European stocks open lower
European markets opened lower on Friday as investors assessed new economic data and the path ahead for rate cuts following hawkish comments from Federal Reserve Chairman Jerome Powell.
Pan-European Stoke 600 It was down 0.8% in early trading, with all major exchanges and nearly all sectors in the red.
Healthcare stocks fell 1.72%, tracking broader losses among global vaccine makers as investors weighed President Donald Trump’s nomination of Robert F. Kennedy Jr. to lead the company. plan. Department of Health and Human Services.
Technology stocks also fell 1.36%, while utilities were the only exception, rising 0.06%.
— Karen Gilchrist
Global insurance group raises targets after improved third-quarter results
Dutch insurance company Aegon On Friday it raised its full-year capital generation target after reporting better-than-expected results from its U.S. operations.
Working capital generation (excluding quotas) was EUR 336 million (USD 354.8 billion) in the third quarter. Reuters reported that analysts surveyed by the company had expected printing sales of 296 million euros.
The global insurance group targeting growth in the United States said it now expects full-year capital generation of about 1.2 billion euros, compared with a previous forecast of 1.1 billion euros.
— Karen Gilchrist
Reeves ‘not happy’ with UK economic growth
UK Finance Minister Rachel Reeves speaks at the Labor Party conference at the ACC Liverpool Conference Center on September 23, 2024 in Liverpool, UK.
Anadolu | Getty Images
UK Finance Minister Rachel Reeves said on Friday she was “not happy” with UK economic growth, reacting to the latest data released earlier in the meeting, which showed third-quarter gross domestic product ( GDP) grew slightly by 0.1%.
The report covers a period of significant uncertainty in the UK, with the government accused of downplaying the economy as investors and consumers await Reeves’ budget on October 30.
“Improving economic growth is at the core of everything I seek to achieve, which is why I’m not satisfied with these numbers,” Reeves said, adding that her budget, which includes significant tax increases and spending, would seek to stimulate the economy. increase.
Joe Nellis, economic adviser to the British Home Office, said that although the British economy remains weak, it appears to be “slowly advancing on the road to recovery.”
“It is even less clear what impact increased government spending and investment will have on growth. While the chancellor has announced a range of public sector investment measures to boost growth, the government’s long-term approach – which is a sound strategy – It may mean we have to wait longer to see a catalytic effect on the economy,” he added on Friday.
— Karen Gilchrist
UK economy grew 0.1% in third quarter, lower than expected
Shoppers walk through the main street of Whitstable, England.
Bloomberg | Bloomberg | Getty Images
The Office for National Statistics said on Friday that the British economy grew by 0.1% in the third quarter of this year.
That was below expectations of economists polled by Reuters, who forecast gross domestic product would grow 0.2% in the first three months of the year.
Previously, British inflation fell sharply to 1.7% in September, falling below the Bank of England’s 2% target for the first time since April 2021. to 4.75%.
— April Roach
Economists say UK could see further tax hikes if economy doesn’t develop
Britain could face further tax rises if the government doesn’t get the economy moving, ING economist James Smith said on Friday after Labor announced its latest growth-driven reforms.
Finance Minister Rachel Reeves on Thursday revealed a series of financial reforms, including easing regulations and increasing pension funds, as part of a wider plan to stimulate growth and investment. Weeks ago, Levi’s announced major changes to the national debt rules in its fat tax-increase budget.
However, Smith said it is critical that these reforms deliver results and boost economic growth if the country is to avoid further tax increases in the future.
“The real risk for Labor is … if they can’t get the economy moving fast enough, I think we’ll be looking at more tax increases again,” Smith said.
— Karen Gilchrist
CNBC Pro: Citigroup says this Korean stock is a “unique direct” beneficiary of Nvidia’s new AI chips, sending it up 40%
Citi says a Korean company will be an important beneficiary NVIDIAIts new generation AI chip is expected to increase its stock price by more than 40% in the next 12 months.
The Wall Street bank added that the company’s artificial intelligence-related revenue could grow 90% next year.
CNBC Pro subscribers can read more about the stock here.
— Ganesh Rao
CNBC Pro: Wealth manager warns of ‘bond vigilantes’ and reveals his stock picks
As investors consider how to approach the market following the US election outcome, Sanders Morris’ George Boole reveals what he’s currently looking for.
The chairman of the US-based Wealth Inc. said: “The post-election rally has been crazy and probably came too soon. However, it does show that investors have confidence that under the (Donald) Trump administration, the business community and gains will be better.” Profits will be strong.
However, he warned that there is “schizophrenia” in the bond market that could “exacerbate indecision and some correction in the stock market.” Stocks tend to feel uneasy when Treasury yields soar, especially growth stocks, because rising yields could hurt their expected future returns.
Against this backdrop, the wealth manager revealed where and how he participates in the market.
— Amala Balakrishna
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