FED, Frederic Udaya, French Bank discussed on Bloomberg Daybreak Europe


Fed a message of patience empty and partners describes it as dovish taper underway not a hawkish one Yeah fascinating also we get the Bank of England decision of course today that looks to be on a knife edge We'll talk about the property market here in the UK does the jump in prices get beaten down as interest rates rise but also of course the big interview with substitution Frederic udaya 53% jump in trading from stocks and derivatives record revenue from financing and advisory at the French bank And in terms of the markets you say let's have a quick look at the data in that case So MSCI Asia Pacific index is up by half of 1% All country world index up by a tenth of 1% So after the fed as you mentioned we got a record close for Wall Street for the Dow the NASDAQ the Russell 2000 even at record highs and global stocks also hovering close to record levels this morning In terms of the bond market treasuries retreated the yield curve also saw a bit of steepening So reversing some of the flattening that we've seen recently and it remains steeper than before the fed decision this morning futures markets now pricing in 70% chance of fed hike next June all markets at fascinating head of the OPEC plus meeting $80 27 for wcai food features down by 7 tenths of 1% So that's a look at the markets Let's go to breaking lines either Bloomberg in the corporate earnings season BT Group they are coming through with the second quarter adjusted ebitda of 1.88 billion pounds that is a marginal beat on the 1.85 that was expected by the market They're confirming their outlook for fiscal year 2020 and 23 They're also announcing an interim dividend for the first half of 2.31 per share stocks up about 8% this year coming Okay so that's BT Meanwhile Sainsbury's one of the big four supermarket chains in the UK it says that first half adjusted pre-tax profit came in at 371 million pounds that was a beat on the estimated 350 million They benefited from higher in home grocery consumption They are also in a good position as they head into Christmas that according to Sainsbury's but the industry faces labor and supply chain challenges has been huge in Britain and they continue to expect customer behavior to normalize their big pandemic winners then things got a little bit tougher after that Let's talk about Nintendo I like to think of myself as a big gamer not so much this space but they're coming through then with a fiscal year total switch sale number of 24 million units they saw 25.5 million units so a little bit shorter than what the market had been looking for But they're seeing fiscal year operating income at ¥520 billion which is actually higher than the initial guidance of 500 billion in the stockman on the pressure throughout 2021 Okay you said what's your favorite game then You know what I like racing simulations Anything that puts me in a car and gets me up to speed I'm on board with that I learned something new about you this morning excellent Okay let's go on to our top stories then shall we Stick with earnings Credit Suisse posted lower profit in the third quarter and signaled that it expects a net loss in the last three months of the year So the Swiss lender also unveiled a new strategy that reorganizes the wealth unit and dials back risk in the investment bank And staying with some of the banks third quarter numbers from sausage in Iran French lender extended a rebound in equity trading to be the top Wall Street banks It almost doubled profit from a year earlier and saw a 53% increase in trading and derivatives and record revenue financing and advisory and lower provisions This is important for bad loans The one source a fixed income trading performance that was worse than peers Okay and turning to the fed once more so as we expected the Central Bank will begin trimming its asset purchases by $15 billion this month Policymakers also voiced more concern about inflation at their meeting so Cher Jay Powell warned that supply chain imbalances have meant sizable price increases in some U.S. sectors Supply constraints have been larger and longer lasting than anticipated Nonetheless it remains the case that the drivers of higher inflation have been predominantly connected to the dislocations caused by the pandemic Specifically the effects on supply and demand from the shutdown the uneven reopening and the ongoing effects of the virus itself Well the fed held the benchmark interest rate target near zero and Powell did his best to dealing tapering from the outlook for rates lift off Our decision today to begin our tapering our asset purchases does not imply any direct signal regarding our interest rate policy We continue to articulate a different and more stringent test for the economic conditions that would need to be met before raising the federal funds rate While Powell also said that maximum employment may be reached next year in America And after the fact delivered its latest interest rate decision Guggenheim CIO Scott minor joined Bloomberg surveillance He said the Central Bank is setting itself up for a policy error There is no way that we have engaged in the scale of asset purchases in the pandemic where there is going to be a policy which ultimately is going to be perfect and not cause some sort of interruption to asset prices or something else that would be destabilizing As the Guggenheim CIO Scott minor speaking to Bloomberg Okay well let's get more market reaction Then to the fed decision bring in our markets live editor Heather Burke Heather good morning markets look a lot calmer after that fed announcement on tapering But what are the risks ahead Good morning There's definitely the biggest risk is that the global bull market is still impatient And our worried that central bankers might be too complacent about inflation being out of control So that is going to be a big risk The market is currently pricing June 2022 as a live meeting for a quarter point fed rate hike But the fear is that if inflation is not so transitory that they could have to move that forward along with a lot of other G ten central banks And then here in the UK central bankers are singing a different tune the Bank of England could become the world's first major Central Bank to high grade since the pandemic when it meets today But expectations are split aren't they Yes So markets are positioned for a 15 basis point increase and we've seen that kind of with the big sell off and build so we've seen in the last couple of weeks economists are split for a decision So what happens is a lot is going to depend on for guilt on eco forecast and what that says on a future rate hike path But one of the problems is is that some on the BE might want to wait for the latest jobs data and see how that the impact of the furlough program But that data is not going to be available to later in the month Okay Yes exactly So that's a big question isn't it about what the furlough scheme did to employment Thanks so much Heather for joining us Heather Burke for a show market commentary and analysis Check out markets live On your Bloomberg terminal In Europe the ECB president Christine Lagarde renewed her pushback against market bets for an interest rate increase in 2022 In our forward guidance on interest rates we have clearly articulated the three conditions that need to be satisfied before rates will start to rise And despite the current inflation surge the outlook for inflation over the medium term remains substituted Speaking in a separate interview on Wednesday la guard said that 2022 was off the chart in terms of interest rates And finally after all that Central Bank news Glasgow today So a statement outlining a deal to.

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