Sterling’s Post-Budget Gains Are Probably Over

The Bank of England's Greene indicated that recent budget energy measures could help lower price expectations, potentially easing inflationary pressures in the UK economy. This statement comes as the central bank navigates economic challenges and prepares for upcoming monetary policy decisions.

A Dutch prosecutor has imposed a fine of 101 million euros on Morgan Stanley for tax evasion, marking a significant legal action against the financial institution. This penalty underscores the ongoing scrutiny faced by major banks regarding their tax practices and compliance with local laws.

Deutsche Bank has projected a further weakening of the U.S. dollar in the upcoming year, attributing this forecast to various economic factors and market conditions. The bank's analysis suggests that shifts in monetary policy and investor sentiment will play a crucial role in the dollar's performance.

Morgan Stanley has downgraded Elisa's stock due to concerns over slowing growth, reflecting a cautious outlook on the company's future performance. This decision indicates a shift in investor sentiment towards Elisa, which may impact its market position.

Morgan Stanley has reported that the risk gauge for Oracle Corp.'s debt has reached a three-year high in November, indicating increasing investor anxiety regarding the company's future, particularly in light of its significant investments in artificial intelligence expected to escalate by 2026.

Kevin Hassett has emerged as the leading candidate for the position of Federal Reserve Chair, a development that could influence the U.S. dollar's value according to investors. This news follows reports of increased expectations for a potential interest rate cut by the Fed, which could further impact market dynamics.

Morgan Stanley has downgraded Ibiden, a supplier to Nvidia, while upgrading Murata Manufacturing, reflecting a shift in market sentiment towards these companies. This decision comes amid fluctuating investor confidence in the technology sector, particularly concerning Nvidia's performance and its implications for suppliers.

The U.S. dollar is projected to decline further in early 2026, according to SEB strategists, as the normal data release cycle resumes following delays from the recent government shutdown. This decline is evident as the dollar was lower during midday trading.