Global monetary policy trends
Track emerging trends in global monetary policy and understand their impact on markets worldwide.
Global Monetary Policy Trends
Fed Cuts Interest Rates for First Time in Four Years
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Fed officials kicked off rate cuts with a half-point reduction, confident that inflation is cooling and eager to keep the job market strong.
linkCopy linkshare_windowsShareFed’s Interest Rate Cut Would Cap a Winning Streak for Harris and Biden on Prices
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Improved data on borrowing costs and price growth has buoyed consumers, but it might be coming too late to significantly affect the presidential race.
linkCopy linkshare_windowsShareHow to Read the Fed’s ‘Dot Plot’ Like a Pro
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The Federal Reserve is expected to cut rates on Wednesday. Wall Street is focused on how much, and on what comes next.
linkCopy linkshare_windowsShareCentral Banks Around the World Are Cutting Rates
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Inflation has fallen in most developed nations, and central bank officials are now trying to steer their economies toward a so-called soft landing.
linkCopy linkshare_windowsShareWhy Uncertainty Still Hangs Over the Fed’s Rate Decision
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Investors, economists and politicians are at odds over whether the central bank should cut interest rates by a quarter-point, or more.
linkCopy linkshare_windowsShareWall Street Expects Half-Point Fed Rate Cut
The S&P 500 is hovering just below record territory, driven by a revived rally as bets have grown that the Federal Reserve will cut interest rates by half a percentage point.
linkCopy linkshare_windowsShareFed's Big Rate Cut, BoE Decision Day, More
Source: Bloomberg, 5:56
linkCopy linkshare_windowsShareBOE Likely to Keep Interest Rates Unchanged
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The Bank of England is likely to decide against cutting interest rates on Thursday. The decision from the central bank comes a day after the Federal Reserve lowered its benchmark interest rate by a half percentage point. Bloomberg's Lizzy Burden discusses what to expect. (Source: Bloomberg)
linkCopy linkshare_windowsShareFed's Half-Point Cut, Israel's ‘New Phase’, More
Source: Bloomberg, 6:27
linkCopy linkshare_windowsShareFed's Half-Point Cut, Israel's ‘New Phase’, More
Source: Bloomberg, 7:01
linkCopy linkshare_windowsShareBloomberg Daybreak Europe: The Fed's Big Cut (Podcast)
Source: Bloomberg, 20:09
linkCopy linkshare_windowsShareFed Opts for Half-Point Cut, Israel's ‘New Phase’, More
Source: Bloomberg, 6:22
linkCopy linkshare_windowsShareOutsized Cut: The Bloomberg Open, Europe Edition
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Good morning. Stocks rally after the Fed makes an outsized rate cut. The BOE is seen standing pat today. And a Bloomberg survey sees equities continuing to gain this year.
linkCopy linkshare_windowsShareLebanon Explosions, Asian Stocks Rally After Fed Rate Cut, More
Source: Bloomberg, 6:02
linkCopy linkshare_windowsShareFed Opts for Rate Cut, Second Wave of Blasts Hits Lebanon, More
Source: Bloomberg, 5:01
linkCopy linkshare_windowsShareFed Goes 50, Threats Of Retaliation In Mideast
Source: Bloomberg, 4:44
linkCopy linkshare_windowsShareBloomberg Daybreak Asia: Fed Opts for Outsized Cut (Podcast)
Source: Bloomberg, 25:40
linkCopy linkshare_windowsShareFed Cut No New Trend, More Devices Explode Lebanon
Source: Bloomberg, 4:58
linkCopy linkshare_windowsShareFed Cut New Phase?, More Lebanon Explosions
Source: Bloomberg, 4:44
linkCopy linkshare_windowsShareFed cuts interest rates by half a point, marking first trim since 2020
A more aggressive interest rate cut would suggest deeper worries that the job market is buckling under the Fed’s continued fight against inflation.
linkCopy linkshare_windowsShareWhat the Fed’s rate cut means for consumers, businesses and investors
The Fed’s first cut in four years will affect hiring, inflation, the housing market, stocks and borrowing costs.
linkCopy linkshare_windowsShareFed cuts interest rates by a half-point, more expected this year
The Federal Reserve is slated to cut interest rates in its meeting Wednesday. Follow along for live updates on the Fed interest rate decision.
linkCopy linkshare_windowsShareThe major U.S. stock indexes gave up early gains Wednesday after the Fed announced its half-point...
linkCopy linkshare_windowsShareFederal Reserve rate cut may boost Kamala Harris in campaign homestretch
Kamala Harris could benefit from the Federal Reserve's interest rate cut if it improves voters’ perceptions of the economy.
linkCopy linkshare_windowsShareChina expected to trim main policy rate and lending benchmarks: Reuters poll
China is widely expected to trim its main policy and benchmark lending rates on Friday, a Reuters poll showed, after the Federal Reserve's outsized interest rate cut removed some of the risks around sharp yuan declines.
linkCopy linkshare_windowsShareChina to ramp up policy steps to revive economy but no 'bazooka' stimulus seen
Chinese policymakers will likely step up measures to at least help the economy meet an increasingly challenging growth target for 2024, analysts and policy advisers say, with a sharper focus on boosting demand to fight persistent deflationary pressures.
linkCopy linkshare_windowsShareFed outsized rate cut draws muted reaction, but calm may not last
Investors who anticipated furious market swings following the U.S. Federal Reserve's bumper rate cut saw more of a muted reaction. That may be fleeting.
linkCopy linkshare_windowsShareAfter jumbo Fed rate cut, market hopes ride on US soft landing
Has the Fed kicked off rate cuts in time to keep the economy from slowing too fast?
linkCopy linkshare_windowsShareMorning Bid: UK inflation to keep BoE on cautious path
A look at the day ahead in European and global markets from Rae Wee
linkCopy linkshare_windowsShareDollar and stocks gain as Fed charts soft landing
The dollar bounced, long-dated bond yields were up and Asian stocks surged after the Federal Reserve announced a 50-basis-point rate cut and flagged a measured easing cycle ahead, leaving open a path to a soft landing for the U.S. economy.
linkCopy linkshare_windowsShareUS borrowers get quick relief as Fed cuts rates
U.S. consumers got an immediate reprieve on borrowing costs from banks after the Federal Reserve cut interest rates on Wednesday for the first time in more than four years.
linkCopy linkshare_windowsShareRupee rises to six-week high after Fed rate cut, importer dollar bids pick up
The Indian rupee rose to its strongest level in over six weeks on Thursday after the Federal Reserve kicked off policy easing with a 50-basis-point rate cut, but traders expect importer dollar bids to limit the currency's immediate gains.
linkCopy linkshare_windowsShareFed sees higher 'terminal' rate, reached sooner: McGeever
Beyond the immediate headlines generated by the Fed's 50 basis point interest rate cut, it is policymakers' revised outlook for the fed funds rate's eventual destination, and how soon it takes to get there, that matters more.
linkCopy linkshare_windowsShareRupee faces challenge as US dollar surges after Fed's large rate cut
The Indian rupee's recovery on Thursday will have to contend with a broadly higher U.S. dollar despite the Federal Reserve delivering a 50-basis-point rate cut.
linkCopy linkshare_windowsShareFed rate cut lifts Indian shares to record high
Indian shares climbed to a record high on Thursday, led by information technology stocks after the U.S. Federal Reserve kicked off its monetary easing cycle with a large half percentage point rate reduction.
linkCopy linkshare_windowsShareOil prices little changed as US rate cut fails to boost sentiment
Oil prices were little changed on Thursday as lingering concerns over demand capped the potential benefits of a larger-than-expected Federal Reserve interest rate cut.
linkCopy linkshare_windowsShareDollar claws back losses after Fed goes big on rate cut
The U.S. dollar rose broadly on Thursday, reversing a brief tumble in the immediate aftermath of the Federal Reserve's outsized interest rate cut that had been largely priced in by markets.
linkCopy linkshare_windowsShareBank of England set to hold rates with bond sales in spotlight
The Bank of England looks set to keep interest rates on hold on Thursday as it awaits signs that inflation risks are quashed, putting the focus instead on a decision about bond sales that could feed into Finance Minister Rachel Reeves' first budget.
linkCopy linkshare_windowsShareUS rate futures imply more easing this year after Fed's 50-basis-point cut
Futures on the federal funds rate, which measures the cost of unsecured overnight loans between banks, priced on Wednesday about 74 basis points of additional interest rate cuts by the Federal Reserve by the end of this year, LSEG calculations showed.
linkCopy linkshare_windowsShareUS 30-year mortgage rate falls to two-year low of 6.15%
The interest rate for the most popular U.S. home loan fell last week to its lowest level in two years, on anticipation the Federal Reserve will start cutting interest rates on Wednesday, potentially by as much as a half of a percentage point.
linkCopy linkshare_windowsShareStocks Slip After Fed Cuts Rates
The Dow and S&P 500 finished lower after the Federal Reserve voted to cut interest rates by half a percentage point.
linkCopy linkshare_windowsShareFed’s Rate Pivot Seen Driving Outsized Gain in Asian Assets
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The Federal Reserve’s shift to interest-rate cuts bodes well for Asian assets as many are underowned, and have better earnings prospects and more room to benefit from easing than their global peers.
linkCopy linkshare_windowsShareStocks Rally Gathers Pace After Fed’s Big Rate Cut: Markets Wrap
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Stocks rallied across the globe on expectations the Federal Reserve’s half-percentage-point interest-rate cut will protect the world’s largest economy from a downturn.
linkCopy linkshare_windowsShareGlobal Funds Cool on China Bank Debt With Inflows Shrinking
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Global funds’ purchases of Chinese bank notes suddenly slowed in August as a strengthening yuan and a likely pullback in currency intervention made a popular swap-based trade less appealing.
linkCopy linkshare_windowsShareNorway Keeps Rate Steady With Signal for First Cut Only in 2025
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Norway’s central bank kept borrowing costs unchanged and signaled no intention to cut them before next year as it contends with the inflation risks posed by a weak krone.
linkCopy linkshare_windowsShareIsrael's 'New Phase’ in War After Lebanon Blast & BOE Rates Preview | Daybreak: Europe 09/19/2024
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Bloomberg Daybreak Europe is your essential morning viewing to stay ahead. Live from London, we set the agenda for your day, catching you up with overnight markets news from the US and Asia. And we'll tell you what matters for investors in Europe, giving you insight before trading begins. Today's guests: Janet Henry, HSBC Global Chief Economist, and Jackie Bowie, Chatham Financial Managing Partner. (Source: Bloomberg)
linkCopy linkshare_windowsShareAsian Currencies Hit 14-Month High as Fed Cuts Interest Rates
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Asian currencies advanced to the strongest level in more than a year after the Federal Reserve kicked off policy easing and signaled further interest-rate reductions this year.
linkCopy linkshare_windowsShareWall Street’s New Era Off to Rocky Start as Fed Sows Doubts
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Jerome Powell delivered exactly what traders up and down Wall Street had long hoped for: A big interest-rate cut that would justify this year’s steep rally in stocks and bonds as the era of tight monetary policy finally began to reverse.
linkCopy linkshare_windowsShareHSBC Cuts Key Hong Kong Rate for the First Time Since 2019
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HSBC Holdings Plc cut its key benchmark rate in Hong Kong for the first time since 2019, a move likely to hit margins while bringing relief to homeowners and borrowers in the Asian financial hub.
linkCopy linkshare_windowsShareRand Gains With SARB Poised for First Rate Cut in Four Years
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The rand gained Thursday morning ahead of a South African Reserve Bank interest rate decision, where the central bank is expected to deliver its first cut since July 2020.
linkCopy linkshare_windowsShareECB May Have to Accelerate Rate Cuts, Centeno Tells Politico
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The European Central Bank may have to quicken the pace that it lowers interest rates to avoid inflation falling short of forecasts, Governing Council member Mario Centeno told Politico.
linkCopy linkshare_windowsShareCopper Notches Two-Month High On Powell’s Half-Point Rate Cut
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Copper climbed to its highest level since mid-July as metals rallied on the Federal Reserve’s bid to defend US growth and the labor market with a half-point rate-cut.
linkCopy linkshare_windowsShareFed Cut May Spur Nigeria, Angola Eurobond Sales, BancTrust Says
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The Federal Reserve’s half-percentage-point interest-rate cut may pave the way for new debt issuance by African nations including Nigeria and Angola, according to BancTrust & Co.
linkCopy linkshare_windowsShareOil Gains as Traders Track Risk-On Tone and Middle East Tension
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Oil advanced as a risk-on tone swept across wider financial markets following the steep interest-rate cut by the Federal Reserve, while traders monitored escalating tensions in the Middle East.
linkCopy linkshare_windowsShareJapanese Stocks Rise as Yen Weakens While Investors Await BOJ
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Japanese stocks rose as the yen weakened after Federal Reserve Chair Jerome Powell cautioned against assuming large rate cuts will continue. Investors are awaiting the Bank of Japan’s decision Friday.
linkCopy linkshare_windowsShareBitcoin Climbs With US Equity Futures as Traders Digest Fed Cut
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Bitcoin hit a three-week high alongside a jump in US equity futures as an outsized Federal Reserve interest-rate cut rippled across markets.
linkCopy linkshare_windowsShareSouth Africa Seen Sticking to Modest Rate Cut Despite Fed Cut
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The South African Reserve Bank will likely lower interest rates by 25 basis points on Thursday, despite a larger-than-expected overnight move by the Federal Reserve as it turns the screws on inflation.
linkCopy linkshare_windowsShareEuropean Stocks Near Record Highs as Fed Cut Boosts Sentiment
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European stocks rose to trade within striking distance of their record highs, tracking a global rally across financial markets after the Federal Reserve announced a half-point interest-rate cut, a bigger move than many economists had forecast.
linkCopy linkshare_windowsShareSwiss Government Sees Sharp Drop in Inflation Rate Next Year
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Switzerland’s government slashed its inflation forecasts, a move in line with expectations that the central bank will cut interest rates again when officials meet next week.
linkCopy linkshare_windowsShareHong Kong Makes First Rate Cut Since 2020, Boosting Economy
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Hong Kong’s beleaguered real estate market is set for some relief after the city cut its base interest rate for the first time in four years, mirroring the Federal Reserve’s policy easing.
linkCopy linkshare_windowsShareTurkey Seen Awaiting More Evidence Before Starting to Cut Rates
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Turkey’s central bank will probably keep its main interest rate unchanged for a sixth straight month, as a lack of significant improvement in underlying inflation pushes the monetary authority to stick with a tighter bias.
linkCopy linkshare_windowsShareBrazil Central Bank Lifts Its Interest Rate and Signals More Hikes Ahead, Bucking Global Trend
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Brazil’s central bank raised its interest rate by a quarter-point and said more hikes are coming on resilient growth and inflation expectations, moving in the opposite direction of the Federal Reserve and regional peers.
linkCopy linkshare_windowsShareThe Fed (Finally) Lowered Interest Rates
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The Fed cut interest rates Wednesday by half a percentage point. On today’s Big Take podcast, what that means for the economy — and everyday consumers.
linkCopy linkshare_windowsShareTaiwan Set for Rate Decision as Worries Linger Over Home Prices
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Taiwan’s central bank is poised to announce the level for its benchmark interest rate and potentially unveil measures to rein in property prices.
linkCopy linkshare_windowsShareFed Opens Up Policy Space Around the World Without Feeding Panic
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The Federal Reserve’s bold start to cutting interest rates and its determination not to fall behind the curve in easing has reshaped the policy horizon for counterparts spanning the globe.
linkCopy linkshare_windowsShareFed Opts for Outsize Cut as Powell Seeks to Ensure Soft Landing
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Federal Reserve Chair Jerome Powell led his colleagues to an outsize interest-rate cut designed to preserve the strength of the US economy as risks to the labor market mount, marking an end to their single-minded focus on quashing inflation.
linkCopy linkshare_windowsShareBOE Set to Refrain From Second Straight Rate Cut: Decision Guide
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The Bank of England is likely to decide against cutting interest rates for a second straight meeting, maintaining a patient approach to reversing the most aggressive policy tightening in decades.
linkCopy linkshare_windowsShareCiti Trader Who Nailed Fed Rate-Cut Call Comes Away Disappointed
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Akshay Singal took little pleasure in getting the Federal Reserve’s rate-cut call right on Wednesday.
linkCopy linkshare_windowsShareFed Cuts as RBA Decision Nears
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Good morning, it’s Georgie here in Sydney with this morning’s top news for you. Aussie stock futures are pointing lower and gold hit a record. But first...Today’s must-reads:• The Fed cuts interest rates by 50 basis points• Aukus tech partnership talks• Housing crisis legislation gridlock
linkCopy linkshare_windowsShareFed Cuts Rates by Half Point in Decisive Bid to Defend Economy
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The Federal Reserve lowered its benchmark interest rate by a half percentage point Wednesday, an aggressive start to a policy shift aimed at bolstering the US labor market.
linkCopy linkshare_windowsShareFed Cut Is a Positive for Credit, Market Participants Say
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Credit derivative spreads narrowed on Wednesday after the Federal Reserve cut interest rates for the first time in over four years, lowering them by a half percentage point.
linkCopy linkshare_windowsShareFed’s Big Opening Move Is Rocket Fuel for Stocks
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Let’s admit it. We underestimated the US economy’s resilience. I mean, the big question on everyone’s minds as we entered Wednesday was whether the Federal Reserve would cut rates by a quarter or a half point to ward off a recession that’s been predicted for the better part of two years. (They went for the bigger cut). And yet, the Atlanta Fed’s GDPNow economic tracker shows GDP growing at almost 3% based on data so far this quarter. That’s on the back of the latest retail sales and industrial p
linkCopy linkshare_windowsShareGulf Central Banks Follow Fed Cut as Oil Prices Head to $70
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Gulf policymakers followed the US Federal Reserve’s move to cut interest rates for the first time since the Covid-19 pandemic, giving the energy-rich region some respite from the impact of lower oil prices.
linkCopy linkshare_windowsShareDo You Dot Plot? Understanding How the Fed Forecasts
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It’s almost certainly the most closely scrutinized scatter chart in financial markets. Every three months since January 2012, the Federal Reserve has sent analysts scurrying by updating its “dot plot,” which has become the de facto monetary policy forecast of the US central bank — whether the Fed wants it to be or not. It’s also an important source of clues to dissent within the Fed’s policy making committee, even if it can be as cryptic as it is crucial.
linkCopy linkshare_windowsShare
What Fed Interest Rate Cuts Means for Mortgages, Car Loans and More
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Here’s what lowered interest rates will mean for your car loans, credit cards, mortgages, savings and student loans.
linkCopy linkshare_windowsShareHow the Fed Cutting Interest Rates Affects Banks, Stocks and More
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For corporate America, this week’s expected interest rate cut carries risks along with rewards.
linkCopy linkshare_windowsShareSalesforce Taps Nvidia to Develop AI-Powered Avatars
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The San Francisco companies said the collaboration will develop autonomous-agent and interactive-avatar experiences.
linkCopy linkshare_windowsShareBlackRock, Global Infrastructure Partners, Microsoft, MGX Launch AI Partnership
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The partnership, called the Global AI Infrastructure Investment Partnership, will additionally build out energy infrastructure to create power sources for the facilities, the companies said.
linkCopy linkshare_windowsSharePimco CIO Dan Ivascyn on the Biggest Fed Decision in Years
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What are the risks in the short and long term?
linkCopy linkshare_windowsShareOdd Lots: Pimco’s Dan Ivascyn on Fed Day and Beyond (Podcast)
Source: Bloomberg, 46:46
linkCopy linkshare_windowsShareLooking Ahead to the BOE Rate Decision
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The Bank of England will announce its latest policy decision on Thursday. The central bank is expected to hold its key rate steady. Bloomberg’s Lizzy Burden breaks down what to expect.
linkCopy linkshare_windowsShareAttack: The Bloomberg Open, Europe Edition
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Good morning. Hezbollah says Israel was behind the pager blasts in Lebanon. Germany is sticking to a plan to sell its entire stake in Commerzbank. And the Fed is expected to cut rates today—but by how much?
linkCopy linkshare_windowsShareExploding Pagers Blamed On Israel, Record Fed Bets, More
Source: Bloomberg, 5:60
linkCopy linkshare_windowsShareNo Bail For Diddy, Fed Rate Cut Bets, More
Source: Bloomberg, 4:57
linkCopy linkshare_windowsShareDalio Sees Quarter-Point Fed Cut as ‘Right Thing’ for Creditors
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Bridgewater Associates founder Ray Dalio said the overall picture of the US economy probably warrants a smaller interest-rate cut by the Federal Reserve this week.
linkCopy linkshare_windowsShareBloomberg Daybreak Asia: APAC Markets Brace for Fed (Podcast)
Source: Bloomberg, 19:42
linkCopy linkshare_windowsShareFingers Pointed At Israel For Pager Attack, Big Bets On The Fed
Source: Bloomberg, 4:19
linkCopy linkshare_windowsShareTraders brace for least predictable Fed meeting in years
Traders in global financial markets are facing extraordinary uncertainty as they await the U.S. Federal Reserve's expected rate cut on Wednesday, setting up markets for a burst of volatility.
linkCopy linkshare_windowsShareWith Fed's rate cut at hand, debate swirls over how big a move
Whether policymakers opt for a half-percentage-point cut or smaller move remains up in the air.
linkCopy linkshare_windowsShareMorning Bid: Traders still guessing in final Fed countdown
A look at the day ahead in European and global markets from Kevin Buckland
linkCopy linkshare_windowsShareDollar drops vs yen, Asia stocks struggle as Fed looms
The dollar ceded some of its overnight gains on Wednesday while Asian stocks struggled as traders weighed the odds of a super-sized Federal Reserve interest rate cut later in the day.
linkCopy linkshare_windowsShareExplainer: How would Japan's ruling party race affect BOJ rate hike timing?
Japan's ruling party leadership race, which will determine who becomes next prime minister, could complicate the central bank's plan to normalise ultra-loose monetary policy.
linkCopy linkshare_windowsShareUS economy on solid ground as retail sales surprise on the upside
Retail sales increased 0.1% last month after an upwardly revised 1.1% surge in July.
linkCopy linkshare_windowsShareBridgewater's Dalio and Singapore's GIC chief cautious on global outlook
Ray Dalio, founder of the world's largest hedge fund, and Lim Chow Kiat, the boss of Singapore's sovereign wealth fund GIC are increasingly cautious on the year ahead due to political risk and uncertain global growth prospects.
linkCopy linkshare_windowsShareIndian shares tread water ahead of Fed policy decision
Indian shares were little changed on Wednesday and are expected to tread water through the session ahead of the U.S. Federal Reserve's rate decision and commentary due after market hours.
linkCopy linkshare_windowsShareOil prices steady, with investors focusing on Fed decision
Oil prices steadied on Wednesday, after rising in the previous two sessions, as investors await the U.S. Federal Reserve's anticipated interest rate cut, with the potential for more violence in the Middle East supporting the market.
linkCopy linkshare_windowsShareMorning Bid: Fed's close call - the waiting is almost over
A look at the day ahead in Asian markets.
linkCopy linkshare_windowsShareFed to go big on first rate cut, traders bet
They expect two half-point rate cuts and one quarter-point cut over the rest of 2024.
linkCopy linkshare_windowsShareS&P 500 ends little changed as early gains fade before Fed decision
U.S. stocks closed nearly unchanged on Tuesday, giving up earlier gains that had vaulted the S&P 500 and Dow Industrial Average to record highs as investors braced for the first Federal Reserve rate cut in 4-1/2 years.
linkCopy linkshare_windowsShareStocks Waver in Face of Debate on Size of Fed Cut: Markets Wrap
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Stocks struggled for direction as a watchful tone spread across global markets before the Federal Reserve’s interest-rate decision.
linkCopy linkshare_windowsShareScaramucci Predicts Bitcoin Record on Fed Rate Cuts, Clearer US Rules
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Hedge fund manager Anthony Scaramucci projected record highs for Bitcoin fueled by a combination of interest-rate cuts and US crypto regulatory clarity in the wake of November’s presidential election.
linkCopy linkshare_windowsShareFed Cut Serves as Starting Gun for Central Banks Across Asia
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Asia’s central banks are in for some relief after more than two years of currency pain, as the Federal Reserve is set to lower interest rates by at least a quarter-point. The path for the region’s own monetary policy, though, will be bumpy from here.
linkCopy linkshare_windowsShareMarkets in 3 Minutes: Fed's Reaction Function Is Main Message
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Guy Johnson, Tom Mackenzie, Lizzy Burden, and Mark Cudmore break down today's key themes for analysts and investors on "Bloomberg: The Opening Trade." (Source: Bloomberg)
linkCopy linkshare_windowsSharePimco’s Ivascyn Sees Market Getting Ahead of Itself on Fed Bets
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The bond market has priced in too many Federal Reserve interest-rate cuts, says Daniel Ivascyn, who runs the world’s largest actively managed fixed-income fund at Pacific Investment Management Co.
linkCopy linkshare_windowsShareStocks Rise Before Fed, Intel to Make Custom AI ChIps for Amazon | The Opening Trade 09/17
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Retail and banking stocks rose as traders looked forward to a final set of economic data before the Federal Reserve decides on the size of Wednesday’s interest-rate cut. Intel and Amazon will coinvest in a custom semiconductor for artificial intelligence computing . With Ursula von der Leyen announces the portfolios for her next team of commissioners, as Macron ally Stephane Sejourne is pegged to be nominated as an executive vice president. The Opening Trade has everything you need to know as markets open across Europe. With analysis you won't find anywhere else, we break down the biggest stories of the day and speak to top guests who have skin in the game. Hosted by Anna Edwards, Guy Johnson and Lizzy Burden. (Source: Bloomberg)
linkCopy linkshare_windowsShareOil Edges Lower With US Stockpiles and Mideast Tensions in Focus
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Oil edged lower following a two-day gain as traders assessed indications of higher US crude stockpiles, sustained tensions in the Middle East, and the likely course of the Federal Reserve’s rate path.
linkCopy linkshare_windowsShareGryphon’s Du Plessis Is Lone Outlier on South African Rate Cut
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Economists are almost unanimous that the South African Reserve Bank will deliver a 25-basis-point interest-rate cut on Thursday. Almost, but not quite.
linkCopy linkshare_windowsShareFTSE 100 Live: UK Inflation Stays at 2.2% in August
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Shoppers at a fruit and vegetable market stall on Electric Avenue in the Brixton area of London, UK, on Friday, Sept. 22, 2023. As London flourished as a financial hub over the last two decades and house prices soared, it was many of the residents so key to its cultural and economic success who were hit the hardest. Photographer: Ayesha Kazim/Bloomberg
linkCopy linkshare_windowsShareSouth African Inflation Dips Below Target on Eve of Rates Call
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South Africa’s annual inflation rate fell below the midpoint of the central bank’s target range for the first time in more than three years, adding impetus for it to start easing.
linkCopy linkshare_windowsShareIndonesia Surprises With Quarter-Point Cut Before Fed Move
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Indonesia’s central bank unexpectedly cut its key interest rate for the first time in more than three years, easing ahead of its own guidance and just hours before the Federal Reserve’s expected dovish tilt.
linkCopy linkshare_windowsShareUK Inflation Steady at 2.2% Leaves Door Open for Rate Cuts
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UK inflation held at just above the Bank of England’s 2% target in August, cementing expectations that policymakers will cut interest rates again later this year.
linkCopy linkshare_windowsSharePhilippines Plans Large RRR Cut This Year After Easing Pivot
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The Philippine central bank is looking to cut banks’ reserve requirement ratio significantly before yearend, according to Governor Eli Remolona, a move that’s expected to unleash billions of pesos into the financial system.
linkCopy linkshare_windowsShareBank of Canada’s Rogers Says Inflation Battle Isn’t Over Yet
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The Bank of Canada’s second-in-command said policymakers still want to see more progress on core inflation measures, even with the primary measure of price pressures back to the central bank’s 2% target.
linkCopy linkshare_windowsShareFed to Kick Off Rate Cuts, Signal Next Steps
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The Federal Reserve is widely expected to lower interest rates this week after holding borrowing costs at a two-decade high for more than a year.
linkCopy linkshare_windowsShareFed Cuts Will Usher in Weaker Dollar, Point72’s Drossos Says
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The US dollar is entering a downward trend as the Federal Reserve starts lowering borrowing costs and signs of optimism emerge in other parts of the world, according to Sophia Drossos, a strategist and economist at Point72 Asset Management.
linkCopy linkshare_windowsShareIndonesia Central Bank Set for Dovish Hold, With Eyes on the Fed
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Indonesia’s central bank is approaching the point where it can start easing borrowing costs as the rupiah keeps strengthening and inflation stays modest. Most economists aren’t convinced that it will happen this week though, before the expected US rate cut.
linkCopy linkshare_windowsShareJPMorgan’s Dimon Says Fed Rate Cut Won’t Be ‘Earth-Shattering’
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JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said whether the Federal Reserve cuts interest rates by 25 or 50 basis points, the move is “not going to be earth-shattering.”
linkCopy linkshare_windowsShareBank of France Predicts Inflation Will Slow to 1.5% Next Year
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The Bank of France cut its forecast for French inflation next year to well below the European Central Bank’s 2% target, adding to signals encouraging policymakers to pursue interest-rate cuts.
linkCopy linkshare_windowsShareBond Traders Favor Half-Point Cut in Fed’s ‘Coin Flip’ Decision
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Bond traders are favoring bets the Federal Reserve will kick off its interest-rate cutting cycle with a half-point move this week as debate rages on over whether officials can pull off a rare soft landing.
linkCopy linkshare_windowsShareBrazil’s Tightening Cycle Set to Miss Market Forecast, JPM Says
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Brazil will raise interest rates less than traders expect as the Federal Reserve’s easing cycle provides a ‘Goldilocks’ scenario for risk assets, according to the head of Latin America economic research at JPMorgan & Chase Co.
linkCopy linkshare_windowsShareBOE Needs to Ease Stigma of Repo Facility, Federated Hermes Says
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The Bank of England needs to shift the perception that its liquidity facilities for banks are primarily crisis-management tools, according to Debbie Cunningham, chief investment officer for global liquidity markets at Federated Hermes.
linkCopy linkshare_windowsShareEvercore’s Hyman Says He’ll Be ‘Shocked’ If Fed Cut Isn’t Half a Point
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Evercore ISI’s Ed Hyman, one of Wall Street’s most closely watched and decorated economists, expects the Federal Reserve to cut interest rates by a half-point on Wednesday and to ultimately engineer a soft landing.
linkCopy linkshare_windowsShareBrazil Braces for Hawkish Central Bank Chief Just as Fed Readies Rate Cuts
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The new power broker in Brazil’s central bank, Gabriel Galipolo, has made a radical transformation to anti-inflation crusader over the past few weeks. In so doing, Galipolo, who’s been tapped to take the top job at the bank, has upended the outlook for monetary policy in Latin America’s largest economy.
linkCopy linkshare_windowsShare
As Federal Reserve Readies Interest Rate Cut, Risks to Job Market Still Loom
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The Federal Reserve is poised to lower interest rates this week. Recent jobs data have been a reminder that a soft landing is not yet assured.
linkCopy linkshare_windowsShareThai Government Nominates Central Bank Critic for BOT Chairman
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Thailand’s government is backing Kittiratt Na-Ranong, a critic of the central bank’s hawkish monetary policy and a loyalist of the ruling party, to become the new chairman of the Bank of Thailand, according to people familiar with the matter.
linkCopy linkshare_windowsShareHedge Funds Brevan Howard, Millennium Boost Japan Trading Ranks
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Hedge fund firms including Brevan Howard Asset Management LLP and Millennium Management LLC continue to boost their ranks of Japan-focused traders after economic and monetary policy swings roiled markets.
linkCopy linkshare_windowsShareBloomberg Daybreak Europe: Rate Uncertainty In 15 Years(Podcast)
Source: Bloomberg, 16:39
linkCopy linkshare_windowsShareRate Uncertainty Highest Since 2007, Amazon Ends WFH, More
wSource: Bloomberg, 6:50
linkCopy linkshare_windowsShareTrump Suspects Plan, The Fed Gets Some Congress Heat
Source: Bloomberg, 3:59
linkCopy linkshare_windowsShareCentral bank digital currency momentum growing, study shows
A total of 134 countries representing 98% of the global economy are now exploring digital versions of their currencies, with almost half at an advanced stage and pioneers like China, the Bahamas and Nigeria starting to see a pick up in usage.
linkCopy linkshare_windowsShareAsia shares rise; dollar, yields hurt by outsized Fed rate cut bets
Asian stocks gained on Tuesday while the dollar and U.S. Treasury yields came under pressure, with just a day to go before the expected start of the Federal Reserve's easing cycle that could see policymakers deliver an outsized rate cut.
linkCopy linkshare_windowsShareAs Fed cuts loom, health of US economy could determine markets' path
How stocks, bonds and the dollar perform after the Federal Reserve kicks off its rate-cutting cycle could depend on one factor more than most: the health of the U.S. economy.
linkCopy linkshare_windowsShareMorning Bid: Dovish Fed eyed, China's deflationary forces intensify
A look at the day ahead in Asian markets.
linkCopy linkshare_windowsShareRupee faces resistance on dollar buying by state-run banks
The Indian rupee faced resistance on Tuesday following a rise driven by the U.S. dollar's struggles a day ahead of the Federal Reserve's highly anticipated interest rate decision.
linkCopy linkshare_windowsShareRupee expected to remain steady ahead of Fed decision
The Indian rupee is expected to open nearly flat on Tuesday, with traders expecting the currency to see largely rangebound price action ahead of U.S. Federal Reserve's policy decision this week.
linkCopy linkshare_windowsShareIndian shares hold near record highs ahead of Fed policy decision
Indian shares held ground near all-time highs on Tuesday, with traders expecting marginal moves ahead of the U.S. Federal Reserve's widely expected interest rate cut a day later.
linkCopy linkshare_windowsShareConsumers Have a Debt Problem: Not Enough of the Right Kind
The Federal Reserve’s next interest-rate decision could be a fateful one for many consumers and in turn for debates about the health of the American spender.
linkCopy linkshare_windowsShareWhere to Put Your Money When the Fed Cuts Rates
What lower rates mean for the trillions of dollars in CDs and high-yield savings accounts.
linkCopy linkshare_windowsShareEuropean Stocks Rise With Data in Focus Before Fed: Markets Wrap
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European stocks rose as traders looked forward to a final set of US economic data that could determine the size of Wednesday’s Federal Reserve interest-rate cut.
linkCopy linkshare_windowsShareHedge Funds Start to Split on Long-Yen Trades Before Fed and BOJ
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A divergence is emerging among leveraged funds on their positions in the yen ahead of the Federal Reserve and Bank of Japan meetings that will dictate the currency’s near-term trajectory.
linkCopy linkshare_windowsShareECB’s Simkus Says Likelihood of October Rate Cut Is ‘Very Small’
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There’s little chance that the European Central Bank will lower interest rates again next month, according to Governing Council member Gediminas Simkus.
linkCopy linkshare_windowsShareMarkets in 3 Minutes: Retail Sales Is Now the Fed Decider
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Anna Edwards, Guy Johnson, Lizzy Burden, and Mark Cudmore break down today's key themes for analysts and investors on "Bloomberg: The Opening Trade." (Source: Bloomberg)
linkCopy linkshare_windowsShareTreasuries to 'Outperform' If Fed Cuts by 50 Bps: UBS Asset Management's Zhao
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Kevin Zhao, lead portfolio manager for UBS Asset Management's actively managed sovereign, fixed income and currency funds, discusses the outlook for Treasuries amid this week's Federal Reserve decision on interest rates. He speaks on Bloomberg Television. (Source: Bloomberg)
linkCopy linkshare_windowsShareWindfall Awaits Emerging-Market Debt as Fed Gears Up for Cuts
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JPMorgan Asset Management, Van Eck Associates Corp. and Vontobel Asset Management are betting that the billions of dollars pulled from emerging markets will start coming back as US borrowing costs drop.
linkCopy linkshare_windowsShareMagellan's Lam on Market Anticipation of Fed Cut
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Britney Lam, Magellan Capital head of equities, long/short, discusses how the market is pricing in an anticipated cut by the Fed. She speaks with Joumanna Bercetche on Horizons Middle East & Africa. (Source: Bloomberg)
linkCopy linkshare_windowsShareOil Climbs Ahead of Fed Decision But Demand Concerns Persist
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Oil edged higher as a widely expected interest-rate cut by the Federal Reserve this week offset concerns about the demand outlook.
linkCopy linkshare_windowsShareGoldman Says Gold May Dip If Fed Opts for Quarter-Point Cut
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Gold may face a minor, near-term setback if the Federal Reserve opts for just a 25-basis-point cut this week, but the metal will subsequently rally to a record aided by rising flows into bullion-backed exchange-traded funds, according to Goldman Sachs Group Inc.
linkCopy linkshare_windowsShareCurrency Contrarians Cut Yen-Buying Positions as Yen Passed 140
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Foreign-exchange margin traders in Japan unwound long yen positions as the currency strengthened past the key psychological level of 140 yen per dollar on Monday for the first time in a year.
linkCopy linkshare_windowsShareSwiss Watchmakers Call on SNB to Act on Franc as Exports Slump
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Swiss watchmakers urged the central bank and the government to support exporters by curbing the strength of the country’s currency as overseas sales slump.
linkCopy linkshare_windowsShareAfrica’s Largest Economies to Change Course on Rates for First Time in Years
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Central banks in two of Africa’s largest economies — South Africa and Nigeria — are set to change course on interest rates for the first time in years as inflation lets up.
linkCopy linkshare_windowsShareBOJ Faces Task of Flagging Rate Hike Path While Standing Pat
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Bank of Japan Governor Kazuo Ueda faces the delicate task this week of making sure investors are firmly aware of interest rate hikes to come without ruffling markets even as he stands pat on policy.
linkCopy linkshare_windowsShareGLOBAL INSIGHT: Three Takeaways on the Emerging Market Outlook
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(Bloomberg Economics) -- A prolonged war, rattled markets and fading commodity rents are putting pressure on key emerging markets. In Europe, Ukraine’s incursion in Russian territory is a risky gamble that might give the country more leverage for negotiations to end the war. For Brazil, it could mean tightening monetary policy further to appease markets amid fiscal and credibility concerns. For many rentier Middle Eastern countries, the challenge is finding political, not just economic, solution
linkCopy linkshare_windowsShareECB’s Kazaks Says Rates to Be Cut Further But Not Too Quickly
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The European Central Bank will ease monetary policy further, though it shouldn’t do so too hastily due to lingering inflation risks, according to Governing Council member Martins Kazaks.
linkCopy linkshare_windowsShareCanada Yield Curve Disinverts With Fed and Macklem Eyeing Cuts
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Canada’s benchmark two-year yield briefly dropped below the 10-year for the first time in more than two years, as traders looked ahead to Federal Reserve cuts and Bank of Canada Governor Tiff Macklem made dovish comments to the Financial Times.
linkCopy linkshare_windowsShareIMF Considers Easing Loan Penalties Ahead of October Meetings
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The IMF is considering easing loan fees criticized as punitive on borrower countries, with a decision expected before its October meetings.
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