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☆ Currencies calm but cautious after a weary week
▼ + stars: | 2024-04-22 | by ( ) www.cnbc.com time to read: +3 min

U.S. one hundred dollar bills are being shown in this picture illustration taken in Buenos Aires, Argentina, on Dec. 15, 2023. Eyes are on the yen this week, with the Bank of Japan's, or BOJ, Friday policy review the notable item on the economic calendar. The yen has been one of the biggest losers against the dollar this year, with losses mounting to 9%. The ECB's Robert Holzmann, however, said the ECB probably will not cut rates this year as much as planned if the Fed does not move. BoE Governor Andrew Bailey and Deputy Governor Dave Ramsden alluded last week to Britain's inflation slowing as expected.

Persons: Chris Weston, Weston, Kazuo Ueda, BoE, ECB policymaker Madis Muller, Christine Lagarde, Robert Holzmann, BoE Governor Andrew Bailey, Dave Ramsden, Sterling, Bitcoin Organizations: U.S ., Bank of Japan's, Federal Reserve, Monetary Fund, Bank, Washington , Bank of Japan, European Central Bank, Bank of England, ECB policymaker, ECB, Treasury Locations: Buenos Aires, Argentina, East, Tehran, Iran, Washington, United States, Japan, South Korea, Washington ,, U.S

☆ Here come JPMorgan's earnings. These are the key things traders are watching for in the report
▼ + stars: | 2024-04-11 | by ( Samantha Subin | ) www.cnbc.com time to read: +4 min

The banking giant is expected to report earnings of $4.15 per share and $41.84 billion in revenue, according to LSEG. Many analysts also anticipate an upward revision to net interest income guidance, with the firm already forecasting $90 billion for the full year. Graseck views JPMorgan as one of the best-positioned stocks for upward net interest income revisions, also highlighting its significant excess capital relative to others within the firm's coverage. What else to watch If not during earnings, this upward guidance adjustment to net interest income could occur at JPMorgan's investor day in May, she said. Another key figure some analysts are watching is earnings from First Republic, which the company took over in May 2023 .

Persons: JPM, Piper Sandler's Scott Siefers, Morgan Stanley's Betsy Graseck, Graseck, Goldman Sachs, Richard Ramsden, America's Ebrahim Poonawala, Erika Najarian, NII, Wells, Mike Mayo, Ramsden Organizations: JPMorgan, Wall Street, Management, Bank, America's, First Locations: buybacks, First Republic, Republic

☆ US debt: Is America at risk of a Liz Truss-style market meltdown? The CBO thinks so
▼ + stars: | 2024-03-26 | by ( Hanna Ziady | ) edition.cnn.com time to read: +4 min

In an interview with the Financial Times, CBO director Phillip Swagel said US government debt — which the Treasury Department puts at nearly $35 trillion — is on an “unprecedented” trajectory. UK government bonds, or gilts, and the pound sold off sharply, partly in response to plans by Truss to issue more debt in order to pay for tax cuts. Mortgage rates and other borrowing costs soared as investors demanded much higher premiums for owning UK debt. He has promised to extend his 2017 tax cuts and has also spoken about reducing the corporate tax rate from the current 21% to 15%. “I will make the Trump tax cuts the largest tax cut in history,” he said last month at the Black Conservative Federation’s Honors Gala in South Carolina.

Persons: Phillip Swagel, Liz, ”, Truss, ” Swagel, Dave Ramsden, Donald Trump’s, Joe Biden, Fitch, “, Trump Organizations: London CNN, Congressional, Financial Times, Treasury Department, CNN, Bank of England, Democrats, Trump, Black Conservative, US Treasury, Federal, CBO Locations: United States, United Kingdom, South Carolina

☆ Goldman says it's finally time to buy this major bank turnaround story
▼ + stars: | 2024-03-14 | by ( Spencer Kimball | ) www.cnbc.com time to read: +1 min

Goldman Sachs has a buy rating on Citigroup for the first time since 2022, as the investment bank implements a turnaround strategy that should boost shareholder returns. Goldman has raised its stock price target for Citi to $68, implying nearly 18% upside from Wednesday's close price of $57.76. Goldman expects Citigroup's revenue to grow at an accelerated compound annual rate of 4% to reach $85.7 billion by 2026. Citigroup is also expected to increase share buybacks by $1 billion in 2024 and $4 billion in 2025. The bank may have capacity for even more buybacks if Basel 3 rules are changed, it said.

Persons: Goldman Sachs, Goldman, Richard Ramsden, — CNBC's Michael Bloom Organizations: Citigroup, Citi Locations: Basel

UBS trimmed its price target on Tesla to $165 from $225, implying shares will hover around current levels for the foreseeable future. Nvidia shares have rallied more than 83% this year, building on 2024's nearly 239% gain as investors continue to bet on artificial intelligence. The firm holds an overweight rating on the stock, with its $820 price target implying about 11% downside from Wednesday's close. — Samantha Subin 5:38 a.m.: UBS trims Tesla price target, cites downside risks to deliveries UBS cut its price target on Tesla to $165 from $225 a share, citing slower electric vehicle demand in the U.S. and Europe, coupled with competition concerns in China. He also raised his price target to $68 from $55, which implies upside of 18% from Tuesday's close.

Persons: Goldman Sachs, Christopher Danely, Danely, — Samantha Subin, Joseph Spak, Spak, Wells, outperformance, Richard Ramsden, Ramsden, 2026E, Fred Imbert Organizations: CNBC, UBS, Citigroup, Citi, Nvidia, Devices, Broadcom, AMD, Micron Technology, Micron, NA Locations: U.S, Europe, China, Tuesday's

☆ Davos: A mountain of debt and a wave of elections. World leaders are hamstrung
▼ + stars: | 2024-01-14 | by ( Hanna Ziady | ) edition.cnn.com time to read: +7 min

London CNN —World leaders are flocking to Davos this week to pontificate on the planet’s most pressing problems. Even in the absence of a new crisis, soaring debt servicing costs will constrain efforts to tackle climate change and care for aging populations. Mortgage rates and other borrowing costs soared as investors demanded much higher premiums for owning UK debt. Mounting debt and political brinksmanship have already taken their toll on America’s credit rating, which typically affects borrowing costs for the government, businesses and households. And that would increase the government’s borrowing costs.

Persons: worryingly, Michael Saunders, ”, Saunders, that’s, Liz Truss, Dave Ramsden, Fitch, Moody’s, Raghuram Rajan, “ It’s, ” Rajan, Anna Cooban Organizations: London CNN —, Bank, CNN, Oxford Economics, Bank of England, AAA, States ’, Reserve Bank of India, Labour Party, Treasury Department, Federal, University of Chicago Booth School of Business Locations: Davos, Kingdom, Argentina, States, United States, Switzerland

☆ Asian stocks subdued as traders brace for inflation data
▼ + stars: | 2023-11-28 | by ( Ankur Banerjee | ) www.reuters.com time to read: +4 min

"But I think it's not just this week's inflation indicator, it's also the December payroll numbers ... they'll be quite critical." "Our view is that the Fed will probably start cutting rates when inflation goes below the 3% mark. The weaker-than-expected data weighed on Treasury yields, with the yield on benchmark 10-year notes slipping 9.6 basis points on Monday. The dollar index , a measure of the greenback against a basket of currencies, fell to 103.07, its lowest since Aug. 31. Data showed retail sales in Australia unexpectedly slipped in October as consumers cut back on everything but food, though analysts believe many were merely saving some money to splurge on Black Friday sales that took place this month.

Persons: DAX, Vasu Menon, they'll, Menon, Dave Ramsden, Christine Lagarde, Jerome Powell, HSI, Brent, Ankur Banerjee, Sam Holmes, Kim Coghill Organizations: Federal, Investors, OCBC Bank, of England, European Central Bank, Japan's Nikkei, Treasury, New Zealand, Thomson Locations: SINGAPORE, Asia, Pacific, Japan, Singapore, U.S, Hong Kong, Australia

☆ BoE leads central bank chorus on need for restrictive policy
▼ + stars: | 2023-11-28 | by ( ) www.reuters.com time to read: +2 min

Deputy Governor for Markets and Banking of the Bank of England Dave Ramsden attends a press conference concerning interest rates, at the Bank of England, in London, Britain, November 2, 2023. Speaking at a central bank conference in Hong Kong, Bank of England (BoE) Deputy Governor Dave Ramsden also said he saw no financial stability grounds to lower interest rates, which are currently up at 5.25%. “We think that monetary policy is likely to need to be restrictive for an extended period of time," he said. Even with all that tightening, Ramsden said inflation was not expected to return to 2% until the end of 2025. Markets have started to position for the first rate cut, with a move seen as soon as April or June.

Persons: Bank of England Dave Ramsden, HENRY NICHOLLS, BoE, Dave Ramsden, Ramsden, Michele Bullock, Bullock, Pablo Hernández de Cos, Cos, Wayne Cole, Selena Li, Xie Yu, Jamie Freed, Simon Cameron, Moore Organizations: Markets, Banking, Bank of England, Reserve Bank of Australia, Bank of Spain, European Central Bank, ECB, Thomson Locations: London, Britain, HONG KONG, Australia, Spain, Hong Kong

☆ London stocks fall as investors await more data; Rolls-Royce shines
▼ + stars: | 2023-11-28 | by ( Shashwat Chauhan | ) www.reuters.com time to read: +2 min

A street cleaning operative walks past the London Stock Exchange Group building in the City of London financial district, whilst British stocks tumble as investors fear that the coronavirus outbreak could stall the global economy, in London, Britain, March 9, 2020. The exporter-heavy FTSE 100 (.FTSE) fell 0.6% touching a two-week low intraday, while the more domestically-oriented FTSE 250 midcap index (.FTMC) also shed 0.6%. Personal goods (.FTNMX402040) led declines among the major FTSE 350 sectors, with Burberry Group (BRBY.L) falling 2.7% after HSBC reduced the stock's price target. Investors will look ahead to UK mortgage data, inflation prints across the eurozone, and a Personal Consumption Expenditures (PCE) report in the U.S. - the Federal Reserve's preferred inflation gauge - later this week. Man Group (EMG.L) fell 3.2% after Morgan Stanley downgraded the hedge fund manager's stock to "Equal-Weight" from "Overweight".

Persons: Toby Melville, inflation's, Andrew Jones, Janus Henderson, Dave Ramsden, Jonathan Haskel, Pearson, Morgan Stanley, Shashwat Chauhan, Sonia Cheema Organizations: London Stock Exchange Group, REUTERS, Royce, Burberry Group, HSBC, PT Pearson, Man, Janus Henderson Investors, Bank of England's, Thomson Locations: City, London, Britain, U.S, Bengaluru

☆ Morning Bid: Treasuries gobbled up, oil braces for OPEC
▼ + stars: | 2023-11-28 | by ( ) www.reuters.com time to read: +5 min

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 17, 2023. Benchmark Treasury yields fell back more than 10 basis points to 4.37% after a total of $109 billion of 2 and 5-year notes hit the Street on Monday without much disruption. Another weak U.S. housing readout, with sub-forecast new home sales last month, perhaps flattered the post-auction moves. That's likely a mixed blessing for Federal Reserve watchers - the continued buoyancy of consumption but with increasing price discrimination. Fed futures priced about 85bps of rate cuts through next year, starting in June, though many major banks expect even more.

Persons: Brendan McDermid, Mike Dolan, That's, Hong, Louis, Christopher Waller, Michelle Bowman, Michael Barr, Austan Goolsbee, Christine Lagarde, Philip Lane, Dave Ramsden, BoE, Jonathan Haskel, Hewlett Packard, Ed Osmond Organizations: New York Stock Exchange, REUTERS, Treasuries, Treasury, Adobe Digital, Federal Reserve, Louis Fed, U.S . Treasury, Richmond Fed, Dallas Fed, . Treasury, Chicago Fed, European Central Bank, ECB, Bank of England, Citi Trends, Fluence Energy, Reuters, Reuters Graphics Reuters, Thomson Locations: New York City, U.S, Asia, Europe, United States, China, New York, St, Uxin, Canaan, Elbit

☆ Morning Bid: Treasury yields dive as oil craters, economy softens
▼ + stars: | 2023-11-17 | by ( ) www.reuters.com time to read: +5 min

U.S. two-year Treasury yields skidded below 4.80% on Friday for the first time since September 1, with 10-year yields dropping under 4.40% to September lows too. Crude has now lost almost 25% in just six weeks - aided by the U.S. gradually lifting oil sanctions on Venezuela. The Labor Department said import prices fell a whopping 0.8% in October, the most in seven months amid a broad decline in the costs of goods - deepening the annual deflation of import prices to as much as 2.0%. Even though the dollar (.DXY), , is taking a hit from the plunge in U.S. Treasury yields, the drop in sovereign borrowing rates was mirrored across the world in Europe , even Japan . Mirroring the softening demand picture elsewhere, British retail sales volumes fell unexpectedly in October as stretched consumers stayed at home.

Persons: Lucas Jackson, Mike Dolan, plumb, Morgan, Susan Collins, Mary Daly, Austan Goolsbee, Michael Barr, Dave Ramsden, Nick Macfie Organizations: New York Stock Exchange, REUTERS, Walmart, Cisco, Alibaba, Philadelphia Federal Reserve, Labor Department, Treasury, Hong, Housing, Atlanta, Boston Federal, San Francisco Fed, Chicago Fed, Bank of England, United States, APEC, Graphics, Thomson, Reuters Locations: New York, U.S, Wall, Alibaba ., Venezuela, Europe, Japan, HK, Hong Kong, China, San Francisco

☆ Morning Bid: Oil slide, Walmart stoke disinflation speculation
▼ + stars: | 2023-11-17 | by ( Wayne Cole | ) www.reuters.com time to read: +2 min

Oil, miniatures of oil barrels and U.S. dollar banknote are seen in this illustration taken, June 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsNov 17 (Reuters) - A look at the day ahead in European and global markets from Wayne Cole. Asia has been in a contemplative mood so far on Friday after another week of wild swings in bonds, equities and commodities. The market now implies 98 basis points of cuts next year, compared with 73 basis points a week ago. U.S. data on housing starts for OctBy Wayne Cole; Editing by Muralikumar AnantharamanOur Standards: The Thomson Reuters Trust Principles.

Persons: Dado Ruvic, Wayne Cole, Brent, Christine Lagarde, De Cos, BoE's Greene, Ramsden, Barr, Daly, Collins, Muralikumar Organizations: REUTERS, Walmart, Federal Reserve, Westpac, EU, Thomson Locations: Wayne, Asia, Ukraine, Goolsbee .

☆ Morning Bid: Ebbing oil sustains economic glow
▼ + stars: | 2023-11-16 | by ( ) www.reuters.com time to read: +6 min

Word "Oil" and stock graph are seen through magnifier displayed in this illustration taken September 4, 2022. That drop, which takes annual producer price inflation as low as 1.3%, was driven largely by falling gasoline prices. And that meets news that China's oil refinery throughput fell back in October as industrial fuel demand weakened. The overall energy and inflation picture is helping buoy consumption and stokes the 'soft landing' narrative investors are betting on. The picture in overseas markets, where the economic picture is cloudier, was more mixed.

Persons: magnifier, Dado Ruvic, Mike Dolan, stokes, Mary Daly, Joe Biden, Xi Jinping, Xi, Biden, Washington, Christopher Waller, Lisa Cook, John Williams, Michael Barr, Loretta Mester, Christine Lagarde, Luis de Guindos, Andrea Enria, Dave Ramsden, Andres Manuel Lopez Obrador, Alexander Smith Organizations: REUTERS, U.S . Energy Information Administration, Walmart, Federal, San Francisco Fed, Treasury, U.S . Senate, Philadelphia Fed, Kansas City Fed, Applied, Ross Stores, Federal Reserve, Lisa Cook , New York Fed, Cleveland Fed, European Central Bank, Bank of England, New York Federal Reserve, Insider Intelligence, Reuters Graphics, Thomson, Reuters Locations: U.S, United States, China . U.S, Target, San Francisco, Taiwan, China, Kansas, Treasuries, Lisa Cook , New, Franciso, Reuters Graphics China

☆ BoE's Ramsden: UK interest rates to stay high for extended time
▼ + stars: | 2023-11-16 | by ( ) www.reuters.com time to read: +2 min

LONDON, Nov 16 (Reuters) - The Bank of England is likely to need to keep interest rates high for an extended period, Deputy Governor Dave Ramsden said on Thursday, sticking close to the central bank's existing language on the topic. Ramsden voted with the majority on the Monetary Policy Committee (MPC) this month to keep interest rates on hold at a 15-year high of 5.25%. "Monetary policy is likely to need to be restrictive for an extended period of time," Ramsden said in prepared remarks for the European Systemic Risk Board's annual conference. "The MPC have communicated that monetary policy will need to be sufficiently restrictive for sufficiently long to return inflation to the 2% target sustainably in the medium term," he added. The BoE currently holds 748 billion pounds ($931 billion) of gilts, down from a peak of 875 billion pounds in December 2021, and committed to reduce its stockpile by 100 billion pounds between October 2023 and September 2024.

Persons: Dave Ramsden, Ramsden, BoE, David Milliken, Sachin Ravikumar, Kylie MacLellan Organizations: Bank of England, Monetary, Financial, Thomson

"This quarter is all about higher interest rates for longer," said Mike Mayo, an analyst at Wells Fargo. "There is a constructive environment, and investment banking fees tend to be higher through the end of the year," said Jason Goldberg, a banking analyst at Barclays. Despite the renewed optimism, investment banking activity remains depressed. As rates rise, bond prices fall, representing losses on paper that would be realized if the banks sold the bonds. More broadly, "we're back into this environment where investors think interest rates are going to remain higher for longer," he said.

Persons: JP Morgan Chase, Mike Segar, JPMorgan Chase, Goldman Sachs, Morgan Stanley's, Mike Mayo, Ebrahim Poonawala, Jason Goldberg, Richard Ramsden, James Demmert, Ramsden, Tatiana Bautzer, Saeed Azhar, Lananh Nguyen, Nick Zieminski 私 Organizations: JP, Co, REUTERS, JPMorgan, Citigroup, Wells, Bank of America, Federal Reserve, Wall Street, SoftBank's Arm Holdings, Barclays, U.S, Treasury, Valley Bank, Federal Deposit Insurance Corporation, Reuters, Street Research Locations: New York, Wells Fargo, dealmaking, Israel, Bengaluru

☆ Bank of England bond sales creating a 'selling gold at the bottom' moment, strategist says
▼ + stars: | 2023-09-11 | by ( Elliot Smith | ) www.cnbc.com time to read: +5 min

People walk outside the Bank of England in the City of London financial district, in London, Britain, January 26, 2023. Henry Nicholls | ReutersLONDON — The Bank of England's rapid pace of bond sales is creating a "selling gold at the bottom" moment for investors, according to Christopher Mahon, head of dynamic real return at Columbia Threadneedle. Now, despite the fact that the value of gilts has fallen dramatically since then, the central bank is unwinding those holdings, and fast. In late July, the central bank estimated that it would require the Treasury to indemnify £150 billion ($189 billion) of losses on its asset purchase facility (APF). The Bank of England, for its part, disputes that the asset sales are affecting markets in any substantive way.

Persons: Henry Nicholls, Christopher Mahon, Mahon, BOE, it's, Dave Ramsden, Ramsden Organizations: Bank of England, Reuters LONDON, Columbia, U.K . Treasury, Treasury, U.S . Federal Reserve, European Central Bank, Bank, U.K, . Bank of England, CNBC, Monetary, BNP Locations: City, London, Britain

By increasing the degree of risk attributed to certain assets, the proposed rules would require banks to hold proportionately more capital, potentially eating into returns on equity and profits. Making such lending more expensive will shrink credit available to historically under-served borrowers, something the industry is likely to fight, he said. Chen Xu, an attorney in the financial institutions group at Debevoise & Plimpton, said the new rules viewed high-revenue business lines as higher risk. Morgan Stanley (MS.N) analysts say the largest banks may take up to four years to set aside profits to comply with the new capital rules. Dennis Kelleher, head of the financial reform advocacy group Better Markets, said the banking industry had made similar complaints in the past which he believed had proven unfounded.

Persons: Mike Segar, Joe Saas, Chen Xu, Plimpton, Michael Barr, JPMorgan Chase, Jamie Dimon, Wells Fargo, Kevin Stein, Morgan Stanley, Richard Ramsden, Goldman Sachs, Ramsden, Dennis Kelleher, Douglas Gillison, Tatiana Bautzer, Nupur Anand, Saeed Azhar, Megan Davies, Anna Driver Organizations: Wall, New York Stock Exchange, REUTERS, Industry, Financial Services, Bank Policy Institute, Securities Industry, Financial Markets Association, Debevoise, JPMorgan, CNBC, Citigroup, Bank of America, Klaros Group, Banking Supervision, Better, Thomson Locations: Manhattan, New York City , New York, U.S, Washington, Wells, Basel

☆ Bank of England set to raise rates for 14th time in a row
▼ + stars: | 2023-08-02 | by ( David Milliken | ) www.reuters.com time to read: +4 min

A pedestrian carrying an umbrella walks near the Bank of England in the City of London, Britain, July 30, 2023. Market expectations for peak Bank Rate reached 6.5% on July 11 after data showed record wage growth before falling back to 5.75% after a sharp decline in consumer price inflation. Investors see a two-in-three chance of the BoE raising Bank Rate to 5.25% on Thursday but for most economists polled by Reuters the BoE's decision is finely balanced. However, some BoE critics argue it risks causing an unnecessary downturn, and that higher rates are a poor tool to tackle inflation caused by higher food and energy prices. "The main winners are banks, whose profits have flourished thanks to higher rates," said Fran Boait, co-executive director of campaign group Positive Money.

Persons: Hollie Adams, Bailey, BoE, Rishi Sunak, James Smith, Smith, Andrew Bailey, Dave Ramsden, Swati Dhingra, Silvana Tenreyro, Megan Greene, Fran Boait, ING's Smith, David Milliken, William Schomberg, Giles Elgood Organizations: Bank of England, City of, REUTERS, U.S . Federal Reserve, European Central Bank, Mortgage, Investors, Reuters, ING, Kroll Institute, Monetary, Thomson Locations: City, City of London, Britain, Germany

☆ Bank of England set to raise rates to 5.25% as high inflation persists
▼ + stars: | 2023-07-28 | by ( David Milliken | ) www.reuters.com time to read: +5 min

Expectations for peak BoE rates reached 6.5% on July 11 after data showed record wage growth. But they fell back after a bigger-than-expected decline in consumer price inflation. Still, that inflation rate is nearly four times the BoE's 2% target and double the rate in the United States. Following the end of Silvana Tenreyro's tenure on the BoE's Monetary Policy Committee, fellow external member Swati Dhingra is likely to be alone in making the case that producer price inflation - rather than wage growth - is a better guide to future consumer price inflation trends. Annual producer price inflation fell to 0.1% in June, its lowest since December 2020, down from a high of nearly 20% last July, which it hit just a few months before CPI peaked at 11.1%.

Persons: BoE, Andrew Goodwin, BoE Governor Andrew Bailey, Dave Ramsden, Ramsden, Peter Schaffrik, Cathal Kennedy, Silvana Tenreyro's, Swati Dhingra, Megan Greene, Bailey, Huw Pill, David Milliken, Kirsten Donovan Organizations: Bank of England, U.S . Federal Reserve, European Central Bank, Oxford Economics, Reuters, MPC, HSBC, RBC, Committee, Kroll Institute, Tenreyro, Monetary, Thomson Locations: Britain, United States, Germany

But management of central bank balance sheets could help - even if central bankers are keen to publicly disassociate the process from monetary policy goals per se. But the U.S. central bank can be more comfortable nearing peak rates with inflation much closer to target than Europe's central banks - where future trade-offs may be more tempting. G3 central bank balance sheetsFed share of Treasury marketReuters GraphicsBACKGROUND NOISE? Ramsden laced his comments with caution about not confusing the run-down of the BoE's "asset purchase facility" with its central policy task. And they reckoned an increase in the volume of QT should theoretically lead to higher term premia in euro bond markets.

Persons: Dave Ramsden, BoE, Ramsden, there's, Mike Dolan, Paul Simao Organizations: Federal Reserve, Treasury, Bank of England, European Central Bank, Deutsche Bank, Reuters, Twitter, Thomson Locations: U.S

☆ Morning Bid: Britain's CPI the next frontier
▼ + stars: | 2023-07-19 | by ( ) www.reuters.com time to read: +2 min

A tentative rally in gilts is poised to extend and sterling could probably say goodbye to the strong side of $1.30. Forecasts put Britain's annual CPI falling to 8.2% in June and core holding at 7.1%. New Zealand sounded a warning in the Asia session, with food prices keeping annual headline inflation higher than expected at 6%. Netflix (NFLX.O), Tesla (TSLA.O) and Goldman Sachs (GS.N) report results later in the day. Key developments that could influence markets on Wednesday:Data: British CPI, Euro zone final CPI, U.S. housing startsSpeakers: Bank of England's Dave RamsdenEarnings: Netflix, Tesla, Goldman SachsReporting by Tom Westbrook; Editing by Muralikumar AnantharamanOur Standards: The Thomson Reuters Trust Principles.

Persons: Tom Westbrook, BoE, Goldman Sachs, Morgan Stanley, Bank of England's Dave Ramsden, Muralikumar Organizations: Bank of, Traders, U.S, Netflix, Microsoft, CPI, Bank of England's, Tesla, Thomson Locations: U.S, Canada, gilts, New Zealand, Asia

☆ Quantitative tightening: What happens when $2 trillion is sucked out of the global economy
▼ + stars: | 2023-05-19 | by ( Julia Horowitz | ) edition.cnn.com time to read: +7 min

“Quantitative tightening,” or QT, by top central banks will suck $2 trillion in liquidity out of the financial system over the next two years, according to a recent analysis by Fitch Ratings. Investors and banks calibrate their strategies to the amount of money in the financial system, he noted. Then, central banks started withdrawing liquidity from the financial system. Even worse, many banks have large holes on their balance sheets because central banks have simultaneously jacked up interest rates. While government debt levels have skyrocketed in recent years, the cost of servicing that debt has been tamped down by the willingness of central banks to buy large chunks of it.

☆ Bank of England policymakers consider 12th straight rate hike
▼ + stars: | 2023-05-02 | by ( ) www.reuters.com time to read: +3 min

LONDON, May 2 (Reuters) - The Bank of England is weighing up whether to raise interest rates for the 12th meeting in a row next week as it continues to grapple with an inflation rate that remains above 10%, higher than in any other big, rich economy. Following is a summary of recent comments by members of the Monetary Policy Committee. If they become evident, further monetary tightening would be required. JON CUNLIFFE, DEPUTY GOVERNORHas not commented on monetary policy in recent months. MPC MEMBERS WHO VOTED IN MARCH TO STOP RAISING RATESSILVANA TENREYRO, EXTERNAL MPC MEMBERApril 14: "We need to be patient (to see the effects of past rate increases).

☆ Bank of England must 'stay the course', deputy governor Ramsden says
▼ + stars: | 2023-04-21 | by ( David Milliken | ) www.reuters.com time to read: +2 min

LONDON, April 21 (Reuters) - The Bank of England needs to focus on tightening monetary policy sufficiently to control inflation, and ensuring that no "inflationary mentality" develops, Bank of England Deputy Governor Dave Ramsden said in an interview published on Friday. However, in recent months two members of the BoE's Monetary Policy Committee have voted against further rate rises, arguing that the economy has yet to feel much of the impact of past increases. Ramsden, who is responsible for financial markets and banking, said the BoE remained "very vigilant" about market risks after the collapse of Silicon Valley Bank and Credit Suisse. Echoing comments from Governor Andrew Bailey, he also said that it was important for the BoE to look at Britain's system of deposit insurance. And then the question is how much do you pay for it up front by funding deposit insurance, and who does that funding."

☆ Bank of England says it is on alert after turmoil in banking sector
▼ + stars: | 2023-03-28 | by ( ) www.reuters.com time to read: +1 min

LONDON, March 28 (Reuters) - Top Bank of England officials said on Tuesday the central bank was on alert amid global turmoil in the banking sector but they also said Britain was not experiencing stress linked to the demise of Silicon Valley Bank and Credit Suisse. "I don't think that any, and we've said this, that any of these features cause stress in the UK banking system," BoE Governor Andrew Bailey told parliament's Treasury Committee. "This is why we have to remain incredibly vigilant," Deputy BoE Governor Dave Ramsden said. "We'll keep a close eye on bank funding costs, what the consequences of those could be for households and businesses, equally looking out for other risk factors, we have to remain incredibly vigilant." Bailey said the recent swings in the share prices of some banks showed investors were testing the sector.

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