Stocks, News, UK Inflation, Davos

The chairman of Siemens Energy told CNBC he was more concerned about the gloomy mood in public opinion than about Germany’s recent rise in inflation.

Joe Kaeser, former chief executive of German conglomerate Siemens, said he did not focus too much on annual headline inflation given base effects and monthly and quarterly measurements.

“I’m more worried about the atmosphere in Germany. People are depressed and everyone is asking what will happen next, what will happen to me. I hope people feel upbeat again. We need to explain that to people,” Kaeser said.

“I always say, guys, the night is always darkest before dawn. Take your chances.”

Kaeser said the German government needs to present a roadmap for energy, jobs and economic growth and move beyond current industry disputes. Meanwhile, the country needs to set an example in reducing emissions and inventing products and services for an economically viable future, he added.

Commenting on the main issue surrounding Siemens Energy’s money-losing wind power business, Kaeser said: “There’s an energy triangle that you can’t escape from, and to be honest, when the wind blows, the sky clears.”

This is about the balance between sustainability, affordability and security of supply, he said.

“If you want to be very sustainable, you have to do it at a cost. If you want to be affordable, you have to have bridging technologies like gas-fired turbines that can also use hydrogen. So we have to have more technology.” Be honest about the costs of sustainability. ”

— Jenny Reid

The chief executive of Saudi state oil giant Aramco told Reuters that disruption in the Red Sea caused by Houthi attacks could lead to tanker shortages and longer alternate routes for ships, causing shipping delays. Ta.

“In the short term tankers may be available, but in the long term it may become a problem,” Amin Nasser said in Davos, Switzerland. “We’re going to need more tankers, but will we need longer voyages?”

Citing safety concerns, some shipping companies are now completely halting or avoiding travel through the Red Sea and Suez Canal, the quickest link between Europe and the Middle East and wider Asia. The alternative route via the Cape of Good Hope would require an additional 10 days or more of sailing.

Nasser told Reuters that Aramco could avoid exposure to the Red Sea through a pipeline linking oil facilities in the east to the west coast. Saudi Arabia is the world’s largest oil exporter and was exposed to Houthi attacks on oil facilities in 2019.

— Luxandra Iordake

Dutch central bank governor Klaas Knott told CNBC that the market was “getting ahead of itself” with expectations for rate cuts and “could become self-defeating.”

The European Central Bank executive said he and other members were optimistic about inflation returning to 2%, but there were risks to that scenario.

“Underlying that forecast is an interest rate path, an assumed rate path, that includes significantly less easing than is currently built into market pricing. So there is a risk that it will become self-defeating. There is.”

Knot said the eurozone central bank was considering the overall financial situation, adding: “The more easing the market has already done, the less likely it is that we will cut interest rates.”

— Jenny Reid

UK inflation unexpectedly rose to 4% year-on-year in December due to higher prices for alcohol and tobacco.

Economists polled by Reuters had expected the annual headline CPI to fall slightly to 3.8%, following November’s 3.9% drop, which was much lower than expected.

The closely watched core CPI figure (excluding volatile food, energy, alcohol and tobacco prices) rose to 5.1% annually, higher than Reuters’ forecast of 4.9% and unchanged from November.

British Chancellor of the Exchequer Jeremy Hunt said: “Inflation will not fall in a straight line, as we have seen in the US, France and Germany, but our plan is working and we should stick to it.” said in a statement.

– Elliott Smith

2023 wasn’t a good year for the healthcare sector, but some investors are expecting a resurgence in the sector this year, highlighting biotechnology and medical technology as areas to watch.

Citi said that given demographic shifts and the benefits of artificial intelligence, the healthcare industry “seems poised to return to leadership” and that “a recovery in healthcare revenues in 2024 will drive the sector forward.” “This will be one of the main drivers of potential outperformance,” he added. . ”

CNBC Pro features stock picks and other investment tips for the sector from strategists at the bank and other countries.

Subscribers can read more here.

— Tan Weizhen

A “roller coaster year” for Europe’s technology and hardware sector in 2023 has ended on a high note, with a cyclical recovery now underway, according to Morgan Stanley.

Wall Street banks expect investors to focus on a cyclical recovery and key themes such as artificial intelligence, advanced packaging, silicon carbide and gate-all-around transistors.

Morgan Stanley analysts said these themes collectively could “drive earnings momentum this year, and particularly in the second half of 2024,” naming six stocks they are overweight.

CNBC Pro subscribers can read more here.

— Amara Balakrishna

European markets are set to open in negative territory on Wednesday.

According to IG data, the UK’s FTSE 100 index is expected to open 45 points lower at 7,507, Germany’s DAX is expected to drop 73 points to 16,482, France’s CAC is down 39 points to 7,351 and Italy’s FTSE MIB is expected to drop 137 points to open at 30,250.

In addition to the UK inflation statistics for November, new car registration numbers for the UK, Germany, France and Italy will also be announced.

— Holly Ellyatt