European Economic News Preview: UK Chancellor To Present Spring Budget

Bank Of Canada Leaves Interest Rates Unchanged As Forecast

After signaling in January that it was done raising interest rates, the Bank of Canada followed through on Wednesday and left rates unchanged.

The Bank of Canada said its Governing Council decided to maintain the policy rate at 4.5 percent, noting global economic developments have evolved broadly in line with the January outlook.

However, the Canadian central bank said it is prepared to increase the policy rate further if needed to return inflation to the 2 percent target

“The Bank remains resolute in its commitment to restoring price stability for Canadians,” the Bank of Canada said in a statement.

The Bank of Canada also said it is continuing its policy of quantitative tightening, which it said is complementing the restrictive stance of the policy rate.

In its assessment of the global economy, the bank said growth continues to slow, and inflation, while still too high, is coming down due primarily to lower energy prices.

The Canadian central bank cautioned that the strength of China’s recovery and the impact of Russia’s war in Ukraine remain key sources of upside risk for commodity prices.

The bank noted Canadian economic growth came in flat in the fourth quarter of 2022, lower than projected, reflecting a sizeable slowdown in inventory investment.

“Restrictive monetary policy continues to weigh on household spending, and business investment has weakened alongside slowing domestic and foreign demand,” the Bank of Canada said.

Coty Projects FY23 Core LFL Sales Growth At Upper End Of Prior Guidance

Coty (COTY) reported that its third-quarter core LFL sales growth is tracking at 10%, reflecting an acceleration from the 7% core LFL sales growth in its second quarter. The company now expects fiscal 2023 core LFL sales growth to be at the upper end of its prior guidance of 6-8% core LFL sales growth.

Coty reiterated its fiscal 2023 outlook, including its adjusted gross margin, adjusted EBITDA and adjusted EPS guidance, as the company plans to reinvest incremental profit into its critical skincare initiatives and recent launches.

Wholesale inflation unexpectedly falls 0.1% in February


Where should the Fed funds rate be to combat inflation?

Hoover Institution senior fellow John Taylor reacts to the Federal Reserve’s efforts to combat inflation on ‘Kudlow.’

Inflation at the wholesale level posted a surprise decline in February, a sign that painfully high consumer prices are beginning to loosen their stranglehold on the U.S. economy.

The Labor Department said Wednesday that its producer price index, which measures inflation at the wholesale level before it reaches consumers, fell 0.1% in February from the previous month. On an annual basis, prices are up 4.6%.

This is a developing story. Please check back for updates.

Ormat Technologies Stock Slips 7%

Shares of Ormat Technologies, Inc. (ORA) are slipping over 7% on Wednesday morning after the company priced its public offering of 3.6 million shares.

ORA is currently trading at $82.80, down $6.69 or 7.48%, on the NYSE. The stock opened its trading at $89.44 after closing Tuesday’s trading at $89.49. The stock has traded between $67.28 and $101.81 in the past 52-week period.

The offering is expected to close on March 16, 2023. Ormat intends to use the proceeds for general corporate purposes, including working capital and capital expenditures, and for potential acquisitions, including complementary businesses, technologies or assets.

Ormat Technologies engages in the geothermal and recovered energy power business in the United States, Indonesia, Kenya, Turkey, Chile, Guadeloupe, Guatemala, Ethiopia, New Zealand, Honduras, and internationally.

Martin Lewis points out pension change which Hunt ‘didn’t say’

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The Money Saving Expert took to Twitter to explain pension changes which have been announced in the 2023 Spring Budget. Mr Lewis explained that the amount people can put in their pension once they have begun drawdown has changed.

He tweeted: “Pensions big changes to limits.

“PLUS he didnt say but Money purchase allowance up from £4k to £10k. This is the amount you can put in your pension once you’ve already taken some of it. #Budget2023”

MPAA is a special restriction on the amount people can pay into their pension and still receive tax relief, once they’ve started taking it.

European Economic News Preview: UK Chancellor To Present Spring Budget

UK Chancellor of the Exchequer Jeremy Hunt is set to deliver the Spring Budget 2023 on the parliament on Wednesday.

Hunt is set to outline the tax and spending plans of the government for the year ahead. The announcement is due at 8.30 am ET.

Other major economic reports due for the day are final inflation from France and industrial production from the euro area.

At 3.00 am ET, Destatis is scheduled to issue Germany’s wholesale prices for February. Prices had increased 10.6 percent annually in January.

In the meantime, foreign trade from Norway and consumer prices from Sweden are due. Sweden’s consumer price inflation is forecast to remain unchanged at 11.7 percent in February.

At 3.45 am ET, France’s statistical office INSEE releases final consumer and harmonized prices for February. The initial estimate showed that consumer price inflation rose to 6.2 percent from 6.0 percent in January.

At 4.00 am ET, the Czech Statistical Office is scheduled to issue producer prices for February. Producer price inflation is seen easing to 16.9 percent from 19.0 percent in January.

At 6.00 am ET, Eurostat publishes euro area industrial production for January. Economists expect output to grow 0.4 percent on month, in contrast to the 1.1 percent decrease in December.