Bank of England right to halt rate hikes as pound tumbles, says chief investment officer

The UK central bank is unlikely to rush to raise interest rates, according to Julian Howard, chief investment officer of multi-asset solutions at GAM Investments, despite the pound falling.

“I don’t think it’s the Bank of England’s job to support the pound,” Howard told CNBC’s “Squawk Box Europe” on Tuesday.

“I prefer to portray this as a global phenomenon and think the Bank of England should wait before raising rates further,” he said.

He also said talking about the UK as an emerging market is “a bit premature”.

“Some have even said that we are becoming a Mediterranean country but without the time – I think it’s too hard,” Howard said.

“I think that in the medium term [deregulation and tax cuts] could be very useful, but the market decided to ignore it,” he told CNBC.

—Hannah Ward-Glenton

Stocks in motion: Nexi up 6%, Vitrolife down 9%

Nexi shares gained 6% in early trade to top the Stoxx 600 after the Italian payments group released its new business plan, in which it forecast 2.8 billion euros (2.7 billion dollars) of excess cash generation between 2023 and 2025 for mergers and acquisitions and share buybacks.

At the bottom of the European blue chip index, Swedish IVF company Vitrolife fell more than 9%.

CNBC Pro: Here’s where Dan Niles puts his money

“We made money today. We’re up in August. We’re up for the year,” fund manager Dan Niles told CNBC.

As major stock markets remain deep in the red this year, the investing veteran shares what he’s buying in this volatile market.

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— Zavier Ong

Fed Mester says it’s better to act “aggressively” against high inflation

U.S. inflation is “unacceptably high” and uncertainties make monetary policy decisions “not trivial,” Cleveland Fed President Loretta Mester said in a speech prepared at the Massachusetts Institute of Technology.

“When there is uncertainty, it may be best for policymakers to act more aggressively,” she said. “Aggressive, preemptive action can prevent the worst outcomes from actually happening.”

She said she will be “very careful” when assessing inflation data.

“I will need to see several months of declining month-over-month readings,” she said. “Pious hope cannot replace convincing evidence.”

– Jihye Lee

World Bank lowers growth forecast for East Asia and Pacific region

The World Bank cut its 2022 growth forecast for the East Asia and Pacific region to 3.2% from its April forecast of 5%, it said. said in its latest report released on Tuesday.

“The slowdown in growth is mainly due to China,” he said, adding that the organization had also cut its 2022 forecast for the country to 2.8% from 5%. The World Bank expects China to grow by 4.5% in 2023.

The report said median headline inflation is expected to top 5% this year, an upward revision from the 3% previously forecast in April.

– Jihye Lee

CNBC Pro: Analysts Like Nvidia Again, Citi Giving It Near 100% Raise

Analysts are starting to be bullish on Nvidia again, after the semiconductor giant fell out of favor amid geopolitical tensions and a slowdown in the chip sector.

Both Citi and JPMorgan said last week that strong demand for PC gaming, as well as cloud adoption in data centers, were going to be tailwinds for Nvidia.

So how much advantage did they each give Nvidia shares? CNBC Pro subscribers can learn more here.

—Weizhen Tan

European markets: here are the opening calls

European stocks are expected to open in negative territory on Wednesday as investors react to the latest US inflation data.

Britain’s FTSE index is expected to open down 47 points to 7,341, Germany’s DAX down 86 points to 13,106, France’s CAC 40 down 28 points and Italy’s FTSE MIB down 132 points to 22,010 , according to data from IG.

Global markets fell following a stronger-than-expected U.S. consumer price index report for August, which showed prices rose 0.1% for the month and by 8.3% a year in August, the Bureau of Labor Statistics reported on Tuesday, defying economists’ expectations that headline inflation would fall 0.1% month-over-month.

Core CPI, which excludes volatile food and energy costs, rose 0.6% from July and 6.3% from August 2021.

UK Inflation figures for August are due and Eurozone Industrial Production for July will be released.

—Holly Ellyatt