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Recap | Fed's Hawkish Cut and Market Sell-Off

Recap | Fed's Hawkish Cut and Market Sell-Off

The Federal Reserve, in its December meeting, delivered exactly what the market had predicted: a 25-basis-point cut to interest rates. Yet, instead of celebrating the anticipated move towards easier monetary policy, markets threw a tantrum. Stocks tumbled, bond yields soared, and volatility spiked – all on the back of a move
Trump's Quest for Cheap Energy

Trump's Quest for Cheap Energy

Trump and Bond Yields

Trump and Bond Yields

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Latest news and headlines

Bloomberg L.P.
Federal Reserve Withdraws From Global Climate Coalition
The Federal Reserve announced Friday it had withdrawn from the Network of Central Banks and Supervisors for Greening the Financial System, a global coalition of central banks engaged in the study of ...
Reuters
Federal Reserve announces exit from regulatory climate change group
The Federal Reserve announced on Friday it had withdrawn from a global body of central banks and regulators devoted to exploring ways to police climate risk in the financial system.
Reuters
Private equity 'secondary' sales hit record as Ardian closes $30 bln fund
The secondary market for private equity funds saw record transaction volumes last year as buyout bosses and their investors looked for ways to generate cash amid a downturn in dealmaking.
Reuters
India's economy set for rebound but food inflation needs monitoring, cenbank says
India's economic growth is poised to rebound as domestic demand regains strength, but "stickiness" in food inflation warrants careful monitoring, the central bank said in its monthly bulletin released ...
Reuters
Fed to hold rates in Jan as Trump's policies stir inflation worries
The U.S. Federal Reserve will hold interest rates steady on Jan. 29 and resume cutting in March, according to a slim majority of economists polled by Reuters, as policymakers digest an expected ...
Bloomberg L.P.
Here's Why Immigration Policy Matters So Much For The US Economy
Many economists and business leaders credit immigration for filling vacancies across the economy, but Donald Trump and many of his allies accuse immigrants of lowering wages and taking jobs from ...
Reuters
U.S. equity fund outflows surged on doubts over Fed rate cuts
U.S. equity funds saw a spike in outflows for the week ending Jan. 15, as the outlook for Federal Reserve rate cuts this year had dimmed while investors were cautious about the ongoing quarterly ...
Reuters
Corporate hedging to save debt costs may have worsened 10yr sell-off
A sell-off in U.S. Treasury markets in recent weeks was likely made worse by corporate plans to borrow nearly $190 billion in the bond market this month, bankers and analysts said, highlighting a risk ...
Reuters
Russia's Sberbank reports record profits for 2024
Russia's largest lender Sberbank on Friday reported record annual profits of 1.56 trillion roubles ($15.22 billion)for 2024, helped by strong growth in corporate borrowing and high interest rates, ...
Reuters
Trump’s Treasury pick Bessent says US must keep oversight of Treasuries
The United States should keep oversight of potential problems in the U.S. bond market, President-elect Donald Trump's Treasury Secretary pick Scott Bessent told Congress on Thursday, referring to Wall ...
Nikkei Asia
Japan's ultra-easy monetary policy hurt fiscal discipline, economists say
TOKYO -- The Bank of Japan's long-term quantitative and qualitative easing measures since 2013 had the side effect of loosening fiscal discipline, 64% of respondents said in a new Nikkei poll of ...
Reuters
How bond market vigilantes could check Trump's power
Like Clinton before him, Trump now faces the prospect of bond vigilantes becoming a potent check on his policy agenda, according to several former U.S. and foreign policymakers who faced market ...
Economist
Ethiopia gets a stockmarket. Now it just needs some firms to list
The country is no longer the most populous without a bourse
BBC
Bank performance signals boost to US economy - 16 Jan 2025
Jason Betz, a Private Wealth Advisor at Ameriprise Financial says that there is untapped resilience in the American economy. While her three offspring take a leisurely bath, this Bengal tiger mother ...
Reuters
EM central banks cool on Treasuries, stoking bond yield heat
Spiking Treasury yields and the 'wrecking ball' dollar are creating a negative feedback loop that monetary authorities around the globe may be helping to sustain.
Reuters
Oil retreats slightly after boost from US crude draw, Russia sanctions
Oil prices fell back slightly on Thursday, a day after settling at multi-month highs on U.S. President Joe Biden's latest sanctions targeting Russia and a larger than forecast fall in U.S. crude ...
Reuters
Republicans in Congress warn rising US bond yields could hit Trump's tax cut plans
Just days before Donald Trump returns to power, some of his Republican allies in the U.S. Congress are warning that the president-elect's aggressive tax-cut agenda could fall victim to signs of worry ...
Reuters
Sterling drops against yen, dollar and euro
Sterling dropped sharply against the yen and also weakened versus the dollar and the euro on Thursday as investors focused on monetary policy divergence after last week's sell-off in gilts and the ...
Reuters
Trump faces a powerful check on his power: bond vigilantes
When Bill Clinton began his first term as president in 1993, he faced a challenge to his authority from an unexpected adversary: bond traders. Low taxes and high defense spending over the prior decade ...
Reuters
Tel Aviv stocks open at record highs after Gaza ceasefire deal
Israel's main stock indexes hit fresh record highs on Thursday, following a ceasefire accord between the country and militant group Hamas after 15 months of conflict.
BBC
Borrowing costs fall after inflation surprise
Bets on lower borrowing costs were also bolstered by inflation news coming out of the US, where data suggested the underlying pace of price increases was easing. The monthly report from the Labor ...
Bloomberg L.P.
Bond Yields Extend Drop as Traders Firm Up Rate-Cut Bets
That would mark a bounceback after the 0.1% decline in output seen in the prior month, which showed broad-based weakness, albeit with a drag from the volatile mining sector. Our colleagues at ...
Reuters
Dollar-rupee forward premiums dip after India central bank's liquidity infusion
Dollar-rupee forward premiums declined on Thursday after India's central bank said it would infuse rupees into the banking system daily, which bankers said would reduce the need to conduct ...
Reuters
China response key to crude oil after new sanctions on Russia: Russell
"This time it's different" is a well-worn cliché that seems to be getting another whirl with the latest U.S. sanctions against Russia's crude oil exports.
Economist
Will Donald Trump unleash Wall Street?
Bankers have plenty of reason to be hopeful
Reuters
BOJ chief Ueda signals rate hike chance next week, yen jumps - Reuters
BOJ chief Ueda signals rate hike chance next week, yen jumps  Reuters
The Financial Times
Beige book confirms US economy solid and strengthens case for Fed hold
Activity, prices and labour markets all stronger relative to last release, reinforcing need for central bank caution ahead ...
Reuters
Fed's Williams says policy data dependent in very uncertain environment
Federal Reserve Bank of New York President John Williams said Wednesday that future monetary policy actions will be driven by economic data as the central bank confronts a high level of uncertainty in ...
Bloomberg L.P.
Looking back at 2024: Equities
Contrary to predictions, 2024 was another stellar year for equity markets, driven by economic strength, robust earnings, and easing policies. Which equity indices saw the most significant growth?
Reuters
US Crude oil stocks excluding SPR fall to 2-year low, EIA says
U.S. crude oil stocks excluding the Strategic Petroleum Reserve (SPR) fell last week to their lowest since April 2022 as exports rose and imports fell, the Energy Information Administration (EIA) said ...

Fixed Income

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Country Garden Proposes $11.6 Billion Debt Reduction Deal

Country Garden, once China's largest property developer, has proposed a deal to its offshore creditors that would slash its debt by $11.6 billion, Reuters reports. This move aims to secure more time from the Hong Kong high court to implement a restructuring plan. The deal, reached with

China to Sharply Increase Treasury Bond Funding to Spur Growth in 2025

China plans to significantly increase funding from ultra-long treasury bonds in 2025 to stimulate business investment and consumer spending, Nikkei Asia reports. This move aims to revitalize the faltering economy. Yuan Da, deputy secretary-general of the National Development and Reform Commission (NDRC), announced the plan at a press conference. Special

China Dividend ETFs Soar as Investors Ditch Bonds

Chinese investors are flocking to dividend-paying stocks as 2024 draws to a close, propelling two of the largest dividend exchange-traded funds (ETFs) in the country to record-breaking inflows, reports Bloomberg. The Huatai PB CSI Bonus Low Fluctuation ETF and Huatai-PineBridge SSE Dividend Index ETF saw a combined 9.4 billion

Japan Approves Record $730 Billion Budget with Reduced Bond Issuance

Japan's cabinet is set to approve a record ¥115.54 trillion ($731.28 billion) general-account budget for fiscal 2025 on Friday, according to Nikkei Asia. While this represents a significant increase from the previous year, the government plans to finance a smaller portion of the budget with debt.

Commodities

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Equinor Extends Norway LNG Outage by 10 Days

Equinor has extended the outage at its Hammerfest LNG plant in Norway by 10 days, Reuters reports. The plant, also known as Melkoeya LNG, is Europe's largest liquefied natural gas (LNG) export facility, and the outage is expected to last until January 19. The company initially announced on

Cocoa Plunges as Exchange Curbs Volatility

Cocoa prices tumbled to their lowest point in over a week, with the most-active contract shedding nearly 5% in London. Bloomberg reports that traders are adjusting their positions in response to new measures implemented by Intercontinental Exchange Inc. (ICE) to curb market volatility. ICE Futures Europe on Tuesday lowered the

Oil Prices Slip in Thin Holiday Trade as Traders Await Economic Data

Oil prices edged lower on Monday in light holiday trading, as traders awaited key economic data releases from China and the US this week, according to Reuters. The upcoming data is expected to shed light on the health of the world's two largest oil consumers and the outlook

Gas Prices Surge as Ukraine Transit Deal Uncertainty Deepens

European natural gas prices surged on Friday, driven by Russian President Vladimir Putin's latest pronouncements casting doubt on a post-2024 gas transit deal through Ukraine, as reported by Bloomberg. Benchmark futures jumped as much as 5%, marking the most significant weekly increase, following Putin's Thursday statement