Investors evaluate the course of the interest rate

Arrows on the go: Verbund up and Fuchs down

Austrian electricity supplier Verbond It remained the top climber among European stocks, up 8.2%.

German lubricant manufacturer Fox The largest decline was recorded at 4.6%.

The Stoxx 600 was generally bullish, led by retail stocks, which rose 2.2%.

– Jenny Reed

Stocks on the go: Verbund up 9%, Fuchs Petrolub down 4%

Austrian hydropower producer Verbond Its shares had risen more than 9% by mid-afternoon to lead the Stoxx 600 after the Austrian government announced plans to impose a temporary dividend tax of up to 40% for oil, gas and energy firms. The tax can be reduced to 33% if companies make green investments.

At the bottom of the index, shares of German lubricant maker Fuchs Petrolube fell 4%.

– Elliott Smith

Deutsche Bank CEO says regulatory pendulum ‘is about to swing too far’

CEO Deutsche Bank He told the crowd at the European Banking Conference that he had concerns that the “pendulum” of financial regulation “is about to swing too much”.

Speaking in Frankfurt, Christian Swing said banks would have made less progress in recent years without the regulations put in place after the financial crash, but now is the time for regulators to look at where “what may have gone a little too far”.

Swing also said that Europe could lose its position as a global leader in sustainable finance if regulation continues “as is”.

– Hannah Ward Glinton

Manfred Knauf, CEO of Commerzbank, says that the bank is preparing not for a catastrophe, but for a mild recession

Commerzbank CEO Manfred Knof said the bank had prepared for a “mild recession” and that it expected an increase in non-performing loans, but that it was “certainly not a disaster or a default problem”.

“We’ve already made provisions but at the moment we don’t see a lot of problems ahead of us,” Knauf told CNBC at the European Banking Conference in Frankfurt on Friday.

Commerzbank expects an increase in bad loans, says the CEO, but there is no disaster

Knauf also said regulators, politicians and corporate banks had acted in a way that gave him “optimism” that the sector could manage the current economic climate.

– Hannah Ward Glinton

UK retail sales partially rebounded in October, but the outlook remains bleak

UK retail sales rose 0.6% m/m in October, beating expectations and partially recovering from a 1.5% drop in September.

Retail volumes remained 0.6% below pre-pandemic levels, the Office for National Statistics said, while retail sales excluding fuel grew less than expected, highlighting consumers’ reluctance to confront high inflation and a recession already under way, according to the Office for Budget Responsibility.

The Office of the Balance Sheet predicted on Thursday that the UK will suffer the biggest drop in living standards on record over the next two years.

“With the festive season fast approaching, many people have already reduced the volume of food purchases from stores and will continue to review their food and clothing purchases as well as curb their gift lists,” said Farah Thalji, Director of Simon Consulting. Kosher & Co.

“Although we have seen a return to in-store shopping over the past several weeks, both in-store and online outlets will be hard-pressed to get consumers to part with their cash as discretionary income appears to shrink further.”

– Elliott Smith

Stocks on the move: Verbund up 8%, Unibail-Rodamco-Westfield down 4%

Austrian benefit Verbond It gained 8% in early trade to top the Stoxx 600, while the French commercial real estate company Unibel Rodamco Westfield The index fell 4% to the bottom of the index.

The Fed’s Bullard says that rate hikes have had “only limited effects” on inflation so far

St. Louis Federal Reserve Chairman James Bullard Thursday’s language hurt sentiment among investors Hoping to see the central bank back off from raising interest rates.

He said the Fed still has work to do before inflation is under control while delivering remarks that focus on the importance of using rule-based approaches when making policy. He is a voting member of the Federal Open Market Committee, which sets rates.

He said, “So far, the change in monetary policy stance seems to have had only limited effects on observed inflation, but market prices indicate that inflation is expected to decline in 2023.”

– Jeff Cox, Alex Haring

The UK has announced £55 billion in tax increases and spending cuts as the country prepares for the biggest drop in living standards on record.

On Thursday, British Finance Minister Jeremy Hunt unveiled A A comprehensive £55 billion ($66 billion) fiscal tightening plan including A large number of tax increases and spending cuts While trying to plug a huge hole in the country’s public finances.

The planned £30 billion in spending cuts and £25 billion in tax increases come even as the independent Office for Budget Responsibility (OBR) confirmed that the UK economy is now in recession and is set to contract by 1.4% next year.

The OBR also said the UK would suffer the sharpest drop in living standards since records began, wiping out nearly a decade of real disposable income growth for households by 2024.

– Elliott Smith

Here are the opening calls

Britain FTSE 100 index It is expected to rise by about 14 points to 7361, Germany Dax It is set to add about 55 points to 14321 and France CAC 40 It was seen climbing about 43 points to 6619.

CNBC Pro: “The semi-halving bull case is convincing”: Bank of America picks the best chip stocks to buy

Chip stocks, once a favorite of investors, are Poor performance this year.

But BofA says that although consumer demand remains under pressure, “the bullish case for semi-finals is also compelling.”

BofA expects semiconductor sales to rebound in the second half of 2023.

Here are some of the topics that chip stocks could ride on, says the bank, which also chooses which names to buy.

CNBC Pro subscribers can read more here.

– Wizen tan

CNBC Pro: While Muddy Waters bets on dLocal, here are the other fintech stocks short sellers are eyeing

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