Fed’s quarter-point rate hike reaction

Bailey: The Bank of England is not quite ‘done’ with interest

Bank of England Governor Andrew Bailey suggested that the central bank is not “setting its sights” on interest rates in an interview with CNBC.

“I’m not saying that this is it, we’re done, because the world is not sure at this time,” he told CNBC Joumanna Bercetche.

The Bank of England held its second poll of 50 key rates Thursday, bringing policy rates to a 14-year high of 4%.

Full coverage of the interview can be found here.

– Hannah Ward-Glenton

ECB raises interest rates; The Stoxx 600 gained as much as 0.9%

The European Central Bank announced that it will raise its interest rate by 50 basis points, bringing its policy rate to 2.5%.

The pan-European 600 index reacted by jumping from a 0.5% daily gain to 0.9% in the quarter following the announcement.

Chart to show the Stoxx 600 index.

This rate increase is in line with expectations and follows four increases in 2022.

Full coverage of the ECB’s decision can be found here.

– Hannah Ward-Glenton

Ferrari luxury car driver beat financial expectations

Italian luxury cars Ferrari reported a 16% year-over-year increase in capital gains for 2022, indicating an “even tough” year ahead.

The company said its earnings before interest, taxes, depreciation and amortization (EBITDA) reached 1.77 billion euros ($1.95 billion) last year, setting a guidance of 2.13-2.18 billion euros for 2023.

Ferrari earned EBITDA of 469 million euros in the fourth quarter, up by 18% year-on-year – beating analysts’ expectations of 449 million euros, according to a Reuters poll.

Car shipments increased by 19% year-on-year to 13,221 units in 2022, which resulted from the delivery of the Ferrari Portofino M and the SF90 family, alongside the 296 GTB and the 812 competition models, which are in an upward trend.

Ferrari CEO Benedetto Vigna said, “these figures provide a basis for a stronger 2023, which is in demand for our products worldwide.”

Shares of the New York-listed company rose by 2.63% in after-hours trading at 12:46 a.m. London time.

Ruxandra Iordache

The Bank of England raises rates by 50 basis points, now seeing a ‘shallow’ recession than feared.

People walk outside the Bank of England in London’s financial district, in London, Britain, January 26, 2023.

Henry Nicholls | Reuters

The Bank of England on Thursday raised interest rates by 50 basis points and brought back some of its previous dovish economic forecasts.

The Monetary Policy Committee gave 7-2 support for a second-half rate hike, taking the Bank’s rate to 4%, but indicated in its decision statement that small hikes of 25 basis points could be on the cards. and upcoming meetings. . Both parties disagreed that they were entitled to leave rates unchanged.

Crucially, the Bank dropped the word “force” from its rhetoric of continuing to raise rates as necessary to recover inflation.

The UK’s FTSE 100 index rose 0.5% after the announcement, extending earlier gains.

Read the full article here.

-Elliott Smith

ING’s CFO said that interest rates will continue to rise

ING's CFO said that interest rates will continue to rise

Tanate Phutrakul, chief financial officer of ING, considers its profit better than expected in the fourth quarter.

Trading moves: Telecom Italia up 11%, Electrolux down 8.5%

Bloomberg | Bloomberg | Getty Images

Telecom Italy topped European stocks in early trade, rising 11% following news US private equity firm KKR & Co Inc was preparing to make an unrelated offer for its line network.

The network provides an important boost to the struggling company’s large debt burden, Reuters reported.

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Meanwhile, Electrolux down 8.5% after warning that it will see less sales this year and may suffer from higher energy and wages.

– Jenny Reid

European markets are rising ahead of central bank ratings

Europe’s Stoxx 600 was 0.5% higher at the open as investors braced for interest rate hike decisions from the Bank of England and the European Central Bank this afternoon.

That follows losses in the previous three sessions. After Europe’s shutdown closed Wednesday, the US Federal Reserve announced a smaller 25 basis point rate hike – but gave few details on its near-term policy hike.

Germany’s DAX rose 0.65%, France’s CAC 40 rose 0.6% and the UK’s FTSE 100 rose 0.2%.

Deutsche Bank beat profit expectations in the fourth quarter

Deutsche Bank reported its 10th quarter of profit, getting a boost from higher interest rates and favorable market conditions.

The German lender reported a net profit of 1.8 billion euros ($1.98 billion) attributable to shareholders for the fourth quarter, bringing its annual net income for 2022 to 5 billion euros, a 159% increase from last year.

It was almost twice the consensus among analysts asked by Reuters for a net profit of 910.93 million euros for the fourth quarter, and exceeded the forecast of 4.29 billion euros in the year.

Read the full story here.

Credit of Deutsche Bank

CNBC Pro: JPMorgan says Hong Kong shares to return in February and calls 5 stocks to own

JPMorgan has named five stocks to own amid an expected rise in the broader Chinese stock market in February.

Analysts at Wall Street banks said last week’s sell-off in Hong Kong-listed shares was a profit for some investors.

They said major stock markets will be “grinding up” this month but will turn into “negatives in consumption and cyclical gains and growth gaps.”

CNBC Pro subscribers can read more about the 5 stocks named by JPMorgan.

Also Read :  Be ready to 'pounce' when the market is oversold

— Ganesh Rao

CNBC Pro: Watch out for tech stocks — these cash-rich names are better bets, analysts say

Forget growth stocks like tech. Analysts recommend that investors go for companies with high capital.

The market rallied in January — including tech heavyweight Nasdaq Composite, which rose nearly 10.7% last month for its best monthly performance since July.

But analysts say companies that can bid are a better bet than technology, given that inflation is expected to be higher this year and uncertainty surrounding the U.S. The Federal Reserve will raise interest rates.

They named three stocks to buy.

CNBC Pro subscribers can read more here.

– Weizhen Tan

CNBC Pro: Worried about Alibaba’s price slump? Researchers have 4 more technical options

Shares in Alibaba have made strong progress this year, although the recent decline in its share price has caused some investors to worry.

But the Wall Street favorite is far from the only game in town, with many stocks also offering exposure to the Chinese internet sector.

Pro subscribers can read more here.

– Xavier Ong

European Market: This is an introductory call

European markets continued to move higher on Thursday as markets reacted positively to the quarterly figures from the US Federal Reserve.

The UK FTSE 100 The index is expected to open 31 points higher at 7,788, in Germany DAX 101 points higher at 15,273, of France CAC 35 points to 7,109 in Italy FTSE MIB up 121 points to 26,870, according to data from IG.

On Thursday, European investors will focus on the latest monetary policy decisions from the European Central Bank and the Bank of England.

It was a busy day for fundraising with Shell, BT Group, Deutsche Bank, Banco Santander, ABB, Julius Baer and Roche reporting.

– Holly Elliott


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