Federal Reserve to press on with third 75 basis point hike after inflation overshoot September 13, 2022 The US Federal Reserve is set to hike the world’s most important interest rate by another historic amount to tame sticky inflation, Wall Street warned today. A hotter than expected inflation reading published today prompted a wave of economists to bet on the Fed lifting US borrowing costs 75 basis points for the third time [...]
Walmart maintains outlook for next year as profits tighten against inflationary pressures August 16, 2022 US retail giant Walmart’s profits were eaten into by inflation as it maintains its outlook for the next financial year despite revenue being up 8.4 per cent. The supermarket chain took in $152.9bn in Q2 but said this strong growth was “partially driven by inflation”, which tempered its outlook, and its profits. Its comparative sales [...]
What the new interest rates mean for the City: ‘The UK fares worse than the EU and US’ August 13, 2022 The Bank of England’s decision to further raise interest rates from 1.25 per cent to 1.75 per cent and its two-year predictions means bad news for investors and UK residents alike. And the pain is far from over. A top City analyst expects this to further rise to 2.25 per cent in September. Other than [...]
A technical recession: How bad will it be? August 7, 2022 It is no surprise that US GDP growth is declining given the slowdown in consumer spending and domestic production recently. However, markets seem fraught with headline risk with the term ‘technical recession’ floating around. Analysts have pointed out the looming risk of a recession given the central bank’s aggressive tightening cycle while Fed chair Powell [...]
Crypto prices surge after Fed hikes interest rates July 28, 2022 Cryptocurrencies prices climbed after the US Federal Reserve raised interest rates by 75 basis points for the consecutive second month to tackle high inflation. Bitcoin jumped 7.5 per cent to trade at $22,965.5 today while Ether soared 11.14 per cent to trade at $1,624.9 after being pummelled by the crypto crash and investor uncertainty. The [...]
Powell invokes Volcker spirit with second successive 75 point hike July 27, 2022 The US Federal Reserve today doubled down on its efforts to chase down the biggest inflation shock in recent memory by hiking rates 75 basis points for the second time in a row. Chair Jerome Powell and the rest of the federal open market committee backed another big rise to cool America’s overheating jobs market [...]
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 [...]
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 [...]
Interest rate hikes could trigger chain of bankruptcies in shadow banks June 27, 2022 Interest rate hikes from central banks across the globe could trigger a chain of bankruptcies in the global “shadow banking” industry, the Bank for International Settlements (BIS) has warned. In an interview with The Times, Claudio Borio, head of the BIS’ monetary and economic department, said “shadow banks” – including hedge funds, pension funds, and [...]
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 [...]