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☆ These stocks and bonds are set to win from the U.K.'s budget, analysts say
▼ + stars: | 2024-10-30 | by ( Ganesh Rao | ) www.cnbc.com time to read: +6 min

The U.K.'s Labour Party is set to unveil its national budget for the first time in 14 years later on Wednesday. Investment bank analysts have highlighted several stocks that could win or lose ground if the rumored measures are unveiled or curtailed. The Wall Street bank's analysts added that "U.K. long-dated yields might decline with easing budget uncertainty and continued inflation relief". The chancellor is reported to want to remove the inheritance tax relief available to investors holding stocks listed in this market in the Wednesday budget. Such a move may entice existing investors to sell the stocks, if the tax policy change likely impacts them.

Persons: Rachel Reeves, Goldman Sachs, Christian Mueller, Glissmann, Pound Sterling, Investec's Ben Newell, Alan Brierley, Investec's, Genuity, Canaccord Genuity, Alex Brooks, Justin Bates, Portia Patel, Michael Bloom Organizations: Labour, Finance, Investment, London Stock Exchange, Foresight, Fund, Greencoat, Renewables, Infrastructure, International, AIM, London Stock Exchange's, Technology Ashtead Tech Locations: United Kingdom

☆ Analyst discusses the impact of the UK and French elections on the sterling and euro
▼ + stars: | 2024-07-04 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAnalyst discusses the impact of the UK and French elections on the sterling and euroMahjabeen Zaman of ANZ says a Labour Party victory in the U.K. elections would have little short-term impact on the pound sterling.

Organizations: ANZ, Labour Party

☆ There's a 'stealth erosion' in global US dollar reserves, but there's no dominant replacement yet
▼ + stars: | 2024-06-13 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Read previewThe US dollar is in a state of "stealth erosion," the International Monetary Fund, or IMF, wrote in a report on Tuesday. This effect masked the shift of central banks and governments out of dollar reserves. Instead, the shares of "non-traditional reserve currencies" have risen, according to the IMF. These include the Australian dollar, Canadian dollar, Chinese renminbi, South Korean won, Singaporean dollar, and Nordic currencies. AdvertisementThe dollar's decline in FX reserves doesn't appear to be about sanctionsThe IMF's report comes amid ongoing discussions about de-dollarization.

Persons: — Organizations: Service, International Monetary Fund, Business, US Federal Reserve, IMF, Canadian, South Korean, greenback Locations: Russia, Moscow, Ukraine

☆ These are the only 2 ETFs that made money every year for the past decade
▼ + stars: | 2024-02-19 | by ( Ganesh Rao | ) www.cnbc.com time to read: +4 min

Two funds investing in defensive stocks are the only exchange-traded funds in the world that had a positive return every year over the past decade, CNBC Pro research has found. The two funds stood out among 8,300 equity ETFs worldwide screened by CNBC Pro using FactSet data. Over that period, the ETF more than doubled investors' money, with a cumulative total price gain of 118%. While the MSCI Healthcare index, valued in euros, dipped slightly into negative territory in 2016, 2020 and 2022, the Amundi ETF's total returns have remained positive because of the weakness in the pound sterling. However, Tabet also pointed out that the health-care sector, especially European pharma, tends to underperform in election years.

Persons: Joakim Tabet, Kepler, Tabet, Vincent Denoiseux, David Evans, Evans, Kepler Cheuvreux Organizations: CNBC, Healthcare UCITS, London Stock Exchange, TSX, Consumer Staples, CNBC Pro, Outlook Novo Nordisk, Novo Nordisk's, pharma, European pharma Locations: Canadian, Europe, Danish, Novo, U.S

☆ Foreign exchange funds double average returns due to the biggest divergence in central bank rates since 2008
▼ + stars: | 2023-11-08 | by ( Aruni Soni | ) www.businessinsider.com time to read: +2 min

Foreign exchange funds are headed for an annual return of around 7%, according to Bloomberg. AdvertisementAdvertisementCurrency investors are seeing big returns this year as differences in interest rates across the top 10 global economies are at their widest since 2008. Foreign exchange funds are looking at an annual return of around 7%, according to data from BarclayHedge cited by Bloomberg. Currency carry trades are one of the most popular trades in the foreign exchange market, but they have been quaking as returns have become harder to maintain. Many foreign exchange funds have closed over the years, unable to defend paltry growth.

Persons: — Organizations: Bloomberg, Service, Nomura's Group, US Federal, Bank of Japan

☆ Morning Bid: Treasury yields march on
▼ + stars: | 2023-09-26 | by ( ) www.reuters.com time to read: +2 min

Long-term Treasury yields, traditionally subdued in Asian hours, spiked to a fresh 16-year peak , keeping the dollar close to multi-month tops to G-3 rivals the euro, pound sterling and yen. Reuters GraphicsAngst over tighter financial conditions pulled down Asia Pacific stocks as well, overshadowing Wall Street's overnight rally and sounding a warning for European equities. Investor jitters were evident in the underperformance of the Hang Seng's property index (.HSMPI), down a resounding 1.9%. Moody's has upped the stakes with a stern warning that potentially puts the country's last triple-A rating on the line. It comes as the U.S. budget deficit continues to widen on higher spending and falling tax receipts.

Persons: Jonathan Ernst, Kevin Buckland, Hong, Moody's, Philip Lane, Riksbank's Per Jansson, Jacqueline Wong Organizations: . Federal, REUTERS, Reuters, Asia, Japan's Nikkei, fester, Bloomberg, U.S, Treasury, Thomson Locations: Washington, Asia Pacific

☆ Sterling hits fresh multi-month lows on dollar and euro
▼ + stars: | 2023-09-25 | by ( Alun John | ) www.reuters.com time to read: +2 min

Pound Sterling notes and change are seen inside a cash resgister in a coffee shop in Manchester, Britain, Septem,ber 21, 2018. Sterling, on Monday, dropped as much as 0.25% to $1.2213 its lowest since March 2023, though later steadied to trade flat on the day at $1.2242. The euro on Monday briefly touched 87.03 pence, its highest since May, and was last flat a touch below that level. "What we’re seeing today is the Chinese real estate worries bleeding into the European session, weighing on equity markets and then on the euro and sterling," said Nick Rees, FX market analyst at Monex Europe. "That builds on what happened last week with the Bank of England," said Rees, "Markets are now thinking about what the Bank is seeing in the economy."

Persons: Pound Sterling, ber, Phil Noble, BOE, Liz, Nick Rees, Rees, Alun John, Alex Richardson Organizations: REUTERS, Bank of, Bank of England, European Central Bank, Federal Reserve, FX, Monex, Global, China, HK, Thomson Locations: Manchester, Britain

☆ Trader who founded XTX sees fortune soar to $11 billion as quant firm becomes a top global player
▼ + stars: | 2023-08-21 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

Alex Gerko's wealth is now estimated at $10.8 billion as his firm XTX has become a top global player. He is now number 182 on the Bloomberg Billionaires Index, which just calculated that his fortune doubled. The index added $5 billion to his wealth compared to the prior trading day. While revenue still trails Citadel Securities' $7.5 billion in 2022, XTX is emerging as one of the top players in global markets. The firm handles a trading volume of around $300 billion a day, involved in equities, commodities, currencies, and fixed-income.

Persons: Alex Gerko's, XTX, Alex Gerko, Stanley Druckenmiller's, Gerko — Organizations: Bloomberg, Service, Deutsche Bank, XTX, Citadel Securities, Financial Times Locations: Wall, Silicon, Russian

☆ Sterling breaks three-day fall after UK GDP beats forecasts
▼ + stars: | 2023-08-11 | by ( ) www.reuters.com time to read: +1 min

Wads of British Pound Sterling banknotes are stacked in piles at the Money Service Austria company's headquarters in Vienna, Austria, November 16, 2017. REUTERS/Leonhard Foeger/File PhotoLONDON, Aug 11 (Reuters) - The pound broke three straight days of losses on Friday after data showed the British economy grew more than expected in June, which boosted sterling against the dollar and the euro. British economic output grew by 0.5% in June, figures from the Office for National Statistics showed on Friday. Sterling was last up 0.3% at $1.2708, compared with $1.2685 before the data, but was still on course for a fourth consecutive weekly loss against the dollar. The euro fell against the pound, dropping 0.1% on the day to 86.50 pence, down from 86.64 earlier on.

Persons: Pound, Leonhard Foeger, Sterling, Amanda Cooper, Samuel Indyk Organizations: Money Service Austria company's, REUTERS, Office, National Statistics, Thomson Locations: Vienna, Austria, British

☆ Welcome to the Dollar War: a Global Fight Over America's Economic Dominance
▼ + stars: | 2023-07-16 | by ( Phil Rosen | ) www.businessinsider.com time to read: +17 min

The US even reminded everyone just how influential the buck is when it effectively froze Russia out of the global financial system with sanctions last year. Becoming the issuer of the global reserve currency is about trust. The US has controlled the global reserve currency for 102 years — giving it a special status in the world economy. Still, given that the country controlling the global reserve currency holds that status of an average of 94 years, history seems to indicate it's high time for a successor. Why shouldn't the financial world resemble something closer to the mosaic of cultures, politics, and nations that exists today?

Persons: Chenzi Xu, there's, Xu, —, Ron Temple, Gregory Brew, Eurasia's Brew, dollarizing, Stephen Jen, Jen, we've, Stanford's Xu, Luiz Inácio Lula da Silva, Josh Lipsky, " Lipsky, It's, Alexander Wise, Jan Loeys, Loeys, dollarization, Wise, Lazard's Temple, isn't, Phil Rosen Organizations: Stanford, Federal, European Central Bank, People's Bank of China, Lazard, Publishing, Getty Images, International Monetary Fund, Bank of International Settlements, Eurasia Group, Sandman's, Eurizon, IMF, Atlantic Council, JPMorgan Locations: Russia, Israel, France, China, America, Saudi Arabia, Brazil, India, Pakistan, Bolivia, Iraq, South Africa, Beijing

☆ Fine wine is souring as investment prices sink
▼ + stars: | 2023-07-12 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —Fine wine prices have been rising consistently for years, attracting investors looking to hedge against inflation, economic turmoil and stocks. The company currently manages $375 million worth of fine wine assets (that’s a 45% increase year on year). Fine wine has had a compound annual growth rate of 10% over the last 30 years, according to the Liv-Ex investables index, which tracks the going rates for fine wines. Leading the way in losses is Bordeaux, which experienced the largest drop of all fine wine categories in June. That’s a bit worrisome, said Tiwari, as Bordeaux is the most established region in the fine wine investment market and typically maintains its price stability.

Persons: Jay, David Beckham, Stephen Curry, Liv, ”, Atul Tiwari, That’s, Tiwari, SVB, Rob McMillan, “, we’re, LIV Golf, Chris Isidore, Richard Blumenthal, Ron Price, Jimmy Dunne, Sen, ” Dunne, LIV, Clare Duffy, Clare Organizations: CNN Business, Bell, New York CNN, Cult Wines, SEC, First Citizens Bank, “, PGA Tour, Saudi, PGA, Connecticut Democrat, University of Pennsylvania Locations: New York, Bordeaux, London, Silicon, Napa, California, “ California, Saudi, American, Connecticut, Clare

Asked if he thought the world was in a new Cold War, Kostin said that it was now a "hot war" that was more dangerous than the Cold War. VTB, Kostin said, was discussing using yuan in settlements with third countries. "We have already entered into a hot war," Kostin said of the crisis with Ukraine. The situation is worse than in the Cold War, it is very difficult and alarming." Asked if Russia's economy would remain a free economy, Kostin said: "I very much hope so."

Persons: Dado Ruvic, Andrei Kostin, Kostin, Vladimir Putin, Putin, VTB, Guy Faulconbridge, Mark Potter Organizations: REUTERS, U.S ., European Union, Reuters, U.S, JPMorgan, VEB, EU, West ., Monetary Fund, Thomson Locations: Russian, China, MOSCOW, Russia, Ukraine, United States, Moscow, Australia, Britain, Soviet Union

☆ Bank of England governor says the UK is facing a wage-price spiral
▼ + stars: | 2023-05-18 | by ( Jenni Reid | ) www.cnbc.com time to read: +2 min

Susannah Ireland | Afp | Getty ImagesLONDON — After more than a year of warnings, Bank of England Governor Andrew Bailey says the U.K. is now experiencing a wage-price spiral despite 12 consecutive central bank interest rate hikes. "But it also reflects second-round effects as the external shocks we have seen interact with the state of the domestic economy." These areas of persistence, he continued, include domestic wage growth and price setting. The U.K. inflation rate surprised economists by holding above 10% in March. The Bank of England sees signs of a slowdown in wage growth, but observes that services inflation remains elevated, Bailey added.

☆ The U.S. Dollar as Reserve Currency: Probably Still Safe - The New York Times
▼ + stars: | 2023-05-02 | by ( Paul Krugman | ) www.nytimes.com time to read: +2 min

Britain, which has the deepest deficits, used to own a globally dominant currency — but the pound sterling stopped playing any important international role generations ago. The Australian dollar and the Canadian dollar have never been widely used outside their issuing nations. So where does the idea that dollar dominance gives us a special ability to run deficits come from? Why, then, are people making such a big deal over the possible end of dollar dominance? The bottom line in most of this analysis is that the dollar is widely used because it’s widely used — that all of the various roles the dollar plays create a web of self-reinforcement, keeping the dollar pre-eminent.

☆ This fund is trouncing the S&P 500 by focusing on international stocks
▼ + stars: | 2023-03-05 | by ( Alex Harring | ) www.cnbc.com time to read: +8 min

A fund once led by an investing great known for finding opportunities in distressed assets is beating the market — but with a somewhat different focus. The Third Avenue Value Fund (TVFVX) outperformed the S & P 500 in 2022, rising 11.2% while the broad-market index shed 19.4%. 'Go where the opportunities are' Fine said that can happen by looking at both country and industry trends. The fund had just over 40% and 30% of its holdings in small- and mid-cap companies, respectively, at the end of 2022. portfolio manager Matt Fine Fine was able to work under Whitman and eventually take over the value fund, which is one of the first the company created, in 2017, a year before Whitman died.

☆ Gold will hit $3,000 an ounce and the dollar will surge 50% against the Japanese yen. Here are the 10 outrageous 2023 predictions from one European bank
▼ + stars: | 2022-12-06 | by ( Carla Mozée | ) www.businessinsider.com time to read: +7 min

Gold surging to $3,000 an ounce is part of Saxo Bank's list of 10 Outrageous Predictions for 2023. The Danish bank's annual list also foresees Japan setting a floor of 200 yen to temporarily halt a surging US dollar. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. Saxo predicted 2023 as the year the market discovers that inflation will continue to burn hot for the foreseeable future, driving gold to $3,000 an ounce. "Under-owned gold rips higher on the sea-change reset in forward real interest rate implications of this new backdrop, it said.

☆ FTX collapse shows why crypto must be regulated before it threatens stability of financial system, says Bank of England official
▼ + stars: | 2022-11-21 | by ( Pete Syme | ) www.businessinsider.com time to read: +3 min

The Bank of England's deputy governor for financial stability spoke at a conference on Monday. Crypto must be regulated before it's large enough to threaten overall financial stability, he said. Jon Cunliffe, the bank's deputy governor for financial stability, spoke at a conference at Warwick Business School on Monday. Cunliffe said that while crypto isn't large enough "to threaten the stability of the financial system, its links with mainstream finance have been developing rapidly." In his speech on Monday, Cunliffe added that some crypto technologies could also improve the financial system.

☆ UK bond dealers see jump in gilt issuance for 2023/24 - Reuters poll
▼ + stars: | 2022-11-16 | by ( David Milliken | ) www.reuters.com time to read: +4 min

However in the 2023/24 financial year, gilt issuance is expected to jump to 238 billion pounds, according to the median poll forecast, the second highest ever after the 486 billion pounds of issuance in 2020/21 to fund COVID-19 support measures. “It feels like there shouldn’t be too many surprises, but the gilt market remains febrile, and even small news could create oversized reactions,” he said. Gilt issuance is distinct from public sector net borrowing (PSNB), the main borrowing measure forecast by Britain’s Office for Budget Responsibility. Here GEMMs expect PSNB, excluding public-sector banks, to rise to a median 187 billion pounds, almost double the 99 billion pounds forecast by the OBR in March. Next year it is forecast to fall to 142 billion pounds, versus an OBR forecast of 50.2 billion pounds.

☆ Pound sterling rallies after PM Truss quits
▼ + stars: | 2022-10-20 | by ( Reuters Editorial | ) www.reuters.com time to read: 1 min

PoliticsPound sterling rallies after PM Truss quitsPostedThe UK's currency recovered recent losses on Thursday (October 20) and investors reined in their bets on a big Bank of England interest rate hike, as UK Prime Minister Liz Truss announced her resignation just six weeks after being appointed. Angela Johnston reports.

☆ The pound jumps against the dollar after Liz Truss resigns as prime minister, but more volatility could be in store for markets as political and economic risks linger
▼ + stars: | 2022-10-20 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

The pound rose against the US dollar Thursday as Liz Truss resigned as UK prime minister. Truss' 45 days in office were marked by turmoil in financial markets over her government's mini-budget. Analysts said market volatility may lie ahead as the UK looks for its new prime minister. Pound sterling rose as much as 1.1% to $1.1337 before paring the rise to 0.8%. To investors, the UK looks ungovernable, and its economy resembles that of an emerging market, not a G7 nation," he wrote.

☆ Dollar gains with Treasury yields, sterling tumbles on hot inflation
▼ + stars: | 2022-10-19 | by ( Karen Brettell | ) www.reuters.com time to read: +4 min

British Pound Sterling and U.S. Dollar notes are seen in this June 22, 2017 illustration photo. Benchmark 10-year Treasury yields resumed their march higher as investors maintained expectations that the Federal Reserve will continue to aggressively raise rates to bring down soaring inflation, boosting demand for the U.S. currency. Register now for FREE unlimited access to Reuters.com RegisterThe U.S. central bank is expected to lift rates by another 75 basis points when it meets on November 1-2, with an additional 50 basis points or 75 basis points increase also likely in December. Japanese Finance Minister Shunichi Suzuki said on Wednesday that he was checking currency rates "meticulously" and with more frequency, local media reported. The BOJ remains an outlier among a global wave of central banks tightening monetary policy to combat soaring inflation, as it focuses on underpinning a fragile economy.

British Pound Sterling and U.S. Dollar notes are seen in this June 22, 2017 illustration photo. The U.S. dollar held at a 32-year peak against the yen and rose from a two-week trough against a basket of major peers, underpinned by expectations of aggressive U.S. Federal Reserve interest rate hikes. “Sterling edged lower against its peers after yet another upside surprise in the latest UK inflation data... “Following the budget fiasco, there is also a great deal of uncertainty as to the pace of upcoming Bank of England interest rate hikes," he added. read moreElsewhere, the dollar pushed as high as 149.48 yen for the first time since August 1990 in early London trading.

☆ Britain's failed tax experiment will leave economic scars and credibility issues, analysts say
▼ + stars: | 2022-10-18 | by ( Jenni Reid | ) www.cnbc.com time to read: +6 min

U.K. Prime Minister Liz Truss faces increasing pressure to resign. The yield on these bonds, which reflect the cost of borrowing for the government and influence interest rates on many products such as mortgages, eased lower after the statement Monday. The yield on 10-year bonds, the closely-watched benchmark seen as the indicator of long-term interest rates, remains significantly elevated at 4.045%, up from 3.49% before the budget. Bonds tend to become less attractive when interest rates rise, decreasing their price and sending up the yield. watch nowWider effectsWith the ideologically-driven policy platform Truss ran on now dead in the water, there is uncertainty in many other areas.

☆ Dollar dips as UK budget U-turn improves market sentiment
▼ + stars: | 2022-10-17 | by ( Karen Brettell | ) www.reuters.com time to read: +2 min

British Pound Sterling and U.S. Dollar notes are seen in this June 22, 2017 illustration photo. Register now for FREE unlimited access to Reuters.com RegisterBritish gilts rallied sharply after the news, helping to also send U.S. Treasury yields lower. Hunt replaced Kwasi Kwarteng, whose package of unfunded tax cuts on Sept. 23 unleashed a bond market sell-off. "For now, the market seems happy to give the new chancellor time and space to put the government's house back in order," said Chris Beauchamp, chief market analyst at IG. Traders are also on watch for any intervention from the Bank of Japan after the yen fell to a 32-year low.

☆ The UK's recent market turmoil wasn't caused by the mini-budget, and the chaos was a result of interest rate 'differentials', Britain's business secretary says
▼ + stars: | 2022-10-12 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

The turbulence in UK financial markets stems from the gap between UK and US interest rates, acob Rees-Mogg said Wednesday. The turbulence is "primarily caused by interest-rate differentials rather than by the fiscal announcement," he said. The fed funds rate in the US stands at 3%-3.25% and the UK's Bank Rate stands at 2.25%. "What has caused the effect in pension funds, because of some quite high-risk but low-probability investment strategies, is not necessarily the mini-budget. That decision was released after the Federal Reserve raised interest rates by a hefty 75 basis points, marking the third consecutive increase of that size, as it also battles inflation that's around a four-decade high.

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