The main headlines that the global financial media paid attention to last night and this morning include:

Société Générale predicts that if the Federal Reserve does not cut interest rates in 2024, the euro will fall below $1.05

Olivier Korber, strategist at Societe Generale Bank (Societe Generale), said that Societe Generale (Societe Generale) researchers' basic prediction that the Federal Reserve will not cut interest rates in 2024 may cause the euro to fall below $1.05.

The unexpected rise in US inflation prompted our American economists to no longer expect the Federal Reserve to cut interest rates in 2024,” Korber wrote in a note to clients.

“Although the market has absorbed the expectation that the Fed will start easing its policy later compared to the ECB, there is still room for the Fed to cut interest rates, which indicates that EUR/USD still has room for further decline. ”

Federal Reserve Vice Chairman: Keeping interest rates unchanged will help reduce the level of inflation

Federal Reserve Vice Chairman Philip Jefferson said that with interest rates at current levels, inflation is expected to continue to slow, but if inflationary pressure continues, it is necessary for interest rates to remain high.

Jefferson said on Tuesday that although considerable progress has been made in reducing inflation, the task of the Federal Reserve to keep the inflation rate reaching the 2% target is “unfinished.”　

These remarks further strengthened the market's view that Fed policymakers are in no hurry to cut interest rates. Jefferson did not directly mention the timing of interest rate cuts or the prospects for cutting interest rates this year in his speech.

Surge in green electricity causes European nuclear power plants to shut down

Efforts to promote renewable energy are putting pressure on Europe's nuclear energy industry. While the urgency of producing fossil-free electricity is unprecedented, a surge in renewable energy and a sharp drop in electricity prices are undermining the operating foundation of nuclear power plants. Nuclear power is still the cornerstone of parts of mainland Europe's power grid.

There are signs that nuclear power plants will face a difficult period. Demand has not fully recovered since the energy crisis, and the region's wind and solar power generation has repeatedly reached new highs, encroaching on the share of nuclear and coal-fired power plants delivered to the national grid.

ESG Daily: UBS Group Says According to Switzerland's Plan, UBS Group Will Face $20 Billion in Losses

According to reforms proposed after Credit Suisse went out of business, UBS Group is facing a request to increase regulatory capital, which could reach around $20 billion.

Swiss Finance Minister Karin Keller-Sutter's goal is for systemically important banks to provide full capital support to their overseas subsidiaries.

Analysts estimate that for UBS, these changes could result in capital losses of between $15 billion and $25 billion.

A UBS spokesperson declined to comment.

Microsoft's latest bet on artificial intelligence turns its eyes to the Middle East

Microsoft will invest $1.5 billion in Abu Dhabi's artificial intelligence group G42. The two companies will collaborate on artificial intelligence and digital infrastructure, marking the first expansion of Microsoft's artificial intelligence empire into the Middle East.

The move is likely to be subject to strict scrutiny by regulators. G42 and Microsoft said they are committed to complying with US and international trade rules as part of the partnership.

Lagarde: Unless there is a major accident, interest rates will be cut soon

ECB President Lagarde said on Tuesday that the ECB will still cut interest rates in the short term, provided there are no major accidents. She said, “We only need to build more confidence in the anti-inflation process. If it develops as expected, and if development is not significantly impacted, we will move to a point where we must ease restrictive monetary policies.” “If there are no new shocks, it is time to ease restrictive monetary policies in a reasonable short period of time.”

When asked about the central bank's confidence that inflation will continue to fall after commodity prices have risen, particularly as oil prices soar amid geopolitical tension, Lagarde replied, “All commodity prices have an impact, and we must pay close attention to these changes.”