European markets open at close, earnings, data and news

Bank of England right to put off rate hikes as pound plunges, says chief investment officer

The UK central bank shouldn’t rush to raise interest rates, according to Julian Howard, senior investment director for Multi Asset Solutions at GAM Investments, despite the fallen pound.

“I don’t think it’s the Bank of England’s job to prop up the pound,” Howard told CNBC’s “Squawk Box Europe” on Tuesday.

“I prefer to frame this as a global phenomenon and I think the Bank of England should wait before raising rates further,” he said.

The Bank of England is right to postpone its intervention in the fall of the pound, says Howard of GAM

He also said talk of the UK becoming an emerging market was “a bit premature”.

“Some even said we’re becoming a Mediterranean country but without the climate, I think that’s too harsh,” Howard said.

“I think in the medium term [deregulation and tax cuts] could be very useful, but the market has decided to ignore it,” he told CNBC.

— Hannah Ward-Glenton

Stocks on the move: Nexi up 6%, Vitrolife down 9%

share I connected gained 6% in early trading to lead the Stoxx 600 after the Italian payments group released its new business plan, in which it projected €2.8bn ($2.7bn) in excess cash generation between 2023 and 2025 for mergers and acquisitions and share buybacks.

At the bottom of the blue-chip European index, Swedish IVF company Vitrolife fell more than 9%.

CNBC Pro: This is where Dan Niles is putting his money

“We made money today. We’re up in August. We’re ready for the year,” fund manager Dan Niles told CNBC.

With major stock markets still in the red this year, the veteran investor shares what he’s buying in this volatile market.

professional subscribers can read more.

—Zavier Ong

Fed’s Mester says better to act ‘aggressive’ against high inflation

US inflation is “unacceptably high” and uncertainties make monetary policy decisions “non-trivial,” Cleveland Fed President Loretta Mester said in a statement. prepared remarks at the Massachusetts Institute of Technology.

“When there is uncertainty, it may be better for policymakers to act more aggressively,” he said. “Aggressive and preventative action can prevent the worst outcomes from occurring.”

She said she will be “very cautious” in evaluating the inflation data.

“I’m going to have to see several months of drops in readings from month to month,” he said. “Wishful thinking cannot be a substitute for convincing evidence.”

-Jihye Lee

World Bank cuts growth forecasts for the East Asia and Pacific region

The World Bank has cut its full-year 2022 growth forecast for the East Asia and Pacific region to 3.2% from its April prediction of 5%, it said in its latest report. report released on Tuesday.

“The growth slowdown is mainly due to China,” he said, adding that the organization also cut its 2022 forecasts for the nation from 5% to 2.8%. The World Bank expects China to grow 4.5% in 2023.

The report said average headline inflation is forecast to exceed 5% this year, an upward revision from the 3% forecast earlier in April.

-Jihye Lee

CNBC Pro: Analysts like Nvidia once again, with Citi giving it almost a 100% lead

Once again, analysts are beginning to be optimistic about nvidiaafter the semiconductor giant fell out of favor amid geopolitical tensions and a slowdown in the chip sector.

Citi and JPMorgan said last week that strong demand in PC gaming, as well as cloud adoption in data centers, would be tailwinds for Nvidia.

So how much of an edge did each give Nvidia stock? CNBC Pro subscribers can read more here.

— Weizhen Tan

European markets: here are the opening calls

European stocks are expected to open in negative territory on Wednesday as investors react to the latest US inflation data.

The UK’s FTSE index is expected to open 47 points lower at 7,341, Germany’s DAX 86 points lower at 13,106, France’s CAC 40 down 28 points and Italy’s FTSE MIB down 132 points. drops to 22,010, according to IG data.

Global markets have retreated after a higher than expected result US Consumer Price Index August report showing prices rose 0.1% monthly and 8.3% annually in August, the Bureau of Labor Statistics reported Tuesday, defying economists’ expectations that headline inflation would fall 0.1 % monthly.

The core CPI, which excludes volatile food and energy costs, rose 0.6% from July and 6.3% from August 2021.

UK inflation figures are expected for August and Eurozone industrial production for July will be released.

— Holly Ellyatt

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