Stock Markets

Bank of England keeps rates at 15-year high, gilts rally

Published

1 year ago

November 3, 2023

Bank of England keeps rates at 15-year high, gilts rally

LONDON (Reuters) -The Bank of England held interest rates at a 15-year peak on Thursday, as it kept up its fight against the highest inflation among the world’s big rich economies, and stressed that it did not expect to cut them any time soon.

The Bank Rate was held at 5.25% for the second meeting in a row after 14 back-to-back rate increases and the BoE published forecasts showing the British economy is now skirting close to a recession.

MARKET REACTION:

STOCKS: Britain’s benchmark held onto its earlier gains and was last up 1.26% on the day.

FOREX: Sterling was up around 0.5% at $1.2208. It was trading around 0.35% higher before the BoE decision at $1.2193. It dropped versus the euro, which was 0.37% higher at 87.31 pence.

Bonds: Benchmark 10-year UK bond yields were last down 16 basis points (bps) on the day at 4.33%, extending earlier falls.

MONEY MARKETS: Markets moved to fully price in a 25 basis point BoE rate cut by August 2024, earlier they had seen around a 80% chance.

COMMENTS:

GEOFF YU, SENIOR EMEA MARKET STRATEGIST, BNY MELLON, LONDON:

“The BoE is probably along the path that it expected and probably slightly frustrated that it is not further along.”

“If you want to take just one key phrase from the BoE’s Monetary Policy Report it’s judgement three – ‘Second-round effects in domestic prices and wages are expected to take longer to unwind than they did to emerge’. That means that the path down will be slow.”

“The moves in bond markets yesterday did a lot of work for them already. People are talking about getting back into bonds, including longer dated bonds, and that’s fair enough, the UK is probably in an OKish place there.”

ALTHEA SPINOZZI, SENIOR FIXED INCOME STRATEGIST, SAXO BANK, COPENHAGEN:

“Regarding the Bank of England, the projections paint a picture of stagflation, and signal the next move to be a cut in the base rate rather than a hike. However, investors will need to deal with the fact that inflation will not revert to 2% until 2025. That means that the long part of the yield curve will remain vulnerable to a bull steepening, as the BoE is forced to remain on hold.”

“The risk the BoE is running into is that, if at the next projections there is the need to revise inflation up again, that will need to be brought together with another interest rate hike. That would kill the central bank’s credibility at the cost of sterling.”

ED HUTCHINGS, HEAD OF RATES, AVIVA INVESTORS, LONDON:

“With no change but close to 0.75 (percentage points) of cuts priced for 2024, the BoE seems keen to push back on markets getting carried away with cuts.”

“With the lagged effects of past interest rate hikes still to feed through to the economy, weaker growth should well be expected going forward. This should largely be supportive for the currency, but elsewhere, the direction of travel on gilt yields in the near-term is more unclear.”

DARIO PERKINS, MANAGING DIRECTOR, GLOBAL MACRO, TS LOMBARD, LONDON:

“I think all central banks are sort of desperate to stop. The tightening cycle is basically over as far as I can see. If you look globally, you can see that some central banks have already started to ease so that sort of synchronized tightening that we had, has ended and now it’s just a question of when and if they cut interest rates.”

“I think the Fed is in quite a comfortable position, I’m not sure you can say the same about the Bank of England and the ECB.”

SAMUEL ZIEF, HEAD OF GLOBAL FX STRATEGY, J.P. MORGAN PRIVATE BANK, LONDON:

“The BoE told us that further tightening requires fresh evidence of inflation persistence. Data since the last meeting has not met that threshold.”

“They’ll likely be sitting on ‘Table Mountain’ for a while, but in our view the next move for the BoE will be to lower rates. The BoE evidently doesn’t disagree; its forecasts see inflation returning to target in 2025 if rates remain unchanged into next year and then gradually decline.”

“With the BoE in hand after the Fed yesterday and the ECB last week, all of the major central banks are now on hold in our view. At the same time, growth and inflation – particularly in Europe – are both moving in the same direction: lower. That’s a strong backdrop for fixed income; we like owning European bonds across the curve and funding tactical FX trades out of euro and sterling.”

CHRIS BEAUCHAMP, CHIEF MARKET ANALYST AT IG GROUP, LONDON:

“The BoE has struck a similar tone to the Fed, and today’s 6-3 result shows that caution is spreading to central banks outside the U.S. While it’s still clear that rate cuts are off the table for the foreseeable, it seems the bar for another rate hike has been raised a little today”.

MICHAEL FIELD, SENIOR EQUITY STRATEGIST AT MORNINGSTAR, AMSTERDAM:

“This will come as some small relief for markets, but any positivity coming from this announcement today has been lost in the euphoria on the news that the U.S. Federal Reserve is likely finished with rate increases, which should buoy the global economy.”

“That the Bank (of England) could also be finished with rate rises, and may even start cutting early next year, is something to be celebrated, both by businesses and cash-strapped mortgage holders. But at the same time, it is easy to forget how quickly and strongly rates rose. At 5.25%, base rates stand at their highest level since before the financial crisis.”

JEREMY BATSTONE-CARR, STRATEGIST, RAYMOND JAMES, FRANCE:

“Soft economic activity and inflationary pressures persist, but the fact that these are no worse than forecast contributed to today’s conclusion to hold the rate steady. The rise in longer dated government bond yields, in large part the consequence of global factors, has served to tighten financial conditions and done a share of the MPC’s (Monetary Policy Committee) work for it.”

“The question going forward is how long this standstill will last for – with financial markets expecting it to be a considerable period of smooth sailing. The door for future rate hikes still sits ajar, and the MPC will likely remain vigilant for further fluctuations and risks in the months ahead.”

PETER DOHERTY, DIRECTOR, HEAD OF INVESTMENT RESEARCH, ARBUTHNOT LATHAM, LONDON:

“Of all the major central banks, the BoE has the toughest path forward. Economic data is cooling, the labour market is tight, but inflation is still sticky.”

“In the short to medium term the ability of the (U.S.) Federal Reserve to hike relative to the BoE constrains the pound against the dollar.”

“When you look back a couple of months, what was priced in was continued hikes from the BoE and cuts next year from the Fed. What might turn out could be very much the opposite of that.”

GEORGINA TAYLOR, FUND MANAGER AND HEAD OF MULTI-ASSET STRATEGIES, INVESCO, LONDON:

“Given we are probably at peak rates, we have to line up the central banks in terms of who might move to cuts and we think probably the Bank of England will need to be the one major central bank that moves first. They need to focus on the growth-inflation mix and the fact the economy is deteriorating.”

“Across bond markets, gilts are the place where there is probably most value coming through so we have added some exposure.”

Stock Markets

Trump holds victory rally in Washington ahead of inauguration

Published

2 hours ago

January 20, 2025

By Steve Holland and Tim Reid

WASHINGTON (Reuters) – President-elect Donald Trump will take a victory lap on Sunday with a campaign-style rally in Washington, D.C., a day before he is sworn in for a second term four years after losing the White House to Joe Biden.

Trump’s “Make America Great Again Victory Rally” – scheduled for 3 p.m. ET (1900 GMT) at the Capital One (NYSE:) Arena – marks his first major speech in Washington since he urged his supporters to march on the Capitol on Jan. 6, 2021, in protest against his defeat.

Thousands of people breached the building in an unsuccessful effort to prevent Congress from certifying the results. Trump has vowed to pardon many of the more than 1,500 people charged in connection with the attack.

His rally remarks, along with his inaugural address on Monday, could offer a preview of the tone he plans to adopt in the early days of his second term in office. In recent weeks, Trump has disconcerted foreign allies by musing aloud about taking over Greenland and the Panama Canal and turning Canada into a U.S. state.

The rally is likely to resemble the free-wheeling arena speeches that have been a Trump staple since his first White House campaign in 2016.

The world’s richest man, Elon Musk, who has become a close Trump confidant since spending more than $250 million to boost his campaign, is scheduled to speak at the event, along with Vice President-elect JD Vance, Ultimate Fighting Championship CEO Dana White, conservative activist Charlie Kirk and conservative commentator Megyn Kelly.

TikTok CEO Shou Zi Chew also plans to attend the rally, amid uncertainty over whether Trump will take steps to rescue the app from a U.S. ban set to take effect on Sunday. Chew is expected to join other tech executives at Trump’s inauguration on Monday.

Singer and rapper Kid Rock, disco group The Village People, singer Billy Ray Cyrus and singer Lee Greenwood are all scheduled to perform at the rally.

President Joe Biden will meanwhile make his last official trip as president on Sunday to Charleston, South Carolina, to mark Martin Luther King Jr. Day, which is on Monday, the White House said. He will attend services and speak about King’s legacy at Royal Missionary Baptist Church.

© Reuters. Supporters gather outside Capital One Arena, ahead of a rally for U.S. President-elect Donald Trump the day before he is scheduled to be inaugurated for a second term, in Washington, U.S., January 19, 2025. REUTERS/Marko Djurica

Earlier on Sunday, Trump will participate in a wreath-laying ceremony at the Tomb of the Unknown Soldier in Arlington National Cemetery. In the evening, he will address well-heeled supporters at a dinner in Washington.

The inauguration is scheduled for noon ET (1600 GMT) on Monday, when Trump will take the presidential oath of office inside the rotunda of the Capitol building, after the cold weather prompted organizers to move the ceremony indoors. Approximately 25,000 law enforcement personnel will be on hand to provide security.

Stock Markets

CELH DEADLINE NOTICE: ROSEN, A GLOBAL AND LEADING LAW FIRM, Encourages Celsius Holdings, Inc. Investors to Secure Counsel Before Important January 21 Deadline in Securities Class Action – CELH

Published

2 hours ago

January 20, 2025

New York, New York–(Newsfile Corp. – January 19, 2025) – WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock and sellers of puts of Celsius Holdings , Inc. (NASDAQ: NASDAQ:) between February 29, 2024 and September 4, 2024, both dates inclusive (the “Class Period”), of the important January 21, 2025 lead plaintiff deadline.

SO WHAT: If you purchased Celsius common stock or sold Celsius puts during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

WHAT TO DO NEXT: To join the Celsius class action, go to https://rosenlegal.com/submit-form/?case_id=31677 or call Phillip Kim, Esq. at 866-767-3653 or email case@rosenlegal.com for more information. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than January 21, 2025. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action (WA:) Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.

DETAILS OF THE CASE: According to the lawsuit, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Celsius materially oversold inventory to PepsiCo (NASDAQ:), Inc. (“Pepsi”) far in excess of demand, and faced a looming sales cliff during which Pepsi would significantly reduce its purchases of Celsius products; (2) as Pepsi drew down significant amounts of inventory overstock, Celsius’ sales would materially decline in future periods, hurting Celsius’ financial performance and outlook; (3) Celsius’ sales rate to Pepsi was unsustainable and created a misleading impression of Celsius’ financial performance and outlook; (4) as a result, Celsius’ business metrics and financial prospects were not as strong as indicated in defendants’ Class Period statements; and (5) consequently, defendants’ statements regarding Celsius’ outlook and expected financial performance were false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

To join the Celsius class action, go to https://rosenlegal.com/submit-form/?case_id=31677 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email case@rosenlegal.com for information on the class action.

No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook (NASDAQ:): https://www.facebook.com/rosenlawfirm/.

Attorney Advertising. Prior results do not guarantee a similar outcome.

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Contact Information:

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/237600

Stock Markets

XRAY DEADLINE NOTICE: ROSEN, A TOP RANKED LAW FIRM, Encourages Dentsply Sirona Inc. Investors with Losses in Excess of $100K to Secure Counsel Before Important January 27 Deadline in Securities Class

Published

2 hours ago

January 20, 2025

New York, New York–(Newsfile Corp. – January 19, 2025) – WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of Dentsply Sirona Inc. (NASDAQ: XRAY) between May 6, 2021 and November 6, 2024, both dates inclusive (the “Class Period”), of the important January 27, 2025 lead plaintiff deadline.

SO WHAT: If you purchased Dentsply Sirona common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

WHAT TO DO NEXT: To join the Dentsply Sirona class action, go to https://rosenlegal.com/submit-form/?case_id=31762 or call Phillip Kim, Esq. at 866-767-3653 or email case@rosenlegal.com for more information. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than January 27, 2025. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action (WA:) Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.

DETAILS OF THE CASE: According to the lawsuit, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose material facts necessary to make the statements made, in light of the circumstances in which they were made, not false and misleading. In truth, Byte aligners had been causing serious injuries to patients since at least May 2021, as revealed in backlogged injury reports that Dentsply Sirona filed with the U.S. Food and Drug Administration (“FDA”) over the course of 2024. At least part of the problem was that customer service employees and overseeing dentists were incentivized to enroll contraindicated patients who had other dental issues which should have made them ineligible for Byte treatment. As a result, defendants’ positive statements concerning Byte’s customer experience, and the expansive network of dentists overseeing and controlling each customer’s treatment, were materially misleading and/or lacked a reasonable basis. In addition, Dentsply Sirona concealed the fact that its high conversion rates were due to sales incentives to enroll contraindicated patients. When the true details entered the market, the lawsuit claims that investors suffered damages.

To join the Dentsply Sirona class action, go to https://rosenlegal.com/submit-form/?case_id=31762 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email case@rosenlegal.com for information on the class action.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook (NASDAQ:): https://www.facebook.com/rosenlawfirm/.

Attorney Advertising. Prior results do not guarantee a similar outcome.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/237618