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31 minutes ago
Cisco CEO says private company valuations are ‘crazy again’
Cisco CEO Chuck Robbins attends the World Economic Forum in Davos, Switzerland on January 18, 2023.
Holly Adams | Bloomberg | Getty Images
Valuations for some private companies are “going crazy again,” according to Cisco’s chief executive.
Chuck Robbins said valuations for companies focused on new technologies such as artificial intelligence (AI) have returned to their heydays seen during the low interest rate environment caused by the pandemic.
“When you enter [generative] We’re seeing some of the private valuations start to get derailed again by AI and other things,” he said during a panel moderated by CNBC at the World Economic Forum in Davos, Switzerland. .
“It’s ironic that we’re doing what we went through 48 months ago so quickly. It’s just incredible,” he said.
— Karen Gilchrist
9 minutes ago
Nasdaq CEO says IPO market could restart in second quarter
Nasdaq CEO Adena Friedman spoke at WEF in Davos, Switzerland on May 24, 2022.
Adam Garica | CNBC
Nasdaq Chairman and CEO Adena Friedman said the initial public offering (IPO) market could “open up again” in the second half of this year as investor confidence increases.
“What’s happening in the market? — As a result of the belief that the cost of capital may fall throughout the year. — “It means investors can start thinking again about how they model corporate earnings,” he said during a panel moderated by CNBC.
Although market performance last year was “top-heavy,” Friedman added that the broader market, including small-cap stocks, is starting to see improvement in valuations.
“They know that the cost of capital is likely to continue to decline steadily, and I think that will increase the interest of investors who want to leverage risk capital, which means IPOs. There could actually be an IPO market opening up.’ Come back again,” she said.
Friedman added that about 85 companies seeking to go public have applied to list on Nasdaq, with activity concentrated in the second quarter.
— Lucy Handley
59 minutes ago
IMF expects interest rates to fall in second half of this year
International Monetary Fund (IMF) First Deputy Managing Director Gita Gopinath spoke to CNBC at the ECB Forum in Portugal.
Bloomberg | Bloomberg | Getty Images
Speaking on CNBC’s “Reality of High Interest Rates” panel at Davos, IMF First Deputy Managing Director Gita Gopinath said it was “premature” to conclude that central banks would “aggressively” cut interest rates this year. Ta.
Although inflation is falling, labor markets in the U.S. and Europe are tight and “the job is not done,” he added. The IMF expects interest rates to fall in the second half of this year.
Gopinath said he expected interest rates to rise over the next three to four years compared to the period after the 2008 global financial crisis.
— Lucy Handley
1 hour ago
ECB board member de Galleau: We are not calendar-driven, we are data-driven
François Villeroy de Galhau, Governor of the Banque de France.
Bloomberg | Bloomberg | Getty Images
Bank of France Governor François Villeroy de Galhau stressed that he could not say when the European Central Bank would cut interest rates this year.
“Why don’t I say anything about the season? I said it should be this year unless there’s a big surprise. But… we’re not calendar-driven, we’re data-driven.” said in a panel discussion moderated by CNBC. Event at the World Economic Forum in Davos, Switzerland.
As for the trajectory of inflation, “it’s too early to declare victory…the job is not done yet. That said, interest rate tightening has been fairly successful so far, and even at Davos a year ago we “It’s been more successful than I expected,” he added.
“What we’re seeing on both sides of the Atlantic is kind of a soft landing so far.”
— Jenny Reid
1 hour ago
European Central Bank’s Centeno emphasizes progress in inflation in the euro area
Portugal’s central bank president Mario Centeno said on Tuesday that inflation in the euro zone was on a “very good” trajectory, despite a more hawkish tone in recent days from his peers on the European Central Bank’s board. He said he was on board.
“We still rely on data and that’s how we frame our decisions…One of the ECB’s biggest successes in recent times was being able to peg medium-term inflation expectations at 2%. “This is because the ECB is trusted and we must continue to do so,” Centeno said.
Please read the full text.
— jenny reed
1 hour ago
World leaders talk about the “reality of high interest rates”
Join us on CNBC at 7:15am UK time. Anchor Steve Sedgwick moderates a panel discussion on “The Reality of High Interest Rates,” featuring guests Nasdaq CEO Adena Friedman, International Monetary Fund’s first deputy managing director Gita Gopinath, and Chuck. Masu. Robbins, Cisco’s chairman and CEO, and François Villeroy de Galhau, president of the Banque de France and director of the European Central Bank (ECB).
The European Central Bank may delay the start of interest rate cuts in 2024, upending market expectations, board member Robert Holzmann said on Monday. He said he would be “very disappointed.”
The panel will discuss whether high interest rates will become the “new normal” and what that means for the market.
The headline inflation rate in the euro area was 2.9% in December, up from 2.4% the previous month. The ECB has set an inflation target of 2%.
— lucy handley
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