Investors assess interest rate path

Stocks on the move: Verbund down 9%, Fuchs Petrolub down 4%

Austrian hydropower producer Verbund saw its shares rise more than 9% by midday to lead the Stoxx 600 after the Austrian government announced plans for a temporary tax hike of up to 40% for oil and gas companies and power companies. If the company makes green investments, the tax can be reduced to 33%.

Under the index, shares of German lubricants producer Fuchs Petrolub fell 4 percent.

– Elliot Smith

Regulation pendulum ‘has to swing too far’, says Deutsche Bank CEO

CEO of Deutsche Bank He told an audience at the European Banking Conference that he has concerns that the financial regulation “pendulum” “must swing too far.”

Speaking in Frankfurt, Christian Sewing said banks would have made less progress in recent years without the regulations put in place after the financial collapse, but it was now time for regulators to consider whether “it might have gone too far”. .

Sewing also said that Europe could lose its position as a global leader in sustainable finance if regulation continues “as is”.

– Hannah Ward-Glenton

Commerzbank CEO Manfred Knof says the bank is not preparing for a disaster, but for a mild recession.

Commerzbank CEO Manfred Knof said the bank had prepared for a “slight recession” and that he expected a rise in non-performing loans, but that it was “certainly not a catastrophe or a bad problem.”

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“We’ve already made provisions but we still don’t see many challenges ahead,” Knof told CNBC’s Annette Weisbach at the European Bank Congress in Frankfurt on Friday.

CEO says, Commerzbank is expecting an increase in bad loans, but no catastrophe

Knof also said that regulators, politicians and corporate banks are acting in a way that gives him “hope” that the sector can handle the current economic climate.

– Hannah Ward-Glenton

UK retail sales rebound partially in October, but outlook remains bleak

UK retail sales rose 0.6% in October compared to October, beating expectations and partially recovering from a 1.5% drop in September.

The Office for National Statistics said retail sales remained 0.6% below their pre-pandemic levels, while retail sales excluding fuel grew less than expected, consumer uncertainty in the face of high inflation and a recession that explains what is happening now. Office for Budget Accountability.

The UK will see its sharpest drop in living standards on record in the next two years, the OBR predicted on Thursday.

“With the holiday season approaching, many people have already switched to grocery shopping and will continue to change their food and clothing purchases as well as their gift lists,” said Farah Thalji, director of consulting at Simon-Kucher & Partners.

“Although we’ve seen a return to in-store shopping over the last few weeks, both online and retail stores will be hard-pressed to get customers to part with their cash as discretionary income looks set to decline further.”

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– Elliot Smith

Stocks on the move: Verbund down 8%, Unibail-Rodamco-Westfield down 4%

Austrian usage Verbund It had gained 8 percent in early trade to lead the Stoxx 600, while French commercial real estate company Unibail-Rodamco-Westfield fell 4 percent.

Rate hikes have had ‘only limited effects’ on inflation so far, the Fed’s Bullard says

The speech of the President of the Federal Reserve of St.

He said the Fed still has work to do before inflation is under control while making remarks that emphasize the importance of using policy-based approaches. He is a voting member of the Federal Open Market Committee, which sets rates.

“So far, the change in the stance of monetary policy seems to have only a limited impact on the observed inflation, but the market value indicates that a decrease in inflation is expected in 2023,” he said.

– Jeff Cox, Alex Harring

The UK announced £55 billion in tax increases and spending cuts as the country suffered the biggest fall in living standards on record.

U.K. Chancellor of the Exchequer Jeremy Hunt unveiled a £55 billion ($66 billion) fiscal austerity plan on Thursday that includes a number of tax increases and spending cuts as he tries to plug a huge hole in the country’s public finances. .

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The £30bn plan in spending cuts and £25bn tax increase comes as the independent Office for Budget Responsibility (OBR) confirmed the UK economy is now in recession and predicted a 1.4% contraction next year.

The OBR also said the UK would see its biggest drop in living standards since record-keeping, erasing almost a decade of real household income growth by 2024.

– Elliot Smith

Here are the opening calls

of Britain FTSE 100 It is expected to rise by 14 points to 7,361, in Germany DAX It is set to increase by 55 points to 14,321 and that of France CAC 40 It can be seen that it comes out around 43 points to 6,619.

CNBC Pro: ‘Bull’s Case for Half Is Obligatory’: BofA Picks Top Chip Stocks to Buy

Chip stocks, once a hot favorite among investors, are in decline this year.

But BofA says that while consumer demand remains under pressure, “a half-baked case is compelling.”

BofA predicted that semiconductor sales could rebound in the second half of 2023.

Here are some themes that chip stocks can ride on, says the bank, which also picks names to buy.

CNBC Pro subscribers can read more here.

– Weizhen Tan

CNBC Pro: While Muddy Waters is betting against dLocal, here are other fintech stocks that short sellers are eyeing.


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