Tag Archives: business news

Kohl’s names interim CEO Tom Kingsbury to the post permanently

The Kohl’s logo is displayed on the exterior of a Kohl’s store on January 24, 2022 in San Rafael, California.

Justin Sullivan | Getty Images

Kohl’s on Thursday named interim CEO Tom Kingsbury to the post on a permanent basis.

He took over as interim CEO in December after former chief executive Michelle Gass decided to leave for Levi Strauss. Kingsbury’s appointment had been expected.

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The company also said activist investor Macellum Advisors agreed to back off its pressure campaign.

“The Board appreciates our constructive dialogue with Macellum during the last few months and their engagement as we conducted the CEO search process. We look forward to their continued support and partnership,” said Michael Bender, a board director at Kohl’s.

In October, Macellum had been pushing for board seats at the struggling retailer.

Shares of Kohl’s were little changed in after-hours trading on Thursday.

Read the full release from Kohl’s.

This is breaking news. Please check back for updates.

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Ford (F) earnings Q4 2022

Ford CEO Jim Farley takes off his mask at the Ford Built for America event at Fords Dearborn Truck Plant on September 17, 2020 in Dearborn, Michigan.

Nic Antaya | Getty Images

DETROIT – Ford Motor is set to report its fourth-quarter earnings after the bell Thursday. Here’s what Wall Street is expecting, according to Refinitiv consensus estimates:

  • Adjusted earnings per share: 62 cents
  • Automotive revenue: $40.37 billion

In October, Ford confirmed its prior full-year guidance of adjusted earnings before interest and taxes of between $11.5 billion and $12.5 billion. Through the first three quarters of the year, its brought in $7.9 billion, led by its North American operations.

If Ford meets or exceeds Wall Street’s top- and bottom-line expectations, EPS would more than double the 26 cents it reported for the same period a year earlier. Revenue would be an increase of 14.5% from the fourth quarter of 2021.

While investors will be monitoring the fourth-quarter results for signs of any waning consumer demand or profit dilution, Ford’s 2023 guidance is expected to be more of a focus.

Wall Street expects Ford’s full-year 2023 adjusted earnings per share outlook to mark a nearly 16% decline from 2022, according to Refinitiv estimates. That’s despite forecasting full-year revenue up 3.4% year over year to more than $151 billion, signaling lower operational profit compared with recent years.

Automakers have posted record or near-record results during the coronavirus pandemic amid a tight supply of new vehicles and resilient consumer demand. But that scenario is slowly normalizing, leaving new vehicle prices and profits in flux.

On Monday, Ford cut the price of its electric Mustang Mach-E, an early sign of a burgeoning EV price war spurred by Tesla.

Earlier Thursday, Ford reported January new vehicles sales that showed slight improvement over the same period last year.

There’s pressure on Ford to deliver a strong fourth quarter and relatively solid guidance. Crosstown rival General Motors on Tuesday significantly outperformed Wall Street’s expectations. The automaker also forecast stronger-than-expected 2023 results, including adjusted earnings before interest and taxes of $10.5 billion to $12.5 billion and adjusted earnings per share of between $6 and $7.

This is breaking news. Please check back for updates.

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S&P 500 rises to the highest level in five months Thursday as Meta leads a tech comeback

The S&P 500 rose to its highest level in five months on Thursday as better-than-expected Meta results further improved sentiment around technology shares, which led the market lower last year.

The broader market index jumped 1.4%, or its best level since August. Meanwhile, the tech-heavy Nasdaq Composite advanced about 3% to its highest level since September. The gains come ahead of a trio of Big Tech results after the bell in Apple, Amazon and Alphabet.

Meanwhile, the Dow Jones Industrial Average underperformed, falling 102 points, or about 0.3%. The major index was dragged by Merck shares after the pharmaceutical firm issued a weak outlook in its latest earnings results, despite beating estimates on the top and bottom lines.

Meta surged more than 25% in its best day since 2013 after reporting a fourth-quarter beat on revenue and announcing a $40 billion stock buyback. That helped investors look past losses in the business unit overseeing the metaverse.

Other mega-cap tech stocks rose on the back of those results. Shares of Google-parent Alphabet were up more than 6%, while Amazon jumped more than 6%. Apple shares gained more than 3%.

Tech stocks have outperformed in 2023, buoyed by recent signals of cooling inflation that investors expect could lead to a pause from the Federal Reserve in its aggressive rate hiking campaign. The S&P 500 information technology sector is up more than 14% this year after a decline of more than 28% last year.

“It’s showing that growth is outperforming value as it unwinds some of the pressures that hawkish rhetoric brought to risk markets over the course of 2022,” said Keith Buchanan, senior portfolio manager at GLOBALT Investments.

Wall Street is coming off a winning session after the Fed on Wednesday announced a 0.25 percentage point interest rate hike. While the central bank gave no indication of an upcoming pause in rate hikes, investors were encouraged by the smaller increase and Chair Jerome Powell’s comments recognizing easing inflation.

Traders are awaiting the latest jobs report Friday that will give further insight into the labor market. Any signs of cooling could suggest to investors that further rate hikes are off the table.

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Latest news on Russia and the war in Ukraine

European delegation in Kyiv to discuss strengthening ties, EU membership

Ukraine’s President Volodymy Zelenskyy welcomed a delegation of top European Union officials to Kyiv on Thursday for two days of important talks of strengthening ties between the country and the bloc, as well as the more thorny issue of Ukraine’s application to join the EU.

“We are starting two very important European integration days in Ukraine. This is the time when our joint agreements and decisions here in Kyiv will mean the strengthening of the entire Europe,” Zelenskyy said on Telegram.

Earlier Thursday, European Commission President Ursula von der Leyen arrived in Kyiv with other EU officials, tweeting that it was good to be back in Ukraine’s capital for talks. An EU-Ukraine summit is due to take place Friday.

Zelenskyy said Tuesday that Kyiv was preparing new reforms as it looks to woo the EU to fast-track its membership application. The reforms, Zelenskyy said, would “change the social, legal and political reality in many ways, making it more human, transparent and effective.”

“We are expecting news for Ukraine. We are expecting the decisions from our partners in the European Union that will be in line with the level of cooperation achieved between our institutions and the EU, as well as with our progress,” Zelenskyy added.

Ukraine applied to join the 27-member political and economic bloc last year, just days after Russia invaded in February, and wants its application fast-tracked. Ukrainian Prime Minister Denys Shmyhal said earlier this week that Kyiv hopes it can join the EU within two years.

Other counties in Europe, such as North Macedonia and Montenegro, have been waiting more than a decade to have their membership applications progress, however, and there are expectations that EU officials could try to temper Ukraine’s expectations during their visit.

—Holly Ellyatt

Russia could launch large-scale offensive on Feb.24, Ukraine’s defense minister says

Minister of Defense of Ukraine Oleksii Reznikov speaks during presentation of distinctions and diplomas to residents of Kyiv on January 17, 2023 in Kyiv, Ukraine.

Global Images Ukraine | Getty Images

Ukraine’s Defense Minister Oleksiy Reznikov said Kyiv believes Russia will launch a new offensive on February 24, the one-year anniversary of the invasion.

Speaking to France’s BFM TV network Wednesday evening, Reznikov said Ukraine’s armed forces are expecting a new, large-scale military action by Russia in the coming weeks

“We think that, given that they [the Russians] live in symbolism, they will try to try something around February 24,” Reznikov said, BFM TV reported, in comments translated by Google.

“We do not underestimate our enemy,” Reznikov said. He claimed that the true number of troops Russia has mobilized since last September to fight in Ukraine could be around half a million — far more than announced by President Vladimir Putin.

“Officially, they announced 300,000 [soldiers were being mobilized], but when we see the troops at the borders, according to our assessments it is much more,” the minister said.

On Thursday, Russian Foreign Minister Sergei Lavrov hinted that his country has plans to overshadow pro-Ukrainian events around the world to mark the first anniversary of the war, Reuters reported.

Lavrov said Russian diplomats were working on something to ensure Western-led events were “not the only ones to gain the world’s attention,” without providing further details.

— Holly Ellyatt

More explosions reported in Kramatorsk, day after deadly missile strike

More explosions have been reported in the city of Kramatorsk in Donetsk, eastern Ukraine, less than 24 hours after residential buildings were destroyed and damaged during a missile strike Wednesday night.

“Kramatorsk again suffered from the explosions — the Russians launched two more missile strikes,” Pavlo Kyrylenko, head of the Donetsk Regional Military Administration, said on Telegram, according to a Google translation of his comments.

“Once again — the center of the city was hit, residential buildings. According to preliminary information, there are wounded among civilians.”

More details would be released soon, he said. CNBC was unable to immediately verify the report.

Rescue workers conduct search and rescue operation after Russian missile hits the residential building in Kramatorsk, Donetsk Oblast, Ukraine on February

Anadolu Agency | Getty Images

Search and rescue teams were already looking for survivors of a deadly rocket attack on residential buildings in Kramatorsk which occurred Wednesday evening. During the attack, an apartment block was completely destroyed and eight other buildings were damaged, killing at least three people and wounding 20 others, Donetsk’s police force said.

It added that Russian troops had targeted a residential sector of the city with an “Iskander-K” cruise missile.

— Holly Ellyatt

Top Ukrainian and U.S. officials discuss war, possible next moves by Russia

Ukraine’s presidential office said Thursday that the Head of the Office of the President Andriy Yermak and Valerii Zaluzhnyi, the commander of Ukraine’s armed forces, had spoken on the phone with U.S. National Security Advisor Jake Sullivan and Chairman of the Joint Chiefs of Staff General Mark Milley (pictured) on Thursday.

Andre Pain | AFP | Getty Images

Top Ukrainian officials have held talks with their U.S. counterparts regarding the military situation in Ukraine, looking ahead to Russia’s offensive action expected imminently.

Ukraine’s presidential office said Thursday that the Head of the Office of the President Andriy Yermak and Valerii Zaluzhnyi, the commander of Ukraine’s armed forces, had spoken on the phone with U.S. National Security Advisor Jake Sullivan and Chairman of the Joint Chiefs of Staff General Mark Milley on Thursday.

“They were informed about the current situation at the front, in particular in the Donetsk and Southern directions,” the president’s office said in a statement, adding that “there was an exchange of views regarding the possible actions of the enemy in the near future.”

Ukraine thanks the U.S. for its ongoing support, the statement read, in terms of its defense capabilities and its anti-corruption crackdown, saying the government is “determined to comprehensively contribute to the cleansing of authorities from corruption risks.”

— Holly Ellyatt

Austria expels four Russian diplomats

Austrian police stand guard in front of the Russian embassy in Vienna.

Alex Halada | Afp | Getty Images

Austria named four Russian diplomats, two at the Russian Embassy and two working at Moscow’s mission to the United Nations in Vienna, as personae non gratae, the Austrian Foreign Ministry said Thursday.

The diplomats are alleged to have acted “in a manner incompatible with their diplomatic status,” the ministry said, without giving further details. The move is unusual for Austria, which has traditionally enjoyed cordial relations with Russia before Moscow invaded Ukraine.

The four diplomats have a week to leave Austria, the ministry said.

— Holly Ellyatt

Russia’s Lavrov promises to overshadow pro-Ukraine anniversary events

A Russian soldier walks amid the rubble in Mariupol’s eastern side where fierce fighting between Russia/pro-Russia forces and Ukraine on March 15, 2022.

Maximilian Clarke | SOPA Images | Lightrocket | Getty Images

Russian Foreign Minister Sergei Lavrov said on Thursday that Moscow had plans to overshadow pro-Ukrainian events arranged by Western and allied countries around the world to mark the anniversary of Russia sending its armed forces into Ukraine on Feb. 24.

Lavrov said Russian diplomats were working on something to ensure Western-led events in New York and elsewhere were “not the only ones to gain the world’s attention,” without providing details.

— Reuters

Russia likely damaging its reputation as an arms exporter, UK says

Military vehicles at a plant that is part of Russian missile manufacturer Almaz-Antey, in St. Petersburg, on Jan. 18, 2023.

Ilya Pitalev | Afp | Getty Images

It’s highly likely that Russia’s role as a reliable arms exporter is being undermined by its invasion of Ukraine and international sanctions and could be disrupted for several years, Britain’s Ministry of Defense said Thursday.

“Even before the invasion, Russia’s share of the international arms market was declining. Now, when faced with conflicting demands, Russia will almost certainly prioritise deploying newly produced weapons with its own forces in Ukraine over supplying export partners,” the ministry said in its daily intelligence update.

A shortage of components is likely affecting the production of equipment for export, such as armored vehicles, attack helicopters and air defense systems, the ministry noted.

“In addition, Russia’s ability to sustain support services for existing export contracts, such as providing spare parts and maintenance, is likely to be seriously disrupted for at least the next three to five years,” it added.

— Holly Ellyatt

Rescue operations continue in Kramatorsk

Emergency services continue to work in Kramatorsk Thursday after a residential building was destroyed during a Russian rocket attack last night.

As a result of the attack, three storeys of a four-story residential building were destroyed, with the blast then setting fire to parked cars, the State Emergency Service said on Telegram.

Three people died in the attack and two others have been rescued. A total of 18 people were injured as a result of the attack, and eight of them have been hospitalized. The emergency services said 183 people and 18 units have been involved in rescue operations.

— Holly Ellyatt

‘We all want this to end’ but what matters is war’s outcome — not duration, Lavrov says

Russian Foreign Minister Sergei Lavrov said everyone wants the conflict in Ukraine to end, but what matters to Russia is the outcome of the war, not the duration.

Alexander Zemlianichenko | Reuters

Russian Foreign Minister Sergei Lavrov said everyone wants the conflict in Ukraine to end, but what matters to Russia is the outcome of the war, not the duration.

“We all want this to end, but it’s not the time factor that matters here … [but] the quality of the results that we will provide for our people, for those people who want to remain part of Russian culture,” Lavrov told TV journalist Dmitry Kiselev on Thursday in comments reported by state news agency Tass.

Lavrov added that the more long-range weapons are supplied to Kyiv, the further they need to be moved away from Russia and territory that it considers Russian (such as Crimea and four Ukrainian regions it declared it had annexed last year).

“If now we are striving to move the artillery of the Ukrainian armed forces to a distance that will not pose a threat to our territories, then the more long-range weapons are supplied to the Kyiv regime, the further they will need to be moved away from the territories that are part of our country,” Lavrov said.

— Holly Ellyatt

Search for survivors continues after Kramatorsk rocket attack

Rescuers remove debris to search for survivors at a destroyed apartment building hit by a rocket in downtown Kramatorsk on Feb. 1, 2023.

Yasuyoshi Chiba | Afp | Getty Images

The search for survivors is continuing in Kramatorsk after a deadly rocket attack on residential buildings in the city in Donetsk, eastern Ukraine.

More than 100 police officers are working at the site of the attack in which three civilians were killed and 20 wounded, the Donetsk police said in a statement Wednesday night.

The police said Russian troops had targeted a residential sector of the city with an “Iskander-K” missile — a Russian-made mobile short-range cruise missile, adding that at least eight apartment buildings were damaged and one of them was completely destroyed.

“People may still remain under the rubble. The enemy attack took place at 21:45 [local time]. A search and rescue operation is currently underway,” the police said in comments translated by NBC News.

Rescuers remove debris to search for survivors at a destroyed apartment building hit by a rocket during the night in Kramatorsk on February 1, 2023.

Yasuyoshi Chiba | Afp | Getty Images

It added that 11 investigative and operative groups, explosives experts, dog experts, paramedics, patrol police and other units were working on site. The police said that they are documenting the incident as a war crime.

Russia has repeatedly denied targeting civilian infrastructure during the war but numerous residential buildings, hospitals and other civilian infrastructure such as schools and theaters have been damaged or destroyed during the almost one-year long conflict.

— Holly Ellyatt

Ukraine says Russia is actively conducting reconnaissance, preparing for offensive

Russia is actively conducting reconnaissance operations and is preparing for an offensive in Donetsk, eastern Ukraine, the military said Thursday.

Russia “is active in reconnaissance and preparing for an offensive on certain axes,” a spokesperson for the General Staff of the Armed Forces of Ukraine, Oleksandr Shtupun, said in an update Thursday morning.

“Despite heavy losses, Russians continue to attempt offensives on Lyman, Bakhmut, Avdiivka, and Novopavlivka axes,” he said.

On the previous day, Russia launched six missile strikes, four of which targeted civilian infrastructure in the settlements of Sloviansk, Kramatorsk, and Druzhkivka (in the Donetsk region), as well as four air strikes and 73 strikes using MLRS (Multiple Launch Rocket Systems), Shtupun said.

CNBC was unable to verify the information, although missile strikes were reported in Sloviansk and Kramatorsk on Wednesday, including a deadly attack on residential buildings in Kramatorsk in which at least three people died and 20 others were injured.

“The threat of Russian air and missile strikes across Ukraine remains high,” Shtupun said.

Ukrainian servicemen make a trench near Bakhmut on Feb. 1, 2023, as they prepare for a Russian offensive in the area.

Yasuyoshi Chiba | Afp | Getty Images

Russian forces and mercenaries from the Wagner Group, a private military company, have been attempting to capture Bakhmut in Donetsk for months and have claimed to have made advances toward their target in recent weeks. Several Russian officials said Wednesday that Bakhmut was essentially surrounded on three sides.

Ukraine’s General Staff said Wednesday that its forces had repelled attacks in the vicinities of various settlements in Donetsk, including Bakhmut, and neighboring Luhansk.

— Holly Ellyatt

Ukrainian prosecutor general says Russia has committed more than 65,000 war crimes, reiterates calls for special tribunal

Ukraine’s Prosecutor General Andriy Kostin participates in a panel discussion at Georgetown Law in Washington, D.C., on February 1, 2023.

Amanda Macias | CNBC

Ukraine’s Prosecutor General Andriy Kostin said Wednesday that regional authorities have registered more than 65,000 Russian war crimes since Moscow’s conflict began nearly a year ago.

“We have all witnessed with horror the evidence of atrocities committed in Bucha, Irpin, Mariupol, Izium, Kherson, Kharkiv regions and other liberated cities and towns,” Kostin said, adding that Ukrainian authorities have discovered mass burial sites in areas occupied by Russian troops.

“These crimes are not incidental or accidental, they include indiscriminate shelling of civilians, willful killing, torture, conflict-related sexual violence, looting and forced displacement on a massive scale,” he added in remarks at the Georgetown Law School in Washington.

His comments add to an emerging picture of the horrors experienced during nearly a year of war in Ukraine. The conflict has shown few signs of ending soon, even as local and international officials try to probe potential crimes committed over recent months in Ukraine.

In a separate discussion with journalists, Kostin said he believed Kyiv was close to gaining U.S. support to establish a special tribunal to prosecute Russia’s crimes of aggression.

Read the full story here.

— Amanda Macias

Russian journalist sentenced for speaking out on Ukraine

A damaged car and pile of debris are seen as the Russia-Ukraine War continues in Bakhmut, Ukraine on January 28, 2023.

Marek M. Berezowski | Anadolu Agency | Getty Images

A court in Moscow sentenced a Russian journalist in absentia to eight years in prison on charges of disparaging the military, the latest move in the authorities’ relentless crackdown on dissent.

Alexander Nevzorov, a television journalist and former lawmaker, was convicted on charges of spreading false information about the military under a law that was adopted soon after Russian President Vladimir Putin sent troops into Ukraine. The law effectively exposes anyone critical of the Russian military action in Ukraine to fines and prison sentences of up to 10 years.

Nevzorov was accused of posting “false information” on social media about the Russian shelling of a maternity hospital in the Sea of Azov port of Mariupol. Moscow has fiercely denied its involvement.

Nevzorov, who moved abroad after the start of the Ukrainian conflict, didn’t have an immediate comment on the verdict.

— Associated Press

Ex-Wagner Group member apologizes to Ukrainians in Norway

A pedestrian walks past a mural depicting the logo of the Russian mercenary ‘Group Wagner’ and a slogan in Russian by the informal pro-Russia organisation ‘Narodna Patrola (lit.: People Patrol), on January 20, 2023 in Belgrade, Serbia.

Srdjan Stevanovic | Getty Images

A former member of the Russian private military contractor Wagner Group who’s seeking asylum in Norway has apologized to Ukrainians living in the Scandinavian country, who object to his presence there.

“I’m a scoundrel to you, but I only ask you to take into account that I have come to realize that, albeit belatedly, and I spoke against all that,” Andrey Medvedev said in an excerpt from his interview to Norwegian broadcaster NRK that was posted online Tuesday. “I ask you not to condemn me, and in any case I apologize.”

Medvedev who has said that he fears for his life if he returns to Russia, lives in a center for asylum seekers in Oslo. He illegally crossed into Norway, which has a 198-kilometer (123-mile) -long border with Russia, earlier this month.

Medvedev has said that he left the Wagner Group after his contract was extended beyond the July-November timeline without his consent. He said he’s willing to testify about any war crimes he witnessed and denied participating in any himself.

— Associated Press

Ukraine raids home of billionaire in war-time anti-corruption crackdown

A picture taken on March 2015 by Unian agency shows Ukrainian billionaire Igor Kolomoisky speaking during the Ukrainian Football Federation session in Kiev. Ukraine’s president has dismissed Igor Kolomoisky, one of the country’s most controversial tycoons from his regional governor’s post, his office said on March 25, 2015.

Vladyslav Musienko | AFP | Getty Images

Security services searched the home of one of Ukraine’s most prominent billionaires, moving against a figure once seen as President Volodymyr Zelenskiy’s sponsor in what the authorities called a war-time anti-corruption purge.

Photographs circulating on social media appeared to show Ihor Kolomoiskiy dressed in a sweatsuit and looking on in the presence of an SBU security service officer at his home.

The action, days before a summit with the European Union, appears to reflect determination by Kyiv to demonstrate that it can be a steward of billions of dollars in Western aid and shed a reputation as one of the world’s most corrupt states.

The SBU said it had uncovered the embezzlement of more than $1 billion at Ukraine’s biggest oil company, Ukrnafta, and its biggest refiner, Ukrtatnafta. Kolomoiskiy, who has long denied wrongdoing, once held stakes in both firms, which Zelenskiy ordered seized by the state in November under martial law.

Separate raids were carried out at the tax office, and the home of Arsen Avakov, who led Ukraine’s police force as interior minister from 2014-2021. The SBU said it was cracking down on “people whose actions harm the security of the state in various spheres” and promised more details in coming days.

— Reuters

Vladimir Putin is now fighting for his own political survival: former German ambassador to Russia

Russian President Vladimir Putin’s inability to score a decisive win on the battlefield or subjugate Ukraine to his will means he is now fighting for his own political survival via the war, according to Rüdiger von Fritsch, former German ambassador to Russia and partner at Berlin Global Advisors.

Bakhmut surrounded on three sides, Russian official says

Ukrainian soldiers return from the front line in Bakhmut, Ukraine on Jan. 29, 2023.

Marek M. Berezowski | Anadolu Agency | Getty Images

Russian forces have almost completely surrounded Bakhmut in Donetsk, eastern Ukraine, according to a Russian-installed official.

“Artemovsk [the Russian name for Bakhmut] is now in an operational encirclement, our forces are closing the ring,” Yan Gagin, an aide to Denis Pushilin, the acting head of the pro-Russian, separatist “Donetsk People’s Republic,” told the Rossiya-24t tv channel, according to state news agency Tass.

Gagin said battles are now taking place to control the highway between Bakhmut and the nearby town of Chasiv Yar. He said “this is the only artery through which Ukraine can supply its group in Artemovsk.”

CNBC was unable to immediately verify the claims but Russian forces have been trying to capture Bakhmut for months and have been seen to have been advancing in the area in recent weeks.

— Holly Ellyatt

Zelenksyy signals Kyiv ready to unroll new reforms as it pursues EU membership

Ukraine will host European Commission President Ursula von der Leyen and other top EU officials on Friday, with hopes high in Kyiv that its application to join the EU will continue to progress.

Sergei Supinsky | AFP | Getty Images

Ukraine’s President Volodymyr Zelenskyy said Tuesday that Kyiv is preparing new reforms as it prepares for a summit with top EU officials at the end of the week.

“We are preparing new reforms in Ukraine. Reforms that will change the social, legal and political reality in many ways, making it more human, transparent and effective. But these details will be announced later, based on the results of the relevant meetings,” Zelenskyy said in his nightly address.

Ukraine will host European Commission President Ursula von der Leyen and other top EU officials on Friday, with hopes high in Kyiv that its application to join the EU will continue to progress.

“This week will be a week of European integration in every sense of the word,” Zelenskyy said. “We are expecting news for Ukraine. We are expecting the decisions from our partners in the European Union that will be in line with the level of cooperation achieved between our institutions and the EU, as well as with our progress. Progress, which is obvious – even despite the full-scale war,” he said.

“We are preparing Ukrainian positions for negotiations with EU representatives,” he added.

Ukraine applied to join the 27-member political and economic bloc last year, just days after Russia invaded last February, and wants its application fast-tracked. Ukrainian Prime Minister Denys Shmyhal said earlier this week that Kyiv hopes it can join the EU within two years.

Other counties in Europe, such as North Macedonia and Montenegro, have been waiting more than a decade to have their membership applications progress, however, and there are expectations that EU officials could try to temper Ukraine’s expectations during their visit.

— Holly Ellyatt

Read CNBC’s previous live coverage here:

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European Central Bank raises rates by 50 basis points, pledges further hike in March

Christine Lagarde, president of the European Central Bank speaks at an event.

Bloomberg | Bloomberg | Getty Images

The European Central Bank on Thursday confirmed expectations of a 50 basis point interest rate increase, taking its key rate to 2.5%.

In a statement, it pledged to “stay the course in raising interest rates significantly at a steady pace” and, in unusually firm language, said it intended to hike by another 50 basis points in March.

It said keeping rates at restrictive levels would control price rises by dampening demand and keeping inflation expectations under constrained. Decisions at future meetings will be data-dependent, it added.

The move follows four hikes in 2022 which brought euro zone rates out of negative territory for the first time since 2014.

Euro zone inflation fell for the third straight month in January, flash figures published Wednesday showed, but headline inflation remained high at 8.5%. Core inflation, which excludes energy and food, was flat at 5.2%.

Attention now turns to Thursday’s speech and press conference by Lagarde, which begins at 2:45 p.m. Frankfurt time, for an indication of the central bank’s latest outlook on the economy and further details of its plans for hiking and quantitative tightening.

In December, it announced that from March it would begin to reduce its 5 trillion euro ($5.49 trillion) balance sheet by 15 billion euros per month on average until the end of June 2023.

On Thursday, it said that in line with current practice it would continue partial reinvestments of its maturing debt.

“The remaining reinvestment amounts will be allocated proportionally to the share of redemptions across each constituent programme of the APP (Asset Purchase Programme) and, under the public sector purchase programme (PSPP), to the share of redemptions of each jurisdiction and across national and supranational issuers,” its statement said.

This is a breaking news story. Please check back for updates.

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Biden’s IRA has left Europe blind-sided. And playing catchup could lead to 2 big mistakes

US President Joe Biden, front, and Ursula von der Leyen, president of the European Commission.

Bloomberg | Bloomberg | Getty Images

The European Union is working against the clock to create a program to rival President Joe Biden’s unprecedented climate subsidies. But it’ll face two key issues in the process.

The EU had, for a long time, asked the United States to be more active on climate policy. Biden delivered on that with the Inflation Reduction Act. But it has raised competition issues for European businesses — which has upset politicians in the region. Brussels has been left considering how best to respond.

“U.S. legislation doesn’t pass overnight,” Emre Peker, director at the consultancy group Eurasia, told CNBC, adding that the EU could have acted faster.

“The EU was asleep at the wheel … with 28 representations in Washington, Europeans could’ve done more to counteract the IRA before its adoption.”

The U.S. Inflation Reduction Act, also referred to as IRA, was approved by U.S. lawmakers in August and includes a record $369 billion in spending on climate and energy policies.

Among other aspects, it provides tax credits to consumers who buy electric cars that were made in North America — this could automatically make European-made EVs less attractive to buyers because they are likely to be more expensive.

We will continue to further invest into the region to achieve significant growth.

Some European firms have recently announced investment plans in the U.S. to benefit from an anticipated pick-up in demand. And more could follow suit.

Volkswagen has ambitious targets for the North American region. We now have a unique chance to grow profitably and to grow electric in the U.S.,” a spokesperson for the German company, one of the biggest car manufacturers in Europe, told CNBC via email.

Enel, an Italian energy firm, is concentrating 85% of its 37 billion euro ($40.2 billion) investments between 2023 and 2025 in Italy, Spain and the U.S.

“Specifically relating to public support policies, the IRA encompasses unprecedented measures on green tech and we think it could act as a stimulus for the EU to move forward in that direction, in order to support a substantial scale-up of renewable technologies which are key for our continent’s energy independence,” a spokesperson for the company told CNBC via email.

Luisa Santos, deputy director at BusinessEurope, a group of business federations, told CNBC that “it is still a bit early to say who will invest where.” “But it is very clear some companies will invest in the U.S. in any case,” she added, referencing an expected surge of investment toward the U.S. — at the expense of Europe.

Outspending others

European officials are currently looking at relaxing state aid rules so governments have more room to financially support key companies and sectors.

The European Commission, the executive arm of the EU, is due to present a proposal in the coming weeks.

But this solution might not be ideal. Countries with bigger budgets will be able to deploy more funds than poorer nations, which risks the integrity of the EU’s much-vaunted single market — where goods and people move freely and which accounts for more than 440 million consumers.

Belgian Prime Minister Alexander de Croo told CNBC that more state aid “is not a good answer.”

“There’s a level playing field [in Europe]. Belgium is a small market, very open economy, Germany is a big market. If this becomes a race of who has the deepest pockets we are all going to lose and it would lead to a subsidy war with the United States,” de Croo said earlier this month.

Several other experts have also raised concerns about easing state aid rules. Former Italian Prime Minister Mario Monti told Politico Europe this is a “dangerous” approach.

In a letter issued last month and seen by CNBC, Europe’s Competition Chief Margrethe Vestager said: “Not all member states have the same fiscal space for State Aid. That’s a fact. And a risk for the integrity of Europe.”

Slow to respond

In addition to challenges with state aid relaxation, timing is also a risk.

European officials will discuss and decide how to provide more green incentives for the medium to long-term. On the one hand, some argue that current European investment programs should be redeployed toward these subsidies. But on the other hand, others argue that the bloc will need to raise fresh cash to implement such a huge project.

Thus, it’ll likely turn into a deep and strained political matter that could drag for awhile.

Paolo Gentiloni, Europe’s economics commissioner, said Tuesday in Berlin that there are “different views” on the table.

“But I am satisfied there is a clear intention to engage in this discussion,” he said following conversations with Germany’s Finance Minister Christian Lindner, who’s previously stated he would not support new public borrowing.

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Potential U.S. ban investment on Chinese tech could hurt these sectors

The Biden Administration has said the U.S. is in competition with China and restricted the ability of American businesses to sell high-end chip tech to China.

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BEIJING — A ban on U.S. investment in Chinese tech could drive up market volatility — but some sectors may escape untouched, Bank of America analysts said.

The White House is reportedly considering an executive order to ban U.S. investment into high-end Chinese tech, such as artificial intelligence, quantum computing, 5G and advanced semiconductors, according to a Politico report last week.

It’s unclear whether or when such a rule might take effect. The report indicated ongoing internal debate within the U.S. government.

“If there were a strict investment ban on US investors, it could create a significant supply of shares over the grace period and hence potential large volatility in the near term,” Bank of America’s Hong Kong-based research analysts said in a note Tuesday. “Potential long-term impact is less clear.”

“Though AI is quite prevalent in today’s online world, companies that don’t have a large business in external AI solutions [will] likely see a lower chance [of] being targeted by the U.S. side,” the analysts said.

“Online travel companies, pureplay game and music companies, online verticals in auto and real estate, niche eCommerce specialties, and logistics-focus eCommerce companies are some of the examples,” the Bank of America report said.

The analysts did not name specific stocks.

Chinese stocks have recently tried to rebound after a plunge in the last two years.

The country ended its stringent zero-Covid policy in December. In the second half of last year, the U.S. and China also reached an audit deal that significantly lowered the risk Chinese companies would have to delist from U.S. stock exchanges.

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Some of the U.S.-listed Chinese stocks with the largest U.S. institutional investor ownership on a percentage basis included KFC operator Yum China, livestreaming company Joyy and pharmaceutical company Zai Lab, according to a Jan. 25 Morgan Stanley report.

Semiconductor industry company Daqo New Energy had nearly 27% U.S. institutional ownership, Morgan Stanley said.

The data showed Alibaba had the most U.S. institutional ownership by dollar value, but it only accounted for 8.2% of the stock.

In a separate report Monday, Morgan Stanley equity strategist Laura Wang pointed out the Biden administration has focused on targeting tech with ties to the Chinese military.

She noted signs of stabilization in the U.S.-China relationship, including U.S. Secretary of State Antony Blinken’s planned visit to Beijing in the coming days and the potential for Chinese President Xi Jinping to visit the U.S. during the Asia-Pacific Economic Cooperation Leaders’ Summit — set to be held in San Francisco in November.

The White House and China’s Ministry of Foreign Affairs did not immediately respond to a request for comment on the Politico report.

— CNBC’s Michael Bloom contributed to this report.

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Meta ‘Year of Efficiency’ call from Zuckerberg was what Street needed

Mark Zuckerberg, chief executive officer of Meta Platforms Inc., center, departs from federal court in San Jose, Calif., on Dec. 20, 2022.

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With one simple slogan, Meta CEO Mark Zuckerberg temporarily quelled investor discontent with his company’s multibillion-dollar investment into the futuristic metaverse.

“Our management theme for 2023 is the ‘Year of Efficiency’ and we’re focused on becoming a stronger and more nimble organization,” Zuckerberg said as part of the release of Meta’s fourth-quarter earnings report.

Following a 64% plunge in Meta’s share price in 2022, Wall Street cheered the report, sending the stock up almost 20%, extending a rally that began late last year. Based on after-hours pricing, Meta is trading at its highest since July.

Growth is not what’s getting investors excited. Meta reported better-than-expected revenue in the fourth quarter, but sales still sank 4% from a year earlier, marking the third straight quarterly decline. And the forecast range for the first quarter suggests that year-over-year revenue could increase, but it could also fall again.

Rather, Zuckerberg’s commitment to cost cuts and efficiency is a sign that increasing profitability is important to Meta, which was known as a growth machine prior to last year’s slump.

“The first 18 years I think we grew it 20%, 30% compound or a lot more every year,” Zuckerberg said on the earnings call. “And then obviously that changed very dramatically in 2022, where our revenue was negative for growth, for the first time in the company’s history.”

In looking to the future, Zuckerberg struck a realistic tone.

“We don’t anticipate that that’s going to continue,” he said, regarding the recent drop in revenue. “But I also don’t think it’s going to go back to the way it was before.”

Meta lowered its estimates for total expenses in 2023 to be in the range of $89 billion to $95 billion, down from its prior outlook of $94 billion to $100 billion. In November, the company announced it would lay off over 11,000 workers, or 13% of its staff.

Zuckerberg said Meta will be more “proactive on cutting projects that aren’t performing or may no longer be crucial” and that it will emphasize “removing layers of middle management to make decisions faster.”

Meta is also reducing spending as it builds new data centers that are intended to be more efficient while still able to power the company’s various artificial intelligence technologies. Capital expenditures are now expected to be in the range of $30 billion to $33 billion for 2023 instead of $34 billion to $37 billion.

Zuckerberg is selling investors on a story they want to hear, acknowledging that the company got bloated and needed more financial discipline. One of Zuckerberg’s top deputies, technology chief Andrew “Boz” Bosworth, wrote a personal essay just a few days ago echoing that sentiment.

Still, Meta has plenty of challenges ahead, in terms of both costs and reviving its core ad business.

Meta’s Reality Labs unit, which is responsible for developing the nascent metaverse, lost $13.7 billion in 2022. Finance chief Susan Li told analysts that the company isn’t planning for any reduction in that unit anytime soon. Zuckerberg still sees it as the company’s future.

Digital advertising, meanwhile, is suffering from a struggling economy, and Li gave no indication that companies are planning to dramatically increase their spending in 2023.

Meta has also yet to recover from Apple’s 2021 iOS privacy update that made it harder to target users with ads. Li said the company has been improving its online advertising system, but Apple’s update is “still certainly an absolute headwind to our revenue number.”

During the question and answer part of the call, Zuckerberg was asked about Meta’s progress in generative artificial intelligence, which has become the latest hot thing in Silicon Valley. His answer indicated that Meta is pursuing opportunities there, but will be cautious in how quickly it proceeds. Running these programs is expensive, and Meta needs to ensure it can develop them affordably, he said.

Zuckerberg said that while Meta is researching how best to incorporate the new technology, he wants “to be careful not to get too ahead of the development of it.”

Correction: Meta’s earnings report and CEO Mark Zuckerberg’s comments occurred after the market close on Wednesday. An earlier version misstated the day.

WATCH: Meta grows in daily active users, shares pop on revenue beat

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Peloton CEO Barry McCarthy doesn’t care Bikes, Treads lose money

Barry McCarthy speaks during an interview with CNBC on floor of the New York Stock Exchange (NYSE), October 28, 2019.

Brendan McDermid | Reuters

Peloton CEO Barry McCarthy told investors Wednesday he doesn’t care that the company is losing money on its Bike, Tread and Row equipment. The business’s “path to the promised land,” he said, is its mobile app. 

Peloton posted negative margins during the holiday quarter for its pricey connected fitness products, but McCarthy said he’s more concerned with aggregate margins, which were in the positive thanks to the company’s subscription revenue. 

“We take a holistic view of the revenue stream and the expenses associated with both the hardware and the subscription associated with it. So from my part, I don’t particularly care about the hardware margin,” McCarthy said during the company’s earnings call. 

“I care about it on an aggregate basis, and I care about the relationship between the lifetime value of the customer relative to the cost of acquisition,” he said.

In Peloton’s fiscal second quarter of 2023, ended Dec. 31, the exercise equipment company lost $42.8 million on its connected fitness products, bringing the division’s gross margin to negative 11.2%. 

The company’s overall gross margin of 29.7% was kept afloat by the $277.9 million Peloton made from its subscription business, at a margin of 67.6%. 

While subscription revenue was effectively flat quarter over quarter, it exceeded sales from Peloton’s connected fitness products for the third quarter in a row. McCarthy told CNBC it signals a possible “turning point” for the company. 

When asked about how the app, which features on-demand workout classes from the company’s pseudo-celebrity instructors, fits into the exercise equipment company’s overall strategy, McCarthy said his primary goal is to expand Peloton’s total market share by reaching a user base that it hasn’t been able to access before.

The cost of the app, which doesn’t require any Peloton equipment, is $12.99 per month compared with the $44 monthly cost for the company’s all-access membership that can be used on its connected fitness equipment. 

“I think of it as its own endgame,” McCarthy said. 

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ADP jobs report January 2022:

Job creation in the private sector plunged in January as weather-related issues sent workers to the sidelines, payroll processing firm ADP reported Wednesday.

Companies added just 106,000 new workers for the month, down from an upwardly revised 253,000 the month before. Economists surveyed by Dow Jones had been looking for a gain of 190,000.

Most of the growth came in the hospitality industry, as bars, restaurants, hotels and the like added 95,000 positions. Other growth industries included financial activities (30,000), manufacturing (23,000), and education and health services (12,000).

However, the trade, transportation and utilities sector lost 41,000, construction was off 24,000, and natural resources and mining declined by 3,000.

In all, goods-producing industries saw a net loss of 3,000 jobs, while service providers added 119,000.

Pay growth was little changed for the month, but up 7.3% from a year ago.

Despite the low headline number, ADP’s chief economist, Nela Richardson, said weather factors were at play and job growth may not have been as weak as the number indicates.

Heavy rainfall hit New Jersey’s Edgewater and caused flooding on Monday, in New Jersey, United States on January 23, 2023.

Fatih Aktas | Anadolu Agency | Getty Images

“In January, we saw the impact of weather-related disruptions on employment during our reference week,” Richardson said. “Hiring was stronger during other weeks of the month, in line with the strength we saw late last year.”

Like the Bureau of Labor Statistics, ADP uses the week of the 12th for its payroll sampling. The firm noted that extreme weather events, including snowstorms in the Midwest and floods in California, impacted the jobs picture.

The Midwest region saw a decline of 40,000 jobs, while the Pacific Rim lost 4,000, according to ADP.

Companies with fewer than 50 employees struggled the most during the period, down 75,000 workers. Big firms employing 500 or more workers added 128,000.

The numbers come with the Federal Reserve trying to slow the economy through a series of interest rate hikes specifically aimed at bringing down inflation.

The report also comes two days before the more closely watched BLS count of nonfarm payroll growth for the month. Economists surveyed by Dow Jones expect to see growth of 187,000 in that report.

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