Long-term US bond yields are retreating after two months of increases, with the 10-year T-Note dropping about 25 basis points from its recent high. This decline is attributed to revised inflation and growth expectations, likely influenced by the unwinding of the "Trump Trade." While a short-term rebound is possible, market fluctuations are expected to remain restrained until Donald Trump's inauguration in January.
09:27 28.11.2024
On November 29, a general strike called by CGIL and UIL will impact various sectors, including health, education, and public transport, while rail services are excluded. The unions demand changes to the budget maneuver, increased wages, and better funding for public services. Doctors and nurses will join the strike, protesting against budget cuts that threaten staff and services.
Shares of major semiconductor equipment firms surged following reports that the U.S. is considering less stringent sanctions on China's chip industry. ASML and Tokyo Electron saw significant gains as the U.S. may limit the export blacklist for Chinese firms, potentially softening the impact on ASML's revenue from China. Analysts noted that excluding ChangXin Memory Technologies from the blacklist could lead to a smaller decline in ASML's sales than previously expected.
The European automotive sector, particularly German manufacturers, is facing significant challenges, with the Stoxx 600 Automotive index down over 7% in four weeks. BMW, Daimler, and Mercedes-Benz shares are under pressure, with critical support levels at risk of being breached, potentially leading to further declines. Volkswagen's preference shares are also struggling, nearing a crucial low from the pandemic year.
IG
09:19 28.11.2024
Ukraine's banking system, while stable, is too small and undercapitalized to drive the country's post-war recovery, according to Oleksandr Pysaruk, Board Chairman of Raiffeisen Bank Ukraine. With total assets at about 60% of GDP and a loan portfolio at only 15%, significant recovery efforts will require attracting international creditors and investors, as the banking sector alone cannot meet the estimated $486 billion recovery costs. Pysaruk emphasizes the importance of maintaining a favorable corporate tax rate for banks and the role of international financial institutions in mobilizing necessary resources.
09:16 28.11.2024
Shares of life insurance companies plummeted, with declines of up to 4%, following reports that the insurance regulator IRDAI is considering capping the share of bancassurance business from parent banks to 50%. Currently, parent banks account for 85-95% of the bancassurance business for firms like HDFC Life, Max Life, and SBI Life, while ICICI Bank represents 50% for ICICI Prudential. The regulator's move aims to address concerns over the heavy reliance of insurers on bancassurance.
French Finance Minister Antoine Armand is considering concessions on the 2025 budget bill to prevent opposition parties from destabilizing the government. He emphasized the importance of having a budget, even if it differs from their original plans, to avoid uncertainty.
LIC's potential acquisition of a 50 percent stake in ManipalCigna Health Insurance could significantly disrupt the health insurance sector, offering new growth opportunities for the state-owned insurer. Following the news, LIC shares rose over 2 percent, while competitors like Star Health and Niva Bupa saw declines. Analysts warn that standalone insurers may need to diversify into life insurance to avoid losing revenue streams amid intensified competition from LIC's entry.
Claude Maurer has been appointed as the new Chief Economist of BAK Economics, returning to the institute after nearly two decades at Credit Suisse. A former professional athlete who represented Switzerland in sailing at the 2000 Olympics, Maurer aims to leverage new technologies for economic research, emphasizing BAK's unique blend of knowledge, data, and technology.
09:09 28.11.2024
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