12 minutes ago
The European Central Bank raises interest rates to 3.5% and revises inflation expectations
The European Central Bank raised interest rates by 25 basis points, to 3.5%.
The increase is in line with expectations, as the Bank continues to tackle viscous inflation across the Eurozone.
Headline inflation forecasts have also been revised, with the core figure now expected to average 5.4% in 2023, 3% in 2024 and 2.2% in 2025, according to Eurosystem data, which means that the central bank is now not expecting to reach to the target rate of 2% before 2026.
– Hannah Ward Glinton
one hour ago
HSBC downgrades the UK market, describing it as a “limb” within Europe
HSBC downgraded British Markets to below neutral weight, according to a note from the British bank.
Its analysts described the UK as a “handicap” within Europe with its stocks under particular pressure compared to other countries.
HSBC writes that the FTSE 350 is among the worst performing indices in developed markets, and it expects earnings to fall around 2% in 2023.
HSBC listed service sector inflation pressures, viscous core inflation and policy rates that were far from peaking as reasons for the downgrade.
The bank also downgraded France and Spain (from overweight to underweight and from overweight to neutral, respectively), while Switzerland and Sweden were upgraded (from overweight to overweight and from neutral to overweight, respectively).
— CNBC’s Michael Blum contributed to this report.
one hour ago
Macron: I think we need global regulation on AI
French President Emmanuel Macron told CNBC reporter Karen Tsou on the sidelines of the conference: “In my view… I think we need a regulation and all players, even American players, agree with that. I think we need a global regulation.” VivaTech conference in Paris.
4 hours ago
H&M rose 6% despite weaker-than-expected sales in the second quarter
H&M shares led the Stoxx 600, up 6.7%, despite weaker-than-expected second-quarter sales.
see chart…
H&M stock price.
Net sales increased by 6% for the second quarter, compared to the same period in the previous year, which the fashion group attributed to unfavorable weather conditions.
The Swedish company said that June is “off to a good start.”
– Hannah Ward Glinton
5 hours ago
Siemens to spend $ 2.2 billion to increase global production
Siemens announced in a press release that it will spend two billion euros ($2.2 billion) on boosting its global growth.
The investment will go towards new high-tech factories, innovation labs and education centers as the German manufacturing company aims to become a bigger player in digitization, automation and sustainability.
Siemens will start with investments in Germany and the United States, and then look to expand its production, research and development capabilities across Asia.
Siemens shares rose 0.2% after the announcement.
– Hannah Ward Glinton
8 hours ago
CNBC Pro: Is it too late to join the market rally? Morgan Stanley’s Slimmon weighs the stocks and picks which ones to buy
18 hours ago
See what changed in the Fed statement
Click here to see a comparison of the Fed’s June statement with the May statement.
– Alex Haring
18 hours ago
Stocks fall after the Fed signaled that more rate hikes are coming
The S&P 500 and Nasdaq Composite gave up earlier gains and turned negative shortly after the central bank signaled that despite pausing a June rally, the “dot chart” showed two more increases coming.
The S&P 500 fell 0.6%, while the Nasdaq fell 0.7%. The Dow Jones Industrial Average lost more than 400 points, or about 1.2%.
–Darla Mercado
12 hours ago
CNBC Pro: Apple Vision Pro or Meta Quest? Analysts dive into the future of virtual reality technology
Apple and the Meta are both banking on virtual reality technology to be the next big thing in consumer electronics, but it seems the jury is still out on which company has the right strategy.
Apple’s recent announcement of the Vision Pro headset, priced at $3,499, drew its fair share of criticism, but Jefferies equity analyst Andrew Urkowitz doesn’t see the huge amount as wrong.
Meanwhile, DA Davidson’s Tom Forte Meta Platforms’ Quest 3 benefits from Apple’s momentum.
CNBC Pro subscribers can read more here.
– Ganesh Rao
8 hours ago
European Markets: Below are the opening calls
European markets are heading for a negative open as investors prepare for the latest monetary policy decision from the European Central Bank.
Britain’s FTSE 100 is expected to open 29 points lower at 7,582, Germany’s DAX 36 points lower at 16,281, France’s CAC 26 points lower at 7,305, and Italy’s FTSE MIB 74 points lower at 27,719, according to data from IG.
Profits are to come from the Halfords; boho. Fuller, Smith and Turner; and H&M. Data releases include French inflation figures for May.
– Holly Ellytt
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