BlackRock has agreed to buy private-equity firm Global Infrastructure Partners for roughly $12.5 billion in cash and stock, a significant push into private-market investments for the world's largest asset manager. New York-based GIP owns and operates energy, transportation, and water and waste companies, including a stake in London's Gatwick Airport. The acquisition would be BlackRock's largest since it bought Barclays's asset management business in 2009. BlackRock separately reported its assets under management topped $10 trillion at the end of the fourth quarter for just the second time in its history. To acquire GIP, BlackRock will pay $3 billion in cash and 12 million of its own shares, worth about $9.5 billion based on Thursday's closing price. GIP is majority owned by its six founding partners, who will collectively become among the largest shareholders of BlackRock by acquiring about 8% of the shares outstanding, according to a person familiar with the deal. Per-share earnings of $9.15 beat the $8.73 expected by analysts polled by FactSet. Net income climbed 9% from the same period a year ago, and quarterly revenue rose 7%. BlackRock shares closed 0.9% higher on Friday.

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On Friday, the SMI gained 0.7 per cent to 11,226 points. Among the 20 SMI stocks, there were 17 winners and three losers. A total of 16.28 (previously: 16.89) million shares were traded. Partners Group fell 0.6 per cent. The asset manager disappointed on account of its business development figures, such as the volume of new money. By contrast, other financial stocks, such as UBS (+1.2%) and Zurich Insurance (+0.9%), trended favourably. The luxury goods manufacturers Swatch (-0.6%) and Richemont (-0.2%) traded lower. Heavyweights Nestle and Roche, which had been weak the previous day, recovered by 1.1 and 0.7 per cent respectively. Novartis, down only slightly on Thursday, gained 0.1 per cent on Friday. Cyclicals also showed strength, such as ABB (+0.9 per cent), Geberit (+1.6 per cent) and Holcim (+1.3 per cent).

On Friday, the Stoxx Europe 600 index gained 0.8% to 476.8 points. In Paris, the CAC 40 and SBF 120 rose by 1.1% and 1% respectively. In Frankfurt, the DAX 40 advanced 1% and London's FTSE 100 added 0.6%. European luxury goods stocks lost ground after British group Burberry lowered its profit forecast for the 2023-2024 financial year. Burberry indicated that demand slowed again in the key December period. Burberry shares fell by 5.5% in London, while in Paris Kering was down by 1.2% and LVMH by 0.3%. Aerospace and defence stocks rose. Airbus (+3.7%) published higher-than-expected sales figures on Thursday evening. In its wake, engine manufacturers Safran and Rolls-Royce gained 2.8% and 2.7% respectively. Dassault Aviation (+2.2%) announced on Friday that it had received an order from the Direction Générale de l'Armement for 42 Rafale fighter jets for the French Air Force. Construction and infrastructure stocks also progressed, notably Nexans (+5.7%), Saint-Gobain (+2.9%) and Spie (+4.2%). Vinci (+1.9%) raised its free cash flow target for 2023, given higher-than-expected inflows at the end of the year and the postponement of certain investments.

The S&P 500 overcame big declines in airline stocks and shares of companies that rely on discretionary spending Friday to inch closer to a new all-time high. The benchmark stock index ended Friday less than 0.1% higher, within 0.3% of a record high that has stood for more than two years. The tech-heavy Nasdaq Composite also added less than 0.1%. The Dow Jones Industrial Average declined 0.3%, or 118 points. Delta shares fell 9% despite beating Wall Street’s fourth-quarter sales and profit expectations. Only rivals United Airlines and American Airlines fared worse among S&P 500 constituents, losing 11% and 9.5% respectively. Southwest Airlines shed 4.3%. Energy, communications, real estate and utilities were the top gaining segments of the S&P 500 on Friday. Bank shares also had a mostly down day following earnings reports from four of the country’s biggest lenders. Citigroup swung to a loss in the fourth quarter and disclosed plans to cut 20,000 jobs. Its shares rose 1%. Shares of Wells Fargo and Bank of America declined 3.3% and 1.1%, respectively. JPMorgan Chase slipped 0.7% after finishing out its most profitable year ever with $9.3 billion in fourth-quarter income.

The Chinese stock exchanges in Shanghai (+0.3%) and Hong Kong (-0.2%) barely moved. Baidu slumped by over 10 per cent in Hong Kong. In Tokyo, a weakening yen provides support with the Nikkei-225 gaining 0.9 per cent to 35,908 points. Shipping companies rallied in anticipation of rising freight rates due to the ongoing tensions in the Red Sea. Kawasaki Kisen Kaisha gained 9.5 per cent, Mitsui O.S.K. Lines 5.3 per cent and Nippon Yusen K.K. 4.5 per cent. The Kospi in South Korea loses 0.4 per cent in the wake of the missile tests in the North. Asiana Airlines climbs 9.8 per cent after reports that the EU will approve the takeover of Asiana by Korean Air Lines subject to conditions. Korean Air Lines increase by 2.4 per cent.

The favourable trend on the Swiss bond market continued on Friday. Swap rates eased and, as a result, the prices of interest-bearing securities were adjusted slightly upwards, according to the traders. Turnover remained favourable. The market is currently in good shape. The wave of issues has apparently been well digested. 15 issuers have so far placed bonds totalling almost four billion Swiss francs on the Swiss capital market in 2024. Foreign borrowers (9) dominate over domestic borrowers (6). In terms of capital, however, it is the other way round. CHF 2.3 billion came from Switzerland and CHF 1.6 billion from abroad. A good CHF 1.7 billion is attributable to the Pfandbriefbank (CHF 720 million), the Swiss Confederation (CHF 400 million) and the chocolate manufacturer Barry Callebaut, having placed two bonds totalling CHF 600 million. Traders also reported that Banco Santander Chile issued CHF 225 million, the third-largest Swiss franc bond ever issued by a Chilean borrower. Meanwhile, the yield of two-year Swiss Confederation bonds was quoted at 1.159% compared to 0.867% for ten-year bonds.

Bernstein upgrades Ams-Osram to Outperform (Market Perform) - Target CHF 3
Stifel lifts Sika target to CHF 240 (230) - Hold
Jefferies downgrades Swatch target to CHF 210 (240) - Hold
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