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<\/p>\nWatch: Munich Re CFO interview<\/p>\n
Munich Re<\/a> shares have tumbled toward the bottom of the Stoxx 600 this morning, after the reinsurer cut its revenue guidance for the year.<\/p>\n The company’s chief financial officer, Christoph Jurecka, told CNBC’s “Squawk Box Europe<\/a>” that the tariff environment is not affecting its commitment to the U.S., and warned of an upward trend in large losses from natural disasters.\u00a0<\/p>\n \u2014 David Martin<\/p>\n Rates path still downward, BoE\u2019s Bailey says Bank of England Governor Andrew Bailey told CNBC on Thursday that the path for U.K. interest rates is still downward, but policymakers are facing a more “finely balanced situation” as inflation, a weaker labor market and U.S. tariffs create uncertainty.<\/p>\n The Bank of England’s Monetary Policy Committee cut its key interest rate<\/a> by 25 basis points on Thursday, reducing rates to 4%.<\/p>\n The MPC was divided in its vote, with the cut being passed on a 5 to 4 split between members.<\/p>\n In an interview with CNBC’s Ritika Gupta, Bailey said the division between committee members reflected “what a finely balanced situation we’re currently in,” but insisted he still believed “the path will be further downwards.”<\/p>\n “But I think we’ve got more uncertainty about the precise \u2026 course of that path,” he said. “So I think there is more uncertainty about exactly what we’ll be doing at the meetings immediately to come.”<\/p>\n Bailey said there are lingering risks around inflation, which hit a hotter-than-expected 3.6% in June<\/a>, and noted that the U.K. labor market was showing signs of weakening.<\/p>\n He added that the MPC was monitoring new U.S. tariffs being imposed by the Trump administration, although he stressed that domestic considerations were having a bigger impact on its decisions right now.<\/p>\n “The world is still in an uncertain place, and we have to factor that in, and I would also say that \u2026 yes, there’s a whole series of sort of settlements on tariffs going on, but of course, it is leaving overall tariff levels and [the] overall impact on trade at a larger level than it has been for a very long time,” he told CNBC.<\/p>\n “I think we have to bear that in mind as well \u2026 we spend a lot of time looking at the world, because the U.K. is a very open economy.”<\/p>\n \u2014 Chloe Taylor<\/p>\n European stocks open higher; Munich Re down 7%<\/p>\n We’re around 30 minutes into Friday’s trading session, and stocks are broadly marginally higher.<\/p>\n The pan-European Stoxx 600<\/a> was last seen trading around 0.1% higher. London’s FTSE 100<\/a> and the French CAC 40<\/a> are up 0.1% and 0.3%, respectively, while Germany’s DAX<\/a> is down by 0.2%.<\/p>\n Shares of German reinsurer Munich Re<\/a> are down 7.3% after the company trimmed its insurance revenue forecast, citing currency headwinds and business developments.<\/p>\n Stock Chart IconStock chart icon Munich Re share price<\/p>\n Markets expect Bank of England to hold rates steady<\/p>\n General view of the Bank of England and the Bank of England’s Prudential Regulation Authority (PRA) in March 2025.\u00a0<\/p>\n Sopa Images | Lightrocket | Getty Images<\/p>\n Markets are now pricing in a more-than 90% probability the Bank of England keeps rates where they are at its next meeting.<\/p>\n Some analysts disagree. Capital Economics says it expects the central bank to keep cutting at every meeting until it reaches a 3% base rate next year because it disagrees with its inflation forecasts, and says “it’s only a matter of time” before labor market weakness leads to wage growth and inflation coming back down toward the Bank’s target.<\/p>\n But the firm says it’s “less confident that the next cut will come in November after the Bank’s change in tone.”<\/p>\n Economists at Santander UK are firmly in the opposite camp, with the lender citing “ugly inflation optics” and Chancellor Rachel Reeves’ upcoming budget as reasons it doesn’t see another cut before the end of the year.<\/p>\n Meanwhile, Barclays has a November cut as its base case, flagging the risk of Reeves’ potential budget measures dragging on GDP growth and pulling inflation lower.<\/p>\n \u2014 Jordan Butt<\/p>\n Munich Re adjusts earnings forecast<\/p>\n Shares of Munich Re are lower in pre-market trade, after the reinsurer lowered its insurance revenue forecast for 2025. The group cited foreign exchange and business developments,\u00a0but second-quarter net profit still came in above expectations.\u00a0<\/p>\n \u2014 Michael Considine<\/p>\n The UK government won\u2019t admit it, but tax rises are coming<\/p>\n Britain’s Prime Minister Keir Starmer and Chancellor of the Exchequer Rachel Reeves on June 23, 2025.<\/p>\n Jacob King | Pool | Afp | Getty Images<\/p>\n The U.K. government is loathe to admit it, but economists say it’s highly likely that the Treasury will have to hike taxes in the fall if it is to bung a black hole in the public finances that it has effectively created for itself.<\/p>\n The National Institute of Economic and Social Research (NIESR) is the latest economic think tank to warn that taxes would have to rise later this year if British Chancellor Rachel Reeves is to meet her self-imposed “fiscal rules.”<\/p>\n Read more from CNBC’s Holly Ellyatt here.<\/a> <\/p>\n What\u2019s been happening in global markets<\/p>\n A street sign is seen near the New York Stock Exchange (NYSE) in New York City, New York, U.S., August 7, 2025. <\/p>\n Eduardo Munoz | Reuters<\/p>\n Opening calls<\/p>\n An aerial view of central London. <\/p>\n Henry Nicholls | Afp | Getty Images<\/p>\n Hello from London.<\/p>\n Regional indexes look set for a muted open this morning, with futures tied to the FTSE 100<\/a> and Germany’s DAX<\/a> trading flat, while those tied to the French CAC 40<\/a> were last seen trading 0.2% higher.<\/p>\n![\"Watch](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/08\/108183044-Andrew_Bailey.PNG\")
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