So far, we have a mixed bag. Bank of America reported a drop in quarterly net income to $3.1 billion, while JPMorgan posted lower fourth-quarter earnings, down to $9.31 billion, due to provisions of nearly $3 billion for a Federal Deposit Insurance Corporation (FDIC) fund.

Wells Fargo’s fourth-quarter net income jumped to 3.45 billion dollars thanks to lower costs. Meanwhile, Blackrock announced the acquisition of asset manager Global Infrastructure Partners (GIP) for $12.5 billion, and reported an 8% rise in fourth-quarter adjusted earnings.

Western markets were down yesterday, with the exception of the Dow Jones and Nasdaq, which held their own after a rather curious session that saw December's US inflation figures exceed expectations, without provoking the reaction most of us expected. This calls for a few explanations.

The data showed a reacceleration of inflation (it was expected) slightly higher than economists had sensed (it was unexpected, therefore). In a logical world, the statistic should have buried investors' hopes that the Fed would start cutting rates in March, as they had been hoping for several weeks. Instead, the bet for a March rate cut slightly strengthened, rising from 62% a few days ago to 71% this morning, although it dipped right after the release of the data. This should be seen in the context of underlying inflation (excluding food and energy), which contracted slightly. A little less than expected, but that was enough to keep investors happy. They didn't even listen to Cleveland Fed President Loretta Mester, who ruled out a rate cut in March, explaining that the central bank still has work to do. Mester is classified in the hawkish camp, so her speech was deemed neutral by the market, which expected nothing less from her. December's inflation was therefore perceived as a slightly positive event for the easing of monetary policy, which can also be seen in the yield on the US 10-year, which fell back below 4%. A bit odd, but the market is always right.

New inflation data was published today, this time US producer prices. They improved by 0.1% on a monthly basis in December, in line with expectations. On an annual basis, they grew slower than expected, by 1.0%, while 1.3% was anticipated.

Another recent inflation figure comes from China, where prices continued to contract in December (-0.3% year-on-year). At the same time, the country's producer prices fell by a further 2.7%. This data is still not compatible with an acute economic recovery. The Chinese patient will have to wait and see. However, exports and imports showed a slight improvement, slightly better than expected at the end of the year. But this is still not enough to put a smile back on the faces of local indices, which are dragging slightly lower this morning.

Apart from these statistics, the main macroeconomic news of the day is the strengthening of oil after joint strikes by the United States and the United Kingdom in Yemen, to weaken Houthi piracy. The attacks were carried out directly on Yemeni territory, largely controlled by the Houthis, in particular on military bases, according to news agency reports. These raids have ratcheted up geopolitical tension in the Middle East. Saudi Arabia took note and called for restraint, while Iran and the Houthis strongly condemned the strikes. Classic. The aim is to put an end to attacks on transport ships in the Red Sea, which are disrupting world trade.

On the Asia-Pacific markets, the craze for Japanese stocks remains intact, with the Nikkei 225 ending the session up 1.5%, while the appeal of the Chinese markets is, how can I put it, close to nil. South Korea decided to break negative records, posting its 8th consecutive session of declines this morning. The KOSPI only gained on the January 2 session in 2024. Australia is losing a little ground, while India is firmly bullish. European leading indicators are up.

Economic highlights of the day:

US producer prices are the main indicator today. The full agenda is here. 

The dollar is up 0.3% to EUR 0.9134 and GBP 0.7852. The ounce of gold remains firm at USD 2048. Oil rallies, with North Sea Brent at USD 79.37 a barrel and US light crude WTI at USD 74.15. The yield on 10-year US debt fell to 3.98%. Bitcoin is trading at USD 45,600.

In corporate news:

  • Delta Air Lines has cut its profit forecast for the current financial year, citing supply chain problems and macroeconomic uncertainties. The share price fell by 5.7% in pre-market trading.
  • Boeing, Alaska Airlines - Six of the airline's passengers, whose door came off one of the planes in mid-flight, have filed a lawsuit against the American aircraft manufacturer over the incident involving the 737 MAX 9, the Axios news site reported on Friday.
  • Tesla has lowered the prices of some of its models sold in China and will suspend most car production at its Berlin plant from January 29 to February 11, due in particular to tensions in the Red Sea, which are causing a disruption in component supplies. The stock lost 3.2% before the opening.
  • Apple, Alphabet and Qualcomm - EU antitrust chief Margrethe Vestager said she had met with the CEOs of the three groups to discuss regulation and compliance with competition policy.
  • Alphabet - On Wednesday, the Chilean government announced a partnership with the group to build the first fiber optic submarine cable between South America and Asia-Pacific.
  • UnitedHealth is down 1% in premarket trading due to a higher-than-expected rise in medical costs in the fourth quarter.
  • Resmed - On Thursday, the US Food and Drug Administration (FDA) classified the recall procedure for certain respiratory masks manufactured by the group as very serious, as their use could lead to serious injury or death.
  • Walt Disney- Pixar, a subsidiary of the group, is expected to lay off 20% of its workforce this year, according to TechCrunch.
  • AT&T and Verizon - The U.S. Environmental Protection Agency (EPA) announced on Thursday that it intends to hold a meeting this month with the two groups to continue to closely examine the impact of lead-containing telecommunications cables.
  • Docusign - Bain Capital and Hellman & Friedman are vying to acquire the online signature services provider, which has a market capitalization of around $12.5 billion, according to sources close to the matter.
  • McKesson - The drug distributor is considering selling Canadian pharmacy chain Rexall, The Globe and Mail reported on Thursday. Rexall Health was valued at around $2.24 billion when it was acquired by McKesson in 2016.

Analyst recommendations:

  • Airtel Africa : JP Morgan upgrades to neutral with a target price of GBP 1.30.
  • Bridgepoint Group : Jefferies maintains buy and raises the target price from GBX 250 to GBX 310.
  • Builders Firstsource : RBC Capital maintains outperform and raises the target price from USD 152 to USD 186.
  • Bunzl : Morgan Stanley upgrades to equal weight with a price target raised from GBX 2700 to GBX 3030.
  • Ceres Power Holdings : RBC Capital downgrades to underperform with a price target reduced from GBX 600 to GBX 150.
  • Cf Industries Holdings : Barclays upgrades to equal weight with a target price of USD 85.
  • Crowdstrike Holdings : Stifel maintains buy and raises the target price from USD 240 to USD 315.
  • Dr Horton : RBC Capital maintains underperform and raises the target price from USD 116 to USD 142.
  • Ferrexpo : Barclays maintains equal weight and reduces the target price from 1.90 to GBP 1.20.
  • First Quantum Minerals : Barclays maintains underweight and reduces the target price from 17 to CAD 12.
  • International Flavors & Fragrances : Jefferies upgrades to buy with a target price raised from USD 73 to USD 112.
  • Ivanhoe Mines : Canaccord Genuity maintains buy and raises the target price from CAD 13 to CAD 16.
  • Itm Power : RBC Capital maintains outperform and reduces the target price from GBX 250 to GBX 140.
  • Johnson Controls International : RBC Capital downgrades to underperform with a price target reduced from USD 54 to USD 50.
  • Live Nation Entertainment : ROTH MKM upgrades to buy with a price target raised from USD 92 to USD 114.
  • Marvell Technology Group : Citigroup maintains buy and raises the target price from USD 61 to USD 75.
  • Netflix : Oppenheimer maintains outperform and raises the target price from USD 475 to USD 600.
  • Pultegroup : RBC Capital maintains sector perform and raises the target price from USD 81 to USD 103.
  • Regeneron Pharmaceuticals : RBC Capital upgrades to outperform with a price target raised from USD 884 to USD 1076.
  • Rentokil Initial : Morgan Stanley downgrades to equal weight with a price target reduced from GBX 670 to GBX 540.
  • Snowflake : Barclays downgrades to equal weight with a target price of USD 198.
  • Teradyne : Baird maintains outperform and raises the target price from USD 97 to USD 118.
  • Vulcan Materials Company : RBC Capital downgrades to sector perform with a price target raised from USD 235 to USD 236.
  • Wpp : AlphaValue/Baader Europe upgrades to buy with a price target raised from GBX 969 to GBX 987.