Annual inflation in the U.K. rose to 2.6% in November, up from 2.3% in
October, aligning with market expectations.
This increase has dimmed the prospects of a rate cut by the Bank of
England during its meeting on Thursday.
As of early Wednesday, yields on the U.K.’s 10-year Gilts were largely
unchanged at 4.567%, while the British pound softened slightly, slipping
0.14% to trade around $1.2700 against the U.S. dollar.
UniCredit (LON:0RLS) increases potential stake in Commerzbank
UniCredit said on Wednesday that it has expanded its potential stake in
Commerzbank (ETR:CBKG) to 28% through additional derivatives, fueling
speculation about a possible acquisition of the German lender.
UniCredit, Italy’s second-largest bank, revealed that 9.5% of its holding in
Commerzbank is a direct stake, while the remaining 18.5% has been
secured through derivative instruments.
The bank has also sought approval from the European Central Bank to
increase its stake in Commerzbank to as much as 29.9%. At the same time,
UniCredit is pursuing a bid for its domestic competitor, Banco BPM
(LON:0RLA).
U.K. inflation dampens rate cut hopes
