Netflix has added one other 5m subscribers as viewers continued to flock to the streaming large for hits corresponding to Emily in Paris.
The US tech firm noticed its subscriber base develop to nearly 283m within the third quarter because it shrugged off the affect of final yr’s Hollywood actors’ and writers’ strikes.
Revenues have been up 15pc to $9.8bn, whereas earnings rose to $2.4bn as the corporate continues to profit from its crackdown on password sharing.
In a letter to shareholders, Netflix mentioned it was centered on profitability because it ramps up its promoting providing.
It mentioned: “We have much more work to do improving our offering for advertisers, which will be a priority over the next few years.”
The newest figures have been extra muted than the surge in earnings posted within the second quarter, when Netflix cashed in on new releases together with Baby Reindeer and the most recent sequence of Bridgerton.
But the corporate nonetheless pulled in viewers for brand new releases corresponding to Emily in Paris and The Perfect Couple.
Netflix mentioned it anticipated income development of 15pc within the ultimate three months of the yr, boosted by releases such because the second sequence of Squid Game, whereas it expects revenues to rise to as a lot as $44bn subsequent yr because of a mixture of subscriber development and worth will increase.
Read the most recent updates under.
09:35 PM BST
Join us within the morning for the most recent markets information
Thanks for becoming a member of us this night for the Netflix outcomes.
Chris Price might be again within the morning to cowl the opening of London’s markets. Do be a part of us then.
09:13 PM BST
Dow Jones closes greater
The Dow Jones Industrial Average closed greater this night, its fourth document shut within the final 5 days of buying and selling.
It got here as stronger-than-expected month-to-month retail gross sales indicated a sturdy US shopper and chip shares have been buoyed by an upbeat forecast by TSMC.
The different essential Wall Street benchmarks, the S&P 500 and the Nasdaq Composite, completed largely unchanged.
The Dow Jones Industrial Average rose 0.4, to shut at 43,241.71.
Josh Jamner, funding technique analyst at ClearBridge Investments, mentioned traders have been revising financial and earnings development expectations as sturdy knowledge eased worries a couple of recession. He mentioned:
Overall, it’s permitting the market to advance, however possibly in a considerably extra restrained trend than what in any other case is perhaps anticipated.
09:06 PM BST
Netflix predicts 15pc development subsequent quarter
Netflix has instructed traders that it’ll ship 14.7pc income development within the ultimate quarter of 2024, up from a development charge of 12.5pc for a similar interval final yr.
The streaming enterprise mentioned:
We’re happy that we’ve reaccelerated our development and, as we head into 2025, we count on to ship strong
income and revenue development by each bettering our core sequence and movie providing whereas investing in new
development initiatives like adverts and gaming.
Netflix shares are at the moment up 1.6pc in after-hours buying and selling.
09:03 PM BST
Netflix beat predictions by including greater than 5m subscribers
Netflix outcomes have simply been issued and the streaming large has revealed that it added greater than 5m prospects prior to now quarter.
That beats analyst estimates of 4.5m.
Revenues surged 15pc to $9.8bn.
Shares are fluctuating in after-hours buying and selling.
09:00 PM BST
Netflix inventory ‘very expensive’, says analyst
Netflix inventory has risen 93.5pc over the previous yr, so some analysts are questioning whether it is overprice.
Matthew Maley, chief market strategist at Miller Tabak + Co, instructed Bloomberg:
The inventory could be very costly, in order that they’re going to have to enhance the “E” a part of their “P/E” ratio if the inventory goes to proceed to advance.
They’re going to should proceed to increase their promoting partnerships globally to enhance their profitability in a major manner.
08:45 PM BST
Netflix shares drop forward of quarterly outcomes
Netflix shares are down 1.8pc right now, forward of its quarterly outcomes out after 9pm tonight.
The streaming large seemingly added 4m subscribers within the July-September interval, in line with analysts’ estimates compiled by LSEG.
But some traders are fearful in regards to the tempo of development at Netflix as positive factors from a password-sharing crackdown ease.
06:28 PM BST
Signing off…
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05:47 PM BST
Wall Street touches document highs
Wall Street rose this afternoon, with the S&P 500 and the Dow briefly reaching document highs, as chip shares surged and figures for retail gross sales have been stronger than anticipated.
Taiwan Semiconductor Manufacturing Company soared 12.2pc throughout buying and selling, whereas AI-trade favorite and TSMC buyer Nvidia gained 3pc, touching a document excessive.
The optimism unfold to different chip shares, sending the broader Philadelphia Semiconductor index 2.4pc greater.
Bret Kenwell, eToro US funding analyst, mentioned:
Combined with the sturdy jobs report earlier this month and lower-than-expected jobless claims this morning, current financial knowledge is pointing to a shopper that’s more healthy than many traders could have thought.
The S&P 500 is at the moment up 0.5pc, the Dow up 0.4pc and the tech-heavy Nasdaq up 0.6pc.
05:22 PM BST
Reeves’ funds might be inflationary, say economists
Rachel Reeves’ funds may push up inflation, main economists have mentioned.
Robert Wood and Elliott Jordan-Doak, at Pantheon Macroeconomics, instructed purchasers:
The authorities can be elevating taxes and spending on the identical time, with a broadly impartial impact on GDP. But the general impact might be inflationary, as tax hikes may decrease potential provide.
We assume Ms Reeves raises employer National Insurance contributions, and the Bank of England has estimated earlier cuts to NICs [National Insurance contributions] lifted potential provide. Probable rises in alcohol, tobacco and gasoline obligation additionally elevate inflation.
However, they concluded that bond markets “will be unruffled” by the Budget. They wrote:
Everyone has the comparability to a ‘Liz Truss’ second on their thoughts. But Ms Truss borrowed to chop taxes, whereas Ms Reeves is more likely to borrow to take a position, which might increase GDP and tax revenues durably, making debt extra reasonably priced.
Tax cuts principally simply present a short-lived inflationary ‘sugar boost’.
What’s extra, Ms Truss sidelined the fiscal watchdog, whereas Ms Reeves is protecting OBR forecasts central to the method.
05:10 PM BST
FTSE’s ‘missing link’ is best earnings, says Coutts
British shares are must ship higher earnings so as to gasoline sooner inventory market development, a number one non-public financial institution has mentioned.
Lilian Chovin, head of asset allocation at Coutts, mentioned:
What is lacking for the time being for British equities to begin performing higher and begin an uptrend, is absolutely earnings to begin delivering higher. That has been the lacking hyperlink.
It got here because the FTSE 100 closed at close to a five-month excessive, as pest management group Rentokil introduced an overhaul of its struggling North America enterprise, whereas traders continued to wager on additional charge cuts by the Bank of England (BoE).
The blue-chip index rose 0.7pc to shut at its strongest degree since late May, whereas the domestically centered FTSE 250 index climbed 0.6pc to shut at a greater than two-week excessive.
04:58 PM BST
Quarter of metropolis bus companies ‘at risk’ from Reeves’s Budget cuts
One in 4 bus companies in cities and cities face closure if specialist funding is withdrawn in Rachel Reeves’s Budget as feared.
The Bus Service Improvement Plan (BSIP), launched in 2022, is known to be within the Chancellor’s sights as she seeks financial savings to fill a claimed £22bn “black hole” in public finances.
Launched underneath Boris Johnson’s “bus back better” plan to encourage folks again onto public transport after Covid, the BSIP has turn out to be integral to the survival of many companies, in line with the Urban Transport Group, which campaigns on behalf of transport authorities in England.
Steve Warrener, the chairman, urged Ms Reeves to increase the BSIP, which is scheduled to run out in April, till a long-term plan to safeguard companies could be developed as a part of the Government’s spending overview.
BSIP will present £1.08bn of funding by the point it expires and the cash is especially important in supporting early morning and late evening companies, which play a vital position in serving to metropolis dwellers get to work however wouldn’t in any other case be viable with out assist.
Sunday buses would additionally face cutbacks, whereas nearly two thirds of “socially necessary” routes which are totally funded by native authorities by means of BSIP grants may additionally stop, Urban Transport warned. These are routes that will not be commercially viable with out assist.
04:53 PM BST
FTSE closes up
The FTSE 100 closed up this afternoon by 0.7pc.
The high riser was Rentokil Initial, up 8.8pc, adopted by aerospace producer Melrose Industries, up 4pc.
At the opposite finish of the index, cardboard large Mondi fell 7.5pc, adopted by United Utilities, down 1.9pc.
Meanwhile, the mid-cap FTSE 250 rose 0.6pc.
The high riser was Hochschild Mining, up 9.4pc, adopted by Burberry, up 5pc.
The greatest faller was Tate & Lyle, down 3.6pc, adopted by recruiter Hays, down 3.5pc.
04:45 PM BST
Buy-now, pay-later (BNPL) introduced underneath FCA regulation
Millions of buy-now, pay-later (BNPL) buyers will obtain enhanced protections as Labour launches a long-delayed crackdown on the choice to bank cards.
The lenders, whose merchandise sometimes cut up purchases into three or extra chunks, might be required to hold out strict affordability checks on shoppers and can come underneath the supervision of the Financial Conduct Authority.
Companies corresponding to Sweden’s Klarna and the UK’s Zilch already conduct credit score checks on shoppers, though they accomplish that voluntarily as they aren’t at the moment obligatory.
Lenders may even have to make sure buyers get clear details about their borrowing and upfront details about any late charges or different hidden prices. Shoppers may even get better protections for returning defective or broken objects they purchase.
The BNPL business has boomed in recognition as shoppers select to separate their purchases, moderately than counting on extra conventional bank cards. BNPL corporations argue their merchandise are sometimes curiosity free, saving shoppers cash.
The authorities has launched a six-week session on its proposals, with plans to usher in a brand new regulation early subsequent yr that might be in pressure from 2026.
Proposals to manage the BNPL sector have been repeatedly delayed, regardless of its fast development and considerations shoppers may discover themselves in mounting debt.
Tulip Siddiq, Economic Secretary to the Treasury, mentioned:
Millions of individuals use buy-now, pay-later to handle their funds, however the earlier authorities’s dither and delay left them unprotected.
Our method will give buyers entry to the important thing protections supplied by different types of credit score whereas offering the sector with the understanding it must innovate and develop.
04:27 PM BST
ECB may ‘get on with’ half level charge cuts
European rate-setters may supersize their charge cuts and ship a half a proportion level reduce in future, a euro zone economist has mentioned.
Jack Allen-Reynolds, deputy chief euro zone economist at Capital Economics, mentioned:
If exercise indicators stay weak and home worth pressures proceed to ease, they may resolve to get on with it and reduce by 50bp [50 basis points, or half a percentage point]…
Before the worldwide monetary disaster, 50bp rate of interest cuts by the ECB have been extra widespread than 25bp [quarter point] reductions. Circumstances right now are completely different, but when ECB policymakers are satisfied that they should hold slicing, we expect they’d not draw back from a 50bp reduce at one of many forthcoming conferences.
Between 1999 and 2003, the ECB reduce its essential refinancing charge (which on the time was crucial coverage charge for setting the financial coverage stance) by 50bps 5 instances, in comparison with simply three 25bp cuts.
After that there have been no additional charge cuts till the worldwide monetary disaster. Two of the 5 50bp reductions got here within the wake of the 9/11 terrorist assaults, so have been arguably distinctive, however all 5 got here in opposition to a backdrop of quickly deteriorating prospects for financial development and inflation.
04:22 PM BST
Wall Street reveals ‘schizophrenic behaviour’ in direction of chip shares
Wall Street stays constructive this afternoon, with the S&P 500 up 0.1pc, whereas the tech-heavy Nasdaq is up 0.3pc.
Technology shares, notably chips, are offering a lot of the upside muscle right now after Taiwan Semiconductor Manufacturing Company (TSMC) beat earnings estimates and forecast a soar in fourth-quarter income, serving to to ease fears of softening demand within the sector.
Chuck Carlson, chief govt at Horizon Investment Services in Indiana, mentioned:
You have this schizophrenic behaviour towards chips this week. We had ASML’s disappointing steerage and that drove a pointy decline.
But then you might have TSMC popping out and beating estimates and that’s indicative of what occurs throughout earnings season the place even inside sizzling sectors you’ve bought winners and losers and the market’s going to react to these specific earnings on that individual day.
04:15 PM BST
Denmark cuts rates of interest
Denmark has reduce rates of interest by 1 / 4 level because it mirrors the European Central Bank.
The Danish central financial institution has reduce its rate of interest to 2.85pc from 3.1pc in a extensively anticipated transfer.
It mentioned:
The rate of interest discount is a consequence of the discount by the European Central Bank of its essential financial coverage charge, the deposit facility charge, by 0.25 proportion level. Thereby, the financial coverage unfold vis-á-vis the euro space will stay unchanged.
04:06 PM BST
Euro falls in opposition to the pound and greenback
The euro has fallen in opposition to the pound and the greenback because the European Central Bank reduce rates of interest.
Axel Rudolph, senior technical analyst at on-line buying and selling platform IG, mentioned:
Though extensively anticipated, the ECB’s [quarter percentage] level charge reduce of its deposit charge to three.25pc, following related strikes in June and September, weighs on the the euro. Versus the dollar it slid under the $1.0900 mark and trades in two and a half yr lows.
Unexpectedly falling US preliminary jobless claims and different constructive US knowledge led to extra dollar appreciation and GBP/USD slipping to a two-month low under the $1.3000 mark …
Western inventory indices benefitted and rose, some such because the German Dax, US Dow and S&P 500 hitting new document highs.
04:02 PM BST
European shares present ‘cautious optimism’ after charge reduce
European shares have risen 0.9pc right now, however a lot of the rise came about earlier than right now’s European Central Bank rate of interest announcement.
Sam North, market analyst at funding platform eToro, mentioned:
Market reactions have been tempered: the [European index] Stoxx 600 confirmed cautious optimism and the euro edged up barely in opposition to the greenback.
03:49 PM BST
Euro zone yields blended after ECB choice
Euro zone authorities bond yields are blended this afternoon after the European Central Bank delivered a extensively anticipated quarter of a proportion level charge reduce, with traders betting on the slight likelihood of a half level reduce in December.
The ECB lowered rates of interest for the third time this yr, mentioning that inflation within the euro zone is now more and more underneath management and the financial outlook has worsened.
Germany’s 10-year bond yield, the benchmark for the euro zone bloc, rose to 2.224pc from 2.188pc final evening.
Holger Schmieding, chief economist at service provider financial institution Berenberg, mentioned:
With her feedback right now, [ECB president Christine] Lagarde “de facto” downgraded the outlook for inflation and financial development. All that implies the central financial institution will reduce once more in December.
03:44 PM BST
Wall Street pushed upwards by tech shares and powerful retail gross sales
Wall Street rose this afternoon, with the S&P 500 up 0.3pc. The Dow Jones Industrial Average of 30 main American companies rose by the same quantity and the tech-heavy Nasdaq gained 0.4pc.
The rise has been pushed by an upbeat forecast by Taiwan Semiconductor Manufacturing Company (TSMC) and a bigger-than-expected rise in month-to-month retail gross sales indicating that US shoppers are nonetheless upbeat.
Profit at TSMC, the world’s largest contract chipmaker, beat market estimates and the corporate forecast a soar in fourth-quarter income, pushed by demand for synthetic intelligence chips.
The chipmaker’s US-listed shares soared 10pc, whereas AI-trade favorite Nvidia gained 2.6pc.
The optimism unfold to different chip shares, with Broadcom including 3.5pc and Intel gaining 0.8pc.
Meanwhile, US retail gross sales elevated 0.4pc in September, barely than anticipated, supporting the view that the economic system maintained a powerful tempo of development within the third quarter.
03:39 PM BST
Lagarde says ECB is ‘breaking the neck’ of inflation
The European Central Bank is within the means of “breaking the neck” of inflation, its president Christine Lagarde mentioned this afternoon.
Ms Lagarde instructed a press convention that the ECB had not achieved “complete victory” over inflation however declining worth pressures have been a constructive signal.
“Have we broken the neck of inflation? Not yet. Are we in the process of breaking that neck? Yes,” she mentioned.
According to Ms Lagarde, the knowledge obtained by ECB rate-setters since their earlier assembly was “all heading in the same direction: downwards”.
The feedback got here after the ECB reduce rates of interest, upping the tempo at which it’s decreasing borrowing prices as inflation within the eurozone cools sooner than anticipated and the economic system loses steam.
The Frankfurt-based establishment lowered charges by 1 / 4 level, following a reduce of the identical measurement at its final assembly in September.
03:33 PM BST
Gold hits recent document amid falling inflation
Gold costs have hit document highs as central banks race to chop rates of interest amid falling inflation.
Bullion climbed as a lot as 0.7pc to hit $2,691.79 an oz, overtaking its final peak reached final month.
The valuable metallic is up 1.1pc this week as traders flip to the secure haven asset forward of the US election.
Its worth can also be surging greater in euros after the European Central Bank mentioned the “disinflationary process is well on track” because it reduce rates of interest for the third time this yr.
Thanks for following the stay updates to this point right now. I’ll hand you over now to Alex Singleton, who’s poised to ship an avalanche of recent information.
03:19 PM BST
ECB will make ‘faster’ rate of interest cuts, say economists
The European Central Bank is poised to speed up the tempo of rate of interest cuts because it faces weakening development, economists have steered.
Deutsche Bank’s chief European economist Mark Wall mentioned: “today’s decision represents a pivot point into a faster normalisation of monetary policy”.
Capital Economics mentioned policymakers may choose to chop charges by a half a proportion level as they proceed to cut back borrowing prices over the “next few meetings”.
Deputy chief eurozone economist Jack Allen-Reynolds mentioned: “All told, we wouldn’t be surprised if the ECB accelerated its rate cutting cycle at some point, and if the deposit rate ends up lower than 2.5pc.”
The ECB has been slicing rates of interest since June, down from a document excessive of 4pc to three.25pc right now, together with reductions at back-to-back conferences.
GianLuigi Mandruzzato, senior economist at EFG Asset Management, added: “The weak growth outlook for the euroarea economy is likely the main factor behind the acceleration in the pace of rate cuts compared to the soft guidance President Lagarde gave after the September meeting.
“Although the ECB did not pre-commit to any specific rate path, we believe that downside risks to growth in a context of easing inflationary pressure will lead to more rate cuts starting in December and continuing in 2025 until interest rates are back around a neutral level, that the ECB itself estimates around 2pc.”
🇪🇺 ECB overview: learn my lips.
Our impression is that the bar for the ECB to chop charges at each assembly is low. Given the headwinds to development, not least associated to fiscal tightening, the chance is that the ECB must reduce charges even decrease under impartial (chart and f/c @nghrbi). pic.twitter.com/zaQS43mjvD— Frederik Ducrozet (@fwred) October 17, 2024
03:00 PM BST
Families will really feel poorer any longer, says IMF boss
Families will really feel poorer any longer regardless of the upcoming finish of the inflation disaster which despatched costs surging all over the world, the pinnacle of the International Monetary Fund has warned.
Kristalina Georgieva, managing director of the IMF, mentioned the “global inflation wave is in retreat” after central banks raised rates of interest to fight surging costs.
Inflation in Britain peaked at 11.1pc in October 2022 as costs throughout the globe have been pushed greater following Vladimir Putin’s invasion of Ukraine, which raised vitality prices and disrupted provide chains already in turmoil after the pandemic.
In her speech opening the IMF and World Bank’s annual assembly in Washington DC, Ms Georgieva mentioned there wouldn’t “be any victory parties” over declining inflation, which fell to 1.7pc in each the UK and the eurozone in September.
She mentioned: “For one thing, inflation rates may be falling, but the higher price level that we feel in our wallets is here to stay.
“Families are hurting, people are angry. Advanced economies saw inflation rates at once-in-a generation highs. So too did many emerging market economies.
“But look how bad the situation was for the low income countries.
“At the country level and at the level of individuals, inflation always hits the poor the hardest.”
02:39 PM BST
S&P 500 hits document excessive amid retail gross sales increase
The S&P 500 surged to a recent document excessive as buying and selling started on Wall Street after as an upbeat forecast from chip maker TSMC boosted semiconductor shares.
The S&P 500 rose 33.1 factors, or 0.6pc, on the open to five,875.62 because it was additionally boosted by a bigger-than-expected rise in September retail gross sales, which indicated the US shopper stays sturdy.
The Dow Jones Industrial Average rose 165.37 factors, or 0.4pc, to 43,243.07​, whereas the Nasdaq Composite rose 170.1 factors, or 0.9pc, to 18,537.21.
02:24 PM BST
Middle East battle a ‘big concern’, says Lagarde
European Central Bank chief Christine Lagarde instructed reporters in Ljubljana that she is anxious in regards to the financial penalties of the “horrifying” main battle within the Middle East.
Ms Lagarde mentioned: “We are looking at the economic consequences, and we are looking in particular at the impact that this conflict could have on trade.
“That part of the world is very much open to trade and the passing of ships of all sorts. We are also very attentive to the price of oil that can be impacted.”
02:15 PM BST
Trump would threat eurozone economic system, warns Lagarde
Christine Largarde has warned {that a} second Donald Trump’s presidency can be a threat to the eurozone economic system because the ECB reduce rates of interest for the third time this yr.
The President of the European Central Bank was requested how she thought a return of Donald Trump to the White House and his plan to impose tariffs would alter the outlook for development and inflation within the euro space.
She mentioned: “Trade is obviously an important element and as part of the drivers of activity going forward we obviously have consumption and investment but we also have trade.
“Any restriction, any uncertainty, any obstacles to trade matters for an economy like the European economy, which is very open.
“Trade trades within itself, of course, but also trades with the rest of the world.
“Any hardening of the barriers, the tariffs, the additional obstacles on that possibility to trade with the rest of the world is obviously a downside.”
01:58 PM BST
Lagarde says there are ‘downside’ dangers to eurozone economic system
Christine Lagarde mentioned that inflation is predicted to rise within the coming months however would then decline to the 2pc goal “in the course of next year”.
However, she mentioned the “risks to economic growth remain tilted to the downside”.
“This could be amplified by geopolitical risks”, she mentioned, pointing to Russia’s “unjustified” battle in Ukraine and the battle within the Middle East.
Growth is also decrease if the affect of document excessive rates of interest used to fight inflation seems to be stronger than anticipated.
01:54 PM BST
Lagarde: Eurozone economic system ‘weaker than expected’
Christine Lagarde has begun her press convention in Ljubljana, Slovenia, by saying that the eurozone economic system “has been somewhat weaker than expected”.
She mentioned the ECB had reduce rates of interest as manufacturing “has continued to contract”.
Services present uptick in August by the most recent knowledge “point to more sluggish growth”.
Housing funding “continues to fall”, she added.
01:43 PM BST
US retail gross sales rise greater than anticipated
Meanwhile, throughout the Pond, US inventory indexes have prolonged positive factors in premarket buying and selling after a larger-than-expected rise in month-to-month retail gross sales pointed to a wholesome US shopper.
Retail gross sales rose 0.4pc in September on a month-to-month foundation, in contrast with an estimate of 0.3pc, in line with economists. Retail gross sales excluding cars rose 0.5pc, versus the 0.1pc forecast.
Separately, knowledge confirmed the variety of Americans submitting new purposes for unemployment advantages was 241,000 for the week ended October 12, in contrast with an estimate of 260,000.
In premarket buying and selling, the Dow Jones Industrial Average was up 70 factors, or 0.2pc, the S&P 500 was up 27.25 factors, or 0.5pc and the Nasdaq 100 had risen 170 factors, or 0.8pc.
September retail gross sales +0.4% month/month vs. +0.3% est. & +0.1% prior … gross sales ex-autos and fuel +0.7% vs. +0.3% prior (rev up from +0.2%); management group +0.7% vs. +0.3% prior pic.twitter.com/gWPO7Zaqmo
— Liz Ann Sonders (@LizAnnSonders) October 17, 2024
01:39 PM BST
Low eurozone development rising as greater fear than inflation, alerts ECB
The European Central Bank has signalled that sluggish development is changing into a better concern after inflation fell to 1.7pc final month.
The central financial institution opted for a small 0.25 proportion reduce to three.25pc however mentioned in a press release: “The incoming information on inflation shows that the disinflationary process is well on track.
“The inflation outlook is also affected by recent downside surprises in indicators of economic activity. Meanwhile, financing conditions remain restrictive.”
01:38 PM BST
ECB ‘much more concerned’ about weakening development, say economists
The choice to make successive rate of interest cuts reveals the ECB has turn out to be involved a couple of lack of development within the eurozone economic system.
Carsten Brzeski, world head of macro at ING, mentioned:
The choice to chop charges solely 5 weeks after the final reduce and with solely only a few items of financial knowledge since then, means that the ECB will need to have turn out to be way more involved in regards to the eurozone’s development outlook and the chance of inflation undershooting the goal.
Interestingly, the official language within the ECB’s choice was nearly unchanged from the September assembly.
He added: “The fact is that the ECB looks much more concerned about (the lack of) growth and inflation undershooting than five weeks ago and it’s hard to see how today’s rate cut cannot be seen as a signal that the ECB is now in a hurry to bring interest rates down to a more neutral level.”
ECB reduce 25bp as extensively anticipated.
A nuanced choice assertion, re-emphasising the data-dependent and assembly by assembly method, which have guided the ECB in current quarters.
With a lot knowledge coming in forward of Dec/ Jan, I believe that is as a lot steerage we’ll get right now.
— Piet Haines Christiansen (@pietphc) October 17, 2024
01:31 PM BST
ECB to maintain slicing rates of interest amid financial downturn, say economists
Economic shocks and declining inflation imply the European Central Bank (ECB) will hold slicing rate of interest for “the next few meetings”, in line with economists.
The eurozone has been hit by some “recent downside surprises” in financial exercise, the ECB admitted, because it reduce rates of interest from 3.5pc to three.25pc.
Jack Allen-Reynolds, deputy chief eurozone economist at Capital Economics, mentioned this indicated that it’ll make quarter of a proportion level rate of interest cuts “at each of the next few meetings, at the very least”.
01:24 PM BST
ECB warns inflation ‘is expected to rise in the coming months’
The Governing Council of the European Central Bank mentioned it goals to deliver inflation again to its 2pc goal “in a timely manner” and can hold rates of interest “sufficiently restrictive for as long as necessary”.
It reiterated its “data-dependent and meeting-by-meeting approach” as to if to maintain slicing borrowing prices.
It mentioned the “disinflationary process is well on track” however warned that inflation “is expected to rise in the coming months, before declining to target in the course of next year”.
It mentioned: “In particular, its interest rate decisions will be based on its assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation and the strength of monetary policy transmission.
“The Governing Council is not pre-committing to a particular rate path.”
01:15 PM BST
European Central Bank cuts rates of interest
The European Central Bank (ECB) has reduce rates of interest for the third time this yr because it tries to revive development on the Continent.
Policymakers lowered the deposit charge from 3.5pc to three.25pc amid predictions that its largest economic system, Germany, faces its first two-year recession in 20 years.
It comes as official knowledge confirmed that eurozone inflation fell greater than initially estimated to 1.7pc in September.
The ECB started slicing charges from the document excessive of 4pc in June and has now lowered borrowing prices in back-to-back conferences.
12:57 PM BST
Turkey holds rates of interest at 50pc
Turkey’s central financial institution has introduced it’s going to maintain rates of interest regular at 50pc regardless of inflation falling under the coverage charge for the primary time in three years.
Inflation dipped to 49.4pc in September, though this was nonetheless stronger than anticipated.
Nicholas Farr, rising Europe economist at Capital Economics, mentioned the consultancy thinks rate of interest cuts gained’t start till 2025.
He mentioned: “Overall, it seems clear that the CBRT – like us – doesn’t think the conditions are in place for a monetary easing cycle to start very soon.
“While headline inflation should continue to fall this year as unfavourable base effects continue to unwind, we think the process will be slow and bumpy.”
12:41 PM BST
Wall Street poised to open greater amid AI increase
US inventory indexes have been greater in premarket buying and selling after an upbeat forecast from Taiwanese chipmaker TSMC boosted semiconductor shares.
Profit at Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker, beat market estimates and the corporate forecast a soar in fourth-quarter income, pushed by demand for synthetic intelligence chips.
The chipmaker’s US-listed shares soared 8pc in premarket buying and selling, whereas AI-trade favorite Nvidia gained 2.6pc.
Other chip shares corresponding to Broadcom rose 2.7pc, Intel gained 1.3pc and Arm Holdings was 3.6pc greater.
Stocks had superior on Wednesday, with the Dow Jones Industrial Average notching up its third document shut in 4 classes, as declines in megacap tech shares have been offset by a rally in small-cap and monetary shares.
Wall Street is now ready to see the info on September retail gross sales and industrial manufacturing, in addition to weekly jobless claims knowledge earlier than the opening bell.
In premarket buying and selling, the Dow Jones Industrial Average rose 0.2pc, the S&P 500 gained 0.4pc and the Nasdaq 100 was up 0.8pc.
12:30 PM BST
Elon Musk is a ‘promoter of evil’, says EU official
One of the EU’s most senior politicians has branded Elon Musk a “promoter of evil” in a significant escalation of the war of words between Brussels and the outspoken tech billionaire.
Věra Jourová, a Czech politician who’s in control of the fee’s work on on-line misinformation and hate speech, mentioned Mr Musk is “not able to recognise good and evil” and known as X – previously generally known as Twitter – “the main hub for spreading antisemitism”.
Ms Jourová is leaving Brussels after a five-year stint because the EU’s vice chairman for values and transparency. She was EU commissioner for justice from 2014 to 2019.
Read why she said the social media site X is a “hub for spreading antisemitism”.
11:58 AM BST
Oil muted regardless of China stimulus efforts
Oil costs have been little modified after one other China financial briefing left traders underwhelmed.
Brent crude, the worldwide benchmark, edged barely down however remained above $74 a barrel after dropping nearly 7pc over the earlier 4 buying and selling days.
US-produced West Texas Intermediate was hovering above $70 regardless of China saying right now it could increase credit score obtainable for unfinished housing tasks to greater than $500bn in an effort to kick begin the world’s second largest economic system.
Oil has fallen after it was reported that Israel wouldn’t strike Iranian crude or nuclear amenities.
Meanwhile, China’s efforts to stimulate demand in its economic system have largely failed to this point, with the IEA predicting the world faces a “sizeable surplus” in provides within the early a part of subsequent yr.
However, UBS strategist Giovanni Staunovo geopolitical dangers “are unlikely to fade in the near term and will likely result in ongoing high volatility” in costs.
11:39 AM BST
Russian oil and fuel ‘shadow fleet’ hit with sanctions
The Government has imposed sanctions on 18 Russian oil tankers and 4 liquefied pure fuel vessels as a part of its crackdown on Vladimir Putin’s “shadow fleet” of vessels.
The ships might be banned from UK ports and unable to entry British maritime companies, bringing the entire variety of oil tankers sanctioned to 43.
It comes because the US and Canada right now joined 44 European international locations plus the EU in joint efforts to deal with the shadow fleet.
Foreign Secretary David Lammy mentioned:
We should fight malign Russian exercise at each flip, whether or not illicit techniques to bolster Putin’s battle chest, their use of cyber-attacks or barbarism on the entrance line in Ukraine.
The UK is main the cost in opposition to Putin’s determined and harmful makes an attempt to cling on to his vitality revenues, along with his shadow fleet putting coastlines throughout Europe and the world in jeopardy.
I’ve made it my private mission to constrain the Kremlin, closing the online round Putin and his mafia state utilizing each device at my disposal.
11:14 AM BST
IFS director to step down after 14 years
The head of the Institute for Fiscal Studies (IFS) will step down subsequent summer time to take cost of Queen’s College on the University of Oxford, the influential assume tank has introduced.
Paul Johnson, a outstanding determine for his commentary within the media on the UK economic system, has been director of the organisation since January 2021.
He described his choice to step down as a “bittersweet moment”, having joined the assume tank as a graduate in 1988, earlier than leaving in 1998 and returning as boss 13 years later.
He mentioned: “The IFS has been an incredibly important part of my life. I love it, what it does and what stands for, and all my amazing colleagues.
“But after 14 years at the helm, it feels like the right time to move on and start a new chapter in my life. I am incredibly excited to be moving to The Queen’s College, a wonderful institution in one of the world’s very best universities, and look forward to working with a new set of colleagues and brilliant young people.”
Paul follows within the footsteps of his two quick predecessors as IFS director, Sir Andrew Dilnot and Sir Robert Chote, to run an Oxford school.
The IFS mentioned it has begun the method of hiring a brand new director.
IFS analysis director Imran Rasul mentioned Mr Johnson has been a “truly outstanding director of the IFS”, including: “He is not only a skilled communicator but an excellent economist.”
11:02 AM BST
Eurozone inflation falls to 1.7pc forward of rate of interest choice
European Central Bank policymakers meet right now to resolve whether or not to chop rates of interest after official figures confirmed inflation fell additional than first thought in September.
A late downwards revision to final month’s inflation knowledge could have made the choice even simpler for the members of the ECB’s rate-setting governing council.
Consumer costs within the eurozone rose by 1.7pc, in line with Eurostat, which was 0.1 proportion factors lower than the preliminary estimate.
Before the change, September’s studying already was the primary time in three years that inflation within the eurozone had dipped under the ECB’s 2pc goal.
The lower-than-expected determine has added to the sense amongst policymakers that shopper costs are again underneath management after they soared within the wake of the coronavirus pandemic and the Russian invasion of Ukraine.
“Victory against inflation is in sight,” French central financial institution governor and ECB rate-setter Francois Villeroy de Galhau mentioned final week.
Money markets point out there’s a 97pc likelihood that policymakers will announce a 3rd discount in borrowing prices because the summer time, which would cut back the deposit charge from 3.5pc to three.25pc.
10:54 AM BST
Trump will gasoline inflation and hurt companies, says Janet Yellen
Donald Trump’s plans for the US economic system will gasoline inflation and hurt companies, the US Treasury Secretary Janet Yellen is predicted to warn in a speech.
The most senior monetary determine within the federal authorities is poised to take intention on the former president’s plans to impose tariffs on non-American items, in line with the New York Times.
Although former Federal Reserve chair Ms Yellen just isn’t anticipated to say Mr Trump by identify, she is going to argue that the broad tariffs would harm the US economic system, it was reported.
“Calls for walling America off with high tariffs on friends and competitors alike or by treating even our closest allies as transactional partners are deeply misguided,” Ms Yellen plans to say in her speech, which was obtained by The New York Times.
“Sweeping, untargeted tariffs would raise prices for American families and make our businesses less competitive.”
10:28 AM BST
Pound edges down amid decrease inflation
The worth of the pound has continued to fall after decrease than anticipated inflation elevated bets that the Bank of England will reduce rates of interest subsequent month.
Sterling dropped by 0.1pc in opposition to the greenback to $1.298 after inflation dropped to 1.7pc in September, a pointy fall from 2.2pc over the earlier two months.
The pound was flat in opposition to the euro, which is value 83.6p, forward of the European Central Bank’s subsequent rate of interest choice, which might be introduced this afternoon.
10:12 AM BST
Meta workers sacked for utilizing $25 meal vouchers to purchase wine glasses
Mark Zuckerberg’s Meta has sacked a lot of workers after they abused the corporate’s $25 (£19) meal scheme to order family items corresponding to toothpaste and washing powder.
Almost 30 workers within the firm’s Los Angeles workplace have been dismissed after they have been discovered to be routinely utilizing takeaway credit to order groceries and cosmetics, staff mentioned.
The sackings included high-paid engineers incomes six-figure salaries, in line with posts on the nameless chat app Blind.
Read about the perks Meta, which is currently worth $1.5 trillion, provides staff.
09:52 AM BST
Customers taking pension lump sum surges 32pc in a month
AJ Bell mentioned the variety of prospects accessing their tax-free money in September was 32pc greater than the typical for the previous yr.
Meanwhile, buyer contributions to its pensions have been up 59pc in September in comparison with the identical month final yr, as savers put together for the tax-raising Budget.
AJ Bell chief govt Michael Summersgill mentioned:
Constant hearsay and hypothesis about the way forward for retirement tax incentives – primarily the tax remedy of pension contributions and tax-free money on retirement – are vastly damaging. People are taking monetary selections partly based mostly on pre-Budget hypothesis and it chips away at folks’s confidence in pensions typically.
Our buyer knowledge displays this uncertainty, with pension contributions up by nearly 60pc in September versus the identical month final yr and the variety of folks accessing their tax-free money round a 3rd greater than the typical throughout the previous yr.
Furthermore, nearly 100pc of advisers we surveyed mentioned they’ve handled tax and pension queries from purchasers involved in regards to the Budget, with a 3rd saying that they had seen a rise in purchasers eager to take tax-free money in anticipation of a pensions tax raid within the Budget.
09:27 AM BST
Nestle expects weaker earnings regardless of efforts to restrict worth rises
KitKat maker Nestle has reduce its gross sales outlook as soon as once more regardless of efforts to sluggish worth rises to assist woo again cost-conscious shoppers.
The Swiss group, which makes a raft of well-known family manufacturers additionally together with Nescafe espresso and Cheerios, reported a weaker-than-expected 2pc rise in underlying gross sales for the 9 months of 2024 to this point.
It mentioned it now expects underlying gross sales to rise by round 2pc over the complete yr, under earlier steerage for a minimum of 3pc development.
The shopper items large had already trimmed its gross sales outlook in July, down from its earlier estimate of round 4pc.
The gross sales woes come regardless of Nestle slowing worth rises amid indicators that prime costs in recent times have despatched shoppers on the lookout for cheaper non-branded options.
New chief govt Laurent Freixe mentioned: “Consumer demand has weakened in recent months, and we expect the demand environment to remain soft.”
The group additionally trimmed its profitability forecast for underlying buying and selling working revenue margin to round 17pc in 2024, in opposition to earlier steerage for a slight enchancment on final yr’s 17.3pc.
Nestle remains to be rising costs, however by a slower tempo of 1.6pc on common globally, down from 2pc within the first half, following “unprecedented increases in the prior two years” because it grappled with hovering inflation.
09:07 AM BST
UK shares flat forward of rate of interest choice
Stock markets in London have been little modified regardless of a slew of firm outcomes as merchants wait to see the result of the European Central Bank’s (ECB’s) rate of interest assembly.
The FTSE 100 and FTSE 250 have been each little modified as merchants wait to see if the ECB cuts borrowing prices as anticipated.
It can be the third rate of interest reduce because the summer time and would take its deposit charge to three.25pc.
Meanwhile, each UK inventory indexes have been held again by a lot of corporations buying and selling with out entitlement to the most recent dividend payout.
Smiths Group was down 2.1pc, Persimmon fell 2.3pc and Howden Joinery dropped 1.5pc as they traded “ex-dividend”.
Mondi misplaced 7.3pc to fall to the underside of the FTSE 100 after the packaging firm reported a decrease core revenue in contrast with the earlier three-month interval.
Entain rose as a lot as 4.1pc after the playing group raised its 2024 web gaming income outlook.
Rentokil Initial jumped 8pc to led the FTSE 100 after the pest management firm gave its newest buying and selling replace.
08:42 AM BST
Deliveroo orders rise sooner than Just Eat
Deliveroo shares gained after it elevated orders at a sooner tempo than rival Just Eat.
The meals deliverer’s shares gained 4.6pc after it mentioned orders within the UK and Ireland have been up 2pc within the third quarter in comparison with final yr.
By distinction, Just Eat mentioned orders within the two international locations fell 1pc over the identical interval. Its shares dropped an additional 1.7pc.
Its gross transaction worth was up 6pc general and up 7pc within the UK and Ireland.
Deliveroo chief govt Will Shu mentioned: “UKI growth remains healthy, with improving order trends and overall we are pleased with the underlying growth in international, driven by the UAE and Italy.
“There are many exciting opportunities ahead for the on-demand delivery industry.”
08:22 AM BST
iPhone chipmaker TSMC reveals surging earnings amid AI demand
Taiwanese chip large TSMC has introduced a bigger-than-expected enhance in earnings for the third quarter as the thrill round AI confirmed no indicators of abating.
The firm raised its development forecasts for the yr on account of “extremely robust” demand for AI expertise.
Taiwan Semiconductor Manufacturing Company controls greater than half the world’s output of chips utilized in all the things from Apple’s iPhones to Nvidia’s cutting-edge synthetic intelligence {hardware}.
Tech shares took a success this week as Dutch powerhouse ASML, which provides chip-making machines to the semiconductor business, unveiled a reduce to its 2025 steerage and a disappointing droop in gross sales bookings.
Fuelling the falls have been stories that US President Joe Biden’s administration was contemplating a cap on exports of superior AI chips to some international locations.
TSMC – which is listed in Taipei and New York – mentioned web revenue within the three months to September hit NT$325.3bn (£7.8bn), up 54.2pc from the identical interval final yr.
TSMC chairman CC Wei mentioned: “Our business in the third quarter was supported by strong smartphone and AI-related demand for our industry-leading three nanometre and five nanometre technologies,”instructed an analyst briefing.
“Moving into fourth quarter, we expect our business to continue to be supported by strong demand for our leading-edge process technologies.”
08:04 AM BST
UK markets edge up forward of ECB charge choice
The FTSE 100 inched greater forward of an anticipated rate of interest reduce by the European Central Bank later right now.
The UK’s blue-chip inventory index was fractionally greater at 8,331.36 after buying and selling started, whereas the midcap FTSE 250 rose 0.1pc to twenty,994.55.
08:00 AM BST
Tax petrol automobiles extra to spice up EVs, says Resolution Foundation
Ministers ought to think about elevating taxes on petrol and diesel automobiles to cut back the “premium” related to electrical car (EV) purchases, an financial assume tank mentioned.
A report by the Resolution Foundation really useful that this motion is taken if “concerns” persist over the variety of EVs being purchased.
The analysis additionally known as for the Government to scrap “arbitrary” EV tax breaks, because the schemes’ “unfairness” means they typically favour drivers on greater incomes.
Benefit-in-kind incentives are restricted to folks whose employers present firm automobiles – which are sometimes these incomes bigger wages – whereas wage sacrifice is pegged to an worker’s tax charge, that means greater earners obtain an even bigger incentive.
The report mentioned: “The withdrawal of these tax incentives should be pre-announced, which would bring forward demand for EVs as motorists look to take advantage of them before they expire.
“If, though, sales concerns persist, then ministers should look to increase taxes on new non-electric cars to reduce the premium associated with purchasing a new EV, rather than subsidise EVs any more.”
07:49 AM BST
Entain boosts revenue outlook amid on-line gaming development
Betting large Entain has improved its steerage after stronger-than-expected buying and selling within the newest quarter.
The Ladbrokes and Coral proprietor mentioned it was boosted by a restoration in its UK and Ireland enterprise, which returned to year-on-year development “sooner than expected”.
Entain instructed shareholders it now has “increased confidence” for the remainder of 2024 and now expects mid single-digit development in its on-line web gaming revenues for the yr.
It additionally mentioned underlying earnings, generally known as ebitda, is ready to be in direction of the “top end” of its £1.04bn to £1.09bn steerage.
Gavin Isaacs, chief govt of Entain, mentioned: “My first few weeks as chief executive of Entain have reaffirmed my view that this is a very good business operating in a highly attractive global industry.
“Entain has great brands, an enviably diverse global portfolio and is bursting with talent, ambition and opportunities.
“Entain is already on a path of strategic and operational improvement, with the strong Q3 performance demonstrating the progress achieved so far.
“We are at the beginning of the journey and I’m looking forward to accelerating our progress, leading the business in our next growth chapter and capturing the many exciting opportunities ahead.”
07:39 AM BST
Simply Be proprietor agrees £191m takeover
Simply Be and JD Williams trend retailer N Brown has agreed a £191m takeover by shareholder and director Joshua Alliance, who has been backed by retail tycoon Mike Ashley.
Mr Alliance pays 40p in money for every share of N Brown for the inventory not already owned by himself and his household.
Mr Alliance, who’s a non-executive director of N Brown, already owns 6.6pc of N Brown whereas the others member of the Alliance household – together with former govt chairman Lord David Alliance, who constructed N Brown up because the Sixties – personal a controlling 53.4pc stake.
Mike Ashley’s Frasers Group, which owns 20.3pc of N Brown, has mentioned it’s going to vote in favour of the deal, N Brown mentioned.
Mr Alliance mentioned: “My family have been supporters of N Brown for over half a century, providing capital and having been involved in the strategic leadership of the business. I am delighted to continue that history.
“This transaction will support N Brown in accelerating its long-term growth potential and provide, where needed, access to additional capital, expertise and resource to accelerate the longer-term potential of the business.
“In the business’s current cycle of evolution, we will be able to achieve this growth potential more successfully away from the public markets.”
07:35 AM BST
AJ Bell property underneath administration surges to document £86.5bn
Investment platform AJ Bell boosted its property underneath administration to document ranges as extra prospects sought to guard their cash.
The London-listed stockbroker revealed it elevated its variety of prospects by 66,000 within the yr to September to 542,000.
The firm mentioned the 14pc enhance helped it hit a document for its property underneath administration, which rose 22pc to £86.5bn.
Chief govt Michael Summersgill mentioned it had “lowered the cost of investing for our customers whilst maintaining our industry-leading service levels”.
He added: “Whilst the upcoming Budget has introduced unhelpful uncertainty, we remain positive about the outlook for AJ Bell and the platform market more broadly.”
07:34 AM BST
Savers ‘pulling cash from pensions ahead of Budget’
Britons are pulling extra cash from their pensions as they concern tax rises within the Budget, in line with the boss of one in every of Britain’s largest funding platforms.
AJ Bell chief govt Michael Summersgill mentioned savers have been rising their tax-free money withdrawals from their pensions forward of the Chancellor’s speech on October 30.
Rachel Reeves is poised to launch the biggest Budget tax raid in history which is able to contain as a lot as £35bn of tax rises – probably the most on document in money phrases – as she protects her dedication to ending “austerity” and makes an attempt to make sure departments keep away from real-terms cuts in spending.
Under current guidelines, savers can often take as much as 25pc of the quantity constructed up in any pension as a tax-free lump sum, as much as a restrict of £268,275.
Mr Summersgill mentioned: “Pensions are the primary retirement savings vehicle in the UK and customers are unsurprisingly sensitive to changes in their tax treatment.
“Amidst increased press coverage ahead of the upcoming Budget, we have seen a noticeable change in both customer contributions to pensions and tax-free cash withdrawals.”
07:26 AM BST
Good morning
Thanks for becoming a member of us. We start the day with a have a look at pensions, which savers are raiding for his or her tax-free lump sum forward of the Budget, in line with funding platform AJ Bell.
Chief govt Michael Summersgill mentioned the corporate had seen a “noticeable change” in tax-free money withdrawals, in addition to contributions.
5 issues to begin your day
1) Ryanair threatens to axe hundreds of UK flights if Reeves raises taxes | Michael O’Leary fires warning shot over fears of upper air passenger obligation in Budget
2) London-listed Splenda maker surges on talk of £2.8bn takeover | Tate & Lyle threatens to turn out to be the most recent huge enterprise to give up the London inventory market
3) How the drop in inflation ‘caught the Bank of England off guard’ | Back-to-back charge cuts on the desk as CPI falls under 2pc goal
4) Most companies are hiring rapists and abusers, claims minister | Jess Phillips says employers can play an even bigger position than the Government in tackling home violence
5) Amazon to power electric vans with mini-nuclear reactors | Retail large says SMR expertise may even present vitality for synthetic intelligence and knowledge centres
What occurred in a single day
Asian markets rose Thursday as Chinese traders have been buoyed by a Beijing briefing that promised a lift for the ailing housing sector.
Chinese markets gained after officers in Beijing introduced the federal government was increasing financing for housing tasks to attempt to flip round a droop within the property market triggered by a crackdown on extreme borrowing by builders.
In Hong Kong, the Hang Seng index gained 0.9pc to twenty,460.86, whereas the Shanghai Composite index was up 0.1pc at 3,205.95.
China is because of announce its financial development knowledge for the third quarter on Friday. Economists are forecasting annual development at about 4.5pc, wanting the federal government’s goal of about 5pc.
In Tokyo, the Nikkei 225 index misplaced 0.6pc to 38,950.18 after the federal government reported Japan’s exports fell 1.7pc from a yr earlier in September, widening the nation’s commerce deficit.
Elsewhere in Asia, South Korea’s Kospi slipped 0.2pc to 2,606.23 and in Australia the S&P/ASX 200 added 0.6pc to eight,337.60.
Taiwan’s Taiex gained 0.3pc and India’s Sensex was down 0.3pc. In Thailand, the SET gained 0.7pc a day after the central financial institution reduce its key rate of interest by 1 / 4 of a proportion level, to 2.25pc.
Wall Street shares surged after better-than-expected revenue stories from Morgan Stanley and United Airlines offset a retreat in tech shares.
The S&P 500 closed up 0.47pc to five,842.47 factors. The Nasdaq Composite rose or 0.28pc to 18,367.08. The Dow Jones Industrial Average superior 0.79pc to a document excessive of 43,077.70.
