Sterling extends losses as finance minister Rachel Reeves delivers UK budget
British GBP Losses earlier in the day extended against the US dollar as Finance Minister Rachel Reeves unveiled the UK budget on Wednesday.
The pound was last down 0.58% at $1.2940 at 12:56 pm London time.
GBP/USD
U.S. GDP growth is lower than expected
US economic expansion The annualized growth rate in the third quarter was 2.8%. That was slower than the 3.1% increase expected by economists polled by Dow Jones.
— Fred Ambert
Novo Nordisk shares fall to nine-month low
Novo Nordisk shares fell to January 2024 levels on Wednesday, retreating after rival Eli Lilly reported weaker-than-expected quarterly results, according to LSEG data.
Eli Lilly falls short of expectations On Wednesday, the company reported third-quarter profit and revenue and lowered its full-year 2024 adjusted profit guidance. Shares of Eli Lilly plunged as much as 10% in pre-market trading.
Novo Nordisk shares last fell 3.88% in European trading at 11:20 a.m. London time. The company is scheduled to report third-quarter earnings next week.
——Sophie Kidlin
Capgemini shares fall 8% after cutting full-year revenue target
shares Capgemini On Wednesday, the French IT consultancy said it would lower its full-year revenue target for 2024, sending its shares down 8%.
The company said it now expects its revenue to fall 2% to 2.4% in constant currency, compared with its previous forecast of a decline of 0.5% to 1.5%.
Capgemini said on Wednesday that third-quarter revenue was 5.38 billion euros ($5.83 billion), down 1.6% from the year at constant exchange rates.
The stock was last down 7.92% at 10:56 a.m. London time.
——Sophie Kidlin
Eurozone economy grew 0.4% in third quarter
Preliminary data released by the European Union’s statistical agency on Wednesday showed that the euro zone economy grew by 0.4% in the third quarter of 2024, exceeding expectations.
That was higher than the region’s 0.3% growth in the second quarter and higher than the 0.2% growth expected by economists polled by Reuters.
Read the full story here.
——Sophie Kidlin
Germany’s third-quarter gross domestic product unexpectedly grew 0.2%
The German statistics office said on Wednesday in preliminary gross domestic product that the German economy grew by 0.2% in the third quarter of 2024 compared with the previous three months. data release.
Analysts polled by Reuters had expected a 0.1% decline.
Destatis also revised down its second-quarter GDP data to a contraction of 0.3%, lower than the previously reported decline of 0.1%.
The growth in the third quarter means Germany has now emerged from a technical recession – characterized by two consecutive quarters of contraction. Germany’s gross domestic product grew by 0.2% in the first quarter of this year.
——Sophie Kidlin
France’s Statistics Office said the economy grew 0.4% in the third quarter
Preliminary data released by statistics office Insee on Wednesday showed that France’s gross domestic product (GDP) grew by 0.4% in the third quarter of 2024 from 0.2% in April to June.
The third-quarter figure was slightly higher than the 0.3% forecast by economists polled by Reuters.
The agency said the Paris Olympic and Paralympic Games, held from July to September this year, boosted economic growth.
——Sophie Kidlin
Stock market trends: Georg Fischer up 15%, Campari down 14%
Shares in Swiss company Georg Fischer soared more than 15% in early trading, hitting the highest point on Europe’s benchmark index and putting the industrial group on track for its best performance since October 2008, Reuters reported. Single day performance.
At the other end of the Stoxx 600 index, Italy Campari Shares fell more than 14% after reporting lower-than-expected third-quarter profit.
— Sam Meredith
European markets open lower
European stocks fell on Wednesday as investors reacted to a slew of corporate earnings reports.
Shortly after the opening, the pan-European Stoxx 600 index fell by about 0.45%, with most sectors in negative territory.
— Sam Meredith
British clothing retailer Next says annual profits could exceed £1 billion
British clothing retailer Next Wednesday forecast The company raised its full-year guidance for annual profits of more than 1 billion pounds ($1.3 billion) as sales improved in the third quarter.
Next said full-price sales in the August-October period were up 7.6% from last year, easily beating the company’s guidance for quarterly sales growth of 5%.
The company attributed the strong results to the early arrival of colder weather this year, followed by unusually warm September and early October 2023.
Next raised its full-year profit guidance to £1.005 billion, up from its previous forecast of £995 million.
— Sam Meredith
Luxury carmaker Aston Martin posts smaller-than-expected quarterly loss
Aston Martin DB12 Goldfinger Edition photographed during the 007 Takeover at Burlington Arcade on October 29, 2024 in London, England.
Dave Bennett | Getty Images Entertainment | Getty Images
British Aston Martin release A third-quarter loss was smaller than expected, and the luxury automaker said it was still on track to meet revised full-year guidance as it “actively manages” supply chain disruptions.
The company reported an adjusted pre-tax loss of 10.3 million pounds ($13.4 million) for the July-September period, higher than analysts’ expectations for a loss of 92 million pounds, Reuters reported.
“The improved financial and operating results in the third quarter of 2024 demonstrate the effectiveness of our strategy,” Aston Martin Chief Executive Adrian Hallmark said in a statement.
Hallmark said: “We expect to achieve revised full-year 2024 guidance that reflects the necessary actions we took in September to adjust our output.
— Sam Meredith
Volkswagen’s third-quarter profit falls sharply
On October 28, 2024, at dusk, the Volkswagen logo shined under the lights on the main administrative building of the Volkswagen factory in Wolfsburg, Germany.
Sean Gallup | Getty Images
German Volkswagen report Third-quarter operating profit fell sharply on Wednesday due to higher fixed costs and a large restructuring charge.
The carmaker in crisis Consider closing German factories For the first time in history, release Operating profit in the third quarter was 2.86 billion euros ($3.1 billion), down 42% from 4.9 billion euros in the same period last year.
Volkswagen’s union warned earlier this week that the company’s management was planning large-scale pay cuts and layoffs.
— Sam Meredith
UBS reports better-than-expected third-quarter profit
Panoramic view of the UBS Group Building in Manhattan, New York City, June 5, 2023.
Eduardo Muñoz Alvarez | View News | Corbis News | Getty Images
UBS UBS Wednesday report Third-quarter profit was stronger than expected, citing progress in integrating collapsed national rival Credit Suisse.
UBS said third-quarter net profit was US$1.4 billion, exceeding the average estimate of US$667.5 million in an LSEG analyst survey.
UBS Chief Executive Sergio Ermotti said in a statement: “As the Credit Suisse integration progresses, we will continue to significantly reduce execution risk while maintaining consistency in driving our cost and efficiency goals. discipline.
“At the same time, we are investing in people, products and capabilities, including technology, to enhance the customer experience, increase productivity and deliver sustainable profitable growth,” he added.
— Sam Meredith
Chinese auto stocks fall after EU imposes EV tariffs on China
European Union raise tariffs Tariffs of up to 45.3% on Chinese-made electric cars end a countervailing investigation that divided members and prompted them Countermeasures From Beijing.
Multiple Chinese EV stocks fell, including Niohdown about 6%; auspiciousdown about 4.7%; and rickshawdown 2.6%.
On top of the EU’s existing 10% auto import tariff, the new tariffs range from 7.8% on Tesla to 35.3% on China’s SAIC.
— Dylan Butts
CNBC Pro: These stocks and bonds will benefit from UK budget, analysts say
Britain’s Labor Party will today publish its first government budget in 14 years.
UK Finance Minister Rachel Reeves is expected to end months of speculation that the government intends to raise taxes, change rules and borrow money to support long-term investment.
Investment bank analysts highlighted several stocks that could win or lose if the rumored measures are announced or scrapped.
CNBC Pro subscribers can read more about the affected stocks here.
— Ganesh Rao
CNBC Pro: ‘Ridiculously cheap’: Bottom-up investors name Japanese industries and stocks to invest in now
Japanese markets have risen steadily this week and one bottom-up investor sees the potential for further gains.
“When we look at Japan, it’s hard not to be bullish on equities. Because even companies that are struggling on the earnings side are going to have their valuations depressed, and even if earnings are weak, the stock price probably won’t fall that much,” Kato Miio Capital Said the founder of marketing company LightStream Research.
“When we look at the valuations of many companies, they look ridiculously cheap,” he added.
Kato also revealed the industries and stocks he is currently betting on.
CNBC Pro subscribers can read more here.
— Amala Balakrishna
Investors warn dollar could fall in value if Trump becomes president
Some investors believe that higher interest rates and inflation could make the dollar more expensive during a Trump presidency. But Erik Knutzen, co-chief investment officer of multi-asset strategy at Neuberger Berman, said the dollar may actually fall under the Trump administration.
“The dollar did rise at the end of the year after Trump’s surprise victory in 2016, but it depreciated in 2017 when Trump was enacting policies that he said would increase inflation and lead to higher interest rates,” he told CNBC.exchange“Tuesday afternoon. “Trump and his colleagues actually want to see the dollar weaken to support the U.S. economy. Yes, the dollar may have some short-term momentum, but frankly, if Trump is not elected, this trade may disappear.
Knutzen added that the dollar could weaken in the short term if Trump loses the November election.
—Lisa Kelley Han
European Markets: Here are the opening calls
European markets are expected to open lower on Wednesday.
British FTSE 100 German stocks are expected to open 41 points lower at 8,178 German DAX Index France fell 60 points to 19,420 CAC Down 27 points to 7,481 points, Italy FTSE MIB It fell 181 points to 34,509 points, according to IG data.
Preliminary European quarterly growth data on Wednesday will be closely watched for further insight into the region’s economic health.
Meanwhile, UBS, Crédit Agricole, BASF, Capgemini, Raiffeisen Bank International, Wolters Kluwer, Aston Martin Lagonda, Volkswagen, Schneider Electric, Airbus, Standard Chartered, GlaxoSmithKline, Ubisoft and Companies like Next will reap the profits.
— Holly Elliot
