EUROPEAN MIDDAY BRIEFING - Stocks Slip, Oil Again -3-

The German chemicals company posted a slightly declining net profit in the quarter, though earnings before interest, taxes, depreciation and amortization grew on year by 4%, the company said.

Zalando Meets Higher 2021 Guidance; Sees Further Growth This Year

E-commerce platform Zalando SE said Tuesday that revenue and earnings rose in line with higher guidance in 2021, and that it foresees continuing growth this year.

Berlin-based Zalando reported total revenue of EUR10.35 billion euros ($11.61 billion), rising 30% from the previous year, with gross merchandise volume of EUR14.35 billion, up 34%. Adjusted earnings before interest and taxes came in at EUR468.4 million, with a margin of 4.5%.

Adidas to Use $1.7 Billion From Reebok Sale in New Buyback

Adidas AG said Tuesday that it is planning a new share-buyback program amounting to up to 1.5 billion euros ($1.68 billion) to return to shareholders the proceeds of the divestment of U.S. sportswear brand Reebok, which has now been completed.

The program will return to shareholders the cash proceeds from the sale of Reebok to New York-based licensing company Authentic Brands Group, in a deal signed last year amounting to up to EUR2.1 billion including certain deferred and contingent considerations. The German sporting-goods company said at the time that it planned to return the proceeds of the transaction to its shareholders.

U.S., Iran Split Over Key Nuclear Issues as Deal Deadline Nears

VIENNA-Iranian and U.S. officials are entering a crucial week of negotiations to restore the 2015 nuclear deal, with significant differences remaining on several key issues and new concerns that Russia's invasion of Ukraine could complicate the talks.

Iran's chief negotiator, Ali Bagheri-Kani, arrived in Vienna Monday morning with positions that could prove difficult to bridge with his Western counterparts, diplomats said. With Iran continuing to expand its nuclear work, Western diplomats have warned that the negotiations could collapse if a deal isn't reached this week.

GLOBAL NEWS

Hong Kong's Covid-19 Measures Pressure Finance in Asian Financial Hub

Hong Kong's most recent measures to combat Covid-19 are unsettling its large community of bankers and investors, many of whom were already struggling to square business and family commitments with severely curtailed travel.

Some financial professionals have asked employers whether they can relocate, while a few expatriates have decided in recent months to resign and move home. Others are considering options that could split up their families for months or more as they try to move their children into more stable schooling and away from the risk of mandatory quarantine.

Biden's State of the Union Address to Highlight Economic Plans, Russia Sanctions

WASHINGTON-President Biden will deliver his first State of the Union address Tuesday, as he seeks to tamp down a war in Ukraine, guide the U.S. and its economy through the Covid-19 pandemic, and help buoy Democrats in November's midterm elections.

The president will juggle reframing his stalled legislative agenda with reminding Americans of what he sees as key accomplishments-such as the passage of his Covid-19 relief bill and bipartisan infrastructure legislation last year-and rallying them behind his strategy to counter Russia, which includes uniting with allies on a massive sanctions package.

China's Official Manufacturing PMI Expands for Fourth Month

BEIJING-An official gauge of China's factory activity registered its fourth straight month of expansion in February, defying expectations of economic slowdown.

The official manufacturing purchasing managers index rose to 50.2 in February from 50.1 in January, the National Bureau of Statistics said Tuesday.

U.S. Positioned to Withstand Economic Shock From Ukraine Crisis

As Russian President Vladimir Putin launched a war against Ukraine, half a world away the U.S. economy appeared to be rebounding from a winter surge of Covid-19 infections.

A range of U.S. data suggests U.S. economic activity picked up in recent weeks. Many Wall Street analysts expect the Labor Department on Friday to report large job gains in February and a further decline in unemployment.

Blockade on Russia Central Bank Neutralizes Defense Against Sanctions, U.S. Says

WASHINGTON-The U.S. and European Union blocked Russia's central bank from using its emergency reserves to protect the economy from the Western pressure campaign, a salvo the bank's governor said risked triggering a financial crisis.

The coordinated action blocks the central bank from selling dollars, euros and other foreign currencies in its reserves stockpile to stabilize the ruble. Announcing the move Monday in Washington before U.S. markets opened, U.S. officials said they intended the sanctions to stoke already surging inflation, and the actions against the Bank of Russia are intended in effect to neutralize the country's monetary defenses.

U.S. Says Russian U.N. Diplomats Are Spies and Orders Them Out

WASHINGTON-The U.S. is expelling a dozen Russian diplomats assigned to the United Nations in New York on allegations that they are intelligence agents, after what people familiar with the matter say was a yearslong debate within the U.S. government about the value of providing them with visas.

The expulsions come as Russia's invasion of Ukraine has triggered a wide-ranging response from Western countries, with economic sanctions, diplomatic pressure and athletic and cultural bans emerging at levels not seen since the Cold War. The Biden administration even announced sanctions personally targeting Russian President Vladimir Putin and Sergei Lavrov, Russia's top diplomat.

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This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

03-01-22 0647ET