to trade at $21,711.8 while Ether fell 2.15% to $1,532.98 according to CoinDesk data.

— Lee Ying Shan

European markets: Here are the opening calls

European markets are heading for a lower open on Thursday as investors gauge the regional and global economic outlook.

The U.K.’s FTSE 100 index is expected to open 24 points lower at 7,909, Germany’s DAX 27 points lower at 15,623, France’s CAC down 14 points at 7,316 and Italy’s FTSE MIB down 2 points at 27,902, according to data from IG.

Earnings come from Aviva, Domino’s Pizza, Hugo Boss and Deutsche Post.

— Holly Ellyatt

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