Investors watch earnings, monetary policy

Sunak vows to focus on ‘economic stability’ as UK PM

Britain’s new Prime Minister Rishi Sunak speaks outside Number 10 Downing Street in London, Britain on October 25, 2022.

Henry Nicholls | Reuters

Rishi Sunak said on Tuesday he would put “economic stability and confidence at the heart of the government’s agenda” in his first speech as British prime minister.

Also warning of “tough decisions ahead”, Sunak said he was elected by lawmakers from the ruling Conservative Party “in part” to correct mistakes made under predecessor Liz’s disastrous 45-day term. Truss.

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-Elliot Smith

Adidas ends its partnership with Ye following the rapper’s anti-Semitic remarks

Adidas ended its partnership with Ye, formerly known as Kanye West, on Tuesday after the musician made a series of offensive and anti-Semitic comments.

Adidas said in a statement, “Adidas does not tolerate anti-Semitism and any other type of hate speech. Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and violate the values ​​of diversity and inclusion. , mutual respect and fairness of the company.”

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-Jenni Reid

German economic sentiment remains gloomy

The business climate in Germany remained sluggish in October, according to the Ifo Institute’s business climate index released on Tuesday. The index slipped to 84.3 points in October from 84.4 points in September.

“Companies were less satisfied with their current business. Their expectations have improved, but they are still worried about the coming months. The German economy is facing a difficult winter,” said Clemens Fuest, president of the Institute. I fo.

-Elliot Smith

Stocks in motion: Viaplay down 29%, UMG up 7%

Earnings were a key driver of stock price action in Europe on Tuesday.

At the bottom of the Stoxx 600, shares of the Swedish Viaplay Group plunged 29% in early trading after the media company reported a third-quarter operating loss of 100 million Swedes ($8.96 million).

HSBC shares fell more than 6% after the UK-based bank reported a 42% drop in pre-tax profit.

Leading the European blue chip index, Universal Music Group Shares gained 7% in early trading in the Netherlands after Apple raised the price of its streaming service, a move likely to boost the music giant’s revenue.

-Elliot Smith

HSBC announces 42% drop in profits following increased provisions for credit losses

HSBC on Tuesday announced a 42% drop in its third-quarter pretax profits following losses on the sale of its French operations and an increase in provisions for bad debts.

The UK-headquartered lender saw its net income rise due to rising interest rates and posted a pre-tax profit of $3.15 billion for the three months to the end of September, up from 5, $4 billion for the same period in 2021, but well above average analyst estimates. of $2.45 billion.

The sale of the bank’s French unit, as part of a broader effort to boost profits, resulted in a $2.4 billion hit.

-Elliot Smith

Swiss bank UBS posts 24% drop in profits but beats analysts’ expectations

UBS publishes its latest results


UBS on Tuesday reported net profit of $1.7 billion for the third quarter of this year, slightly above analysts’ expectations, with the Swiss bank citing a difficult environment.

Analysts had expected net profit of $1.64 billion, according to Refinitiv data. UBS reported net income of $2.3 billion a year ago.

-Silvia Amaro

Here are the opening calls

Great Britain FTSE100 is expected to rise about 2 points to 7,016, Germany DAX is seen flat at 12,931 and France CAC 40 should add about 22 points to 6,153.

—Elliot Smith

CNBC Pro: Sell stocks in a bear market, says JP Morgan Private Bank strategist

A JP Morgan Private Bank strategist said investors should use bear market rallies, like the current one, to “de-risk” their portfolios and sell stocks ahead of a sharp drop in the broader market.

Last week, the S&P 500 rose more than 3.5% despite falling 22% this year.

The SPY ETF, which tracks the US large-cap index, is up more than 5% in one week four times this year and twice as much as 7%, according to Koyfin data.

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—Ganesh Rao

CNBC Pro: Chinese stocks ‘cheap’ after sharp declines, fund manager says

China has become an “attractive market” for investors after stock market valuations have fallen more than 50% since 2021, according to a fund manager.

Foord Asset Management’s Brian Arcese expects valuations to rebound over the next 12 months as he believes the “regulatory overhang” facing Chinese equities “is easing”.

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—Ganesh Rao

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