stocks, news, data, Fed rate decision

Trivago CEO Axel Hefer discusses the latest company earnings and forecasts for the upcoming travel season.

UniCredit CEO Andrea Orcel said in an interview Wednesday that he believes the bank is “close to the NII peak”. [net interest income].”

Asked by CNBC’s Joumanna Bercetche about the likelihood that rate hikes will end and whether banks need to be more competitive on deposits, Orsel said, “I think we’re going to see more growth between the second and third quarters. I expect there will be,” he said.

“Europe still needs to raise interest rates a bit, or at least the ECB is determined to do it,” he said.

But Orsel said UniCredit believes the pass-through rate — the interest rate paid to investors on securitized assets minus fees — will not rise as much as previously expected, so the first-quarter It was able to raise its earnings guidance, he said.

“It’s due to volatility and risk. Our depositors, and depositors in general, are now rewarding stronger banks. There is a flight to quality,” he said.

The bank’s pass-through rate was 20% last year, compared to expectations of 35-40%, and ended the first quarter at 22%. Orcel said: They value bank strength, bank liquidity, so it’s a little less attractive. “

UniCredit shares rose 5.75% in afternoon trading.

— Jenny Reed

Oil and gas stocks fell 1.04% in the previous session at 10:42 am London time.

BP, Shell and TotalEnergies were among the companies trading lower as Brent crude futures fell 2.06% to $73.78 a barrel and West Texas Intermediate crude fell 2.12% to $70.14 a barrel. It’s one.

On Tuesday, the benchmark fell at its biggest daily rate since early January and reached its lowest level since late March, according to Reuters data.

Car maker Sterantis posted a 14% year-on-year increase in net sales in the first quarter as pressure in its semiconductor supply chain eased and shipments increased.

The Netherlands-based company posted net revenues of €47.2 billion ($52 billion) in the first quarter. We also reaffirmed our full-year guidance. Initiated €1.5 billion share buyback. It confirmed on Thursday that a regular dividend of €1.34 per share will be paid to shareholders.

Shares fell 2.06% at 9:53 am London time.

— Jenny Reed, Elliott Smith

Saxon Chancellor Michael Kretschmer says the EU can no longer concentrate solely on its domestic market.

Shares in Milan-based UniCredit were up 6.6% at 8:47 am London time. First quarter resultswhich showed net income growth of 56.5%, with estimates outperforming net interest income.

The bank also revised its full-year guidance, raising the amount it expects to pay investors.

France’s BNP Paribas turned from a small loss to a gain of 0.25% despite doubling its earnings year-on-year and outperforming earnings.

Lars Machenir, CFO of BNP Paribas, told CNBC that the results showed a “solid balance sheet” and laid the foundation for future growth.

The European banking sector rose 1.06% despite Tuesday’s sell-off in US regional banks.

UK stock market rules could be significantly simplified as part of an effort to attract major companies to list in London under a detailed plan released by the UK financial watchdog.

The Financial Conduct Authority has proposed replacing the existing ‘premium’ and ‘standard’ listing segments in the UK with a single category. This is part of a series of reforms to simplify the country’s listing rulebook.

“We want to encourage more companies to list and grow in the UK compared to other competitive international markets,” said FCA CEO Nikhil Rathi.

Read the full text here.

— Reuters

Danish jewelry maker Pandora report First quarter revenue growth was 1%, above analyst consensus of -1%, as the EBIT margin fell from 23% to 21.1%.

“Given the macroeconomic backdrop, consumer sentiment and recession fears, we know the jewelery market is actually in the negative. I think it’s a good result.” CEO Alexander Lacik said on CNBC’s “Squawk Box Europe.”

Europeans are starting to be more optimistic than U.S. shoppers, but consumer sentiment is largely unchanged from last year, he said.

“At the end of the day, I think what we are looking at is a very uncertain future,” Lacik said.

French bank BNP Paribas more than doubled its profit in the first quarter.

CNBC’s Charlotte Reid speaks to BNP Paribas CFO Lars Mashenill.

Jefferies expects global commercial real estate stock prices to rise by more than 60% over the next 12 months.

The investment bank’s predictions came as the global commercial real estate market experienced a sharp decline in prices over the past year.

However, real estate firms are expected to avoid a recession as they nearly doubled the rent they charge tenants and vacancy rates for office space in target areas fell last year.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Perhaps Monday’s stock market sell-off shows investors are finally tempering their optimism that the Federal Reserve will cut interest rates later this year to offset the economic slowdown. I’m here.

“[T]Bank of America global economist Ethan Harris said in a report that markets may be overoptimistic about how easy it will be to return inflation to target, even if the Fed faces a mild recession. He said he would be surprised not to cut rates. to customers before the market opens on Monday.

Simply put, investors have been rallying stocks since mid-March on the belief that the Fed will reverse policy and cut interest rates by half a percentage point in response to a shallow recession, BofA said.

Unfortunately, the bank says such hopes will be dashed. “We see four risks this summer: an ugly debt ceiling battle, a significant tightening of bank credit, a geopolitical event and a disappointingly hawkish central bank. , in our view, is to raise interest rates to moderately restrictive levels, so a mild recession in the US or flattening growth in other major economies is unlikely to trigger an immediate policy response. ‘” Harris wrote.

— Scott Schnipper

The price of lithium, a key material used in electric vehicle batteries, has rebounded for the first time in months.

Analysts were generally bullish on the sector over the long term.

For investors looking to enter EV-related sectors, CNBC screens lithium and battery stocks with buy ratings from over 70% of analysts covering them, with an average price target up at least 15%. Did.

CNBC Pro subscribers can read more here.

— Tan Weizhen

Goldman Sachs says investors haven’t quite weathered the March banking crisis as bank stocks fell on Tuesday. He later pointed out that market concerns were quickly alleviated by the infusion of deposits into First Republic Bank.

“Since bottoming out at 3808 on March 13th, the S&P 5000 has risen almost 10%. [as of] Monday night comes on the back of easing tensions among banks, a (so far) strong earnings season and a growing consensus that the Fed will soon end its year-long rate-hiking cycle.”

“Today, however, some March fears seem to have returned following JPM’s announcement of its acquisition of FRC on Monday. Regional bank stocks are down 4% to 13%. [Managing director Richard] Ramsden sees the JPM acquisition as incremental, noting that the deal highlights the ability of G-SIBs to bid for FDIC deals even if they exceed their deposit limits.

— Kim Ha Kyung

Eric Rosengren thinks his former Federal Reserve colleague would make a mistake if he raised interest rates again on Wednesday.

Former Fed President Boston, who stepped down from the board in September 2021, told CNBC on Tuesday that turmoil in the banking industry and a slowing economy will force policymakers to end the rate hike campaign that began in March 2022. said.

“My own view is that the economy will very likely slow down in the second half of this year and until we have a better outlook on what the second half of the year will look like, there is no need to raise interest rates at this time,” Rosengren said. Squawk Box” said.

Futures market traders are pricing in a 96% chance that the Federal Open Market Committee will approve a one-quarter percentage point hike at the end of its two-day meeting, according to CME Group’s FedWatch tracker.

— Jeff Cox

European markets are headed for higher open Wednesday ahead of the US Federal Reserve’s monetary policy decision.

The UK’s FTSE 100 index is expected to open 22 points higher at 7,792, Germany’s DAX is up 58 points to 15,771, France’s CAC is up 36 points to 7,408 and Italy’s FTSE MIB is expected to open 81 points higher at 26,501, according to IG data. It has been.

Revenue will come from Lloyd’s Banking Group, Aston Martin Lagonda, BNP, Airbus, Stellantis, Deutsche Post DHL and Lufthansa. The Eurozone unemployment rate for March is also due to be released.

— Holly Eliyat