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A logo of French bank Societe Generale is seen on the company's skyscraper at the financial and business district of La Defense near Paris, France September 14, 2023. Societe Generale's case against Goldas was ultimately dismissed, prompting the bank to accuse Clifford Chance of negligence. Clifford Chance applied to London's High Court for a declaration that it was not liable to Societe Generale for any alleged negligence or breach of duty. "The dispute concerns whether or not an English firm of solicitors were negligent in their conduct of English law litigation in the English High Court," the judge said. Clifford Chance and Societe Generale declined to comment.
Persons: Gonzalo Fuentes, Clifford Chance's, Clifford Chance, Goldas, Judge Andrew Henshaw, Sam Tobin, Kirsten Donovan Organizations: Societe Generale, La Defense, REUTERS, France –, Generale's, High, Thomson Locations: La, Paris, France, London
The interest rates on mortgages, credit cards and business loans have shot up in recent months, even as the Federal Reserve has left its key rate unchanged since July. The focal point has been on the 10-year U.S. Treasury yield, which underpins many other borrowing costs. The 10-year yield has risen a full percentage point in less than three months, briefly pushing above 5 percent for the first time since 2007. Strong growth and stubborn inflationInitially, when the Fed first began to fight inflation, it was short-term market rates — like the yield on two-year notes — that rose sharply. Those increases closely tracked the increases in the Fed’s overnight lending rate, which rose from near zero to above 5 percent in about 18 months.
Persons: , Subadra Rajappa, Organizations: Federal Reserve, Treasury, Fed
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 20, 2023. General Electric (GE.N) jumped 6.4% in premarket trading after the aircraft engine manufacturer raised its full-year profit forecast. General Motors (GM.N) added 1.5% after beating third-quarter profit estimates, while 3M (MMM.N) gained 4.1% after raising its full-year adjusted profit forecast. Of the 86 companies in the S&P 500 that have reported earnings so far, 78% have topped analysts' expectations, LSEG data showed. The turmoil in the Middle East is also focus as Israel intensified its assault on Hamas in Gaza.
Persons: Brendan McDermid, Bitcoin, Shubham Batra, Shashwat Chauhan, Vinay Dwivedi Organizations: New York Stock Exchange, REUTERS, Dow, Nasdaq, General Electric, General Motors, 3M, Societe Generale, Apple, Microsoft, Reserve, Nvidia, Commerce Department, Dow e, Reuters, Arm Holdings, Intel, Marathon, Thomson Locations: New York City, U.S, Israel, Gaza, Coinbase, Bengaluru
If U.S. and Chinese growth holds up, the investment landscape will need to be redrawn too. Reuters Image Acquire Licensing RightsBut what if peak bond bearishness is already upon us? As Societe Generale's Albert Edwards points out, once the quarterly deflator is factored in, nominal GDP growth in the third quarter was actually only 3.5%. Reuters Image Acquire Licensing RightsEqually, U.S. stocks look expensive if high yields start to choke the economy. Reuters Image Acquire Licensing Rights(The opinions expressed here are those of the author, a columnist for Reuters.)
Persons: Florence Lo, Societe Generale's Albert Edwards, Chris Iggo, Jamie McGeever, Chizu Organizations: REUTERS, Rights, Societe Generale's, World Bank, International Monetary Fund, of America's, HSBC, Reuters, AXA Investment, Bank of America's, Thomson Locations: Rights ORLANDO , Florida, United States, China, Atlanta, Beijing, Europe, U.S, Bank
But by examining car registration data T&E said that, with the exception of ALD, the leasing companies' claims are false. "Our investigation clearly shows that all leasing companies... are making green leadership claims that are not backed up by evidence," the report says. "In other words, leasing companies are greenwashing." Across the EU as a whole, T&E found EVs made up just over 10% of leasing companies' car purchases, the same share as for the rest of the market. "What remains unclear is whether the major leasing companies will take these steps or remain rooted in the fossil age."
Persons: ZE, Eric Gaillard, Arval, EVs, Nick Carey, Barbara Lewis Organizations: Renault, REUTERS, Transport & Environment, Wednesday, Societe Generale, ALD, BNP, Ford, Nissan, Credit, Financial Services, Thomson Locations: Cagnes, Mer, France
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 26, 2023. On the earnings front, consumer goods maker Procter & Gamble (PG.N) edged up 0.2% after its quarterly sales topped market expectations. EV maker Tesla (TSLA.O) and streaming services company Netflix (NFLX.O) are scheduled to report quarterly results after market close. ET, Dow e-minis were down 93 points, or 0.27%, S&P 500 e-minis were down 18.5 points, or 0.42%, and Nasdaq 100 e-minis were down 88.25 points, or 0.58%. Travelers Companies (TRV.N) reported a 14% fall in quarterly profit.
Persons: Brendan McDermid, Joe Biden, Morgan Stanley, New York's John Williams, Governors Christopher Waller, Michelle Bowman, Jerome Powell's, Powell, Patrick Harker, Neel Kashkari, Ankika Biswas, Shashwat Chauhan, Arun Koyyur, Vinay Dwivedi Organizations: New York Stock Exchange, REUTERS, United Airlines, Dow, Nasdaq, U.S, Chevron, Exxon Mobil, Occidental Petroleum, Treasury, Procter, Gamble, Abbott Laboratories, Tesla, Netflix, Federal Reserve, Governors, Generale, Philadelphia Fed, Wall Street Journal, Minneapolis, Dow e, Nvidia, Biden, China . United Airlines Holdings, Rivals American Airlines, Delta Air Lines, Interactive, Travelers Companies, Thomson Locations: New York City, U.S, United, Gaza, Israel, New, China, Bengaluru
REUTERS/Kai Pfaffenbach/File Photo Acquire Licensing RightsHONG KONG/LONDON, Oct 17 (Reuters) - Bond yields rose on Tuesday and stocks steadied as markets continued to retrace last week's moves to safe-haven assets, focusing on corporate earnings prospects and the resilience of the U.S. economy rather than tensions in the Middle East. Benchmark 10-year bond yields in the U.S. and Germany (Bunds) rose around 5 basis points (bps) on Tuesday having risen 5-8 bps Monday - bond yields move inversely to prices. Israel's shekel remained on the weak side of the 4 per dollar level it softened to for the first time since 2015 on Monday. Russian President Vladimir Putin on Tuesday arrived in Beijing to meet Chinese President Xi Jinping even as the war in Ukraine raged on. If investors do not receive the coupon payment, all of Country Garden's offshore debts will be deemed in default.
Persons: DAX, Kai Pfaffenbach, Banks, BNY, Goldman Sachs, We're, Jorge Garayo, Joe Biden, Israel, Israel's shekel, Vladimir Putin, Xi Jinping, BoE, Gold, Brent, Selena Li, Alun John, Shri Navaratnam, Ed Osmond, Alex Richardson Organizations: Deutsche, REUTERS, Bank of America, Treasury, Bund, Societe Generale, U.S, Israel, Hamas, Iran's, Tuesday, HK, Bank of England, Swiss, Venezuela, Thomson Locations: Frankfurt, Germany, HONG KONG, U.S, Iran, Gaza, Beijing, Ukraine, Friday's, Washington, Israel, Hong Kong, London
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailInflation unlikely to come down without a recession, says Société Générale chairmanLorenzo Bini Smaghi, chairman of Société Générale, joins CNBC's Silvia Amaro during the IMF meetings to discuss his forecast on global inflation and the possibility of a soft landing.
Persons: Société Générale, Lorenzo Bini Smaghi, Société, CNBC's Silvia Amaro
REUTERS/Staff/File Photo Acquire Licensing RightsSummaryCompanies Global stocks tick up; U.S. futures riseBond yields tumble again but remain highOil prices steady after rising on Israel-Hamas warLONDON/SINGAPORE, Oct 11 (Reuters) - Global stocks edged higher on Wednesday while bond yields dropped again as investors waited for minutes from the latest Federal Reserve meeting and U.S. inflation figures. Meanwhile, oil prices were little changed as traders kept an eye on the conflict between Palestinian militants and Israel. The MSCI All World stock index (.MIWD00000PUS) was last up 0.21% on Wednesday, after rising 1% in the previous session. Futures for the S&P 500 were up 0.26% after the stock index (.SPX) climbed 0.52% on Tuesday. Global stocks, which had been on the slide since early August, have rallied for the last few sessions.
Persons: Dow Jones, I'm, Florian Ielpo, Arthur van Slooten, Raphael Bostic, Harry Robertson, Tom Westbrook, Sam Holmes, Alex Richardson Organizations: REUTERS, Staff, LONDON, Reserve, Nasdaq, Dow, Lombard, Global, Investors, Treasury, Societe Generale, Atlanta Fed, Bloomberg, Thomson Locations: Frankfurt, Germany, Israel, SINGAPORE, Palestinian, Nashville, Gaza, Brent, China, London, Singapore
Americans' excess household savings are much higher than previously thought. The household savings rate was revised from an annual average of 7.9% between 2017 and 2019 to 6.5%. This could be good news for the economyPrior to the revisions, though, many economists thought excess savings would run out quickly. A San Francisco Fed study updated in August estimated excess savings would likely be depleted during the third quarter of 2023. AdvertisementAdvertisementPerhaps more excess savings than previously thought could cheer up some Americans gloomy about the economy.
Persons: , Société Générale, Bankrate Organizations: Service, Bureau, JPMorgan, BEA, San, San Francisco Fed Locations: San Francisco
The Euronext stock exchange is pictured at the La Defense business district in Paris, France, September 30, 2022. REUTERS/Benoit Tessier/File Photo Acquire Licensing RightsOct 11 (Reuters) - French software company Planisware has priced its shares at 16 euros ($16.97) each for its initial public offering announced last week, a bookrunner said on Wednesday, making it the largest IPO on Euronext Paris in the last two years. The IPO aims to "strengthen Planisware’s position across strategic markets by increasing its market visibility and brand awareness." The group previously said it aimed for a valuation of between 1.11 billion euros ($1.17 billion) and 1.25 billion euros, with a price bracket of 16 to 18 euros per share. The company's shares are due to begin trading on Oct. 16 on Euronext Paris.
Persons: Benoit Tessier, Nathan Vifflin, Diana Mandià, Alison Williams, Louise Heavens Organizations: La Defense, REUTERS, Euronext Paris, Airbus, Philips, Ford, Pfizer, Thomson Locations: Paris, France, Planisware
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailYou'll see a break in yields once you see a 'meaningful slowdown' in the economy: Subadra RajappaAnastasia Amoroso, iCapital chief investment strategist, and Subadra Rajappa, Societe Generale head of U.S. rate strategy, joins 'Squawk Box' to discuss the latest market trends, the impact of Israel-Hamas conflict, rising Treasury yields, and more.
Persons: Subadra, Anastasia Amoroso Organizations: Societe Generale Locations: Israel
Yet in one corner of the hedge fund world, there's a sigh of relief. So-called trend following and systematic hedge funds have long positioned for a fall in government bond prices given higher-for-longer inflation. AlphaSimplex is a $7.9 billion trend following hedge fund. While many trend funds, also known as "managed futures" funds, use price data, their trading models might also interpret macro economic factors playing out in markets. Some trend funds shrank their fixed income holdings in response to the March turmoil.
Persons: Carlo Allegri, Kathryn Kaminski, Morningstar, Razvan Remsing, Yao Hua Ooi, Laurent Le Saint, Metori, Aspect's, Nell Mackenzie, Dhara Ranasinghe, Susan Fenton Organizations: New York Stock, REUTERS, Generale, Reuters, Silicon Valley Bank, Treasury, Virtus, AQR Capital Management, Capital Management, Thomson Locations: Manhattan, New York City , New York, U.S, United States, Germany, Boston, Silicon, Europe, China, Paris, EU, Japan
Re-enter risk premia on what should be 'risk free' bonds. The renewed corporate profits upswing riffs off this relatively robust nominal growth picture too - as do still benign corporate debt premia. However, keeping a lid on 5% nominal GDP may well be what's irking bonds as much as anything. While turning 10-year averages takes some time, nominal GDP growth according to a real time model from the Atlanta Fed is closer to 8% right now. CBO deficit projections to 2030US nominal GDP growth running at 8%?
Persons: York Fed's, Ajay Rajadhyaksha, today's, Treasuries, Fitch, Andrew Heavens Organizations: Treasury, Federal, Fed, The, Barclays, Societe Generale's, Atlanta Fed, Moody's, U.S . AAA, Reuters, Thomson Locations: U.S, Washington, York, 35bp, 150bp, Treasuries, China, Europe
Stocks are following the same path they did ahead of the 1987 stock crash, Societe Generale said. Investors are bullish in the face of rising bond yields, in an "echo" of late 80s sell-off. AdvertisementAdvertisementThe stock market is sending worrying signals, and any sign of recession now could spark a big sell-off, according to Societe Generale strategist Albert Edwards. But the outperformance in the face of soaring bond yields could be a warning of pain to come, if history is any guide. Meanwhile, only 32% of individual investors think the chance of a 1987-style stock market crash over the next six months is less than 10% according to Yale's US Crash Confidence Index.
Persons: Albert Edwards, , Edwards, Dow, bullishness, Raymond James Organizations: Societe Generale, Service, Generale, Federal Reserve, Treasury, York Fed
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailOur base is U.S. will go into a recession by middle of 2024: Societe Generale's Subadra RajappaSubadra Rajappa, Societe Generale head of U.S. rates strategy, joins 'Squawk Box' to discuss latest Treasury yield trajectory, the impact of higher rates on markets, where yields are headed, and more.
Organizations: Societe Generale Locations: U.S
The headquarters of the U.S. Securities and Exchange Commission (SEC) are seen in Washington, July 6, 2009. One said some firms could pay as much as $50 million. The SEC has previously negotiated two other large group settlements as part of its "off-channel" communications probe. In August, regulators fined nine Wall Street firms, including Wells Fargo (WFC.N) and Societe Generale (SOGN.PA), a combined $549 million over employees' use of personal messaging apps. In September 2022, it fined 16 firms, including Goldman Sachs, Morgan Stanley, Citigroup and Bank of America, $1.8 billion for similar lapses.
Persons: Jim Bourg, Spokespeople, Oppenheimer, Voya, Wells, Goldman Sachs, Morgan Stanley, JPMorgan Chase, Chris Prentice, Carolina, Michelle Price, Jacqueline Wong Organizations: U.S . Securities, Exchange Commission, SEC, REUTERS, Reuters, Truist Financial Corp, US Bancorp, Voya Financial, LPL, Interactive, Oppenheimer, Fifth Third Bancorp, Fifth, Truist, Wall Street, Societe Generale, Citigroup, Bank of America, JPMorgan, Thomson Locations: Washington
The government sparked a market rout last month with the surprise announcement of a 40% tax on the profits banks are reaping from rising interest rates. The option would benefit banks that hold a higher proportion of Italian government bonds among their assets relative to loans. Banca Akros and broker Equita also expect most banks to pay the tax. Equita also said paying the levy would allow lenders to maintain more flexibility over their remuneration policy. Switching the tax basis to risk-weighted assets helps banks which have a lower 'risk density', meaning the average risk weight per unit of exposure.
Persons: Jennifer Lorenzini, Equita, Akros, Siena, Valentina Za, Kirsten Donovan Organizations: REUTERS, Generale, Banca Akros, ICCREA, Bank, Banca Generali, Thomson Locations: Monte dei, Siena, Italy, Italy's
The S&P 500 (.SPX) tumbled 2.9% this week, its biggest weekly decline since March. High Treasury yields dull the allure of stocks by offering investors an attractive payout on an investment seen as virtually risk free. The S&P 500 entered what has historically been its weakest 10-day stretch of the year on Sept. 18, according to BofA Global Research. Meanwhile, a drawn out government shutdown could aggravate concerns over U.S. government gridlock and send Treasury yields even higher. He noted that the S&P 500 remains above its 200-day moving average and there have been few signs of investors fleeing to safety.
Persons: Charlie Ripley, Brian Jacobsen, , , Fitch, Keith Lerner, Adam Turnquist, David Randall, Ira Iosebashvili, David Gregorio Our Organizations: Federal Reserve, Fed, Investors, BoFA, Allianz Investment Management, Treasury, Annex Wealth Management, BofA Global Research, Societe Generale, LPL Financial, Thomson
The European Central Bank last week lifted rates to a record 4% and upgraded its inflation forecast for 2024, but the euro fell and has lost almost 2% against the dollar this month. Overall, Europe's central banks "would like to portray this idea of higher for longer (rates)," said Ed Hutchings, head of rates at Aviva Investors. The currency, which the central bank labeled "unjustifiably weak," barely caught a break and remains near a record low against the euro . He expected one the of big European central banks to be the first to cut rates. European central banks were "in a bind," Fiotakis added, as higher oil prices also threatened to push inflation higher.
Persons: Dado Ruvic, Sterling, Kit Juckes, BoE, SocGen's Juckes, Ed Hutchings, Nathan Thooft, Bjoern, Fiotakis, Orla Garvey, Naomi Rovnick, Christina Fincher Organizations: REUTERS, Sterling, LONDON, Bank of, Swiss, greenback, Societe Generale, European Central Bank, ECB, U.S . Federal Reserve, Fed, Aviva Investors, Investment Management, Reuters, DWS Group, Nomura, ING, Barclays, Federated, Thomson Locations: Swiss, Bank of England, Switzerland, Sweden, Europe, U.S, Western Europe, United States, Britain, Swedish, Japan, European
Baby boomers are the big winners from the Federal Reserve's policies, Larry McDonald said. Years of low interest rates boosted asset prices, and now they can earn 5% from Treasury bills. AdvertisementAdvertisementMcDonald's X post made the point that higher rates have lifted yields on Treasury bills to more than 5%. As a result, baby boomers have the option to cash out their profits, invest in short-term government debt, and collect a solid, guaranteed return. While baby boomers are under fire for hoarding wealth, their spending in retirement could prove crucial in sustaining the economy and preventing a recession, market veteran Ed Yardeni argued this summer.
Persons: Larry McDonald, McDonald, Lehman, He's, boomers, Baby, That's, Ed Yardeni Organizations: Service, Fed Locations: Wall, Silicon, millennials, Ukraine
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailInflation will return to the Fed's 2% target by next year, says Moody's Analytics' Mark ZandiJamie Cox, Harris Financial Group managing partner, Subadra Rajappa, head of U.S. rates strategy at Societe Generale, and Mark Zandi, Moody's Analytics chief economist, join 'The Exchange' to discuss signals that indicate the Fed could be done with rate hikes this year, cues in the dot plot about the Fed's 2024 agenda, and fears of a potential government shutdown.
Persons: Zandi Jamie Cox, Subadra Rajappa, Mark Zandi Organizations: Harris Financial Group, Societe Generale
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Jamie Cox, Subadra Rajappa, and Mark ZandiJamie Cox, Harris Financial Group managing partner, Subadra Rajappa, head of U.S. rates strategy at Societe Generale, and Mark Zandi, Moody's Analytics chief economist, join 'The Exchange' to discuss signals that indicate the Fed could be done with rate hikes this year, cues in the dot plot about the Fed's 2024 agenda, and fears of a potential government shutdown.
Persons: Jamie Cox, Subadra Rajappa, Mark Zandi Jamie Cox, Mark Zandi Organizations: Harris Financial Group, Societe Generale
The benchmark 10-year Treasury yield hit 4.399% overnight in Asia, its highest rate since early November 2007, and the two-year yield rose further above 5%. MSCI's gauge of stocks across the globe (.MIWD00000PUS) shed 0.27%, while the pan-European STOXX 600 index (.STOXX) lost 1.05%, hit by lowered growth outlooks. CENTRAL BANKSGlobal central banks take stage, with five of those overseeing the 10 most-heavily traded currencies holding rate-setting meetings this week. A swathe of emerging market central banks including Turkey and South Africa will also meet. The Swedish crown sank to a record low against the euro on Monday, days before the Riksbank is expected to raise interest rates again.
Persons: Brendan McDermid, BOE, Brent, Marc Chandler, Chandler, Saira Malik, France's, Stocks, Xi, Kazuo Ueda, Herbert Lash, Nell Mackenzie, Dhara, Stella Qiu, Philippa Fletcher, Alexander Smith, Christina Fincher Organizations: New York Stock Exchange, REUTERS, Treasury, Global, Federal, United Auto Workers, Detroit Three, Bannockburn Global, U.S, Societe Generale, Dow Jones, Nasdaq, China Evergrande, HK, CENTRAL, Bank of England, Bank of Japan, European Central Bank, Thomson Locations: New York City, U.S, China, Bannockburn, New York, Asia, Turkey, South Africa, Swedish, London, Sydney
China property woes, geopolitical tensions and ongoing strikes also stoked worries about global growth. CENTRAL BANKSGlobal central banks take centre stage, with five of those overseeing the 10 most heavily traded currencies holding rate-setting meetings this week. A swathe of emerging market central banks such as Turkey and South Africa will also meet. In currency markets, the dollar drifted lower with the dollar index last down a touch at 105.24 but within sight of recent six-month highs. The euro gained about 0.1% to $1.0663, after slumping to a 3-1/2 month low of $1.0632 last week as the European Central Bank signalled its rate hikes could be over.
Persons: BOE, BOJ, France's, Taiwan's TSMC, Xi, James Rossiter, Rossiter, Marc Chandler, Goldman Sachs, Kazuo Ueda, Nell Mackenzie, Stella Qiu, Dhara, Philippa Fletcher, Alexander Smith Organizations: REUTERS, Staff, Societe Generale, China Evergrande, HK, Technology, Reuters, TD Securities, Japan's Nikkei, Brent, . West Texas, Federal Reserve, Bannockburn Global, CENTRAL, Global, Fed, Bank of England, Bank of Japan, Treasury, European Central Bank, Thomson Locations: Frankfurt, Germany, China, United States, Japan, Scandinavia, Switzerland, Britain, Asia, U.S, London, Bannockburn, Turkey, South Africa, Europe, SYDNEY
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