Economy

ECB vs. inflation
European Central Bank raises interest rate to 2.5 percent

The European Central Bank is raising the deposit rate by 25 basis points to 2.5 percent.

This after inflation in the eurozone was measured at 3.3 percent at an annual rate in August – with energy prices increasing by 14.3 percent at an annual rate.

"The conflict in the Middle East continues to create inflationary pressure and inflation is expected to remain well above target for an extended period of time," the ECB wrote in the press release.

The announcement was what analysts and the market had expected. 

Mid-term elections in the USA
Analyst: The market is hesitant – few believe in money rain

Trump's campaign promise to distribute $5,000, almost SEK 50,000, to all adults risks overheating the already strong US economy. That's what Bloomberg editor Mark Cudmore says after last night's speech.

According to Cudmore, the move would reinforce several market trends, including pressure on US government bonds and the dollar.

- The market's reaction is generally very muted, precisely because almost no one believes this will happen, he says.

How Trump will be able to distribute more than $ 1 trillion without fueling inflation will likely be the subject of great debate, writes Wall Street Journal politics editor Damian Paletta.

Trump's promise "may make headlines", but the market is instead focused on the US repurchase of government bonds later today and tomorrow's inflation outcome for August, TD Securities strategist Prashant Newnaha tells Bloomberg.

Ryanair CEO may receive 1.6 billion in new bonus program

At today's general meeting, Ryanair decided that CEO Michael O'Leary will receive an option program that could be worth at least 1.6 billion kronor.

The assumptions are that he stays until 2032, and that the share reaches 42 euros compared to today's approximately 27 euros. A large part of the shareholders were against the proposal – almost 40 percent voted no to the option program.

Michael O'Leary has an annual salary of just over 12 million kronor and a bonus of six million. 

Today's stock market
Uneasy Wall Street – oil price reaches 106 dollars per barrel

The New York stock markets continue to decline and unrest in the Middle East is driving up oil prices. At 17.40 the indices are declining:

· S&P 500: -0,4 %
· Dow: -0,5 %
· Nasdaq: -0,4 % 

The oil price rises 4.5 percent to 106 dollars per barrel for fuel oil. Today's producer price figures raised expectations that the US Federal Reserve will raise interest rates, Reuters reports. CPI figures are expected tomorrow.

Several of the major tech companies are falling, including  Nvidia with a decline of 2 percent. Intel falls 6 percent. Apple is going against the trend, rising more than 2 percent after yesterday's product center.

Internet forum Reddit's stock is surging 7 percent after the latest user statistics turned out to be higher than expected.