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September 6, 2024

Investor dash to cash continues ahead of Fed rate cut, BofA says

Investors poured $61 billion into cash-like money market funds in the week to Wednesday, as they braced for the Federal Reserve to cut interest rates for the first time in four years, Bank of America said on Friday. WHY IT'S IMPORTANT Many investment fund managers have hoped rate cuts will lower the returns on money-market funds (MMFs) and send a torrent of cash into stocks and bonds. But, somewhat counter-intuitively, big investors tend to move into MMF as the range of short-term fixed income assets they hold typically offer higher returns for longer than short-term Treasury bills, whose yields are highly sensitive to Fed rates.

September 6, 2024

Oil steadies ahead of key US jobs report

(Reuters) -Oil prices ticked up in Asian trading on Friday, with investors exercising caution ahead of key U.S. employment data as they weighed a big withdrawal from U.S. crude inventories and a delay to production hikes by OPEC+ producers. "It seems that broader caution prevails, as market participants are still trying to wrap their heads around the mixed U.S. economic data coming through this week, while the lead-up to the crucial jobs report may limit some risk-taking," said Yeap Jun Rong, a market strategist at IG.

September 6, 2024

Oil Set for Deep Weekly Loss Even as OPEC+ Delays Adding Barrels

(Bloomberg) -- Oil was poised for the deepest weekly loss in almost a year on persistent concerns about soft demand and ample supply, even as OPEC+ delayed a planned increase in output by two months.Most Read from BloombergWorld's Second-Tallest Tower Tests Malaysia's Appetite for More SkyscrapersThe Outsized Cost of Expanding US RoadsMadrid to Ban E-Scooter Rentals, Following Lead Set in ParisHow Air Conditioning Took Over the American OfficeHong Kong’s Arts Hub Turns to Selling Land to Stay Af

September 6, 2024

What's at stake in Sri Lanka's first presidential vote since its economic meltdown?

Sri Lanka will hold its presidential election on Sept. 21 in a crucial vote that will decide the future of the South Asian nation still struggling to recover from its economic collapse in 2022, which provoked mass protests and forced the former President Gotabaya Rajapaksa to flee the country and later resign. The election is seen as a referendum on President Ranil Wickremesinghe's two-year-long rule that has overseen a fragile recovery of the country's economy. Almost 17 million of Sri Lanka’s 22 million people are eligible to vote, and 38 candidates are running for office. Who are the main candidates?

September 6, 2024

Factbox-How Wall Street firms see US jobless rate shaping Fed rate cut

The Federal Reserve is widely expected to cut borrowing costs at its upcoming meeting Sept. and the strength of the job market is likely to be a deciding factor on whether it delivers a quarter-of-a-percentage-point cut or a bigger half-point cut. Below is a sampling of Wall Street banks' forecasts for the August employment report along with their expectations for the size of the Fed's rate cut later this month.

September 6, 2024

US job growth seen picking up in August; unemployment rate easing to 4.2%

U.S. job growth likely picked up in August, with the unemployment rate forecast to have dropped to 4.2%, which would offer more assurance that an orderly labor market slowdown remained intact and cement expectations of a quarter-point interest rate cut from the Federal Reserve this month. The Labor Department's closely watched employment report on Friday would add to solid consumer spending in dispelling financial market fears of a recession, which were stoked by a rise in the jobless rate to a near three-year high of 4.3% in July. The fourth straight monthly increase in the unemployment rate put a 50 basis point rate cut on the table.

September 6, 2024

Jobs report will help Federal Reserve decide how much to cut interest rates

Friday's monthly jobs report will likely mark a pivotal moment for the economy and the Federal Reserve. If it shows that hiring was weak in August and that the unemployment rate rose — similar to the unexpectedly soft figures for July — it would heighten worries that the job market is stumbling. The Fed might then seek to deliver a stimulus with a larger-than-usual interest rate cut of a half-percentage point when it meets later this month.

September 5, 2024

Argentina analysts cut 2024 inflation forecast to nearly 123%

Argentina's monthly inflation rate stood at 3.9% in August and is expected to close the year at an annualized rate of nearly 123%, according to analysts surveyed by the central bank in a poll published on Thursday. Prices are seen rising by 3.5% in September, according to the poll, slowing down after a surge that followed deep spending cuts as well as the devaluation of the peso currency enacted by libertarian President Javier Milei in a bid to reduce sky-high inflation.

September 5, 2024

Trump suggests tariffs can help solve rising child care costs in a major economic speech

Former President Donald Trump suggested to business leaders Thursday that his plans to increase tariffs on foreign imports would solve seemingly unrelated challenges such as the rising cost of child care in the U.S. The GOP presidential nominee promised to lead what he called a “national economic renaissance” by increasing tariffs, slashing regulations to boost energy production and drastically cutting government spending as well as corporate taxes for companies that produce in the U.S. Trump was asked at his appearance before the Economic Club of New York about his plans to drive down child care costs to help more women join the workforce.

September 5, 2024

Deutsche Bank CEO urges Germans to work harder to pull the country out of its economic lull

“We simply have to tell our fellow citizens that we have to do more again,” Deutsche Bank’s Christian Sewing said.

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