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European Central Bank (ECB) president Christine Lagarde attends a press conference following the Governing Council's monetary policy meeting, in Frankfurt, Germany July 18, 2024. Jana Rodenbusch | ReutersThe European Central Bank left interest rates unchanged on Thursday, after implementing a cut in June. "Monetary policy is keeping financing conditions restrictive. The decision — which keeps the key interest rate at 3.75% — was widely expected amid ongoing concern over inflationary pressures, particularly from the labor market. Analysts expected the central bank to wait for more data across payrolls, economic growth and productivity before easing monetary policy further.
Persons: Christine Lagarde, Jana Rodenbusch, , Lagarde Organizations: European Central Bank, Reuters, ECB, U.S . Locations: Frankfurt, Germany,
LONDON — The British pound on Wednesday broke above the $1.30 level against the U.S. dollar for the first time in a year, as investors bank on a coming period of growth-friendly policies and political stability under the newly elected Labour government. Sterling was 0.5% higher against the U.S. dollar at $1.303 at 1:04 p.m. in London (8:04 a.m. U.K. inflation came in at the Bank of England's 2% target for a second straight month, figures published earlier Wednesday showed. However, the inflation print slightly reduced market bets on an August rate cut from the central bank due to the stickiness of the key services print. The U.K. currency has also been supported by the recent landslide parliamentary victory for the Labour Party, according to analysts.
Persons: Sterling, Joe Tuckey Organizations: U.S, Labour, Bank of England's, Labour Party Locations: London
Stock price information reflected on a window at the Euronext NV stock exchange in Paris, France, on Monday, March 13, 2023. LONDON — European stocks closed lower Wednesday, continuing negative sentiment seen in the previous two trading sessions as technology stocks plummeted. The regional Stoxx 600 index provisionally closed 0.43% lower, with most major bourses in the region falling and sectors trading mixed. European tech stocks plunged 4.4%, mirroring a sell-off seen across the Atlantic, where the Nasdaq Composite retreated 2% in early deals. U.S. stocks were broadly lower as investors continued to rotate out of megacap tech stocks into the broader market.
Organizations: LONDON, Nasdaq Locations: Paris, France, U.S
King Charles III, wearing the Imperial State Crown and the Robe of State reads the King's Speech from the The Sovereign's Throne next to Queen Camilla, wearing the George IV State Diadem in the House of Lords chamber, in the Houses of Parliament on July 17, 2024 in London, England. LONDON — The U.K.'s new Labour government on Wednesday outlined a raft of proposed legislation, including the nationalization of rail operators and the creation of a publicly-owned clean power company. In a speech delivered by King Charles III on behalf of the administration, the government said it is "committed to a clean energy transition that will lower bills for consumers over time," adding that it would establish Great British Energy, headquartered in Scotland, to help accelerate investment in renewable energy such as offshore wind. The speech listed a broad range of proposals, many of which have already been announced. A pledge of economic growth was yet again front and center in the speech, described in the opening lines as a "fundamental mission" which would help the country move on from the cost of living crisis.
Persons: King Charles III, Queen Camilla, George IV, Charles Organizations: Imperial State Crown, George, Labour, British Energy, Microsoft Locations: State, London, England, Scotland
LONDON — While the European men's soccer championship ended in gloom yet again for England, the tournament boosted the nation's grocery store and hospitality spending — with no and low-alcohol sales seeing a particular boom. Take-home grocery sales increased 2.2% across the four weeks to July 7, with beer sales up by an average 13% on England match days, market research firm Kantar said in research released Tuesday. No and low-alcohol beer sales meanwhile spiked 38%, Kantar said, attributing this to the fact that many England matches were held on weeknights. It is the latest sign of strength in the no and low-alcohol beer market, which has grown rapidly in recent years with offerings from both the brewing juggernauts and incumbents such as Lucky Saint, which is served in cans and on tap in thousands of U.K. pubs and bars. Research firm IWSR forecasts the U.K.'s total beverage alcohol market will see a 1% decline across volume and value over the next five years, as no and low-alcohol grows 19%.
Persons: Kantar, Saint, IWSR Organizations: Euro Locations: England, Spain, London, United Kingdom
LONDON — The International Monetary Fund on Tuesday lifted its 2024 growth outlook for the U.K. to 0.7% from 0.5%, providing a further boost to the country's new government. Looking ahead, the Washington, D.C.-based IMF reiterated its forecast for 1.5% U.K. growth in 2025 in the July update of its World Economic Outlook. Investment bank Goldman Sachs earlier this month nudged its 2025 forecast for the U.K. economy 0.1 percentage point higher, to 1.6%. Other economies given a 2024 growth upgrade by the IMF on Tuesday included the euro zone, which it lifted by 0.1 percentage point to 0.9%, Spain, up 0.5 percentage point to 2.4%, and China, up 0.4 percentage point to 5%. It lowered its forecast for the U.S. economy by 0.1 percentage point to 2.6%.
Persons: Taylor, Goldman Sachs, Keir Starmer, Goldman, — CNBC's Sophie Kiderlin, Vicky McKeever Organizations: Nine, Monetary Fund, D.C, Investment, Labour, European Union . Deutsche Bank, Friday, Deutsche Bank, Jefferies, Bank of England, Reuters, IMF Locations: Ruskin Park, London, England, Washington, brightening, Spain, China, U.S, Asia
Bitcoin hit a two-week high Monday, as betting markets suggested an increased chance of victory for crypto-friendly candidate Donald Trump in the U.S. presidential election. The value of the world's biggest cryptocurrency, bitcoin, was up around 5% at 1:40 p.m. London time, to $62,781.48, according to CoinGecko. The rally follows the dramatic failed assassination attempt on former President Trump on Saturday. Investors said over the weekend they expected so-called "Trump victory trades" to receive a boost. The Trump campaign began accepting donations from the crypto industry in May and his messaging has become increasingly positive on the future of such digital assets.
Persons: Bitcoin, Donald Trump, Trump, Reagan, Ben Emons, Trump's favorability, Zach Pandl, Sen, Elizabeth Warren Organizations: U.S, FedWatch Advisors, Investors, Trump, CNBC, Republican Locations: London
Jerome Powell, chairman of the US Federal Reserve, during a Senate Banking, Housing, and Urban Affairs Committee hearing in Washington, DC, US, on Tuesday, July 9, 2024. Markets now firmly expect a September interest rate cut in the U.S., but the Federal Reserve has a strong reason to hold off, according to economist Carl Weinberg. Money market pricing for a rate cut at the Fed's fall meeting rose from around 70% to more than 90% on Thursday, according to LSEG data, after a softer-than-expected consumer price index print. Fed Chair Jerome Powell had already bolstered expectations of such a move when he said earlier this week that there were risks in keeping interest rates too high for too long — comments interpreted as "modestly dovish" by analysts. However, there are also risks to easing monetary policy that cast a cloud over the rate cut outlook, Weinberg, chief economist at High Frequency Economics, told CNBC's "Squawk Box Europe" on Friday.
Persons: Jerome Powell, Carl Weinberg, Weinberg, CNBC's Organizations: US Federal Reserve, Banking, Housing, Urban Affairs Committee, Federal Reserve Locations: Washington , DC, U.S
Skyscrapers in the La Defense business and financial district in Paris, France, on Monday, June 3, 2024. LONDON — European stocks are set to nudge higher at Friday's open, defying a broader global selloff, with fresh inflation data set to land. Reaction to the historic French and U.K. elections dominated the start of the week, but attention has moved to a flurry of inflation data. On Thursday, the U.S. consumer price index declined more than expected to 3% annually, down from 3.3% in May. The data will be followed up by the U.S. producer price index Friday, while German, French and Italian inflation readings will also be released.
Persons: Germany's DAX, Jerome Powell Organizations: La Defense, LONDON, MIB, CAC, Federal Locations: Paris, France, U.S
The City of London is a city, ceremonial county and local government district that contains the primary central business district CBD of London. The City of London is widely referred to simply as the City is also colloquially known as the Square Mile. LONDON — The U.K. economy grew by 0.4% in May, flash figures published by the Office for National Statistics showed on Thursday, with the British pound jumping to a four-month high against the U.S. dollar after the announcement. The British economy exited a shallow recession in the first quarter of the year, then flatlined in April. Goldman Sachs last week upgraded its growth forecast for the U.K. following left-of-center Labour's thumping victory in the country's general election.
Persons: Sterling, Keir Starmer, Goldman Sachs, Ashley Webb, Price, BOE Organizations: Office, National Statistics, U.S, Gross, Labour Party, Capital, Bank of England's, Bank of England, European Central Bank Locations: London, United Kingdom, The City, British, U.K
Engineers from a Thames Water leak hunting team unloads equipment from their van during a night shift in London, UK, on Wednesday, May 2, 2023. The chief executive of Britain's biggest water supplier stepped down with immediate effect on Tuesday. Regulator Ofwat said Thames Water would come under heightened scrutiny and must re-evaluate its plans to improve operational performance, delivery and financial resilience. Ofwat approved £16.9 billion ($21.8 billion) in spending for the company to invest in improving services for customers and the environment — a sum below the £19.8 billion that Thames Water had requested. In spring this year, shareholders rejected its bid for a £500 million equity injection, while its parent company Kemble defaulted.
Persons: Ofwat, Kemble Organizations: Engineers, LONDON, Thames Water, Home Counties Locations: London, England, Thames, Home
LONDON — The number of global millionaires is set to keep rising over the next five years — with the U.K. a stark outlier, according to the 2024 Global Wealth Report from UBS. Gains will be led by tech powerhouse Taiwan, where the number of millionaires is set to jump 47% on the back of the booming microchip industry and a rise in immigration by wealthy foreigners. The two hubs in which the most global millionaires are based, the U.S. and mainland China, are set to see their figures rise 16% and 8% respectively. Another country where the number of dollar millionaires is forecast to decline was the Netherlands, which is estimated to see a 4% drop in such wealthy individuals. The report meanwhile sees the number of U.S. dollar millionaires in Russia growing by 21%.
Persons: Paul Donovan, Donovan Organizations: UBS, Taiwan, UBS Global Wealth Management, Russia, Labour Party, Conservative Locations: Turkey, Kazakhstan, Indonesia, Japan, U.S, China, France, Italy, London, Dubai, Singapore, Netherlands, Russia
watch nowFrench borrowing costs still face a "blowout" over those of Germany, as political and economic reality sets in following the country's parliamentary election, according to veteran investor David Roche. Bond yields move inversely to prices and represent the change in borrowing costs for a government — also indicating long-term investor confidence in the economy. Now, my view is that it will happen," Roche told CNBC's "Squawk Box Europe" on Tuesday. watch nowAlong with economic growth prospects, a key watch-point for investors is France's hefty budget deficit and high debt-to-GDP ratio of 110%. There are about seven major pillars, they suddenly will go absolutely nowhere, which is disastrous for Europe," Roche told CNBC.
Persons: David Roche, Jean, Claude Trichet, , Emmanuel Macron, Roche, CNBC's, shorting, Macron, " Roche Organizations: European Central Bank, CNBC, Quantum, French National Assembly, European Commission, National Locations: Germany, France, Europe, Italy, Ukraine
One of the biggest surprises of Britain's election night so far has been the gains seen by the right-wing Reform UK party, which is forecast to win numerous parliamentary seats and has logged a strong showing in early results. Early results also pointed toward strong gains. Six constituencies had been called as of 1 a.m. London time, with Reform in second place with 23.8% of the vote. In a video posted on X titled: "The revolt against the establishment is underway," Farage said the gains his party has seen so far are "almost unbelievable." It means we're going to win seats, many, many seats," he said.
Persons: Brexiteer Nigel Farage, Farage Organizations: Reform Locations: London
Keir Starmer, leader of the Labour Party, campaigns ahead of the general election, in Redditch, UK, on Wednesday, July 3, 2024. Bloomberg | Bloomberg | Getty ImagesLONDON — The U.K. heads to the ballot box on Thursday, as the incumbent Conservative Party seeks to defy months of polls that suggest it will suffer a historic defeat at the hands of the center-left Labour Party. Prime Minister Rishi Sunak announced the vote six weeks ago, taking politicians and the public alike by surprise. The Thursday ballot is the first U.K. general election since 2019, when then-Conservative leader Boris Johnson clinched the party's biggest majority win since 1987 over Jeremy Corbyn's Labour. Rishi Sunak, UK prime minister, campaigns at a Conservative Party general election campaign event at the National Army Museum in London, UK, on Tuesday, July 2, 2024.
Persons: Keir Starmer, Rishi Sunak, Nigel Farage's, Hannah Bunting, Labour's Tony Blair, John Major, Jeremy Hunt, Sunak, Boris Johnson, Jeremy Corbyn's Labour, Liz Truss Organizations: Labour Party, Bloomberg, Getty, Conservative, Labour Party ., of, Liberal Democrats, Greens, Scottish National Party, Plaid Cymru, Democratic Unionist Party, Nigel Farage's Reform, Conservatives, Labour, Convention, University of Exeter, European Union, Conservative Party, National Army Museum Locations: Redditch, UK, England, Scotland, Wales, Northern Ireland, London
Labour leader Sir Keir Starmer talks at a campaign event on June 29, 2024 in London, England. LONDON — The U.K.'s opposition Labour Party is on course to win a commanding parliamentary majority in the country's general election, unseating the incumbent Conservatives after 14 years, according to exit polls released after voting closed. Millions of people across England, Scotland, Wales and Northern Ireland voted for their local representatives in the 650-member House of Commons, the U.K.'s lower house of parliament. A nationwide result will likely be declared early Friday, with Keir Starmer, leader of center-left Labour, expected to become the country's next prime minster. Political surveys have for nearly two years pointed to a large Labour victory.
Persons: Sir Keir Starmer, Keir Starmer Organizations: Labour Party, Northern Ireland, of, Labour Locations: London, England, Scotland, Wales, Northern
Brad Reinhart, Senior Hurricane Specialist at the National Hurricane Center, works on tracking Hurricane Beryl, the first hurricane of the 2024 season, at the National Hurricane Center on July 01, 2024 in Miami, Florida. Hurricane Beryl has been declared the strongest-ever hurricane in July, breaking the latest in a series of records as it causes widespread destruction in the Caribbean. On Monday, Beryl was declared a Category 5 hurricane — the highest rating on the SAFFIR-SIMPSON Hurricane Scale, declared when winds top 155 miles per hour. The National Oceanic and Atmospheric Administration (NOAA) previously forecast an 85% chance of an "above-normal" 2024 hurricane season in the Atlantic. Four to seven of these are projected as likely to develop into major hurricanes, compared with an average of three.
Persons: Brad Reinhart, Hurricane Beryl, Beryl, El Organizations: National Hurricane Center, Atmospheric Administration, NOAA, Southern Locations: Miami , Florida, Hurricane, Caribbean
LONDON — European stocks closed higher Wednesday, as sentiment remains on edge ahead of two major elections. The index provisionally closed 0.8% higher, with most sectors in the green led by mining stocks, up 2.3%. Maersk shares ticked 3.8% higher after the shipping giant withdrew from sales talks with logistics firm DB Schenker. It comes as figures showed softening in the U.S. labor market. ADP data showed less private payroll growth than expected in June, while weekly jobless claims numbers came in higher than forecast.
Persons: Vincent Clerc, Jerome Powell Organizations: Maersk, DB Schenker, Labour Party, Reuters, U.S, Federal Locations: France, Asia, Pacific, U.S
watch nowHeadline inflation in the euro area dipped to 2.5% in June, the European Union's statistics agency said Tuesday, while the closely watched core and services prints held steady. Core inflation, excluding the volatile effects of energy, food, alcohol and tobacco, stayed at 2.9% from the prior month, narrowly missing the 2.8% economists had forecast. Investors will now parse what the latest data means for the trajectory of interest rates in the 20-nation euro zone, following the European Central Bank's initial 25 basis point cut in June. Volatility in the consumer price index has long been expected this year, as choppy base effects from the energy market unwind. In June, year-on-year energy inflation in the euro zone was 0.2%, a sharp switch from earlier in the year when the sector had a strong disinflationary pull.
Persons: Luis de Guindos, CNBC's Annette Weisbach Organizations: Reuters, Inflation, Investors, Central, Tuesday, ECB, Central Banking Locations: Sintra , Portugal
Dimitar Dilkoff | Afp | Getty ImagesFrench stocks staged a relief rally early Monday after results from the first round of the nation's snap election raised expectations of a hung parliament. The far-right National Rally party and its allies won 33.1% of the vote, the left-wing NFP alliance was second with 28% and Macron's coalition secured 20%, France's Interior Ministry said Monday. Stock Chart Icon Stock chart icon CAC 40 index. Stock Chart Icon Stock chart icon Euro/U.S. National Rally is hoping it will be the party's 28-year-old leader, Jordan Bardella.
Persons: Jordan Bardella, Gabriel Attal, Manuel Bompard, Dimitar Dilkoff, Sebastian Paris Horvitz, CNBC's, Matthew Ryan, , Emmanuel Macron, Macron, Horvitz Organizations: Rassemblement National, France's, France, TF1, Afp, Getty, NFP, La Banque Postale Asset Management, Citi, National, U.S ., National Assembly, Locations: London, France, Europe
France's parliamentary election has already rattled investors as the country's risk premium rises — but two possible scenarios have still not been priced in by markets and could impact stocks in the wider European region, according to Citi. "However, the market is not priced in for far-right or far-left majority," Manthey said. "The outcome is still quite unclear, we only have polling for the first round of the election. "Let's put the announcement of the election in the context of the positioning of the investors. If the French election outcome "is very market unfriendly ... markets in Europe are quite correlated.
Persons: Beata Manthey, CNBC's, Manthey, Emmanuel Macron's, Let's, we've Organizations: Citi, CAC Locations: Sunday's, Europe, U.S
Poster of Christophe Versini for the Rassemblement National (National Rally) party, with Marine Le Pen and Jordan Bardella on it, on June 24, 2024. Recent polling suggests the far-right Rassemblement National (RN, or National Rally) party, led by Jordan Bardella, could win the most seats in the National Assembly, followed by the left-wing alliance Nouveau Front Populaire (NFP, or New Popular Front). French bond yields — which move inversely to prices — have been relatively contained. Even then, he added, the spread of French bond yields over their German counterparts looked set to remain higher than before Macron called the election. There is little concern over France enacting its own "Frexit," he said, with even National Rally having moved away from actively proposing leaving the euro area or the European Union.
Persons: Christophe Versini, Jordan Bardella, Magali Cohen, Emmanuel Macron, Sunday's, Giorgia Meloni, Viraj Patel, Patel, Liz, Truss, Andrew Kenningham, Macron, Kenningham, François Mitterrand, Christian Keller, CNBC's, Keller Organizations: Rassemblement National, Afp, Getty, National Assembly, Societe Generale, BNP, Vanda Research, Capital Economics, European Central Bank, Bank of England, Barclays, European Union Locations: Germany, Italy, Europe, France, Britain
"Two or three cuts is a forecast, it's not a promise, and we will adapt monetary policy according to incoming information," Thedéen told CNBC's Arabile Gumede. "Our inflation forecast is pointing to a good inflation outlook, we're still already now very close to our target and our forecast has pointed to 2% inflation in the coming months and years," Thedéen said. In order to deliver more rate cuts, "we don't need to have a super positive surprise, we need to have data coming in in-line overall. So I think that would be the main message," Thedéen told CNBC. Headline inflation in Sweden was 3.7% in May, slightly higher than the 3.5% forecast in a Reuters poll of economists.
Persons: Sweden's Riksbank, Erik Thedéen, Thedéen, CNBC's Arabile, we're Organizations: CNBC Locations: Norway, Swedish, Sweden
One basis point is equivalent to 0.01%The 10-year Treasury yield was flat 4.257% on Monday. The 2-year Treasury yield was fractionally higher at 4.736%. Treasurys were muted entering the final week of June, with investors set to zero in on Friday's key inflation report. With a summer interest rate cut from the Federal Reserve seemingly off the table, markets are hunting for more signs that September may be the month. That may come in the form of Friday's personal consumption expenditures price index, the Fed's preferred inflation gauge.
Persons: Michelle Bowman, Lisa Cook Organizations: Federal Reserve, Reuters, Traders Locations: U.S
Jack Taylor | Getty Images News | Getty ImagesLONDON — European stocks are heading for a cautiously higher open Friday as investors monitor a slew of central bank decisions and data releases. The pan-European Stoxx 600 index is on course for a weekly gain of more than 1.5%, its best performance since early May. Attention this week turned to central bank action, as the Swiss National Bank announced it would cut interest rates by 0.25 percentage points to 1.25%. The SNB became the first major central bank to cut rates during this cycle back in March. The Bank of England meanwhile kept interest rates unchanged at a 16-year high of 5.25%.
Persons: Jack Taylor Organizations: Getty, Equity, European Union Parliament, Reuters, Swiss National Bank, Bank of England Locations: Godalming, United Kingdom, France
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