ECB: Will the next move be a hike?
Traders are now betting on a ECB interest rate hike next year after a senior member of the central bank said she would be comfortable with higher borrowing costs
- Money markets on Monday priced a 30% chance of a 25bp increase by December 2026 – the most aggressive pricing since the easing began last year
- Comments from Isabel Schnabel suggested with some certainty that European rates have reached the floor given that risks related to the economy and to inflation are tilted to the upside with new growth projections that might be revised higher at the ECB’s December meeting
- European government bond yields spiked on the news with the German five-year up by almost 10bp with rates on longer dated debt already at the highest level since 2011
Battle for Warner Bros.
Paramount Skydance and Netflix are battling for control of Warner Bros, one of Hollywood’s most iconic film and entertainment companies. While Warner Bros.’ board has accepted Netflix’s bid, Paramount is taking its offer directly to shareholders:
Source: Company Filings, Bloomberg
US Job Openings Rise, but also Layoffs
US job openings picked up in October to the highest level in five months, though less hiring and more layoffs pointed to a continued slowdown in the labor market
- The number of available positions rose slightly to 7.67 million in October from 7.66 million in the prior month, according to Bureau of Labor Statistics data published Tuesday
- While openings advanced, it was driven by a handful of industries like retail, wholesale trade industries and health care, which has been the biggest driver of job growth this year
- Meanwhile, the number of layoffsin October rose to 1.85 million, the highest since the start of 2023, according to the JOLTS report
- That’s consistent with more modest demand for labor in some sectors as employers adjust to a higher-cost environment, partly due to US trade policy, and lingering economic uncertainty
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