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HomeAll NewsMost read newsBusiness Leaders Biography
Birthday : 01/02/1968
Place of birth : Russia
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Biography : Head of Rusal, the world leader in aluminium, Oleg Deripaska is a major figure among Russian...

EUROPEAN MIDDAY BRIEFING: Stocks Drift as -2-

10/20/2021 | 05:53am EST

The bank's analysts still view current levels as a better opportunity to increase duration over the medium term but they acknowledge the multiple rising headwinds and adverse price action, "which argue against larger risk taking in the current environment," said Rieger.

The weaker sentiment in stock markets Wednesday is likely to ripple through the credit market, pausing recent gains as spreads tightened, said UniCredit.

"The softer tone in major equity markets this morning is likely to lead to a pause [in] the tightening that we have seen in European corporate credit risk premiums."

Losses are unlikely, however, since the economic calendar doesn't contain pivotal data releases and technical factors remain supportive. "We do not see scope for noteworthy spread widening at this stage."

Commodities:

Crude oil futures were down around 1% in Europe after the latest API data showed a bearish reading on U.S. inventories, according to DNB Markets' Helge Andre Martinsen.

While the market had expected a build of 1.3 million barrels in the most recent reporting week, crude stocks actually rose by 3.3 million barrels. Investors will be keeping an eye out to see whether Department of Energy data, released later Wednesday, back up those API figures, Martinsen added.

Base metals prices were lower after China said it was looking to intervene in energy markets.

China's National Development and Reform Commission suggested it was looking at ways to bring down soaring coal prices, a move that could ease pressure on metals makers and has already prompted a sharp drop in Chinese coal futures.

Rising energy prices have been driving production curtailments at smelters and pushing base metals prices higher.

DOW JONES NEWSPLUS

EMEA HEADLINES

Bundesbank President Jens Weidmann to Step Down

FRANKFURT-German Bundesbank President Jens Weidmann, a prominent critic of the European Central Bank's easy-money policies as a member of the ECB's rate-setting committee, will leave the Bundesbank at the end of the year, five years before his term was due to end.

The Bundesbank said in a statement that Mr. Weidmann is leaving for personal reasons, without elaborating.

German Producer Prices Rise at Fastest Annual Pace in More Than 46 Years

The index of producer prices for industrial products in Germany rose 14.2% in September compared with the prior year, the German statistics office Destatis said Wednesday.

This was the highest year-on-year increase since October 1974, when prices rose strongly during the first oil crisis, Destatis said.

UK Annual Inflation Eased in September

Annual inflation in the U.K. eased in September, ahead of an anticipated pickup in consumer prices later in the year.

Consumer prices rose 3.1% on the year in September, the Office for National Statistics said Wednesday, slightly slower than the 3.2% rise recorded in August.

Nestlé Sales Buoyed by Coffee, Pet Food

Nestlé SA raised its full-year sales guidance for the second straight quarter, buoyed by strong demand for coffee and pet food, despite the continuing challenges of rising input costs and supply-chain snags.

The world's largest packaged-food company on Wednesday reported a 6.5% rise in third-quarter organic sales growth, with revenue for the first nine months of the year coming in at 63.29 billion Swiss francs, equivalent to $68.60 billion. Nestlé said it now expected full-year growth between 6% and 7%, up from its previous guidance of between 5% and 6%.

Roche 3Q Sales Grew; Raises Outlook

Roche Holding AG said Wednesday that sales for the third quarter rose on year and raised its outlook for the full year.

The Swiss pharma major posted sales of 15.97 billion Swiss francs ($17.31 billion) for the third quarter, up from CHF14.70 billion in the same period in 2020.

Nippon Paint Plans to Buy French Paint Maker Cromology

Nippon Paint Holdings Co. said Wednesday that it plans to acquire French construction paint maker Cromology Holding SAS for 1.15 billion euros ($1.34 billion), in a move to expand its business in Europe.

The Japanese paint company plans to buy the French paint maker from Wendel SE and other shareholders after Cromology holds talks with labor representatives.

Rio Tinto Accelerates Carbon Targets While Pivoting Toward Growth

Rio Tinto PLC accelerated plans to shrink its carbon footprint and said it intends to spend more on projects to mine commodities needed for a global energy transition.

With investor and public pressure mounting for resources companies to respond to climate change, the world's second-biggest miner by market value on Wednesday more than tripled a 2030 emissions reduction target and said it will lift annual capital spending with a focus on increasing its output of materials needed for a lower-carbon and more electrified economy.

ASML Holding 3Q Net Profit Rose 64% on High Demand

ASML Holding NV on Wednesday reported a 64% rise in third-quarter net profit, beating analysts' consensus, and said that demand continues to be high.

The Dutch semiconductor-equipment maker said it needs to increase capacity to meet demand for memory and logic modes given the current chip shortage.

SEB Proposes Further Dividend, Buyback After 3Q Earnings Beat

Skandinaviska Enskilda Banken AB on Wednesday posted a better-than-expected third-quarter net profit amid lower loan losses and high activity in its large corporates business, prompting the bank to propose a further dividend and buyback.

The Sweden-based bank posted a net profit of 6.63 billion krona ($769 million) for the quarter, up from SEK4.77 billion a year earlier and above the SEK5.7 billion forecast from analysts polled by FactSet.

Akzo Nobel 3Q Net Profit Fell Amid High Raw-Material Costs

Akzo Nobel NV on Wednesday reported a decline in net profit for the third quarter of 2021, and said that its performance was mainly hit by high raw-material costs and supply-chain disruptions.

The Dutch paints and coatings company posted a net profit of 164 million euros ($190.8 million) compared with EUR220 million for the same period a year earlier. Net profit was expected to decline to EUR160 million, according to the company's compiled consensus.

Deliveroo 3Q Orders, Gross Transaction Value Rose; Raises Full-Year Transaction Value Guidance

Deliveroo PLC said Wednesday that it saw a rise in orders and gross transaction value in the third quarter of 2021, and raised its guidance for gross transaction value for the year.

The London-listed food delivery company said it processed 74.6 million orders in the three months ended Sept. 30, up from 45.4 million a year prior.

Credit Suisse to Pay $475 Million, Admits Defrauding Investors to Settle Mozambique Charges

Credit Suisse Group AG agreed to pay $475 million and forgive $200 million Mozambique owes to investors in coordinated settlements with U.S. and European authorities over loans the bank made in the country.

A subsidiary of the Swiss bank pleaded guilty to wire fraud conspiracy charges in New York federal court Tuesday. Credit Suisse, which previously had maintained it was a victim of rogue employees, admitted to defrauding investors who bought some of the debt and agreed to pay $275 million to resolve both a criminal probe by the Justice Department and a civil investigation by the Securities and Exchange Commission.

Russia Faces Difficult Balancing Act as It Hosts Taliban in Moscow

MOSCOW-Russia has a fine line to tread when it hosts a Taliban delegation at international talks in Moscow on Wednesday: staying on good terms with the new regime in Kabul while preventing an influx of refugees and a broader Islamist movement gaining ground in what used to be the Soviet Union.

From Eastern Europe to the Central Asian republics to its south, Russia has long tried to exert its influence over the former Soviet space.

FBI Raids Homes Owned by Relatives of Russian Oligarch Oleg Deripaska

The Federal Bureau of Investigation on Tuesday conducted raids of residences in Washington and New York owned by the family of Russian metals tycoon Oleg Deripaska, who figured prominently in the post-2016 investigations of Trump campaign officials, FBI spokeswomen and a spokesman for Mr. Deripaska said.

Mr. Deripaska's spokesman confirmed the raids of the residences, saying the searches were carried out pursuant to court orders stemming from U.S. sanctions. The spokesman said both properties are owned by Mr. Deripaska's relatives.

U.K., Joining Trend, Sees Nuclear as Key to Cut Carbon Emissions

The U.K. said Tuesday that nuclear power would play an important role in underpinning its plan to cut greenhouse-gas emissions, joining a growing group of countries turning back to atomic energy as they consider how to wean themselves off fossil fuels.

The announcement comes as the country faces a winter of high energy prices and worries over shortages of natural gas. It plans to take coal-fired power stations offline by 2024 and hasn't spelled out plans to fully replace its existing fleet of old nuclear power stations.

GLOBAL NEWS

Derby's Take: Waller Flags Inflation Expectations as Key to Fed Rate Outlook

The Federal Reserve's newest governor said the monetary policy outlook depends crucially on what financial markets expect for the future path of inflation.

In a speech Tuesday, Christopher Waller offered a clear warning about what inflation might do to the monetary policy outlook. Mr. Waller, who became a central bank governor late last year after serving as research director at the St. Louis Fed, said if currently high levels of inflation do not show clear signs of moderation by year's end, he would move forward into next year his expectation of central bank rate rises.

UK Annual Inflation Eased in September

Annual inflation in the U.K. eased in September, ahead of an anticipated pickup in consumer prices later in the year.

(MORE TO FOLLOW) Dow Jones Newswires

10-20-21 0552ET