Fed’s latest rate decision ahead

Novartis reports flat earnings, says growth expected in 2023

Novartis CEO: Expect steady growth in 2023

Swiss drugmaker Novartis reported underlying operating income of $16.7 billion for 2022, broadly flat year-over-year.

It predicts growth for 2023, when it will divest its Sandoz generics business.

Novartis CEO Vas Narasimhan told CNBC’s Geoff Cutmore that the company was facing hyperinflation and the ongoing impact of the coronavirus pandemic in the first half of 2022; but these factors were stabilizing, providing a tailwind for the next year.

Narasimhan pointed to the potential impact of the US Inflation Relief Act on drug prices, which he said could be reversed in the near term but would require a re-strategy in the long term.

He also discussed drug laws in Europe, where he said governments need to “rededicate themselves to health care,” and the European Commission should “create a more pro-innovation environment.”

Novartis shares were down 2.26 percent in early afternoon trading.

– Jenny Reid

The CEO of BBVA discusses the company’s record profits

The CEO of BBVA discusses the company's record profits

Spanish bank BBVA reported record profits for 2022, due to increased loan income and strong performance in Mexico.

Full-year net profit of 6.42 billion euros ($6.98 billion) was ahead of analysts’ expectations.

President Carlos Torres Vila told CNBC that he now expects lower growth from 2022 “but still growth.”

BBVA shares were 3.6% higher around noon London time.

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– Jenny Reid

As energy prices continue to fall, inflation in the Eurozone has eased for the third consecutive month

According to the initial data published on Wednesday, inflation in the euro zone was 8.5 percent in January.

The 20-member region passed a price hike in 2022 after Russia’s invasion of Ukraine raised energy and food costs across the bloc. However, inflation began to ease in late 2022, showing two consecutive months of declining headline levels. In December, this rate was recorded at 9.2%.

– Silvia Amaro

The major central banks have indicated that they will point the way towards lower interest rates

The Federal Reserve Building is seen before the Federal Reserve Board is expected to unveil plans to raise interest rates in March as it focuses on fighting inflation in Washington, January 26, 2022.

Joshua Roberts | Reuters

The US Federal Reserve, the European Central Bank and the Bank of England are all expected to raise interest rates again this week, as they make their first policy announcements for 2023.

Economists will be watching policymakers closely this year for signs on the path to future rate hikes, as the three major central banks try to create a soft spot for their respective economies without allowing inflation to reignite. get it.

The market is expecting a 25 basis point hike from the Fed on Wednesday, but the key question is what the Federal Open Market Committee will indicate about another rate hike in 2023.

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Meanwhile, the ECB and BOE are raising 50 basis points on Thursday.

Read the full story here.

– Elliott Smith

Stocks on the move: Husqvarna down 6.2%, QinetiQ down 4.2%

Swedish outdoor machinery dealer Husqvarna was higher after the open, up 6.2 percent, despite reporting a higher operating loss for the fourth quarter. For items that include refurbishing, the loss has narrowed, however.

Under the Stoxx 600 Index, the UK defense company QinetiQ It drops 4.2%.

Germany reinsurance Hanover Rueck after reporting higher full-year results that were in line with its previous forecast, it declined similarly.

– Jenny Reid

European markets open higher as investors prepare for the next Fed hike

Europe’s Stoxx 600 rose 0.3% in early trade, with travel stocks up 0.9% and financial services up 0.8%.

In Britain, the FTSE 100 increased by 0.25 percent, the CAC 40 of France increased by 0.17 percent, and the DAX of Germany increased by 0.1 percent.

The early-year rally was a disaster, but European markets still managed to rise 6.72 percent through January.

Wednesday will be dominated by the announcement of the Federal Reserve’s monetary policy, which is expected to increase by 25 basis points, as well as hints on the future path and assessment of the US economy.

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– Jenny Reid

European Markets: Here are the opening calls

European markets are heading higher on Wednesday as investors focus on the US Federal Reserve’s latest monetary policy announcement today.

British ones FTSE 100 The index is expected to rise by 10 points and open at 7781 in Germany DAX 30 points higher at 15,154, France CAC up 10 points in 7,096 and Italy FTSE MIB 75 points at 26,721, according to IG data.

Profit comes from Vodafone, GSK and Novartis. Wednesday’s key European data for January is inflation figures from the euro zone.

– Holly Elliott

China’s factory activity is contracting again

China’s factory activity in January signaled another rebound from previous readings, albeit at a slower pace, marking the sixth consecutive monthly contraction.

The Caixin Manufacturing Purchasing Managers’ Index for January fell to 49.2 on Wednesday, a slight increase from December’s 49.0 reading but still missing Reuters expectations of 49.5.

Caixin said in a press release, “Both production supply and demand continued to decline last month. The recovery from the pandemic was based on production and sales.

– Lee Ying Shan

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