Inflation ‘probably’ has peaked, says fund manager
After softer-than-expected US wholesale and consumer inflation over the past week, we may have seen a spike in price increases, according to Dan Avigad, a partner and portfolio manager at Lansdowne Partners.
“Inflation has peaked, probably, and most likely will start to come down. I think the real question is the timing of that versus the slowdown in the real economy and the impact of those two countervailing forces in the markets. values for the next six years. months,” Avigad told CNBC’s Joumanna Bercetche at the Sohn London Investment Conference on Wednesday.
“There is an argument that if the equity and bond markets rally too aggressively, it amounts to easing financial conditions too early in the cycle for what central banks want to see.”
Stocks on the Move: Billerud Down 6%, Saab Up 5%
Shares of Swedish pulp and paper maker Billerud fell more than 6% in early trading to the bottom of the Stoxx 600 after Jefferies downgraded its rating on the stock to “underperform” from “hold.”
At the top of the index, compatriot aerospace and defense company Saab rose 5%.
UK inflation hits 41-year high of 11.1% as food and energy prices continue to rise
UK inflation jumped to a 41-year high of 11.1% in October, beating expectations as food, transport and energy prices continued to pressure households and businesses.
“Indicative modeled consumer price inflation estimates suggest that the CPI rate would last have been highest in October 1981, where the annual inflation rate estimate was 11.2%,” said the Office of National Statistics.
On a monthly basis, the CPI increased 2% in October, matching the annual CPI inflation rate between July 2020 and 2021.
Biden says missile that killed two people in Poland ‘unlikely’ was fired from Russia
The President of the United States, Joe Biden, said that it is “unlikely” a missile that killed two people in Poland was fired from Russiaciting the trajectory of the rocket.
Asked by a reporter if the missile was fired from Russia, Biden said: “There is preliminary information that disproves that, I don’t want to say that until we fully investigate.”
He went on to say: “It’s unlikely… in trajectory mind, that it was fired from Russia. But, we’ll see.”
Biden reiterated that the G7 leaders agreed to support an ongoing investigation into the burst.
“We agreed to support Poland’s investigation into the explosion in rural Poland near the Ukrainian border. And I will make sure to find out exactly what happened,” he told reporters on the sidelines of the G-20 summit in Bali, Indonesia. . .
World Bank says Russia is ‘ruining its own future’ with Ukraine war
World Bank President David Malpass has said that Russia is damaging its own future by continuing the war against Ukraine.
“It weakens Russia, it makes them outcasts and it is really ruining its own future,” he said. “It pains me what Russia is doing to itself, to its own people.”
When asked about the latest developments of a Russian-made missile killing Polish citizens, Malpass said: “I don’t want to speculate on the missiles, but as for the G-20 [goes]there has been unity, broad unity of the G-20 countries against the war”.
CNBC Pro: Analysts believe these EV-related stocks in the lithium supply chain could be winners
Goldman Sachs says the peak in battery metal prices is near.
Given this perspective, CNBC Pro projected the Global X Lithium & Battery Tech ETF for stocks related to electric vehicle manufacturers that could offer opportunities for investors.
These stocks are expected to post full-year growth in 2023, be rated a Buy by most analysts who cover them, and have average growth potential of at least 20% over the next 12 months.
Here it is .
CNBC Pro: These Biotech Stocks Look Cheap, And Analysts Give 2 More Than 100% Upside
Fundstrat said some biotech stocks are worth watching and the subsector is currently the strongest within the healthcare industry.
Mark Newton, head of technical strategy at research firm Fundstrat, said the sector is “a key part of why healthcare is likely to show a strong Q4.” [fourth quarter] superior performance,” according to a Nov. 14 memo.
To identify biotech stocks that look cheap and are expected to rise going forward, CNBC Pro assessed the iShares Biotechnology ETF in FactSet. Here are 8:
CNBC Pro: Fed ‘pivot’ is dead, says strategist, who shares where to invest right now
Fidelity says the notion that a turnaround from the Fed’s hawkish stance will benefit stocks is “dead.”
Salman Ahmed, global head of macro and strategic asset allocation at the investment management firm, said he is concerned about stock performance in the near term and suggests investors consider a different asset class.
European markets: here are the opening calls
European markets will open lower on Wednesday as political instability gripped the region after a missile hit Polish territory on Wednesday, raising tensions between Russia and NATO.
The UK’s FTSE index is expected to open 31 points lower at 7,328, Germany’s DAX is expected to be down 121 points at 14,237, France’s CAC is expected to be down 48 points at 6,580 and Italy’s FTSE MIB is down 205 points at 24,405, according to GI data.
Global markets will be watching developments in Ukraine following a massive missile attack across the country on Wednesday, and the aftermath of the missile hitting Polish soil, though Moscow denies responsibility for the attack.
Earnings to be released are from Alstom, Siemens Energy, Premier Foods, SSE, Experian and Man Utd and the data releases include the latest UK inflation figures for October.