British pound falls after Bank of England bond market intervention
The pound fell 1.4% against the dollar on Wednesday, falling below $1.06 after the Bank of England intervened in the UK bond market to calm recent market turmoil unleashed by the new government’s so-called ‘mini-budget’ I was.
The bank said on Wednesday that it would suspend the start of next week’s gold coin sales until Oct. 31 and temporarily start buying long-term bonds until Oct. 14, under an emergency program backed by the UK Treasury. did.
– Elliott Smith
All Indicators Going Wrong: WTO Heads
World Trade Organization (WTO) Secretary-General Ngozio Konjo-Iweala speaks at the Clinton Global Initiative (CGI) Annual Meeting in New York, Monday, September 19, 2022. WTO Director General Ngozi Okonjo Iaweala said in Geneva, according to the Associated Press.
Michael Nagle | Bloomberg | Bloomberg | Getty Images
The global economy has slowed significantly and may be headed for recession, World Trade Organization Executive Director Ngozi Okonjo-Iweala told CNBC’s Julianna Tatelbaum.
“I worry that all the indicators are going in the wrong direction,” Okonjo Iweala said at a WTO event in Geneva.
She referred to recent downgrades of global economic growth forecasts by the IMF, World Bank and OECD. She added that the cooling in purchasing managers’ indicators and the fall in ocean freight rates “could be a decline in demand that points to something not right.”
— Jenny Reid
EU pledges strong response to alleged Nord Stream gas pipeline sabotage
BORNHOLM, DENMARK – SEPTEMBER 27: Danish Defense shows a gas leak on Nord Stream 2 as seen from a Danish F-16 interceptor in Bornholm, Denmark on September 27, 2022.
Danish Defense/ | Anadolu Agency | Getty Images
The European Union has pledged a “resolute and united response” to alleged sabotage after a mysterious gas leak in two of Russia’s undersea gas pipelines.
“All available information indicates that these leaks were the result of deliberate acts,” EU foreign policy chief Josep Borrell said in a statement.
“We support investigations aimed at establishing a full picture of what happened and why, and take further steps to increase the resilience of our energy security. is totally unacceptable and requires a strong and united response,” he added.
Here’s the full story.
— Sam Meredith
Bank of England postpones bond sales, launches temporary buying program after market turmoil
LONDON, FEBRUARY 3: Bank of England Governor Andrew Bailey resigns after a press conference at the Bank of England on February 3, 2022 in London, England. Banks are expected to raise interest rates at their fifth consecutive meeting on Thursday, but face a tough balance between supporting growth and keeping inflation under control.
Dan Kitwood | Getty Images News | Getty Images
The Bank of England will suspend the planned opening of gold coin sales next week and temporarily begin buying long-term bonds to calm market turmoil unleashed by the new government’s so-called ‘mini-budget’. .
UK gold coin yields continue their steepest monthly rise since at least 1957 as investors flee the UK bond market following the announcement of new fiscal policies. The measures included massive unfunded tax cuts that drew global criticism, including from the IMF.
In a statement Wednesday, the central bank said it was monitoring recent “significant repricing” of UK and global assets, taking a particularly hard hit on long-term UK government debt.
Read the full text here.
– Elliott Smith
Bank of England’s position ‘nearly impossible’, says chief investment strategist
Harnett said domestic companies (those included in the FTSE 250) “will struggle”, which is a concern for the UK.
“When the market finds a crack, they go for it in a big way and we see that crack growing in the UK,” he told CNBC’s “Squawk Box Europe.”
— Hannah Ward Glenton
Stocks in action: ThyssenKrupp down 8%, Roche up 5%
Shares of German multinational conglomerate ThyssenKrupp fell 8% early in trading after JP Morgan resumed covering shares with an ‘underweight’ rating.
At the top of the STOXX 600, Swiss pharmaceutical company Roche jumped 5.7% after a positive lead-across from rivals Eisai and Biogen’s Alzheimer’s drug research.
– Elliott Smith
20-Year and 30-Year British Gold Coins Yield Over 5%
Yields on 20- and 30-year UK bonds climbed above the 5% level on Wednesday as the UK bond market continued its unusual decline.
Bond yields move inversely with prices. The new government’s so-called ‘mini-budget’ on Friday sparked a wave of selling in the UK bond market, with gold yields now set to their biggest monthly gains since at least 1957. Refinitiv and Bank of England data.
– Elliott Smith
IMF delivers tough verdict on UK tax cuts
A sign outside the International Monetary Fund (IMF) headquarters in Washington, DC, USA, Tuesday, April 19, 2022. The IMF has sharply lowered its global growth forecast since the early months of the Covid-19 pandemic, and even accelerated it. Inflation after Russia invades Ukraine and China resumes virus lockdown.Photographer: Al Drago/Bloomberg via Getty Images
Bloomberg | Bloomberg | Bloomberg | Bloomberg | Getty Images
10-Year U.S. Treasury Yield Breaks Above 4% For First Time Since 2010
CNBC Pro: Credit Suisse says now is the time to buy two shares of green hydrogen stock, one gains more than 200%
Credit Suisse says it’s time to enter the green hydrogen sector, with many catalysts in place to advance clean energy power plants.
“Green hydrogen is a growing market, and our market forecast for 2030 is [over] fourfold,” the bank said, predicting that green hydrogen production will expand about 40-fold by 2030.
We have identified two stocks as booming stocks, one of which shows over 200% upside.
CNBC Pro subscribers can read more here.
— Tan Weizhen
CNBC Pro: Asset manager reveals stock’s next move and shares how he’s trading the market
Neil Veitch, investment director at Edinburgh-based SVM Asset Management, said he expects the macro environment to remain “pretty challenging” for the rest of the year.
On last week’s CNBC Pro Talks, Veitch shared his take on growth and value, naming key factors that could help the stock market become “more constructive.”
CNBC subscribers can read more here.
— Xavier Ong
US 10-Year Yield Approaches Key 4% Level
10-year Treasury yields are approaching 4%, the highest level since 2010.
The US 10-year is the benchmark yield that sets the direction of mortgage rates and other consumer and business loans. The week saw gains on UK gold coin yields and expectations of an aggressive Federal Reserve.
The yield was 3.96% in afternoon trading. 10-year yields have reversed previous declines and are up about basis points. (A basis point equals 0.01 percentage point)
BMO’s Ben Jeffrey said, “It’s definitely been impressive, and I don’t think anyone has yet stepped in to catch a falling knife. He also said the lack of liquidity was pushing yields higher. , adding that it is moving in the opposite direction of price.
Jeffery said yields were also rising ahead of the 1pm auction of 5-year bonds.
He said the decade tested the 4% level in 2010.
— Patty Dom
European Market: Click here for the opening call
European stocks are expected to open in negative territory on Wednesday as investors react to the latest US inflation data.
The UK’s FTSE index is expected to fall 47 points to 7,341, Germany’s DAX is expected to fall 86 points to 13,106, France’s CAC 40 is expected to fall 28 points, and Italy’s FTSE MIB is expected to fall 132 points to 22,010, according to IG data. there is
Global markets retreated after August’s stronger-than-expected US consumer price index, the Bureau of Labor Statistics reported Tuesday. It is a decrease of 0.1% from the previous month.
Core CPI, which excludes volatile food and energy costs, increased by 0.6% from July 2021 and by 6.3% from August.
UK inflation for August will be released, and Eurozone industrial production for July will be released.
— Holly Eliyat
.
