Newscasts - Europe Today: ECB set to cut rates again
12/12/2024 11:00
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_o2euca2c&referenceId=1_o2euca2c&pageId=Newscasts Source: 'Reuters - Business videos' Description: The European Central bank is expected to cut rate by 25 basis points later today. Investors will be looking out for more details about the bank's future easing path. Short Link: https://refini.tv/3OTiph0 Video Transcript: The European Central Bank looks all but certain to cut rates again. Welcome to Europe Today. I’m Ramzan Karmali. Well, later today at 1:15 PM GMT, the ECB is expected to cut its deposit rate from 3.25% to 3%. There's also a growing expectation that policymakers will signal further easing in 2025, as inflation in the Eurozone is nearly back at its target. The ECB has already cut rates at three of its last four meetings. But some worry that the policy isn't being eased fast enough. With an increased risk of a recession, political uncertainty in France, and Germany, and the prospect of a potential trade war with the US. Meanwhile, the Swiss National Bank cut its interest rates by 50 basis points, that's its biggest reduction in almost ten years. As it sought to stay ahead of expected cuts by other central banks and cap the rise of the Swiss Franc. Onto the European equity markets now, and shares seem to lack direction, as investors wait for that ECB rate decision. Meanwhile on Wednesday, Wall Street experienced a tech-led rally as the US inflation reading cemented bets for a Fed cut next week. Some corporate news now, and Lonza shares jump to the top of the STOXX 600 and are set for their best day since July. The Swiss drugmaker said it plans to exit its capsules and health ingredients business, after demand for pharmaceutical supplies declined following the surge during the pandemic. SThree shares fell by as much as 35% in early trade. The British Recruit Award annual profits would be over a third-lower than previously stated. It blamed tough-hiring conditions, particularly in Europe. Currys has warned that price rises were inevitable, after the government’s tax-raising budget, but the British electrical retailer still kept its forecast for annual profit growth as it reported a return to first half profit. Sales in the UK more than offset weak performance in its Nordic’s business, its shares jumped around 8% at the open. De La Rue has posted a 7.6% fall in first-half operating profit. The British Bank note printer has been hurt by persisting weakness in its currency division. The 200-year-old company has been trying to recover from a downturn in cash demand post-pandemic, as contactless payment have become more popular. However, its shares were trading higher this morning. The UK regulators decision over SHEIN’s London listing is taking longer than usual, that’s according to two sources close to the matter. The reason for the delay is that the FCA is checking the clothing retail company’s supply chain oversight, and assessing legal risks, after an advocacy group for China’s weaker population challenged the listing. And finally, Britain's housing market strengthened further in November, that’s according to the Royal Institution of Chartered Surveyors. RICS monthly house-price-gauge jumped to far better than expected, plus 25 in November, from plus 16 in October, its highest level since September 2022. However, RICS said sales might start to slow next year as consumer and business confidence appear to be weakening, and markets had scaled back their expectations of Bank of England rate cuts. And that's it from Europe Today