Before the bell: Calmness Due to Inflation Report

Inflation data brings relief to investors, but is it enough to break the downward trend?

Investors worldwide breathed a sigh of relief yesterday as the latest U.S. inflation report came in better than expected. With inflation for February at a lower-than-anticipated 2.8%, investors could take a moment to relax. The Euro Stoxx 50 climbed 1%, with the biggest gainers in the index being the French defense company Safran (+5%) and the Italian sports car brand Ferrari (+3%). The Brussels Bel20 surged even higher, rising 2.1%. Pharmaceutical company UCB (+6.9%) saw a strong recovery. On March 24, a second specialist in logistics real estate will join the Belgian benchmark index. Alongside WDP, Montea will be added to the list, while biotech player Galapagos will exit, going from hero to zero. U.S. markets also turned green, with the S&P 500 gaining 0.5% and the Nasdaq climbing 1.2%.

This morning in Asia, the Hang Seng Index is down 1.5%, taking a breather after its impressive run. This is not surprising, considering the index has already gained nearly 20% since the start of the year. In Tokyo, the Topix is up 0.4%. In Belgium, Warehouses Estates Belgium and GBL are publishing their annual results. In the UK, Deliveroo is releasing its earnings, and in the U.S., discount retailer Dollar General will report before the market opens. After the bell, it’s DocuSign and Ulta Beauty’s turn to open their books.

More Espresso, Less Depresso

In some cafés, they get sent outside; in certain fast-food chains, power outlets are deliberately removed to keep them away. People who work remotely and want to charge their laptops or mobile phones are not welcome everywhere—but they are at Starbucks. In the land of pricey frappuccinos and latte macchiatos, more seats and power outlets will soon be added. The world’s largest barista chain has seen its coffee sales stagnate and is betting that if customers find a cozy spot to charge their devices, they will stay longer and spend more. This marks a shift in strategy for the company. Previously, Starbucks focused on takeaway coffee, which sometimes meant fewer seats in stores. Now, the company is prioritizing customers who linger. Whether that will lead to more coffee consumption remains to be seen.

New Captain at the Helm

U.S. chipmaker Intel (+4.6%) outperformed the broader market yesterday, and with good reason. The company announced a new leader at the helm. The newly appointed CEO, Lip-Bu Tan, is no stranger to Intel. He left the company last August following a disagreement with then-CEO Pat Gelsinger. Lip-Bu Tan wanted to split Intel into separate entities, while Gelsinger was against it. Now, Gelsinger is out, as his other strategies also failed to deliver significant results. With Lip-Bu Tan now in charge, will Intel finally undergo a long-discussed breakup?

Did You Know…

that companies are spending more and more on social media advertising? For example, Unilever plans to increase its spending on social media ads by 30% to 50%. In 2022, the company spent 13% of its revenue on marketing. By 2024, that figure had already risen to 15.5%.

This article was translated from Dutch and was originally published on Spaarvarkens.be.