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☆ European markets cautious ahead of Powell's Jackson Hole speech; Watches of Switzerland down 26%
▼ + stars: | 2023-08-25 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

LONDON — European markets were muted on Friday morning as traders await signals from Federal Reserve officials on the likely path of monetary policy. The pan-European Stoxx 600 hovered around the flatline in early trade, with tech stocks shedding 0.4% while oil and gas shares added 0.6%. The continental blue chip index closed the Thursday session down 0.4%, as global momentum on the back of U.S. chipmaker Nvidia 's blowout earnings faded throughout the day. U.S. stock futures were little changed in early premarket trade on Friday, after Wall Street closed out a dismal regular trading session. Thursday marked the worst day for the Dow since March, while the S&P 500 and Nasdaq had their biggest one-day losses since Aug. 2.

Persons: Nvidia, Jerome Powell Organizations: Federal Reserve, Japan's Nikkei, Wall, Dow, Nasdaq Locations: U.S, Asia, Pacific

☆ 'Final nail in the coffin' for Russia's Wagner Group as leader Prigozhin presumed dead
▼ + stars: | 2023-08-24 | by ( Elliot Smith | ) www.cnbc.com time to read: +8 min

Head of the Wagner Group Yevgeny Prigozhin left the Southern Military District headquarters on June 24, 2023 in Rostov-on-Don, Russia. Stringer | Anadolu Agency | Getty ImagesRussian mercenary force Wagner Group may have suffered a "final nail in the coffin" with the presumed death of leader Yevgeny Prigozhin in a plane crash, analysts suggest. Yet the group also appeared to call for peace, with the Wagner Group Telegram channel on Thursday calling for its members and supporters not to "take any measures" within Russian territory. A member of private mercenary group Wagner pays tribute to Yevgeny Prigozhin and Dmitry Utkin following their apparent deaths in a plane crash on Aug. 23, 2023. Members of the Wagner Group prepare to depart from the Southern Military District's headquarters and return to their base on June 24, 2023 in Rostov-on-Don, Russia.

Persons: Wagner Group Yevgeny Prigozhin, Wagner, Yevgeny Prigozhin, Dmitry Utkin, Vladimir Putin, Prigozhin, Jason Bush, They've, Bush, it's, Alexander Lukashenko, Vladimir Nikolayev, Putin, disbursing Wagner, who'd, reimagining Wagner, Doxsee, Sergei Surovikin, Surovikin, —, Prigozhin's Organizations: Wagner Group, Southern Military, Stringer, Anadolu Agency, Getty, NBC News, Grey Zone, Central African, Russian Defense Ministry, Russian Armed Forces, Kremlin, Redut PMC, Mercenaries, Defense Ministry, Eurasia Group, CNBC, Afp, Russian Embassy, Ukrainian Ministry of Defense, Transnational, Center for Strategic & International Studies, Russian Aerospace Forces, PMC Locations: Rostov, Don, Russia, Moscow, Tver, Hell, Russia's, Ukraine, Central African Republic, Libya, Mali, Sudan, Syria, Belarus, Africa, Russian, London

☆ European markets climb on easing bond yields, blockbuster Nvidia earnings
▼ + stars: | 2023-08-24 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

LONDON — European markets climbed on Thursday, tracking counterparts in Asia and the U.S. as a pullback in U.S. bond yields eased global borrowing costs. The European blue chip index closed Wednesday's session up 0.4% even as euro zone purchasing managers' index figures came in well below expectations and services activity slid into decline. Investors are also awaiting comments from U.S. Federal Reserve Chairman Jerome Powell on Friday at the conclusion of the central bank's symposium in Jackson Hole, Wyoming, which Wall Street hopes will offer some insight into the likely path of interest rates. Stocks markets received a lift on Wednesday from falling yields on long-dated U.S. Treasury notes, which lowered borrowing costs. Yields move inversely to prices, and pulled back from a 16-year high notched earlier this week that was fueled by concerns around persistent inflation and the possibility of the Fed and other central banks keeping monetary policy tighter for longer.

Persons: Hong, Jerome Powell Organizations: Nvidia, U.S . Federal, Stocks, Treasury Locations: Asia, U.S, Jackson Hole , Wyoming

☆ China's deflation could spill over into a global concern, economists say
▼ + stars: | 2023-08-24 | by ( Elliot Smith | ) www.cnbc.com time to read: +7 min

SHENZHEN, CHINA - MARCH 09: View of high commercial and residential buildings on March 9, 2016 in Shenzhen, China. "As a result, Chinese economic weakness and falling prices (especially Chinese producer prices) are likely to spill over into global markets — near-term good news for the Western central banks' fight against elevated inflation." "China's disappointing rebound is now feeding negatively into global sentiment and growth. Beyond the trade-related spillovers, a common global disinflationary pressure comes from commodity prices, where as a huge importer of commodities, Chinese domestic demand remains a key factor. "Weak Chinese domestic investment and broad-based excess capacity in manufacturing, as well as weak sales of new homes and land, are likely to continue to depress global commodity demand," Wilding and Liao said.

Persons: Zhong Zhi, Tiffany Wilding, Wilding, Carol Liao, Montgomery Koning, Liao, TS Lombard's Montgomery Koning Organizations: Getty, National Bureau, Statistics, Evergrande, TS Lombard, Lombard, U.S, Census, TS Lombard's Locations: SHENZHEN, CHINA, Shenzhen, China, U.S, Beijing, West, Germany

U.S. Treasury yields were mixed on Thursday as investors await signals on monetary policy from central bankers at the upcoming Jackson Hole meeting. The yield on the benchmark 10-year Treasury note was up around 2 basis points at 4.215%, after hitting a 16-year high on Monday. The yield on the 30-year Treasury bond climbed less than 1 basis point to 4.288%. Richmond Fed president Thomas Barkin struck a hawkish tone on Tuesday, reiterating that the Fed needs to defend the 2% inflation target to preserve its credibility with the public. The U.S. Treasury on Thursday will auction $80 billion in 4-week bills, $70 billion in 8-week bills and $8 billion in 29-year and six-month Treasury Inflation-Protected Securities.

Persons: Jackson, Thomas Barkin, Barkin, — CNBC's Elliot Smith Organizations: Treasury, Federal, Richmond Fed, of Commerce, U.S, Securities Locations: Jackson Hole , Wyoming, Danville Pittsylvania County

☆ Treasury yields mostly lower as rally takes a pause ahead of Jackson Hole
▼ + stars: | 2023-08-23 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

U.S. Treasury yields were lower at the long end of the curve on Wednesday as investors assessed the outlook for interest rates ahead of the Federal Reserve's Jackson Hole symposium. At the shorter end of the curve, yields were marginally higher. "We have one big weapon and that is credibility," Barkin said to the Danville Pittsylvania County Chamber of Commerce. "There is nothing magic about 2 except that when you set that as a target you probably want to achieve it." On the data front, S&P Global's flash purchasing managers' index readings for August are due at 9:45 a.m.

Persons: Jackson, Jerome Powell, Thomas Barkin, Barkin Organizations: Treasury, Federal, Richmond Fed, of Commerce Locations: Wyoming, Danville Pittsylvania County

☆ Russia, expansion and Western relations in the spotlight as leaders gather for pivotal BRICS summit
▼ + stars: | 2023-08-22 | by ( Elliot Smith | ) www.cnbc.com time to read: +9 min

South African police officers walk in front of an event banner outside the venue for the BRICS summit at the Sandton Convention Center in the Sandton district of Johannesburg, South Africa, on Monday, Aug. 21, 2023. Ramaphosa invited 67 leaders from across Africa, Latin America, the Middle East, Asia and the Caribbean to attend the summit, but no Western leaders received an invitation. watch nowBilateral deals and cooperation is common among BRICS members, but de Carvalho challenged the idea that there is a unanimous desire to compete with the G7. He added that the BRICS members do not always agree and do not see the group as a "panacea," but simply a "vehicle to become more influential in global discussions." "The G7 contains the rich Western economies, while BRICS contains the two most populous countries and the leading countries on three continents.

Persons: Michele Spatari, Cyril Ramaphosa, Xi Jinping, Luiz Inácio Lula da Silva, Narendra Modi, Sergei Lavrov, Vladimir Putin, Putin, Ramaphosa, Gustavo de Carvalho, de Carvalho, Lula, BRICS, It's, it's, Steven Gruzd, Gruzd Organizations: Bloomberg, Getty, West, South, Indian, Russian, International, Court, ICC, Western, African Union Commission, New Development Bank, South African Institute of International Affairs, CNBC Locations: Sandton, Johannesburg, South Africa, Ukraine, Africa, Latin America, East, Asia, Caribbean, Nigeria, Saudi Arabia, Iran, UAE, Argentina, Indonesia, Egypt, Ethiopia, Ghana, India, BRICS, Russia, Brazil, China

☆ Stock markets face a 'perfect storm' as high rates and China fears bite, analysts warn
▼ + stars: | 2023-08-18 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

Traders work on the floor of the New York Stock Exchange on August 16, 2023 in New York City. large scale fiscal stimulus) we acknowledge sentiment on China is unlikely to reverse sustainably on its own." Cau suggested this poses a problem for European and U.K. stocks. As such, Barclays is recommending investors should take a "barbell" approach involving allocations to cyclical and defensive stocks and a "value tilt." A value tilt refers to tipping a portfolio towards stocks perceived to be trading at a discount relative to their financial fundamentals.

Persons: Michael M, Russ Mould, bunds, Emmanuel Cau, Cau Organizations: New York Stock Exchange, Santiago, Getty, Bell, U.S, U.S . Federal, Treasury, Silicon Valley Bank, Barclays, European Equity Locations: New York City, U.S ., Silicon, China

☆ Hong Kong's benchmark Hang Seng index closes in bear market territory
▼ + stars: | 2023-08-18 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

Hong Kong's benchmark stock index closed in bear market territory, down 2.1% in the Friday session and more than 20% below the highs of January, as uncertainty over China's property market and growth prospects erase early-year gains. The further losses on Friday came after news that embattled Chinese real estate giant Evergrande had filed for bankruptcy protection in a U.S. court. Friday's plunge for the Hang Seng index saw some of the region's largest companies close in the red, with Tencent down 2.34%, Alibaba down 3.44% and HSBC shedding 1.1%. A bear market is a prolonged downturn in prices that sees a broad market index drop at least 20% from its most recent peak. The Hang Seng index closed at 17,950.85 on Friday, down 20.88% from the 22,688.9 of Jan. 27.

Persons: Evergrande Organizations: HSBC Locations: Central, Hong Kong, U.S

☆ European markets fall further as caution lingers around global stocks
▼ + stars: | 2023-08-18 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

LONDON — European markets retreated on Friday, tracking cautious global sentiment as traders assess the future for monetary policy and fresh concerns about China's real estate sector. The European blue chip index closed Thursday's session down 0.9% and is on course for a negative week, after the U.S. Federal Reserve's July meeting minutes showed further interest rate hikes were not off the table. European stocks on Friday look set to follow counterparts in Asia-Pacific, where markets fell across the board as investors assessed Japan's July inflation print and embattled Chinese real estate giant Evergrande's U.S. bankruptcy filing. The company sought protection under Chapter 15 of the U.S. bankruptcy code, which shields non-U.S. companies that are undergoing restructuring from creditors. Wednesday's Fed meeting minutes prompted the U.S. 10-year Treasury yield on Thursday to rise to its highest level since October 2022.

Persons: — Organizations: U.S, U.S . Federal, Dow, Wednesday's Fed Locations: U.S ., Asia, Pacific, U.S

☆ China's economic model is 'washed up on the beach,' says veteran investor David Roche
▼ + stars: | 2023-08-17 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

China's economic model is "washed up on the beach" and "not going to take off again," which will have a big impact on global markets, says veteran investor David Roche. Despite a remarkable rally in stock markets so far this year, concerns have been growing over the potential ripple effect of a prolonged slowdown in China. China has experienced meteoric growth that outpaced developed countries over the past two decades, overtaking Japan as the world's second-largest economy. However, many economists now see a longer structural downward trend amid diminishing contributions from property and manufacturing — the traditional pillars of China's rapid economic expansion. "The Chinese model is clearly washed up on the beach with a huge number of legacy holes in it, and it's not going to take off again," Roche said.

Persons: David Roche, Roche, CNBC's, it's, " Roche Organizations: People's Bank of, Communist Party, World Bank, Independent, Embassy Locations: Beijing, China, People's Bank of China, Japan, London

☆ European markets lower after Fed officials hint at further rate hikes
▼ + stars: | 2023-08-17 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

LONDON — European markets were lower on Thursday after the U.S. Federal Reserve 's July meeting minutes showed further interest rate hikes were not off the table. The European blue chip index closed Wednesday's session down 0.1% as investors assessed U.K. inflation figures along with euro zone second-quarter gross domestic product data. Minutes from the July meeting of the rate-setting Federal Open Market Committee showed officials expressed concern about the persistence of inflation and suggested more hikes to interest rates could be necessary unless conditions improve. Markets generally expect that to be the final hike of this monetary tightening cycle, but Wednesday's minutes indicated that officials are wary of calling time just yet. U.S. stock futures were little changed in early premarket trade as Wall Street continues to suffer a rocky month.

Organizations: U.S . Federal, Walmart Locations: U.S, Asia, Pacific, Japan, China

☆ Russia's inflation spike sets Kremlin and central bank on collision course
▼ + stars: | 2023-08-17 | by ( Elliot Smith | ) www.cnbc.com time to read: +6 min

Russia's President Vladimir Putin (L) and Russian Central Bank Governor Elvira Nabiullina Alexei Nikolsky\TASS via Getty ImagesRussia's rising inflation and plunging currency have spotlighted an emerging discord between the Kremlin and the country's central bank. Analysts suggested the government's direct strong-arming of the central bank into monetary policy action was a sign of the problems faced by the country's economy. In other words, the Russian currency has entered a vicious circle that it will struggle to escape from." This is because the negative factors behind the weakening currency are largely outside the control of the Central Bank of Russia." She added that blaming the central bank has therefore become an "easy tactic" for the Kremlin in the absence of any tangible options through which to improve the situation.

Persons: Vladimir Putin, Russian Central Bank Governor Elvira Nabiullina Alexei Nikolsky, Vladimir Putin's, Maxim Oreshkin, Anatoly Aksakov, Agathe Demarais, Demarais, Stephanie Kennedy, Julius Baer, Kennedy Organizations: Russian Central Bank Governor, Getty, Kremlin, Central Bank of Russia, Bank, Bank of Russia, Financial, Bank of, Economist Intelligence Unit, CNBC, CBR, U.S . Locations: Russia, Bank of Russia, Ukraine

☆ UK headline inflation rate drops sharply to 6.8% in July, in line with expectations
▼ + stars: | 2023-08-16 | by ( Elliot Smith | ) www.cnbc.com time to read: +5 min

In August, the Bank of England increased interest rates for the 14th time in a row. LONDON — U.K. headline inflation cooled sharply in July to an annual 6.8%, but the core consumer price index remained unchanged, posing a potential headache for the Bank of England. Analysts noted that the participation rate broadly held steady, while the employment rate declined, signaling a weakening in labor demand. U.K. Finance Minister Jeremy Hunt said the drop in headline inflation showed the government's action to tackle inflation is "working," but "we're not at the finish line." Cost-of-living crisis 'far from over'With headline inflation falling to 6.8% and wages growing at record pace, the U.K.'s prolonged cost-of-living crisis may be showing signs of abating, said David Henry, investment manager at Quilter Cheviot.

Persons: Jeremy Hunt, Hunt, David Henry, Henry, Suren, Thiru Organizations: Bank of England, LONDON, Reuters, National Statistics, Monetary, Analysts, Office, Finance, Institute of Chartered Accountants Locations: CPIH, Cheviot, England, Wales

☆ Russian central bank jacks up interest rates to 12% at emergency meeting after ruble plunge
▼ + stars: | 2023-08-15 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

National flag flies over the Russian Central Bank headquarters in Moscow, Russia May 27, 2022. Russia's central bank on Tuesday hiked interest rates by 350 basis points to 12% at an emergency meeting, as Moscow looks to halt a rapid depreciation of the country's ruble currency. The ruble slumped near 102 to the dollar on Monday, as President Vladimir Putin's economic advisor, Maxim Oreshkin, penned an op-ed in Russian state-owned Tass news agency that blamed the plunging currency and the acceleration of inflation on "loose monetary policy." The Bank of Russia subsequently announced an extraordinary meeting on Tuesday to reassess its key interest rate, which previously sat at 8.5%. The ruble strengthened early on Tuesday, as investors bet on a significant tightening of monetary policy from the central bank, and was trading just below 96 to the dollar shortly before 8 a.m. London time.

Persons: Vladimir Putin's, Maxim Oreshkin Organizations: Russian Central Bank, Tass, of Russia Locations: Moscow, Russia, Russia's, London

☆ Russian ruble slumps to near 17-month low, moves past 100 against the dollar
▼ + stars: | 2023-08-14 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

This pool image distributed by Sputnik agency shows Russian President Vladimir Putin meeting with the Tver region governor at the Kremlin in Moscow on August 9, 2023. The Russian ruble slid past 100 to the U.S. dollar on Monday, nearing a 17-month low as President Vladimir Putin's economic advisor blamed loose monetary policy for the rapid depreciation. Putin's economic advisor Maxim Oreshkin told Russia's state-owned Tass news agency that the depreciation would normalize in the near future." A weak ruble complicates the restructuring of the economy and negatively affects the real incomes of the population. In the interests of the Russian economy — a strong ruble," he said, according to a Google translation.

Persons: Vladimir Putin, Vladimir Putin's, Maxim Oreshkin, William Jackson, Jackson Organizations: Sputnik, Kremlin, Russian, U.S, greenback, Bank of, Tass, Federal State Statistics Service, Capital Economics Locations: Tver, Moscow, Bank of Russia, Russia's, Russia, Russian

☆ UBS ends Credit Suisse's government and central bank protections
▼ + stars: | 2023-08-11 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

The logos of Swiss banks Credit Suisse and UBS on March 16, 2023 in Zurich, Switzerland. UBS on Friday said that it has ended a 9 billion Swiss franc ($10.27 billion) loss protection agreement and a 100 billion Swiss franc public liquidity backstop that were put in place by the Swiss government when it took over rival Credit Suisse in March. UBS said the decision followed a "comprehensive assessment" of Credit Suisse's non-core assets that were covered by the liquidity support measures. "These measures, together with the intervention of UBS, contributed to the stabilization of Credit Suisse and financial stability in Switzerland and globally," UBS said in a statement. Credit Suisse has also fully repaid an emergency liquidity assistance plus (ELA+) loan of 50 billion Swiss francs obtained from the Swiss National Bank in March, as the lender teetered on the brink after a collapse in shareholder and investor confidence, UBS confirmed.

Organizations: Credit Suisse, UBS, Swiss National Bank, Confederation, Swiss Federal Council Locations: Zurich, Switzerland, Swiss

LONDON — The U.K. economy beat expectations with 0.2% growth in the second quarter, boosted by household consumption and manufacturing output, the Office for National Statistics said Friday. The economy expanded by 0.5% in June, beating a forecast of 0.2% growth. It follows monthly GDP growth of 0.1% in May and 0.2% in April. Output was bolstered by 1.6% growth in manufacturing and 0.7% in production in the second quarter, while services grew by 0.1%. In its most recent monetary policy report, it said it expects quarterly GDP growth to remain around 0.2% in the near term.

Persons: eking, King Charles III, Mike Coop, CNBC's, Coop, Jeremy Hunt, BoE, Ruth Gregory Organizations: National Statistics, Reuters, Bank of, ONS, Morningstar, Bank of England, of England, IMF, Finance, Capital Economics Locations: Germany, France, Italy

☆ Investors are 'overconfident' about the impact of A.I., strategist says
▼ + stars: | 2023-08-11 | by ( Elliot Smith | ) www.cnbc.com time to read: +3 min

"And we've had a dawning awareness of how things have sped up in terms of generative AI. Market participants are "overconfident" about their ability to predict the long-term effects of AI, according to Mike Coop, chief investment officer at Morningstar Investment Management. "Having said that, the prices have run so hard that it looks to us that really people are overconfident about their ability to forecast how AI will impact things." In what he dubbed a "dangerous point for investors," Coop stressed the importance of diversifying portfolios and remaining "valuation aware." "Be cognizant of just how high a price is being paid for the promise of what AI may or may not deliver for individual companies," Coop concluded.

Persons: we've, Coop, CNBC's, Mike Coop, Morningstar Organizations: Nvidia, Facebook, Tesla, Morningstar Investment Management, Google Locations: what's, U.S

☆ Treasury yields rise after the cooler-than-expected July inflation print
▼ + stars: | 2023-08-11 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

U.S. Treasury yields rose on Friday, after the July consumer price index came in below expectations, with traders now looking ahead to wholesale inflation data. ET, the yield on the benchmark 10-year Treasury note was up by around 2 basis points at 4.1055%, while the yield on the 30-year Treasury bond added almost 3 basis points to 4.2604%. The July CPI indicated that prices rose by 3.2% year-on-year, slightly below the 3.3% consensus forecast among economists polled by Dow Jones. Tiffany Wilding, managing director and economist at Pimco, said the Thursday data would be welcomed by the Federal Reserve. Investors are awaiting more economic data out on Friday, with the July producer price index due at 8:30 a.m.

Persons: Dow Jones, Tiffany Wilding, " Wilding Organizations: Treasury, Federal Reserve, Traders Locations: U.S

☆ European markets climb on strong earnings ahead of key U.S. inflation print
▼ + stars: | 2023-08-10 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

LONDON — European markets were higher on Thursday as investors digested a fresh round of corporate earnings and looked ahead to a key U.S. inflation print that could provide hints about the Federal Reserve 's next monetary policy move. The pan-European Stoxx 600 index rose by 0.6% in early trade, with insurance adding 1.7% to lead gains while mining stocks fell 0.4% as the only sector in the red. The European blue chip index closed Wednesday's session up 0.4%, with oil and gas stocks adding 2.3% to lead gains as most sectors finished the day in positive territory. Stateside, stock futures were higher in early premarket trade after another negative session on Wall Street. Back in Europe, corporate earnings continue to roll in and influence individual share price action.

Persons: Dow Jones, Hong Organizations: Federal, Siemens, Zurich Insurance, Thyssenkrupp, Deutsche Telekom, HelloFresh Locations: U.S, London, Asia, Pacific, Europe

☆ Interest rates should stay around 5% for longer — even as inflation falls, top economist Jim O'Neill says
▼ + stars: | 2023-08-10 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

Traders will be closely watching the U.S. consumer price index reading later for July on Thursday for indications on the Fed's future rate trajectory. Veteran economist Jim O'Neill says central banks will need to keep interest rates up around 5% across major economies for longer than the market expects, even as inflation subsides. Core inflation, which excludes volatile food and energy, has remained sticky and is expected to come in at 4.8% year-on-year in July. "I don't quite get this view that rates have to automatically start coming back down again in order to have a permanently more balanced world, in my view, economically. O'Neill also suggested the U.S. is "in a decent position to avoid a recession," noting that inflation expectations have remained fairly stable.

Persons: Dow, Jim O'Neill, O'Neill, CNBC's, we've Organizations: Dow Jones, Traders, U.S . Federal, Chatham House, Goldman, Asset Management Locations: U.S, Europe

☆ European markets climb with inflation, Italian banks in focus
▼ + stars: | 2023-08-09 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

LONDON — European markets advanced on Wednesday, as traders digested China's disinflation and Italy's weakening of a surprise windfall tax on banks. The European blue chip index closed the Tuesday session 0.2% lower, with banks shedding 2.7% after the Italian government announced a surprise windfall tax on excess profits. Shares of Italian banks took a tumble on Tuesday as a result of a tax on net interest income announced on Monday. Citi analysts estimated that the levy represent around 19% of Italian lenders' net profits for the year. A Reuters poll of economists produced a consensus forecast for the July print of 3.3% year-on-year, up from 3% in June.

Persons: Hong Kong, Moody's Organizations: Novo Nordisk, Monday, Citi, Global, U.S, CPI, Federal, ABN Amro, TUI Locations: Stocks, China, Hong, Europe

☆ Italian bank stocks rebound as government waters down windfall tax
▼ + stars: | 2023-08-09 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

Italian bank shares rebounded on Wednesday after the government watered down a surprise windfall tax on excess profits announced earlier this week. City analysts estimated that the Monday announcement of a 40% tax on excess income derived from higher interest rates in 2023 would deal a 19% blow to Italian lenders' net profits for the year. Shares of BPER Banca, Banco BPM, Intesa Sanpaolo, Finecobank and UniCredit all fell sharply during Tuesday trading wiping out more than 9 billion euros from the market capitalization of the Italian banking sector. Finecobank shares recovered 6% by mid-morning on Wednesday, while Unicredit and BPER Banca were both up by more than 4%. "Initially, right after the announcement of the windfall tax on Monday evening, the government reiterated that they were expecting to raise around 3 billion euros in tax, but then the market realized that the numbers didn't add up," Rania explained.

Persons: Gianmarco Rania, Rania Organizations: Banca, Banco, Citi, BPER Banca, Banor, CNBC

☆ Moody's cuts ratings of 10 U.S. banks and puts some big names on downgrade watch
▼ + stars: | 2023-08-08 | by ( Elliot Smith | ) www.cnbc.com time to read: +4 min

Moody's cut the credit ratings of a host of small and mid-sized U.S. banks late Monday and placed several big Wall Street names on negative review. Moody's also changed its outlook to negative for 11 banks, including Capital One , Citizens Financial and Fifth Third Bancorp . Among the smaller lenders receiving an official ratings downgrade were M&T Bank , Pinnacle Financial , BOK Financial and Webster Financial . "Meanwhile, many banks' Q2 results showed growing profitability pressures that will reduce their ability to generate internal capital. Though the stress on U.S. banks has mostly been concentrated in funding and interest rate risk resulting from monetary policy tightening, Moody's warned that a worsening in asset quality is on the horizon.

Persons: Moody's, Cullen, Frost, Jill Cetina, Ana Arsov Organizations: New York Stock Exchange, Bank, New York Mellon, U.S . Bancorp, Truist, Frost Bankers, Northern Trust, Capital, Citizens Financial, Fifth Third Bancorp, T Bank, Pinnacle Financial, BOK, Webster, Regional, Silicon Valley Bank, Signature Bank, Credit Suisse, UBS, Federal Reserve, Fed Locations: New York City, U.S, Regional U.S, Silicon, Europe, Swiss

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