APOLLO CHIEF ECONOMIST
Fed's rate cuts to trigger a $2 trillion exodus from money-market funds, where will the money go? Here's what Apollo's Torsten Slok says
US Fed rate cuts were implemented a couple of weeks ago, and that helped put recession fears at bay. However, the rate cuts have the potential of triggering a multi-trillion dollar exodus at the money market. says an Apollo chief economist. But, where will all of this money go?
Howard Lutnick: Trump's choice for commerce secretary is a Musk pick, avid crypto fan and big tariff backer
Donald Trump has nominated Howard Lutnick for the position of commerce secretary. Lutnick is the head of Cantor Fitzgerald and a cryptocurrency enthusiast. He was also a co-chair of Trump's transition team. Lutnick is known for his support of Trump's tariffs plan and cryptocurrency.
The peculiar 'no show' from US cash funds
Despite expectations, US cash funds have not shifted into riskier assets as interest rates dropped. Money market funds remain attractive due to good returns, and people are cautious about moving into stocks or bonds. The significant cash reserves held by households and businesses are still growing, hinting at a preference for safety over risk.
Japanese stocks rise as PM¡¯s comment weakens Yen
The yen tumbled about 2% against the dollar Wednesday, its worst day since June 2022, after Shigeru Ishiba said the economy isn¡¯t ready for another hike. The currency fluctuated near 146.50 per dollar Thursday, near its weakest level in a month.
Fed rate-cutting cycle could be shallower than expected
The U.S. Federal Reserve is expected to begin its rate-easing cycle, but major investors and analysts predict that the cuts may be shallower than anticipated due to a strong economy. While markets expect significant rate reductions, experts suggest that deep cuts would only be justified in the event of a recession.
With Fed's shift to job market risks done, policy now has to catch up
In 2022, the Federal Reserve focused on combating inflation by rapidly raising interest rates. Two years later, the focus has shifted to protecting the job market, with potential rate cuts on the horizon. Fed Chair Jerome Powell's recent speech at the Jackson Hole conference highlighted the need to address job market risks. The economy is at a critical juncture as officials debate the pace and extent of rate cuts to maintain full employment.
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Global traders flood American markets in search for safety
International investors are flooding American markets with $30 billion in stock funds, mainly targeting US tech shares. The S&P 500 and long-dated Treasuries are outperforming global markets amid economic and political uncertainties.
Sensex hits fresh all-time high, surges 1,619 points; rate-sensitive stocks surge up to 9% post RBI policy decision
The market capitalisation of all listed companies on BSE surged by Rs 7.38 lakh crore to Rs 423.27 lakh crore. Post RBI policy decision, realty indices surged up to 9.5%, with Sunteck Realty, Sobha, Brigade, and Lodha rising between 3% and 9.5%. Nifty Bank stocks such as Bandhan Bank, SBI, Axis Bank, AU Small Finance Bank, and Kotak Bank rose by 1-2%.
Sensex can zoom to 1.5 lakh by 2029 but don't be a speculator
While there are several reasons for this surge, peaks and troughs, booms and busts are an integral part of the stock market saga - much like the waves of the sea, which incessantly rise and fall. Hence, there could be an element of ¡°irrational exuberance¡±, ¡°froth¡± and ¡°bubble¡±.
Wall Street humbled as fast-reversing markets confound the pros
?With inflation up, economic growth down and two-year Treasury yields testing 5%, Bill Gross sensed the music in markets was fading, and said it was time to get over the likes of the Magnificent Seven.
Wall Street humbled as fast-reversing markets confound the pros
With inflation up, economic growth down and two-year Treasury yields testing 5%, Bill Gross sensed the music in markets was fading, and said it was time to get over the likes of the Magnificent Seven.
When will Fed cut rates? As US economy flexes its muscles, maybe later or not at all
But now, with the U.S. economy showing surprising vigor, a different question has arisen: Will the central bank really cut rates three times this year, as the Fed itself has predicted - or even cut at all? The Fed typically cuts only when the economy appears to be weakening and needs help.
AI fantasy fades as Wall Street reels from real-world rate jump
The recent increase in borrowing costs across Corporate America is causing concern for stock investors, particularly in the tech sector. Federal Reserve Chairman Jerome Powell's commitment to keeping interest rates adjusted for inflation elevated has sparked a sell-off in Big Tech stocks. The rising cost of capital is seen as detrimental to equity valuations, and skepticism is growing as the cost of borrowing climbs. Higher rates are pressuring companies and threatening to impact their valuations. The tech-heavy Nasdaq 100 has already dropped over 5% in September.
US Federal Reserve will be mindful of the banking turmoil of March as it meets this week
The regional banking crisis that occurred earlier this year continues to have a lasting impact on the regional banking industry and the economy. The crisis caused a tightening of credit conditions. As a result, credit availability has tightened and loan spreads have widened. Torsten Slok, chief economist at Apollo Global Management, said the banking crisis had "a magnifying effect" on the Fed's tightening but its full impact would come with a lag.
Wall Street Week Ahead: Investors lower outlook for consumers as student loans, credit card debts pile up
Department store Nordstrom said last week that delinquencies on its store cards are now higher than pre-pandemic levels. Rival Macy's said it expects late payments to reduce credit-card revenues by 41% from the previous quarter.
RBI MPC, FII action, Q1 earnings among top 10 factors to drive Dalal Street mood this week
Plenty of data to be announced by the US this week including those on trade balance, CPI, initial jobless claims, wholesale inventories and consumer sentiments. The UK will declare industrial production, manufacturing production and GDP data. China will announce its FDI, CPI, producer price index (PPI) and trade balance data
Wall Street Week Ahead: Hopes of 'Goldilocks' economy, rate peak buoy US stocks
The S&P 500 is up nearly 19% this year after gaining around 1% in the past week. It has risen nearly 10 percentage points since June 1, over which time the U.S. government avoided a debt ceiling default and consumer prices cooled, while growth stayed resilient.
Housing rebound poses challenge for Fed's inflation fight
Policymakers are poised to lift rates by a quarter point following a two-day policy meeting Wednesday, bringing the target on their benchmark rate to a range of 5.25% to 5.5%. Projections released by Fed officials in June showed most of them foresee at least one more rate hike by year end.
What to know ahead of the Fed's interest-rate decision
Another important element of this week¡¯s meeting: Policymakers are set to issue updated rate projections for the first time since December, offering crucial guidance on whether they still expect any additional hikes this year.
Fed meets as bank chaos collides with inflation
The Federal Reserve is focused on reducing rapid inflation in the United States, but recent events have complicated that job. Many economists expect the Fed to raise interest rates a quarter-point, to just above 4.75%, on Wednesday. This action is meant to slow down the economy and fight inflation. But before making this decision, the Fed must consider the impact of banking system instability on the economy.
Futures sink as Credit Suisse woes weigh on banks
Contracts on the S&P 500 sank about 2%. The 10-year Treasury yield plummeted below 3.5% after data showed wholesale prices in the US unexpectedly decline in March, adding to evidence that inflation may be near peaking. The dollar rallied.
ET GBS: Super optimistic about India, say global CEOs
¡°I'm super optimistic about India ¡ there is no other place in the world where we have invested more than in India over the past 20 years. India is the epicentre of faster transformation, faster growth,¡± said Jean-Pascal Tricoire, chairman of Germany¡¯s Schneider Electric that employs 35,000 people in India now.
World economy¡¯s soft landing hopes boosted as 2023 begins
?A variety of factors are combining to dissipate some of the gloom that engulfed financial markets at the end of 2022 and fanning hopes the world can dodge a recession.
World economy walks tightrope between recession and soft landing
A variety of factors ¨C a sooner-than-expected reopening of China¡¯s economy, a warmer-than-normal winter in energy-strapped Europe and a sustained fall in US inflation ¨C are combining to dissipate some of the gloom that engulfed financial markets at the end of 2022 and fanning hopes the world can dodge a recession.
Wall Street drops on inflation, rate hike worries
At 10:24 a.m. ET, the Dow Jones Industrial Average was down 210.92 points, or 0.70%, at 30,062.95, the S&P 500 was down 27.30 points, or 0.72%, at 3,755.98, and the Nasdaq Composite was down 74.81 points, or 0.67%, at 11,073.83.
Top 10 metal stocks wipe out 2.63 lakh crore from investors' kitty; time for cherry-picking?
He said there is intense competition going forward because when global central banks are fighting inflation, commodities do not do well. "Commodities in general and metals are underweight, and steel and metal stocks are sell-on-rise."
Anthology on PM Modi's 'unique' governance style to hit the bookstores next month
The anthology is edited and compiled by BlueKraft Digital Foundation.
ETMGS: Government in Budget 2021 should go for growth-oriented measures to bridge the income gap
Fiscal prudence today for the sake of it may leave the country in a worse shape in the medium term than is perceptible currently.
As credit losses pile up, one bond guru dismisses crisis talk
How corporate America holds up during the next downturn could very well determine whether the recession, whenever it comes, turns into a full-blown crisis.
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