Economy

Kering sees SEK 78 billion go up in smoke

Paris-based luxury company Kering has seen its stock plummet 15 percent on the Paris Stock Exchange today, the biggest decline since 1992, according to Bloomberg. This means that EUR 7 billion, equivalent to SEK 78 billion, has disappeared in market value.

The rout comes in the wake of yesterday's profit warning for the Gucci brand. The company is in the midst of efforts to reverse a negative trend. With new management and a new creative director, Gucci has yet to see results, writes the Financial Times.

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Swedish inflation

The growth forecast is turned down: "Still difficult"

Inflation is on the way down, but growth is weak and demand for labor is low. The situation is "still difficult in the Swedish economy", says Finance Minister Elisabeth Svantesson (M) at a press conference where the Ministry of Finance's latest forecast on the economic situation is presented.

GDP is expected to increase by 0.7 percent this year and 2.5 percent next year. Thus, the outlook for 2024 is turned up slightly from the December forecast, while growth for 2025 is turned down by 0.2 percent.

At the same time, inflation is predicted to fall significantly during the year and the forecast points to CPIF inflation of 2.1 percent, a reduction from the 2.7 percent expected in the December update.

Svantesson notes that falling inflation increases the government's room for action.

- But it is still important to be prepared for inflation to increase again, says the minister.

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The problems with the Boeing plan
Boeing expects massive emptying of the coffers

Aircraft manufacturer Boeing predicts a massive cash drain in the first quarter as a result of regulatory scrutiny and slower production of its 737 Max plane, international media write. Chief financial officer Brian West says during a conference call that he estimates cash flow to land between $4 billion and $4.5 billion.

The stock falls almost 2 percent in pre-market trading. Since the turn of the year, the share has fallen 30 percent.

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Today's stock market
Wall Street waiting for the Fed announcement

Wall Street opens mixed ahead of the Fed's announcement this evening. Yesterday, the S&P 500 closed at another new record high.
• S&P 500: +/-0.0%
• Nasdaq: +0.2%
• Dow Jones: –0.3%
The focus of the Fed's announcement is the interest rate path, which is expected to reveal how many cuts the central bank predicts during the year. Priced in is that the interest rate is left unchanged, writes CNBC.

Among the companies, Intel has received $8.5 billion in government funding for commercial semiconductor projects. The stock rises 1 percent.

Chipotle advances 4 percent after the company announced a stock split. In addition, Deutsche Bank has raised its target price for the restaurant company and reiterated its buy recommendation.

Among the shares that are traded down is the Nasdaq, which retreats 4 percent.

The AI company Super Micro Computer, which crashed on Tuesday after an announced share split, is trading down just over 2 percent. Nvidia is traded up 1 percent.

The New York stock exchanges yesterday
S&P 500: +0.6%
Nasdaq: +0.4%
Dow Jones: +0.8%