Inflation has ‘probably’ peaked, fund manager says
After US wholesale and consumer inflation came in softer than expected over the past week, we may have seen price increases peak, according to Dan Avigad, partner and portfolio manager at Lansdowne Partners.
“Inflation has peaked, probably, and is going to most likely 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 on equity markets over the next six months,” Avigad told CNBC’s Joumanna Bercetche at the Sohn London Investment Conference on Wednesday.
“There is an argument that if equity markets and bond markets rally very aggressively, it amounts to an easing of financial conditions too early in the cycle for what central banks want to see.”
– Elliot Smith
Stocks on the move: Billerud down 6%, Saab up 5%
Shares of Swedish pulp and paper manufacturer Billerud fell more than 6% in early trade to the bottom of the Stoxx 600 after Jefferies cut its rating of the stock to “underperform” from “hold.”
At the top of the index, compatriot aerospace and defense company Saab climbed 5%.
UK inflation hits 41-year high of 11.1% as food and energy prices continue to soar
UK inflation jumped to a 41-year high of 11.1% in October, exceeding expectations as food, transport and energy prices continued to squeeze households and businesses.
“Indicative modeled consumer price inflation estimates suggest that the CPI rate would have last been higher in October 1981, where the estimate for the annual inflation rate was 11.2%,” the Office for National Statistics said.
On a monthly basis, the CPI rose 2% in October, matching the annual CPI inflation rate between July 2020 and 2021.
Read the full story here.
– Elliot Smith
Biden says it’s ‘unlikely’ the missile that killed two people in Poland was fired from Russia
US President Joe Biden said it’s “unlikely” that a missile that killed two people in Poland was fired from Russia, citing the trajectory of the rocket.
Asked by a reporter if the missile was fired from Russia, Biden said: “There is preliminary information that contests that, I don’t want to say that until we completely investigate.”
He went on to say: “It’s unlikely… in the minds of the trajectory, that it was fired from Russia. But, we’ll see.”
Biden reiterated that the leaders of the Group of 7 agreed to support an ongoing investigation into the explosion.
“We agreed to support Poland’s investigation into the explosion in rural Poland near the Ukrainian border. And I’m going to make sure we figure out exactly what happened,” he told reporters on the sidelines of the G-20 summit in Bali, Indonesia .
– Jihye Lee
World Bank says Russia is ‘wrecking their own future’ through Ukraine war
World Bank President David Malpass said Russia is hurting its own future by continuing a war on Ukraine.
“It weakens Russia, it makes them outcasts and it really is wrecking their own future,” he said. “I’m hurt by 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 about the missiles, but as far as the G-20 [goes]there’s been unity, broad unity of G-20 countries against war.”
– Jihye Lee
CNBC Pro: Analysts think these EV-related stocks in the lithium supply chain could be winners
Goldman Sachs says the peak in battery metal prices is approaching.
Given this outlook, CNBC Pro screened the Global X Lithium & Battery Tech ETF for stocks related to electric vehicle makers that could offer opportunities for investors.
These stocks are expected to post full-year growth in 2023, are buy rated by the majority of analysts covering them, and have average upside potential of at least 20% over the next 12 months.
— Xavier Ong
CNBC Pro: These biotech stocks look cheap — and analysts give 2 more than 100% upside
Fundstrat said some biotechnology stocks are worth following and that the sub-sector is currently the strongest within the health industry.
Mark Newton, head of technical strategy at research firm Fundstrat, said the sector is “a key part of the reason why Healthcare likely shows strong 4Q [fourth quarter] outperformance,” according to a Nov. 14 note.
To identify biotech stocks that look cheap and are expected to rally looking ahead, CNBC Pro screened the iShares Biotechnology ETF on FactSet. Here are 8:
CNBC Pro subscribers can read more here.
— Weizhen Tan
CNBC Pro: The Fed ‘pivot’ is dead, says strategist, who shares where to invest right now
Fidelity says the notion that a pivot from the Federal Reserve’s hawkish stance will benefit equities is “dead.”
Salman Ahmed, global head of macro and strategic asset allocation at the investment management firm, said he is concerned about short-term stock performance and suggests investors consider a different asset class instead.
— Ganesh Rao
European markets: Here are the opening calls
European markets are set to open lower on Wednesday as political instability gripped the region after a missile hit Polish territory Wednesday, ratcheting up tensions between Russia and NATO.
The UK’s FTSE index is expected to open 31 points lower at 7,328, Germany’s DAX down 121 points at 14,237, France’s CAC down 48 points at 6,580 and Italy’s FTSE MIB down 205 points at 24,405, according to data from IG.
Global markets will be watching developments in Ukraine following a massive missile strike across the country on Wednesday, and the fallout from the missile hitting Polish territory, although Moscow denies responsibility for the strike.
Earnings set to be released are from Alstom, Siemens Energy, Premier Foods, SSE, Experian and Man Utd and data releases include the latest UK inflation numbers for October.
— Holly Elliott