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Writer's pictureSimon Charles Hooper

08/02/22 Briefing

Updated: Feb 15, 2022

The S&P 500 futures trade roughly in-line with fair value as the market struggles to find direction amid mixed corporate news.

Starting with earnings, Pfizer (PFE 51.39, -1.82, -3.4%), Take-Two Interactive (TTWO 171,00, -4.10, -2.3%), Peloton (PTON 27.89, -1.86, -6.3%), and Simon Property Group (SPG 145.60, -3.32, -2.2%) are some of the company's since yesterday's close that issued downside guidance, although plenty of companies did beat EPS estimates and issued upbeat guidance.

The real story with Peloton, though, is that the company announced co-founder CEO John Foley will be replaced by Barry McCarthy, who has held senior leadership and advisory roles with successful technology companies. Mr. Foley will become Executive Chair, starting tomorrow.

Separately, NVIDIA (NVDA 244.40, -2.88, -1.2%) confirmed it terminated its planned acquisition of Arm Holdings, losing a $1.25 billion deposit.

On the data front, investors will receive the Trade Balance report for December (Briefing.comconsensus -$79.6 billion) at 8:30 a.m. ET. Earlier, the NFIB Small Business Optimism Index for January decreased to 97.1 from 98.9 in December.

U.S. Treasury yields have edged higher amid word from Russian President Putin that diplomatic ideas can be discussed regarding Ukraine. The 2-yr yield is up three basis points to 1.32%, and the 10-yr yield is up two basis points to 1.94%. The U.S. Dollar Index is up 0.2% to 95.57. WTI crude futures have slipped below $90 per barrel ($89.48, -1.84, -2.0%).

In U.S. Corporate news:

  • Pfizer (PFE 51.39, -1.82): -3.4% after missing revenue estimates and guiding FY22 EPS and revenue below consensus. The company beat EPS estimates and reported vaccine revenue of $13.9 billion.

  • Peloton (PTON 27.89, -1.86): -6.3% after announcing a CEO change, effective tomorrow, and a cost-reduction program. Peloton Co-Founder CEO John Foley will move to Executive Chair, and Barry McCarthy will take over as CEO. The company missed top and bottom-line estimates, guided Q3 revenue below consensus, and cut its FY22 revenue guidance.

  • Take-Two Interactive (TTWO 171,00, -4.10): -2.3% after guiding fiscal Q4 EPS and net bookings below consensus. TTWO beat EPS estimates.

  • Simon Property Group (SPG 145.60, -3.32,): -2.2% after guiding FY22 FFO below consensus, overshadowing its better-than-expected results.

  • NVIDIA (NVDA 244.40, -2.88): -1.2% after confirming a termination of its planned acquisition of Arm Holdings.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Japan's Nikkei: +0.1% Hong Kong's Hang Seng: -1.0% China's Shanghai Composite: +0.7% India's Sensex: +0.3% South Korea's Kospi: +0.1% Australia's ASX All Ordinaries: +1.0%.

    • In economic data:

      • Japan's December Household Spending 0.1% m/m (expected 0.7%; last -1.2%); -0.2% yr/yr (expected 0.3%; last -1.3%). December wage income -0.2% yr/yr (last 0.8%) and December Current Account deficit JPY371 bln (expected surplus of JPY74 bln; prior JPY897 bln). January Economy Watchers Current Index 37.9 (last 57.5)

      • Australia's January NAB Business Survey 3 (last 8) and Business Confidence 3 (last -12)

      • Hong Kong's January Manufacturing PMI 48.9 (last 50.8)


  • In news:

    • Japan's trade minister said that higher subsidies for oil refiners are not being considered at this time.

    • South Korea and the U.K. are revising their free trade agreement.

    • Former Reserve Bank of Australia policymaker Edwards said that the central bank could make four rate hikes in quick succession near the end of 2022 due to an expanding economy.

    • Hong Kong's Manufacturing PMI contracted for the first time in 13 months in the January reading.



  • Major European indices trade near their flat lines while Spain's IBEX (+0.9%) outperforms. STOXX Europe 600: +0.2% Germany's DAX: -0.1% U.K.'s FTSE 100: +0.1% France's CAC 40: +0.3% Italy's FTSE MIB: +0.2% Spain's IBEX 35: +0.9%.

    • In economic data:

      • France's December trade deficit EUR11.30 bln (last deficit of EUR9.80 bln) and December Current Account deficit EUR7.10 bln (last deficit of EUR3.40 bln)

      • Italy's December Retail Sales 0.9% m/m (last -0.4%); 9.4% yr/yr (last 12.4%)

      • Spain's December Industrial Production 1.3% yr/yr (expected 4.4%; last 4.6%)


  • In news:

    • Italy is reportedly planning more fiscal assistance with high energy bills.

    • French Finance Minister Le Maire said that inflation is expected to decelerate at the end of the year while interest rates are expected to go up.

    • European Central Bank President Lagarde repeated that a rate hike will not take place until asset purchases are halted.



U.S. equity futures:

  • S&P 500 Futures: -5 @ 4,479

  • DJIA Futures: +17 @ 35,108

  • Nasdaq 100 Futures: -37 @ 14,534

Overseas:

  • Europe: DAX -0.1%, FTSE +0.1%, CAC +0.3%

  • Asia: Nikkei +0.1%, Hang Seng -1.0%, Shanghai Composite +0.7%

Commodities:

  • Crude Oil -1.71 @ 89.61

  • Nat Gas +0.067 @ 4.289

  • Gold -3.70 @ 1818.10

  • Silver -0.261 @ 22.815

  • Copper -0.0617 @ 4.4008

U.S. Summary:

  • Earnings/Guidance (Full Earnings Calendar):

    • Aecom Tech (ACM) beats by $0.12, misses on revs; raises FY22 EPS guidance

    • AGCO Corp (AGCO) beats by $1.32, beats on revs; guides FY22 EPS above consensus, revs above consensus

    • Alpha and Omega Semi (AOSL) beats by $0.16, beats on revs; guides Q3 revs above consensus

    • Amgen (AMGN) beats by $0.35, reports revs in-line

    • Aramark (ARMK) reports EPS in-line, beats on revs

    • Astec Industries (ASTE) provides Q4 guidance; revenue up 12.1% yr/yr, but gross margin down 350 bps

    • Avient (AVNT) beats by $0.03, beats on revs; guides FY22 EPS above consensus, revs above consensus

    • Axcelis Tech (ACLS) beats by $0.18, beats on revs; guides Q1 EPS, revs above consensus

    • BP (BP) beats by $0.01, beats on revs

    • Brixmor Property (BRX) reports FFO in-line, beats on revs

    • Carnival plc's (CUK) Cunard provides update on bookings for summer 2023

    • Carrier Global (CARR) beats by $0.05, beats on revs; guides FY22 EPS in-line, revs in-line

    • Cenovus Energy (CVE) reports Q4 (Dec) results

    • Centene (CNC) beats by $0.04, reports revs in-line; reaffirms FY22 EPS guidance, guides FY22 revs above consensus

    • Chegg (CHGG) beats by $0.07, beats on revs; guides Q1 revs above consensus; guides midpoint of FY22 revs above consensus

    • CNH Industrial (CNHI) beats by $0.04, beats on revs

    • Coty (COTY) beats by $0.06, misses on revs; raises FY22 EPS guidance

    • CTS Corp (CTS) beats by $0.02, beats on revs; guides FY22 EPS in-line, revs in-line

    • Danaos (DAC) beats by $1.15, beats on revs; increases quarterly dividend 50% to $0.75/share

    • DHT (DHT) beats by $0.07, beats on revs

    • DuPont (DD) beats by $0.08, beats on revs; guides Q1 EPS below consensus, revs in-line; guides FY22 EPS in-line, revs above consensus; authorizes new $1.0 bln share buyback program, raises quarterly divided by 10%

    • Edgewell Personal Care (EPC) beats by $0.01, reports revs in-line; lowers FY22 EPS below consensus

    • FirstCash (FCFS) beats by $0.41, beats on revs

    • Fiserv (FISV) beats by $0.01, reports revs in-line; guides FY22 EPS above consensus

    • Gambling.comGroup (GAMB) provides FY21 and FY22 outlook; sees FY22 revs above consensus

    • Gartner (IT) beats by $0.57, beats on revs; guides FY22 EPS below consensus, revs below consensus

    • Haemonetics (HAE) beats by $0.11, misses on revs; narrows FY22 EPS guidance

    • Harley-Davidson (HOG) beats by $0.48, beats on revs; guides FY22 revs above consensus

    • Houlihan Lokey (HLI) beats by $0.73, beats on revs

    • Incyte (INCY) misses by $0.76, beats on revs

    • Jacobs Engineering (J) misses by $0.02, misses on revs; guides FY22 EPS in-line

    • Kennametal (KMT) misses by $0.03, misses on revs; guides MarQ revs below consensus

    • Kforce (KFRC) reports EPS in-line, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY22 EPS above consensus, revs above consensus

    • Lear (LEA) beats by $0.09, beats on revs; guides FY22 revs below consensus

    • Leggett & Platt (LEG) beats by $0.04, beats on revs; guides FY22 EPS in-line, revs above consensus

    • Malibu Boats (MBUU) beats by $0.14, beats on revs; guides FY22 revs in-line

    • Masco (MAS) misses by $0.02, beats on revs; guides FY22 EPS in-line; increases quarterly dividend 19% to $0.28/share

    • Nuance Communications (NUAN) misses by $0.14

    • nVent Electric (NVT) beats by $0.02, beats on revs; guides Q1 EPS below consensus, revs above consensus; guides FY22 EPS in-line, revs above consensus

    • Peloton (PTON) misses by $0.47, misses on revs; guides Q3 revs below consensus; cuts FY22revs guidance

    • Pfizer (PFE) beats by $0.21, misses on revs, vaccine revenue of $13.9 bln; guides FY22EPS below consensus, revs below consensus

    • Piedmont Office Realty Trust (PDM) reports FFO in-line, beats on revs; guides FY22FFO in-line

    • Poly (POLY) beats by $0.07, misses on revs; guides FY22EPS in-line, revs below consensus

    • Principal Fincl (PFG) beats by $0.20; announces dividend

    • Rambus (RMBS) reports Q4 (Dec) results, misses on revs; gives Q1 segment revenue guidance

    • S&P Global (SPGI) beats by $0.03, beats on revs, expects merger with INFO will close this quarter

    • Sasol (SSL) provides H2 and 1H22outlook

    • SelectQuote (SLQT) reports Q2 (Dec) results; co faced a series of unexpected challenges in its core Senior segment

    • Simon Properties (SPG) beats by $0.20, beats on revs; guides FY22FFO below consensus

    • Simpson Manufacturing (SSD) reports Q4 (Dec) results, beats on revs

    • Sun Country Airlines (SNCY) beats by $0.08, beats on revs; guides Q1 revs below consensus

    • Take-Two (TTWO) beats by $0.62, reports net bookings in-line; guides MarQ EPS below consensus, net bookings below consensus

    • Taylor Morrison Home (TMHC) beats by $0.12, misses on revs

    • Tenet Healthcare (THC) beats by $1.21, misses on revs; guides Q1 EPS below consensus, revs below consensus; guides FY22EPS in-line, revs below consensus

    • Teradata (TDC) beats by $0.30, reports revs in-line; guides Q1 EPS above consensus; raises FY22EPS guidance above consensus

    • TFI International (TFII) beats by $0.34, beats on revs

    • Thomson Reuters (TRI) misses by $0.03, beats on revs; guides FY22revs in-line

    • Transdigm Group (TDG) misses by $0.17, misses on revs

    • Varonis Systems beats by $0.03, beats on revs; guides Q1 EPS below consensus, revs in-line; guides FY22EPS below consensus, revs above consensus

    • Virtu Financial (VIRT) beats by $0.39, beats on revs; announces dividend

    • Vishay (VSH) reports EPS in-line, beats on revs; guides Q1 revs in-line

    • Warner Music Group (WMG) reports Q1 (Dec) results, beats on revs

    • Willis Towers Watson (WTW) reports EPS in-line, misses on revs


  • General News:

    • Russian President Putin says diplomatic ideas can be discussed, but did not rule out Ukraine invasion. President Biden says Germany and US will have "united" response and Nord Stream 2 pipeline will end if Russia invades Ukraine, according to the New York Times

    • Connecticut, New Jersey, Delaware, Oregon, and California all announced that mask mandates will soon end, according to the New York Times

    • US and Japan reach deal to ease steel tariffs on imports, according to CBS News

    • AAR Corp (AIR) announces 10-year extension of component MRO agreement with International Aerospace Management Company

    • Align Tech (ALGN) settles outstanding patent litigation with 3Shape A/S

    • Alkermes (ALKS) announces positive topline results from ENLIGHTEN-early phase 3b study of LYBALVI in patients early in illness

    • AMC Entertainment (AMC) has reached lease agreements with Unibail-Rodamco-Westfield to acquire and open two high-profile locations, each located in a major market

    • Axsome Therapeutics (AXSM) provides update regarding AXS-07 program

    • Benson Hill (BHIL) announces Dean Freeman as CFO

    • Biogen (BIIB) announces commercialization and license agreement with Xbrane Biopharma for biosimilar referencing CIMZIA

    • Bowlero (BOWL) approves $200 mln share and warrant repurchase program

    • CareMax (CMAX) appoints Jose R. Rodriquez to Chair of the company's board of directors, succeeding Richard A. Barasch who resigned

    • Denbury (DEN) and Natural Resource Partners (NRP) subsidiaries enter into CO2sequestration agreement

    • Embark Technology (EMBK) and Knight-Swift (KNX) launch Truck Transfer program

    • Eneti (NETI) signs new contract award for Seajacks

    • Eni S.p.A. (E) and Milan Linate airports operator have signed an agreement to promote decarbonization initiatives in the aviation sector and accelerate the ecological transition of the two airports

    • General Dynamics (GD) awarded $229 mln US Army contract

    • Glaukos (GKOS) appoints Joseph Gilliam as COO, effective April 1

    • Guess (GES): Legion Partners Asset Management wants Guess co-founders removed from board, according to the Wall Street Journal

    • iRadimed (IRMD) approves special cash dividend of $1.00/share

    • Just Eat Takeaway.comN.V. (GRUB) has formally notified The Nasdaq of its intent to voluntarily delist its American Depositary Receipts from the Nasdaq Global Select Market

    • Karyopharm Therapeutics (KPTI): Phase 3 SIENDO study meets primary endpoint

    • Linde plc (LIN) signed a long-term agreement with BASF (BASFY) for the supply of hydrogen and steam

    • LXP Industrial Trust (LXP) initiates review of strategic alternatives

    • Melco Resorts & Entertainment (MLCO) subsidiary announces commitment for Studio City (MSC) private placement

    • Merck (MRK) and Ridgeback Biotherapeutics announce that a total of ~3.1 mln courses of molnupiravir have been provided to the U.S. government for allocation across the country

    • Meta Platforms (FB): Peter Thiel to retire from board at 2022 Annual Shareholder Meeting

    • Peloton (PTON) announces Barry McCarthy as CEO, John Foley as Exec. Chair; announces cost reduction program to help profitability, FCF

    • Petrobras (PBR) provides FPSO for Parque das Baleias Integrated Project updates

    • Phillips 66 (PSX) and H2 Energy Europe to develop retail hydrogen refueling stations across Germany, Austria and Denmark

    • Raytheon Technologies (RTX): Three senior execs, including the CFO, in the company's missiles division have departed, according to Bloomberg

    • Sangamo Therapeutics (SGMO) Announces Updated Preliminary Phase 1/2 Data Showing Tolerability and Sustained Elevated a-Gal A Enzyme Activity in Patients With Fabry Disease

    • Sempra Energy (SRE): Sempra Infrastructure announces that Phase II of its Energa Sierra Jurez wind farm in Tecate, Baja California began operations

    • Spotify (SPOT): Rumble has offered Joe Rogan $100 mln to leave his job at Spotify, according to the Wall Street Journal

    • Tilray (TLRY) announces launch of Tilray Medical portfolio

    • Triumph Group (TGI) awarded new contract with Airbus for primary thermal acoustic system on A220 aircraft

    • Twitter (TWTR): Cathie Wood sold 4 mln shares of Twitter ahead of earnings Thursday, according to Bloomberg

    • Vishay (VSH) adopts Stockholder Return Policy; expects to return at least $100 mln to stockholders in 2022

    • Vontier (VNT) announces its multi-year investment commitment to lead in the global low-carbon energy transition

    • Walt Disney (DIS) recommends shareholders reject mini-tender offer by Tutanota

    • Yum! Brands (YUM) increases quarterly divided by 14% to $0.57/share


  • M&A:

    • Apple (AAPL) has acquired startup AI Music, according to Bloomberg

    • Buenaventura SA (BVN) announces asset sales; agrees to sell Yanacocha stake for net proceeds of US$300 mln

    • Cooper (COO) signs letter of intent to acquire Cook Medical's Reproductive Health business for approx. $875 mln

    • Home Bancshares (HOMB) purchases marine loan portfolio for approx. $238 mln

    • NVIDIA (NVDA) and SoftBank Group (SFTBY) terminate NVIDIA's acquisition of Arm Limited

    • Orange (ORAN) wants to merge its Spain unit MasMovil, according to Reuters

    • Simmons First National (SFNC) receives approval from Federal Reserve Bank of St. Louis for proposed acquisition of Spirit of Texas Bank SSB

    • Velodyne Lidar (VLDR): 8-K filing shows agreement for Amazon (AMZN) to acquire up to 39.59 mln shares

    • Wheaton Precious Metals (WPM) acquires gold stream from Sabina's Goose Project


  • Syndicate:

    • Snap (SNAP) intends to offer, subject to market conditions and other factors, $1.25 bln aggregate principal amount of convertible senior notes due 2028 in a private placement

    • Vera Therapeutics (VERA) files for 4 mln share common stock offering


  • IPOs:

    • Expected to Price:

      • No IPOs expected to price.



Gapping Up/Down

  • Gapping up:

    • VLDR +40.6%, CHGG +8.3%, SSD +7.8%, TDC +6.9%, ACLS +5.9%, BOWL +5.4%, TFII +4.6%, SNCY +4%, DAC +2.7%, CNC +2.7%, MLCO +1.9%, YUM +1.3%, CUK +1.1%, ALGN +0.9%, ACM +0.9%, BIIB +0.8%, PFG +0.8%, NETI +0.6%


  • Gapping down:

    • SLQT -49.9%, EDIT -12.8%, KFRC -7.5%, EHTH-6.5%, IT -3.1%, AXSM -3%, TTWO -2.8%, GRUB-2.6%, RMBS -2.6%, SPG -2.2%, EPC -2.2%, NVDA-1.7%, FB -1.6%, RTX -1.3%, VRNS -1.2%, CVE-1.2%, ASTE -1.1%, ERIC -1%


Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

    • Grupo Aeroportuario (OMAB) upgraded to Outperform from Neutral at Bradesco BBI; tgt raised to $65


  • Downgrades:

    • Air Products (APD) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt lowered to $280

    • Annaly Capital Mgmt (NLY) downgraded to Mkt Perform from Mkt Outperform at JMP Securities

    • CME Group (CME) downgraded to Neutral from Overweight at Atlantic Equities; tgt $250

    • General Motors (GM) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $55

    • Grupo Aeroportuario del Pacifico (PAC) downgraded to Neutral from Outperform at Bradesco BBI; tgt raised to $150

    • Grupo Aeroportuario Del Sureste (ASR) downgraded to Neutral from Outperform at Bradesco BBI; tg lowered to $230

    • Hercules Capital (HTGC) downgraded to Neutral from Buy at Compass Point; tgt $18

    • Meta Platforms (FB) downgraded to Neutral from Outperform at KGI Securities; tgt $270

    • SelectQuote (SLQT) downgraded to Neutral from Buy at Citigroup; tgt lowered to $4

    • SelectQuote (SLQT) downgraded to Neutral from Outperform at Credit Suisse; tgt lowered to $4

    • SelectQuote (SLQT) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $4

    • Utz Brands (UTZ) downgraded to Perform from Outperform at Oppenheimer

    • Zimmer Biomet (ZBH) downgraded to Hold from Buy at Canaccord Genuity; tgt lowered to $125


  • Others:

    • Agree Realty (ADC) initiated with a Neutral at BofA Securities; tgt $72

    • Alight (ALTI) initiated with an Overweight at Stephens; tgt $15

    • Bilibili (BILI) initiated with an Equal Weight at Barclays; tgt $32Bilibili (BILI) initiated with an Equal Weight at Barclays; tgt $32

    • IDEXX Labs (IDXX) initiated with an Overweight at Atlantic Equities; tgt $650

    • Li Auto (LI) initiated with an Overweight at Barclays; tgt $38

    • MarketAxess (MKTX) initiated with a Neutral at Atlantic Equities; tgt $380

    • NIO (NIO) initiated with an Overweight at Barclays; tgt $34

    • NovoCure (NVCR) initiated with a Buy at Loop Capital; tgt $200

    • Trip.comGroup (TCOM) initiated with an Overweight at Barclays; tgt $33

    • XPeng (XPEV) initiated with an Overweight at Barclays; tgt $33


Upcoming Events:

  • Econ Data:

    • 08:30 ET: Trade Balance for Dec. (Briefing.comConsensus -$79.6B; Prior -$80.2B)


  • Earnings:

    • Monday (Feb 7)

      • Morning: AMG CRNC CNA ENR GTES HAS ON TSN ZBH

      • Afternoon: ACM AOSL AMGN ACLS BRX CHGG DHT KMT KFRC LEG NUAN PDM PFG RMBS SLQT SPG SSD SNCY TTWO THC TDC VRNS


  • Tuesday (Feb 8)

    • Morning: AGCO ARMK AVNT BP CARR CVE CNC CNHI COTY CTS DD EPC FISV IT HAE HOG INCY KKR LEA MBUU MAS NRZ NVT PFE POLY SPGI SYY TMHC TRI TDG VIRT VSH WMG

    • Afternoon: ATGE AIZ ATO AZTA CMG CNO CMP CRSR CCK DCPH APPS DEI DOCS EGP ENPH ESE FLT FMC GFS PEAK HIW HUBG ICHR INSP JKHY LBRT LYFT MNDT MODN NCR NEWR OMC ONTO PAYC PTON QGEN QNST SCSC SAVE STEP STE TRMB TSE UDR VVV VREX VOYA XPO YUMC


  • Wednesday (Feb 9)

    • Morning: ARCC AVYA BDC BXMT BG CCJ CGC CDW CHEF CME CRTO CVS FOXA HMC IIVI LAD MSGE NNN PAG PFGC RDWR REYN SITC TEVA TGI YUM

    • Afternoon: TWOU AEIS AFG NLY ACGL ASGN BKH CDAY CHX CPA CXW DCP DIOD ENS NVST EQT EFX EQC EEFT RE FR FLNC FWRD ULCC GFL PI IFF IRBT ITT KN RAMP LUMN MFC MAT MDU MESA MGM MC MOH MSI ORLY PEP PPC PAA RPD REXR SGEN SONO SPSC SLF TTMI TWLO TWO UBER UDMY VMEO DIS WTS ZNGA


  • Thursday (Feb 10)

    • Morning: ALNY MT AZN CAMT GOOS ECOM KO CIGI CYBR DDOG DBD DTE DUK FAF GPN GPI HRI HII INMD NSIT IPG K KIM LH LCII LECO LIN MAC MLM MCO PATK PTEN PBF BTU PCG PM PIPR PDS ROLL SSTK SON TPR TTGT TU TUFN TWTR WSO WEX ZBRA

    • Afternoon: ME AFRM AVLR BIO BL BE BHF ELY CSL CC NET COHU CFLT OFC COUR DVA DXCM EQH EXPE FRT FE FLO FRSH GDDY HUBS ILMN NSP FROG MTD MHK MNTV MPWR NWE PRO QLYS REG RSG SSNC TEX RARE UPWK VRSN VCRA WU YELP ZEN ZG


  • Friday (Feb 11)

    • Morning: AB AXL APO ARES BRKR CAE CLF D ENB ESNT FTS G GT GPRE IAA MGA COOP NBIX NWL NMRK PRLB SXT UAA WPC




Asia & Europe detail:

Asia: Nikkei +0.1%, Hang Seng -1.0%, Shanghai Composite +0.7%

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Japan's trade minister said that higher subsidies for oil refiners are not being considered at this time. South Korea and the U.K. are revising their free trade agreement. Former Reserve Bank of Australia policymaker Edwards said that the central bank could make four rate hikes in quick succession near the end of 2022 due to an expanding economy. Hong Kong's Manufacturing PMI contracted for the first time in 13 months in the January reading.

  • In economic data:

    • Japan's December Household Spending 0.1% m/m (expected 0.7%; last -1.2%); -0.2% yr/yr (expected 0.3%; last -1.3%). December wage income -0.2% yr/yr (last 0.8%) and December Current Account deficit JPY371 bln (expected surplus of JPY74 bln; prior JPY897 bln). January Economy Watchers Current Index 37.9 (last 57.5)

    • Australia's January NAB Business Survey 3 (last 8) and Business Confidence 3 (last -12)

    • Hong Kong's January Manufacturing PMI 48.9 (last 50.8)


---Equity Markets---

  • Japan's Nikkei: +0.1%

  • Hong Kong's Hang Seng: -1.0%

  • China's Shanghai Composite: +0.7%

  • India's Sensex: +0.3%

  • South Korea's Kospi: +0.1%

  • Australia's ASX All Ordinaries: +1.0%

---FX---

  • USD/JPY: +0.2% to 115.28

  • USD/CNH: +0.2% to 6.3726

  • USD/INR: +0.1% to 74.69

Europe: DAX -0.1%, FTSE +0.1%, CAC +0.3%

Major European indices trade near their flat lines while Spain's IBEX (+0.9%) outperforms. Italy is reportedly planning more fiscal assistance with high energy bills. French Finance Minister Le Maire said that inflation is expected to decelerate at the end of the year while interest rates are expected to go up. European Central Bank President Lagarde repeated that a rate hike will not take place until asset purchases are halted.

  • In economic data:

    • France's December trade deficit EUR11.30 bln (last deficit of EUR9.80 bln) and December Current Account deficit EUR7.10 bln (last deficit of EUR3.40 bln)

    • Italy's December Retail Sales 0.9% m/m (last -0.4%); 9.4% yr/yr (last 12.4%)

    • Spain's December Industrial Production 1.3% yr/yr (expected 4.4%; last 4.6%)


---Equity Markets---

  • STOXX Europe 600: +0.2%

  • Germany's DAX: -0.1%

  • U.K.'s FTSE 100: +0.1%

  • France's CAC 40: +0.3%

  • Italy's FTSE MIB: +0.2%

  • Spain's IBEX 35: +0.9%

---FX---

  • EUR/USD: -0.2% to 1.1423

  • GBP/USD: UNCH at 1.3543

  • USD/CHF: -0.1% to 0.9229


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