Latest news with #monetarypolicy
Japan Times
9 minutes ago
- Business
- Japan Times
U.S. tariff uncertainty very high, sentiment 'deteriorated,' says BOJ's Ueda
Bank of Japan Gov. Kazuo Ueda said Tuesday that uncertainties over high tariffs imposed by the administration of U.S. President Donald Trump remain extremely high. Business and household sentiments "have deteriorated recently," Ueda said at an event hosted by the Research Institute of Japan, a Jiji Press affiliate, in Tokyo. On the central bank's monetary policy moves going forward, he said that "nascent developments" toward achieving the BOJ's 2% price target "have steadily gained momentum." Ueda also said that the BOJ will continue to raise interest rates if the Japanese economy and prices move in line with the central bank's outlook.
Yahoo
4 hours ago
- Business
- Yahoo
European Stocks That May Be Priced Below Their Estimated Intrinsic Values
As European markets experience a slight uptick, with the pan-European STOXX Europe 600 Index rising by 0.65% amid trade negotiations and slowing inflation, investors are keenly observing potential shifts in monetary policy from the European Central Bank. In this environment, identifying stocks that may be priced below their estimated intrinsic values can offer opportunities for those looking to capitalize on market inefficiencies and economic developments. Name Current Price Fair Value (Est) Discount (Est) Laboratorios Farmaceuticos Rovi (BME:ROVI) €53.90 €104.47 48.4% Alfio Bardolla Training Group (BIT:ABTG) €1.90 €3.70 48.6% CTT Systems (OM:CTT) SEK213.50 SEK416.33 48.7% Séché Environnement (ENXTPA:SCHP) €99.00 €197.26 49.8% Clemondo Group (OM:CLEM) SEK10.80 SEK21.25 49.2% Lectra (ENXTPA:LSS) €24.05 €47.11 49% Absolent Air Care Group (OM:ABSO) SEK214.00 SEK416.45 48.6% Trøndelag Sparebank (OB:TRSB) NOK114.50 NOK226.55 49.5% Nexstim (HLSE:NXTMH) €7.98 €15.71 49.2% VIGO Photonics (WSE:VGO) PLN522.00 PLN1042.74 49.9% Click here to see the full list of 187 stocks from our Undervalued European Stocks Based On Cash Flows screener. Let's dive into some prime choices out of the screener. Overview: Maire S.p.A. specializes in developing and implementing solutions for the energy transition, with a market cap of €3.76 billion. Operations: The company's revenue segments consist of Integrated E&C Solutions, generating €5.97 billion, and Sustainable Technology Solutions, contributing €376.94 million. Estimated Discount To Fair Value: 35.8% Maire S.p.A. appears undervalued, trading 35.8% below its estimated fair value of €17.83, with a current price of €11.45. Recent earnings growth and a forecasted annual profit increase of 12.4% outpace the Italian market's average growth rate, despite revenue projections being modest at 5.9%. The company's recent strategic partnership with Radware enhances its cybersecurity offerings, potentially bolstering future cash flows amidst a volatile share price history and an unstable dividend track record. Our expertly prepared growth report on Maire implies its future financial outlook may be stronger than recent results. Click here and access our complete balance sheet health report to understand the dynamics of Maire. Overview: Cellnex Telecom, S.A. operates as a manager of terrestrial telecommunications infrastructures across multiple European countries including Austria, Denmark, Spain, and others, with a market cap of €23.98 billion. Operations: Cellnex Telecom generates revenue through the management of terrestrial telecommunications infrastructures across several European countries, including Austria, Denmark, Spain, and others. Estimated Discount To Fair Value: 44.1% Cellnex Telecom is trading at €33.98, significantly below its estimated fair value of €60.77, indicating it is undervalued based on cash flows. The company is forecast to achieve profitability within three years, with earnings expected to grow by 49.35% annually. Recent strategic moves include a completed share buyback worth €800 million and potential sale discussions of its Swiss business for up to €2 billion, which could influence future cash flow dynamics positively. Our earnings growth report unveils the potential for significant increases in Cellnex Telecom's future results. Click to explore a detailed breakdown of our findings in Cellnex Telecom's balance sheet health report. Overview: Thales S.A. operates globally in the defence and security, aerospace and space, and digital identity and security sectors, with a market cap of €55.48 billion. Operations: Thales generates revenue from its Aerospace segment (€5.64 billion), Cyber & Digital operations (€4.15 billion), and Defence (excluding Digital Identity & Security) activities (€11.32 billion). Estimated Discount To Fair Value: 15.8% Thales is trading at €270.2, below its estimated fair value of €321.06, showing it is undervalued based on cash flows. Earnings are forecast to grow 17.94% annually, outpacing the French market's growth rate. Recent strategic partnerships with Michelin and Deloitte enhance Thales's position in software monetization and cybersecurity services, potentially bolstering future cash flow generation while maintaining a focus on selective mergers and acquisitions for strategic expansion. Insights from our recent growth report point to a promising forecast for Thales' business outlook. Navigate through the intricacies of Thales with our comprehensive financial health report here. Delve into our full catalog of 187 Undervalued European Stocks Based On Cash Flows here. Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes. Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BIT:MAIRE BME:CLNX and ENXTPA:HO. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
News.com.au
7 hours ago
- Business
- News.com.au
‘Not time': Why the RBA took a cautious approach to rate cuts
Global uncertainty on the back of the US President Donald Trump's tariff policy and a weakening Australian economy saw the Reserve Bank of Australia debate an outsized rate cut last month. Minutes from the RBA's May 20 policy meeting show the central bank is still nervous about the impact of Mr Trump's trade policy but wants to move 'cautiously and predictably' in line with market expectations. As such, households were not given an outsized 'insurance against global growth' 50 basis point rate cut. Instead, the bank highlighted the need for monetary policy settings to remain 'predictable at a time of heightened uncertainty'. 'They agreed that developments in the domestic economy on their own justified a reduction in the cash rate target and that the case for that action was strengthened by developments in global trade policy,' the minutes reveal. Ultimately though, the board agreed the case for a 25 basis point rate cut was 'the stronger one' as members were not persuaded that weakening global growth and domestic factors warranted an outsized rate cut. In a silver lining for households, should the impacts of global uncertainty materialise, the RBA board agreed it would need to move to 'expansionary settings' meaning there would be more cuts to the cash rate. The board judged in May however that there was not enough data around the impacts of any global uncertainty to switch to a more expansive monetary policy setting. 'They also judged it was not yet time to move monetary policy to an expansionary stance, taking account of the range of estimates involved, given that inflation was yet to return sustainably to the midpoint of the target range and the staff's assessment that the labour market was still tight,' the minutes read. The board also highlighted they had the firepower left to kickstart global growth should the worst of global uncertainty impact the local economy. 'In finalising the policy statement, members agreed that it was appropriate to convey their commitment to both of the Board's objectives,' the board said. 'They also agreed to convey that policy was well placed to respond decisively to international developments if they were to have material implications for activity and inflation of the kind described in the severe downside scenario set out in the May Statement on Monetary Policy.' Meeting for the second time under its new dual-board structure, the RBA cut the national cash rate by 25 basis points, from 4.10 to 3.85 per cent, but RBA governor Michele Bullock revealed a 50 basis point cut had been debated. 'There was an argument and we did debate it (a 50 basis point cut) but it wasn't the strongest argument in the room,' Ms Bullock said at the time. She stressed 'inflation hurts everyone', particularly those on lower incomes and renters. Responding to a question from NewsWire on whether households could expect further relief, and what message she had for those doing it tough, she acknowledged Australians had gone through a 'really rough few years', accentuated by sharp rises in everyday prices. 'I would say that bringing inflation down is the best thing we can do to help them, while keeping employment strong,' she said. 'At the moment we are on track to deliver that. I know you're doing it tough, but conditions are improving.'
Bloomberg
7 hours ago
- Business
- Bloomberg
RBA's Hunter Sees US Tariffs Dragging on Australian Growth, Jobs
Australia's central bank expects global trade uncertainty will weigh on the domestic economy and employment, according to a senior official, helping explain policymakers' surprise switch to a dovish stance last month. 'The baseline forecast is for recent global developments to contribute to slower economic growth in Australia and a slightly weaker labor market,' Reserve Bank Assistant Governor Sarah Hunter said in a speech in Brisbane on Tuesday. She added that the RBA expects the price of tradable goods will be 'slightly dampened' too.
Reuters
11 hours ago
- Business
- Reuters
Brazil central bank chief says tightening cycle still open
BRASILIA, June 2 (Reuters) - Brazil's central bank governor said on Monday that the monetary tightening cycle is still open and that policymakers want to preserve their flexibility to digest incoming data and calibrate the appropriate terminal interest rate. "We are still discussing the hiking cycle," Gabriel Galipolo said at an event in Sao Paulo. "Flexibility means we are open." The bank's monetary policy committee meets later this month for its next rate decision, after raising the benchmark Selic rate by 50 basis points in May to 14.75%, its highest level in nearly two decades. Policymakers last month dropped forward guidance and any mention of the need for a more restrictive rate, instead highlighting the necessity of maintaining a restrictive stance for a prolonged period. The shift was widely interpreted as a signal that the aggressive 425-basis-point tightening cycle may have come to an end. Galipolo said that at this moment, as the central bank calibrates the terminal interest rate, it is "obvious" that the model increasingly weighs how long rates will remain at a contractionary level. Following official data last week showing strong growth in the first quarter for Latin America's largest economy, he emphasized the economy has continued to show surprising resilience, adding that policymakers want to gather more data to be sure activity is on a clear trend. Regarding a controversial hike in the financial transactions tax, Galipolo said it was necessary to wait for the final design of the measure before assessing its impact, an analysis that would be conducted with due caution by the central bank. He reiterated, however, that he does not consider it appropriate to use the regulatory tax as a tool for boosting revenue or supporting monetary policy. His remarks came amid market interpretations that, by making corporate credit operations more expensive, the government's measure could help cool the economy in line with the central bank's goals, potentially reducing the need for further rate hikes.
