The main headlines that the global financial media focused on last night and this morning were:
Société Générale expects the euro to fall below $1.05 if the Fed does not cut interest rates in 2024
Societe Generale researchers' base forecast that the Fed will not cut interest rates in 2024 could see the euro fall below $1.05, according to Societe Generale strategist Olivier Korber.
The unexpected upside in U.S. inflation has prompted our U.S. economists to stop expecting the Fed to cut rates in 2024," Korber wrote in a note to clients.
"While the market has priced in expectations that the Fed will start easing policy later relative to the ECB, there is room for the Fed to cut interest rates further, suggesting that there is room for EUR/USD to fall further. “
Fed Vice Chair: Keeping interest rates unchanged will help bring down inflation
Fed Vice Chair Philip Jefferson said inflation is expected to continue to slow as interest rates remain at current levels, but it is necessary for interest rates to remain high if inflationary pressures persist.
Jefferson said Tuesday that while considerable progress has been made in bringing inflation down, the Fed's task of bringing inflation to its 2% target sustainably is "not yet complete."
These remarks further reinforced the market's view that Fed policymakers are not in a hurry to cut interest rates. Jefferson did not directly mention the timing of the rate cut or the prospect of a rate cut this year in his speech.
The surge in green electricity has led to the shutdown of nuclear power plants in Europe
Efforts to promote renewable energy have put pressure on Europe's nuclear energy industry. While the urgency of producing fossil-free electricity has never been greater, the surge in renewables and plummeting electricity prices are undermining the operating foundations of nuclear power plants. Nuclear power is still the cornerstone of some of the continent's power grids.
There are signs that the nuclear power plant will face a difficult time. Demand has not fully recovered since the energy crisis, and the region's record wind and solar power generation is eating into the share of nuclear and coal-fired power plants sent to the national grid.
ESG Daily: UBS Group AG said it faces a $20 billion loss under Switzerland's plan
Under the reforms proposed after the collapse of Credit Suisse, UBS faces a requirement to increase regulatory capital, which could reach about $20 billion.
Swiss Finance Minister Karin Keller-Sutter's goal is for systemically important banks to provide full capital support to their overseas subsidiaries.
Analysts estimate that for UBS, the changes could result in a capital loss of $15 billion to $25 billion.
A UBS spokesman declined to comment.
The latest bet on artificial intelligence Microsoft has turned its attention to the Middle East
Microsoft will invest $1.5 billion in Abu Dhabi-based AI group G42. The two companies will collaborate on artificial intelligence and digital infrastructure, marking the first expansion of Microsoft's AI empire into the Middle East.
The move could draw intense scrutiny from regulators. The G42 and Microsoft said they are committed to complying with U.S. and international trade rules as part of their partnership.
Lagarde: Unless there is a major surprise, interest rates will be cut soon
ECB President Christine Lagarde said on Tuesday that the ECB will still cut interest rates in the near term, provided there are no major surprises. "We just need to build more confidence in the process of disinflation, and if it goes as expected, if there is no major shock in the development, we will move towards a moment where we have to ease restrictive monetary policy," she said. "If there are no new shocks, it's time to ease restrictive monetary policy in a reasonable short term." ”
When asked about the central bank's confidence that inflation will continue to fall in the wake of rising commodity prices, especially in the face of soaring oil prices amid geopolitical tensions, Lagarde replied: "All commodity prices have an impact and we have to be very attentive to these movements. ”