DIRS.INFO The most relevant business & tech news

☆ Morning Bid: China dampens the mood again
▼ + stars: | 2023-07-05 | by ( ) www.reuters.com time to read: +2 min

A look at the day ahead in European and global markets from Sonali DesaiChina's faltering economic recovery has once again dominated activity in financial markets, dampening risk sentiment and giving the dollar a broad boost in relatively muted moves after the U.S. July 4 holiday. The private-sector Caixin/S&P Global services purchasing managers index hit a five-month low in June, reflecting growing vulnerability in a once resilient sector of the massive economy. The data quickly reversed a day-old bounce in the Chinese yuan, which appeared on Tuesday to have finally paid heed to the central bank's series of stronger-than-expected midpoint settings and other measures to slow its decline. Beijing's export curbs on two widely used metals in semiconductors and electric vehicles continued to dominate headlines, drawing strident commentary in the domestic press just before Treasury Secretary Janet Yellen's visit to China. The European and UK calendar is dominated by final services and composite PMIs for June, also expected to confirm a slowing in what has been a consumption-led economic recovery.

Persons: Sonali Desai, Janet Yellen's, Tesla, BYD, Francois Villeroy de Galhau, Jacqueline Wong Organizations: U.S, P Global, ECB policymaker, Paris U.S, Thomson Locations: China, U.S, Paris

☆ Euro zone consumers more hopeful on inflation
▼ + stars: | 2023-06-06 | by ( ) www.reuters.com time to read: +3 min

[1/2] A shopper pays with a five Euro bank note to buy eggs at a local market in Nice, France, April 26, 2023. REUTERS/Eric GaillardFRANKFURT, June 6 (Reuters) - Euro zone consumers lowered their inflation expectations, a fresh European Central Bank survey showed on Tuesday, a relief for policymakers after an unexpected surge a month earlier, even if underlying price growth is still likely to be stubborn. Still, Knot warned that it could still take some time before inflation, at 6.1% in May, is fully under control. "Because inflation was high for a long period, underlying inflationary pressures have built up," Knot said in a speech. The ECB's consumer expectations survey also included a new nugget that could support arguments for more cautious policy tightening.

Persons: Eric Gaillard FRANKFURT, Klaas, Joachim Nagel, Francois Villeroy de Galhau, Balazs Koranyi, Bernadette Baum, Sharon Singleton Organizations: REUTERS, European Central Bank, ECB, Thomson Locations: Nice, France

☆ Europe stocks climb after U.S. debt ceiling deal; Swedish property group SBB soars 30%
▼ + stars: | 2023-06-02 | by ( Jenni Reid | ) www.cnbc.com time to read: +1 min

The Stoxx 600 index was up 1% around midday London time, as it climbed further from the two-month low hit on Wednesday. Mining stocks led gains, up 4.6%, while oil and gas rose 2% ahead of the June 4 OPEC+ meeting . European stock markets were higher Friday, after U.S. lawmakers passed a bill to raise the debt ceiling and cap government spending for two years, days before the default deadline. Recent comments from officials have indicated the central bank may opt to skip another hike at its June meeting. Governing Council member Francois Villeroy de Galhau said Thursday further hikes would be "relatively marginal" and "most of the path is complete."

Persons: Christine Lagarde, Francois Villeroy de Galhau Organizations: Mining, Federal Reserve, European Central Bank, ECB Locations: U.S, Europe

☆ ECB rates to peak by summer - Villeroy
▼ + stars: | 2023-05-22 | by ( ) www.reuters.com time to read: +1 min

PARIS, May 22 (Reuters) - European Central Bank interest rate hikes are likely to peak out by the end of summer, but the more important issue now is how long rates stay elevated than the exact level, French ECB policymaker Francois Villeroy de Galhau said on Monday. Villeroy said the lag between the ECB's exceptionally fast rate hikes over the last 10 months and their impact on the economy was more likely at the upper end of the two-year range economists expect. That made monitoring the pass-through of those hikes, which saw rates increased by 375 basis points, more important for monetary policy moves in the coming months than how much further rates are increased. "I expect today that we will be at the terminal rate not later than by summer," Villeroy told an event held at the Bank of France. "In the meantime, we have three possible Governing Councils either for hiking or pausing but don't deduce a guidance from this or a preference for a given terminal rate," he added.

☆ ECB policymakers promise more hikes to beat inflation
▼ + stars: | 2023-05-05 | by ( ) www.reuters.com time to read: +3 min

"The essence of the effort has been done, although there will probably be a few more rate hikes," Villeroy told French broadcaster Radio Classique. Villeroy explained Thursday's smaller rate increase by saying higher rates were beginning to have an effect on inflation. And two ECB surveys also published on Friday showed economists had cut their inflation forecasts for this year and the next - to 5.6% and 2.6% respectively - and that companies were moderating the pace of price hikes. The ECB aims to bring inflation back to 2% by 2025, "maybe even by the end of 2024", he added. "We will keep rates high for a sufficiently long time to get inflation back to 2%," the Lithuanian central bank chief said.

☆ European shares rise on smaller ECB rate hike, upbeat earnings
▼ + stars: | 2023-05-05 | by ( Shubham Batra | ) www.reuters.com time to read: +3 min

SummarySummary Companies STOXX 600 index up 0.1%Adidas jumps on upbeat earningsEvotec drops on leaving MDAXMay 5 (Reuters) - European shares rose on Friday, as the European Central Bank's smaller rate hike, and market-beating results from Adidas and Apple boosted sentiment. The pan-European STOXX 600 index (.STOXX) edged up 0.1%, but is on track for its second consecutive weekly loss. Energy (.SXEP) and utilities shares (.SXPP) led the gains on the index, rising 1.4% and 1.0% respectively, while food and beverage shares (.SX3P) slid 0.4%. "Inflation pressures worldwide help in driving equity markets although we don't like to pay higher prices, as consumers it eats into our pockets. The higher prices go to some company reaping the rewards of those higher prices," said Chi Chan, Portfolio Manager and Senior Research Analyst, Federated Hermes.

☆ France's Le Maire wants to break food price inflation "spiral" by autumn
▼ + stars: | 2023-05-03 | by ( ) www.reuters.com time to read: +2 min

Summary Le Maire: economic growth remains solidLe Maire: meeting next week to tackle inflation concernsPARIS, May 3 (Reuters) - Finance Minister Bruno Le Maire said on Wednesday that he would meet with retailers and suppliers next week to discuss ways to break the food price inflation "spiral" by autumn, which is a major concern for cash-strapped consumers. Le Maire also told Franceinfo radio that economic growth remained solid in France despite recent strikes and protests against President Emmanuel Macron's legislation to raise the retirement age by two years to 64. Le Maire has since repeatedly called on both sides to reopen negotiations to ensure that a recent fall in global wholesale food prices is passed on to consumers. Le Maire has even threatened to take action if they do not respond to his calls. Bank of France governor and European Central Bank member Francois Villeroy de Galhau said last month he expected food price inflation to start easing in the second half of this year.

☆ Euro zone inflation picks up but core unexpectedly slows
▼ + stars: | 2023-05-02 | by ( ) www.reuters.com time to read: +3 min

FRANKFURT, May 2 (Reuters) - Euro zone inflation accelerated last month but underlying price growth eased unexpectedly, adding to arguments for a smaller interest rate hike at the European Central Bank's regular policy meeting on Thursday. Overall price growth in the 20 nations sharing the euro currency picked up to 7.0% in April from 6.9% a month earlier, Eurostat said on Tuesday, in line with expectations in a Reuters poll of economists. Excluding volatile food and fuel prices, core inflation slowed to 7.3% from 7.5%, while an even narrower measure, which excludes alcohol and tobacco, slowed to 5.6% from 5.7%, coming below forecasts for 5.7% for its first decline since last June. In a hopeful development for the ECB, processed food, alcohol and tobacco inflation slowed a full percentage point to 14.7%, suggesting that a long-awaited turnaround in food prices may now be happening. Services inflation accelerated to 5.2% from 5.1% but the price growth of non-energy industrial goods, another crucial segments, slowed to 6.2% from 6.6%.

LONDON, May 1 (Reuters) - Inflation in the euro area is too high for comfort, meaning markets expect the European Central Bank to deliver its seventh straight interest rate hike on Thursday. 1/ How much will the ECB hike rates by on Thursday? Most analysts expect at least one more rate move after Thursday, even as the Federal Reserve looks set to pause its rate hike campaign. Market pricing suggests ECB rates will peak around 3.6% this year, and Belgium's central bank governor Pierre Wunsch says he wouldn't be surprised to see rates rise to 4%. Tuesday's bank lending should offer some clues but it might be too early to gauge the full impact of the March banking crisis on financing conditions.

☆ France's food-price inflation to ease off by September, minister says
▼ + stars: | 2023-04-30 | by ( ) www.reuters.com time to read: +1 min

PARIS, April 30 (Reuters) - Food price inflation in France - which has been a major concern for consumers - should ease off by September, said government minister Olivia Gregoire on Sunday. "By the time people come back from their holidays in September, we will have a visible decrease in the prices you see on the shelves and in terms of food price inflation," Gregoire, who is a government minister responsible for small-and-medium sized enterprises (SMEs), told France Inter radio. Gregoire's comments echoed those from Bank of France governor and European Central Bank member Francois Villeroy de Galhau, who said earlier this month that he expected food price inflation to start easing in the second half of this year. France's headline inflation level rose to 5.9% in April from 5.7% in March. The French inflation level stood at 6.9%, as measured by a European Union-harmonised consumer price index.

☆ EUROPE All aboard the tech hype train as earnings rumble in
▼ + stars: | 2023-04-24 | by ( Wayne Cole | ) www.reuters.com time to read: +3 min

It's been a subdued start to a busy week studded with tech earnings and major data from both sides of the Atlantic. Analysts at Wedbush Securities are tipping upside surprises from the tech majors, with an accent on cost cutting and job shedding across the industry. Another risk bubbling away in the background is the U.S. debt ceiling with the House set to vote on the Republican plan to extend the debt limit in exchange for spending cuts. The cost of insuring exposure to U.S. sovereign debt rose to the highest level since 2011 last week. One-year CDS have climbed to around 100 bps, well above the 82 bps seen during the 2011 U.S. sovereign debt downgrade.

Companies European Central Bank FollowLONDON, April 24 (Reuters) - France's central bank governor François Villeroy de Galhau has pushed back against criticism of central banks' increasing involvement in the fight against climate change, calling the issue a "must have" focus. "Central banks' core mandate worldwide is price stability, and climate change already affects the level of prices and activity," Villeroy stressed. The debate about how much influence central banks can have in tackling climate issues has become increasingly divisive this year. Villeroy, however, who has long been a firm advocate of doing more, urged central banks and others to come up with better models of how climate change is likely to alter economies. It is also aiming to release short-term climate change scenarios by the end of 2024, which should show more adverse developments, incorporate tougher "shocks" and directly explore the potential impacts of climate change on inflation.

☆ Morning Bid: Tech tally in focus, China alarms Europe
▼ + stars: | 2023-04-24 | by ( ) www.reuters.com time to read: +5 min

Otherwise, a packed earnings season dominates this week's investment radar as more than a third of S&P500 companies report. Including Intel (INTC.O), those five tech stocks have accounted for two-thirds of the S&P500's gains this year - with the Artificial Intelligence craze sparked by the emergence of ChatGPT adding a new non-cyclical attraction to the sector. But before markets get a taste of Q1 tech profits, the reverberations from last month's banking blow-up are still being absorbed. European stocks were slightly negative and U.S. stock futures also marginally in the red ahead of Wall Street's open. The dollar was mixed - up against Asian currencies but off against European currencies amid hawkish European Central Bank soundings on interest rates.

☆ Exclusive: ECB policymakers converging on 25-bps rate hike in May - sources
▼ + stars: | 2023-04-13 | by ( Balazs Koranyi | ) www.reuters.com time to read: +3 min

The ECB has raised rates by at least 50 basis points each at six successive meetings -- the fastest pace on record -- to fight stubbornly high inflation. The sources said that some are advocating no change in May - mostly the same Southern European policymakers who did not support last month's 50 basis point increase, while others - also a small group - argue for another 50 basis point hike. Klaas Knot of the Netherlands said it was unclear whether 50 basis points would be needed or if 25 was enough. Slovakia's Peter Kazimir said the ECB could perhaps slow down the pace of its increases while Austria's Robert Holzmann meanwhile backed another 50 basis point move. Markets currently price 25 basis point hikes each in May and June, while a third such increase is fully priced in by September.

☆ Exclusive: ECB policymakers converging on 25-bps rate hike in May , sources say
▼ + stars: | 2023-04-13 | by ( Balazs Koranyi | ) www.reuters.com time to read: +3 min

"I am very well aware of the delicacy of the situation ... but we are not yet at the finish line." Fellow hawk Simkus also told reporters in Vilnius he believed that Thursday's "was not the last rate hike". But neither policymaker made a case for a rate increase as soon as the next ECB meeting, and Kazimir said it was useless to speculate about the May 4 decision. French central bank governor Francois Villeroy de Galhau said the hike reflected the ECB's inflation-fighting priorities and signalled confidence in the solidity of European banks. "There are risks to inflation on both sides, but in my view, upward risks are much greater," he said.

March 17 (Reuters) - European Central Bank supervisors met to tackle growing cracks in the banking system on Friday after a $30 billion lifeline for U.S. lender First Republic Bank (FRC.N) eased fears of its imminent collapse. The rescue package came less than a day after Credit Suisse (CSGN.S) clinched an emergency central bank loan of up to $54 billion to shore up its liquidity. The two deals helped restore some calm to global markets, after a torrid week for banking stocks. "French and European banks are very solid," ECB policymaker and French central bank governor Francois Villeroy de Galhau, told BFM business radio. Japan's finance ministry, financial regulator and central bank said they would meet on Friday to discuss developments.

☆ ECB's Villeroy: rate hike signals strong confidence in European banks
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +1 min

PARIS, March 17 (Reuters) - The European Central Bank's decision to raise interest rates by half a point on Thursday reflects the central bank's priority of fighting inflation and also signals strong confidence in the solidity of European banks, French ECB policymaker Francois Villeroy de Galhau said on Friday. "French and European banks are very solid," Villeroy, who is also governor of the French central bank, said on BFM business radio. "I think we sent a signal of confidence that is strong and dual. It reflects both confidence in our anti-inflation strategy and confidence in the solidity of European and French banks," Villeroy said. While the ECB had "the tools to ensure the liquidity of banks", Villeroy said it was unlikely it would have to use them as "European banks are not in the same situation as U.S. banks".

☆ ECB's Villeroy: French inflation peak seen in H1
▼ + stars: | 2023-03-09 | by ( ) www.reuters.com time to read: +1 min

PARIS, March 9 (Reuters) - France's inflation peak will come in the first half of this year, French European Central Bank policymaker Francois Villeroy de Galhau said on Thursday, adding inflation across the euro zone was still too high and remained the top priority for monetary policy. "I can't comment on interest rates, but what is very important is the inflation expectations", Villeroy said, adding: "The peak will come this semester, and then inflation will halve by the end of the year." The ECB has already raised rates by 3 percentage points since July and essentially promised another half a percentage point increase on March 16, but investors have recently speculated on an even bigger move given poor inflation data. Several policymakers have warned recently that ECB rate hikes need to continue until core inflation turns around and starts falling towards the ECB's 2% target. Reporting by Tassilo Hummel; Editing by Benoit Van OverstraetenOur Standards: The Thomson Reuters Trust Principles.

☆ Fed’s reluctance to go green will cost the Earth
▼ + stars: | 2023-03-07 | by ( Ben Winck | ) www.reuters.com time to read: +8 min

WASHINGTON, March 7 (Reuters Breakingviews) - Central banks don’t think they can do much about the environment. The U.S. Federal Reserve has done even less, arguing it should not tackle climate change without an explicit order from Congress. In a 2021 survey by Invesco, 63% of responding central banks said addressing climate change fell within their mandate. Central banks aren’t best equipped to lead the green transition, anyway. There’s also a valid concern that focusing on climate change could water down the Fed’s mission to fight inflation.

FRANKFURT, March 1 (Reuters) - The European Central Bank's top three shareholders charted different paths for interest rates on Wednesday, in a preview of the difficult debate awaiting the ECB in the coming weeks. Bundesbank President Joachim Nagel appeared to back those expectations, anticipating "further significant interest rate steps" after March, when the ECB has already pencilled an increase worth half a percentage point. "The interest rate step announced for March will not be the last," Nagel, a policy hawk who favours higher rates, said in a speech. "Further significant interest rate steps might even be necessary afterwards, too." Based on national data out already, Barclays predicted that underlying inflation could accelerate to 5.4% from 5.3%.

☆ ECB's Villeroy sees inflation peak in first half of year, no risk of recession
▼ + stars: | 2023-03-01 | by ( Marine Strauss | ) www.reuters.com time to read: +1 min

Paris, March 1 (Reuters) - Inflation in France is likely to reach its peak in the first half of the year and, barring a major world event, the risk of recession could be ruled out, French European Central Bank policymaker Francois Villeroy de Galhau said on Wednesday. Villeroy, who is also governor of the French central bank, said inflation should be back to around 2%, the ECB's target, by the end of 2024 to the end of 2025. "It will be longer - we must not claim victory too quickly - but more gradual and more pragmatic in the pace of the next hikes," Villeroy told French lawmakers. While it is too early to tell when rates would reach their peak, Villeroy said it would be "desirable" by summer, at the latest by September. Reporting by Marine Strauss Editing by Raissa Kasolowsky and Sharon SingletonOur Standards: The Thomson Reuters Trust Principles.

☆ ECB's Villeroy says markets 'overreacted' with rate hike bets
▼ + stars: | 2023-02-22 | by ( ) www.reuters.com time to read: 1 min

FRANKFURT, Feb 22 (Reuters) - Investors betting on more interest rates hikes by the European Central bank have 'overreacted' to strong U.S. data and ECB communication since last week, the Banque de France Governor said in an interview published on Wednesday. "There is an excess of volatility in the terminal rate expectations," François Villeroy de Galhau told French daily Les Echos. "Put differently, markets have overreacted a little since Thursday." Villeroy said that peak interest rates could be reached by the end of the summer but the ECB was under no obligation to raise rates at each of its meetings until September. Reporting By Francesco CanepaOur Standards: The Thomson Reuters Trust Principles.

☆ Goldman Sachs expects ECB to raise rates thrice this year
▼ + stars: | 2023-02-21 | by ( ) www.reuters.com time to read: 1 min

Feb 21 (Reuters) - Goldman Sachs said it was expecting the European Central Bank to raise interest rates thrice this year, taking the terminal rate to 3.5% from 3.25% estimated earlier. In a note dated late Monday, the brokerage said in addition to an increase of 50 basis points in March and 25 basis points in May, it was estimating a 25 basis-point hike in June. Goldman's change in expectations comes after hawkish commentary from ECB board member Isabel Schnabel and French central bank chief Francois Villeroy de Galhau, two influential policymakers from the 26-member Governing Council on Friday. Markets currently see ECB rates peaking at around 3.7% by the end of summer. Reporting by Reshma Rockie George; Editing by Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

"Markets are priced for perfection," Schnabel, the head of the ECB's market operations, told Bloomberg. Money markets now show investors betting on a peak ECB rate at around 3.75% by late summer, up from levels around 3.4% earlier this month, as a string of hawkish ECB comments in recent days unwound earlier bets. He and fellow board member Fabio Panetta said the impact of many of the ECB's rate hikes so far had yet to be felt by the economy, with the latter calling for "small steps" going forward. The ECB raised rates by 50 basis points this month and pre-announced another increase of the same size for March 16. But it kept an open mind about future moves, with most policymakers expecting another rate hike in May.

Search resuls for: "Villeroy"

25 mentions found