Stellantis NV Chief Executive Carlos Tavares is looking to give the global auto manufacturer a major tech upgrade. In a presentation Tuesday, Mr. Tavares outlined plans to hire thousands of software engineers and collaborate with Foxconn Technology Group on developing semiconductors for its vehicles. The goal is to deliver a new generation of technology-packed models that can be updated throughout their life cycle using downloadable software and with customizable features unique to each of the company's 14 brands, executives said. The auto maker, which owns a range of brands, including Jeep, Chrysler and Peugeot, said it is targeting EUR20 billion, or about $22.57 billion, of annual revenue by the end of the decade through selling software-led offerings and subscriptions related to the cars it makes. The auto giant, formed earlier this year through the merger of Fiat Chrysler Automobiles NV and France's PSA Group, said it plans to leverage partnerships with BMW and Alphabet Inc.'s Waymo LLC for autonomous driving offerings, and with Foxconn on making so-called smart cockpits -- a revamp of a car's dashboard designed for an ultra-connected vehicle -- to reach the revenue target.

For the second day in a row, the Swiss stock market closed with gains on Tuesday. The SMI rose by 1.1 per cent to 12,514 points. Among the 20 SMI stocks, there were 19 price gainers and one price loser. 37.48 (previously: 37.53) million shares were traded. Cyclical shares were in demand. This explained the relative weakness of defensive heavyweights Roche (+0.2%), Novartis (+0.3%) and Nestle (+0.1%). Even positive headlines failed to support Roche. ABB gained 1 per cent. The industrial group had raised its growth target. The EBITDA target of at least 15 per cent from 2023 was also seen as positive, even though some on the stock exchange had expected an increase to the upper end of the old range of between 13 and 16 per cent. Clariant (+1.8%) was supported by a JP Morgan upgrade. Among the second-line stocks, Cembra (+2.2%) stood out. Statements on return on equity and the dividend were well received.

European equity markets accelerated on Tuesday as investors continued to downplay the risks associated with the Omicron variant of the coronavirus. The Stoxx Europe 600 index gained 2.5% to 480.2 points. In Paris, the CAC 40 and the SBF 120 gained 2.9% and 2.7%, respectively. In Frankfurt, the DAX 40 rose by 2.8% and the FTSE 100 in London gained 1.5%. GlaxoSmithKline PLC and Vir Biotechnology Inc. said their Covid-19 antibody treatment retained effectiveness against the Omicron variant in laboratory studies, even as early data suggests that similar treatments work less well against the highly mutated strain. The results provide hope that at least one monoclonal antibody therapy—a form of treatment that has proven useful in blunting severe disease—will remain effective against Omicron, which has been detected in dozens of countries including the U.S. since it was identified by scientists in South Africa two weeks ago. British American Tobacco PLC backed its revenue growth guidance on Tuesday, and said that it recognizes the value of a share buyback. The tobacco company said it continues to expect revenue growth for 2021 to be above 5% at constant currency as it is benefiting from strong new-category revenue growth. New categories will contribute to profit growth for the first time as their losses start to reduce, it said. BAT said it is on track to deliver its revised cost-savings target of 1.5 billion pounds ($1.99 billion) by the end of 2022, as set out at its first-half results.

U.S. stock indexes rose sharply on hopes that Omicron would prove less damaging to the economy than feared. The S&P 500 gained 2.1%, building on Monday's gains and recouping all its losses from last week. The tech-focused Nasdaq Composite Index jumped 3%, while the Dow Jones Industrial Average rose 1.4%. Hopes that the new Covid-19 strain will have a less-pronounced impact on travel and consumer confidence have bolstered stocks this week. Scientists and vaccine makers are still assessing the severity of Omicron and how well existing vaccines may work against it. American Airlines Group Inc. Chief Executive Doug Parker will step down next year after two decades running airlines, handing the reins to a longtime lieutenant as the company begins to emerge from the pandemic. Robert Isom, who has served as American’s president since 2016, will take over as CEO on March 31, 2022, the company said Tuesday. Mr. Parker will continue to serve as chairman of American’s board. Mr. Parker’s career has been bookended by crises: He took the helm at America West Airlines in 2001, just 10 days before the Sept. 11 terrorist attacks. Now he is departing as airlines try to move past the Covid-19 pandemic. He has been a champion of consolidation, engineering mergers that transformed the industry and built American into an industry giant. Starbucks Corp. Chief Executive Kevin Johnson said the formation of a union at some of the company’s cafes could disrupt the chain’s relationship with its workers, at a time when Starbucks seeks to expand its ranks of baristas.

The stock markets in East Asia and Australia recorded mostly gains on Wednesday. In Japan, the Nikkei-225 is up 1.5 per cent. The fact that Japanese GDP declined more in the third quarter in the second reading than initially calculated does not weigh. Small losses after the massive gains of 2.7 per cent the previous day are recorded on the Hong Kong market. There was a little profit-taking in real estate shares.

Treasury yields rose as Omicron fears recede and investors embrace a little more risk. "The covid data in South Africa is so far consistent with the assessment that Omicron is more transmissible, but less virulent," Deutsche Bank said, noting that "data are subject to revisions and it is early days."

UBS raises Tesla target to USD 1000 (725) – Neutral
UBS lowers Volkswagen target to EUR 280 (300) – Buy
JP Morgan raises BASF to Overweight (Neutral)

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