April 27 - A look at the day ahead from Julien Ponthus.
Three central bank meetings but it’s the huge wave of corporate earnings that’s grabbing all the attention.
Policy status quo is expected at the U.S. Federal Reserve which starts its two-day meeting today, while Japan’s central bank made few waves as it maintained its massive stimulus and projected inflation would miss its 2% target for years .
Little news expected from Sweden’s central bank either.
Meanwhile the earnings torrent so far vindicates the stock market bulls who are regularly accused of stampeding their way to record highs with no regard to the sustainability of the recovery.
By Reuters Staff
1 Min Read
BERLIN, April 27 (Reuters) - The finance ministers of France and Germany support the idea of a 21% minimum corporate tax rate, as suggested by the U.S. government, they said in a joint interview in Zeit Online on Tuesday.
“I, personally, I have nothing against the U.S. proposal,” Germany’s Olaf Scholz was quoted as saying. “If that is the result of negotiations, we would also be agreed,” France’s Bruno Le Maire said, according to Zeit.
Reporting by Madeline Chambers Editing by Riham Alkousaa
By Reuters Staff
2 Min Read
DUBAI (Reuters) - The lingering impact of the COVID-19 pandemic and last year’s sharp drop in oil prices will leave most governments in the Gulf with deficits this year, ratings agency Fitch said.
FILE PHOTO: Flames are seen at the production facility of Saudi Aramco s Shaybah oilfield in the Empty Quarter, Saudi Arabia May 22, 2018. REUTERS/Ahmed Jadallah/File Photo
Countries in the region will see their finances improve thanks to a rebound in oil prices and the unwinding of production cuts.
But deficits will remain high, particularly in Kuwait and Bahrain. “We expect only Abu Dhabi and Qatar to eke out fiscal surpluses,” Fitch said in a report.
By Reuters Staff
2 Min Read
ROME, April 27 (Reuters) - Morale amongst Italian businesses and consumers rose in April, data showed on Tuesday, as the government announced an easing of coronavirus restrictions.
National statistics institute ISTAT’s manufacturing confidence index jumped to 105.4 in April from a revised 101.9 in March, posting its highest reading since September 2018 and easily beating the median forecast of 102.5 in a Reuters survey of 11 analysts.
ISTAT’s composite business morale index, combining surveys of the manufacturing, retail, construction and services sectors, increased to 97.3 from March’s revised reading of 94.2 and reached the highest level since February 2020, just before the country’s COVID-19 outbreak emerged.
Base rate 0.6%, O/N deposit rate -0.05% Decision in line with expectations Inflation to overshoot target range in Q2 -cbank May need to tighten if forint sinks -analysts
BUDAPEST, April 27 (Reuters) - The National Bank of Hungary left interest rates unchanged on Tuesday, as widely expected, and pledged to prevent any sustained rise in inflation as the economy recovers from pandemic-induced shock.
The NBH said it considers an expected jump in inflation temporary but that it would closely monitor for any possible second-round effects.
“It is the NBH’s clear intention to prevent the current uncertain environment from causing a sustained rise in inflation,” the Monetary Council said in a statement.