EMEA morning briefing: Fed rate path likely to be hit -2-


China’s industrial profit soared 34.3% in 2021 on strong growth among commodity producers and high-tech manufacturers, official data showed on Thursday.

Profit growth slowed sharply at the end of the year, however, rising just 4.2% in December from a year ago, according to figures from the National Bureau of Statistics. In November, industrial profit rose 9.0% over the prior year period.


China Evergrande vows to abide by rules on offshore debt restructuring

Struggling property developer China Evergrande Group said on Wednesday it intended to publish a global restructuring plan within six months that would respect the legal rights of offshore creditors, after a group of its bondholders threatened the week last to sue the company for not engaging with them.

In a call with offshore creditors, Evergrande promised to uphold the rule of law and respect the rights of bondholders, which in some cases include claims against the company’s secured offshore assets, according to people familiar with the matter. . Evergrande also said on the call that its founder and chairman Xu Jiayin could provide additional financial support to the company as it navigates a protracted restructuring, the people said, who declined to be identified as the call was private.


Industry says new SEC proposal could dramatically boost private equity reporting

A new proposal from the Securities and Exchange Commission would require private equity firms to report far more deals than they currently do, a prospect that unnerves many in the industry.

SEC commissioners voted on Wednesday for a proposal to expand the amount of information private fund managers report and the frequency with which they must do so. The agency may put the changes into effect after a period of public comment.


Bank of Canada says rate hikes are coming

OTTAWA – The Bank of Canada kept its main interest rate unchanged at 0.25%, but said rate hikes are on the horizon to deal with high inflation and an economy running at full steam or almost.

Governor Tiff Macklem said Wednesday’s decision marked the end of emergency policies to support the economy during the pandemic. In the fall, the central bank ended its program of large-scale asset purchases, or quantitative easing, based on economic progress to date. “We are signaling to Canadians that they can expect higher interest rates,” he told reporters at a news conference.


UBS buys Wealthfront for $1.4 billion to reach America’s young wealthy

UBS Group AG is buying online wealth adviser Wealthfront for $1.4 billion to reach young wealthy people and manage more money for people through their devices, the company announced Wednesday.

UBS said it would pay cash for the digital platform, one of several startups whose assets have grown rapidly as part of an industry shift to robo-advice. California-based Wealthfront manages $27 billion for nearly half a million clients.


UK car manufacturing hits lowest level in 65 years

British car manufacturing fell 6.7% in 2021, marking its worst year since 1956, an industry body said on Thursday, attributing the decline mainly to factors related to Covid-19.

The Society of Motor Manufacturers and Traders said a total of 859,575 cars rolled off the production line last year, compared to 920,928 in 2020 and 707,594 in 1956.


UK ad market set to improve after strongest year on record in 2021

The UK advertising market has recovered faster than expected in 2021 to post its best year ever and spending for 2022 is expected to reach 32.2 billion pounds ($43.44 billion), according to the latest Advertising Association/WARC spending report released Thursday.

Revised UK advertising market growth estimates for 2021 now stand at 26%, reaching a total value of £29.7bn, up from October’s projection of 25% growth .


UK government backs development of nuclear project with £100m funding

The British government announced on Thursday that it will provide 100 million pounds ($135.1 million) in funding for a project to build a new nuclear power station in Suffolk, eastern England, which is developed by Electricité de France SA.

The Department for Business, Energy and Industrial Strategy said the funds will be used to further develop Sizewell C, attracting further funding from private investors and potentially the UK government.


Italian leaders meet Putin amid tension over Ukraine

Big European and American companies are trying to balance their business interests in Russia with growing pressure from their national governments to isolate Moscow, as tensions between the West and Russia rise over Ukraine.

In Italy, top business executives held a videoconference with Russian President Vladimir Putin on Wednesday, although some companies pulled out of the long-planned event following pressure from the Italian government.


Facebook’s cryptocurrency business to pull out and sell assets

Facebook’s ambitious effort to bring cryptocurrency to the masses has failed.

The Diem Association, the Facebook consortium founded in 2019 to build a futuristic payments network, is winding down and selling its technology to a small California bank that serves bitcoin and blockchain companies for around $200 million, a person familiar with says folder.


Tesla is a proven automaker, an unproven tech giant

With help from China, Tesla has transformed itself into an exceptionally profitable automaker. Whether that makes it a tech company worthy of a nearly trillion-dollar valuation is less clear.

As it ramped up production at its Shanghai plant over the past two years, the electric vehicle pioneer has racked up enough profits to offset all of the losses in its previous history. On Wednesday night, it announced a 14.7% operating margin for the fourth quarter in an industry where single-digit margins are considered normal.


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Major events expected for Thursday

00:01/UK: Dec. Zoopla Housing Price Index

00:01/UK: Monthly figures for UK car manufacturing in December

07:00/GER: February GfK consumer sentiment survey

07:00/NOR: Nov SA Labor Force Survey including unemployment

07:00/NOR: Quarter 4 Labor Force Survey

07:00/SWI: December Trade Balance

08:00/SVK: December PPI

08:00/SPN: Survey of the economically active population in the 4th quarter

08:00/HUN: December Employment and Unemployment

09:00/ITA: November industrial sales and orders

09:00/AUT: January Austria Manufacturing PMI

09:00/ICE: December Labor Force Survey

11:00 a.m. / United Kingdom: Jan CBI survey on distribution jobs

All times in GMT. Powered by Kantar Media and Dow Jones.

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This article is a text version of a Wall Street Journal newsletter published earlier today.


(END) Dow Jones Newswire

January 27, 2022 12:45 a.m. ET (05:45 GMT)

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