David Marsh, chairman of OMFIF, discusses the potential takeover battle between UniCredit and Commerzbank, and the German banking environment.
04:10
3 minutes ago

David Marsh, chairman of OMFIF, discusses the potential takeover battle between UniCredit and Commerzbank, and the German banking environment.
04:10
3 minutes ago

A press preview held for the ‘The Future of Money’ exhibition at the Bank of England Museum in London, United Kingdom on February 27, 2024.
Rasid Necati Aslim | Anadolu | Getty Images
LONOND — Banknotes featuring a portrait of King Charles III entered circulation on Wednesday for the first time, the Bank of England said in a statement.
Charles will be pictured on the front of the £5, £10, £20, and £50 banknotes, and will be seen through the notes’ see-through security window.
Otherwise the notes will remain unchanged in their design. As well as monarchs, banknotes in the U.K. feature historical characters including Winston Churchill, Jane Austen, JMW Turner and Alan Turing.
Images of the notes depicting Charles were first released in December 2022 after Queen Elizabeth II passed away in September of the same year.
New bank notes that bear a portrait of King Charles III, and which will enter circulation on June 5, 2024, are displayed for a photograph after having been presented to Britain’s King Charles III by Bank of England Governor Andrew Bailey and Bank of England Chief Cashier Sarah John, at Buckingham Palace in London on April 9, 2024.
Yui Mok | Afp | Getty Images
Notes featuring Queen Elizabeth II will remain legal tender and will be in circulation alongside those showing Charles, the Bank of England said. The two monarchs are the only ones to be depicted on banknotes, as this tradition only began in 1960.
“The new banknotes will only be printed to replace those that are worn, and to meet any overall increase in demand for banknotes,” the Bank of England said. “This means the public will begin to see the new King Charles III notes very gradually.”
“This is a historic moment, as it’s the first time we’ve changed the sovereign on our notes,” Bank of England Governor Andrew Bailey said.
People would, however, be able to exchange notes they already have for the new ones featuring Charles. A series of auctions of low-serial numbered notes will be held in the coming months, with proceeds going to charity, the Bank of England said.
Coins showing a portrait of the British king have already entered into circulation. They show him facing the left, in line with a tradition that says the direction of the profile switches for each successive monarch.

A construction site with new apartments in newly built apartment buildings.
Patrick Pleul | Picture Alliance | Getty Images
Germany’s housebuilding sector has gone from bad to worse in recent months.
Economic data is painting a concerning picture, and industry leaders appear uneasy.
“The housebuilding sector is, I would say, a little bit in a confidence crisis,” Dominik von Achten, chairman of German building materials company Heidelberg Materials, told CNBC’s “Squawk Box Europe” on Thursday.
“There are too many things that have gone in the wrong direction,” he said, adding that the company’s volumes were down significantly in Germany.
In January both the current sentiment and expectations for the German residential construction sector fell to all-time lows, according to data from the Ifo Institute for Economic Research. The business climate reading fell to a negative 59 points, while expectations dropped to negative 68.9 points in the month.
“The outlook for the coming months is bleak,” Klaus Wohlrabe, head of surveys at Ifo, said in a press release at the time.
Meanwhile, January’s construction PMI survey for Germany by the Hamburg Commercial Bank also fell to the lowest ever reading at 36.3 â after December’s reading had also been the lowest on record. PMI readings below 50 indicate contraction, and the lower to zero the figure is, the bigger the contraction.
“Of the broad construction categories monitored by the survey, housing activity remained the worst performer, exhibiting a rate of decline that was among the fastest on record,” the PMI report stated.
The issue has also been weighing on Germany’s overall economy.
German Economy and Climate Minister Robert Habeck on Wednesday said the government was slashing its 2024 gross domestic product growth expectations to 0.2% from a previous estimate of 1.3%. Habeck pointed to higher interest rates as a key challenge for the economy, explaining that those had led to reduced investments, especially in the construction sector.
Ifo’s data showed that the amount of companies reporting order cancellations and a lack of orders had eased slightly in January, compared to December. But even so, 52.5% of companies said not enough orders were being placed, which Wohlrabe said was weighing on the sector.
“It’s too early to talk of a trend reversal in residential construction, since the tough conditions have hardly changed at all,” he said. “High interest rates and construction costs aren’t making things any easier for builders.”
Heidelberg Materials’ von Achten however suggested there could be at least some relief on the horizon, saying that there could be good news on the interest rate front.

“I’m positive inflation really comes down now in Germany, maybe the ECB [European Central Bank] is actually earlier in their decrease of interest rates than we all think, lets wait and see, and if that comes then obviously the confidence will also come back,” he said.
Even if interest rate cuts are a slow process, von Achten says as soon as “people see the turning point” confidence should return.
Speaking to the German Parliament about the economic outlook on Thursday, Habeck said the government was expecting inflation to continue falling and return to the 2% target level in 2025.
The European Central Bank said at its most recent meeting in January that discussing rate cuts was “premature,” even as progress was being made on inflation. While the exact timeline for rate cuts remains unclear, markets are widely pricing in the first decrease to take place in June, according to LSEG data. Â Â

Norway boasts the highest electric vehicle adoption rate in the world. Some 82% of new car sales were EVs in Norway in 2023, according to the Norwegian Road Federation (OFV). In comparison, 7.6% of new car sales were electric in the U.S. last year, according to Kelley Blue Book estimates. In the world’s largest auto market, China, 24% of new car sales were EVs in 2023, according to the China Passenger Car Association.
 “Our goal is that all new cars by 2025 will be zero-emission vehicles,” said Ragnhild Syrstad, the state secretary of the Norwegian Ministry of Climate and Environment, “We think we’re going to reach that goal.”
The Norwegian government started incentivizing the purchase of EVs back in the 1990s with free parking, the use of bus lanes, no tolls and most importantly, no taxes on zero-emission vehicles. But it wasn’t until Tesla and other EV models became available about 10 years ago that sales started to take off, Syrstad said.
Norway’s capital, Oslo, is also electrifying its ferries, buses, semi trucks and even construction equipment. Gas pumps and parking meters are being replaced by chargers. It’s an electric utopia of the future. Norway’s grid has been able to handle the influx of EVs so far because of its abundance of hydropower.
“Electric cars are maybe a third of the price of gasoline because we have close to 100% hydropower. It’s cheap. It’s available and renewable. So that’s a big advantage,” said Petter Haugneland, the assistant secretary general of the Norwegian EV Association.
CNBC flew across the globe to meet with experts, government officials and locals to find out how the Scandinavian country pulled off such a high EV adoption rate.
Watch the documentary for the full story.Â

Octavio Marenzi, CEO at Opimas, weighs in on UniCredit’s latest earnings report and the outlook for the European banking sector.
02:03
6 minutes ago
Signage ahead of the World Economic Forum Annual Meeting in Davos, Switzerland on Jan. 15th, 2024.
Adam Galici | CNBC
This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
Asia markets dip
U.S. markets were closed Monday for Martin Luther King Day, but futures trading on Tuesday pointed to a softer start to the week as investors looked forward to more earnings from big Wall Street banks including Goldman Sachs and Morgan Stanley. Asia markets fell, led lower by declines in Hong Kong stocks, as Japan shares cooled off from their record-breaking rally.
ECB tug of war
European Central Bank policymaker and hawk Robert Holzmann said the ECB may not deliver any interest rate cuts this year. Speaking to CNBC at the World Economic Forum in Davos, Switzerland, he said there’s a possibility of zero rate cuts this year — it’s not something markets were expecting. Still, Portugal’s central bank governor Mario Centeno said the ECB is on the right track in its fight against inflation, and the medium term trajectory is “very positive right now.”
China needs fixing
Kristalina Georgieva, managing director of the International Monetary Fund, warned China needs significant and structural reforms in order to avoid any large slowdown in growth. Georgieva told CNBC on the sidelines of Davos that the world’s second-largest economy is facing both short-term and long-term challenges.
AI out for your jobs
Almost 40% of jobs globally could be taken over by the rise of artificial intelligence, according to the International Monetary Fund. And it could also affect high-income countries more than low-income economies, the IMF warned, noting that AI could worsen inequality as well.
[PRO] Morgan Stanley picks ‘alpha’ stocks
Alpha stocks are those that can beat the benchmark index, and Morgan Stanley picked its favorite plays in Asia. They include the Asia-Pacific region excluding Japan, and had a market capitalization of over $5 billion. Quality, value and sentiment were the basis of the U.S. investment bank’s selection.
It’s typically quieter on days when the U.S. markets are shut, but action continued from across the Atlantic as the World Economic Forum in Davos, Switzerland commenced Monday.
Day 1 of the forum saw discussions on everything ranging from China and artificial intelligence, to crypto and the European Central Bank. Global leaders and thinkers raised some key points and fears about these hot topics.
China, for one, cannot seem to catch a break. IMF chief Kristalina Georgieva warned that the world’s second largest economy could see an even bigger cooldown in growth if its property and debt crisis isn’t tackled by major structural reforms.
“Ultimately, what China needs are structural reforms to continue to open up the economy, to balance the growth model more towards domestic consumption, meaning create more confidence in people, so [they] don’t save, they spend more,” Georgieva said.
The fund also reaffirmed its expectations that China’s GDP could slow, predicting a 4.6% growth this year, if the real estate sector doesn’t improve.
The IMF also touched upon AI taking over about 40% of global jobs, which could have a much larger impact on high income economies.
Its predicted about 60% of jobs in high-income nations will be impacted, 40% in emerging markets and 26% in low-income economies, given their respective exposure to AI.
— CNBC’s Vicky McKeever and Sam Meredith contributed to this story.
Flags displayed ahead of the World Economic Forum Annual Meeting in Davos, Switzerland.
Adam Galici | CNBC
This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
European markets dip
European stocks started the week on softer footing as the World Economic Forum in Davos, Switzerland kicked off Monday. Investors also digested data which showed the region’s largest economy, Germany, shrinking 0.3% in 2023. U.S. markets were closed Monday for Martin Luther King Day.
ECB could defy markets
European Central Bank policymaker and hawk Robert Holzmann said the ECB may not deliver any interest rate cuts this year. Holzmann told CNBC at the World Economic Forum in Davos, Switzerland, that he sees a possibility of zero rate cuts this year, defying market expectations.
China needs fixing
Kristalina Georgieva, managing director of the International Monetary Fund, warned China needs significant and structural reforms in order to avoid any large slowdown in growth. Georgieva told CNBC on the sidelines of Davos that the world’s second-largest economy is facing both short-term and long-term challenges.
AI out for your jobs
Almost 40% of jobs globally could be taken over by the rise of artificial intelligence, according to the International Monetary Fund. And it could also affect high-income countries more than low-income economies, the IMF warned, noting that AI could worsen inequality as well.
[PRO] Markets only care about rate cuts
Markets are now more hopeful than ever of interest rate cuts by the Federal Reserve, especially after Friday’s negative producer price index for December. But the so-called sticky inflation, that encompasses a variety of things including housing costs, is still rising. This could mean the markets and the Fed are out of sync this time on their views of rate cuts.
It’s typically quieter on days when the U.S. markets are shut, but action continued from across the Atlantic as the World Economic Forum in Davos, Switzerland commenced Monday.
Day 1 of the forum saw discussions on everything ranging from China and artificial intelligence, to crypto and the European Central Bank. Global leaders and thinkers raised some key points and fears about these hot topics.
China, for one, cannot seem to catch a break. IMF chief Kristalina Georgieva warned that the world’s second largest economy could see an even bigger cooldown in growth if its property and debt crisis isn’t tackled by major structural reforms.
“Ultimately, what China needs are structural reforms to continue to open up the economy, to balance the growth model more towards domestic consumption, meaning create more confidence in people, so [they] don’t save, they spend more,” Georgieva said.
The fund also reaffirmed its expectations that China’s GDP could slow, predicting a 4.6% growth this year, if the real estate sector doesn’t improve.
The IMF also touched upon AI taking over about 40% of global jobs, which could have a much larger impact on high income economies.
Its predicted about 60% of jobs in high-income nations will be impacted, 40% in emerging markets and 26% in low-income economies, given their respective exposure to AI.
— CNBC’s Vicky McKeever and Sam Meredith contributed to this story.

Some firms sustain their businesses by taking on more debt that they can repay. Economists call them zombie companies. When compared to their peers, zombies are smaller in size and deliver lower returns to investors. These companies distort markets, keeping resources from their fundamentally sound competitors. Banks and governments keep zombie firms alive with bailout loans. As the Federal Reserve resets the economy with higher interest rates, many zombie firms are filing for bankruptcy.
10:01
Tue, Oct 31 20236:00 AM EDT

The most popular question on Ark Invest’s website has nothing to do with investing in the U.S., according to the firm’s CEO and Chief Investment Officer Cathie Wood.
“The No. 1 question on our website as we track these questions is: Why can’t we buy your strategies in Europe?” the tech investor told CNBC’s “ETF Edge” this week.
Wood’s firm expanded its exposure to Europe last month by acquiring the Rize ETF Limited from AssetCo.
“We found this little gem of a company inside of AssetCo, which philosophically and from a DNA point-of-view, is very much like Ark,” Wood said. “They know what’s in their portfolios. They’re very focused on the future, thematically oriented. They do have a sustainable orientation, which is absolutely essential in Europe.”
She speculates 25% of total demand for Ark’s research strategies comes from Europe.
“We’re terribly impressed with the quality of their [Rise ETF] own research and due diligence,” Wood said. “We saw it during the deal, and I think we’re going to hit the ground running if the regulators approve our strategies there. And, of course, we’d like to distribute their strategies throughout the world including the US.”
Wood’s firm has around $25 billion in assets under management, according to the firm. As of Sept. 30, FactSet reports Ark’s top five holdings are Tesla, Coinbase, UiPath, Roku and Zoom Video.

The Tesla Inc. Model Y electric vehicle during the launch in Kuala Lumpur, Malaysia, July 20, 2023.
Samsul Said | Bloomberg | Getty Images
This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
Markets slide
U.S. stock markets slid on Wednesday as earnings season picked up steam and Treasury yields touched multi-year highs — breaking above 4.9% for the first time since 2007. Asia markets started the day on the back foot, with stocks in Japan, South Korea and Hong Kong seeing falls of about 2% each by midday trading. Hong Kong-listed shares of Chinese EV makers also plunged Thursday morning after Tesla CEO Elon Musk delivered grim news on Tesla’s outlook overnight.
Tesla misses on earnings
Tesla reported third-quarter results that missed expectations on both earnings and revenue for the first time since the second quarter of 2019. The electric vehicle maker reported adjusted earnings of 66 cents per share vs. 73 cents per share expected and revenue of $23.35 billion per share vs. $24.1 billion expected. Tesla’s total operating margin also came in significantly lower at 7.6%, from the year-ago quarter’s 17.2%.
Netflix profit tops expectations
Netflix’s password-sharing crackdown and its new ad-supported tier boosted subscriber growth in the third quarter. The streaming giant added 8.76 million global subscribers during the quarter, higher than expectations of 5.49 million and the most it’s added since the second quarter of 2020 – when Covid restrictions kept people at home. Its earnings came in at $3.73 per share, better than the $3.49 per share expected.
iPhone 15 sales off to a slow start in China
A month after Apple’s iPhone 15 came out, analysts and investors are starting to see signs of slow demand in China versus last year. Sales of iPhone 15 models are down 4.5% for the first 17 days in Apple’s third largest market compared to last year, according to an estimate from Counterpoint Research.
[PRO] JPMorgan warns of rate cut impact on stocks
JPMorgan Asset Management says cut in interest rates by the Federal Reserve next year would likely be bad news for U.S. equity investors. Stocks have typically rallied on multiple occasions over the past two years on any dovish signal from central bankers but JPMorgan believes Fed cuts in 2024 would likely coincide with declining corporate earnings, creating headwinds for stocks. Find out here where to invest.
U.S. stock markets closed out Wednesday with sweeping declines. The yield on the benchmark 10-year Treasury hit 4.908%, rising above 4.9% for the first time since 2007 as investors scoured economic data for clues on the Federal Reserve’s interest rate trajectory.
Housing starts rose in September, but at a slower-than-expected rate, according to data released Wednesday. Building permits fell last month, but less than economists anticipated. This arrives a day after consumers showed surprising strength in September, boosting retail sales well above expectations.
Traders are still expecting an over 85% chance that the Fed will hold its rates steady when it announces its next monetary decision on Nov. 1, but the retail sales figure has given way to some bets of another hike in December.
Markets seemingly have no dearth of catalysts this week as earnings season gathers steam. Tesla missed third-quarter expectations on both profit and revenue. Netflix’s password-sharing crackdown efforts along with interest in its new ad-supported tier set its quarter up for success.
Netflix’s results also showed that the streaming giant is back on track. Just in April 2022, it had reported a loss of 200,000 subscribers. Turns out, a cheaper advertising tier — a product Netflix hoped would appeal to those who had shared passwords — helped the company add more subscribers. Of course, not as much as it did during the throes of the Covid-19 lockdowns but a step in the right direction.
More lies ahead for investors who will focus on Federal Reserve Chair Jerome Powell’s speech at noon ET. “Powell is always tacking back to whatever helps feed the narrative that they need to stay vigilant, and for understandable reasons,” said Luke Tilley, chief economist at Wilmington Trust.
He is expected to assure markets the central bank is committed to its fight against inflation, but maybe this time with a little less force.

Sue Trinh, co-head of global macro strategy at Manulife Investment Management, discusses the outlook for the banking sector, saying that there are few indicators for a widespread banking crisis.
04:39
Thu, Apr 20 20235:56 AM EDT

Christine Lagarde, president of the European Central Bank (ECB).
Bloomberg | Bloomberg | Getty Images
Goldman Sachs changed its expectations for European Central Bank policy, arguing that recent data, comments from board members, and fewer concerns over the banking sector has allowed for further hawkish action.
The investment bank had lowered its expectations for the ECB’s terminal policy rate to 3.5% in the wake of the collapse of Silicon Valley Bank earlier this year. The event sparked concerns that central banks were moving at too fast a pace and needed to take a break from increasing rates.
However, “banking tensions have receded in recent weeks as the risk of an outright U.S. banking crisis has declined sharply and European bank stock/wholesale funding measures have retraced a large proportion of their large drop in early March,” Goldman Sachs analysts said in a research note Monday.
The bank now believes it will stop hiking (the so-called terminal rate) at 3.75%. The ECB’s benchmark rate has been at 3% since its latest rate decision in March.
In addition, Goldman Sachs said that inflation data is still “very strong,” fueling the argument for more rate hikes. Headline inflation across the euro zone dropped to 6.9% in March, according to preliminary data. In February, the headline rate stood at 8.5%.
Despite this drop, core inflation — which excludes volatile energy, food, alcohol and tobacco prices — rose slightly from the previous month, highlighting the persistence of high prices in the region’s economy.
Olli Rehn, the governor of the Bank of Finland and a member of the ECB’s board, said that “inflation is still by far too high.” Speaking to CNBC last week at the IMF Spring meetings, he added that the central bank must “carry on and act consistently.”
At the March meeting, the ECB did not provide any guidance for upcoming rate decisions, saying these will be data-dependent and happen on a meeting-by-meeting basis.
However, ECB watchers expect a rate increase of 25 or 50 basis points when the Governing Council meets next month.
“We view the choice between 25 basis points and 50 basis points in May as a close call given receding banking risks, growth resilience and ongoing strength in underlying inflation,” Goldman Sachs said.
However, the investment bank is, for the moment, working under the assumption that the ECB will push rates higher by 25 basis points at the May, June and July meeting.
“Reasons for a more gradual speed of tightening from here include that the recent banking stresses are likely to leave some mark on bank lending, we expect some cooling in sequential core inflation in coming months, and the uncertainty around the global outlook has risen,” the analysts said.


Tatjana Puhan, deputy chief investment officer at Tobam, discusses the outlook for stock markets and investors’ reaction to recent developments, including the banking crisis.
The European Central Bank has carried through with a large interest rate increase Thursday, brushing aside predictions it might dial back as US bank collapses and troubles at Credit Suisse fed fears about the impact of higher rates on the global banking system.
The ECB hiked rates by half a percentage point Thursday, underlining its determination to fight high inflation.
In a post-meeting statement, the bank called the banking sector in the 20 countries using the euro currency “resilient,” with strong finances.
Explained: Why the fall of Silicon Valley Bank matters to India
Explained: Why the fall of Silicon Valley Bank matters to India
It says it’s “monitoring current market tensions closely and stands ready to respond as necessary to preserve price stability and financial stability in the euro area.”
ECB head Christine Lagarde said last week that it was “very likely” the bank would raise its benchmarks by a half-percentage point, part of a series of rapid rate hikes aimed at getting inflation down from 8.5 per cent — far above the bank’s target of 2 per cent.
That was before Silicon Valley Bank in the US went under last week after suffering losses on government-backed bonds that fell in value due to rising interest rates.
Then, globally connected Swiss bank Credit Suisse saw its shares plunge this week and had to turn to the Swiss central bank for emergency credit.

An LNG import terminal at the Rotterdam port in February 2022.
Federico Gambarini | Picture Alliance | Getty Images
The U.S. is exporting more LNG to Europe as a result of Russia’s war in Ukraine and cuts made to natural gas supplies ahead of winter, but there has been a buildup of LNG vessels waiting to unload at ports with European infrastructure unable to handle the increased LNG shipments.
60 LNG tankers have been idling or slowly sailing around northwest Europe, the Meditteranean, and the Iberian Peninsula, according to MarineTraffic. One is anchored at the Suez Canal. Eight LNG vessels that came from the U.S. are underway to Spain’s Huelva port.
“The wave of LNG tankers has overwhelmed the ability of the European regasification facilities to unload the cargoes in a timely manner,” said Andrew Lipow, president of Lipow Oil Associates.
These delays postpone the tankers’ return to the Gulf Coast of the United States to pick up the next load, according to Lipow, and as a result, natural gas inventories rise more than the market expected.
The underlying infrastructure issue is a lack of European regasification capacity due to a shortage of regasification plants and pipelines connecting countries that have regasification facilities. As a result, the amount of LNG on the water — floating storage — increases and in turn drives down the price of natural gas.
“European gas storage continues to rise and now exceeds 93%,” said Jacques Rousseau, managing director, global oil and gas for ClearView Energy Partners LLC.
Rousseau said the increase in floating storage, with vessels needed to move capacity around the globe tied up for longer, has contributed to an approximate doubling in LNG tanker rates year over year.
Energy experts tell CNBC they are keeping an eye on an EU LNG price cap. The cap was discussed last Thursday even as prices have come down. “The price cap potentially pushes traders out of the market which would impact future supply arriving in Europe,” Rousseau said.
European gas prices had soared above 340 euros ($332.6) per megawatt hour in late August, but this week dipped below $100 for the first time since Russia cut supplies. Before the war, the price had been as low as 30 euros.
Russia, which supplies a large portion of natural gas to Europe, cut gas supplies as a response to sanctions after the country’s war with Ukraine.

Uncertainty around the U.K. housing and mortgage market has spread among first-time buyers.
Resolution Productions via Getty Images
Mortgage products have been pulled, payments are doubling and lenders are backing out of agreed deals; concern and uncertainty among Brits trying to buy a home skyrocketed last month after Finance Minister Kwasi Kwarteng announced his “mini-budget.”
His controversial plan foresees swooping tax cuts and more relaxed rules and regulations for businesses. While the cost-of-living crisis in the U.K. continues, Kwarteng argues his budget will boost growth. Critics say that it will mostly help the rich and make the U.K. more unequal.
The mini-budget did have one positive for those trying to buy a home: Stamp duty, a tax many buyers have to pay when purchasing property, was reduced.
Only people whose property is worth more than a certain threshold pay stamp duty, and for first time buyers this was already set at a higher level than the average U.K. property price before the mini-budget came into effect. The changes therefore don’t impact a lot of first-time buyers.
While the cuts will benefit some buyers, any gains might be erased by other rising costs, explains Paresh Raja, CEO of financial services firm Market Financial Solutions.
“The cuts to stamp duty […] will definitely help. Unfortunately, a number of other factors are simultaneously making their lives harder: namely, inflation, interest rates and mortgage market disruption,” he told CNBC Make It.
Francis Gill, a financial advisor at London-based firm Humboldt financial, has a similar opinion.
“For people who were very close to being able to afford a purchase, but were still saving for stamp duty costs, this is a win and they should be able to bring forward their purchase date. However, what they have saved on SDLT [stamp duty] will likely be eaten up on higher mortgage rates pretty quickly,” he said.
The housing and mortgage sector has been especially affected, with lenders pulling hundreds of mortgage deals or pricing them at a much higher level after sovereign bond yields and Bank of England rate expectations both surged. This pushed up costs for borrowers as the BOE’s base rate helps price all sorts of loans and mortgages in Britain.
According to Moneyfacts data, the average rate for a 2-year fixed mortgage surpassed 6% this week — up from 2.25% just a year ago. This could go up even further, Nicholas Mendes, a technical mortgage manager at mortgage broker and advisor John Charcol, believes.
“With lenders costs increasing, volatile economic outlook, and factoring in service levels and future rate rises expect, we could be seeing average rate of 7% in the new year,” he said.
Many borrowers and soon-to-be borrowers are already concerned that they will not be able to afford their mortgage payments, which are set to more than double in thousands of cases. Research and expert advice are therefore key for anyone looking for a mortgage deal right now, Gill explains.
“Make sure your credit score is accurately reflected, make sure they speak to an independent broker, consider fixing for a period {…] and consider any Early Repayment Charges,” he suggests.
“Speaking to someone who can expertly analyse their situation is key. Really, really consider if the rates are this high in 2/3 years, (however long they may be considering fixing for) whether the mortgage is affordable,” he adds.
The market is pointing to a difficult 12 months
Nicholas Mendes
Technical mortgage manager at John Charcol
Markets are expecting a “difficult 12 months,” Mendes explains. Lenders could increase rates further and the mortgage base rate could rise, while a recession and the cost-of-living crisis are likely to put pressure on homeowners, he says.
But it might not all be doom and gloom as the next year unfolds.
“Property prices are expected to drop in 2023, likewise we are expecting rates to fall slightly from the highs they are today,” Mendes explains.
Raja believes markets could stabilize, or at least be less of rollercoaster ride compared to the last two weeks. “The lending market will calm down after this particular turbulent period. We will not continue to see such fluctuations in rates or products being pulled,” he said.
This would at least ease some of the uncertainty homeowners are currently facing.
For people trying to get onto the property ladder, the chaos might even have some long-term silver linings as others are forced to leave the property market, Gill points out.
“There may be an opportunity if a lot of buy2let landlords leave the market, for there to be an influx of properties for sale and prices come down, they may actually now be able to get on the ladder,” he believes.

International travel may still have its challenges.
But finding a solid hotel for a business trip isn’t one of them.
CNBC Travel and the market data firm Statista today release a ranking of the “Best Hotels for Business Travelers” in Europe.
This is the first ranking of its kind between CNBC and Statista, who are also releasing hotel rankings in the Middle East today. Asia-Pacific rankings were published in September.
In total, we analyzed more than 10,000 four- and five-star hotels in 117 locations to produce lists corporate travelers can trust. We did this using a three-step process:
For full details about our research methodology, click here.
From Amsterdam to Zurich, here is the full list of the European winners in PDF format — complete with final scores — some of which are highlighted below.
Alternatively, you can search by city or country using the table here:
Waldorf Astoria Amsterdam
Source: Waldorf Astoria Amsterdam
The Waldorf Astoria Amsterdam tied for the highest scores for customer reviews among Europe’s largest financial centers, a distinction it shared with Rome’s Villa Spalletti Trivelli. Travelers rave about the canal-side location, but they say it’s the smaller points — the turndown service, fresh tulips in the room, the luxurious bedding — that make it one of Amsterdam’s finest hotels.
In a city with ample competition from major hotel brands, the owner-run Louisa’s Place — named after Queen Louise of Prussia — topped our list. Built around 1900, the boutique hotel in West Berlin has 47 spacious rooms, each with high ceilings and separate bedrooms.
Steigenberger Wiltcher’s location on the prestigious Avenue Louise — and its style, aptly described as “luxurious simplicity” — make it a favorite with business travelers in Belgium. Travelers can take an online tour of the hotel before visiting, virtually walking the hallways to peer into its restaurants and ballrooms.
Charlottehaven
Source: Charlottehaven
Charlottehaven has hotel apartments in two areas — the larger units in the “Garden” and the newer apartments in the “Tower” which have 180-degree views of the city. The hotel combines kitchens, laundry areas and other comforts of a house with the amenities of a hotel. Nearby metro and train stations make it easy to commute around the city too.
The Merrion
Source: The Merrion
Scoring 3.78 (out of a possible 4 points), the five-star Merrion hotel in the center of Dublin tied for the second highest overall score in Europe. Its 142 rooms and suites are inside four restored Georgian townhouses dating to the 1760s. There’s also a two-star Michelin restaurant — Ireland’s first — plus two bars, a spa and six meeting spaces.
Sofitel Frankfurt Opera
Source: Sofitel Frankfurt Opera
The Sofitel Frankfurt Opera is on Opera Square, or the Opernplatz, near the city’s famed opera house. In addition to its central location, the hotel wins over business travelers for the small touches that make for seamless stays: complimentary car valets and minibar beverages, 24-hour room service and stylish rooms outfitted with Illy espresso machines and Bose sound systems.
Four Seasons Hotel des Bergues
Source: Four Seasons Hotel des Bergues Geneva
Marble bathrooms, down pillows and balconettes with unobstructed views of Lake Geneva — these are some of the reasons the Four Seasons Hotel des Bergues Geneva consistently ranks among the city’s most luxurious places to stay. Business travelers can take meetings to the next level with private tours of the nearby Patek Philippe Museum or helicopter tours over Mont Blanc — with all details organized by the hotel.
The Langham London
Source: The Langham London
The Langham London is a U.K. institution. It’s got a West End location, restaurants helmed by the two-Michelin starred chef Michel Roux Jr., and a bar, Artesian, that was named the world’s best four times in a row. Travelers who book executive rooms or higher get access to The Langham Club, which comes with perks like private check-ins, pressing services, all-day dining options and private meeting spaces.
Gran Hotel Ingles
Source: Gran Hotel Ingles
It’s rare for a small property to outrank major hospitality companies, but Gran Hotel Ingles has done exactly that. “Pure luxury” is how the 48-room hotel is described by travelers, from its sleek interior to its cocktail weekend events accompanied by live music. Opened in 1886, the hotel is said to be Madrid’s oldest.
Hotel Viu Milan
Source: Marriott International
The website for Hotel Viu Milan leads off — not with its rooms or restaurants — but with one word: bleisure. That’s because this hotel is serious about blending business stays with relaxation: morning yoga on the terrace, aperitives after work and dinner at the on-site restaurant Morelli, helmed by the Italian Michelin-starred chef Giancarlo Morelli.
The Thief
Source: The Thief
The Thief Hotel on Tjuvholmen, or “Thief Islet,” takes its name from its seedy past as a hotbed of criminals. Now it’s an upmarket neighborhood known for art and architecture. Art features prominently in the hotel too, as do designer furniture and upmarket Nordic cuisine.
The historic Hotel de la Ville, next to the Spanish Steps, is a Rocco Forte Hotel — a company bearing the name of one of Italy’s most famous hotelier families. Business travelers love its rooftop bar and central courtyard, but it’s the concierge — known to help with insider tips and hard-to-book restaurant reservations — that gives the hotel the edge in Italy’s capital city.
Le Bristol Paris
Source: Le Bristol Paris | Claire Cocano
Guests of Le Bristol Paris can count President Emmanuel Macron as a neighbor — Elysee Palace, the official residence of France’s president — is just steps away. From white-gloved service to its three-Michelin-starred restaurant Epicure, the hotel is the height of Parisian elegance and culinary excellence.
Grand Hotel Stockholm
Source: Grand Hotel Stockholm
Tying for No. 2 in overall points with Dublin’s The Merrion, the stylish Grand Hotel Stockholm secured the top score for its amenities and facilities, not only in Sweden, but in all of Europe. Its waterfront location is bolstered by four restaurants, a champagne bar, spa and gym, the latter with personal trainers. Room service is available round the clock for those with late-night work to complete.
This grand hotel built in 1845 is the former home of Austrian royalty. The all-suite boutique hotel has a restaurant with two Michelin stars and a wine cellar that is said to house some 60,000 bottles of wine.
The Dolder Grand
Source: The Dolder Grand
The Dolder Grand may have opened in 1899, but this hotel outside of Zurich’s city center has an almost futuristic feel. The interior features works by Salvador Dali and Jean Tinguely, and it has a two-Michelin starred restaurant and a 4,000-square-foot spa. From royalty to rock legends, former guests include King Charles and The Rolling Stones.
Shanghai, Mumbai, Melbourne and beyond: CNBC names the best Asia-Pacific hotels for business travel
— Natalie Tham contributed to this report.