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☆ European Central Bank hikes rates by a quarter-percentage point
▼ + stars: | 2023-05-04 | by ( Hanna Ziady | ) edition.cnn.com time to read: +2 min

London CNN —The European Central Bank raised interest rates by a quarter of a percentage point Thursday, the smallest increase since it started hiking in July after data this week showed core inflation cooling and banks pulling back sharply on lending. The ECB targets an inflation rate of 2%. “From a historical perspective, the pace of net tightening in credit standards remained at the highest level since the euro area sovereign debt crisis in 2011,” the central bank said. The Fed also pointed to tougher bank lending standards Wednesday, as it raised its benchmark federal funds rate to a level of 5%-5.25%. A key Fed survey of bank lending activity in the first quarter will be published next week.

☆ Volkswagen’s EV sales surge 42% despite slump in China
▼ + stars: | 2023-05-04 | by ( Hanna Ziady | ) edition.cnn.com time to read: +3 min

London CNN —Volkswagen says it won’t cut prices to hold onto market share in China, where sales of its electric vehicles plunged in the first quarter amid intensifying competition. Europe’s largest carmaker said Thursday that it delivered 141,000 electric vehicles in the first quarter — a 42% increase on the same period last year and accounting for 7% of total deliveries. The automaker’s earnings were helped by a recovery in sales volumes in Europe and North America, which offset a decline in China. Volkswagen’s first-quarter revenue climbed 22% on the previous year to €76 billion ($84 billion). Operating profit declined to €5.7 billion ($6.3 billion), from €8.3 billion ($9.2 billion) in the prior period, as a result of the effects of commodity hedging.

☆ What King Charles' coronation means for the UK economy
▼ + stars: | 2023-05-03 | by ( Hanna Ziady | ) edition.cnn.com time to read: +8 min

But the UK economy as a whole could suffer as workers take an extra day’s holiday. John Lewis' Coronation Lewis Bear. John Lewis & PartnersDepartment store John Lewis has had to limit in-store purchases of its Coronation Lewis Bear to two per household, and the teddy is out of stock online. For the coronation, UK luxury brands “have procured unique merchandise at all levels of the economy and we’re seeing people buying it, particularly Americans and EU customers,” she added. (The coronation holiday will be the third holiday Monday this month.)

☆ BP shares slide as first-quarter profit dips
▼ + stars: | 2023-05-02 | by ( Hanna Ziady | ) edition.cnn.com time to read: +2 min

London CNN —Shares of BP fell more than 5% Tuesday after the energy giant said it would return less cash to investors following a drop in first-quarter profit. BP (BP) reported underlying profit of $5 billion for the first three months of the year. BP (BP), Chevron (CVX), ExxonMobil, Shell and TotalEnergies (TOT) handed more than $100 billion to their investors in 2022 via share buybacks and dividend payments. Looking ahead, BP said it expects oil prices to “remain elevated,” following supply cuts by OPEC+ and strengthening demand from China. Gas prices in Europe and Asia would be supported by recovering Chinese demand, restocking of European storage capacity and coal-to-gas switching, it added.

The case for investing in India — a nation of 1.4 billion — is clear, and only bolstered by recent geopolitical shifts. As Western leaders look to boost economic cooperation with countries that share similar values, India, the world’s largest democracy, stands to gain. Arun Sankar/AFP/Getty ImagesIndia’s so-called “demographic dividend,” the potential economic growth arising from a large working-age population, represents a major opportunity. A recent Air India order for more than 200 Boeing planes could support more than 1 million American jobs. One consistent with our democratic values, and another not.”‘Economic miracle?’Beyond geopolitics, India’s economic and demographic fundamentals are driving business interest.

☆ Barclays and Deutsche profits defy banking jitters
▼ + stars: | 2023-04-27 | by ( Hanna Ziady | ) edition.cnn.com time to read: +3 min

Deutsche Bank (DB) gained 2.6%. Deutsche Bank’s shares plunged as much as 14.5% during the March 24 trading session. Deutsche Bank’s profit reached its highest in a decade, vindicating the once-struggling lender’s turnaround plan, launched in 2019. “In the first quarter, we again proved the strength and resilience of Deutsche Bank in challenging conditions,” chief financial officer James von Moltke said in a statement. Barclays and Deutsche Bank’s results contrast with the troubles at First Republic Bank in the United States.

☆ UK blocks Microsoft takeover of Activision Blizzard
▼ + stars: | 2023-04-26 | by ( Hanna Ziady | ) edition.cnn.com time to read: +3 min

London CNN —The UK antitrust regulator has blocked Microsoft’s $69 billion purchase of Activision Blizzard, thwarting one of the tech industry’s biggest deals over concerns it will stifle competition in cloud gaming. “The cloud allows UK gamers to avoid buying expensive gaming consoles and PCs and gives them much more flexibility and choice as to how they play. Allowing Microsoft to take such a strong position in the cloud gaming market just as it begins to grow rapidly would risk undermining the innovation that is crucial to the development of these opportunities,” it added. “Alongside Microsoft, we can and will contest this decision, and we’ve already begun the work to appeal to the UK Competition Appeals Tribunal,” Activision Blizzard CEO Bobby Kotick said in a statement. “Cloud gaming needs a free, competitive market to drive innovation and choice.”The UK cloud gaming market is expected to be worth up to £1 billion ($1.2 billion) by 2026, around 9% of the global market, according to the Competition and Markets Authority.

☆ Credit Suisse withdrawals topped $68 billion as the bank veered towards collapse
▼ + stars: | 2023-04-24 | by ( Hanna Ziady | ) edition.cnn.com time to read: +1 min

London CNN —Credit Suisse suffered outflows of 61.2 billion Swiss francs ($68.7 billion) in the first three months of the year and customers are still pulling their money from the bank as UBS races to complete a rescue of its stricken rival. “Credit Suisse experienced significant net asset outflows, in particular in the second half of March 2023. Credit Suisse’s first-quarter earnings could be its last after it was bought last month by UBS (UBS) in an emergency rescue deal orchestrated by the Swiss government. Credit Suisse (CS) reported a 1.3 billion franc ($1.3 billion) loss for the first quarter, extending a losing streak that began in 2021. The bank posted a loss of 7.3 billion Swiss francs ($7.9 billion) in 2022, its biggest annual loss since the financial crisis in 2008.

☆ UK inflation stays at 10% as bread rises at record clip. Here’s why it’s proving hard to beat
▼ + stars: | 2023-04-19 | by ( Hanna Ziady | ) edition.cnn.com time to read: +5 min

London CNN —UK inflation remained above 10% in March, far higher than in the United States and Europe, as bread prices rose at a record pace. Energy an ‘Achilles’ heel’The United Kingdom is a net importer of energy, unlike the United States. UK inflation to fall sharplyThe good news is that UK inflation is expected to fall rapidly through the remainder of the year, as lower wholesale gas prices feed through to household energy bills. From April, “UK inflation might start to drop faster than in Europe,” he said. But core inflation could take longer to fall in the United Kingdom, according to Gregory of Capital Economics.

☆ HSBC: Top shareholder Ping An calls for breakup, expressing 'deep concern'
▼ + stars: | 2023-04-18 | by ( Hanna Ziady | ) edition.cnn.com time to read: +3 min

Europe’s biggest bank is facing growing calls to spin off its Asia business. Alongside chairman Mark Tucker, he defended HSBC (HBCYF)’s strategy and said splitting the bank would not be in shareholders’ interests. “Despite sharing multiple suggestions with HSBC, we have been extremely disappointed by HSBC management’s consistent closed-minded attitude to all solutions,” Huang wrote. HSBC Asia “will be the most valuable and unique bank in Asia with the strongest growth potential within the HSBC system, and also the only local bank with global competitiveness,” he added. HSBC will hold its annual shareholder meeting on May 5.

☆ Angry Birds creator Rovio: Sega makes takeover bid
▼ + stars: | 2023-04-17 | by ( Hanna Ziady | ) edition.cnn.com time to read: +2 min

London CNN —Japan’s Sega, the company behind Sonic the Hedgehog, is buying Rovio Entertainment in a cash deal that values the creator of Angry Birds at €706 million ($774 million). The company’s prime asset, Angry Birds, which launched in 2009, became the first mobile game series to reach 1 billion downloads, according to Guinness World Records. People tour an Angry Birds theme park at its opening on July 9, 2016 in Tianjin, China. Feature China/Future Publishing/Getty ImagesThe story-based puzzle video game has players launching “Angry Birds” from a slingshot at a fortress containing pigs who stole their eggs. The company’s share price closed 4.2% down in Tokyo on Monday.

Paris/London CNN —Demonstrators forced their way into the building that houses BlackRock’s office in Paris Thursday, taking their protest against the government’s pension reforms to the world’s biggest money manager. Videos shared on social media showed protesters entering the Centorial office block, located near the Opéra Garnier opera house, holding red flares and firing smoke bombs. BlackRock’s office is located on the third floor. Workers invade the Centorial building that houses BlackRock's office in Paris on April 6, 2023. BlackRock, the world’s largest asset manager, has played no part in the pension reforms.

☆ Premarket stocks: These are the only stocks that matter right now
▼ + stars: | 2023-04-05 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Leading the way in growth are tech stocks like Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Tesla (TSLA) and Meta (FB). That’s been a boon to large cap tech stocks that are more sensitive to interest rates because they tend to borrow more than established companies and rely more on the prospect of future earnings. But it also means that the current market rally is thin, as the major indexes outperform the average stock. Strong outperformance from the largest stocks often power indexes to rise, said Liz Ann Sonders, chief investment strategist at Schwab, in a note Tuesday. But healthy markets should be characterized by greater participation of the “soldiers” — the rest of the stocks, she said.

☆ Amazon, Microsoft could face UK antitrust probe over cloud services
▼ + stars: | 2023-04-05 | by ( Hanna Ziady | ) edition.cnn.com time to read: +3 min

London CNN —Britain’s media and communications regulator Ofcom says it has “significant concerns” that Amazon and Microsoft could be harming competition in the market for cloud services. In a statement Wednesday, Ofcom said it was “proposing to refer” the cloud services market to the Competition and Markets Authority, the UK antitrust regulator, for further investigation. Cloud services are delivered to businesses and consumers over the internet and include applications such as Gmail and Dropbox. According to Ofcom, Amazon (AMZN) Web Services and Microsoft’s Azure have a combined UK market share of 60%-70% in cloud services. “We remain committed to ensuring the UK cloud industry stays highly competitive,” the spokesperson added.

☆ Premarket stocks: What the OPEC cuts mean for Putin and Russia
▼ + stars: | 2023-04-04 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

OPEC+ was formed in 2016 to coordinate and regulate oil production and stabilize global oil prices. What it means for Putin: OPEC+’s decision to cut oil production could have big implications for Russia. After Russia invaded Ukraine last year, the United States and United Kingdom immediately stopped purchasing oil from the country. Higher-priced oil could help Russia pay for its war on Ukraine and also boosts revenue in Saudi Arabia. Current regulations, Dimon argued, could actually lull banks into complacency without actually addressing real system-wide banking issues.

☆ Credit Suisse braces for stormy shareholder meeting
▼ + stars: | 2023-04-04 | by ( Hanna Ziady | ) edition.cnn.com time to read: +3 min

London CNN —Credit Suisse is set for a turbulent annual shareholder meeting Tuesday, after its emergency rescue by UBS two weeks ago left investors nursing heavy losses. Credit Suisse (CS) shareholders are expected to vent their anger over the forced takeover of the ailing Swiss lender by its larger rival. Norges Bank Investment Management, a top 10 shareholder in Credit Suisse, said it would vote against the re-election of Credit Suisse chairman Axel Lehmann and six other directors. Last week Credit Suisse withdrew two proposals up for a shareholder vote from its AGM agenda, saying they were no longer necessary following the planned merger with UBS. He is seen as a safe pair of hands capable of integrating Credit Suisse and salvaging core parts of its business.

☆ Cineworld shares tank after Regal Cinemas owner ditches plans to sell US and UK businesses
▼ + stars: | 2023-04-03 | by ( Hanna Ziady | ) edition.cnn.com time to read: +2 min

London CNN —Shares in Cineworld plunged more than 30% Monday, hitting their lowest level since late August, after the owner of Regal Cinemas said it planned to terminate efforts to sell its US, UK and Irish businesses. The world’s second-largest movie theater chain also announced a debt restructuring plan with lenders to help it exit bankruptcy. Cineworld — which, like many cinema operators, was hit hard by the pandemic — filed for Chapter 11 bankruptcy protection in September. In addition to the United States, the United Kingdom and Ireland, Cineworld operates cinemas in Poland, the Czech Republic, Slovakia, Hungary, Bulgaria, Romania and Israel. After two rounds of closures in the United States, around 500 Cineworld theaters remain across the country.

Hong Kong/Atlanta/London CNN —Oil prices spiked Monday after OPEC+ producers unexpectedly announced that they would cut output. Brent crude, the global benchmark, jumped 5.31% to $84.13 a barrel, while WTI, the US benchmark, rose 5.48% to $79.83. With oil prices now rising, inflation could remain higher for longer, adding pressure to a hot-button issue for consumers around the world. Saudi Arabia now says it will cut oil production by another half a million barrels a day. “We’re focused on prices for American consumers, not barrels.”In October, OPEC+’s decision to cut production had already rankled the White House.

The CPTPP is a free trade agreement with 11 members: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam. The UK agreement comes almost two years after it began talks to join the pact. The UK Office for Budget Responsibility, which produces economic forecasts for the government, expects Brexit to reduce Britain’s output by 4% over 15 years compared with remaining in the bloc. Becoming a CPTPP member means that more than 99% of UK exports to the 11 other countries will now be eligible for tariff-free trade. Services made up a huge chunk — 43% — of overall UK trade with CPTPP members last year, according to Sunak’s office.

“I have argued for years that the biggest banks in the world are still too big to fail. In practice, however, the economic damage would be considerable.”Keller-Sutter was at the center of a government-orchestrated rescue of Credit Suisse by its larger rival UBS (UBS) earlier this month. Global standards for dealing with teetering “too big to fail” banks were key a part of the package of rules introduced after the global financial crisis. They were designed to make it possible to wind down a big bank without destabilizing the financial system or exposing taxpayers to the risk of losses. The rest is lent out at higher interest rates or invested, because that’s how big banks make most of their profit.

“I have argued for years that the biggest banks in the world are still too big to fail. In practice, however, the economic damage would be considerable.”Keller-Sutter was at the center of a government-orchestrated rescue of Credit Suisse by its larger rival UBS (UBS) earlier this month. They were designed to make it possible to wind down a big bank without destabilizing the financial system or exposing taxpayers to the risk of losses. Although some investors in Credit Suisse bonds lost everything, Swiss taxpayers are still on the hook for up to 9 billion Swiss francs ($9.8 billion) of potential losses arising from certain Credit Suisse assets. The rest is lent out at higher interest rates or invested, because that’s how big banks make most of their profit.

☆ Putin: Sanctions could hurt Russia's economy
▼ + stars: | 2023-03-30 | by ( Hanna Ziady | ) edition.cnn.com time to read: +3 min

London CNN —President Vladimir Putin has conceded that Western sanctions designed to starve the Kremlin of funds for its invasion of Ukraine could deal a blow to Russia’s economy. “The illegitimate restrictions imposed on the Russian economy may indeed have a negative impact on it in the medium term,” Putin said in televised remarks Wednesday reported by state news agency TASS. It is a rare admission by the Russian leader, who has repeatedly insisted that Russia’s economy remains resilient and that sanctions have hurt Western countries by driving up inflation and energy prices. Putin said Russia’s economy had been growing since July, thanks in part to stronger ties with “countries of the East and South,” likely referring to China and some African countries. Russia’s economy has showed surprising resilience to unprecedented sanctions imposed by the West, including an EU ban on most imports of oil products.

☆ Andrew Bailey says Bank of England on high alert as investors 'test' banks
▼ + stars: | 2023-03-28 | by ( Hanna Ziady | ) edition.cnn.com time to read: +3 min

On Monday, European bank shares rose, boosted by news that First Citizens Bank in the United States would buy most of the assets of Silicon Valley Bank, which collapsed earlier this month. “I think there are moves in markets to, if you like, test out firms,” Bailey told a UK parliamentary committee Tuesday. José Manuel Campa, the head of the European Banking Authority, told Germany’s Handelsblatt Monday that European lenders remained vulnerable. The Swiss heavyweight was rescued by UBS, while SVB UK was bought by HSBC (HBCYF) for £1 after its US parent was shut by regulators. Despite being well-capitalized, SVB UK would not have survived the demise of its US parent, according to Bailey.

☆ Johnnie Walker maker Diageo appoints Debra Crew CEO
▼ + stars: | 2023-03-28 | by ( Hanna Ziady | ) edition.cnn.com time to read: +2 min

London CNN —One of the world’s largest alcoholic drinks companies has appointed its first female CEO. Diageo, which makes Guinness beer and Johnnie Walker whisky, said Tuesday that chief operating officer Debra Crew would succeed Ivan Menezes, who will retire from the company after 10 years at the helm. Diageo is the seventh-largest member of the FTSE 100 (UKX) index and will now become the largest UK-listed company led by a woman. There are just nine other FTSE 100 (UKX) companies led by women, including pharmaceutical company GlaxoSmithKline (GLAXF) and bank NatWest. Diageo is the world’s fourth biggest alcoholic drinks company by market value, after AB InBev (BUD) and China’s Wuliangye Yibin and Kweichow Moutai.

☆ Saudi National Bank chair resigns after Credit Suisse comments
▼ + stars: | 2023-03-27 | by ( Hanna Ziady | ) edition.cnn.com time to read: +2 min

Ammar Al Khudairy had resigned “due to personal reasons” and would be replaced by CEO Saeed Mohammad Al Ghamdi, Saudi National Bank said in a statement Monday. During an interview with Bloomberg TV on March 15, Al Khudairy ruled out increasing the bank’s stake in Credit Suisse. That was in response to a question on whether Saudi National Bank was open to further equity injections into Credit Suisse if there was a call for additional funds. Saudi National Bank, which is 37%-owned by Saudi Arabia’s sovereign wealth fund, acquired a 9.9% stake in Credit Suisse in October for $1.5 billion, making it an anchor investor in the bank’s turnaround plan. Had the bank increased its shareholding in Credit Suisse beyond the 9.9% level, it would have been subjected to additional regulatory obligations.

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