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ECB policymaker says there are no signs of unsustainable inflation expectations

According to European Central Bank policymaker Robert Holzmann, there is no sign of a lack of market expectations on inflation.

The statement was presented on a slide alongside a speech for the Euromoney conference on Central and Eastern Europe.

In a slide discussing the recent rate increase, Holzmann added that “[p]interest rates will
will need to rise significantly further to reach levels that are sufficiently restrained to ensure a timely return of inflation to the 2% average target.”

– Hannah Ward-Glenton

The French economy is holding up better than expected and should avoid a severe downgrade: Bank of France

The French economy is holding up better than expected and should be able to avoid a “severe downturn”, Bank of France governor Francois Villeroy de Galhau said on Wednesday.

“The action in France shows better resistance than expected,” Villeroy told Radio Classique.

The Bank of France said the French economy probably grew slightly in the last quarter of last year as business activity picked up after refinery strikes in October and more nuclear power plants came back online.

– Hannah Ward-Glenton

British insurer Direct Line fell 29% after profit warning

Shares in Direct Line fell 29 percent after the British insurer scrapped its final 2022 deal, sending it on course for its biggest one-day drop on record.

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The company said it saw a surge in claims during a period of bad weather in Britain in December, which caused the insurer to post an underwriting loss for the year.

Inflationary pressures and supply chain issues have made vehicle repairs more expensive, while unexpected heat and cold have boosted demand, Direct Line said.

CEO Penny James said in a statement, “The board recognizes the importance of dividends to our shareholders, and continues to prioritize actions to restore balance sheet resilience and dividend capacity, consistent with our approach to delivering returns for shareholders.”

– Hannah Ward-Glenton

CNBC Pro: This global ETF is the only fund to post gains every year for the past decade.

The only stock ETF that has had a positive return every year over the past decade has been revealed by CNBC Pro.

It is the only fund of almost 7,000 ETFs worldwide reviewed by CNBC Pro to not have negative returns in one year between January 1, 2013 and December 31, 2022.

It has also delivered investors a compound annual growth rate of 14% over the same period, which is one of the more comprehensive index-tracking funds, according to Koyfin data.

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CNBC Pro subscribers can read more here.

– Ganesh Rao

Cryptocurrencies are trading higher as Coinbase reports cancellations

Cryptocurrencies were higher after the crypto company Coinbase announced that it plans to cut 20% of its workforce as it looks to preserve cash during the crypto market crash.

Bitcoin The latter traded 1.55% higher at $17,459.63, according to Coin Metrics. Ether gained 1% to $1,337.85.

Other digital currencies like Cronos and Cardano are also advanced acquisitions.

CEO Brian Armstrong said there was “no way” to cut costs and increase its chances of “doing well in any scenario” without reducing its headcount.

– Lee Ying Shan, Kate Rooney

CNBC Pro: ‘A costly mistake: Citi says stop raising money – and reveals two areas to invest in

Investors had a tough year in 2022, as stocks and bonds ran into broad market turmoil.

While many have been looking for the relative safety of cash, Citi says it’s time to put it to work and has outlined two ways to deploy it for higher returns.

Pro subscribers can read more here.

– Zavier Ong

Coinbase lays off 20% of workforce

Coinbase stock gained 6% after the cryptocurrency exchange operator announced plans to cut 20% of its workforce in an effort to cut costs.

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The layoffs will affect 950 jobs and mark the company’s second round of job cuts in recent months. Coinbase laid off 18% of its workforce in June to prepare for a potential recession and crypto winter, saying it grew “too quickly” during the market.

After the collapse of FTX, one of the largest operators in the industry, crypto markets have come under pressure.

Coinbase said the new round of layoffs will reduce its operating expenses by 25 percent for the quarter ending in March, according to a new regulatory filing.

– Kate Rooney, Samantha Subin

European Markets: Here are the opening calls

European markets are heading higher as investors brace for more inflation data later this week, with US consumer price data for December due Monday on Thursday.

British ones FTSE 100 The index is expected to rise by 26 points to 7,720 in Germany DAX 73 points higher at 14,848, France CAC up 29 points in 6,898 and Italy FTSE MIB 109 points at 25,474, according to IG data.

Data releases will include Russian inflation data for December and earnings from British supermarket Sainsbury’s.

– Holly Elliott


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