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Fed talks are robust

As Fed spokesmen have strong rhetoric on interest rates and keep market expectations in check, the bleak outlook for the UK will also weigh on UK assets.

James Bullard, President of the St. Louis Fed, said that even with a “generous” analysis of monetary policy, the Fed needs to keep raising interest rates because its tightening to date “has had only a limited impact on observed inflation.”

And Minneapolis Federal Reserve Chairman Neel Kashkari said it’s unclear how much the Federal Reserve needs to hike rates, but it shouldn’t stop until “it’s not clear inflation has peaked.

For now, it appears that the market’s recent enthusiasm for a brief bout of rate hikes has been misplaced on signs of easing inflation. On Friday, the turnaround in sentiment pushed the dollar to its best week in a month, while Asian stocks were flat.

There was some good news, however, as UK consumer confidence edged up slightly this month, although it remained near record lows on Friday, according to market research firm GfK.

It came a day after the country’s budget forecasts warned Britain would risk a record fall in living standards this year amid runaway inflation. Treasury Secretary Jeremy Hunt also announced that the pain would be even greater now that tax hikes and spending cuts are on the horizon.

On the corporate front, Francesco De Ferrari, who heads Credit Suisse’s wealth management business, told Reuters he was targeting emerging markets, affluent clients and technology to get the Swiss bank back on track.

Meanwhile, John Ray, who was appointed CEO of FTX to guide FTX Group through bankruptcy, pointed to misuse of funds and untrustworthy records in his initial insights into the crypto exchange collapse, describing it as “complete failure” of the controls.

The Bahamas Securities Commission has taken control of all of FTX’s digital assets.

Morale at Twitter is at an all-time low as hundreds of employees began leaving the struggling social media company after Elon Musk issued an ultimatum asking employees to sign in for “long, high hours” or leave.

Finally, be prepared for delays during the holiday season.

Postal workers at Britain’s Royal Mail will go on strike six days ahead of the busy Christmas period over wages and working conditions, their union said on Thursday.

Key developments that could impact markets on Friday:

UK Oct Retail Sales

Existing Home Sales in October in the United States

Fed Powell speech

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