stocks, data, news and earnings

Shares of British American Tobacco pulled back on Monday after the company said it was close to settling long-standing litigation involving its Canadian unit.

The company said its Canadian subsidiary is already in a court-supervised mediation process to discuss the outstanding legal action, and plans to resolve the matter have been submitted to a Canadian court.

European shares-trade from British American Tobacco they last fell 3.4% at 1:34 pm London time, and this company was the biggest loser in the UK FTSE 100 according to data from the London Stock Exchange.

The European Central Bank and the US Federal Reserve are likely to cut interest rates at the same pace as their respective rate-cutting cycles, Konstantin Veit, portfolio manager at Pimco, told CNBC’s “Street Signs Europe” on Friday.

Veit said there is a good argument for the ECB to be faster than the Fed, but also that the ECB is slower than its US counterpart. However, he thinks the pace of rate cuts will be “fairly synchronized” between the two central banks.

The ECB on Thursday cut its key interest rate by 25 basis points for the third time this year. Stateside, the Fed has only cut rates once this year – but by 50 basis points. One ECB meeting and two Fed meetings are still to be held before the end of the year.

– Sophie Kidderlin

Luxury stocks rose in Europe on Friday as investors weighed the outlook for China’s economy and markets in the region.

Gucci-owned Kering was last up 5.07% at 9:48 a.m. ET, while Burberry rose 4.45% and LVMH added 3.1%. Other luxury brands including Hugo Boss and Christian Dior are also gaining ground.

“The latest announcement from China to support the economy as well as the financial market is giving a boost to luxury stocks today, as this very low earnings season could signal a tentative for a sector where the decline is usually sharp but short-lived. , “Swetha Ramachandran, global equity fund manager at Artemis Fund manager, told CNBC on Friday.

Luxury stocks have been reactive to news from China’s main market, as Beijing aims to boost the economy.

Data out of China on Friday showed that the country’s third-quarter GDP rose 4.6% year-on-year, which was slightly higher than expected. Retail sales data for September also beat estimates, increasing by 3.2% annually.

China’s central bank also signaled an easing of monetary policy, with Governor Pan Gongsheng saying the reserve requirement ratio for commercial banks could be reduced by the end of the year.

Emmanuel Cau, head of European equity strategy at Barclays, told CNBC on Friday that the move in luxury stocks was seen as a “bounce on better China data.”

– Sophie Kidderlin

Cybersecurity firm Wiz is aiming to reach $1 billion in annual recurring revenue next year, the company’s billionaire founder Roy Reznik told CNBC, adding that the company will go public “when the stars align.”

Earlier this year, the company rejected a $23 billion acquisition offer from Google, which would have marked the tech giant’s largest takeover yet. At the time, Wiz CEO Assaf Rappaport said the startup was “flattered” by the offer, but would remain an independent company and aim for a listing.

Read more here.

—Ryan Browne

CSI 300 Mainland China rose 3.62% to close at 3,925.23. Hong Kong’s Hang Seng index rose more than 3.3% in the last trading hour.

China’s third-quarter GDP rose 4.6% compared with the same period last year, slightly above Reuters poll estimates but down from 4.7% in the previous quarter.

Japan Nikkei 225 added 0.18% to 38,981.75 while the Topix rose slightly at 2,688.97.

The Kospi fell 0.59% to 2,593.85, while the Kosdaq fell 1.55% to 753.22. Australia’s S&P/ASX 200 edged 0.87% down to 8,283.2.

— Anniek Bao

Expectations for the upcoming third-quarter earnings season in Europe are “quite low,” according to one fund manager, while the latest macroeconomic data points to a more positive outlook for the US.

“The data we’re seeing from a macro level in the US is more encouraging than in Europe,” Clare Pleydell-Bouverie, a fund manager at Liontrust Asset Management, told CNBC’s “Squawk Box Europe” on Friday.

“Going into a rate cut cycle with a resilient economy is a strong setup for stocks. Saying, the slowdown we see in European data, PMI, (President of the European Central Bank Christine) Lagarde pointed to this. yesterday in her speech, many are priced into market,” Pleydell-Bouverie said.

“We have just started the season of earnings over here in Europe (and) expectations are quite low. We are looking at earnings growth expectations of only 3% for Europe. If we strip out the financials, it is negative 2%,” he continued.

“So, where we focus is looking for some high-quality companies that you don’t get a lot of options to buy, that are trading at a 20% discount to the average stock,” added Pleydell-Bouverie. .

– Sam Meredith

The European market opened mixed there, with pan-European Stoxx 600 last dipping by 0.06% at 8:06 am London time.

Stocks and major regional sectors were mixed, with auto stocks last adding 1.17% and mining stocks up 1.69%. Telecommunications, healthcare and utilities are among the sectors that have fallen behind.

Retail sales in the UK rose 0.3% in September, data published on Friday by the country’s Office for National Statistics showed – reaching the highest level since July 2022.

Economists polled by Reuters had expected a 0.3% decline. Retail sales increased 1% in August.

Computer and telecommunications retailers recorded strong growth, boosting non-food sales volumes, while food sales fell in September, the ONS said.

“The wet weather did not deter the British public from spending in September, as shown by stronger-than-expected retail sales,” Neil Birrell, chief investment officer at Premier Miton Investors, said in a note.

“This is contrary to the consumer confidence data that has been reported and shows that wage growth is an important factor. I thought.”

– Sophie Kidderlin

Volvo Group on Monday posted its third quarter earnings, reporting a decline in sales and adjusted operating income compared to the previous year.

Net sales fell 12% to 117 billion Swedish Krona ($11.1 billion), the company said, down from 132.3 billion Swedish Krona in the same quarter a year ago.

Adjusted operating income was 14.1 billion Swedish kroner in the third quarter of 2024, compared to 19.3 billion last year.

Demand was normal in the third quarter in most Volvo Group markets, Martin Lundstedt, the company’s president and CEO, said in a statement on Friday.

“We are seeing that cargo and construction activity have decreased in many areas around the world compared to the high levels of last year,” he said.

The Volvo Group produces buses, trucks and construction equipment.

– Sophie Kidderlin

European markets are headed for a mixed open on Friday.

Britain’s FTSE 100 index is expected to open 20 points lower at 8,369, Germany’s DAX is seen down 37 points at 19,548 and France’s CAC is expected to drop 17 points at 7,567.

Italy’s FTSE MIB, meanwhile, looks set to reverse the trend, opening 77 points higher at 34,934, according to data from IG.

Monday’s earnings came from the Volvo Group. On the data front, investors will be looking for retail sales figures from the UK

– Sophie Kidderlin

Three London stocks were in March and are expected to rise more than 50% over the next 12 months.

CNBC Pro screened for stocks covered by analysts at RBC Capital Markets that have risen this year, have momentum behind them, and have the potential to rise more than 50%.

CNBC Pro subscribers can read more here.

– Ganesh Rao