European Stocks Decline Amid Holzmann’s Comments and Rate Cut Delay
European stock indices opened Monday’s session with collective declines,
influenced by remarks from European Central Bank (ECB) member Robert Holzmann,
who hinted at a potential delay in interest rate cuts due to ongoing inflationary pressures.
This comes during the final full trading session for the Eurozone this year as European markets prepare for the New Year holiday.
The Euro Stoxx 600 Index fell 0.24% to 505.97 points.
France’s CAC 40 Index declined 0.08% to 7,350.07 points,
while Germany’s DAX Index dropped 0.14% to 19,955.59 points.
In the UK, the FTSE 100 Index slid 0.28% to 8,127.03 points.
On the other hand, Italy’s FTSE MIB Index rose 0.1% to 34,204.28 points,
and Spain’s IBEX 35 Index edged up 0.21% to 11,155.60 points.
Euro
Holzmann stated that the ECB might need more time before reducing interest rates,
citing rising energy prices and a weakening euro as factors that could intensify inflationary pressures.
He also mentioned that former U.S. President Donald Trump’s tariff policies could contribute
to slower economic growth in the Eurozone, potentially further accelerating inflation.
His comments followed a Eurostat report revealing a resurgence in inflation within the Eurozone.
The overall inflation rate rose to 2.3% year-on-year in November, up from 2.0% in October,
highlighting the persistent economic challenges in the region.
European Stocks Decline Amid Holzmann’s Comments and Rate Cut Delay
Stock Gains Ignore Powell’s Slightly Hawkish Remarks: Global financial markets experienced significant volatility following statements
by Federal Reserve Chairman Jerome Powell regarding expectations for interest rate cuts.
Despite Powell’s caution in his remarks, US stocks managed to post slight gains by the end of trading sessions.
Below are the details of the fundamental market movements. Contents
In the final moments of US trading, stocks gained even though Powell clarified
that the Federal Reserve was not in a hurry to make additional interest rate cuts.
Powell confirmed that rate cuts will happen “over time” and emphasized that the US economy remains strong.
Strong-Performance-by-the-S&P-500
The S&P 500 index closed the third quarter with an increase of more than $2.5 trillion,
marking the most extended quarterly gains since 2021.
At the same time, the Nasdaq 100, which focuses on the technology sector, achieved a similar performance.
Market Outlook for the Fourth Quarter
Emily Bowersock Hill from Bowersock Capital Partners believes
that the bull market will remain strong until the end of the year,
driven by rising earnings, falling interest rates,
and continued consumer spending.
She expects the fourth quarter to resemble the third in terms of volatility but with a strong finish.
Bond Market and Rising Yields
After Powell’s statements, the US bond market trimmed its historic gains.
Treasury yields rose, with the two-year note being traded at 3.64%.
Nevertheless, US bonds returned 1.4% this month.
Future Challenges and Risks
While investors await further economic data to clarify expectations for interest rate cuts,
they must contend with several challenges,
such as rising tensions in the Middle East and potential strikes by US port workers.
Global Stock Movements
European stocks fell by 1% after Stellantis cut its profit margin forecast.
Meanwhile, Chinese stocks saw a significant rise, supported by an economic stimulus package.
The CSI 300 index jumped 9.1%, the most significant increase since 2008.
European stock markets await the European Central Bank’s decision:
European stock markets declined on Thursday as investors cautiously awaited news
from the recent meeting on policy settings by the European Central Bank.
The DAX index in Germany fell by 0.3%, the CAC 40 index in France decreased by 0.2%,
and the FTSE 100 index in the United Kingdom dropped by 0.2%.
Frankfurt will be the center of attention in Europe on Thursday,
as policymakers at the European Central Bank gather to make monetary decisions for the entire Eurozone.
While it is almost certain that the central bank will maintain interest rates at their current high levels in this meeting,
uncertainty remains about when officials will decide that inflation is no longer a concern
and they can begin cutting rates to stimulate growth in the region.
In this regard, press conferences following the meeting, to be held by President Christine Lagarde,
will be of particular importance.
Market expectations had initially pointed to an interest rate cut by April,
but they have diminished in recent weeks due to a decline in those strong expectations,
especially after the Eurozone’s consumer price index rose to 2.9% in December from 2.4% the previous month.
However, it is likely that the Eurozone may have experienced a recession in the last quarter of the previous year and a slow start in January,
making the current period the sixth consecutive quarter of widespread weak or negative growth.
The announcement of the German Economic Sentiment Index for January is scheduled to take place later in the session,
a day after the institute lowered its expectations for German economic growth in 2024.
European stock markets await the European Central Bank’s decision
The Largest Bank in Italy Joins Investors in SpaceX: Intesa’s Cosmic Investment
In a groundbreaking move that has sent shockwaves through the financial and aerospace industries, Italy’s largest bank, Intesa, has entered the realm of space investment. This exciting development coincides with SpaceX securing its first-ever contract with the U.S. Space Force and Elon Musk’s increasing involvement in the military sector. Join us on this cosmic journey as we explore these exciting developments and their implications for the future.
Italy’s financial giant, Intesa, has traditionally been associated with banking and financial services. However, the institution is now making waves by investing in the space sector. Let’s delve into the details.
The Galactic Vision of Intesa
Intesa’s foray into space investment is driven by its recognition of the space sector’s potential as a global growth driver. By investing in space technologies and exploration, Intesa is positioning itself for a future that extends beyond the Earth’s atmosphere.
SpaceX and the Cosmic Contract
SpaceX, the private aerospace manufacturer and space transportation company led by Elon Musk, has recently secured a groundbreaking contract with the U.S. Space Force.
Intesa’s investment aligns with SpaceX’s mission, making it a strategic partnership that promises remarkable advancements in the space sector.
The Veiled Investment: Intesa’s Mystery Capital
Intesa’s investment in SpaceX is undoubtedly significant, but the exact size of this cosmic capital remains undisclosed. This intrigue adds a layer of mystique to the bank’s involvement in the space sector.
Intesa’s decision to keep the investment size a secret has piqued the interest of industry experts and space enthusiasts alike. Could it be a sign of more significant investments in the future?
Musk’s Cosmic Shift: The Military Contractor
Elon Musk’s role in the space industry has evolved, and he’s now a prominent military contractor. This development carries immense significance for the future of space exploration.
Elon Musk’s involvement with the U.S. Space Force indicates the merging of space exploration and national defense, shaping the future of space technology in unprecedented ways.
Implications for Space Industry
The convergence of Intesa’s financial power, SpaceX’s innovative capabilities, and Elon Musk’s visionary leadership is poised to revolutionize the space sector.
The partnership between Intesa and SpaceX holds the promise of transformative advancements in space exploration, commerce, and technology.
Conclusion
Intesa’s investment in SpaceX and SpaceX’s collaboration with the U.S. Space Force signify a new chapter in the cosmos. As we look to the stars with optimism, the future of space exploration, commerce, and technology appears brighter than ever.
European equities have started the week on a cautiously optimistic note,
as investors eagerly await monetary decisions from three major central banks
The Federal Reserve, the European Central Bank (ECB), and the Bank of Japan (BOJ).
With a lack of major earnings or economic data on the horizon,
the focus has shifted to the potential impact of these central bank meetings.
In this article, we will delve into the upcoming central bank decisions and their implications for stock markets.
Specifically, we will explore the Federal Reserve’s meeting, the ECB’s rate increase, and the BOJ’s monetary policy.
Additionally, we will discuss UBS’s recent completion of the takeover of Credit Suisse
and the significant implications it holds for the banking sector.
Central bank decisions hold immense importance for global stock markets.
These decisions, which revolve around interest rates, monetary policy,
and economic outlook, have the potential to shape market sentiment and drive investor behavior.
Traders and market participants eagerly await the outcomes of these meetings
as they seek guidance on future market conditions.
Federal Reserve Meeting
The first central bank in focus is the Federal Reserve.
Currently, the U.S. central bank is expected to pause its year-long tightening cycle,
as officials assess the impact of the elevated interest rates, which have reached a 16-year high.
However, market participants remain cautious, as consumer inflation data is set to be released on Tuesday,
which could bring surprises and alter the Fed’s stance.
Recent surprises from the Reserve Bank of Australia and the Bank of Canada,
which unexpectedly raised interest rates last week, have increased uncertainty in the markets.
This serves as a reminder that surprises can occur even when expectations seem clear.
European Central Bank Meeting
Contrary to the Federal Reserve’s meeting, the European Central Bank has signaled that another rate increase is on the horizon.
Investors and analysts have already priced in this expectation,
and the meeting on Thursday is likely to confirm the decision.
The ECB’s move is a reflection of its efforts to combat inflationary pressures
and maintain price stability within the Eurozone.
Bank of Japan Meeting
The Bank of Japan is anticipated to maintain its ultra-loose monetary policy at the end of the week.
Intending to stimulate economic growth and battle deflationary forces,
the BOJ has consistently implemented measures to keep interest rates low and inject liquidity into the economy.
The market expects the BOJ to uphold this approach and provide stability to the Japanese financial system.
Market Expectations
As investors eagerly await the upcoming central bank decisions,
there are several key market expectations to consider.
These expectations revolve around the Federal Reserve’s tightening cycle,
potential surprises from consumer inflation data, certainty regarding the European Central Bank’s (ECB) rate increase,
and the Bank of Japan’s (BOJ) expected adherence to its ultra-loose monetary policy.
Pause in Tightening Cycle by the Federal Reserve
Market participants anticipate that the Federal Reserve will pause it’s tightening cycle.
After a year-long period of gradually raising interest rates, the Fed is expected to take a more cautious approach.
This pause is driven by the need to assess the impact of the already implemented rate hikes on the overall economy.
Investors will closely monitor the Fed’s statements and signals to gain insights into their future policy direction.
Potential Surprises from Consumer Inflation Data
While a pause in the Fed’s tightening cycle is expected,
there remains the possibility of surprises stemming from consumer inflation data.
The release of this data will provide crucial insights into the level of inflation in the economy.
Higher-than-anticipated inflation could prompt the Fed to reconsider its stance
and potentially signal a different course of action.
Investors will closely analyze this data for any unexpected deviations from projections.
Certainty Regarding the ECB’s Rate Increase
Unlike the potential uncertainty surrounding the Fed’s decision,
market expectations are more certain regarding the ECB’s rate increase.
The ECB has already provided signals indicating its intention to raise interest rates.
Investors have factored in this rate increase and anticipate its implementation.
The market will closely follow the ECB’s meeting for confirmation and further details on the rate hike,
which is aimed at maintaining price stability within the Eurozone.
The B OJ’s Expected Adherence to Ultra-Loose Monetary Policy
The Bank of Japan is expected to continue its ultra-loose monetary policy.
As a means to stimulate economic growth and combat deflationary pressures,
the BOJ has consistently pursued a policy of low-interest rates and ample liquidity in the financial system.
Investors anticipate that the BOJ will maintain this approach,
as it seeks to provide stability and support to the Japanese economy.
The market will closely monitor the BOJ’s meeting for any potential deviations from this expected policy stance.
In summary, market expectations regarding the upcoming central bank decisions
are centered around a pause in the Federal Reserve’s tightening cycle,
potential surprises from consumer inflation data, certainty regarding the ECB’s rate increase,
and the BOJ’s expected adherence to its ultra-loose monetary policy.
These expectations will shape investor sentiment and influence market dynamics in the coming period.
(European stocks trade higher)
UBS Completes Takeover of Credit Suisse
UBS, one of Switzerland’s leading financial institutions, has successfully completed its takeover of Credit Suisse,
a prominent rival in the banking industry.
This milestone marks a significant development in the Swiss financial landscape,
with far-reaching implications for both UBS and Credit Suisse.
Overview of UBS’s Takeover
The takeover by UBS signifies a strategic move aimed at consolidating its position in the market and expanding its market share.
UBS has long been recognized for its strong presence in the wealth management sector,
and this acquisition further solidifies its foothold in the industry.
Creation of a Giant Swiss Bank
The completion of the takeover has given rise to a new banking behemoth in Switzerland.
With the combination of UBS and Credit Suisse, a giant Swiss bank has emerged,
boasting a substantial balance sheet with assets totaling a staggering $1.6 trillion.
This substantial increase in scale brings about numerous advantages and opportunities for the newly formed entity.
Enhanced Wealth Management Capabilities
One significant aspect of the UBS and Credit Suisse merger is the augmented wealth management capabilities it offers.
UBS has a longstanding reputation for its expertise in wealth management,
catering to high-net-worth individuals and institutional clients.
By joining forces with Credit Suisse, UBS strengthens its wealth management division even further,
allowing it to provide an even more comprehensive range of tailored financial services to its discerning clientele.
This enhanced wealth management division will enable UBS to offer a broader array of investment opportunities,
personalized financial planning, and specialized advisory services.
Clients can expect a wealth management experience that is backed by the collective expertise
and resources of both UBS and Credit Suisse, resulting in an even higher level of service
and tailored solutions to meet their specific needs.
In conclusion, the completion of the takeover by UBS of Credit Suisse marks a significant milestone in the Swiss banking sector.
The creation of a giant Swiss bank with a formidable balance sheet
and enhanced wealth management capabilities position UBS as a dominant player in the industry.
Clients can look forward to an expanded range of wealth management services
and the expertise of a merged entity that is dedicated to helping them achieve their financial goals.
(European stocks trade higher)
FAQs
What are central bank decisions?
Central bank decisions refer to the choices made by the governing bodies
of central banks regarding monetary policy, interest rates, and economic outlook.
These decisions have a profound impact on financial markets and the overall economy.
How do central bank decisions affect stock markets?
Central bank decisions can influence stock markets by shaping investor sentiment
and market expectations.
Changes in interest rates and monetary policy can affect borrowing costs, inflation, and economic growth,
which in turn impacts stock prices and market dynamics.
What was the outcome of the UBS takeover of Credit Suisse?
The UBS takeover of Credit Suisse has been successfully completed,
resulting in the formation of a giant Swiss bank with a balance sheet of $1.6 trillion.
This acquisition strengthens UBS’s wealth management capabilities and solidifies its position in the banking industry.
How will the ECB’s rate increase impact the market?
The ECB’s rate increase is expected to have a positive impact on the market.
It reflects the ECB’s efforts to combat inflationary pressures and maintain price stability.
This decision can instill confidence in investors and support economic growth in the Eurozone.
What is the significance of wealth management in the banking sector?
Wealth management plays a crucial role in the banking sector as it involves providing specialized financial services and advice to high-net-worth individuals and institutions. It helps clients manage their assets, plan for the future, and achieve their financial goals.
How to Invest in Porsche Stocks, Porsche is a German automotive brand founded in 1930 by Ferdinand Porsche.
The company’s first car, the Type 356, was launched in 1948.
Porsche has since become known for its sports cars, SUVs, and sedans.
Today, the company is one of the most successful automakers in the world.
Porsche’s story begins with Ferdinand Porsche, an Austrian engineer who started his design studio in 1930.
Among his earliest clients was Daimler-Benz AG, which commissioned him to develop a new racecar engine.
When Ferdinand Porsche left Austro-Daimler in 1928, he took with him the knowledge of how to develop a high-performance engine.
This led to the development of the Type 360 Cisitalia Grand Prix racecar engine and ultimately to Porsche being hired as chief engineer at Daimler-Benz AG in 1931.
Porsche’s experience with developing high-performance engines was invaluable to Daimler-Benz,
and this expertise helped them create some of the most iconic cars ever made.
The Mercedes-Benz 300SL “Gullwing” is just one example of a car that wouldn’t have been possible without Porsche’s engineering prowess.
So, if you’re an investor or trader looking for opportunities in the automotive sector, keep an eye on companies like Daimler-Benz that can draw on world-class engineering talent like Ferdinand Porsche.
In 1934, Ferdinand Porsche left Daimler-Benz AG to focus on his own business again full-time; he established Dr.-Ing hc Fuhrmann und Kompanie
(later renamed “Dr.-Ing hcFuhrmann & Cie., Konstruktionen und Beratung für Motoren und Fahrzeuge GmbH”).
That same year saw the birth of what would become one of Germany’s most iconic automobiles, the Volkswagen Beetle was designed under Ferdinand Porsche’s direction (though not built by him).
Porsche is best known for its line of sports cars, which are some of the most exclusive and expensive cars in the world.
The company also produces a line of high-performance SUVs (the Cayenne and Macan) as well as sedans (the Panamera).
Porsche also has a motorsport division that competes in various racing series around the world, most notably 24 Hours of Le Man’s endurance race, the World Endurance Championship, and the IMSA Weather Tech SportsCar Championship.
Porsche AG Public Offering
Porsche AG had its initial public offering (IPO) in Frankfurt on Thursday, September 29, 2022.
After establishing an IPO price of EUR82.50 at the top end of its goal range, the firm went public with a value of EUR75.2 billion.
This enabled it to produce over EUR9.2 billion for its owner Volkswagen Group, making it one of the biggest IPOs in both Germany and Europe.
Analysts projected that when Volkswagen first revealed that it was exploring an IPO for Porsche AG in 2020, the sports car maker may seek a valuation of up to EUR90 billion.
Nonetheless, as market circumstances worsened in 2021 and early 2022, this figure plummeted.
Interestingly, several believed that the IPO valuation was excessive.
HSBC estimated the company’s value to be between EUR44.5 billion and EUR56.9 billion two weeks before the IPO.
However, it is important to note that even at the high end of this range, Porsche AG would still be valued at a significant discount to its German peer BMW (which has a market capitalization of over EUR70 billion).
Porsche Strategy 2030
This may reflect concerns about how much independence Porsche AG will eventually have given that it will continue to be controlled by current shareholders after listing and will share its CEO with Volkswagen.
Porsche is a world-renowned car brand that offers six main models, many of which come in different variations.
The company manufactured over 300,000 vehicles in 2021 alone an all-time high following a steady increase in output in recent years.
The automotive industry is changing dramatically, and Porsche is ready for it with its Porsche Strategy 2030.
The purpose of this strategy is to keep the firm relevant and competitive in the face of these developments, whether they are related to the transition to electric cars or the ongoing trend toward autonomous driving.
Porsche has already made significant progress in each of these areas.
In terms of electric cars, it has created the Taycan, an all-electric sports car with outstanding performance and range.
In terms of autonomous driving, Porsche has been developing technology that will allow its vehicles to drive themselves in specific conditions, such as highway cruising or parking.
Markets welcome a new week full of European and American data.
Pressures continue and impose themselves on the European Central Bank
due to inflation approaching a record level,
according to surveys that indicate less than the 10% level,
at a time when the Central Bank is not seeking to tighten to raise interest rates further,
and expectations also indicated an increase in interest rates.
The consumer price index reached 9.7%,
and the markets are about to announce a very important report next Friday,
which is the inflation report for the eurozone after the announcement
of some reports issued by the three largest economies in the European continent,
in addition to an assessment of the sentiment of some companies in the region.
Previously, the European Central Bank found an incentive
to move towards a tight monetary policy during the last two meetings.
Will the next decision lead to a further rise in interest rates by the Central Bank?
This is what will be announced in the next decision within a month,
and this comes in light of the presidential elections in Italy on Sunday,
which is the main focus of European Central President Chris Lagarde’s
speech at the testimony session tomorrow in Brussels.
US economic data
This week is witnessing a set of strong data that has a direct impact
on the American economy, which will end next Friday with the personal income
and spending report for August.
Very important in determining whether the pace of economic growth
in the third quarter of the year has made progress or not,
while income data shows insight into the financial strength of consumers,
it also includes a set of dialogues that will be exchanged between officials of the Federal Reserve regarding the recent interest rate hike,
at a time when expectations indicate more hikes
to face the specter of persistent inflation.
Asia
After the Japanese central bank decides to stick to low-interest rates last week,
the focus is now on the government’s position in the face of the weak yen’s intervention,
while in China, the markets are awaiting the PMIs to assess the recovery and
whether there was a clear improvement in September or is it still in a faltering stage.
Germany seeks to obtain gas and fuel from the Gulf in the context of diversifying energy sources.
Germany’s plan to confront the gas and energy crisis with the advent of winter,
as well as suffering from the repercussions of the Russian war on Ukraine,
which increased the suffering of the largest economy in Europe,
so it seeks with all its energy to solve the problem from
its roots so as not to be under pressure again,
through diversifying energy sources In this context, German Chancellor Olaf Scholz revealed that the talks between Germany
and the Arab Gulf states have reached advanced stages and
are approaching the final agreement for the purchase of gas.
Concerns for industrial companies in Europe
In light of this current energy crisis, giant industrial companies in Europe
have been suffering from a shortage of gas for months,
which in turn was reflected in production, which declined significantly,
and currently, the European dollar pays 7 times what the United States pays for gas,
and this reflects the weakness The European economy in the face of other economic
forces if the problem is not resolved as soon as possible,
and at the level of Germany, producer prices jumped in August by about 46%
Like Germany, Britain seeks to secure the long-term for its energy needs
Before the crisis reaches its full consequences with the advent of winter,
Britain is seeking to solve the gas shortage problem
by relying on American liquefied natural gas,
and this comes at a time when most European countries
are trying to store natural gas before winter,
and also diversify in energy sources, In the long run,
Britain’s problem is less because it does not depend on Russian gas imports,
but depends primarily on its domestic production,
in addition to its supplies from Norway.
And this has not yet been announced by governments about any quantities that
the United Kingdom wants, but at the same time it seeks to buy LNG in the United States,
provided that the process is done with a prior agreement on the port
and also that the shipment will be delivered to a specific buyer and
also be delivered in a position is determined before
artical name Markets welcome a new week full of data.
Will the Bank of Japan keep the world’s only negative interest rates?
A hot tin week awaits investors because of the very important decisions
of central banks around the world, about interest rates,
which is what central banks, including the Federal Reserve,
seeking to raise again in interest rates to confront high inflation,
but in light of this still, The Bank of Japan adheres to the current position
and maintains negative interest, which is currently the only one in the world,
and the meeting that ends next Thursday,
which coincides with the interest rate decision issued by
the Federal Reserve in a few hours on the same day,
and which intends to raise to 75 new basis points,
which is the third increase in interest rates. straight so far
The easing that Japan is heading to may cause more weakness in the yen currency,
at a time when policymakers sought to intervene quickly to save the yen,
which is currently trading against the US dollar near its lowest levels in the last 24 years,
and this is what officials confirmed that they Ready to intervene
at any time if necessary and will interfere at any time,
and the Bank of Japan sees that the weakness of
the yen is considered positive for the general economy in general,
and therefore investors find themselves confused between
the easing position in addition to the severe warnings
from currency officials inside Japan
This stated, “Kuroda” that the goal of reducing the value of
the yen needs to raise interest rates largely and exaggeratedly,
and added that raising interest rates only through sustainable inflation,
and therefore Japan at present needs more growth in wages.
Does the surprise happen?
So far, all indicators point to the steadfastness of the Bank of Japan’s
position to maintain interest rates at their current levels and perhaps lower.
Economists’ expectations indicate
that the Bank of Japan will end the last
part of the financing process to combat Covid,
and this is strongly reflected in the Bank’s tone that
links the epidemic and policy decisions And
that any firm indication of the end of the restrictions related to the epidemic
will open the way for the bank to change its orientations. Still,
expectations also indicate that there will be no change in interest rates.
Markets are preparing for new expected rate increases of about 0.75% from the Bank of England twice during 2022.
First, and as we have been used to in the past weeks, Thursday is the day of decisions and violent statements.
It is expected by most traders and analysts in the financial markets
that this Thursday will be the beginning of a
new brightness for the euro area and the pound,
with some turmoil in the markets in this regard,
they explain This matter is as follows after the pressure on the region to which
the region is exposed due to the energy crisis, the matter has become out of control,
not to mention the unemployment crisis and other crises,
the idea of raising the market to 200 basis points has become a reality,
not speculation or expectation.
Once the next three bank meeting is held,
the Bank of England is expected to raise interest rates by
three-quarters of a point in two of those meetings.
It is expected that it will be about 60% during this week,
as we mentioned at the beginning,
which allows increasing by 75 basis points,
and it is worth mentioning that this rate of raising interest did not occur since 1989
after raising borrowing costs by a full percentage point.
What are the pressures that England is going through to make concessions of this terrifying size?
First, as we mentioned (the energy crisis),
where fears have increased that Russia will reduce its gas supply until
the rise in energy prices in the United Kingdom and Europe,
which awaits it to take more serious decisions to deal
with the rise in consumer prices to 9.9,
in August this year.
It is worth noting that it was not only the Bank of England
that was forced to raise interest rates, the European Central Bank also raised interest rates
by 75 basis points at the same pace in September,
and this was during only two meetings, and it is expected that
the Federal Reserve will make another
increase at the meeting The next day is on Wednesday,
and the odds are about 12% that it will
be able to raise prices by one full basis point.
But the Bank of England rate hike is also expected to take a reverse trend
after the Bank of England raised interest rates to their peak by mid-2023,
and analysts expect the market to move around
14 basis points by the end of next year.
The deterioration of inflation is the biggest reason for all these events.
Where said Imogen Bachra, a financial analyst for interest
rates at the Bank of England International. The Bank of England is very concerned about
the high inflation these times,
which prompts it to address this,
even if it costs it to record more modest growth than before.
This was evident in the downward transformation of the Bank of England’s
decision made at the last August meeting of this year.
The next consolidation must mean a more
aggressive reaction than the previous one
despite the basic case supported by Imogen,
which is that the solution is the Bank of England’s
choice to raise prices by 50 basis points during this week. Until the matter becomes clearer between our eyes,
we find that the tightening that the financial markets are taking
now means that the main interest will
be raised by about 3.75% by the end of this year,
by 4.5% by next March, or approximately 80 basis points,
which was a joke for about one month,
which means Things are getting worse than expected and
more than containing the decisions of the banks.
The European Central Bank is about to raise interest rates in the coming months
European Central Bank President Christine Lagarde said during
her speech on Tuesday that the cost of borrowing may
witness a new rise in the coming months of this year.
There is still a dispute between the officials in charge of monetary
policy in the European Central over the plan that
will be developed to follow the Fed’s footsteps and try to raise
the news by about 75 basis points during this month,
and that it is in the process of more decisive measures to curb high inflation,
but at present it is not clear A vision yet for the best interest rate level
at a time when energy costs are rising due to European sanctions on Russia
Lagarde has always emphasized the need to take action,
but this will depend primarily on the indicators of the economy,
and she also said that the level of interest rates that she will reach
and any developments will depend mainly on inflation expectations.
She also pointed out that the high inflation in Europe is not affected
by the increase in demand in the United States, and that facing the risks,
high prices and wages, needs time and added
that the current relative stability in inflation rates
was due to some measures
and it is not wise to accept the matter in this way.
artical name Will the Bank of Japan keep the world’s ?
Oil soars as European stock futures rise while Asian stocks decline
Oil prices rose on Wednesday,
rebounding after heavy losses in the previous session on signs of strong fuel
demand in the United States, and Chinese and Hong Kong stocks decline,
while European stock futures rose.
Oil prices rebounded slightly on Wednesday as data pointed
to strong fuel demand in the United States,
providing relief after a 5 percent fall a day earlier due to concern over the suffering of demand
caused by China’s growing COVID-19 restrictions and a central bank hike in interest rates.
US WestTexas Intermediate (WTI) crude futures jumped by 85 cents,
or 0.9%, to $92.49 per barrel at 0456 GMT after falling by $5.37 in the previous session,
prompted by concern over a recession.
Brent crudefutures for October, due to end on Wednesday,
rose by 70 cents, or 0.7 percent, to $100.01 per barrel,
trimming Tuesday’s loss of $5.78.
The most active futures contract for November rose by 93 cents,
or 1 percent, to $98.77 per barrel.
Price volatility since the start of the conflict in Ukraine six months ago has negatively affected
hedge funds and speculators and declined trading,
which in turn has led to the market falling further, as seen on Tuesday.
In support of market sentiment on Wednesday
data from the American Petroleum Institute (API)
showed gasoline inventories fell by about 3.4 million barrels,
while distillate inventories, including diesel and aviation fuel,
fell by about 1.7 million barrels for the week ending August 26.
American Petroleum Institute data showed
crude inventories rose by about 593 thousand barrels,
against analysts’ estimates of a decline of about 1.5 million barrels.
The weakness of the United States dollar has also boosted the market,
thus becoming cheaper for buyers with other currencies.
Price gains have been curbed by concern that some of China’s largest cities
– from Shenzhen to Dalian, are imposing lockdowns
and business closures to curb COVID-19 at a time
when the world’s second-largest economy is already experiencing weak growth.
The main factor supporting prices at present is the talk of members
of the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC +),
that they may reduce production to stabilize the market,
and OPEC + is scheduled to meet on September 5.
artical name Oil soars as European stock futures rise
Chinese and Hong Kong stocks plunged by automakers
Chinese and Hong Kong stocks slid Wednesday,
declining by major automakers after Warren Buffett’s Berkshire Hathaway
(NYSE: BRKa) cut its stake in BYD,
while broader Asian markets were mixed amid uncertainty over US monetary policy.
Hong Kong’s Hang Seng fell by 0.2 percent,
with BYD Co HK:1211 falling nearly 10 percent
after a statement showed Berkshire Hathaway
had narrowed its stake in the company.
China’s Shanghai Shenzhen CSI 300 index declined by 0.6 percent,
while the Shanghai Composite index lost 1.2 percent.
Sentiment toward China also fell through data showing the country’s
manufacturing sector shrank for the second consecutive month in August,
but the pace of its contraction was slightly lower than expected.
The broader Asian markets were mixed on Wednesday as concern
grew over higher US interest rates,
following stronger-than-expected US overnight employment data.
In Asia, Japan’s Nikkei 225 index fell by 0.5 percent,
while Taiwanese stocks rose by 0.8 percent, rebounding from a four-week low.
artical name Oil soars as European stock futures rise
European stock futures rise
European stock markets are expected to rise at the opening on Wednesday,
as investors absorb the latest Chinese manufacturing activity data
ahead of the eurozone’s major inflation release.
At 02:00 GMT, Germany’s DAX futures rose by 0.7 percent,
France’s CAC 40 futures rose by 0.4 percent and
the UK’s FTSE 100 futures index rose by 0.3 percent.
The official manufacturing PMI was at 49.4 for August,
while this was below 50 indicating a contraction in the sector,
it is still an improvement from 49.0 in July.
This is likely to make the start of the day positive in Europe,
although the focus is likely to be on issuing the latest consumer price index in the eurozone.
The European inflation, which hit a record high of 9 percent in August,
is expected to show further pressure on the European Central Bank
to raise interest rates strongly next month.
Gas prices
in Europe fell below record highs,
but this could be a temporary measure as Russia halted
the flow of gas along the Nord Stream pipeline to Germany,
for the second time in several months.
The EU is on track to meet targets for filling up gas inventory,
but analysts warn that the biggest factor for energy security
this winter is whether countries can cut consumption enough to ensure
that the fuel stored continues through cooler months.
After scrambling for fuel during the summer following Russia’s invasion of Ukraine,
Europe’s largest gas supplier, Europe’s gas inventory is now 79.94 percent full,
according to gas infrastructure data in Europe,
leading countries to exceed their target of having 80 percent full storage by November.
In addition, gold futures fell to $1735.90 per ounce,
while the euro traded against the US dollar 0.2 percent higher at 1.0034.
artical name Oil soars as European stock futures rise
European emergency plan goes into effect to face possible Russian gas outage.
Europe had previously drawn up a plan in order
to face the specter of Russian gas interruption
due to the sanctions imposed on Russia for its war on Ukraine,
and now Europe is preparing to implement its plan,
according to what was published in the official newspaper of the European Union on Monday,
and this comes after a statement by a German government spokesman ,
that they ruled out the decision to approve
the currently suspended Russian Nord Stream 2 natural gas pipeline.
The European Commission calls for the unity of the Union
and work to reduce gas consumption by about 15%
at a time of high gas prices and an increase in inflation rates.
Germany is the first European country to suffer from the gas crisis.
The difficulties regarding the operation of the natural gas pipeline coming from Russia, Nord Stream 2, are still largely ongoing,
and Germany believes that it must deal with this reality quickly.
German officials said that their country in the coming months
will be facing the reduction in natural gas supplies,
despite this, Germany intends to stand firmly by Ukraine,
and will work to implement the economic sanctions signed on Russia,
and there is no intention to reverse this decision in light of a marked rise in electricity bills.
Germany’s plan is to solve the crisis.
First, it must rationalize consumption and provide at least 20% of energy consumption.
German Chancellor Mueller added that
his country should reduce its gas exports by 20% to neighboring countries,
and work to import between 10 to 15 gigawatts. An hour of gas to meet the shortage.
Natural gas prices are rising.
For the third time during the past week,
as a result of fears of an interruption in supplies of Russian gas, prices rose again, and according to expectations,
the current rise in gas prices will continue for a while,
and within the framework of the plan, European countries seek to try to fill the reservoirs with about 71% of their capacity
in order to meet the expected deficit in Winter.
Gas futures rose by 5.9% during the past week,
which caused an increase in prices after Russia’s decision to reduce gas supplies
that pass through the main Stream pipeline to 20% of its capacity.
artical name European emergency plan goes into effect
China’s exports rise more than expected jump 18% in July.
Based on customs data that appeared on Sunday,
Chinese exports rose by about 18% in July, after they had achieved 17.9% in June,
at a time when imports rose 2.3% less than expected, which was 3.7%.
And China was able to record a surplus of its foreign trade by about 101 billion dollars in the month of July, compared to expectations that were indicating 90 billion dollars for the surplus.
The Chinese economy is currently indicating improvement with the easing of special restrictions to combat the Corona epidemic,
which is a good indicator for the global economy,
given that China is the second largest economy in the world,
and the second largest consumer of oil.
The Chinese economy contracted during the second quarter due to fears of closures,
but China is still striving to avoid any cases of coronavirus infection,
which will remain a top priority.
And the Chinese economy achieved slower growth two years ago by about 0.4%
on an annual basis during the second quarter due to its health restrictions. Since 2020, China has followed the “zero Covid” policy,
which is to try to avoid any new infections, and these measures had a negative impact on the Chinese economy,
which Many companies and factories were forced to stop their operations and put pressure on supply chains.
China imports from Russia
In light of Russia’s war on Ukraine and the tense situation
as a result of European sanctions imposed on Russia, the growth of Chinese imports from Russia maintained its high level,
reaching 49% in July, despite declines of 56% in June and 79% in May.
Russia is the main exporter of oil, gas, coal and agricultural commodities to China,
and Chinese buyers have benefited by reaping supplies at low prices.
Russian oil supplies to China fell by 21.3 million barrels in July,
the lowest level since February
According to the data of the General Administration of Chinese Customs issued in April of this year,
the volume of trade exchange between China and Russia reached
a significant increase during the first quarter of 2022,
as it increased by 28.7% compared to the same period of the previous year,
and thus the volume of trade exchange reached to $38.17 billion
artical name European emergency plan goes into effect
“Google” services return to work after a malfunction And “WhatsApp adds a new feature And the share of “Twitter” is rising
Google services are down for thousands of users
According to a report by the Downdetector website,
which is interested in monitoring outages in Internet services around the world,
a disruption in the services of the Google search engine was noticed,
and this holiday affected thousands of users on Monday
According to the site, it received reports from more than 40,000 people
that they encountered a problem in accessing the Google search engine owned by Alphabet.
It did not receive any response to a request from Reuters for comment on the matter.
Google services back to work
After the outage that began on Monday and into the beginning of Tuesday,
Google said in a statement: We are aware of a software update issue that occurred today and
briefly affected the availability of Google Search and Maps, and we apologize for the inconvenience.
Services were down in countries such as the US, Australia, UK and Singapore.
A new feature in “WhatsApp” allows the user to exit groups without alerting members
As part of the developments that WhatsApp is making in order to satisfy users,
it has added a new feature that allows users to leave any group without warning the members of this group,
and only those responsible for these groups will be notified,
now the feature is being worked on and is expected to be implemented within a month of Now
And the CEO of “Meta” and the owner of “WhatsApp” – “Mark Zuckerberg”:
that the company continues to build new ways to protect your messages and keep them private
and secure such as face-to-face conversations
It is also currently working on testing the
“disable screen capture” feature for self-hide messages,
which allows the receiver to open them only once.
Twitter’s stock rises after Musk’s comments
During Monday’s sessions, “Elon Musk” the possibility
of executing the Twitter acquisition deal in the event
that the evaluations of fake accounts are proven to be true
Musk sets this condition, which is that if Twitter is able to provide evidence and take random
samples from 100 accounts and confirm that they are all real accounts,
this condition will make me complete the purchase transaction based on the original terms
He also indicated in his tweet: that he had been tricked into signing
the deal to buy the social media company,
saying that it was allegations “unbelievable and contrary to the truth.”
With this positive news, Twitter’s stock rose to $42.94, by about 1%,
after recording a price of $43.50 during the session on Monday.
artical name European emergency plan goes into effect
