London markets muted ahead of US Federal Reserve rate decision July 25, 2022 London markets were mixed today as traders brace for another potential rate bazooka from the US Federal Reserve on Wednesday. The capital’s premier FTSE 100 index edged 0.41 per cent higher to 7,306.30 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, dropped 0.11 per [...]
US Federal Reserve to back up monster rate hike with another 75 basis point move July 25, 2022 The US Federal Reserve will back up its monster rate rise last month with another big 75 basis point hike this week as it chases down scorching inflation across the pond. That’s according to Wall Street analysts, who think Fed chair Jerome Powell and the rest of the federal open market committee (FOMC) will need [...]
Slump in deal making nearly halves Goldman Sachs profits July 18, 2022 A weaker deal making environment has nearly halved Wall Street investment bank Goldman Sachs’s profits. Net earnings dropped to $2.8bn (£2.4bn) in the three months to June, down 48 per cent from $5.3bn (£4.5bn) in the same period last year, Goldman said today. Investment banking revenues collapsed nearly 50 per cent to $1.8bn (£1.5bn) driven [...]
Recession fears loom over FTSE 100 as IMF warns economic outlook has ‘darkened’ July 14, 2022 London markets flopped today driven by investors fretting over the global economic downturn. The capital’s premier FTSE 100 index dropped 1.63 per cent to 7,039.81 points, while the mid-cap domestically-focused FTSE 250 index, which is more aligned with the health of the UK economy, tumbled 1.23 per cent to 18,480.66 points. Recession fears have led [...]
Return of loan loss reserves crimp JP Morgan profits July 14, 2022 Swelling reserves set aside to deal with a historic inflation surge raising the risk of US consumers defaulting on their debts has eroded investment banking giant JP Morgan’s profits, the firm announced today. Net income dropped 28 per cent in the second quarter compared to the same period last year, driven by a $428m (£360m) [...]
S&P 500 to shed fifth of value if US tips into recession, Goldman Sachs warn July 10, 2022 Wall Street will suffer heavy losses if the US economy tips into recession, according to investment bank Goldman Sachs. The S&P 500 index, a broad measure of corporate America, will shed 19 per cent and close 2022 at 3,150 points if the American economy suffers a tough recession, Goldman said in a note to clients [...]
World is staring down the barrel of new high inflation era, BIS warns June 26, 2022 The world risks being flung into a new era of persistently high inflation that will tip the global economy into a drawn out recession, one of the world’s top economic institutions has warned. Rampant price rises triggered by a series of economic shocks that have no “historical parallels” could become the norm, the Bank for [...]
US Fed chief Powell warns higher rates may tip economy into recession June 22, 2022 The chief of the US Federal Reserve has warned it may hike interest rates to a level that tips the economy into a recession. “It’s certainly a possibility” that a rapid tightening of monetary policy will force the US economy into reverse, Fed chair Jerome Powell said today in response to a grilling by American [...]
Recession concerns growing rapidly as central banks struggle to put inflation genie back in its bottle June 20, 2022 Despite attempts at a modest rebound on Friday, European markets still finished lower for the second week in succession, posting their lowest weekly closes since March. US markets also finished the week similarly mixed, but also sharply lower, with the S&P500 posting its worst week since March 2020, ahead of the Juneteenth long weekend. “As [...]
US Federal Reserve official warns investors to brace for more steep rate rises June 19, 2022 The US Federal Reserve will push through more steep rate hikes if inflation shows little sign of letting up, a top stateside central banker said over the weekend. Fed governor Christopher Waller said at a Society for Computational Economics conference in Dallas that “if the data comes in as I expect, I will support a [...]