November, 2022

• 25 November

  Riksbank sees more hikes after rate salvo on cusp of slump

  

    Bloomberg The Riksbank raised borrowing costs by 75 basis points and signalled more tightening is needed to tame inflation even as it predicted a worsening slump for Sweden’s economy. In his final decision as central-bank governor, Stefan Ingves and his colleagues lifted the key interest rate to 2.5%, the highest since 2008. Most economists anticipated the move. Officials raised …

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• 25 November

  BOE must continue raising rates regardless of pain, says Ramsden

  

    Bloomberg The Bank of England (BOE) must continue raising interest rates to bring inflation back to 2% even if it means more hardship for households, Deputy Governor Dave Ramsden said. Citing concerns about the tight labour market and high inflation expectations, Ramsden said his bias was for further tightening. The BOE has raised rates eight times since December to …

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• 25 November

  Australia set to raise key rate to 3.6% to cool prices

  

    Bloomberg Australia’s central bank will raise interest rates three more times and then pause from mid-2023 as it tries to slow demand and consumer prices without triggering a recession, economists say. The Reserve Bank will lift its cash rate to 3.6% by June, the median estimate of 35 analysts in a Bloomberg survey showed, up from last month’s forecast …

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• 25 November

  Libor jumps to highest in 14 years

    Bloomberg The three-month London interbank offered rate for dollars climbed to the highest level since the financial crisis in an otherwise quiet day for the front-end of fixed income markets. The benchmark rate for lending between banks rose for the third straight session, climbing roughly 5.9 basis points to 4.75729%, the highest since October 2008. The spread of Libor …

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• 25 November

  China signals likely reserve requirement cut to aid growth

  

    Bloomberg China signalled that more monetary policy stimulus — including a cut to the reserve requirement ratio — is on the table as it looks to boost lending and support the flagging economy. Tools will be used “in a timely and appropriate manner” to maintain reasonably ample liquidity, the State Council said, broadcaster CCTV reported. The People’s Bank of …

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• 25 November

  Stocks fluctuate as traders mull rates, China stimulus

  

    Bloomberg US equity futures and European stocks fluctuated as investors assessed prospects for less-aggressive central bank tightening and weighed China’s latest move to stimulate its economy as Covid-19 infections rise. S&P 500 contracts inched higher before an abbreviated Thanksgiving weekend cash trading session on Wall Street. Those on the Nasdaq 100 were steady. Energy companies climbed in premarket as …

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• 25 November

  Foreign investors pile into Taiwan stocks by most in 15 years

  

  Bloomberg Foreign investors are piling back into Taiwan’s market thanks to expectations of slower global rate hikes, helping make the benchmark gauge one of the region’s best performers this month. The stock rebound and influx of foreign capital come ahead of local elections, with polls serving as a show of confidence in the ruling Democratic Progressive Party ahead of a …

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• 25 November

  Oil falls as Russian price-cap talks drag on, demand lags

  

  Bloomberg Oil falls for a second day as the European Union (EU) considered a higher-than-expected price cap on Russian crude and evidence mounted of challenges to demand. West Texas Intermediate slipped below $78, trading in a narrow range and with volumes thin due to a US holiday. EU diplomats are locked in negotiations over how strict the Russian mechanism should …

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• 24 November

  Qantas boosts profit forecast as air travel rebound accelerates

  

  Bloomberg Qantas Airways Ltd. upgraded profit expectations for the final six months of 2022 just weeks after its initial forecast, highlighting the intensity of a demand rebound that has sent fares soaring. The airline’s shares jumped. The Australian airline said it expects underlying profit before tax in the period of between A$1.35 billion ($900 million) and A$1.45 billion. That’s A$150 …

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• 24 November

  Airlines still see return to profit next year: IATA

  

    Bloomberg The airline industry remains likely to return to profit next year, with high employment levels and growth in key economies sustaining demand even as household bills spiral, the head of its main lobby group said. Carriers should achieve positive earnings in 2023 for the first time since 2019, before the coronavirus pandemic roiled global travel, International Air Transport …

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