FTSE and European stocks surge ahead of Bank of England rates call

• Electricals retailer Currys (CURY.L) has reported falling sales as it said consumer spending has been under pressure and the business sharpened its focus on improving profits.

  The group saw sales decline by 4% on a like-for-like basis over the six months to October, compared with the same time last year.

  In the half-year ended October 28, pre-tax loss narrowed to £46m from £548m the year prior on revenue which declined 7% to £4.16bn from £4.47bn before.

  Shoppers have remained squeezed by persistent inflation and rising interest rates, helping drive a decline in all its international markets.

  Richard Hunter, head of markets at Interactive Investor, said: “Currys is making progress in a challenging environment both at home and abroad, while also taking actions to underpin the group’s financial position.

• We might have the Bank of England and the European Central Bank coming today but the Swiss central bank was actually the first to announce its interest rate decision this Thursday.

  The Swiss National Bank voted to maintain its policy rate unchanged at 1.75%, saying that while inflationary pressure has decreased slightly there is still high uncertainty.

• Traders ramped up bets that the Bank of England will cut interest rates next year after the US Federal Reserve’s pivot toward looser policy.

  Markets are now pricing in five quarter-point cuts next year, up from just three earlier this week, according to Bloomberg.

  That would take the Bank’s base rate down from its current 15-year high of 5.25% to just 4% by the end of 2024.

• Thames Water has named a former senior executive at British Gas owner Centrica (CNA.L) as its new boss as the under-fire utility giant battles financial troubles and poor performance.

  Chris Weston, who worked at Centrica for 13 years and was latterly managing director of its international downstream arm, will become the water firm’s chief executive from January 8.

  He replaces interim co-chief executives Cathryn Ross and Alastair Cochran, who were parachuted into the role when former boss Sarah Bentley stepped down in June in the middle of a funding crisis that left the debt-laden firm on the brink of emergency nationalisation.

• A downward trend in house sales and new home buyer inquiries appears to be easing, according to surveyors.

  A net balance of 14% of property professionals reported new buyer inquiries falling rather than rising in November, the Royal Institution of Chartered Surveyors (Rics) said.

  While this signals that buyer demand is continuing to fall, it is the least negative figure since April 2022.

  Across the UK, feedback is mixed regarding new buyer inquiries, with inquiries on the increase in the North West of England and Northern Ireland, the report said.

• The Fed held its benchmark interest rate in a range of 5.25%-5.50%, the highest in 22 years, on Wednesday. The move had been widely anticipated by investors. Yahoo Finance US writes:

  Also in the Fed’s release was the central bank’s Summary of Economic Projections, which includes central bankers projections for interest rates next year. The Fed now sees 75 basis points of rate cuts coming in 2024, which accounts for one more rate cut than had been projected in September.

  On Wednesday when asked specifically about the economy surprising to the upside again in 2024, Powell said strong growth is “not itself a problem.” He noted that it only poses a dilemma if “it makes it difficult to achieve our goals.”

  Still, he explained that robust growth could keep the labor market strong and put upward pressure on inflation, making it harder to get to the Fed’s 2% inflation goal. That could mean rates stay higher for longer. It “could even mean we need to hike again,” he said.

  The Fed now sees its preferred inflation gauge, core Personal Consumption Expenditures (PCE), falling to 2.4% in 2024.

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