US Federal Reserve will slash interest rates in March 2024, Morgan Stanley bets July 17, 2023 The US Federal Reserve will in the early part of next year slash interest rates for the first time since the onset of the Covid-19 crisis, Wall Street analysts are betting, Researchers at Morgan Stanley have said they expect the federal open market committee (FOMC) to bring rates down in the first quarter of 2024, [...]
US inflation slumps to lowest level in more than two years and is now well below UK July 12, 2023 Inflation in the US has slumped to its lowest level in more than two years and is now far below the UK’s rate, official figures out today reveal. American inflation fell to three per cent in June on an annual basis, down from four per cent in the previous month, according to the US Labour [...]
FTSE 100 close: Interest rate jitters drag down Persimmon and Taylor Wimpey June 29, 2023 London’s FTSE 100 slipped today as investors fretted over central banks keeping interest rates higher for longer. The capital’s premier index dropped 0.38 per cent to 7,471.68 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, fell 0.77 per cent to 18,270.73 points. Losses in [...]
Big US banks pass Fed stress tests months after SVB collapse in sign they’d ‘weather a severe recession’ June 29, 2023 The largest banks in the US sailed through the Federal Reserve’s annual stress tests, suggesting they would survive a sharp economic downturn. The Fed said the results demonstrate that large banks are “well positioned to weather a severe recession and continue to lend to households and businesses even during a severe recession.” Despite projected losses [...]
FTSE 100 close: Tumbling pound boosts London index as Ocado slides June 28, 2023 London’s FTSE 100 sprang higher today, aided by the pound clocking a dreadful day. The capital’s premier index jumped 0.52 per cent to 7,500.50 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, leapt 1.98 per cent to 18,412.81 points. Early advances in the City [...]
Andrew Bailey, Christine Lagarde and Jerome Powell warn inflation fight not yet done June 28, 2023 Andrew Bailey and the cream of the global central banking crop today warned they may need to keep heaping pressure on the global economy before they can declare victory over high inflation. Speaking at the European Central Bank’s (ECB) annual monetary policy conference in Sintra, Portugal, the chiefs of the Bank of England, Federal Reserve [...]
Stock and bond prices fall for first time since 2008 financial crisis but only to $255 TRILLION June 27, 2023 The value of stocks, bonds and other financial assets across the world have fallen for the first time since the 2008 financial crisis as central banks globally have jacked up interest rates aggressively to tame stubbornly high inflation. Global financial wealth slimmed four per cent last year to $255 trillion, the first drop in 15 [...]
FTSE 100 close: London index reverses losses as Bunzl struggles June 15, 2023 London’s FTSE 100 was dragged lower today by investors piling out of outsourcer Bunzl despite the firm this morning raising its revenue forecast before reversing losses in the afternoon session. The capital’s premier index jumped 0.34 per cent to 7,628.27 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health [...]
Federal Reserve pauses interest rate rise campaign as US inflation subsides June 14, 2023 The US Federal Reserve today held off on firing interest rates higher for the first time in over a year, electing to wait and see what impact prior increases have had on the world’s largest economy before straining households and businesses further. Chair Jerome Powell and the rest of the Federal Open Market Committee (FOMC) [...]
Pound hits highest level against US dollar in over a year as traders bet Bank of England will outmuscle Fed June 14, 2023 Pound sterling today climbed to its highest level against the US dollar in over a year, driven upwards by investors betting that the Bank of England will surpass the Federal Reserve in its interest rate rise cycle to bring down inflation. Britain’s currency jumped around 0.7 per cent today to nearly $1.27, taking it to [...]