stocks, news, data and earnings

Javier Quesada, a senior fellow at the Valencian Institute of Economic Research, said government spending must slow and taxes must rise to bring down the debt-to-GDP ratio.

UK Science, Innovation and Technology Secretary Chloe Smith discusses the country’s strategy to strengthen the artificial intelligence industry.

Chip industry makers ASM International was the top performer, up 6.3%.

technology gets a boost NvidiaDutch semiconductor companies outperform Thursday ASML 3% higher.

French auto parts supplier Faurecia and Valeo It was also the top performer, rising 6.6 percent and 4.7 percent, respectively, after Jefferies analysts upgraded both stocks to “buy.”

at the other end Stoke 600 On the index, European real estate company Aroundtown fell 2.8 percent, continuing its nearly two-year slide as it struggled in a high interest rate environment. Bloomberg reported on Thursday that it was considering selling its Center Parcs portfolio to reduce debt.

financial technology Sensible Shares fell 2.3 percent as investors jittered over Monday’s announcement that its chief financial officer would be leaving next year.

— Jenny Reed

Destination Wealth Management founder and CEO Michael Yoshikami discusses the outlook for monetary policy and why a U.S. recession is good for markets.

British Exchequer Jeremy Hunt Tell Sky News said he would accept the Bank of England raising interest rates to push the economy into recession as long as inflation recedes.

“Because at the end of the day, inflation is a source of instability,” Hunt said. He added that fiscal and monetary policy must be coordinated “to balance the balance of payments and to show markets and the world that the UK is a country paying the price.”

Money markets raised bets on the central bank’s top rate to 5.5 percent from 4.75 percent after data on Wednesday showed inflation fell less than expected.

The bank’s benchmark rate is currently at 4.5 percent and is widely expected to raise rates by 25 basis points in June.

Gilt yields have been moving higher, approaching levels last October after former prime minister Liz Truss stunned markets with a mini-budget.

The IMF, along with the Bank of England, said this week that it no longer expects Britain to slip into a recession this year, but noted that the outlook was “low-spirited”.

Revised data on Thursday showed Germany entered a technical recession in the first quarter.

– Jenny Reed

European stocks regained some positive momentum early on Friday, with the benchmark index Stoke 600 At 8:30 a.m. London time, the index was up 0.4%.

Britain’s FTSE 100 rose 0.4%, while Germany’s DAX and France’s CAC rose 0.1% and 0.2%, respectively.

UK retail sales rose 0.5% month-on-month in April, the Office for National Statistics said on Friday.

Economists polled by Reuters had forecast sales rising 0.3 percent after falling 1.2 percent in March.

However, sales were down 3% from the previous year as consumer spending rose 4.7%, pointing to the impact of inflation on shoppers.

Ashley Webb, UK economist at Capital Economics, said better weather, increases in state pensions, welfare payments and the minimum wage, and government payments to low-income households for living costs would likely push up the monthly figure.

“Overall, while the outlook for retail sales appears to be improving, we expect interest rates to rise further, from 4.50% now to a peak of 5.25%, and remain elevated through the end of next year. This will mean that real consumer spending will It’s more likely to go down later than up,” Weber added.

– Jenny Reed

European markets are expected to open mixed on Friday.

According to IG, the UK’s FTSE 100 is forecast to open 3 points lower at 7,575, Germany’s DAX is up 0.5 points at 15,804, France’s CAC is up 5.2 points at 7,239 and Italy’s FTSE MIB is up 87.5 points at 26,508.

– Jenny Reed

Parts of the market are in overbought territory, but Morningstar’s Dave Sekera said some of the firm’s favorite stocks are still trading below their fair value estimates.

These include a tech giant and a major US bank.

CNBC Pro subscribers can read more here.

— Weizhen Tan

As earnings season wraps up, Goldman Sachs has identified three stocks with significant upside potential.

In the first quarter, investors focused on the health of global consumers and the balance between post-pandemic growth and margin expansion, the investment bank said. Looking ahead, however, it expects investors to focus on larger companies with profitable business models.

Based on first-quarter results, Goldman expects shares of the three companies it identified to rise more than 75%.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Congressional leaders and President Joe Biden were close to reaching a tentative agreement on raising the debt ceiling on Thursday, according to a report from the U.S. Congress. Reuters To quote people in the know.

Progress between Biden and House Speaker Kevin McCarthy is locked into $70 billion in discretionary spending, the report said.

— Brian Evans

Boston Fed President Susan Collins thinks the central bank will stop raising interest rates.

In a speech to Rhode Island Community College graduates on Thursday, Collins said she saw “signs of moderation” in inflation that could eliminate the need for future rate hikes.

“I believe we may be at or close to a point where monetary policy can pause rate hikes. This will provide an opportunity to more fully assess the impact on economic activity of the actions taken so far and the general tightening of credit conditions,” she said in a readiness said in his speech.

However, market pricing has shifted and the Fed is now expected to raise rates by 25 basis points before its July meeting.

— Jeff Cox