Newscasts - Europe Today: The ECB looks set for a second straight rate cut

Sartorius AG

17/10/2024 11:00

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Source: 'Reuters - Business videos'

Description: All eyes will be on the European central bank later today. It's
expected to deliver the first back to back rate cut in 13 years as inflation
looks more and more under control and the euro zone's economy stagnates.
Short Link: https://refini.tv/40dpjVf

Video Transcript:

The ECB looks set for a second straight rate cut. Welcome to Europe Today. I'm
Ramzan Karmali. Well, all eyes will be on the European Central Bank later
today. It's expected to deliver the first back-to-back rate cut in 13 years as
inflation looks more and more under control and the Eurozone's economy
stagnates. A quarter point cut would lower the rate that the ECB pays on bank
deposits to 3.25% and money markets have almost fully priced in three further
reductions through to March 2025. Onto the markets now and European shares are
higher on Thursday. Investors are looking for a dovish outlook on top of that
fully priced in 25-basis-point cut. Markets are also coping with a mixed set
of corporate earnings. Finnish bank Nordea and German farmer Sartorius are
among the winners, while British firms Rentokil and Mondi among the losers.
Another winner today, though, was Entain. The British gambling group raised
its 2024 net gaming revenue outlook and said it now expects core profit for
the year to be towards the top end of the GBP1 billion to GBP1.1 billion
range. The firm, which owns the likes of Ladbrokes and Coral, got a boost from
the Euros, the Premier League and American Football. Earlier this week,
reports the government was plotting a tax raid on the sector, sent its shares
down 8% on Monday. Its day shares are up over 4.5% at last check. Nestle is
revamping its senior leadership team as it cut its full year sales outlook. As
inflation has eased, many of Nestle’s rivals have slowed price increases
but the Swiss firm did not ease up quickly. Just two months ago, CEO Mark
Schneider was ousted and his replacement, Laurent Freixe, said that he wanted
to reduce the size of the executive board and streamline the overall company.
Nestle shares fell at the open. Nokia reported a 9% rise in third-quarter
operating profits. The Finnish telecom equipment supplier echoed rival
Ericsson when it said it was seeing demand recovery in some areas. However,
net sales fell 8%, mainly due to India that sent its share price over 4% lower
in early trade. Novartis has lost its latest bid to keep a generic version of
its top selling heart failure drug Entresto off the US market by blocking
regulators from approving it. A Washington judge said the US FDA did not
overstep its authority by approving MSN Pharmaceuticals’ generic version.
Novartis said it would appeal the decision. And oil prices were little changed
on Thursday as investors continue to keep an eye on developments in the Middle
East and possibly more stimulus details out of China. Later today, we get the
release of official US oil inventory data. And that's it from Europe Today