Sterling yields on floating and gilts fall as UK PM Liz Truss resigns
Sterling rose 0.5% to around $1.1214 in the early afternoon following the resignation of Liz Truss as UK Prime Minister. Treasuries also reacted positively to the news, with the yield on the 10-year note falling four basis points to 3.842%.
– Hannah Ward-Glenton
UK Prime Minister Liz Truss resigns
Liz Truss has announced she is resigning as British Prime Minister because she was elected “with a mandate for change” but failed to “deliver on that mandate”.
Read the full story here.
– Hannah Ward-Glenton
Sterling rallies as British Prime Minister Liz Truss prepares to address Downing Street
Market bets on a rate hike would hit the economy, BoE deputy governor says
Bank of England Deputy Governor Ben Broadbent told investors that betting on big interest rate hikes would cause a “pretty substantial” hit to the economy.
Broadbent said it was unclear how the British government’s new price cap plan would affect inflationary pressures over the medium term after new finance minister Jeremy Hunt scaled back the original plans.
– Hannah Ward-Glenton
The prices of German producers are above market expectations
Germany’s Federal Statistical Office reported Thursday morning that the country’s producer prices rose 45.8 percent year-on-year in September.
Economists had expected a figure of 44.7%, according to Reuters. This is adding to concerns that broader inflation numbers will continue to rise in the coming months.
— Matt Clinch
Nordic telcos fall: Ericsson down 12%, Nokia down 5%
Ericsson shares fell 12 percent after third-quarter earnings, while Nokia was down 5 percent in early trade.
Both companies’ operating margins suffered from rising costs and contract delays.
– Hannah Ward-Glenton
Wednesday, August 17, 2022, 12:29 PM EDT
European markets: Here are the opening invitations
European markets are headed for a negative open on Thursday as investors assess continued economic uncertainty.
The UK’s FTSE is expected to open 37 points lower at 6,899, Germany’s DAX down 106 points to 12,635 and France’s CAC down 52 points to 5,988, according to IG data.
Regional markets closed slightly lower on Wednesday afternoon as traders digested new UK inflation data and assessed expectations for a rise in interest rates and recession fears.
The UK saw its consumer price index rise to 10.1% on Wednesday, matching the 40-year peak published by the Office for National Statistics in July. Food, energy and transportation prices drove the increase.
On the European data front, French business climate data for October is expected. Gains were attributed to Hermes, Kering, L’Oreal, Pernod Ricard, Vivendi, Akzonobel, ABB, Nokia and Volvo Group.
— Holly Elite
CNBC Pro: Chip stocks are down all year — but one looks ‘really attractive,’ fund manager says
Semiconductor stocks have fallen this year, but investors with a longer-term view of the chip’s importance to global trends like 5G, electrification and artificial intelligence could try to buy the dip.
Hedge fund manager David Neuhauser shares one chip stock he likes.
Professional subscribers can read more here.
— Zavier Ong
Wed Oct 19 2027 7:29pm EDT
Sterling extends losses as British Prime Minister Liz Truss addresses Parliament
Wed Oct 19 2025 5:36 PM EDT
UK markets now come with a “competence risk premium”, says the economist
The past few weeks have put a “competence risk premium” on financial markets, Paul Donovan, chief economist at UBS Wealth Management, said on CNBC’s “Squawk Box Europe.”
“Financial markets have judged that the UK government is not as competent as it could be,” Donovan said.
CNBC Pro: Pre-Recession Bond Hedging? BlackRock says it’s an “outdated” book
Recession fears roil markets, but typical government bond hiding scheme ‘outdated’, says BlackRock.
“In this environment, the bond watchers are back and heralding a return to the maturity premium,” BlackRock said, adding that it was underweight on government bonds.
However, the asset manager says investors can still buy other types of bonds.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Add Comment