US stocks open higher
US stocks open higher Thursday after the economy grew at a faster than expected pace in the third quarter.
The Dow Jones Industrial Average rose 1.45% in early trades, while the S&P 500 rose 0.4%. The Nasdaq Composite was trading down 0.25%.
— Karen Gilchrist
Stocks on the move: Danske Bank up 12%, Credit Suisse down 13%
Danske Bank shares jumped 12% on Thursday after the lender said it was close to settling 15.5 billion Danish kroner ($2.08 billion) amid investigations on money laundering in Estonia.
Swiss credit shares fell more than 13% to the low of the Stoxx 600 in mid-afternoon after the The Swiss lender posted a colossal loss in the third quarter and unveiled a radical restructuring plan.
ECB raises rates by 75 basis points and announces new conditions for European banks
The European Central Bank on Thursday announced an interest rate hike of 75 basis points – its third consecutive increase this year – while revealing new conditions for European banks.
The latest rate hike takes the ECB’s main benchmark from 0.75% to 1.5%, a level not seen since 2009 before the sovereign debt crisis. This comes after the central bank raised rates by 50 basis points in July and 75 basis points in September.
The ECB also announced that it was changing the terms and conditions of its Targeted Longer-Term Refinancing Operations, or TLTRO, a tool that offers European banks attractive borrowing terms designed to incentivize lending to the economy. real.
Credit Suisse shares the tank
Credit Suisse shares are down more than 14% in European morning trade. Here’s how they’ve fared over the past five days:
Credit Suisse shares down 14% after huge loss and corporate overhaul
Swiss credit shares fell more than 14% to the mid-morning Stoxx 600 low after the The Swiss lender posted a colossal loss in the third quarter and unveiled a radical restructuring plan.
Leading the European blue chip index, Swedish real estate company SBB climbed more than 10% after a strong third-quarter earnings release.
Oil giant Shell reveals plans to boost dividend as it reports third-quarter earnings
The sign of a Shell gas station is seen in front of a burning pilot flame atop a flare at the refinery at the Shell Energy and Chemicals Park Rheinland in Godorf near Cologne, Germany, August 3, 2022.
Wolfgang Rattay | Reuters
Shell reported third-quarter adjusted profit of $9.45 million, in line with market expectations, but lower refining and trading revenue ended its streak of record quarterly profits.
The oil major has announced its intention to increase the dividend per share by around 15% for the last quarter of the year, which will be paid in March.
The company also announced a new share buyback program, which aims to bring in an additional $4 billion in distributions and is expected to be completed by the next earnings release.
The stock jumped nearly 4% at the start of European trading on the results.
Watch CNBC’s full interview with Credit Suisse CEO Ulrich Koerner as the bank undergoes a major overhaul
Watch CNBC’s full interview with new Credit Suisse CEO Ulrich Koerner as he describes a 4 billion Swiss franc ($4.05 billion) fundraising program under an overhaul major strategy of the bank.
Stocks on the move: Credit Suisse down 7%, Aegon up 7%
Earnings were the main driver of individual stock price action in Europe on Thursday.
Swiss credit shares fell more than 7% in early trading after the The Swiss lender posted a colossal loss in the third quarter and unveiled a radical restructuring plan.
At the bottom of the Stoxx 600, the Swedish engineering consultancy Sweco fell more than 9% after disappointing third-quarter results.
At the top of the index, Aegon shares rose more than 7% after the insurer announced it would sell its Dutch insurance operations to ASR in a cash and stock deal worth around 4.9 billion euros ($4.93 billion).
Credit Suisse posts huge third-quarter loss as it announces major strategic overhaul
Signage hangs above the entrance to a branch of Credit Suisse Group AG in Zurich, Switzerland, Sunday, September 25, 2022. Inflation in Switzerland has more than doubled since the start of the year and the Secretary of State for the Economy expects it to occur at a three-decade high of 3% for 2022. Photographer: Pascal Mora/Bloomberg via Getty Images
Bloomberg | Bloomberg | Getty Images
Swiss credit Thursday saw a quarterly loss far worse than analysts’ estimates as it announced a massive strategic overhaul.
The troubled lender posted a net loss of 4.034 billion Swiss francs ($4.09 billion) in the third quarter, but noted that the magnitude of the loss reflected a write-down of 3.655 billion Swiss francs related to the ” revaluation of deferred tax assets following the strategic review.”
In its widely anticipated strategic shift, Credit Suisse has pledged to “radically restructure” its investment bank to significantly reduce its exposure to risk-weighted assets, which are used to determine a company’s capital needs. bank. It also aims to reduce its cost base by 15%, or 2.5 billion Swiss francs, by 2025.
Unilever quarterly sales rise 10.6%
Unilever raised its sales estimate and reported a better-than-expected 10.6% increase in sales in the third quarter. Analysts were expecting growth of 8%.
The company has raised consumer prices over the past year to cope with skyrocketing costs.
CNBC Pro: Big profits at European banks — but don’t buy their stocks yet, strategist says
European markets: here are the opening calls
European markets are expected to open slightly lower this morning, with the FTSE down 26 points to 7,025 and the German DAX index down 60 points to 13,135.
France’s CAC will be down 23 points to 6,254 while Italy’s MIB index will be down 130 points to open at 21,159, according to IG data.
CNBC Pro: These ‘All-Weather’ Stocks Can Protect Your Portfolio in a Recession, Says Outperforming Fund Manager
Top Wall Street executives say a recession is coming. But these three stocks “will work in any kind of economic environment,” says Brian Arcese of Foord Asset Management.
The portfolio manager, whose funds have outperformed the market this year, explained how investors can “recession-proof” their portfolios.
Pro subscribers can find out more here.
— Zavier Ong
Meta sinks 19% on disappointing outlook, earnings miss
Shares of Meta platforms fell over 19% in extended trading On Wednesday, after Facebook’s parent company shared a weak fourth-quarter forecast and earnings estimates fell, it showed Wall Street expectations.
Meta Platforms reported adjusted earnings per share of $1.64 on revenue of $27.71 billion. Analysts polled by Refinitiv had expected earnings of $1.89 per share on $27.38 billion in revenue. The tech giant also recorded its second straight decline in revenue.
For the fourth quarter, the company said it expects revenue to be between $30 billion and $32.5 billion, versus consensus estimates of $32.2 billion.
Meta Platforms faces a host of challenges, including headwinds from Apple’s privacy changes and a difficult advertising environment as recession fears grow.
As of Wednesday’s close, stocks are down more than 61% this year.
CNBC Pro: Stocks and bonds are in trouble. Try These Strategies Say Goldman and Others
Stocks and bonds have struggled this year, leaving investors with few alternatives.
Analysts share their strategies on how to thrive in these difficult conditions – including one behind the success of an index that was “almost a mirror image” of the S&P 500’s losses.
Chinese industrial profits fell 2.3% for the first nine months of the year
Industrial profits in China from January to September fell 2.3% from the same period a year ago, according to official data from the National Bureau of Statistics.
The decline is slightly steeper than the 2.1% decline reported for the January-August period of the year.
Profits for manufacturing companies fell 13.2% in the first nine months of the year, the data showed.