Why are asset managers turning away from the US? Business Asset managers are increasingly choosing to diversify their portfolios away from US stocks, despite Wall Street’s pronounced rally, as fears over being overexposed to secular markets grows. US markets saw a significant bounce back in recent months, shaking off the lows that followed Trump’s tariff announcement in April, with investors not yet losing their appetite [...]
Dovish Powell hints at more rate cuts in US Economics The Federal Reserve is likely to cut US interest rates at its next decision in September, Jay Powell has said, despite the country’s softening labour market being in conflict with upward pressure in prices from Donald Trump’s tariffs. In an eagerly anticipated address at the Jackson Hole symposium, the Fed chair highlighted slower economic growth, [...]
Trump’s renewed Fed attacks help pound climb to three-year high Economics The pound has stormed to its highest level against the dollar in over three years after President Donald Trump launched a new tirade of attacks on the Federal Reserve. Sterling rose over 0.6 per cent to near $1.3725 as Trump indicated he was lining up successors for the Fed’s chair Jerome Powell, despite Powell’s term [...]
FTSE 100 banks Lloyds and Natwest set to profit despite lower interest rates May 13, 2025 Amidst a backdrop of waning interest rates, FTSE 100 banking giants such as Lloyds and Natwest look set to continue to profit, according to analysts. Lenders’ takings from net interest income (NII) remained steady in the first quarter, even after the Bank of England chopped interest rates four times to 4.5 per cent. Since then, [...]
Interest rates may stay higher for longer says Bank of England May 12, 2025 Several members on the Bank of England’s Monetary Policy Committee have warned that sticky inflation could stall further interest rate cuts this year in marked contrast to current analyst expectations. Bank policymakers voted to lower interest rates to 4.25 per cent last week. Two MPC members voted for a 50 basis point cut, and another couple [...]
Fed holds interest rates despite pressure from Donald Trump January 29, 2025 The pause comes after three consecutive interest rate cuts and means the federal funds rate stands in a range of 4.25-4.5 per cent.
US inflation rises slightly but core prices weaker than expected January 15, 2025 US inflation rose at a slightly weaker pace than expected last month, but it is unlikely to be enough to prompt the Federal Reserve into cutting interest rates in the near future. The latest figures from the Bureau of Labor Statistics showed that the headline rate picked up to 2.9 per cent in December, up [...]
Pound sterling suffers as traders pare bets on Fed rate cuts January 13, 2025 The sell-off comes after a bruising week for UK assets last week, with sterling falling over three per cent and gilt yields picking up to the highest levels in decades.
Fed cuts rates by 25 basis points just days after Donald Trump’s victory November 7, 2024 The decision, the second in the cutting cycle, was widely anticipated by markets and means the federal funds rate stands in a range of 4.50-4.75 per cent.
US and European interest rate cuts hang in the balance ahead of crunch week October 27, 2024 Key economic figures in the US and Europe are set to give investors clues on how much further both regions' central banks could go in cutting interest rates this year.