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October 9, 2024

Pimco Says Buy Five-Year Bonds as Fed Sticks the Soft Landing

(Bloomberg) -- Investors who expect central banks in industrialized nations to successfully tap the brakes on growth while skirting downturns would do well to target five-year bonds, according to Pacific Investment Management Co.Most Read from BloombergUrban Heat Stress Is Another Disparity in the World’s Most Unequal NationFrom Cleveland to Chicago, NFL Teams Dream of Domed StadiumsChicago’s $1 Billion Budget Hole Exacerbated by School TurmoilSingapore Ends 181 Years of Horse Racing to Make Way

October 9, 2024

Brazil’s Inflation Accelerates After Electricity Prices Surge

(Bloomberg) -- Brazil’s annual inflation sped up roughly in line with estimates in September after the nation’s energy regulator hiked electricity costs in response to the worst drought on record.Most Read from BloombergUrban Heat Stress Is Another Disparity in the World’s Most Unequal NationFrom Cleveland to Chicago, NFL Teams Dream of Domed StadiumsChicago’s $1 Billion Budget Hole Exacerbated by School TurmoilSingapore Ends 181 Years of Horse Racing to Make Way for HomesShould Evictions Be Ban

October 9, 2024

RBC BlueBay Sees Risk of Trump, Harris Policies Fueling Fed Hike

(Bloomberg) -- There is a risk the Federal Reserve has to raise interest rates next year given the inflationary policy platforms of both US presidential candidates, according to Mark Dowding, the chief investment officer at RBC BlueBay Asset Management.Most Read from BloombergUrban Heat Stress Is Another Disparity in the World’s Most Unequal NationFrom Cleveland to Chicago, NFL Teams Dream of Domed StadiumsChicago’s $1 Billion Budget Hole Exacerbated by School TurmoilSingapore Ends 181 Years of

October 9, 2024

Oil slips as strong supply counters Middle East and hurricane risk

Oil prices erased early gains on Wednesday as weak demand fundamentals and rising supply countered elevated risk of supply disruption from conflict in the Middle East and Hurricane Milton in the United States. Brent crude futures fell 40 cents, or 0.4%, to $76.81 a barrel by 1028 GMT while U.S. West Texas Intermediate futures lost 36 cents, or 0.49%, to $73.21. "We have quite the tug-of-war between the bulls and the bears, with the former pinning expectations of higher prices on Middle Eastern geopolitics while the latter are looking at weak demand and a lack of fiscal stimulus in China," said Harry Tchilinguirian, head of research at Onyx Capital Group.

October 9, 2024

Jamie Dimon backs Jerome Powell’s rate cut strategy

"They were late raising rates but they raised very high, rapidly, to 5% which I think is the right thing," JP Morgan's Jamie Dimon said. "And they're right to take the foot off the gas on that one."

October 9, 2024

Fed September minutes may show whether 50 bps rate cut was a slam dunk or a hard sell

Minutes of the U.S. Federal Reserve's half-a-percentage-point rate cut last month, to be released on Wednesday, may provide a final word on just how divided policymakers were over a decision that took many economists by surprise and sparked the first dissent from a member of the Board of Governors in 19 years. Fed chair Jerome Powell in his post-meeting press conference said there was "broad support" for the half-point cut, with even dissenting Governor Michelle Bowman agreeing it was time to ease monetary policy but preferring to start with a smaller quarter-point reduction as a hedge against inflation risks she is not convinced have been fully tamed. Yet Powell also acknowledged a "good diversity of excellent discussion" about the decision, while projections issued by Fed policymakers about what would happen over just the next three months were unusually dispersed.

October 9, 2024

US bank profits to shrink on interest income, focus shifts to Fed cuts

NEW YORK (Reuters) -JPMorgan Chase and Wells Fargo kick off earnings for the sector on Friday, and investors are expected to focus on the big banks' forecasts for net interest income after strong jobs data fueled uncertainty about the path of future Federal Reserve rate cuts. Both banks are expected to report lower profits for the third quarter after interest income may shrink while loan demand remained subdued. The sector reaped a windfall in net interest income (NII), or the difference between what they earn on loans and pay out for deposits, in recent years as the Fed raised rates.

October 9, 2024

Dollar Set for Best Run of Gains Since 2022 as Fed Cut Bets Fade

(Bloomberg) -- The dollar is on track for its best run in more than two years as US economic resilience forces traders once again to rethink their bets for more aggressive Federal Reserve interest-rate cuts. Most Read from BloombergUrban Heat Stress Is Another Disparity in the World’s Most Unequal NationFrom Cleveland to Chicago, NFL Teams Dream of Domed StadiumsSingapore Ends 181 Years of Horse Racing to Make Way for HomesChicago’s $1 Billion Budget Hole Exacerbated by School TurmoilShould Evic

October 9, 2024

Federal Flood Maps Are No Match for Florida’s Double Hurricane

(Bloomberg) -- Even before the second megastorm in as many weeks brings devastating floodwaters to the Southeast US, it’s already clear that federal flood-risk maps underpinning decisions by millions of American homeowners and businesses are severely out of sync with a new era of climate-intensified disasters. Most Read from BloombergUrban Heat Stress Is Another Disparity in the World’s Most Unequal NationFrom Cleveland to Chicago, NFL Teams Dream of Domed StadiumsSingapore Ends 181 Years of Hor

October 9, 2024

Geopolitical strife could cost global economy $14.5 trln over 5 years -Lloyd's of London

LONDON (Reuters) -The global economy could face losses of $14.5 trillion over a five-year period from a hypothetical geopolitical conflict which hits supply chains, insurance market Lloyd's of London said on Wednesday. The economic impact would result from severe damage to infrastructure in the conflict region and the potential for compromised shipping lanes, Lloyd's said in a statement. "With more than 80% of the world's imports and exports – around 11 billion tons of goods – at sea at any given time, the closure of major trade routes due to a geopolitical conflict is one of the greatest threats to the resources needed for a resilient economy," Lloyd's said.

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