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☆ Bank of England leaves interest rates at 15-year high, says policy to stay tight for 'extended period'
▼ + stars: | 2023-11-02 | by ( Elliot Smith | ) www.cnbc.com time to read: +3 min

LONDON — The Bank of England on Thursday left interest rates unchanged, but said monetary policy will likely need to stay tight for an "extended period of time." The Monetary Policy Committee voted 6-3 in favor of keeping the main Bank rate at 5.25%, with three members preferring another 25-basis point hike to 5.5%. "The MPC's latest projections indicate that monetary policy is likely to need to be restrictive for an extended period of time. Further tightening in monetary policy would be required if there were evidence of more persistent inflationary pressures," the MPC said in its Thursday statement. It added that monetary policy will need to be "sufficiently restrictive for sufficiently long" to return inflation to the 2% target sustainably.

Persons: Jeremy Hunt, Jerome Powell Organizations: Bank of England, LONDON, Bank, MPC, U.S . Federal Reserve, Federal, Treasury, Bank of Locations: British, Europe

☆ Credit Suisse intervention avoided 'financial crisis,' Swiss National Bank chairman says
▼ + stars: | 2023-11-01 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

Thomas Jordan, president of the Swiss National Bank (SNB), speaks during the bank's annual general meeting in Bern, Switzerland, on Friday, April 28, 2023. Swiss National Bank Chairman Thomas Jordan on Wednesday said the central bank's interventions during the fall of Credit Suisse were "crucial" to avoid a "financial crisis" worldwide. As part of this, SNB injected 168 billion Swiss francs ($185 billion) in emergency liquidity. This bought time for the central bank, alongside regulator FINMA and the Swiss authorities, to broker Credit Suisse's emergency sale to domestic rival UBS in March for a discounted price of just 3 billion Swiss francs. UBS in August announced that it had ended Credit Suisse's government and central bank protections after completion of the takeover, including an emergency liquidity assistance plus (ELA+) loan of 50 billion Swiss francs obtained from the SNB.

Persons: Thomas Jordan, SNB, Jordan Organizations: Swiss National Bank, Wednesday, Credit Suisse, Swiss, UBS, Reuters, August Locations: Bern, Switzerland

☆ Aston Martin shares plunge on volume target cut, lingering debt
▼ + stars: | 2023-11-01 | by ( Elliot Smith | ) www.cnbc.com time to read: +3 min

Company shares had plunged by as much as 20% in earlier trade. Aston Martin reported an adjusted operating loss of £48.4 million ($58.8 million) for the three months to the end of September and a net revenue of £362.1 million, below a company-compiled consensus of £370 million. "The DB12 production ramp up was temporarily affected as supplier readiness and integration of the new EE platform that supports the fully redeveloped infotainment system was delayed," Aston Martin said in its earnings report on Wednesday. Aston Martin Executive Chairman Lawrence Stroll said the launch of the DB12 has seen "extraordinary demand" and is bringing in new customers, with 55% of initial DB12 buyers new to the brand. "With the shares trading at a tenth of the level at which they listed in 2018, the optimistic comparisons Aston Martin made for itself with Italian rival Ferrari look as fanciful as they ever did."

Persons: Aston Martin, Lawrence, Aston, Russ Mould, AJ Bell, Aston Martin's, " Mould, Ferrari Organizations: Company, Aston, Aston Martin, Saudi Arabia's Public Investment Fund Locations: London

☆ Bank of England set to hold rates again, but markets see no cuts on the horizon
▼ + stars: | 2023-11-01 | by ( Elliot Smith | ) www.cnbc.com time to read: +5 min

People walk outside the Bank of England in the City of London financial district, in London, Britain, January 26, 2023. "U.K. economic activity appears to have slowed further, the housing market is weaker, consumer spending is falling, and inflationary pressure is showing further signs of dissipating. U.K. inflation came in at 6.7% in September , unchanged from the previous month and considerably higher than in other G7 economies. "The only way that we can rationalise this is if U.K. inflation remains stuck at 3% or higher forever, and/or the U.K. economy avoids a meaningful recession," he said. The European Central Bank last week held rates steady at their current record high of 4%, ending a run of 10 straight hikes.

Persons: Mike Riddell, BoE, Swati Dhingra, Riddell, Abbas Khan, Haskel, Mann, Dhingra, Catherine Mann, Allianz's Riddell Organizations: Bank of England, Allianz Global Investors, P, MPC, Bank, Monetary, LONDON, Barclays, U.S . Federal, Treasury, European Central Bank Locations: City, London, Britain, Israel

☆ Sam Altman warns AI could kill us all. But he still wants the world to use it
▼ + stars: | 2023-10-31 | by ( Samantha Kelly | ) edition.cnn.com time to read: +10 min

New York CNN —Sam Altman thinks the technology underpinning his company’s most famous product could bring about the end of human civilization. As many as 300 million full-time jobs around the world could eventually be automated in some way by generative AI, according to Goldman Sachs estimates. Challenges aheadWhen starting OpenAI, Altman told CNN in 2015 he wanted to steer the path of AI, rather than worrying about the potential harms and doing nothing. OpenAI CEO Sam Altman addresses a speech during a meeting at Station F in Paris on May 26. Sam embodies that for AI right now.”The world is counting on Altman to act in the best interest of humanity with a technology by his own admission could be a weapon of mass destruction.

Persons: Sam Altman, OpenAI’s ChatGPT, Altman, ChatGPT, Goldman Sachs, ”, Patrick Semansky, ‘ Kevin Bacon, Mairo, ” Altman, Kamala Harris, Joe Biden, OpenAI, Elon Musk, Kyunghyun Cho, JP Lee, Greg Brockman, SeongJoon Cho, Kevin Bacon, Aaron Levie, “ I’ve, he’s, ” Levie, Bern Elliot, “, Rowan Curan, Forrester, –, Biden, Joel Saget, Emily Bender, Margaret O’Mara, O’Mara, Gates, Jobs Organizations: New, New York CNN, World Economic, Privacy, Technology, Capitol, Silicon, White House, New York University, Softbank Ventures, Bloomberg, Getty, CNN, Gartner Research, Israeli Defense Force, University of Washington, Laboratory Locations: New York, Washington ,, Washington, Valley, Silicon, Silicon Valley, Milan, Italy, Softbank Ventures Asia, Seoul, South Korea, Big Sur, Paris, AFP, Manhattan

☆ Euro zone inflation drops to two-year low in October; economy shrinks in third quarter
▼ + stars: | 2023-10-31 | by ( Elliot Smith | ) www.cnbc.com time to read: +3 min

(Photo by Kirill KUDRYAVTSEV / AFP) (Photo by KIRILL KUDRYAVTSEV/AFP via Getty Images)Inflation across the euro zone dropped to a two-year low of 2.9% in October, according to preliminary data released Tuesday, down from 4.3% the previous month and below a consensus estimate of 3.1% from a Reuters poll of economists. The agency also revealed Tuesday that the euro zone economy contracted by 0.1% in the third quarter, according to flash estimates, below consensus estimates for GDP to be unchanged from the previous quarter. The ECB expects the euro zone economy to grow by just 0.7% this year, by 1% in 2024 and 1.5% in 2025. The euro zone has been grappling with high inflation for the past 18 months, with the consumer price index peaking at 10.6% in October 2022. The ECB needs to see wage inflation slowing and this could take a further six months," he added.

Persons: Kirill KUDRYAVTSEV, KIRILL KUDRYAVTSEV, Mathieu Savary, Mark Wall Organizations: Getty, European Union, Eurostat, ECB, European Central Bank, Council, BCA Research, Deutsche Bank Research Locations: Frankfurt, Germany, AFP, Europe's, Latvia, Belgium, Spain, Ireland, Austria, Israel, European

☆ Japan Inc is only winner in nixed chip deal
▼ + stars: | 2023-10-27 | by ( Anshuman Daga | ) www.reuters.com time to read: +3 min

But this failed tie-up does have a winner of sorts: Japan Inc.That’s precious little consolation for the others involved. Reuters Graphics Reuters GraphicsThe nixed deal also complicates Bain Capital’s exit strategy from Kioxia. Yet Western Digital was set to be the majority partner in the proposed deal. The Nikkei business daily also said that Kioxia and Western Digital were unable to agree on conditions with top Kioxia shareholder Bain Capital. The news sent Western Digital shares down 9%.

Persons: Elliot, Bain, Nobuo Hayasaka, –, Antony Currie, Thomas Shum Organizations: Reuters, Japan Inc, Western Digital, Elliot Investment Management, Reuters Graphics Reuters, Toshiba, SK Hynix, Western Digital’s, Development Bank of Japan, Sumitomo Mitsui Financial, –, Western, South Korea's SK Hynix, U.S, Nikkei, Bain Capital, Thomson Locations: HYDERABAD, India, Japan, Tokyo

[1/2] U.S. Supreme Court Associate Justice Clarence Thomas poses during a group portrait at the Supreme Court in Washington, U.S., October 7, 2022. Durbin said the "undisclosed, forgiven" loan demonstrates the need for a binding code of conduct for the court. The documents showed that Welters forgave the loan in 2008, according to the findings. The Senate Judiciary Committee in July approved a Democratic-backed bill that would mandate a binding ethics code for the justices. Thomas and Welters did not immediately respond to requests for comment.

Persons: Clarence Thomas, Evelyn Hockstein, Thomas, Anthony Welters, Dick Durbin, Durbin, Welters, Ron Wyden, Elliot Berke, Berke, Harlan Crow, Steven Lubet, Lubet, Stephen Gillers, Andrew Chung, John Kruzel, Will Dunham Organizations: U.S, Supreme, REUTERS, Rights, Welters, Democratic, hobnobbing, Senate, New York Times, Texas, Crow, Northwestern University, New York University, Thomson Locations: Washington , U.S, New York, Washington

☆ Economists fear major disruption if the Israel-Hamas conflict is not contained
▼ + stars: | 2023-10-25 | by ( Elliot Smith | ) www.cnbc.com time to read: +7 min

ReutersAny possible escalation of the Israel-Hamas war poses a major risk to the global economy, driving up energy prices and disrupting key trade routes, economists have warned. Israel's subsequent bombardment of Gaza in a bid to eliminate Hamas has increased the risk of a spillover to the wider Middle East region. The events in recent days have deepened the greatest fear among economists, that the conflict engulfs the region and begins to pose a long-term threat to global energy and trade infrastructure. Back then oil prices gained 30% in a matter of two weeks before settling at around 15% above pre-war levels," said J. Safra Sarasin Equity Strategist Wolf von Rotberg. "You choke off those points and you create major disruption not just to oil prices, but the whole supply chain of the world for energy and other goods as well."

Persons: Israel's, Isaac Herzog, Pat Thaker, Thaker, Brent, J . Safra Sarasin, J, Wolf von Rotberg, Elijah Oliveros, Rosen, Oliveros, Paul Gruenwald, Gruenwald Organizations: Hamas, Reuters, Palestinian, Lebanese, Hezbollah, Economist Intelligence Unit, CNBC, Fed, ECB, West Texas, J ., Safra Sarasin Equity Locations: Israel, Palestinian, Gaza, Lebanon, East, Africa, Saudi, Ukraine, Europe, Iran, Tehran, Saudi Arabia, Suez, Persian, Hormuz, U.S, Chile, Turkey, Thailand, Philippines, India, Egypt

☆ Injuries add to Newcastle woes in Dortmund loss
▼ + stars: | 2023-10-25 | by ( ) www.reuters.com time to read: +1 min

Defeat means Newcastle face a fight to progress from Group F although they are still well-placed with four points from three games, the same as Dortmund. But of even more concern to Howe were injuries to forwards Alexander Isak and Jacob Murphy. "Isak going off was a blow and Jacob came off with what looks like a serious injury," Howe said. Jacob looks serious, potentially a dislocation of his shoulder." Newcastle face Wolverhampton Wanderers away in the Premier League on Saturday.

Persons: Park, Newcastle United's Alexander Isak, Lee Smith, Newcastle United's, Eddie Howe's, Howe, Alexander Isak, Jacob Murphy, Sweden's Isak, Callum Wilson, Murphy, Isak, Jacob, We've, That's, Elliot Anderson, He's, Martyn Herman, Hugh Lawson Organizations: Soccer Football, Newcastle United, Borussia Dortmund, James, Newcastle, Champions League, Wolverhampton Wanderers, Premier League, Thomson Locations: Newcastle, Britain, NEWCASTLE, England, Dortmund

Third-quarter net profit was 1.031 billion euros ($1.06 billion), above an analyst consensus of quarterly net profit attributable to shareholders of 997 million euros, according to LSEG data. The bank's third-quarter net profit was down 8% on the previous year and up 35% on the quarter, amid ongoing struggles in the lender's investment unit. It also said it had scope to release up to an additional 3 billion euros in capital and would increase and accelerate shareholder distributions. The provision for credit losses was 200 million euros, compared to 350 million in the same quarter of last year. Analysts at UBS said Deutsche Bank had delivered a "major improvement in capital" and "robust operational performance," flagging that pre-tax profit of 1.723 billion euros was 9% above consensus.

Persons: James von Moltke, CNBC's Silvia Amaro, von Moltke Organizations: Deutsche Bank, UBS Locations: London

☆ Barclays narrowly beats profit forecasts on strong consumer, credit card business
▼ + stars: | 2023-10-24 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

LONDON — Barclays on Tuesday reported a net profit of £1.27 billion ($1.56 billion) for the third quarter, slightly ahead of expectations as strong results in its consumer and credit card businesses compensated for weakening investment bank revenues. Venkatakrishnan said the bank "continued to manage credit well, remained disciplined on costs and maintained a strong capital position" against a "mixed market backdrop." Barclays' corporate and investment bank (CIB) saw income decrease by 6% to £3.1 billion, with the bank citing reduced client activity in global markets and investment banking fees. The bank did not announce any new returns of capital to shareholders after July's £750 million share buyback announcement. The cost-income ratio in the third quarter was 63%, but the bank has set a medium-term target of below 60%.

Persons: Venkatakrishnan Organizations: LONDON, Barclays, Reuters, C.S, Barclays U.K, Q423 Locations: London

☆ Treasury yields continue retreat after 10-year slips back below 5%
▼ + stars: | 2023-10-24 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

ET, the yield on the benchmark 10-year Treasury note was down around 2.4 basis points at 4.8145% while the yield on the 30-year Treasury bond slipped just over 3 basis points to 4.9559%. U.S. Treasury yields continued to moderate on Tuesday after slipping back below 5%, though they remained near 16-year highs. Yields fell after Pershing Square's Bill Ackman on Monday disclosed that he had covered his bond short position. Markets are all but certain that the Fed funds target range will remain unchanged next week, according to CME Group's FedWatch tool. Auctions will be held Tuesday for $75 billion of 42-day Treasury bills and $51 billion of 2-year notes.

Persons: Pershing, Bill Ackman, Ackman, Jim Reid, Reid, Jerome Powell, Powell Organizations: Treasury, Deutsche Bank, Treasurys, Federal Locations: London

☆ The Media, Like the Terrorists, Aim at Israel and Miss
▼ + stars: | 2023-10-23 | by ( Elliot Kaufman | ) www.wsj.com time to read: 1 min

Journal Editorial Report: Rifts emerge among the Republican presidential candidates. Image: Mohammed Saber/ShutterstockIt was a lie. Hamas said Tuesday that an Israeli airstrike on a Gaza City hospital killed at least 500 Palestinians. Turns out it wasn’t Israeli, it wasn’t an airstrike, it didn’t hit the hospital, nowhere close to 500 people were killed, and Hamas knew it. The evidence indicates that a rocket launched by Palestinian Islamic Jihad is the likely culprit.

Persons: Mohammed Saber, Biden Organizations: Republican, Pentagon, National Security, Palestinian Locations: Gaza

☆ 'The bond vigilante is coming back,' UBS strategist says
▼ + stars: | 2023-10-23 | by ( Elliot Smith | ) www.cnbc.com time to read: +3 min

Andrew Kelly | ReutersThe bond vigilantes are coming back as investors continue to sell amid the prospect of higher for longer interest rates and a growing fiscal deficit, according to Kevin Zhao, head of global sovereign and currency at UBS Asset Management. "The bond vigilante is coming back, so this is very important for asset prices in equity, house prices, fiscal policy, monetary policy, so no longer is this a free ride on bond markets anymore — so the government has to be very careful in terms of the future. "A few months ago, most people expected the U.S. government deficit would keep going down with growth slowing — it was 3.9% last year and it's actually going up with growth slowing — that is quite alarming for bond investors." The term "bond vigilantes" refers to bond market investors who protest against monetary or fiscal policy they fear is inflationary by selling bonds, thereby increasing yields. Fed fund futures pricing reflects a 98% probability that the central bank keeps its main interest rate unchanged at the current target range of 5.25-5.5% at its next monetary policy meeting.

Persons: Andrew Kelly, Kevin Zhao, Jerome Powell, Zhao, Liz Truss, it's Organizations: UBS Asset Management, Treasury, Federal, U.S, Treasury Department, U.S . Federal Reserve Locations: British, Treasurys

☆ Treasury yields rise again as 10-year hovers near 5%
▼ + stars: | 2023-10-23 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

ET, the yield on the benchmark 10-year Treasury note rose by around 5 basis points to 4.9758%, while the yield on the 30-year Treasury bond climbed around 4 basis points to 5.1286%. U.S. Treasury yields ticked higher on Monday, hovering just below multiyear highs as investors continue to assess the prospect of higher-for-longer interest rates. Fed fund futures pricing reflects a 98% probability that the central bank keeps its main interest rate unchanged at the current target range of 5.25-5.5% at its next monetary policy meeting. Wall Street is awaiting a big week of corporate earnings, with tech titans Alphabet, Amazon, Meta and Microsoft all set to report. Auctions will be held Monday for $75 billion of three-month Treasury bills and $68 billion of six-month bills.

Persons: Jerome Powell Organizations: Treasury, Federal, Meta, Microsoft

☆ Two Trump co-defendants plead guilty. What next?
▼ + stars: | 2023-10-21 | by ( Zachary B. Wolf | ) edition.cnn.com time to read: +7 min

Sidney Powell , a public face of Trump’s attempts to challenge the election results in 2020 and 2021, pleaded guilty Thursday. The former Trump attorney willavoid jail time but agreed to testify as a witness and pleaded guilty to six misdemeanors for conspiracy to commitintentional interference, downgraded from felony charges she had faced. He pleaded guilty Friday to a single felony, conspiracy to commit filingfalse documents. Trial dates have not been set, and Trump has pleaded not guilty. But guilty pleas, Williams said, are now evidence that crimes were committed as Trump tried to make Joe Biden’s 2020 victory disappear.

Persons: – unsolvably, Donald Trump’s, Georgia’s, Sidney Powell, He’s, Kenneth Chesebro, Scott Hall, Trump, Powell’s Chesebro, Rudy Giuliani, John Eastman, Elliot Williams, Fani Willis, Williams, Joe Biden’s, ” Williams, Jim Sciutto, CNN Max, “ Chesebro, ‘, Chesebro, Powell, CNN’s Marshall Cohen, Cohen, Jack Smith, Tanya Chutkan, “, Chutkan, Arthur Engoron, Engoron, ” Trump, Chris Christie, ” Christie, “ Donald Trump doesn’t, Christie, Oliver Darcy, CNN’s, “ It’s, ” Darcy Organizations: CNN, Trump, White, Republican, Former New Jersey Gov, NBC, Salem Radio Network, GOP, Trump Republicans Locations: Israel, Georgia, Coffee, New York, Washington, Florida, Fulton County, Washington ,, Clive , Iowa, Miami, Salem

☆ UK PM Rishi Sunak suffers two historic by-election defeats as Labour opposition surges
▼ + stars: | 2023-10-20 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

Labour party candidate Sarah Edwards, centre, after polls closed in the Tamworth by-election on October 20, 2023 in Tamworth, England. LONDON — U.K. Prime Minister Rishi Sunak's Conservative Party suffered two historic by-election defeats on Thursday, with the main opposition Labour Party overturning huge majorities to win both seats. Labour overcame a 24,664 majority to win Mid Bedfordshire for the first time since the constituency's inception in 1931 in a 20.5% swing. In the process, it pulled off the largest Conservative numerical majority overturned in the U.K. by the main opposition party since 1945. The opposition party took on what was a 66% Conservative majority at the 2019 General Election.

Persons: Sarah Edwards, Rishi, Keir Starmer, Greg Hands, Chris Pincher, Pincher, Boris Johnson, Nadine Dorries, Johnson's Organizations: Labour, LONDON, Conservative Party, Labour Party, Tamworth, Mid Bedfordshire, Conservative, Conservatives, BBC Locations: Tamworth, England, Mid Bedfordshire, West Midlands, Bedfordshire

☆ Turbine troubles have sent wind energy stocks tumbling — and a slew of issues remain
▼ + stars: | 2023-10-20 | by ( Elliot Smith | ) www.cnbc.com time to read: +6 min

A Siemens Gamesa blade factory on the banks of the River Humber in Hull, England on October 11, 2021. Siemens Energy made the headlines earlier this year when it scrapped its profit forecast and warned that costly failures at wind turbine subsidiary Siemens Gamesa could drag on for years. It sparked concerns about wider problems across the industry and thrust Europe's wind energy giants' earnings into the spotlight. Read more:Deutsche had previously highlighted challenges in the wind turbine industry including supplier delays, lower tax credits and rising rates. Reliability issues Those surveyed by ONYX also expressed reliability concerns, with 69% expecting more reliability issues due to aging assets and 56% seeing problems associated with new turbine technology.

Persons: PAUL ELLIS, Kepler Cheuvreux, Morgan Stanley, Morgan, Ben Uglow, Ørsted, Read, —, Ashley Crowther, Crowther Organizations: Siemens, AFP, Getty, Siemens Energy, Grid Technologies, Siemens Gamesa, Gas, Grid, Deutsche Bank, Deutsche, Vestas, ONYX Locations: Hull , England, Ukraine

☆ Biden makes case for 'urgent' military aid to Ukraine; North Korea's Kim says Russia agreements will be 'faithfully' fulfilled
▼ + stars: | 2023-10-20 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

U.S. President Joe Biden said he would be sending an "urgent" funding request to Congress on Friday for military aid to support both Ukraine and Israel in their respective war efforts. Biden late on Thursday made a rare White House speech in which he claimed both Hamas and Russia "want to annihilate a neighboring democracy," and vowed to send an "urgent" request to Congress for additional funding to both Ukraine and Israel to aid their respective military efforts. The White House said Tuesday that it had supplied Kyiv with long-range ATACMS (Army Tactical Missile Systems) missiles, and Ukrainian President Volodymyr Zelenskyy confirmed that his forces had used them in action. Meanwhile, North Korean leader Kim Jong Un has resolved to "faithfully implement" agreements made with Russian President Vladimir Putin at a summit last month, state media KCNA reported Friday. Lavrov's trip to Pyongyang comes hot on the heels of Putin's visit to China this week, during which the Russian president said Washington's decision to supply ATACMS missiles to Ukraine was "a mistake."

Persons: Joe Biden, Biden, Volodymyr Zelenskyy, Zelenskyy, Kim Jong Un, Vladimir Putin, KCNA, Kim, Sergei Lavrov, Washington's Organizations: Ukraine, Oval, White, Army Tactical Missile Systems, Biden, Russian, DPRK Locations: Israel, Gaza, Russia, Washington , U.S, Ukraine, Pyongyang, China

☆ Adidas shares climb after boost from Yeezy sales, guidance raise
▼ + stars: | 2023-10-18 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

Shoes are offered for sale at an Adidas store in Chicago, Feb. 10, 2023. Adidas on Tuesday hiked its full-year guidance and posted stronger-than-expected third-quarter earnings, aided by sales of its Yeezy inventory. Third-quarter operating profit came in at 409 million euros, down from 564 million for the same quarter in 2022. "While the company's performance in the quarter was again positively impacted by the sale of parts of its remaining Yeezy inventory, the underlying adidas business also developed better than expected," Adidas said in its earnings report. It has since been working to sell off its remaining inventory of his trademark Yeezy sneakers.

Persons: Ye Organizations: Adidas, adidas Locations: Chicago, Europe, €

☆ UK inflation holds steady for September after Bank of England pauses rate hikes
▼ + stars: | 2023-10-18 | by ( Elliot Smith | ) www.cnbc.com time to read: +3 min

LONDON — U.K. inflation came in at 6.7% in September, slightly ahead of expectations and unchanged from the previous month. For August, the U.K. consumer price index surprised with a dip to 6.7%, below expectations, which sparked the Bank of England to end a run of 14 straight interest rate hikes. The bank had been hiking rates consistently since December 2021 in a bid to rein in inflation, taking its main policy rate from 0.1% to a 15-year high of 5.25% in August. The market is pricing around a 77% chance that the Bank holds rates steady again at its next meeting on November 2nd. For now, the higher for longer interest rate narrative will continue to persist," he said Wednesday in an emailed note.

Persons: Jeremy Hunt, Marcus Brookes, Brookes, Hetal Mehta, BoE Organizations: LONDON, Reuters, National Statistics, Chancellor, Bank of, Bank, Quilter Investors, Bank of England's, Bank of England Locations: Canary, London, Bank of England, British, James's

☆ European stocks retreat as traders track earnings, inflation data
▼ + stars: | 2023-10-18 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

LONDON — European markets were slightly lower on Wednesday as traders monitored corporate earnings, developments in the Middle East , and key inflation data. The pan-European Stoxx 600 index slipped 0.4% in early trade, with tech stocks shedding 1.7% to lead losses while retail stocks added 0.4%. Shares in Asia-Pacific clawed back some lost ground throughout the trading session overnight, after fresh data showed stronger-than-expected economic growth out of China for the third quarter. Earnings season also gathers steam in Europe, with ASML , SAP, Volvo, Deutsche Boerse and ABB among those reporting Wednesday. Economic data will also be in focus, with inflation data from the U.K. and the euro zone released throughout the morning.

Persons: Morgan Stanley Organizations: Federal Reserve, Stock, Wall, Netflix, Tesla, ASML, SAP, Volvo, Deutsche Boerse, ABB Locations: Asia, China, Europe

☆ Top economists unanimous on 'higher for longer' rates as inflation threats linger
▼ + stars: | 2023-10-17 | by ( Elliot Smith | ) www.cnbc.com time to read: +5 min

Pedestrians walk past a billboard announcing the World Bank Group and International Monetary Fund annual meetings, on the side of the International Monetary Fund headquarters in Washington DC on October 5, 2023. Mandel Ngan | Afp | Getty ImagesTop economists and central bankers appear to be in agreement on one thing: interest rates will stay higher for longer, clouding the outlook for global markets. Despite the pause, Fed officials have signaled that rates may have to remain higher for longer than markets had initially expected if inflation is to sustainably return to the central bank's 2% target. The European Central Bank last month issued a 10th consecutive interest rate hike to take its main deposit facility to a record 4% despite signs of a weakening euro zone economy. "We may have more shocks that may drive inflation up, and that's why of course we have to remain very cautious about inflation developments."

Persons: Mandel Ngan, Ajay Banga, Greg Guyett, Guyett, Boris Vujčić, Vujčić, Mārtiņš Kazāks, CNBC's Joumanna Bercetche, Silvia Amaro, Austrian National Bank Governor Robert Holzmann Organizations: World Bank Group, International Monetary Fund, Washington DC, Afp, Getty, U.S . Federal Reserve, World Bank, IMF, Bank, Labor Department, U.S ., HSBC, CNBC, European Central Bank, Council, Croatian National Bank, U.S, Bank of Latvia, ECB, Governing Council, Austrian National Bank Governor Locations: Washington, Central, U.S, Marrakech, Morocco, ECB's, Europe, Marrakech ., Israel

☆ European markets flat with earnings and the Middle East in focus
▼ + stars: | 2023-10-17 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

LONDON — European markets were muted on Tuesday, with corporate earnings season getting underway as investors continue to assess the turmoil in the Middle East. The European blue chip index closed Monday's session 0.2% higher, but futures point to marginal declines at Tuesday's open. U.S. stock futures were slightly lower in early premarket trade as third-quarter earnings season gathers momentum. Ericsson, Rio Tinto and Publicis are among the major European companies set to announce quarterly results on Tuesday, before Wall Street titans Bank of America and Goldman Sachs report ahead of the market open stateside. The ZEW economic sentiment index for the euro zone is due at 10 a.m. London time on Tuesday.

Persons: Goldman Sachs, Joe Biden, Antony Blinken Organizations: Ericsson, Rio Tinto, Wall Street titans Bank of America, Investors, Israel Locations: Asia, Pacific, Gaza . U.S, U.S, London

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