Shell PLC said Friday that it expects to take a $2 billion hit for the fourth-quarter from additional taxes in the European Union and the U.K. government's energy windfall tax, and that its integrated gas trading and optimization results significantly rose on quarter.
Recently announced additional taxes in the European Union, and the deferred tax hit from the increased U.K. government's energy profits levy are expected to amount to around $2 billion for the fourth quarter.
The company said the taxes and levies will be reported as identified items, and so won't affect fourth-quarter adjusted earnings. They will have a limited cash hit in the fourth quarter given the expected timing of payments.
Tesla Slashes Prices in China After Deliveries Slump
HONG KONG-Tesla Inc. made the steepest price cuts so far on its Model 3 and Model Y cars sold in China, after deliveries of its Shanghai-made cars plunged in December to cap a challenging year globally for the electric-vehicle maker.
Prices for Tesla's two most popular electric car models-made at its Shanghai gigafactory-will be reduced by between roughly 6% and 13%, the U.S. car maker said on Chinese social media Friday. Including the latest discounts, Model Y prices now start at the equivalent of around $37,000. The Model 3 starts at roughly $32,700, more than 30% cheaper than the price of a standard Model 3 selling on Tesla's U.S. website.
Samsung Expects 69% Drop in Profit on Slumping Tech Demand
SEOUL-Samsung Electronics Co. said it expects its fourth-quarter profit to plunge as the firm's mainstay memory-chip and smartphone businesses face a sharp pullback in demand, showing the extent of the global tech downturn after pandemic highs.
The South Korean tech giant on Friday forecast its operating profit in the quarter ended Dec. 31 to drop by 69% from the prior year to 4.3 trillion won, the rough equivalent of $3.4 billion.
December Jobs Report to Show Labor Market's Strength as 2022 Closed
Friday's jobs report will offer insight into the state of the U.S. labor market as 2023 gets under way.
Hiring had been resilient throughout 2022 despite an economy that is slowing alongside the Federal Reserve's aggressive pace of interest rate increases aimed at bringing down inflation. However, some recent data and a wave of tech and finance industry layoffs suggest the labor market, while still vibrant, may be starting to lose momentum and gains could reverse in the year ahead.
As Rest of IPO Market Stalls, Corporate Carve-Outs Gain Steam
The U.S. initial public offering market's acute slowdown is creating space for deals commonly known on Wall Street as corporate carve-outs.
Traditional initial public offerings in the U.S. last year raised the smallest amount in at least two decades, according to Dealogic. Three of the biggest deals of the year were carve-outs-companies spun out from parents, using a standard IPO sale rather than the stock distribution that often occurs in what is known as a spinoff.
Warmer Weather Helps Ease Europe's War-Driven Inflation Surge
Lower energy costs as Europe enjoys a mild start to winter have helped slow the eurozone's annual rate of inflation to single digits, but consumer prices are still rising too quickly for policy makers at the European Central Bank, who have signaled they intend to raise their key interest rate again in the near future.
A surge in energy prices in the months following Russia's invasion of Ukraine pushed eurozone inflation sharply higher, and above its U.S. equivalent from midyear, but warmer-than-usual temperatures and government caps helped reverse that move as the year drew to a close.
Fed Official Sees Progress on Inflation, Says More Rate Rises Needed
The Federal Reserve's short-term benchmark rate isn't yet at a level high enough to sufficiently slow the U.S. economy to combat high inflation, but it should get there this year, a central bank official said Thursday.
"We are getting closer," said St. Louis Fed President James Bullard during a talk to business leaders in St. Louis. "What we're looking at is a combination of factors that are making it more likely that 2023 will be a disinflationary year."
German Factory Orders Fell in November to Lowest Level Since July 2020
New orders at German factories declined sharply in November to their lowest level in more than two years, a sign of weakening demand for the country's key manufacturing sector as the economy cools.
Factory orders fell 5.3% on month in November, swinging from a 0.6% rise in October, according to price-adjusted data from the German statistics office Destatis released Friday. New orders declined in eight of the 11 months up to November, and currently stand at their lowest level since July 2020.
Ukraine Clashes Continue Despite Russia's Cease-Fire Calls
Fighting continued in eastern Ukraine on Friday after Kyiv dismissed Russian calls for a temporary cease-fire as a ploy by Moscow to allow its troops to regroup following a series of battlefield setbacks.
Russian President Vladimir Putin on Thursday proposed a 36-hour cease-fire, starting at noon Moscow time on Friday, to mark Russian Orthodox Christmas, which is celebrated Jan. 7.
Biden to Mark Second Anniversary of Jan. 6 Capitol Attack
WASHINGTON-President Biden plans to commemorate the second anniversary of the Jan. 6 riot by giving medals to law-enforcement officers who protected lawmakers that day and election officials who resisted efforts to overturn the results of the 2020 presidential contest.
Recipients are to include former Arizona House Speaker Russell "Rusty" Bowers, a Republican who lost his seat in an August primary after resisting pressure from President Donald Trump to hold a hearing in the state that could have led to changing election results. Mr. Biden also plans to posthumously recognize Brian Sicknick, a Capitol Police officer who died the day after the attack.
China-Developed mRNA Covid Vaccine Starts Test Production
TAIPEI-Chinese drugmaker CanSino Biologics Inc. started trial production of a vaccine targeting new variants of Covid-19 that are behind the country's current outbreak, which would be among the first developed in China using the mRNA technology that drove inoculation in the U.S. and other countries.
The Tianjin-based biotech firm plans to produce 100 million doses of the vaccine, designed to combat Omicron during the first phase of manufacturing, according to a company release posted to its social-media account late on Thursday.
China to Allow Rapid Tests to Confirm Covid Cases
SINGAPORE-China said that it would allow citizens to confirm Covid-19 infections using antigen tests, while no longer requiring a negative Covid test for patients to be discharged from hospitals, as Beijing moves to dismantle the last remaining vestiges of the "zero-Covid" regime that it has used for the past three years.
The new rules took effect with the publication Friday of the 10th edition of China's official guidelines on diagnosing and treating Covid-19. The new guidelines, published by the country's National Health Commission, follow a bevy of measures in November and December that signaled China's biggest steps in three years to move beyond its zero-Covid policy. The ninth edition of the guidelines on diagnosing and treating Covid were published in March, before China encountered its first major outbreak of the Omicron variant of the coronavirus.
Write to ina.kreutz@wsj.com TODAY IN CANADA
Earnings:
Nothing major scheduled
Economic Indicators (ET):
0830 Dec Labour Force Survey
1000 Dec Ivey Purchasing Managers Index
Stocks to Watch:
Secure Energy Services Appoints Mick Dilger to the Bd of Directors and Chmn of the Bd Effective Jan 5
Expected Major Events for Friday
00:01/UK: Dec BRC-Sensormatic IQ Footfall Monitor
00:30/JPN: Dec Japan Services PMI
07:00/GER: Nov Retail Trade
07:00/GER: Nov Manufacturing orders
07:00/GER: Nov Manufacturing turnover
07:00/UK: Dec Halifax House Price Index
07:00/UK: 4Q Halifax House Price Index: UK Regional Breakdown quarterly release
07:45/FRA: Nov Household consumption expenditure in manufactured goods
08:59/JPN: Nov Provisional Labour Survey - Earnings, Employment & Hours Worked
09:30/UK: Dec S&P Global / CIPS UK Construction PMI
13:30/US: U.S. Weekly Export Sales
13:30/CAN: Dec Labour Force Survey
13:30/US: Dec U.S. Employment Report
15:00/US: Nov Manufacturers' Shipments, Inventories & Orders (M3)
15:00/US: Dec ISM Report On Business Services PMI
15:00/CAN: Dec Ivey Purchasing Managers Index
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Friday
Blade Air Mobility Inc (BLDE) is expected to report for 4Q.
Greenbrier Cos (GBX) is expected to report $0.55 for 1Q.
Hurco Cos (HURC) is expected to report for 4Q.
John Marshall Bancorp Inc (JMSB) is expected to report for 4Q.
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ANALYST RATINGS ACTIONS
Allbirds Cut to Neutral From Overweight by Piper Sandler
American States Water Cut to Neutral From Buy by Seaport Global
Applied Molecular Trnsprt Cut to Underperform From Buy by B of A Securities
Armstrong World Cut to Hold From Buy by Loop Capital
Azek Cut to Neutral From Buy by UBS
Baxter International Cut to Market Perform From Outperform by Raymond James
Berry Global Group Cut to Hold From Buy by Truist Securities
Bread Financial Raised to Overweight From Equal-Weight by Stephens & Co.
Business First Bancshares Cut to Market Perform From Outperform by Raymond James
Cano Health Cut to Peer Perform From Outperform by Wolfe Research
Capital One Cut to Underweight From Equal-Weight by Stephens & Co.
CarMax Cut to Hold From Buy by Argus Research
Cboe Global Markets Raised to Outperform From Neutral by Credit Suisse
CH Robinson Worldwide Cut to Market Perform From Outperform by Cowen & Co.
(MORE TO FOLLOW) Dow Jones Newswires
01-06-23 0625ET
