7 Mins Ago
Kretschmer: EU chips act will allow Europe to regain competitiveness in the electronics market
Michael Kretschmer, the state premier of Saxony, says the EU can no longer focus only on its own internal market.
49 Mins Ago
Stocks on the move: UniCredit up, BNP Paribas choppy
Shares of Milan-based UniCredit were up 6.6% at 8:47 a.m. London time as investors pored over its first-quarter results, which showed net revenue growth of 56.5% and an estimates beat on net interest income.
The bank also revised up its full-year guidance and raised the amount it expects to pay out to investors.
UniCredit share price.
France’s BNP Paribas moved from a narrow loss to a 0.25% gain following its own results, despite a doubling of year-on-year profit and outperformance in revenue.
BNP Paribas CFO Lars Machenil told CNBC the results showed a “solid balance sheet” and would form a bedrock for future growth.
The European banking sector climbed 1.06% despite Tuesday’s sell-off of U.S. regional banks.
BNP Paribas share price.
An Hour Ago
UK regulator proposes London listing reform
The offices of London Stock Exchange Group Plc in Paternoster Square in the City of London, UK, on Tuesday, March 14, 2023.
Bloomberg | Bloomberg | Getty Images
Britain’s stock market rules could be radically simplified as part of efforts to lure major company listings to London, under detailed plans unveiled by the country’s financial watchdog.
The Financial Conduct Authority has proposed replacing Britain’s existing ‘premium’ and ‘standard’ listing segments with a single category, as part of a package of reforms designed to simplify the country’s listings rulebook.
“We want to encourage more companies to list and grow in the UK, versus other highly competitive international markets,” said FCA chief executive Nikhil Rathi.
2 Hours Ago
European consumer sentiment becoming more positive, says Pandora CEO
Danish jewelry maker Pandora reported sales growth of 1% in the first quarter, better than an analyst consensus of -1%, as its EBIT margin fell from 23% to 21.1%.
“If you consider the macro economic backdrop, the consumer sentiment, the recessionary fears … we know that the jewelry market is actually in a negative place. Whereas we keep posting positive numbers. That’s why we think it’s a pretty good outcome,” CEO Alexander Lacik told CNBC’s “Squawk Box Europe.”
Consumer sentiment was broadly unchanged from last year, he said, though Europeans were beginning to be more optimistic than U.S. shoppers.
“On balance, I think, what we are still looking at is a quite uncertain future,” Lacik said.
Pandora share price.
2 Hours Ago
BNP Paribas doubles profit in first quarter
French bank BNP Paribas saw its profits more than double in the first quarter.
CNBC’s Charlotte Reed speaks to BNP Paribas CFO Lars Machenil.
8 Hours Ago
CNBC Pro: This global commercial real-estate stock is set to rise by 60%, Jefferies says
Jefferies expects shares of a global commercial real-estate stock to rise by more than 60% over the next 12 months.
The investment bank’s prediction comes at a time when the global commercial real estate market has seen prices fall sharply over the past year.
However, the property firm is expected to escape the downturn as it nearly doubled the rent it charged its tenants, and office-space vacancy in the region it targets fell last year.
CNBC Pro subscribers can read more here.
— Ganesh Rao
10 Hours Ago
A mild recession won’t trigger a quick Federal Reserve response, BofA says
Maybe Monday’s stock market slide shows investors are finally tempering their optimism that the Federal Reserve will cut interest rates later this year to counterbalance an economic slowdown.
“[T]he markets may be too optimistic about how easy it is going to be to bring inflation back to target and will be surprised when the Fed does not cut rates in the face of a mild recession, Bank of America global economist Ethan Harris wrote in a note to clients before markets opened Monday.
Simply put, investors have bid up stocks since mid-March on a belief that the Fed will pivot policy, and cut rates by half a percentage point in reaction a shallow recession, BofA said.
Unfortunately, the bank says such hopes will be dashed. “We see four risks this summer: an ugly debt ceiling battle, a significant tightening of bank credit, a geo-political event and disappointingly hawkish central banks. The plan for many central banks, in our view, is to raise rates into modestly restrictive territory and then hold them there to finish the job of bringing inflation back to target. Hence a mild recession in the US—and flat growth in other major economies—will not trigger an immediate policy response,” Harris wrote.
— Scott Schnipper
8 Hours Ago
CNBC Pro: As lithium prices bounce, analysts love these stocks — giving one 155% upside
Prices of lithium, a key material used in electric vehicle batteries, have rebounded for the first time in months.
Analysts were generally bullish on the sector in the long term.
For investors looking to play the EV-related sector, CNBC screened for lithium and battery stocks with buy ratings from over 70% of analysts covering them, and average price target upside of at least 15%.
CNBC Pro subscribers can read more here.
— Weizhen Tan
14 Hours Ago
‘March returns in May,’ says Goldman Sachs
Goldman Sachs says investors haven’t fully moved past March’s bank crisis as banking stocks trade lower on Tuesday. The firm’s analysts noted that following the failures of Silicon Valley Bank and Signature Bank in March, the market’s worries were quickly alleviated by a deposit injection at First Republic Bank.
“Since bottoming out at 3808 on Mar. 13, the S&P 5000 gained almost 10% [as of] Monday night on the back of relaxed banks tensions, as well as a strong earnings season (so far) and a growing consensus that the Fed will soon pause its year-long rate hiking cycle,” several Goldman analysts wrote in a Tuesday note.
“But today, we appear to be seeing some return of the March concerns following JPM’s announced acquisition of FRC Monday. Regional bank stocks are down 4% to 13%. [Managing director Richard] Ramsden sees the JPM acquisition as accretive and points out that the transaction highlights that G-SIBs will be allowed to bid on FDIC transactions even if they are above the deposit cap,” the note continued.
— Hakyung Kim
17 Hours Ago
Former Fed official Rosengren advocates no rate hike
Eric Rosengren thinks his former colleagues at the Federal Reserve will be making a mistake if they raise interest rates again Wednesday.
The former Boston Fed president, who retired from the board in September 2021, told CNBC on Tuesday that turmoil in the banking industry and an economic slowdown should push policymakers to end the rate-hiking campaign that began in March 2022.
“My own view is that the economy is quite likely to slow down in the second half of the year and that it’s not necessary at this point to be raising rates until we get a better view of what the second half of the year looks like,” Rosengren said on “Squawk Box.”
Traders in the futures market are pricing in a 96% chance that the Federal Open Market Committee approves a quarter percentage point rate hike when the two-day meeting ends, according to the CME Group’s FedWatch tracker.
4 Hours Ago
European markets: Here are the opening calls
European markets are heading for a higher open Wednesday ahead of the U.S. Federal Reserve’s monetary policy decision.
The U.K.’s FTSE 100 index is expected to open 22 points higher at 7,792, Germany’s DAX 58 points higher at 15,771, France’s CAC up 36 points at 7,408 and Italy’s FTSE MIB 81 points higher at 26,501, according to data from IG.
Earnings are set to come from Lloyds Banking Group, Aston Martin Lagonda, BNP, Airbus, Stellantis, Deutsche Post DHL and Lufthansa. The unemployment reading for the euro zone in March is also due.
— Holly Ellyatt