Stocks, Data, Earnings, WEF News

CNBC Pro: Morgan Stanley says cheaper EVs are coming – and names the global stocks that will benefit

As electric cars become more popular, Morgan Stanley says there is interest in a new manufacturing technique that could make them more affordable.

Some automakers are outsourcing the process, which could benefit three leading Asian parts suppliers, the Wall Street bank said.

CNBC Pro subscribers can read more here.

— Ganesha Rao

Oil prices are rising on more optimism in China and recovery in demand

Oil prices are supported by further reopened optimism and fuel demand in China, with OPEC predicting Chinese oil demand is on track for an uptick.

Brent crude oil futures rose 0.85% to $86.65 a barrel, while US West Texas Intermediate futures gained 0.91% to $80.91 a barrel.

“China’s oil demand is on track to recover following the country’s recent easing of zero-Covid measures,” OPEC’s monthly oil report said.

It added that China’s oil demand in the first quarter will recover from an annual decline of 0.3 million barrels per day year-on-year in the fourth quarter of 2022 to 0.2 million barrels per day on an annualized basis.

— Lee Ying Shan

CNBC Pro: Thinking of Jumping Back into Big Tech? This investor is wary of 2 stocks in particular

Bank of America sees a later onset of the recession

A recession is now unlikely to begin until later in 2023, as consumer spending is stronger than expected and the Federal Reserve eases the intensification of its rate hikes, according to Bank of America.

“We are adjusting the timing of our outlook for a mild recession in the US economy by about a quarter given continued consumer spending driven by strong labor markets, excess savings, falling energy prices and easier financial conditions,” the company said in a press release. a customer note. “That said, we think the headwinds will lead consumers to reduce their spending and increase the savings rate as the year progresses.”

That brings the recession into the second quarter, driven by an investment-induced slowdown that spills over into consumer spending.

After raising the benchmark interest rate by 4.25 percentage points in 2022, the Fed is expected to ease, rising 0.25 percentage points in February. That is expected to be followed by additional quarter-point increases in March and May.

Rate cuts probably won’t come until 2024, the company said.

—Jeff Cox

European markets: Here are the opening calls

European markets are heading for a mixed open Wednesday as investors remain uncertain about the economic outlook, a topic that was high on the agenda this week at the World Economic Forum in Davos.

That of the UK FTSE 100 index is expected to open 12 points lower at 7,832, Germany DAX 31 points higher at 15,203, France CAC 19 points up to 7,085 and Italy’s FTSE MIB Up 37 points to 25,982, according to data from IG.

CNBC will address a range of delegates at the World Economic Forum on Wednesday, including the CEOs of Unicredit, Infosys, Nokia, Aramco and Credit Suisse, as well as the finance ministers of Greece and Poland and the foreign minister of Saudi Arabia, and many others. Follow our coverage here.

— Holly Ellyatt