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☆ Big banks are touting sweet CD yields in excess of 5%. Where you can find them
▼ + stars: | 2024-04-22 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

"From our experience, the brokered CD market is more competitive," said Richard Carter, vice president of fixed income products and services at Fidelity. Like traditional CDs, brokered CDs are offered in different maturities. For instance, JPMorgan's one-year CD, with its 5.4% yield, can be called as early as Oct. 30, according to Fidelity's website. With a brokered CD, you'll have to sell it on the secondary market — and you may lose some of your principal. Depending on your time frame, you may consider a one-year ladder with CD maturities three months apart, a two-year ladder with CD maturities six months apart, or a five-year ladder, with maturities one year apart, he said.

Persons: Goldman Sachs, Morgan Stanley, Schwab, Richard Carter, Carter, you'll, there's, Morgan, Greg McBride, It's, McBride, staggers maturities Organizations: JPMorgan, Fidelity Investments, Bank of America, Fidelity, Vanguard, Federal Deposit Insurance Corp, Morgan Stanley Private Bank and Bank of America Locations: U.S

☆ UK inches closer to technical recession as growth is revised down
▼ + stars: | 2023-12-22 | by ( Karen Gilchrist | ) www.cnbc.com time to read: +2 min

Data due out in February will show whether the U.K. has entered a technical recession — defined as when the economy shrinks for two consecutive quarters. There was also zero growth in the prior three months, the new figures showed, down from the 0.2% growth previously calculated. LONDON — The U.K. is edging closer to recession after revised figures showed the economy shrank in the previous quarter. Certainly, Rishi Sunak's pledge to grow the economy is now severely in doubt," he said. A near-term drop in interest rates would be a win for Sunak's government, as the U.K. enters an election year.

Persons: Jeremy Hunt, Richard Carter, Cheviot, Rishi Sunak's, Rishi Sunak, Downing, Andrew Bailey Organizations: Office, National Statistics, LONDON, Bank of England

☆ Don't let the tax break drive your search for munis. How to find the right fit for your portfolio
▼ + stars: | 2023-09-14 | by ( Michelle Fox | ) www.cnbc.com time to read: +5 min

Income investors love municipal bonds for their tax advantages, but they may not necessarily be making the best choice for their portfolio. The interest earned on munis is generally exempt from federal income tax and, in some cases, state tax. That means a muni bond yielding 3.7% can reach over 6% on a tax-adjusted basis for those in the highest tax bracket. For instance, if muni bonds are yielding 3% and Treasurys are at 4%, the answer is 0.75. "If your tax rate is above that number, you should buy munis," Pate said.

Persons: Richard Carter, Brian Barney, Fidelity's Carter, Wesly Pate, muni, " Pate, Carter, Paul Malloy, Pate, Barney, Research's Pate Organizations: Fidelity, Management, Vanguard Locations: munis, muni, Boston

☆ What Is a Money Market Fund?
▼ + stars: | 2023-04-04 | by ( ) www.wsj.com time to read: +11 min

“Money market funds have become a much more interesting place,” says Jay McLaughlin, institutional sales manager for iMoneyNet, a research firm that follows the money market fund industry. How money market funds workThe first thing for investors to understand is that money market funds are mutual funds, not bank accounts. Municipal money market fundsMunicipal money market funds appeal to many high-income investors because of their tax-exempt nature. One popular muni money market fund is the $17 billion Vanguard Municipal money market Fund (VMSXX) and its current 7-day yield of 2.65%—a yield which on its face is lower than other fund types, but after taxes are considered, can actually be higher for some investors. How to get the best money market fund ratesTypically your stock trading platform may have a default money market fund for its clients, established at your initial sign-up, as a kind of placeholder to keep your cash.

The BoE is due to announce on Thursday whether it has raised interest rates for an 11th meeting in a row. The annual inflation rate in the services sector, which most policymakers consider is a good measure of underlying price pressures in the economy, rose to 6.6% after standing at 6.0% in January. Finance minister Jeremy Hunt said the data showed the expected decline in inflation could not be taken for granted. "Falling inflation isn't inevitable, so we need to stick to our plan to halve it this year," Hunt said in a statement. Reporting by David Milliken and William Schomberg, editing by William JamesOur Standards: The Thomson Reuters Trust Principles.

☆ UK inflation rate breaks 3-month stretch of declines with surprise rise to 10.4%
▼ + stars: | 2023-03-22 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

U.K. inflation unexpectedly jumped in February, as food and energy bills continued to rise, placing further pressure on households. The consumer price index (CPI) increased by an annual 10.4%, above the 9.9% consensus forecast among economists in a Refinitiv poll and up from 10.1% in January. On a monthly basis, CPI inflation was 1.1%, exceeding a forecast of 0.6%. The surprise increase in February marked a break from three consecutive months of slowing price increases since the 41-year high of 11.1% reached in October. Last week, the independent Office for Budget Responsibility projected that U.K. inflation would plummet to 2.9% by the end of 2023 — a forecast Carter said was "increasingly ambitious" in light of the Wednesday print.

☆ A 'cocktail' of sticky inflation and a tight labor market boosts Bank of England rate hike bets
▼ + stars: | 2023-02-16 | by ( Elliot Smith | ) www.cnbc.com time to read: +3 min

Andrew Bailey, Governor of the Bank of England, attends the Bank of England Monetary Policy Report Press Conference, at the Bank of England, London, Britain, February 2, 2023. Pool | ReutersLONDON — A tight labor market and comparatively slow return to earth for inflation means the Bank of England is likely to press ahead with a further interest rate hike in March, economists suggest. "However food prices remain a major driver of U.K. inflation, continuing their upwards march in January with an eye-watering 16.8% increase. Bank of England Governor Andrew Bailey last week urged workers and employers to consider the expected downward inflation trajectory when negotiating pay settlements. "The cocktail of a tight labour market and inflation failing to cool off quickly will remain a cause of concern for Bank of England policymakers, which may mean the Bank's aggressive strategy stays in place," Carter added.

☆ European markets open lower as investors assess monetary policy outlook
▼ + stars: | 2023-02-10 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

The Bank of England last week forecast that the British economy would enter a shallow five-quarter recession in the first quarter of 2023. The U.K. economy posted zero growth for the fourth quarter of 2023, according to preliminary figures from the Office for National Statistics. In December, however, gross domestic product shrank by a larger-than-expected 0.5% month on month after two months of unexpected growth. The Bank of England last week forecast that the British economy would enter a shallow five-quarter recession in the first quarter of 2023. "We are still likely to be in a recession at some point during 2023 – which is still expected to be long and shallow - so these figures do not provide a huge amount of comfort."

☆ UK narrowly avoids recession in back half of 2022 despite December slump
▼ + stars: | 2023-02-10 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

The U.K. economy showed no growth in the final quarter of 2022, but shrunk by 0.5% in December, more than expected by analysts, according to the country's Office for National Statistics Friday. The figures mean the country narrowly avoided a recession — commonly defined as two quarters of negative growth — following a 0.2% contraction in the third quarter. Overall, GDP increased by an estimated 4% over the course of 2022, following a 7.6% expansion in 2021 as the economy rebounded from the Covid-19 pandemic. The Bank of England last week forecast that the British economy would enter a shallow five-quarter recession in the first quarter of 2023. "We are still likely to be in a recession at some point during 2023 — which is still expected to be long and shallow - so these figures do not provide a huge amount of comfort."

☆ UK inflation falls from 41-year high as fuel price surge eases
▼ + stars: | 2022-12-14 | by ( Elliot Smith | ) www.cnbc.com time to read: +4 min

Brexit has added more than £200 to the average U.K. household food bill, according to a new study from the London School of Economics. LONDON — U.K. inflation came in slightly below expectations at 10.7% in November, as cooling fuel prices helped ease price pressures, though high food and energy prices continued to squeeze households and businesses. However, Carter suggested inflation may finally be passing its peak, after the U.S. also posted a better-than-expected CPI print on Tuesday. The market is pricing a 50 basis point interest rate hike from the Bank on Thursday, taking the benchmark rate to 3.5%. However, inflation remains well above target.

☆ VIEW Bank of England lifts UK rates to 3% in historic hike
▼ + stars: | 2022-11-03 | by ( ) www.reuters.com time to read: +5 min

REUTERS/Toby MelvilleLONDON, Nov 3 (Reuters) - The Bank of England raised UK interest rates to 3% on Thursday in its largest rate hike since 1989 and warned of a "very challenging outlook" for the economy. Money markets showed traders now expect UK rates to peak at 4.6% by next September, compared to expectations of 4.8% just two days ago. UK bank stocks (.FTNMX301010) fell 0.8%BONDS: Yields on the two-year gilt were last up 1 basis points at 3.041%, compared with 3.064% before the BoE announced its decision. Rates markets are pricing another 50bps hike at each of the December and February meetings, although still reflect a lower terminal rate than just a week ago. ANDREW ALDRIDGE, PARTNER AT DEEPBRIDGE CAPITAL, LONDON"Quelling rampant inflation and kickstarting a slowing economy left the Bank facing a difficult balancing act, with today's interest rate hike to 3% hardly surprising in this context.

The blue-chip FTSE 100 index (.FTSE) ended 0.9% higher, while the domestically focussed FTSE 250 index (.FTMC) closed 2.8% up. Both the indexes logged their third-straight day of gains, with the latter up more than 5%. Under the new policy, most of Truss's 45 billion pounds of unfunded tax cuts will go and a two-year energy support scheme for households and businesses - expected to cost well over 100 billion pounds - will now be curtailed in April. Register now for FREE unlimited access to Reuters.com RegisterHunt, who replaced Kwasi Kwarteng, said halting the planned tax cuts would raise 32 billion pounds ($36 billion) every year. Traders are now seeing a 68.2% chance of a 100 basis points hike at the central bank's Nov. 3 meeting.

☆ Market rout has muni bonds looking attractive. How to add them to your portfolio
▼ + stars: | 2022-09-25 | by ( Michelle Fox | ) www.cnbc.com time to read: +7 min

"Uncertainty around how high interest rates will go has driven redemptions in muni bond funds," he explained. Whenever we have a chance to add to muni bonds now, we do so." For instance, you can go to Fidelity Investments' website and access more than 50,000 municipal bonds as new issues or through dealers on the secondary market. Here are five Morningstar five-star rated muni bond funds. "Many closed-end bond funds are trading at prices that are below their net asset value," he said.

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