Germany downgrades growth outlook
Shoppers at the Alexanderplatz in Berlin, Germany, on Wednesday, Sept. 25, 2024.
Krisztian Bocsi | Bloomberg | Getty Images
Germany is expecting its first two-year recession in almost two decades, the government said, downgrading its 2024 growth forecast for the euro zone’s largest economy.
Economy Minister Robert Habeck predicted late Wednesday that gross domestic product would shrink 0.2% this year, down from an earlier forecast of 0.3% growth.
Separately, retail sales rose 1.6% in August versus the previous month, fresh data showed Thursday.
— Karen Gilchrist
Italgas acquires 2i Rete Gas
Italian natural gas distributor Italgas agreed to buy smaller rival 2i Rete Gas in a deal which will see it invest 15.6 billion euros ($17 billion) in its operations up to 2030.
Italgas CEO Paolo Gallo told CNBC Thursday that the deal would enable it to create a “European champion” in the gas sector.
“Only large players … will be able to support the energy transition and the ambitious targets that the European Union has set,” he told CNBC’s “Squawk Box Europe.”
— Karen Gilchrist
China’s central bank launches $71 billion liquidity tool for stock markets
China’s central bank announced it would start accepting applications from financial institutions to join a newly created liquidity tool to help facilitate investors to buy shares.
Eligible security firms, fund companies and insurers are eligible to apply to the “swap scheme” — initially worth 500 billion yuan ($70.7 billion) — to get easier access to funding to buy stocks, People’s Bank of China said.
— Dylan Butts
CNBC Pro: These cheap stocks are outperforming, and analysts give 5 more than 20% upside
Markets just keep rallying this year, with the S&P 500 up nearly 22% year-to-date and the Nasdaq jumping around 21%. In global stocks, the MSCI World index is around 16% higher.
Many on Wall Street expect the trend to continue. Goldman Sachs, Morgan Stanley and others all see the S&P 500 around 6,000 by the end of the year, up from around 5,730 on Tuesday.
With markets already running high, CNBC Pro screened for global stocks that have outperformed the MSCI World index, but still look cheap based on their forward price-to-earnings ratios.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Rio Tinto on pace for longest losing streak in more than three years
Shares of Rio Tinto fell 0.5%% in afternoon trading, putting the stock on track for its eighth consecutive day of losses. If the stock closes lower, this will mark its longest losing streak since March 23, 2021, when it saw eight straight days in the red.
The move comes after the miner announced it’s acquiring fellow miner Arcadium Lithium in an all-cash transaction for $5.85 per share. Shares of that company surged more than 30% during Wednesday’s session.
RIO vs. ALTM, 1-day
European markets: Here are the opening calls
European markets are expected to open higher Thursday.
The U.K.’s FTSE 100 index is expected to open 29 points higher at 8,318, Germany’s DAX up 41 points at 19,299, France’s CAC up 7 points at 7,574 and Italy’s FTSE MIB up 27 points at 33,856, according to data from IG.
Data releases to watch out for include the IMF’s latest World Economic Outlook report, Italy’s industrial production figures and U.S. inflation data out later in the day. Givaudan publishes third-quarter sales figures.
— Holly Ellyatt