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☆ Bank of England set to hold interest rates despite inflation hitting 2% target
▼ + stars: | 2024-06-19 | by ( Jenni Reid | ) www.cnbc.com time to read: +2 min

But the print only served to further convince traders that an interest rate cut is not imminent. Money market pricing by 11 a.m. in London implied just a 5% probability of a trim of the Bank Rate during Thursday's BOE meeting — after recording stronger odds of such a step earlier in the week. Policymakers are equally focused on services inflation, key to understanding domestic price pressures in the country's services-oriented economy, which came in at 5.7% — higher than the 5.5% forecast by economists in a Reuters poll. "I think the most disturbing thing lots of economists like myself are looking at right now is what's happening in services inflation. And those numbers have been proving a good deal stickier than we would like," Sproule said, with the BOE targeting services inflation of around 3%.

Persons: BOE, —, We've, James Sproule, CNBC's, Sproule Organizations: Bank of England's, Bank of Locations: London, Bank of England

☆ JPMorgan reveals its favorite European stock picks — giving one over 93% upside
▼ + stars: | 2024-02-22 | by ( Amala Balakrishner | In Amala-Balakrishner | ) www.cnbc.com time to read: +1 min

JPMorgan uncovered several top European stocks it says offer substantial upside potential — as well as some "unattractive" names — right now. The bank is underweight on the euro zone, given that its "Growth-Policy trade-off" is "likely to deteriorate further." Nevertheless, JPMorgan sees pockets of opportunity in the European market. Here are five stocks from its list of "top European picks" which stand out for having substantial upside potential, according to FactSet's consensus price targets: 'Unattractive stocks' JPMorgan also revealed its list of "unattractive stocks" from a sector it's underweight on — banking. Stocks named as " unattractive" include Lloyds Banking Group , BNP Paribas , Svenska Handelsbanken AB and Bank of Ireland Group .

Persons: Mislav Matejka, Banks, Stocks, — CNBC's Michael Bloom Organizations: JPMorgan, Lloyds Banking Group, BNP, Svenska Handelsbanken, Bank of Ireland Group

☆ US dollar is heading for its worst month in a year. It’s not all bad news
▼ + stars: | 2023-11-29 | by ( Anna Cooban | ) edition.cnn.com time to read: +4 min

London CNN —The US dollar is barreling toward a 3.7% loss this month against a basket of six major currencies in what would be it worst monthly performance in a year. For countries that depend on commodity imports, a weaker dollar means they have to pay less for essentials like wheat and crude oil. A number of up-and-coming economies have debts denominated in dollars, and a weaker dollar can make servicing those debts less expensive. A fall in the greenback’s value also signals better investment opportunities outside the United States, McCormick told CNN. “A weaker dollar is a rising tide that lifts all boats,” he said.

Persons: decelerate, ” Ulrich Leuchtmann, Cameron Willard, —, ” Willard, ”, Mark McCormick, Leuchtmann, McCormick, stokes, Willard Organizations: London CNN, Reserve, CNN, TD Securities Locations: United States, Japan, Korea, India, Handelsbanken

☆ Volvo Cars' promise of EV boom falls on deaf ears as shares drop 12%
▼ + stars: | 2023-10-26 | by ( Marie Mannes | Thomson Reuters | Stockholm-Based Company News Correspondent Who Mainly Covers Anything To Do With Retail | ) www.reuters.com time to read: +2 min

As the company reported third-quarter earnings, Chief Executive Jim Rowan told Reuters that he saw healthy demand for its cars, and was optimistic the margins would increase further in the fourth quarter. Volvo's BEV margins were 9% in the quarter, a sharp increase from the previous quarter's figure of 3%. Rowan said he expected the trend of falling prices of raw materials to continue, helping the company increase margins further for the fourth quarter. Investors proved unconvinced, as Volvo shares, down 10% by 1014 GMT, after having fallen as much as 12%, looked set for their biggest ever one-day drop. EV makers have engaged in stiff competition this year, after Tesla ignited a price war intensified by new Chinese players.

Persons: Aly, Jim Rowan, EVs, BEV, Rowan, Jefferies, Philippe Houchois, Houchois, Tesla, China's Geely, Marie Mannes, Greta Rosen Fondahn, Terje Solsvik, Clarence Fernandez Organizations: Volvo, Auto Shanghai, REUTERS, Rights, Reuters, Benz, Motors, Ford, Volkswagen, China's, Thomson Locations: Shanghai, China, Rights STOCKHOLM, EVs

☆ Swedbank beats Q3 profit estimates, says economy "remains resilient"
▼ + stars: | 2023-10-26 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Tom Little/File photo Acquire Licensing RightsSTOCKHOLM, Oct 26 (Reuters) - Swedish banking group Swedbank (SWEDa.ST) reported a bigger-than-expected third-quarter net profit on Thursday, and said the economy remained resilient despite turbulence and higher interest rates. Sweden's biggest mortgage lender posted a net profit of 9.13 billion crowns ($817 million), well above a forecast of 8.57 billion crowns in a LSEG poll of analysts. It had posted a profit of 5.59 billion crowns in the year-ago period. Swedbank, a rival to lenders such as Handelsbanken (SHBa.ST), Nordea (NDAFI.HE) and SEB (SEBa.ST), said interest income, which includes revenues from mortgages, rose to 12.9 billion crowns from 8.36 billion crowns a year ago, slightly beating expectations. Swedbank booked loan loss provisions of 347 million crowns, down from 602 million crowns in the year-ago quarter, and below analysts' expectations of losses of 583 million crowns.

Persons: Tom Little, Jens Henriksson, SEB, Swedbank, Johan Ahlander, Anna Ringstrom Organizations: REUTERS, Rights, Thomson Locations: Stockholm, Sweden, Rights STOCKHOLM, Swedish, Swedbank

☆ Bank SEB's Q3 operating profit jumps 42%, beats expectations
▼ + stars: | 2023-10-25 | by ( ) www.reuters.com time to read: +1 min

The Nordic bank SEB group logo is seen outside a branch in central Stockholm, Sweden, July 18, 2023. REUTERS/Tom Little Acquire Licensing RightsSTOCKHOLM, Oct 25 (Reuters) - Swedish bank SEB (SEBa.ST) reported a 42% rise in third-quarter operating profit on Wednesday, topping market expectations, but said the positive effect from higher interest rates had come down compared to previous quarters. Sweden's biggest corporate bank said operating profit was 13.0 billion crowns ($1.17 billion) against a year-ago 9.12 billion, beating a mean forecast of 11.0 billion in an LSEG poll of analysts. Banks have seen their income boosted by higher interest rates as central banks scrambled to bring down stubbornly high inflation. The bank, whose main rivals include Handelsbanken, Swedbank and Nordea, said its net interest income rose to 12.3 billion crowns from 7.7 billion crowns, above the 12.0 billion crowns expected by analysts.

Persons: Tom Little, SEBa.ST, Banks, SEB, Johan Ahlander, Anna Ringstrom, Eileen Soreng Organizations: REUTERS, Rights, Thomson Locations: Stockholm, Sweden, Rights STOCKHOLM, Swedish

☆ Volvo braces for slower truck markets next year after Q3 profit beat
▼ + stars: | 2023-10-18 | by ( ) www.reuters.com time to read: +2 min

The Volvo logo is seen in truck for sale in Linden, New Jersey, U.S., May 23, 2022. Its adjusted operating profit margin widened to 14.4% from 10.3% as price hikes made up for higher costs. The company predicted the European and North American heavy truck markets would total 290,000 vehicles each in 2024. "We expect our major truck markets to continue to be strong throughout this year as we continue to deliver from our large order books to customers, but (we) forecast lower market levels for next year," Lundstedt said. Reporting by Marie Mannes and Marta Frąckowiak; editing by Anna Ringstrom and Jason NeelyOur Standards: The Thomson Reuters Trust Principles.

Persons: Andrew Kelly, Martin Lundstedt, Lundstedt, Hampus Engellau, Marie Mannes, Marta Frąckowiak, Anna Ringstrom, Jason Neely Organizations: Volvo, REUTERS, LSEG, Thomson Locations: Linden , New Jersey, U.S, STOCKHOLM, Swedish, American, Gothenburg, Russia, North America, Europe

☆ Norway seen lifting policy rate to 4.0% this week
▼ + stars: | 2023-08-15 | by ( ) www.reuters.com time to read: +2 min

"The risk of another double rate hike is clearly reduced," Handelsbanken said in an Aug. 11 note to clients. Norges Bank's monetary policy committee has said it will likely hike the policy rate to 4.25% in the course of this year to prevent a continued rapid rise in prices and wages that could see inflation become entrenched. The European Central Bank last month raised its key policy rate to 3.75%, but a narrow majority of economists polled by Reuters expect the ECB to temporarily pause its rate-hiking campaign at its September meeting. All 31 economists polled in the Aug. 10-15 period said Norges Bank would announce on Thursday that it will increase its policy rate by 25 bps to 4.00%. The poll's median prediction showed that the policy rate is expected to hit a peak of 4.25% later in the third quarter, although some predicted it could rise to 4.50% by the end of the year.

Persons: Handelsbanken, Terje Solsvik, Vijayalakshmi Srinivasan, Pai Sujith, Susan Fenton Organizations: Reuters, Norges, bps, Norges Bank, European Central Bank, ECB, Thomson Locations: OSLO, Norwegian, Bengaluru

☆ How the ghost of 1990s property crash returned to haunt Sweden
▼ + stars: | 2023-07-28 | by ( John O'Donnell | ) www.reuters.com time to read: +4 min

SummaryCompanies Swedish house market tumbles as rates riseSwedes dusting down 1990s blueprint to contain crisisBanks say willing to seize collateralFRANKFURT, July 28 (Reuters) - Long before Europe faced its debt crisis, Sweden struggled through its own 1990s property crash. At the centre of the fallout is a $13 billion property group, SBB, which borrowed to buy public property including social housing, government offices, schools, hospitals and police stations. While property doubled in value in the five years leading up to the 1990s crash, prices have since risen five-fold. Sweden's bruising experience in the 1990s, when banks seized swathes of property underpinning loans, hardened its approach and gave it a blueprint for coping with crises. Swedbank has 1 trillion crowns ($97 billion) in mortgages and loans to tenant owner associations and a further 240 billion crowns in loans to property management companies.

Persons: Jens Henriksson, Price, Karolina Ekholm, Swedbank's, Swedbank, Carl Cederschiold, Masih Yazdi, Bo Lundgren, Lundgren, John O'Donnell, Marie, Alison Williams Organizations: SBB, Sweden's, Marie Mannes, Thomson Locations: FRANKFURT, Europe, Sweden, rocketed, Stockholm, Swedish

High debts, rising interest rates and a wilting economy has produced a toxic cocktail for Sweden's commercial property companies, with several cut to junk by rating agencies. Sweden and Germany are among the worst affected by a widening property slump on the continent, according to Eurostat. Swedish officials are worried that banks could compound property companies' troubled by cutting credit, triggering firesales that would further drag down the market. Financial markets minister Wykman said he had held discussions with banks, property companies and investors about the entire commercial property market. This week, analysts at JP Morgan said big banks in Sweden, which had 1 trillion Swedish crowns of property exposure, were 'ill-prepared' for losses.

Persons: Niklas Wykman, Wykman, Ilija Batljan, Batljan, JP Morgan, Finland's, SEBa.ST, Chiara Elisei, Sinead Cruise, John O'Donnell, Toby Chopra Organizations: Organisation for Economic Cooperation, Development, Financial, Reuters, Eurostat, OECD, Reuters Graphics, SBB, JP, Thomson Locations: STOCKHOLM, FRANKFURT, Europe, Sweden, Germany, Stockholm, Swedish, Spain, Ireland, London

☆ Swedbank Q1 profits beats expectations on better deposit margins
▼ + stars: | 2023-04-27 | by ( ) www.reuters.com time to read: +1 min

STOCKHOLM, April 27 (Reuters) - Swedish bank Swedbank (SWEDa.ST) reported first-quarter net profit above market expectations on Thursday and said higher deposit margins had boosted results, although credit impairments also rose. "The driving factor was higher net interest income, which strengthened thanks to higher deposit margins," he told a news conference. Higher interest rates have meant that Swedish banks have increased margins on their loan business. Swedbank, Sweden's biggest mortgage bank, said its net interest income, which includes revenues from mortgages, rose by 77% to 11.94 billion from a year-ago 6.76 billion, above the 11.37 billion expected by analysts. Swedbank said its credit impairments rose to 777 million crowns from 158 million a year ago, above the 386 million seen by analysts.

☆ Handelsbanken scores profit beat as interest income climbs
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +2 min

STOCKHOLM, April 26 (Reuters) - Swedish bank Handelsbanken (SHBa.ST) reported first-quarter net profit above market expectations on Wednesday on the back of climbing interest income and said its credit quality remained good against a backdrop of heightened uncertainty. Soaring inflation over the past year has seen central banks crank up key rates radically, boosting interest income for banks such as Handelsbanken, but also spurring their own costs and ramping up pressure on their customers and on property prices. The rival of Swedbank (SWEDa.ST), SEB (SEBa.ST) and Nordea (NDAFI.HE) said net profit totalled 6.81 billion Swedish crowns ($661.23 million) versus a year-ago 5.69 billion, topping a mean forecast 6.20 billion, according to Refinitiv estimates. The bank, whose main markets are Sweden, Norway and Britain, said its net interest income, which includes revenues from mortgages, rose to 11.49 billion from a year-ago 8.01 billion, above the 10.89 billion expected by analysts. Handelsbanken said its credit losses edged up to 30 million crowns from only 6 million a year ago, well below the 386 million seen by analysts.

REUTERS/Pierre AlbouyMILAN/LONDON, April 21 (Reuters) - Short-sellers who bet against European banks are set to lose a substantial amount of money in April after the sector bounced back from the shock downfall of Credit Suisse (CSGN.S) in anticipation of strong quarterly earnings. The STOXX European banks share index (.SX7P) has risen as much as 18% from late March's lows. But a Bank of America survey showed fund managers cut bank exposure in April to the lowest since May 2020, as they piled into more recession-proof defensive sectors. Ortex estimates short interest on European banks is close to 1% of the free share float, an 11-month high. One area of concern is exposure to commercial real estate and investors will be alert to any sign of emerging stress as European lenders report earnings next week.

Volvo, a rival of manufacturers such as Daimler Trucks (DTGGe.DE) and Traton (8TRA.DE), forecast 2023 heavy truck sales in Europe and North America of 320,000 for each region. Handelsbanken analyst Hampus Engellau said the raised truck outlook sent a strong message that Volvo sees the second-half of 2023 as a good market for its trucks. Gothenburg-based Volvo, which also makes construction equipment and engines, said there was pent-up demand to replace aging fleets which had helped boost order intake. Shares in Volvo, one of Sweden's biggest employers, rose 1.2% in morning trade in a flat broader market (.OMXSPI). Volvo is not the only automaker to have had a good quarter.

REUTERS/Brian Snyder/File PhotoLONDON, March 15 (Reuters) - Investment managers Bridgewater Associates, Millennium Management and Marshall Wace added to short positions on European banking shares after the collapse of Silicon Valley Bank sparked contagion fears across global banks, according to data from Breakout Point. Short sellers had amassed bearish positions worth more than $15.7 billion against European banks by Tuesday, according to S&P Global Market Intelligence. Millennium Management, Citadel, Wellington Management, Capital Fund Management, Odey Asset Management and Marshall Wace declined to comment. Marshall Wace held the largest disclosed number of short positions against banks, public filings from Austria, Italy, Sweden, Britain, Spain and Poland analysed by Breakout Point showed. Its shares were up 18% at 1602 GMT, in a broader European banking index (.SX7P) up 1.4%In the week to Wednesday, some 120 billion euros had been wiped off the value of European bank shares.

Big hedge funds including Marshall Wace and Odey Asset Management added to short positions against Europe's banks, regulatory filings seen by Reuters and data from Breakout Point showed. Marshall Wace held the largest disclosed number of short positions against banks, public filings from Austria, Italy, Sweden, Britain, Spain and Poland analysed by Breakout Point showed. The banks included BAWAG (BAWG.VI), FinecoBank (FBK.MI), Handelsbanken (SHBa.ST), CaixaBank (CABK.MC), NatWest Group (NWG.L) and PKO Bank Polski (PKO.WA). BNP Paribas shares fell by as much as 12% on Wednesday before recovering to show a loss of 9%, while Deutsche Bank shares fell almost 9%. In the week to Wednesday, some 120 billion euros ($126 billion) had been wiped off the value of European bank shares.

☆ Analysis: Investors see Erdogan's earthquake response as pivotal
▼ + stars: | 2023-02-09 | by ( Marc Jones | ) www.reuters.com time to read: +4 min

Kopf was referring to Turkey's 2002 election which came three years after a 7.6 magnitude earthquake in Izmit near Istanbul that killed nearly 18,000 people. The southeast region hit by Monday's disaster accounts for a much smaller 9.3% of national GDP and a modest 8.5% of exports. Erik Meyersson, a senior economist at Handelsbanken, said it was that power that voters would now need to see working. "But if he bungles the response, perhaps this is the straw that breaks the camel's back." Magnitude 7.9 earthquake hit southern Turkey on Feb. 6Reporting by Marc Jones; Editing by Susan FentonOur Standards: The Thomson Reuters Trust Principles.

☆ Sweden is facing its ‘day of reckoning’ as house prices plummet
▼ + stars: | 2023-01-11 | by ( Hannah Ward-Glenton | ) www.cnbc.com time to read: +7 min

But now property prices are tumbling. Sweden's property prices are facing a serious drop as the country's former central bank governor warns of lofty household debt levels. Central bank rate hikesIn 2022, Sweden's central bank undertook an aggressive interest rate hiking cycle that ricocheted through the property market. So basically once the interest rate is stabilised, we don't expect prices to continue declining," Brodin said. Sweden isn't the only European country experiencing a plunging property market post-pandemic, with some economists forecasting a similar downturn of between 20% and 25% in Germany.

☆ UK downturn moderates in December but recession begins - PMI
▼ + stars: | 2022-12-16 | by ( Andy Bruce | ) www.reuters.com time to read: +3 min

The UK S&P Global Composite Purchasing Managers' Index (PMI) rose unexpectedly to 49.0 from 48.2 in November, although it remained below the 50 threshold for growth. Separate data on Friday showed a surprise fall in retail sales in November, while consumer confidence remained close to all-time lows this month. "The releases still point to the UK being in a shallow, but protracted, recession at the end of 2022 and into 2023," said Daniel Mahoney, UK economist at Handelsbanken. S&P Global said the PMI was consistent with a roughly 0.3% drop in economic output in the fourth quarter. The manufacturing PMI slid to 44.7 from 46.5, marking its lowest level since May 2020 - during the depths of the first COVID-19 lockdown.

☆ Swedbank sees income growth outpacing costs as eyes set on ROE boost
▼ + stars: | 2022-12-06 | by ( ) www.reuters.com time to read: +1 min

The rival of banks including Handelsbanken (SHBa.ST), SEB (SEBa.ST) and Nordea (NDAFI.HE) said in a statement it would maintain its dividend policy of a 50% payout ratio and that any excess capital would be distributed to shareholders. "A sustainable bank is a profitable bank. Our target is therefore to reach a 15% return on equity," Chief Executive Jens Henriksson said. The bank, which is holding a capital markets day for investors and analysts on Tuesday, recorded a return on equity of 12.4% in the first nine months of this year. Reporting by Niklas Pollard, editing by Anna RingstromOur Standards: The Thomson Reuters Trust Principles.

☆ Swedish central bank calls on banks to restrict dividends as risks rise
▼ + stars: | 2022-11-09 | by ( ) www.reuters.com time to read: +2 min

The central bank said the biggest risk to banks was their exposure to highly indebted commercial property companies, but added high levels of household debt were also a problem. "The economic development entails an increased risk for major credit losses among major Swedish banks," the central bank said in a regular report on financial stability. Property companies make up about 43% of banks' corporate lending. "In the worst case, higher borrowing costs could lead to property companies defaulting on their payments," the Riksbank said in its report. Shares in Sweden's major banks traded lower on Wednesday, reflecting a fall in the wider European index.

☆ Swedbank's quarterly profit tops forecast as interest income gives boost
▼ + stars: | 2022-10-27 | by ( Johan Ahlander | ) www.reuters.com time to read: +2 min

SummarySummary Companies Swedbank operating profit tops forecastInterest income boosted by higher c.bank rateSays credit quality good despite turbulenceSTOCKHOLM, Oct 27 (Reuters) - Swedbank (SWEDa.ST) on Thursday reported a better-than-expected operating profit for the third quarter, underpinned by strong income from mortgages. The Swedish bank said in a statement its quarterly operating profit rose 24% to 8.70 billion crowns ($801 million) from 7.03 billion crowns posted last year, beating the 7.19 billion crowns seen by analysts in a Refinitiv poll. "Due to our position and business model, our net interest income benefits from this." Commission income fell to 3.63 billion crowns from 3.80 billion crowns last year, beating the 3.53 billion seen by analysts. Swedbank said high inflation, especially in the Baltic countries, meant that full-year expenses were likely to be around 1% higher than the cost cap of 20.5 billion crowns.

☆ Norway's DNB reports rising Q3 net profit, as expected
▼ + stars: | 2022-10-20 | by ( ) www.reuters.com time to read: +1 min

OSLO, Oct 20 (Reuters) - DNB (DNB.OL), Norway's largest bank, on Thursday became the latest Nordic bank to report a jump in third-quarter profits due to rising interest rates, in line with forecasts. Net profit rose to 7.6 billion crowns ($717.3 million) for the July-to-September quarter from 6.9 billion a year earlier, in line with the 7.7 billion expected by 12 analysts in a poll compiled by the bank. The Norwegian central bank was the first major central bank to begin hiking rates in September 2021 and expects to raise rates from their current level of 2.25% in the coming months. Shares in DNB are down 11.7% over the past year, lagging an Oslo benchmark index (.OSEBX) down 6.1% in the same period. Register now for FREE unlimited access to Reuters.com RegisterReporting by Gwladys Fouche, editing by Terje SolsvikOur Standards: The Thomson Reuters Trust Principles.

☆ UK gilts rise but week of uncertainty beckons as Truss quits
▼ + stars: | 2022-10-20 | by ( ) www.reuters.com time to read: +1 min

Investors further scaled back their bets on an outsized 1% point interest rate hike next month by the Bank of England. Deputy Governor Ben Broadbent questioned aggressive pricing in markets of future rate hikes in a speech earlier on Thursday. Twenty- and 30-year gilt yields , which had fallen as much as 13 basis points (bps) earlier in the day, were down 7 bps as of 1442 GMT. "UK financial market reaction to Liz Truss's resignation today has been fairly sanguine," said Daniel Mahoney, an economist at Handelsbanken. Register now for FREE unlimited access to Reuters.com RegisterReporting by Andy Bruce Editing by William SchombergOur Standards: The Thomson Reuters Trust Principles.

☆ Nordea profit tops consensus, outlook improves
▼ + stars: | 2022-10-20 | by ( ) www.reuters.com time to read: +1 min

STOCKHOLM, Oct 20 (Reuters) - Finnish banking group Nordea (NDAFI.HE) posted third-quarter operating earnings just above market expectations on Thursday on the back of rising interest income and said its outlook for the full year had improved. The Nordic region's biggest bank reported an operating profit of 1.30 billion euros ($1.27 billion) in the quarter, up from 1.27 billion a year ago, beating the mean forecast of 1.26 billion in a Refinitiv poll of analysts. Earlier this week, Swedish rival Handelsbanken (SHBa.ST) reported record earnings on the back of a surge in interest income while reassuring about credit quality ahead. The Nordea group, created through the merger of several Nordic banks just over two decades ago, raised its full-year outlook somewhat, forecasting a cost-to-income ratio of 48–49% versus the previous 49–50%. ($1 = 1.0238 euros)Register now for FREE unlimited access to Reuters.com RegisterReporting by Niklas Pollard, editing by Terje SolsvikOur Standards: The Thomson Reuters Trust Principles.

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