EMEA Morning Briefing : Stocks to Rise on Hopes -2-

Allianz SE set aside more than $4 billion for legal expenses stemming from losses its investment funds racked up during the March 2020 market panic when their options trades went bad.

The German financial giant said Thursday it accounted for the 3.7 billion euros in legal provisions, equivalent to $4.2 billion, in its 2021 results. As a result, Allianz's net income fell 2.6% to EUR6.6 billion. The fund losses have drawn probes from the U.S. Justice Department and Securities and Exchange Commission as well as several lawsuits from the funds' investors.

Inflation Will Sift the Best Household Brands From the Rest

If the pandemic was a tide that lifted all boats in the consumer staples business, inflation will show which brands are really in good shape.

Companies that make well-known household essentials have reported strong sales this earnings season. On Thursday, Nespresso coffee maker Nestlé said comparable sales grew 7.2% for the three months through December. Procter & Gamble and Unilever increased sales by an impressive 6% and 4.9%, respectively, over the same period. For both Nestlé and Unilever, this was the fastest growth rate in roughly a decade.

A More Conservative Airbus Can Gain Altitude

A move by Airbus to fly under the radar could be a wise one.

Shares in the European plane maker initially rose Thursday, after it released encouraging financial results for the final quarter. Operating earnings were 11% above the median analyst estimate. Free cash flow, which is even more important for aerospace firms, was almost twice as high as expected for the quarter, and amounted to EUR3.5 billion, equivalent to $4 billion, for 2021 overall. That echoes a better-than-expected cash performance at Boeing, its American rival.

How Well Could Russia's Economy Withstand Sanctions?

When Russia annexed Crimea in 2014, the European Union, U.S. and other countries hit Moscow with punitive economic measures. Russian individuals and organizations have since been sanctioned for interfering in overseas elections, cyberattacks and other actions. Now, Russia has amassed tens of thousands of Russian troops along Ukraine's borders in what some fear could be a prelude to a full-scale invasion.

In response, the U.S. is threatening additional sanctions, including cutting off Russian banks' access to the dollar and employing novel export controls.

France's CNP to Stop Financing New Oil-And-Gas Projects

CNP Assurances will stop funding new oil-and-gas projects as part of its goal to phase out financing carbon dioxide emissions by 2050.

On Thursday, the French insurer said it was strengthening its policy on fossil fuels with new commitments, including a plan to stop financing new oil-and-gas projects or investing in the companies planning to do so.

Europe's Energy Crisis Pays Off for U.S. Natural-Gas Sellers, Global Traders

U.S. natural-gas producers and global commodity traders are emerging as some of the biggest beneficiaries of the surging energy prices spreading pain in Europe.

Falling supplies from Russia to Europe, as well as the threat of a Russian invasion of Ukraine, have elevated prices of the coveted fuel used to heat homes and generate electricity. The rally has burned European utilities including Électricité de France SA and Germany's Uniper SE and put dozens of British energy suppliers out of business. It is also leading to substantially higher bills for consumers, creating headaches for governments across the continent.

Regulators Widen Activision Blizzard Probes Over Workplace Issues

Federal and state regulators have widened their investigations into how Activision Blizzard Inc.'s leadership handled workplace misconduct claims, according to documents and people familiar with the probes, as the videogame giant works to complete a planned $75 billion sale to Microsoft Corp.

The California Department of Fair Employment and Housing, a state watchdog agency, has subpoenaed Activision's directors related to the company's handling of the workplace issues, according to people familiar with the matter. It also has subpoenaed police departments in the Los Angeles-area for any records they have related to longtime Chief Executive Bobby Kotick and 18 other current and former Activision employees, according to the people and to documents viewed by The Wall Street Journal.

Allianz Says Legal Bill for Investment-Fund Losses May Top $4 Billion

Allianz SE set aside more than $4 billion for legal expenses stemming from losses its investment funds racked up during the March 2020 market panic when their options trades went bad.

The German financial giant said Thursday it accounted for the 3.7 billion euros in legal provisions, equivalent to $4.2 billion, in its 2021 results. As a result, Allianz's net income fell 2.6% to EUR6.6 billion. The fund losses have drawn probes from the U.S. Justice Department and Securities and Exchange Commission as well as several lawsuits from the funds' investors.

Talc Plaintiffs' Lawyers Allege J&J Put Lawsuits in Bankruptcy to Protect Brand

Lawyers for cancer victims accused Johnson & Johnson of pushing roughly 38,000 talc lawsuits into chapter 11 to stem damage to its corporate brand and gain unfair leverage, as a trial concludes on a bankruptcy strategy the company has defended as fair and reasonable.

"Bankruptcy is not an image improvement service," said David Molton, a lawyer representing injury claimants, during closing arguments Thursday on J&J's decision to put the company's talc-related liabilities in a new subsidiary that swiftly filed chapter 11.

Crypto Giant Binance's U.S. Arm Hires New Compliance Chief

The U.S. arm of Binance, the world's largest cryptocurrency exchange by trading volume, has named a new chief compliance officer.

Binance.US said it hired Tammy Weinrib, who most recently served as vice president of the financial crime compliance department at French bank Société Générale SA.

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Expected Major Events for Friday

05:30/NED: Feb Consumer confidence survey

06:00/FIN: Jan CPI

06:30/FRA: 4Q ILO Unemployment and Labour Market-related indicators

07:00/SWE: Jan CPI

07:00/DEN: Feb Consumer expectations

07:00/UK: Jan UK monthly retail sales figures

07:30/SWI: 4Q Industrial Production

07:45/FRA: Jan CPI

09:00/POL: Jan Average gross wages

09:00/POL: Jan PPI

09:00/POL: Jan Industrial Production Index

09:00/EU: Dec Euro area balance of payments

10:00/EU: Dec Construction output

10:00/ITA: Dec Balance of Payments

14:00/BEL: Feb Consumer Confidence Survey

15:00/EU: Feb FCCI Flash Consumer Confidence Indicator

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

02-18-22 0037ET