Aurelia Butler

By 08:15 ET (12:15 GMT), the pan-Europe Stoxx 600 index rose 1.1% to 470.70, while EUR/USD rose 0.4% to 1.1127.The central bank for the 20 countries that use the euro had previously signaled a rate rise this month, with inflation in the region at 5.5% when last reported despite borrowing costs being lifted by 4 percentage points since last July.However, amid growing evidence of an economic downturn, attention will now turn to President Christine Lagarde’s upcoming press conference for clues as to whether another rate hike is coming in September or if July marks the end of this aggressive tightening cycle.The ECB could also decide to pause in September when it will provide updated staff growth and inflation forecasts, and then hike later, as the U.S. Federal Reserve has done, if needed. More

The cut from 25% where it was set in June 2022 had been expected by economists and analysts with inflation slowing more quickly than expected this year. “A fast slowdown in inflation and the stable situation on the foreign exchange market enable the start of a cycle of lowering the discount rate,” the central bank said in a statement. “At the same time, lowering the discount rate against the background of maintaining macro-financial stability will support the recovery of the economy.”Central Bank Governor Andriy Pyshnyi said Ukraine’s economy was proving resilient to the new challenges posed by the full-scale invasion launched by Russia in February last year. That, he said, had prompted the central bank to improve its forecast for gross domestic product growth to 2.9% this year from the previous target of 2%.The central bank also improved its forecast for inflation to slow to 10.6% this year from its previous forecast of 14.8%. More

(Reuters) -Major global firms ranging from banks to chipmakers are taking a largely cautious stance on their China business amid a frail recovery at the world’s second-largest economy from a pandemic slowdown.Following are comments from firms on their China business during the latest reporting season:Company China recovery comments Citigroup (NYSE:C) The lender called it the “biggest disappointment” as growth decelerated after an initial post-reopening pop. Dow Inc The chemical maker said the anticipated rebound following the end of pandemic curbs has yet to fully materialize. NXP (NASDAQ:NXPI) The chipmaker said China’s export curbs on certain gallium Semiconductors and germanium products did not impact the company. 3M Co The industrial conglomerate flagged continued weak appetite for consumer electronics demand in China. GE Healthcare The company saw improved demand for medical equipment in the region in the recent quarter and that is expected to continue as China prioritizes improved healthcare access following the end of the pandemic. ABB The engineering firm witnessed fewer new orders from China in the quarter and said some customers were shifting investments to other parts of Asia due to geopolitical tensions. LVMH The French luxury giant logged a strong rebound in China during the second quarter. EssilorLuxottica The luxury eyewear maker continued to benefit from a recovery in China during the second quarter. Seagate The computer hardware maker Technology said that the fourth-quarter performance was impacted due to the uneven pace of the Chinese economic recovery. More

The 199-metre (653 ft) Fremantle Highway caught fire overnight Tuesday and several of the 23 crew jumped overboard to escape the flames and were rescued by the Dutch coastguard.The coastguard said on its website Thursday the cause of the fire was unknown, but an emergency responder is heard in a recording released by Dutch broadcaster RTL saying “the fire started in the battery of an electric car.”Roughly 25 out of 2,857 vehicles on the ship, which was en route from Germany to Egypt, were electric.An investigation has been launched by the Panama Maritime Authority and the Netherlands was expected to assist the inquiry, Dutch Safety Board spokesman Arjen Zegers told Reuters.The Fremantle had drifted westward in international waters from its initial location just off the island of Ameland in the direction of the island of Terschelling, Dutch news agency ANP reported.The islands are on the northernmost tip of the Netherlands, and comprise part of the Wadden Sea, a vast area of tidal flats and marshland stretching along Germany and Denmark that is on UNESCO’s World Heritage list. More

SANTIAGO (Reuters) – Chile is expected to cut its benchmark interest rate on Friday, the first major Latin American economy to do so since a wave of hikes to contain surging post-pandemic inflation, in a likely sign of loosening monetary policy in the region.Chile and most major Latin American economies hit decades-high inflation last year, leading to aggressive monetary policy tightening that might finally be reversing as price hikes have slowed across the region.Yearly inflation in Chile, which saw one of the region’s biggest post-COVID price spikes, has dropped to 7.6% from a peak of 14% last August, and the central bank is expected to cut the rate by at least 75 basis points after holding it steady at 11.25% for nine months.Uruguay has already led the charge regionally with a 25 basis points cut in April and a 50 basis point cut to 10.75% in July. Brazil, the region’s largest economy, is also expected to start cutting rates in August.”This cut by (Chile’s central bank) will help test the waters and let us know what the market’s ‘mood’ is like,” said Andres Abadia, chief economist for Latin America for Pantheon Macroeconomics, adding that other countries will be watching how the local market and currency react. “We expect rate cuts in Brazil next week, and other countries will join this trend starting in October.”The expected cut has already led to a rally with the local stock market hitting record highs after breaking the 6,000-point barrier for the first time in mid-July.In a report, Scotiabank said it expected Chile’s central bank to weigh cuts of 50, 75 and 100 points “with a greater bias of 75bp as it would allow a return to unanimity (and) would be compatible with recent surprises.” Such a cut would also “maintain the validity of the interest rate corridor,” or the system to guide interest rate decisions to the central bank’s inflation target, the bank said.Cesar Guzman, manager of Macroeconomics at Grupo Security in Santiago, said he is betting on a reduction of 100 points since inflation has been falling faster than forecast by the Central Bank. “Another factor to consider is that the market already has a large cut implicit in it,” Guzman said, adding that the current rate was “well above what is considered neutral.” While inflation has dropped, the head of the Central Bank, Rosanna Costa, said earlier in July that the challenge of bringing inflation to the 3% target “is not over.””Although the latest inflation data was good, we must avoid drawing hasty conclusions,” said Arturo Claro, an economist at Econsult. Claro expects a cut of 75 points based on the central bank’s tendency for caution.”After this first drop, you can pause and thus wait for clear evidence that core inflation, the best thermometer for price dynamics, is falling consistently,” Claro said.Those doubtful about more aggressive cuts point to factors like the war in Ukraine that could lead to increases in the price of wheat and oil. More