It came in higher than expected, with consumer prices increasing by 0.3% in December, while a 0.2% gain was expected in the Bloomberg consensus. On an annual basis, prices rose 3.4%, instead of 3.2% expected. The core CPI, which excludes volatile components such as food and energy, grew 0.3% in December, in line with expectations. However, on an annual basis, it was up 3.9%, while 3.8% was anticipated.

Wall Street didn’t react much, with futures remaining close to zero. The CME Fedwatch tool is now showing that investors give a 59% chance of a quarter-point rate cut in March, while they were 69% before the data. This means that despite higher-than-expected figures, a majority still believes that it will be the second Fed meeting of the year, on March 19/20 (there will be one on January 30/31 and none in February), that will result in the first rate cut. Yesterday, New York Fed boss John Williams declared that monetary policy was now tight enough to bring inflation back towards the Fed's target, while adding that the central bank needs more evidence of a slowdown in inflation before cutting interest rates. With the second part of the statement cancelling the first, the odds didn't move an inch after this intervention.

Yesterday, the U.S. Securities and Exchange Commission finally approved the launch of bitcoin-backed exchange-traded funds (ETFs), marking a real turning point for the world's leading cryptocurrency and probably for the industry as a whole. Whether this will mark a clean sweep of the industry or the beginning of a new era of madness is anyone's guess. Those who imagined that bitcoin would soar as soon as the announcement was made are disappointed: it is now trading at 47,000 dollars, which is a rather small increase on the 45,000 dollars before the announcement. It has to be said that, with +180% on the counter in one year, the market had largely anticipated this democratization. But, as we all know, things can happen very quickly.

In concrete terms, this means that ordinary investors authorized to buy ETFs in the United States can easily invest in bitcoin. So far, eleven products have been approved, including those submitted by the big players in the ETF world such as BlackRock or VanEck, or more specialized firms such as ARK Investments or 21Shares. The first products should start trading today, as everyone has their finger on the trigger. Time will tell whether these ETFs are seen by investors as a popular diversification class, in which case tens of billions of dollars could be invested in these products, creating a buying current in bitcoin.

The other event that will allow us to talk a little more about companies and a little less about macroeconomics and geopolitics is the launch of the earnings release season. There have been a few sparse announcements since the start of the week, but it's from tomorrow onwards that things get denser, with UnitedHealth, JPMorgan, Bank of America, Citigroup, BlackRock, Bank of New York and Delta Air Lines.

Yesterday, the three main US indices finished higher. The Nasdaq 100 lost just 0.2% in 2024, while the Dow Jones and S&P500 are already a few points in the green. In Europe, yesterday's close was very close to equilibrium, with the French CAC40 falling by -0.01%, for example, while the German DAX soared by 0.01%. The Swiss SMI continued its upward trend, driven by its healthcare stocks. Zurich has risen in six of the last seven sessions.

Today, in the Asia-Pacific region, Japan confirmed its status as the most buoyant market at the start of the year with another sharp rise, as the Nikkei 225 gained 1.8%, after climbing 2% the previous day and 1.1% on Tuesday. China is poised to end its recent downtrend with a 0.5% rebound on the mainland and 1.7% in Hong Kong, even if rumors are circulating about the difficulties of a new local developer, Sino-Ocean. Business as usual. Korea's KOSPI, on the other hand, is still struggling to recover from its excesses over the festive period: it is still down slightly this morning, which would lead to a seventh consecutive session of decline. India and Australia are up slightly. In Europe, indices are mixed.

Today's economic highlights:

Weekly jobless claims and December inflation are on the agenda. 

The dollar is slightly up to EUR 0.9129 and GBP 0.7858. The ounce of gold is stable at USD 2030. Oil is regaining a bit of ground, with North Sea Brent at USD 78.0 a barrel and US light crude WTI at USD 72.75. The yield on 10-year US debt is stable at 4.02%. Bitcoin is trading at USD 47,300.

In corporate news:

  • Citigroup was down 1.1% in pre-market trading after recording around $3.8 billion in combined charges and provisions that will weigh on its fourth-quarter results, due to be published on Friday, according to a notice filed with the SEC, the US stock market regulator.
  • Alphabet - Europe's highest court is expected to uphold the €2.42 billion antitrust fine imposed by the European Union on Alphabet's main subsidiary, Google, an adviser to the Court of Justice of the EU (CJEU) said on Thursday. The American group also announced on Wednesday that it was laying off hundreds of people working on its Google Assistant software and cutting a similar number of positions in its "Devices and Services" teams.
  • Amazon has not responded to the European Commission's concerns about its planned $1.4 billion acquisition of autonomous vacuum cleaner manufacturer IROBOT, according to the EU executive's website.
  • Alaska Airlines announced on Wednesday the cancellation of all flights using the Boeing 737 MAX 9 aircraft until Saturday, pending regulatory approvals. United Airlines said it had cancelled 167 flights on Wednesday and expects "significant" cancellations on Thursday too. The South Korean Ministry of Transport, meanwhile, expressed its intention on Thursday to check the maintenance procedures of local airlines.
  • Netflix has reached over 23 million monthly active users for its ad-supported offering, Variety magazine reported on Wednesday.
  • Apple - The U.S. International Trade Commission (ITC) on Wednesday opposed Apple's request for a stay in a dispute over its connected watches.
  • Microsoft announced on Thursday that its European customers would be able to process and store all their personal data on servers located in the EU.
  • Paramount Global - Skydance Media is considering a cash offer to acquire National Amusements, Paramount's parent company, a source close to the matter said on Wednesday.
  • Globus Medical - The medical device manufacturer rises 3% after the close, after reporting preliminary fourth-quarter revenues of $615.5 million, against consensus of $602.3 million.
  • Techtarget agreed on Wednesday to merge with the digital activities of London-based event organizer Informa, the two companies announced on Wednesday. Techtarget was up 14.9% before the opening.

Analyst recommendations:

  • Advanced Micro Devices: BMO Capital Markets drops coverage on the stock.
  • Albemarle Corporation: Deutsche Bank downgrades to hold from buy with a price target reduced from USD 155 to USD 135.
  • Alliant Energy Corporation: BMO Capital Markets downgrades to market perform from outperform with a target price of USD 55.
  • Altria Group: Redburn Atlantic drops coverage on the stock.
  • American Electric Power Company: Mizuho Securities downgrades to neutral from buy with a price target reduced from USD 87 to USD 83.
  • Analog Devices: BMO Capital Markets drops coverage on outperform.
  • Antofagasta: RBC Capital upgrades to outperform from sector perform with a price target raised from GBX 1300 to GBX 1800.
  • American Tower Corporation: Raymond James maintains its outperform rating and raises the target price from USD 184 to USD 221.
  • Broadcom: BMO Capital Markets drops coverage on outperform.
  • British American Tobacco: Redburn Atlantic drops coverage on the stock.
  • Capital One Financial Corporation: HSBC maintains its reduce recommendation and raises the target price from USD 90 to USD 111.
  • Chewy: Barclays upgrades to overweight from equalweight with a price target raised from USD 19 to USD 30.
  • Constellation Software: CIBC Capital Markets maintains its outperform rating and raises the target price from CAD 3100 to CAD 3800.
  • Discover Financial Services: HSBC maintains its buy recommendation and raises the target price from USD 98 to USD 121.
  • Equifax: Redburn Atlantic downgrades to neutral from buy with a target price of USD 272.
  • Expedia Group: RBC Capital maintains its sector perform recommendation and raises the target price from USD 110 to USD 155.
  • Expeditors International Of Washington: BNP Paribas Exane downgrades to underperform from neutral with a price target raised from USD 109 to USD 116.
  • Fiserv: Oppenheimer upgrades to outperform from market perform with a target price of USD 168.
  • Imperial Brands: Redburn Atlantic drops coverage on the stock previously rated as a buy.
  • Intel Corporation: BMO Capital Markets drops coverage on the stock.
  • Land Securities Group: Berenberg initiates a Buy recommendation with a target price of GBX 807.
  • Marvell Technology Group: BMO Capital Markets drops coverage on outperform.
  • Mastercard: Oppenheimer upgrades to outperform from market perform with a target price of USD 510.
  • Match Group: Evercore ISI maintains its outperform rating and raises the target price from USD 40 to USD 50. RBC Capital maintains its outperform rating and raises the target price from USD 33 to USD 43.
  • Microchip Technology: BMO Capital Markets drops coverage on outperform.
  • Micron Technology: BMO Capital Markets drops coverage on the stock.
  • Nvidia Corporation: BMO Capital Markets drops coverage on the stock.
  • Nxp Semiconductors: BMO Capital Markets drops coverage on the stock.
  • On Semiconductor Corporation: BMO Capital Markets drops coverage on the stock.
  • Philip Morris International: Redburn Atlantic drops coverage on the stock.
  • Persimmon: Peel Hunt maintains its hold recommendation with a price target raised from 980 to GBX 1210.
  • Rio Tinto: RBC Capital maintains its sector perform recommendation and raises the target price from GBX 5300 to GBX 6100.
  • Salesforce.com: Baird upgrades to outperform from neutral with a price target raised from USD 240 to USD 300.
  • Sba Communications Corporation: Raymond James maintains its strong buy recommendation and raises the target price from USD 253 to USD 316.
  • Seagate Technology Holdings: BNP Paribas Exane downgrades to underperform from neutral with a price target reduced from USD 66 to USD 65.
  • Sempra: BMO Capital Markets upgrades to outperform from market perform and raises the target price from USD 76 to USD 84.
  • Skyworks Solutions: BMO Capital Markets drops coverage on the stock.
  • Snap: RBC Capital maintains its sector perform recommendation and raises the target price from USD 10 to USD 17.
  • Southern Company: BMO Capital Markets upgrades to outperform from market perform and raises the target price from USD 72 to USD 77.
  • Spotify Technology: Cowen maintains its market perform recommendation and raises the target price from USD 149 to USD 206.
  • Spirax-Sarco Engineering: HSBC downgrades to reduce from hold with a price target reduced from GBP 92 to GBP 84.
  • Synchrony Financial: HSBC maintains its hold recommendation with a price target raised from USD 32 to USD 41.
  • Texas Instruments: BMO Capital Markets drops coverage on the stock.
  • Uber Technologies: Goldman Sachs maintains its buy recommendation and raises the target price from USD 59 to USD 78.
  • Warner Bros. Discovery: Redburn Atlantic downgrades to neutral from buy with a price target reduced from USD 22 to USD 11.
  • Willis Towers Watson: Wells Fargo upgrades to overweight from equalweight with a price target raised from USD 248 to USD 288.
  • Yum! Brands: Wells Fargo downgrades to equalweight from overweight with a price target reduced from USD 150 to USD 135.