WSJ : Hasbro Activist Begins Proxy Fight, Urges Wizards Unit Spinoff

Hasbro Activist Begins Proxy Fight, Urges Wizards Unit Spinoff
Alta Fox Capital Management nominates five directors to company’s board, saying stock has been trailing broader market

A little-known activist investor is seeking to add several directors to Hasbro Inc.’s HAS 0.61% board and is urging the toy maker to make changes including a spinoff of its fast-growing unit housing games such as Dungeons & Dragons.

Alta Fox Capital Management LLC, which has a 2.5% stake in Hasbro worth roughly $325 million, has nominated five directors to its board, according to a letter viewed by The Wall Street Journal that will be sent to the company’s shareholders. Shareholders will vote on director nominees at Hasbro’s annual meeting this spring.

Alta Fox, which says in the letter that it has spoken to Hasbro, noted that the company’s stock price is lower than it was five years ago and has significantly trailed the broader market. Alta Fox believes Hasbro could double its valuation by spinning off the unit that houses the Dungeons & Dragons business.

Hasbro said in a statement it will review Alta Fox’s nominees. It said it is excited to welcome its new chief executive officer, Chris Cocks, who previously led the unit housing Dungeons & Dragons, known as Wizards of the Coast and Digital Gaming.

“He brings extensive omni-channel experience and proven track record for value creation at Wizards to supercharge Hasbro’s growth and capitalize on all elements of our Brand Blueprint across consumer products; Wizards and digital gaming; and entertainment,” the company said.

Pawtucket, R.I.-based Hasbro, which has a market value of about $13 billion, owns such brands as Nerf and Monopoly. It holds the rights for toys based on the popular children’s show “Peppa Pig” and Walt Disney Co. ’s blockbuster “Frozen” movies, though Mattel Inc. recently won back the lucrative rights to “Frozen.”

Hasbro named Mr. Cocks as its new chief executive officer in January following the death of longtime CEO Brian Goldner last year.

Hasbro and Mattel, whose brands include Barbie and Hot Wheels, have been fierce rivals over the years. In 2017, when Hasbro was twice the size of Mattel, it made an unsuccessful takeover offer for its rival. Mattel has since improved its footing with cost cuts, an overhauled leadership team and updates to its brands, though its stock has also languished and the company’s market value stands at about $9 billion.

Both companies enjoyed a boost during the Covid-19 pandemic as lockdowns spurred parents to spend on toys, though decreased attendance at movie theaters hit some character-driven toy sales.

A bright spot in Hasbro’s business has been the Wizards of the Coast and Digital Gaming unit, which in addition to the cult-favorite role-playing game Dungeons & Dragons includes the card game Magic: The Gathering. The unit’s revenue rose 42% in 2021 to $1.29 billion and accounted for roughly 46% of the company’s $1.31 billion of adjusted earnings before interest, taxes, depreciation and amortization.

Alta Fox estimates in the letter that if the division was separated, it could be worth roughly as much as Hasbro, or $13 billion or more.

The activist takes issue with Hasbro’s capital allocation, including its acquisition of Entertainment One in 2019, and its Brand Blueprint strategy, which focuses on promotion through multimedia storytelling.

The nominees include the founder and CEO of cloud-computing company Appian Corp. , Matthew Calkins, and Jon Finkel, a managing partner of an investment firm who has played games including Magic professionally.

Fort Worth, Texas-based Alta Fox is working with EnTrust Global, the investment firm run by Gregg Hymowitz that backs many of activist investors’ biggest bets, a person familiar with the matter said.

Alta Fox’s flagship fund was launched in 2018 by Connor Haley, who previously worked at New York hedge fund Scopia Capital Management LP. Though it has kept a relatively low profile since then, Alta Fox in 2020 ran a successful campaign at Collectors Universe Inc., which authenticates and grades collectibles. The company was later sold to a group of investors that included the hedge-fund manager Steven A. Cohen.

WSJ : Russia Is Continuing to Build Up Forces Near Ukraine, West Says

Russia Is Continuing to Build Up Forces Near Ukraine, West Says
NATO, U.S. see no de-escalation by Moscow; U.S. officials question Moscow’s statements about troop withdrawals

Russia is continuing its military buildup around Ukraine, Western officials said, even as Moscow announced it had begun drawing down some troops and released footage of tanks and armored personnel carriers departing Crimea.

On Wednesday, the day some U.S. intelligence officials had said a Russian invasion was likely to occur, Ukrainians rallied across the country in a display of solidarity and defiance in morning ceremonies. A cyberattack rattled the country the previous day, targeting the Ministry of Defense and two of the biggest banks, temporarily disrupting payments and showing zero balances on accounts.

“We have heard the signs from Moscow about readiness to continue diplomatic efforts,” North Atlantic Treaty Organization Secretary-General Jens Stoltenberg said, as defense ministers from the alliance’s 30 member states gathered in Brussels. “But so far, we have not seen any de-escalation on the ground. On the contrary, it appears that Russia continues its military buildup.”

U.S. officials too called into question Moscow’s statements about troop withdrawals.

A senior Biden administration official said Wednesday that Russia has instead increased its troops by as many as 7,000. Some of the troops arrived Wednesday, the official said.

“In recent weeks, and even in recent days, more Russian forces, not fewer, are at the border, and they’re moving, concerningly, into fighting positions,” State Department spokesman Ned Price said Wednesday.

A senior British intelligence official said the new buildup of Russian forces near the Ukrainian border included armored vehicles, helicopters and a field hospital.

“Russia has the military mass in place to conduct an invasion of Ukraine,” Chief of Defense Intelligence Lt. Gen. Sir Jim Hockenhull said in a statement.

Some 130,000 Russian troops have gathered near Ukraine, including some 30,000 for military drills in Belarus, in recent weeks, prompting the U.S. to shut down its embassy in Kyiv and to evacuate American diplomats and military personnel. Russian President Vladimir Putin said after meeting German Chancellor Olaf Scholz on Tuesday that he had ordered “a partial troop withdrawal” and that he is open to continuing talks with the West about Russia’s security demands and the future of Ukraine.

On Wednesday, Russia’s Defense Ministry said that some of these units had begun leaving Crimea, which Moscow seized from Ukraine and annexed in 2014, for their permanent bases. Some of these bases aren’t far from Ukraine, which means that the redeployed troops will continue to pose a threat.

Ukraine has launched military drills of its own along the borders with Russia and Belarus, as well as on its southern coast, which is vulnerable to Russian amphibious landings. “All the troops that needed to be deployed to positions to strengthen dangerous approaches have been deployed, and everyone who needed to receive ammunition has received it,” Ukrainian Defense Minister Oleksii Reznikov said in a televised appearance Wednesday.

Aircraft-tracking sites showed military activity in Ukrainian skies, with a U.S. Air Force RQ-4A Global Hawk reconnaissance drone flying in loops along Ukraine’s borders with Russia and Belarus.

Ukrainian President Volodymyr Zelensky, donning fatigues, arrived Wednesday to inspect exercises in the Rivne region near Belarus, and later planned to visit front-line troops near Donetsk in Ukraine’s east, according to his office. The forces in Rivne practiced repelling a land attack in a border area with a combined operation, using aviation, air defenses, artillery, Turkish-made Bayraktar TB2 armed drones and Ukrainian-made Stugna-P and Corsar guided missiles, Mr. Zelensky said.

Ukrainian troops also deployed with the antitank missiles that the U.S., the U.K. and other allies supplied in recent weeks, such as the FGM-148 Javelin, NLAW and SMAW M-141.

Russia’s military drills in Belarus, which U.S. officials say could supply a fighting force to attack the Ukrainian capital from the north, are slated to end on Feb. 20, while Russian navy exercises in the Black Sea are scheduled to last until Feb. 19. Belarus Foreign Minister Vladimir Makey said Wednesday that “not a single service member, not a single piece of equipment” will be left in the country by Moscow once the exercises are completed.

U.S. officials are skeptical of such assurances, saying the drills could be a cover for a military strike on Ukraine. President Biden said Tuesday that a Russian invasion remained “distinctly possible.” Ukrainian officials have also dismissed Russia’s statements on withdrawals, saying that Russian troops could easily move back toward the border—and that Kyiv should be preparing for a permanent threat of a Russian invasion. “Putin wakes up every morning thinking of how to make sure that we don’t exist anymore,” said Oleksii Danilov, the head of Ukraine’s National Security and Defense Council.
The cyberattack that took place Tuesday was the largest denial-of-service attack in Ukrainian history, Mykhailo Fedorov, the minister of digital transformation, said Wednesday. Such attacks knock systems offline by overwhelming them with a flood of activity. “It is clear that it was prepared in advance, and the key goal of this attack is to destabilize, sow panic, do everything so that a certain chaos arises in our country,” he said in a televised briefing.

The Biden administration believes Russian hackers likely have broadly targeted the Ukrainian government, including its military and critical infrastructure networks, both to collect intelligence and to be ready in the case of invasion to launch disruptive cyberattacks, a senior official said.

In recent weeks, Ukraine has been at the center of a flurry of diplomatic activity, with the leaders of France and Germany shuttling between Kyiv and Moscow in an attempt to avert hostilities. These diplomatic efforts focused largely on the Minsk-2 agreements brokered by France and Germany in 2015 that ended major combat between Ukraine and Russian-backed forces in the Donetsk and Luhansk regions. Russia’s interpretation of the accords, which has been rejected by Kyiv, could give Moscow a veto over Ukraine’s key policies.

While the talks have been fruitless so far, Mr. Putin said after meeting Germany’s chancellor in Moscow on Tuesday that he expected Washington, Paris and Berlin to exert “appropriate influence” to pressure Ukraine on Minsk-2.

On the same day, the Russian Parliament asked Mr. Putin to recognize the Russian-controlled statelets in Donetsk and Luhansk as independent nations. Mr. Putin’s spokesman, Dmitry Peskov, said Wednesday that the Russian president has received the request but intends to focus on implementing the Minsk agreements, under which Donetsk and Luhansk would become autonomous areas within Ukraine. Mr. Peskov said that Mr. Putin was in favor of continuing negotiations and welcomed Mr. Biden’s willingness to do the same.

Russian officials mocked American warnings of a Wednesday invasion, calling them hysteria and proof that the U.S. can’t be trusted. “We need to stop believing everything that they say in Washington, especially regarding Ukraine,” Russian Foreign Ministry spokeswoman Maria Zakharova said Wednesday on the YouTube channel of Ukrainian journalist Anatoly Shariy, who is sought by Kyiv for alleged state treason. Russia’s ambassador to the European Union, Vladimir Chizhov, quipped in an interview with a German TV channel that “wars in Europe rarely begin on Wednesdays.”

In a sign of how the crisis is hurting Ukraine’s economy and broader society, two more airlines said they would temporarily halt flights to the country. Emirates Airline’s sister carrier, FlyDubai, and Israel’s national airline El Al suspended services starting Wednesday, following a similar decision over the weekend by KLM Royal Dutch Airlines. Ukrainian airlines SkyUp and Ukraine International Airlines said earlier this week that they have had to ground some of their fleet because insurance companies canceled coverage.

U.S. officials said earlier this week that the Russian military presence near Ukraine had grown to 105 battalion tactical groups, up from 83 groups earlier this month. Russia has also moved around 500 combat aircraft within range of Ukraine and has 40 combat ships in the Black Sea, according to U.S. officials.

Amid the developments, Ukraine’s Mr. Zelensky sought to raise morale and upend the narrative by proclaiming Wednesday a national holiday. Yellow-and-blue national flags lined Kyiv’s main thoroughfares, and a morning rally at Kyiv’s central sports stadium drew Ukrainians out to sing the national anthem, which starts with the line “Ukraine is not dead yet.”

“We have to show support for our country and our president. This is a difficult time. We’re worried, but we’re trying to keep from panicking,” said Roman Dudiak, 20, a university student who fled his hometown of Donetsk when Russian-controlled forces seized it in 2014. “Russia didn’t attack us yesterday or last week, we’ve been fighting Russia for eight years.”

>>> US Close Dow -0.16% S&P +0.09% Nasdaq -0.11% Russell +0.14%

Closing Stock Market Summary

The S&P 500 increased 0.1% on Wednesday, as the market reacted positively to the FOMC Minutes from the January meeting. Earlier in the day, the benchmark index was down as much as 0.9% amid negative-sounding Russia-Ukraine headlines.

The Nasdaq Composite lost 0.1% after being down 1.5% intraday. The Dow Jones Industrial Average lost 0.2% after being down 1.0% intraday. The Russell 2000 gained 0.1% after being down 0.8% intraday. 

It was a tale of two sessions, as investors first held back risk appetite after Ukraine President Zelensky said he hadn't seen a withdrawal of Russian troops and NATO officials claimed that Russia was building up forces near Ukraine. Stocks fell to session lows after The Wall Street Journal reported that U.S. and Russian aircraft flew dangerously close to each other in three separate incidents over the weekend.

Ten of the 11 S&P 500 sectors were trading lower with the exception being energy (+0.8%) amid higher oil prices ($93.83, +1.76, +1.9%). Growth stocks were struggling amid disappointing earnings reactions in Shopify (SHOP 746.85, -142.65, -16.0%) and Roblox (RBLX 53.87, -19.43, -26.5%), as well as plans from Google to build more private advertising solutions.

Then, the January FOMC Minutes were released at 2:00 p.m. ET, and the dynamics of the market were flipped despite there being nothing terribly surprising in the minutes. Participants agreed the Fed should be more assertive in removing policy accommodation since, compared to the last normalization period, there is a much stronger outlook for economic growth, substantially higher inflation, and a notably tighter labor market.

Nine of the 11 S&P 500 sectors ended the session in positive territory, with materials (+0.7%) finishing in second place behind energy. The information technology (-0.2%) and communication services (-0.2%) sectors closed slightly lower. 

Notwithstanding the dated nature of the minutes, investors might have liked that they weren't as hawkish as feared. More insightful, however, was the reaction in the Treasury market, which suggested that the Fed's hawkish policy shift has been priced in. The 2-yr yield declined five basis points to 1.52%. 

The 10-yr yield, meanwhile, was unchanged at 2.05% as the geopolitical factor offset hot import/export prices for January and better-than-expected retail sales data for January. The U.S. Dollar Index declined 0.2% to 95.78. Oil prices turned negative post-settlement. 

Reviewing Wednesday's economic data, which featured Retail Sales for January: 

  • Total retail sales for January increased 3.8% month-over-month (Briefing.com consensus 1.9%) following a downwardly revised 2.5% decline (from -1.9%) in December. Excluding autos, retail sales were up 3.3% month-over-month following a downwardly revised 2.8% decline (from -2.3%) in December.
    • Retail sales are not adjusted for price changes, so higher prices likely played a part in the strong increase; nonetheless, the key takeaway from the report is that it speaks to a consumer that is still willing and able to spend in spite of the inflation.
  • Total industrial production increased 1.4% month-over-month in January (Briefing.com consensus 0.4%) following an unrevised 0.1% decline in December. The capacity utilization rate jumped to 77.6% (Briefing.com consensus 76.8%) from an upwardly revised 76.6% (from 76.5%) in December.
    • The key takeaway from the report is that the increase was driven predominately by the output of utilities, which saw its largest increase (9.9%) in the history of the index, which dates back to 1972.
  • Import prices rose 2.0% in January after decreasing 0.4% in December. Excluding oil, import prices rose 1.4% after increasing 0.5% in December. Export prices rose 2.9% after decreasing 1.6% in December. Excluding agriculture, export prices rose 2.9% after decreasing 1.9% in December.
  • The NAHB Housing Market Index for February decreased to 82 (Briefing.com consensus 83) from 83 in January.
  • Business inventories increased 2.1% m/m in December (Briefing.com consensus 2.1%) following a revised 1.5% increase (from 1.3%) in November.
  • The weekly MBA Mortgage Applications Index fell 5.4% following an 8.1% decline in the prior week. 

Looking ahead, investors will receive Housing Starts and Building Permits for January, weekly Initial and Continuing Claims, and the Philadelphia Fed Index for February on Thursday.

  • Dow Jones Industrial Average -3.9% YTD
  • S&P 500 -6.1% YTD
  • Russell 2000 -7.4% YTD
  • Nasdaq Composite -9.7% YTD


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>>> US After Hours Summary: Busy earnings night; highlights were DASH +26%, GLBE

After Hours Summary: Busy earnings night; highlights were DASH +26%, GLBE +17.7%, KNBE +12.4%, AMAT +2.7% on upside; AMPL -37.5%, FSLY -25.3%, TXG -21.2%, APP -16.3%, PAY -14.4%, H -6.8%, SAM -5.9% on downside

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: DASH +26%, GLBE +17.7%, KNBE +12.4%, ACVA +7%, KAR +6.2%, INFN +5.9%, OM +5.2%, NTR +5.1% (also increases dividend), CAKE +4%, EQIX +3.6% (also increases dividend), AR +3.2%, FSR +3%, TS +2.8%, AMAT +2.7%, ET +2.6%, ALSN +2.4%, CSCO +2.3% (also approves $15 bln new share repurchase authorization, increases dividend by 3%), CPRT +1.7%, COMP +1.4%, SNPS +1.3%, UFPI +1.3%, VECO +1.1% (also announces that multiple chip manufacturers have placed repeat, multi-system orders for LSA101 and LSA201), AIG +0.7%, RGLD +0.5%, OIS +0.3%, ATCO +0.2%, HST +0.2%, OCDX +0.2%, FCPT +0.1%, PXD +0.1% (also declares quarterly base-plus-variable dividend of $3.78/sh)

Companies trading higher in after hours in reaction to news: IVAC +1.8% (announces deal with data storage co to upgrade multiple 200 Lean systems), CSX +1% (files mixed securities shelf offering; also increases dividend), MAXN +1% (MAXN announces new supply agreement with SPWR for IBC solar panels), SPOT +0.9% (acquries podcast tech cos Podsights and Chartable), AMZN +0.8% (ESTC settles trademark infrigement lawsuit with AMZN; also Daniel Loeb sees roughly $1 trillion in untapped value, according to WSJ; also to launch new AWS Local Zones in 32 new metro areas; also workers in NY to hold union vote, according to WSJ), PANL +0.4% (increases dividend), RLGY +0.1% (names new COO)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: AMPL -37.5%, FSLY -25.3%, TXG -21.2%, APP -16.3%, PAY -14.4%, BCOV -11.5%, MTTR -10.7%, RBBN -10.6%, TRUP -8.1%, TRIP -7%, H -6.8%, ALB -6.5%, QS -6%, INFA -6%, SAM -5.9%, LOPE -5.2%, SPWR -5%, CNDT -4.9%, PEGA -3.6%, ATUS -3.5% (also announces an acceleration of its fiber deployment strategy), WKME -3.5%, CYH -3.3%, CDE -2.8%, TROX -2.8% (also increases dividend), AM -2.3%, BFAM -2.2%, OPI -2.1%, NVDA -1.6%, MGY -1.4%, ES -1.1%, MRO -0.7%, KGC -0.5%, AWK -0.2%, KAI -0.2%, RPT -0.1%, STAG -0.1%, TYL -0.1%

Companies trading lower in after hours in reaction to news: SPWR -5% (MAXN announces new supply agreement with SPWR for IBC solar panels), RAMP -0.5% (stock offering), CWH -0.5% (announces cybersecurity incident), NKE -0.3% (Tiger Woods will return to the PGA Tour, but he doesn't know when, according to CNN), HSY -0.2% (completes purchase of 1 mln shares from Hershey Trust), ESTC -0.1% (ESTC settles trademark infrigement lawsuit with AMZN), OEC -0.1% (names new CFO), STAG -0.1% (files mixed securities shelf offering)

FT : Ericsson says it may have paid Isis terror group in Iraq

Ericsson says it may have paid Isis terror group in Iraq
Shares in telecoms group drop after internal probe finds payments were made for transport routes

Shares in Ericsson fell sharply after Borje Ekholm, chief executive of the Swedish telecoms equipment maker, conceded it could have made payments to terror organisation Isis in Iraq.

Ericsson said late on Tuesday that an internal investigation from 2019 had found serious breaches of compliance rules in Iraq including payments for transport routes to evade local customs.

“What we are seeing is that transport routes have been purchased through areas that have been controlled by terrorist organisations, including Isis,” Ekholm told Swedish newspaper Dagens Industri on Wednesday.

Shares in Ericsson fell as much as 14 per cent on Wednesday.

Ericsson paid more than $1bn in December 2019 to settle US criminal and civil investigations into foreign corruption in countries spanning China, Indonesia, Vietnam, Djibouti and Kuwait.


But the Swedish group said in October the US Department of Justice had warned that it had breached its obligations under a deferred prosecution agreement by failing to provide documents and information. It is unclear whether the allegations in Iraq formed part of the breach, but the country was not one of five named in the 2019 settlement.

Ericsson said that unusual expenses claims dating back to 2018 sparked an internal investigation that found serious breaches of its compliance and ethics rules for “corruption-related misconduct”.

The evidence included making donations without a clear beneficiary; paying suppliers without documents; using suppliers to make cash payments; inappropriate travel and expenses; and improper use of sales agents and consultants. It also found violations of Ericsson’s internal financial controls, conflicts of interest, non-compliance with tax laws and obstruction of the investigation, the company added.

Its investigators could not determine the ultimate recipient of payments for alternative transport routes but they occurred at a time when Isis and other terror organisations controlled some of the routes. The probe also found cash payments that “potentially created the risk of money laundering”.

The Swedish group said it “could not identify that any Ericsson employee was directly involved in financing terrorist organisations” but added that several workers “were exited from the company”.

The revelations constitute a big difficulty for Ekholm after he tried to put the corruption investigation behind him as part of his restructuring of the Swedish group, which has regained its crown as the world’s biggest network gear maker due to its success in 5G telecoms contracts.

Steve Peikin, then co-director of the Securities and Exchange Commission’s enforcement division, said in 2019 that Ericsson had “engaged in an egregious bribery scheme for years, spanning multiple continents, by surreptitiously using slush funds and funnelling money through sham intermediaries”.

Ekholm said at the time: “We have worked tirelessly to implement a robust compliance programme. This work will never stop.”

FT : Atom Bank valued at £435mn as it targets market listing next year

Atom Bank valued at £435mn as it targets market listing next year
App-based lender raises more than £75mn in round led by BBVA, Toscafund and Infinity

UK digital lender Atom Bank has been valued at £435mn after raising more than £75mn from existing investors, as the bank seeks to expand its business ahead of a potential market listing next year.

The fundraising was led by Spanish financial services group BBVA, which has a 39 per cent stake in the business, alongside London-based investment firms Toscafund and Infinity Investment Partners.

App-based bank Atom announced the funding as it reported its first quarterly profit last year and said it was on target to post its first full year’s profitability in 2023.

“We have an appetite to grow and now we have the capital and funding to enable us to do it,” said chief executive Mark Mullen. “With improving interest rates for banks, the asset business becomes a more and more competitive model, so we’re very optimistic.”

From April 1 2021 to the end of the year, Atom increased total customer deposits by 16 per cent to £2.5bn compared with its full financial year to March 31 2021.

Atom said that mortgage and business loans had grown 30 per cent over the past nine months, with applications for digital loans peaking at £315mn in the three months to December 31 2021.

Mullen said he aimed to increase this by an additional £2bn by 2023 through offering better savings accounts than rivals, which he criticised for failing to pass on interest rate rises to savers.

While Atom was targeting a stock market listing next year, Mullen said the company was trying to pick the ideal moment based on both its own performance and the wider economy.

Atom, which launched in 2016, reported a pre-tax loss of £62mn for the 12 months to March 31 2021, compared with a £66mn pre-tax loss in 2020.

Atom’s financing comes after soaring valuations for other UK so-called neobanks, including Monzo which was valued at $4.5bn in December in a funding round with investors including Chinese tech group Tencent.

Digital bank Revolut became the UK’s most valuable private tech company last July with a valuation of $33bn, before being eclipsed by London-based payments group Checkout.com, which in January was valued at $40bn after a $1bn funding round.

Mullen said that he was optimistic that Atom could secure a higher valuation. Atom had been valued at £530mn in 2019 after a £50mn fundraise with investors including the now collapsed fund of Neil Woodford, which had been among its biggest backers.

To date Atom, which last year moved the majority of its 430 employees to a four-day working week without affecting salaries, has raised roughly £500mn.

In November, Atom announced a £500mn deal with mortgage lender Landbay as it sought to return to the market having left it temporarily because of the Covid-19 pandemic.

“What’s been remarkable is both the inflation [of] house prices but equally the level of competition especially in the last three or four months,” said Mullen.

>>> What to look at today - 16th of February 2022

Stocks rose Wednesday and crude oil held a drop as traders weighed the prospect of diminishing tension over Ukraine and the risk of further twists after Russia said it was withdrawing some forces. Shares were up in Japan, Hong Kong and China, where slowing inflation is boosting the central bank’s scope to ease policy to prop up growth. U.S. contracts fell after tech stocks helped the S&P 500 snap three days of losses. Russia announced a partial pullback of thousands of troops massed near the Ukrainian border and appeared to favor a diplomatic solution to the crisis there. President Joe Biden said the U.S. has yet to verify Moscow’s claims and an invasion remains possible, which the Kremlin has repeatedly denied.  Oil was around $92 a barrel as traders reassessed worries about potential disruptions to commodity supplies. Havens like longer-maturity Treasuries and gold that sold off in the past 24 hours largely maintained those losses. At the same time, other parts of global markets are flashing ongoing nervousness. Volatility gauges for both the S&P 500 and the Treasury market are sitting significantly above 12-month averages, a sign that traders remain on edge about risks such as the Ukraine standoff. The latest data from China showed elevated but easing factory-gate inflation, raising tentative hopes that the manufacturing powerhouse could help to curb global price pressures if the trend continues. For now, investors are continuing to fret about escalating costs and the likelihood of tightening monetary policy in places like the U.S. and Europe. Biden said Russian troops remain in a “threatening position.” He agreed with a Kremlin declaration Monday that diplomacy is still possible but vowed he would not “sacrifice basic principles” that countries -- including Ukraine -- should have the right to keep their own borders. 
Traders are awaiting the latest Federal Reserve minutes later Wednesday. They may shape views on how fast the Fed will raise interest rates and shrink its bond holdings in coming months.

Nikkei +2,22% Hang Seng +1,07% CSI +0,30% Shanghai +0,44% Shenzen +0,40%

S&P -0,15% Nasdaq -0,21% EuroStoxx +0,47% FTSE +0,27% Dax +0,47% SMI +1,37%

Macro :
- Europe May Not Approve Merck’s Covid-19 Antiviral Pill: FT
- China Jan. Consumer Prices +0.9% Y/y; Est. +1%

Keep an eye on :
- ADJ GY : Adler Group Elects Stefan Kirsten as Chairman of Board
- AIR FP : Boeing’s 787 Dreamliner Jets Ordered Inspected by FAA Regulators
- AIR FP : Airbus Workers Authorize Strike Over Pay at U.K. Wing Plants
- AI FP : Air Liquide May See Operating Margin Pressure in 4Q: Preview
- AAD GY : Amadeus Fire Prelim FY Revenue EU372.4M
- ALC SW : Alcon 4Q Core EPS Beats Estimates
- BB FP : BIC FY Net Sales Beats Estimates
- BMPS IM : Paschi Says No Initiative by Bank on EU3.5b Capital Increase
- BMPS IM : Italy Sees Paschi Capital Gap About $4 Billion Amid Revamp (1)
- ALCAR FP : Carmat Confirms 2022 Prospects, Implants to Resume Oct.
- DTE GY : T-Mobile Converts Airwave Advantage to Top Status in 5G Ranking
- DUFN SW : Dufry Extends Concession at Helsinki Airport for 5 More Years
- ENI IM : Eni Reports Small Hydrocarbons Release from North Wales Pipeline
- FDJ FP : FDJ Raises 2025 Targets Set at IPO
- G IM : Delfin, Fondazione CRT Confirm Shareholders Pact on Generali
- HEIA NA : Heineken FY Org. Beer Volume +4.6%, Est. +4.5%
- HEX NO : Hexagon Purus Offering of 24.7m Shares Prices at NOK24.25/Share
- LGEN LN : Legal & General to Invest $3.4B in U.K. Build-to-Rent Market
- LIO LN : Liontrust Faces Investor Opposition Over Pay Awards: Sky
- MMT FP : M6 FY Ebita Beats Estimates
- MBTN SW : Meyer Burger CFO Nathalie Benedikt Leaves for Private Reasons
- MOWI NO : Mowi 4Q Dividend per Share NOK1.40
- NEOEN FP : Neoen Boosts FY Ebitda Margin Forecast
- NEX FP : Nexans Targets 2022 Ebitda of EU500M-EU540M
- NOEJ GY : Norma FY Prelim Adj Ebit EU113.8M vs EU45.3M
- ONTEX BB : Ontex Shares Rise After Betaville ‘Uncooked Alert’
- SCHP SW : Schindler 4Q Revenue Meets Estimates
- VCT FP : Vicat FY Ebitda Beats Estimates
- VTSC GY : Vitesco Prelim FY Revenue About EU8.35B, Est. EU8.43B
- VPK NA : Vopak FY Rev. EU1.23B, Est. EU1.24B
- XIOR BB : Xior FY Net Rental Income EU79.6M Vs. EU57.9M Y/y