Economy
Heightening the risk of a slide toward deflation, Eurostat today reported the largest decline in consumer prices in the eurozone since July 2009. Consumer prices were 0.6% lower than in January 2014, having fallen 0.2% on an annual basis in December. The plunge in consumer prices is unlikely to have an immediate effect on the ECB's €60B/month QE package, although the longer prices stay in negative territory, the more pressure the central bank will have to extend the program.

According to figures released by the U.N. Conference on Trade and Development, China became the world’s top destination for foreign direct investment in 2014, edging the U.S. out of that position for the first time in more than a decade. Foreign businesses invested $127.6B in China last year, up from $123.9B in 2013, while their investments in the U.S. fell to $86B from $230.8B. The U.S. also slipped behind Hong Kong, falling into third place among all FDI recipients.

Winning support from Greece, European Union foreign ministers have extended existing sanctions against Russia, but held off on tighter economic measures for now. Last year's travel bans and asset freezes will now continue until September. Russia's central bank also cut its key interest rate to 15% this morning, after announcing a surprise hike from 10.5% to 17% in December to shore up the weakening ruble.

Stocks
Despite reporting sales growth below forecasts, Amazon (NASDAQ:AMZN) is up 10.5% premarket after blowing past Wall Street's expectations. Earnings totaled $0.45 per share, down from $0.51 a share in 2013, but analysts had expected $0.17 per share in profit. "We certainly have a lot of very interesting opportunities in front of us, and we need to be selective," said CFO Tom Szkutak in a conference call following the results.

Visa announced an 11.5% increase in profit during the quarter, as a strengthening U.S. job market and cheaper gasoline prices encouraged people to spend. Beating both top and bottom line estimates, net income rose to $1.57B from $1.41B, a year earlier. Visa (NYSE:V) also announced a four-for-one stock split, cutting its weight in the Dow from 9% to 2.5%. Visa +4.6% premarket.

The internal investigation into alleged corruption at Petrobras (NYSE:PBR) will cost the company approximately $57M this year and could last up to two years, says CEO Maria das Gracas Silva Foster. On Wednesday, the company reported its delayed Q3 results but did not include an expected writedown of assets related to the scandal, a move that disappointed investors and sent shares down more than 12%.

Strengthening the ties between Middle East growth carriers and Europe’s aviation sector, Qatar Airways has acquired a 9.99% ($1.7B) stake in International Consolidated Airlines Group (OTCPK:ICAGY), the owner of British Airways and Iberia. The transaction deepens Qatar’s link with the London Heathrow hub; Qatar Holdings owns 20% of the airport operator. IAG has also been reported to be looking at expanding its hold on London Heathrow with the potential takeover of Aer Lingus (OTC:AIRXY).

Honda cut its annual operating profit forecast by 6.5% today, as it faced sluggish sales in Japan and set aside more cash to cover an expanded Takata (OTCPK:TKTDY) air bag recall. Honda's (NYSE:HMC) third-quarter earnings skidded 22.5% to ¥177.2B from ¥228.57B in the same period a year earlier. Meanwhile, the NHTSA has stepped up pressure on Takata, offering legal protection to any whistleblowers with knowledge "of possible defects or any wrongdoing."

Google's revenue grew 15% in the fourth quarter but fell short of Wall Street's target as foreign exchange and falling ad prices weighed on the company. While the number of consumer clicks on its ads increased 14% Y/Y, "cost per click" decreased 3%, as more consumers access its online services on mobile devices, where ad rates are typically lower. Shares initially fell on the news, but climbed higher after CFO Patrick Pichette announced that revenues would have been significantly higher without factoring in currency fluctuations. GOOG +0.7%, GOOGL +0.9% premarket.

Bankrupt drugmaker Dendreon has reached a stalking-horse deal with Valeant Pharmaceuticals (NYSE:VRX) to sell rights to its prostate cancer vaccine, Provenge, and certain assets for $296M. The deal is subject to higher and better offers until Feb. 10. Dendreon (OTCPK:DNDNQ) filed for bankruptcy protection in November, after sales of Provenge fell short of expectations and left the company deep in debt.

Cablevision is suing Verizon, accusing the company of falsely advertising the "fastest WiFi available". The complaint filed states that Verizon (NYSE:VZ) has been installing new network routers for up to $199.99, despite knowing that Cablevision (NYSE:CVC) offers the same routers for its Optimum network, free of charge. Cablevision also called the advertising an effort to stymie its launch of "Freewheel", a WiFi voice, text and data service, that could cut into Verizon's sales.

The U.S. Senate passed a bill to approve the Keystone XL (NYSE:TRP) oil pipeline yesterday, moving the Republican-controlled Congress a step closer to a showdown with President Obama over the long-stalled project. The Senate and House, which passed a Keystone bill earlier in January, must now resolve differences between their Keystone measures before final legislation can be sent to the White House.

Shake Shack's initial public offering priced well above expectations at $21 apiece, netting the burger chain a valuation of $745M. Underwriters had set an expected price range of $17-$19 per share, up from an initial $14-$16 due to strong demand. Shake Shack (Pending:SHAK) will begin trading on the NYSE this morning.

Today's economic calendar:

8:30 GDP Q4
8:30 Employment Cost Index
9:45 Chicago PMI
9:55 Reuters/UofM Consumer Sentiment
3:00 PM USDA Ag. Prices

Notable earnings before today's open: ABBV, AVY, BEN, BERY, BZH, CNX, CVX, GHM, HMC, IDXX, IMGN, INGR, IR, KCG, LEA, LLY, LM, MA, MAN, MAT, MGIC, MO, MOG.A, MOSY, NS, NVO, NWL, OFG, PCAR, SAIA, SPG, TSN, TYC, WY, XRX