EMEA Morning Briefing: Shares to Fall With -2-

Hopes are rising that Europe will avoid a winter energy crisis that some feared would play to Russian President Vladimir Putin's advantage as Moscow prepares for a possible invasion of Ukraine.

A record influx of liquefied natural gas, combined with mild and windy weather, has slowed withdrawals from the region's heavily depleted underground gas-storage caverns. A boost to flows of gas from Russia via Ukraine is helping, too.

Putin, Xi Will Put Partnership Against U.S. on Display at Olympics

When Russian President Vladimir Putin and Chinese leader Xi Jinping hold a summit alongside the opening of the Beijing Winter Olympics, on display will be a flourishing partnership that is already complicating U.S. foreign policy and influence around the world.

Mr. Putin is going to Beijing at a time of high tension with the West over Russia's military buildup near Ukraine and his demands that the U.S. and its allies retreat from Eastern Europe. China, while calling for diplomacy, has offered backing for Moscow, urging the U.S. and Europe to address Russia's security concerns and stop using military alliances to threaten others.

U.S., European Allies Plan How to Protect Ukraine From Russian Hacks

BRUSSELS-U.S. officials are coordinating with European allies to determine the most effective ways to help Ukraine fend off potential Russian cyberattacks while seeking to protect digital systems in their own countries.

Anne Neuberger, the U.S. deputy national security adviser for cyber and emerging technology, is in Europe this week for a series of meetings with NATO, EU and government officials from several European countries. It would be wise for NATO and allied countries to be "fully prepared for potential destabilizing activity," she said in a call with reporters on Wednesday. "We're prepared for the range of that, from...resilience, to incident response, to calling out that activity if it does occur."

U.S. Orders 3,000 Troops to Bolster European Allies in Russia-Ukraine Crisis

WASHINGTON-President Biden is directing the Pentagon to deploy more than 3,000 American troops to bolster the defense of European allies in the first major movement of U.S. forces in Russia's military standoff with Ukraine, U.S. officials said.

Mr. Biden is sending roughly 2,000 troops from Fort Bragg, N.C., to Poland and Germany this week and repositioning about 1,000 troops that are part of a Germany-based infantry Stryker squadron to Romania, on the North Atlantic Treaty Organization's eastern flank closest to Russia, the officials said.

As Omicron Shows Signs of Peaking in Europe, France Eases Restrictions

France allowed workers to return to offices full time Wednesday amid signs the Omicron wave of Covid-19 is approaching its peak in Europe.

In the U.S., the number of infections has been in decline for weeks, helping to ease pressure on hospitals. Deaths, however, have been rising, with the seven-day average of new daily deaths reaching 2,439 on Monday.

Meta's Investors Get a Reality Check

Just a few months ago, Mark Zuckerberg was bobbing around in the metaverse as a legless avatar. Today in the real world, his company is staring at a roughly $200 billion loss in market value.

It is admittedly not a good look. But as Meta-formerly Facebook-posted its first earnings report as a so-called "metaverse" company, Mr. Zuckerberg's modus operandi became a lot more clear: His social-media dynasty is beginning to look quite aged.

Facebook's Stock Plunges After Profit Declines

Facebook parent Meta Platforms Inc. startled investors with a sharper-than-expected decline in profits and a gloomy outlook in its first earnings report since Chief Executive Mark Zuckerberg outlined a pivot to the metaverse.

Meta shares plunged after the results were announced, dropping more than 20%. If shares dropped that much when trading opens on Thursday, it would wipe more than $175 billion from the tech giant's market capitalization.

Spotify, Facing Pushback Against Joe Rogan, Reports Jump in Users

Spotify Technology SA added more users and saw a surge in advertising revenue in its recently completed quarter as its podcast strategy takes hold despite backlash to its star host.

Neil Young last week removed his music from Spotify in protest to what he says is vaccine misinformation spread by podcaster Joe Rogan on the streaming service. The company has since made public its content policy and said it would begin to tag Covid-19-related content with an advisory prompting users to check out the service's new hub for data-driven facts and up-to-date information from the health and scientific communities.

PayPal Stock Tumbles After Disappointing Earnings Guidance

PayPal Holdings Inc. shares suffered their worst selloff on record after the company lowered its 2022 profit outlook and scrapped an ambitious growth strategy it put in place last year.

Shares in the payments company fell more than 24% on Wednesday to close at $132.57, erasing about $50 billion in market value.

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Expected Major Events for Thursday

01:01/IRL: Jan Ireland Services PMI

07:00/TUR: Jan CPI

07:00/TUR: Jan PPI

07:00/ROM: Dec Retail trade

08:00/CZE: 4Q LFSS Employment & Unemployment

08:00/HUN: Dec Retail Sales

08:15/SPN: Jan Spain Services PMI

08:45/ITA: Jan Italy Services PMI

08:50/FRA: Jan France Services PMI

08:55/GER: Jan Germany Services PMI

09:00/EU: Jan Eurozone Services PMI

09:30/UK: Jan CIPS / Markit Services PMI

09:30/UK: Jan UK Official Reserves

10:00/EU: Dec PPI

10:00/CYP: Jan Registered Unemployed

10:00/CYP: Jan CPI

11:00/FRA: Dec OECD CPI

12:00/UK: Bank of England Monetary Policy Report

12:00/UK: UK interest rate decision

12:45/EU: ECB interest rate announcement

13:30/CZE: Czech interest rate decision

16:59/BEL: Dec PPI

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 Newswires

02-03-22 0046ET