European markets close higher at end of November

HSBC to close 114 UK branches and focus on selling its New Zealand business

HSBC announced plans to close the UK’s Section 114 as it tries to improve returns following criticism from a top investor.

The bank also announced that its business in New Zealand must be sold.

Retail banks are under increasing pressure as online banking and low-cost lenders enter the scene.

– Hannah Ward-Glenton

It’s tricky to time the ECB’s bond sales, chief economist says

Raphaël Gallardo, chief economist at Carmignac, said it was a tricky time for the ECB when European bonds were sold.

It's tricky to time the ECB's money sales, economists say

Gallardo said this on CNBC’s “Squawk Box Europe” Wednesday.

Trading in progress: Argenx up 6%, Avanza down 6%

Shares of the Dutch biopharmaceutical company Argenx rose 6.7% at midday to lead the Stoxx 600 after the company announced the acquisition of the US Food and Drug Administration (FDA) Laboratory for $102 million.

Under Europe’s blue chip indicator, Swedish bank Avanza fell more than 6% after suggesting the Riksbank’s new policy rate would not affect its interest rate significantly.

– Elliot Smith

A short-term rally in European markets could be an opportunity to reduce equity, the fund manager said

A short-term rally in European markets could be an opportunity to reduce equity, the fund manager said

Maria Municchi of M&G Investments says the protest could be “an opportunity to cut back on some of this equity exposure.”

Julius Baer accepts £18 million from UK regulator for ‘foundation funding’

A pedestrian walks past the headquarters of Julius Baer Group Ltd in Zurich, Switzerland.

Stefan Wermuth Bloomberg | Getty Images

Swiss private bank Julius Baer on Wednesday accepted a fine of £18 million ($21.62) from the UK’s Financial Conduct Authority in connection with the “finder’s financial arrangement” for one of its clients between 2009 and 2014 .

The regulator also announced on Wednesday that it will also ban Gustavo Raitzin, former regional director of Bank Julius Baer (BJB), Thomas Seiler, former regional director of BJB for Russia and Eastern Europe, and Louise Whitestone, former manager partnership with Julius Baer International. Russian and Eastern European companies.

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An investigation by the FCA concluded that JBI facilitated financial arrangements between BJB and an employee of several Yukos Group companies, Dimitri Merinson.

“This was done with the understanding that the company Yukos Group will invest a large amount in Julius Baer which Julius Baer can generate a large amount of money,” the FCA said.

“In particular, non-commercial FX transactions are carried out by Yukos Group companies at higher than standard rates, with profit sharing between Mr Merinson and Julius Baer.”

FCA Executive Director of Enforcement and Oversight, Mark Steward, said there were “clear signs of corrupt relationships, which were seen and ignored by seniors.”

“These weaknesses create the conditions in which financial crimes of the worst kind can succeed,” Steward said.

In a statement, Julius Baer International said it “deeply regrets and apologizes for the events and vulnerabilities that became known today.”

“We have taken full responsibility for these historic failures and fully compensated our client. Since this tragedy, we have implemented significant organizational changes,” said JBI CEO David Durlacher. .

– Elliot Smith

Eurozone stocks fell, fueling hopes of a rate cut by the ECB

Eurozone currencies fell more than expected in November, fueling market expectations that inflation across the board has increased and the European Central Bank will begin cutting interest rates next month. come.

The consumer price index grew by 10% annually, down from 10.6% in October and comfortably below the consensus forecast of 10.4% in a Reuters poll of analysts.

However, the price of food, which is the main concern for policymakers, continues to increase rapidly, and the price of energy falls causing the majority of the interruption.

– Elliot Smith

The UK will relax its banking sector and trade and investment rules, the Minister said

The UK has prepared to bring back some of the ring-fenced rules imposed on banks in response to the financial crisis, Home Affairs Minister Andrew Griffith told the Financial Times.

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Since 2019, banks with more than £25 billion ($29.9 billion) in deposits have been required to separate their customer services from their banking arm, including holding separate pots of capital to protect against losses in each and having different boards.

Lenders with small UK business operations such as Santander UK, Virgin Money and TSB Bank could soon leave the system, FT supporters argue that this will make them increase competition.

Griffith said it would “make the UK a better place to be a bank,” and “leave some … capital stranded over time.”

Big investment banks, incl HSBC and Barclaysthey will still be required to close their operations to reduce the risk to consumers from shocks in other business areas.

The government is promoting the change as part of a package to boost the UK financial sector.

– Jenny Reid

British business confidence fell in two surveys

A fall in British business confidence was recorded in two surveys published Wednesday.

A survey from Lloyds Bank showed business confidence at its lowest level since February 2021 and below the long-term average.

It also found overall economic optimism fell for the sixth straight month and employment targets were at an 18-month low.

Wage expectations fell slightly for businesses, but they said they would continue to raise prices for their goods and services to offset higher wages.

Meanwhile, a survey of the labor sector by the Confederation of British Industry found a drop in optimism for the third quarter. The decline was the sharpest since May 2020, when the UK was in lockdown.

– Jenny Reid

Business going: SBB up 5%, Avanza down 7%

SBB Shares rose 5% in early trade to lead the Stoxx 600 after the Swedish housing company agreed to sell a 49% stake in its education division to Brookfield for 9.2 billion Swedish krone ($870.42 million).

At the bottom of the European blue chip index, Swedish banks Avanza fell 7% after suggesting the Riksbank’s new policy rate hike will not affect its interest rate significantly.

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– Elliot Smith

French prices were higher than expected in November

France was the first major European economy to report inflation data on Wednesday.

The French consumer price index rose by 0.4% per month and 6.2% per year, according to preliminary figures from the statistical office INSEE, unchanged from October and slightly more than the forecast of 0.3% per month and 6.1% per year.

In line with the EU, the annual rate was unchanged at 7.1% in November, in line with forecasts.

– Elliot Smith

CNBC Pro: Goldman Sachs’ Currie says oil stocks are trading ‘below’ their long-term trend.

Goldman Sachs’ Global Head of Commodities Research Jeff Currie told CNBC that historically, oil stocks have been priced higher than current oil prices compared to current price levels..

For example, the price difference between SPDR Oil & Gas ETF and ICE Brent Crude The futures contract was about $66.60 on Tuesday. That’s less than the $104 gap recorded in early January 2017, according to Koyfin data, as the chart below shows.

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CNBC Pro: As Wall Street gets bearish, these high-cap stocks could be safe bets

Wall Street analysts are worried about the outlook for stocks, and are urging investors to remain defensive. These high-yield stocks can be a good bet.

Pro subscribers can read more here.

– Xavier Ong

European Market: This is an introductory call

European markets are headed for a higher opening on Wednesday as regional markets await fresh inflation data from the euro zone in November.

The UK FTSE index is expected to open 23 points higher at 7,536, Germany’s DAX up 68 points at 14,414, France’s CAC up 29 points at 6,697 and Italy’s FTSE MIB up 119 points at 24,597, according to data from IG.

The data release included preliminary figures for the single currency area, France and Italy’s last quarter gross domestic product figures and Ireland’s unemployment figures for November.

– Holly Elliott

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