Is the UK really the fastest-growing economy in the G7?
British Prime Minister Keir Starmer said Thursday that the U.K. has the fastest economic growth in the Group of Seven — the bloc made up of major economies Canada, the U.K., France, Germany, the U.S., Italy and Japan.
His comments came after data showed the U.K.’s economy grew by a better-than-expected 0.7% in the first quarter of the year.
A comparison of the seven countries’ most recent quarterly gross domestic product releases shows that the U.K. is indeed experiencing the fastest pace of economic growth. Canada, which is set to publish its first quarter GDP figures at the end of this month, saw economic growth of 0.6% in the fourth quarter of 2024.
Germany’s DAX edges toward record high
The German DAX index was 0.8% higher at 8:57 a.m. in London, closing in on its previous all-time high.
The DAX has gained 19% since the beginning of the year.
Eutelsat shares drop 8% after quarterly earnings disappoint
Shares of French satellite operator Eutelsat were down 6.6% at 8:33 a.m. in London.
The company’s third-quarter earnings, published Thursday, had showed revenues dropped 1.9% year-on-year to 300.8 million euros ($337.3 million). Analysts had expected revenues of 304.2 million euros, according to FactSet data.
— Chloe Taylor
Swiss Re reports massive beat on first-quarter profits despite hit from Los Angeles wildfires
Reinsurance giant Swiss Re reported a blowout first-quarter profit of $1.3 billion, beating analyst expectations of $938 million, despite a major hit from its Los Angeles wildfire exposure.
The group said it took a charge of $570 million “mainly related to the Los Angeles wildfires” from earlier this year.
“The first quarter of 2025 was marked by significant large loss events in our property and casualty businesses,” said Andreas Berger, chief executive of Swiss Re, in a statement to investors. “Despite this, all Business Units posted robust results, highlighting the resilience of the Group and underscoring our ability to support clients by acting as a shock absorber for peak risks.”
A stock analyst said Swiss Re’s performance for the first quarter was superior to that of its German peers Munich Re and Hannover Re, which reported their earnings earlier this week.
“One should not overemphasize the 36% consensus beat – but numbers are above the pro-rata full year target, which is clearly a positive,” said Simon Foessmeier, equity analyst at Vontobel. “Numbers compare favorably versus the two German peers and the shares should react positively. We reiterate our Buy rating.”
The stock is up 14% so far this year.
— Ganesh Rao
Watch: ECB’s Kazaks says interest rates are ‘relatively close’ to target level
The European Central Bank’s interest rates are “relatively close to the terminal rate” if inflation stays within range, Governing Council member Martins Kazaks told CNBC.
The view is similar to that expressed by fellow ECB board member Isabel Schnabel last week, who said: “The appropriate course of action is to keep rates close to where they are today – that is, firmly in neutral territory.”
Goldman Sachs expects two rate cuts this year, while JPMorgan sees one.
— Ganesh Rao
ECB’s Kazaks says interest rates are ‘relatively close’ to target level
The European Central Bank’s interest rates are “relatively close to the terminal rate” if inflation stays within range, Governing Council member Martins Kazaks told CNBC’s Silvia Amaro on Europe Early Edition.
“Currently, if one takes a look at the dynamics of inflation, we are by and large within the baseline scenario and if the baseline scenario holds, then I think we are relatively close to the terminal rate already,” said Kazaks, who is also the Latvian central bank governor.
The terminal rate is the point at which interest rates do not act as headwinds for economic growth, and are consistent with allowing the central bank to achieve its inflation target.
The ECB’s key interest rate (the deposit facility rate) currently stands at 2.25% after the central bank’s governing council voted unanimously to reduce it by 25 basis points in April.
Kazaks also said that the market’s expectation of a 25 basis point cut at the next ECB policy meeting on June 5 is “relatively appropriate, in my view.”
— Ganesh Rao
Earnings due today
Friday will be a quieter day on the corporate earnings front, but investors can still expect a handful of reports out of European firms.
Richemont, Land Securities, Swiss Re and Thales are updating investors on their finances.
— Chloe Taylor