top of page

Breakfast Bites - Thu Jun 22, 2023

Rise and shine everyone.

The Bank of England just announced their rate decision. In a surprise move, they raised rates by 50 bps, after a 7-2 vote.

This was a watched meeting after Norway announced a surprise 50 bps rate hike earlier in the day and the Swiss National Bank also hiked by 25 bps.

The other interesting Central Bank meeting was Turkey where we had a massive range of rate expectations from various analysts. They surprised with a lower than expected hike of 6.5% increasing rates to 15%. The consensus was 20%.

In other news, there was nothing groundbreaking from Chair Powell yesterday but, he did reiterate that policymakers expected further rate hikes by year-end.

US Futures are trading lower this morning, alongside Gold and Oil. Bitcoin still remains green and stable at $30,000. The Yield Curve is trading at -0.99% briefly crossing -1% earlier today. The USD Index has pulled back slightly below $102.

Fed Chair Powell is back before congress today starting 10am ET.

Asia and Australia

  • Asian equities ended mostly lower Thursday in thin trade.

  • Bank Indonesia (BI) kept its 7D reverse repo rate unchanged at 5.75% for fifth consecutive month.

  • China's Economic Daily commented recent yuan depreciation, attributing to "result of market mechanism" and said it is highly probable yuan will appreciate against dollar in H2.

  • China has begun a fresh round of nationwide inspections to assess the size of local government debt, coming as a sign that authorities are preparing to take concrete steps to tackle a key financial risk.

  • BOJ's Noguchi says guidance tweak still indicates strong commitment to easing.

  • Record Number of European Firms Report Declining China Revenue in 2022.

Europe, Middle East, Africa

  • European equity markets softer, with STOXX 600 down for fourth session to lowest level in nearly three months. The FTSE didn’t like the rate decision either.

  • ECB Executive Board member Schnabel, a known hawk, said German inflation is being driven by profits and wages.

  • Ukraine energy minister Galushchenko warned that Russia could shut one of the last arteries carrying gas to Europe by the end of next year.

  • UK PM Sunak's hope for a pre-election tax cut is fading after national debt breached 100% of GDP for the first time since 1961 in data published Wednesday.

The Americas

  • Total US short interest surpasses $1T even as paper losses on positions tops $100B, according to Bloomberg.

  • Number of active home listings hit record low in May, according to Redfin

  • Boeing is lower this morning after falling -3.4% due to talks about worker strikes

  • Darden reports beat on EPS and Revenues in-line. Report Q4 EPS $2.58 vs FactSet $2.54. Revenue $2.77B vs FactSet $2.77B. Increases quarterly dividend by 8.3% to $1.31 from $1.21. Announces retirement of Chairman.

  • Tesla downgraded to equal-weight from overweight at Morgan Stanley

  • Accenture reports a double beat. Reports Q3 EPS $3.19 ex-items vs FactSet $3.01. Revenue $16.56B vs FactSet $16.49B.


(news taken from Reuters, FT, Bloomberg; Calendar from Benzinga Pro)


bottom of page