European markets await euro zone inflation data

Active stocks: Argenx up 6%, Avanza down 6%

Shares of Dutch biopharmaceutical company Argenx rose 6.7% in mid-afternoon to lead the Stoxx 600 after the company announced it had received a US Food and Drug Administration (FDA) Priority Review Voucher for the $102 million.

At the bottom of the European blue chip index, Swedish bank Avanza fell more than 6% after suggesting that the Riksbank’s latest rate hike would not affect its finances. earn interest.

– Elliot Smith

Europe’s stock market shortfall could be an opportunity to reduce equity exposure, fund manager says

Europe's stock market shortfall could be an opportunity to reduce equity exposure, fund manager says

Maria Municchi of M&G Investments said that the merger could be “a special opportunity to reduce from some of the same information.”

Julius Baer accepts £18 million fine by UK regulator over ‘arrangement of auditor’s fees’

A pedestrian walks past the headquarters of the Julius Baer Group Ltd. in Zurich, Switzerland.

Stefan Wermuth Bloomberg | Getty Images

Swiss private bank Julius Baer on Wednesday accepted an £18 million ($21.62 million) fine from the UK’s Financial Conduct Authority in connection with a “finder’s-fee arrangement” for one of its clients between 2009 and 2014.

The regulator also announced on Wednesday that it will also ban Gustavo Raitzin, former regional head of Bank Julius Baer (BJB), Thomas Seiler, former head of BJB for Russia. and Eastern Europe, and Louise Whitestone, former relationship manager at Julius Baer International’s. Russia and Eastern Europe Desk.

The FCA’s investigation confirmed that JBI managed the arrangement of auditor’s fees between BJB and an employee of several Yukos Group companies, Dimitri Merinson.

“This was done on the understanding that the companies of the Yukos Group would provide large amounts of cash with Julius Baer which would allow Julius Baer to make large profits,” the FCA said.

“In particular, the illegal FX transactions were carried out in which Yukos Group companies were charged higher than expected rates, with the profits being shared between Mr Merinson and Julius Baer.”

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The FCA’s Director of Enforcement and Supervision, Mark Steward, said there were “clear signs of damaging relationships here, which were seen by adults and ignored.”

“These weaknesses create the conditions in which financial crimes of the most serious kind can flourish,” said Steward.

In a statement, Julius Baer International said it was “deeply saddened and sorry for the events and inconveniences that caused today.”

“We take full responsibility for these historic failures and fully reimburse our customers. Since this error occurred, we have implemented major organizational changes,” said JBI CEO David Durlacher. .

– Elliot Smith

Eurozone rates fall, raising expectations of ECB rate hike

Euro zone inflation fell more than expected in November, fueling market expectations that inflation rates across the bloc will rise and that the European Central Bank is will begin to slow its interest rates next month.

Consumer prices rose 10% year-over-year, down from 10.6% in October and coming in below the consensus estimate of 10.4% in a Reuters poll of analysts.

However, food prices, a key concern for policymakers, continued to accelerate, with falling energy prices causing much of the slowdown.

– Elliot Smith

UK to relax banking sector rules on trade and investment, says minister

Britain is ready to roll back some of the restrictive laws imposed on banks in response to the Financial Crisis, said the Minister of the City of Andrew Griffith in the Financial Times.

Since 2019, banks with more than £25 billion ($29.9 billion) in deposits have been required to formally separate their retail assets from their investment portfolios, including holding separate pools of funds. basis to protect against losses in each and have different boards.

Lenders with limited UK banking operations such as Santander UK, Virgin Money and TSB Bank will soon be exempt from the measures, the FT reports, alongside and the campaigners argue that it will make it more competitive.

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Griffith said it would “make Britain a better place to be a bank,” and “free up some … trapped capital over time.”

Many investment banks, including HSBC and Barclayswill still need to streamline their operations to reduce the risk to customers from disruptions in other areas of the business.

The government is introducing the change as part of a package of measures to improve the UK financial sector.

— Jenny Reid

Two surveys hit UK business confidence

The fall in British business confidence was recorded in two surveys published on Wednesday.

A survey from Lloyds bank showed business confidence at its lowest level since February 2021 and below the long-term average.

It also found the economy’s top level had fallen for six straight months and employment expectations were at an 18-month low.

Wage expectations fell slightly for businesses, but they said they would continue to charge higher prices for their products and services to offset higher labor costs. .

Meanwhile, a survey of the service sector of the Confederation of British Industry found a reduction in expectations for the third quarter. The fall was the steepest since May 2020, when Britain went into lockdown.

— Jenny Reid

Transfer sales: SBB up 5%, Avanza down 7%

SBB shares climbed 5% in early trading to lead the Stoxx 600 after the Swedish real estate company agreed to sell a 49% stake in its education unit to Brookfield for 9.2 billion Swedish krone ($870.42 million).

At the bottom of the European blue chip index, Swedish banks Avanza fell 7% after the Riksbank suggested that its interest income would not be adversely affected.

– Elliot Smith

The price of France is higher than expected in November

France was the first major European economy to report inflation data on Wednesday.

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French consumer prices rose by 0.4% month-on-month and 6.2% year-on-year, according to preliminary figures from the statistics office INSEE, unchanged from October and more than the plans of 0.3% monthly and 6.1% annually.

On the EU-harmonized basis, the annual rate did not change at 7.1% in November, according to information.

– Elliot Smith

CNBC Pro: Goldman Sachs’ Currie says oil stocks are trading ‘below’ their long-term levels.

Goldman Sachs’ Global Head of Commodities Research Jeff Currie told CNBC that historically, oil products have traded at a higher price to crude oil prices compared to current prices..

For example, the price range between SPDR Oil & Gas ETF and ICE Brent Crude The futures contract was around $66.60 on Tuesday. It is much lower than the $104 gap recorded at the beginning of January 2017, according to Koyfin data, as shown in the chart below.

Make and Flourish

CNBC Pro: As Wall Street tumbles, these stocks with rising earnings could be safe bets

Wall Street investors are concerned about the stock market outlook, and investors are being urged to remain cautious. These stocks with growth can be a safe bet.

Pro subscribers can read more here.

— Zavier Ong

Market in Europe: The early stages

European markets are headed for a higher opening on Wednesday as regional markets await the latest inflation data from the euro zone in November.

The UK’s FTSE index should open 23 points higher at 7,536, Germany’s DAX up 68 points at 14,414, France’s CAC up 29 points at 6,697 and Italy’s FTSE MIB up 119 points at 24,597, according to information from IG.

The data includes preliminary inflation data for the single currency, France and Italy in the third quarter final domestic product and the rate Irish unemployment figures for November.

— Holly Elliott

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