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☆ Bank of England holds interest rates steady, but signals a cut is coming
▼ + stars: | 2024-05-09 | by ( Jenni Reid | ) www.cnbc.com time to read: +1 min

LONDON — The Bank of England on Thursday announced a widely-expected hold on interest rates following its May meeting, as it said restrictive monetary policy was working to bring down inflation. Members of the central bank's Monetary Policy Committee voted 7-2 to hold, with the latter favoring a cut. In the prior meeting only one member voted for a cut. It keeps the BOE's key Bank Rate at 5.25%. Some economists see a cut as soon as the next meeting in June, and three or more cuts in 2024.

Persons: Matthew Swannell, CNBC's Organizations: Bank of England, Monetary, MPC, BNP

☆ Stock market today: Indexes mixed as jobless claims jump to highest since August
▼ + stars: | 2024-05-09 | by ( Yuheng Zhan | ) www.businessinsider.com time to read: +2 min

Initial claims climbed to 231,000 last week, marking the highest level since August. A handful of disappointing earnings results have come at the tail end of an otherwise upbeat season. AdvertisementMajor stock indexes were mixed on Thursday as traders mulled a fresh job report that showed the labor market cooling. A handful of disappointing earnings reports have capped off what's otherwise been a fairly upbeat earnings season. Markets will be tuned into more Fed speakers Thursday and Friday.

Persons: Stocks, —, Mary Daly, Michelle Bowman Organizations: Service, Federal Reserve, Treasury, Labor Department, Dow Jones, Warner Bros, San Francisco Fed, Dow, Nasdaq Locations: Here's

☆ A Former Guantánamo Prisoner’s New Life
▼ + stars: | 2024-05-09 | by ( Carol Rosenberg | Natalie Keyssar | ) www.nytimes.com time to read: +1 min

On the 15th night of Ramadan in a suburb of Belize City, Majid Khan and his family of four sat down for a traditional iftar meal to break the daylight hours fast. There was a leg of a lamb that Majid, a former Guantánamo detainee, had slaughtered himself, sweets brought by a sister in Maryland, dates from Saudi Arabia. The talk was small, about whether the biryani dish was too spicy and how the lamb was perfectly roasted. For two decades, this family meal was not possible. He pleaded guilty and became a government cooperator — and, all that time, his wife waited for him in Pakistan.

Persons: Majid Khan, Majid, Hamza, Rabia, Manaal, Khan, — Organizations: Central Locations: Belize City, Maryland, Saudi Arabia, Central American, Al Qaeda, Belize, Indonesia, United States, Guantánamo, Pakistan

☆ Weekly jobless claims rise to highest level since August
▼ + stars: | 2024-05-09 | by ( Lucy Bayly | ) edition.cnn.com time to read: +2 min

New York CNN —First-time applications for unemployment benefits rose last week to 231,000, the highest level since August, in another sign that the white-hot labor market is starting to cool off. Thursday’s data also showed that the number of continuing claims, or applications from people who have filed for unemployment for at least one week, was 1.78 million. That’s an increase of 17,000 from the prior week, according to the Bureau of Labor Statistics. Although the unemployment rate ticked up to 3.9% last month, it’s the 27th consecutive month that the jobless rate has held under 4%, matching a streak last seen in the late 1960s. The Federal Reserve has been battling inflation by raising its key lending rate in the hopes of slowing the economy.

Persons: ”, Chris Rupkey, Jerome Powell, ” Ian Shepherdson, It’s Organizations: New, New York CNN, Bureau of Labor Statistics, “, Federal Reserve, Pantheon Economics Locations: New York, Fwdbonds

☆ European markets head for higher open; BoE rate decision ahead
▼ + stars: | 2024-05-09 | by ( Holly Ellyatt | ) www.cnbc.com time to read: 1 min

European markets are heading for a higher open Thursday, maintaining positive momentum in a busy week of earnings. Ferrovial, Telefonica, EDP, Enel, Pirelli and Salvatore Ferragamo are all due to report today. Elsewhere, the Bank of England is set to publish its latest interest rate decision Thursday. China stocks rose overnight as its imports surged past estimates and exports rose in line with expectations, while the broader Asia-Pacific market was mixed. Meanwhile, futures linked to the Dow Jones Industrial Average hovered near the flatline Wednesday evening after the 30-stock index posted its sixth consecutive winning day.

Persons: Salvatore Ferragamo, it's Organizations: Ferrovial, Telefonica, EDP, Enel, Pirelli, Bank of England, Dow Jones Locations: China, Asia, Pacific

☆ Qu Jing: Baidu’s PR chief sparks a PR nightmare for the Chinese tech giant
▼ + stars: | 2024-05-09 | by ( Nectar Gan | ) edition.cnn.com time to read: +7 min

Hong Kong CNN —Chinese search engine giant Baidu has found itself in a public relations crisis, thanks to its own PR chief. Qu, Baidu's vice president and head of communications, has sparked backlash over her comments endorsing a tough workplace culture. China’s young workers have increasingly spoken out against the harsh workplace culture that has come to dominate many industries. Qu had asked all members of the PR team to create their personal accounts, according to the person, who requested anonymity. A former Baidu employee said Qu brought Huawei’s aggressive corporate culture with her to Baidu.

Persons: Qu Jing, Qu, I’m, ” Qu, “, ”, Jing, China’s, Ivy Yang, ” Yang, Alibaba, Jack Ma, Ma, Baidu, Cristina Organizations: Hong Kong CNN, Baidu, Xinhua, Huawei, CNN Locations: China, Hong Kong, Weibo

☆ In Budapest, Xi Hails a ‘Deep Friendship’ With Hungary
▼ + stars: | 2024-05-09 | by ( Andrew Higgins | ) www.nytimes.com time to read: +1 min

President Xi Jinping of China on Thursday found another safe zone in a continent increasingly wary of his country, meeting in Budapest with the Hungarian prime minister, Viktor Orban, the European Union’s perennial odd-man-out as a vocal supporter of warm relations with both China and Russia. As happened at his previous stop in Serbia, Mr. Xi received a rapturous welcome and was spared from protesters, with his motorcade from the airport on Wednesday evening taking a roundabout route into the Hungarian capital, avoiding Tibetan protesters. Police banned a protest planned for Thursday in the center of Budapest and a large Tibetan flag that had been hoisted on a hill overlooking the venue of a welcome reception was covered with a Chinese one. In an article in Magyar Nemzet, which is controlled by Mr. Orban’s governing Fidesz party, Mr. Xi gushed about his “deep friendship” with Hungarian leaders and described Hungary as a trusted “traveling companion” on what he called a “golden voyage” that had taken relations to their “best period of history.” Hungary, he noted, was “the No. 1 target in the central Eastern European region for Chinese investment.”

Persons: Xi Jinping, Viktor Orban, Xi, Orban’s, Xi gushed, ” Organizations: Police, Fidesz, ” Locations: China, Budapest, Russia, Serbia, Magyar, Hungary, ” Hungary

☆ 'It's our duty': Bank of England chief says cutting rates just before a UK election wouldn't be an issue
▼ + stars: | 2024-05-09 | by ( Matt Clinch | ) www.cnbc.com time to read: +1 min

Bank of England Governor Andrew Bailey addresses the media during the central bank's Monetary Policy Report press conference at the Bank of England, in London, Britain, on February 1, 2024. LONDON — Bank of England Governor Andrew Bailey on Thursday played down any political pressure received by his institution, confirming that a rate cut immediately before a General Election wouldn't be out of the question. This is especially true in election cycles if citizens are dealing with an economic downturn or a cost-of-living squeeze. The Bank of England, which became officially independent in 1998, is no stranger to this pressure with elections expected before the end of this year. The Bank is nearing its first rate cut since 2020, despite holding steady on Thursday.

Persons: Andrew Bailey, wouldn't, Bailey, CNBC's Steve Sedgwick, it's Organizations: England, Bank of England, LONDON — Bank of England Locations: London, Britain

☆ Japan not seeking a strong yen but a stable currency, David Roche says
▼ + stars: | 2024-05-09 | by ( Sumathi Bala | ) www.cnbc.com time to read: +2 min

Japan is not seeking a strong yen but rather aiming for a relatively stable currency, according to veteran investor David Roche. The Japanese yen has been on a roller coaster ride, with the currency breaking past 160 against the greenback last week — steepest decline in more than three decades. "The Japanese are not aiming at a particularly strong yen. Japan could not "possibly speak to have policy that really results in a strong yen unless they tighten monetary policy," Roche said, adding that it would involve raising interest rates by at least 50 basis points and allowing "unsterilized intervention" of the yen. As far as I can see from the statistics, they've [Bank of Japan] done nothing like that," Roche noted.

Persons: David Roche, Roche, CNBC's Organizations: greenback, Independent, Bank of Japan, Bank of Locations: Japan, Bank of Japan

It turns out that a long pause between Federal Reserve rate actions is historically good for stocks, according to LPL Financial. The pause, which has reached 280 days, is the second-longest in modern market history, LPL noted, behind only the 2006-07 pause that reached 446 days. "Long pauses are typically good for stocks, and the gains achieved since the Fed's last hike in July 2023 are consistent with recent history," said Jeff Buchbinder, chief equity strategist at LPL Financial. "The pace and rise of the S & P 500 during that time are in line with what we are seeing now." Still, the strategist observed that the sectors that have historically outperformed during long pauses are financials and energy, which generally return 15% for the period.

Persons: LPL, Jeff Buchbinder, Buchbinder Organizations: Financial, Investors, LPL

☆ Prices have surged so much in Argentina that the government will print 10,000 peso notes
▼ + stars: | 2024-05-09 | by ( Yuheng Zhan | ) www.businessinsider.com time to read: +2 min

Astronomic inflation in Argentina has caused the government to higher denominations of the country's peso. The central bank next month will issue a 10,000 peso note, worth about $11 based on Thursday's exchange rate. AdvertisementInflation is so bad in Argentina that the central bank will issue 10,000 peso notes to relieve people from the burden of having to haul bags of cash around for day-to-day needs. The note, worth about $11 based on Thursday exchange rates, tops the 2,000 peso note as the country's biggest bill. Meanwhile, the central bank also announced that it will launch a larger bill — a 20,000-peso note — later this year.

Persons: —, Javier Milei Organizations: Service, Associated Press Locations: Argentina

☆ For Bulgarian Voters, It’s Groundhog Day, Again
▼ + stars: | 2024-05-08 | by ( Andrew Higgins | ) www.nytimes.com time to read: +1 min

For citizens of the United States, Britain, India and dozens of other countries around the world, 2024 is a big, high-stakes election year. For Dimitar Naydenov, a Bulgarian member of Parliament and restaurant owner, it offers only yet another Groundhog Day: Bulgaria in June holds its sixth general election in three years with a vote for a new Parliament. The total number of elections in those years is even higher — eight — if those for president and European Parliament are included. “I’ve done this so many times people have started to feel pity for me,” he said. But pity Bulgarian voters, too.

Persons: Dimitar Naydenov, “, Mr, Naydenov, shuddering, ” Locations: United States, Britain, India, Bulgarian, Bulgaria, Burgas

☆ Treasury yields inch higher as investors weigh interest rate outlook
▼ + stars: | 2024-05-08 | by ( Sophie Kiderlin | In | ) www.cnbc.com time to read: +1 min

Yields and prices have an inverted relationship and one basis point equals 0.01%. ET the yield on the 10-year Treasury was up by more than 1 basis point at 4.479%. U.S. Treasury yields were slightly higher Wednesday as investors weighed the latest remarks from Federal Reserve officials, looking for clues on the path ahead for interest rates. Last week, Fed Chair Jerome Powell said the Fed was unlikely to hike rates at its next meeting. More comments from Fed officials are expected throughout the week, which investors will be scanning for hints about the monetary policy outlook.

Persons: Neel Kashkari, Tom Barkin, Jerome Powell Organizations: Treasury, U.S, Federal Reserve, Minneapolis, Richmond Fed

☆ Bankruptcies are spiking as companies lose hope of rate cuts
▼ + stars: | 2024-05-08 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

April saw the highest number of corporate bankruptcies in a year, S&P Global said. Eroding bets of an interest rate cut contribute to this, as burdened business throw in the towel. AdvertisementCorporate bankruptcies increased in recent months amid teetering confidence in a quick interest rate pivot. AdvertisementBy one measure, rising costs did slow when a rate cut looked likely in early 2024. But last month's stubborn inflation and slowing GDP made a Fed cut look unlikely, and yields shot up to 8.11%.

Persons: —, April's, Frances Donald Organizations: P Global, Service, Federal, ICE, Fed, Investment

The dollar was back on the front foot on Wednesday, making modest gains after earlier losses from renewed bets on Federal Reserve rate cuts this year, while the yen eased towards the 155 per dollar level and kept intervention risks from Tokyo high. The dollar was back on the front foot on Wednesday, making modest gains after earlier losses from renewed bets on Federal Reserve rate cuts this year, while the yen eased towards the 155 per dollar level and kept intervention risks from Tokyo high. Analysts have said that any intervention from Tokyo would only serve as a temporary respite for the yen, given stark interest rate differentials between the U.S. and Japan remain. Analysts expect the central bank to leave the door open to lower interest rates as early as June. The Australian dollar fell 0.2% to $0.6585, pressured in part by a less hawkish outlook from the Reserve Bank of Australia than anticipated after it held interest rates steady on Tuesday.

Persons: Kazuo Ueda, Shunichi Suzuki, they'll, Carol Kong, Neel Kashkari, Kashkari, Rodrigo Catril Organizations: Federal, U.S, Bank of Japan, country's Finance, Commonwealth Bank of Australia, New Zealand, greenback, Minneapolis, Minneapolis Fed, National Australia Bank, Bank of, Reserve Bank of Australia Locations: Tokyo, Beijing, Japan, Bank, U.S, Minneapolis

☆ Bank of America says do not sell in May and go away
▼ + stars: | 2024-05-08 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Investors should ignore the adage about selling off equities in May as a big preelection summer rally could be coming, according to Bank of America. "Do not sell in May and go away," Stephen Suttmeier, the firm's technical research strategist, told clients in a Tuesday note. He pointed to the fact that June through August has been the second strongest three-month stretch for the S & P 500 for all years since 1928. In those three months alone, the broad market index has gained 65% of the time with an average return of 3.2%, according to Bank of America data. .SPX YTD mountain S & P 500, YTD And there's a key factor Suttmeier sees changing the narrative for the better this year: the presidential election.

Persons: Stephen Suttmeier, It's, Jerome Powell, Suttmeier, Williams Organizations: Bank of America, Dow Jones, Federal

☆ Siemens Energy changes leadership at embattled wind turbine unit
▼ + stars: | 2024-05-08 | by ( Matt Clinch | ) www.cnbc.com time to read: +1 min

Power-generating Siemens 2.37 megawatt (MW) wind turbines are seen at the Ocotillo Wind Energy Facility California, May 29, 2020. The German renewables firm Siemens Energy announced Wednesday that the CEO of its troubled wind turbine unit will be replaced amid "comprehensive restructuring measures." "In a very difficult situation at Siemens Gamesa, Jochen laid the central foundations for the urgently needed reorganization and new start within Siemens Energy. It is only fair to emphasize that the causes of the quality problems did not fall under his tenure as CEO," said Siemens Energy CEO Christian Bruch in a statement. Siemens Energy suffered a rough 2023.

Persons: Jochen Eickholt, Vinod Philip, Jochen, Christian Bruch, Gamesa Organizations: Energy Facility, Siemens Energy, Siemens Gamesa Locations: Energy Facility California

☆ For US renters, the chance of owning a home is going from bad to worse
▼ + stars: | 2024-05-08 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +7 min

New York CNN —The American dream of homeownership is looking more like a nightmare. With inflation heating up again, the Federal Reserve is in no position to consider lowering interest rates at its upcoming meetings. That’s according to a New York Fed survey gauging consumers’ expectations of the housing market, released Monday. Consumers are gearing up for even bigger increases compared to the expected rise in mortgage rates over the next year, the New York Fed survey found. The issue of rent affordability is particularly pronounced in New York City, where housing costs have always been notoriously high compared to other parts of the country, absent a brief respite during the pandemic.

Persons: That’s, Kenny Lee, Aditya Bhave, Neel Kashkari, Bhave, ” Bhave, “, Perdue “, ”, Read, TikTok, Joe Biden, Brian Fung, Bytedance Organizations: CNN Business, Bell, New York CNN, Federal, New, Fed, Zillow, Bank of America, CNN, Minneapolis, Bloomberg, United States Department of Labor, Seaboard Triumph Foods, Perdue, Labor Department, Seaboard, Labor, Packers Sanitation Services, Appeals, District of Columbia Circuit Locations: New York, New York City, Fayette, DOL, Sioux City , Iowa, Accomac , Virginia, China

CNN —Israel’s attack in the southern Gaza city of Rafah has expanded from airstrikes to ground operations, new satellite images obtained by CNN from Planet Labs show. Satellite images suggest these strikes are continuing, with one picture showing smoke still rising from one location. Palestinians arrive at Al Kuwaiti Hospital in Rafah, Gaza, after Israeli air strikes on May 8. Planet Labs, PBC Satellite images from May 6 and May 7 show damage in Rafah, Gaza. Planet Labs, PBC Satellite images show Rafah, Gaza, before and during an airstrike.

Persons: CNN —, Israel, Tal, Benjamin Netanyahu, Gazans, “, Jens Laerke Organizations: CNN, Planet Labs, Israel Defense Forces, IDF, Al Kuwaiti, Al, PBC, ”, 401st Brigade Combat, Hamas, Food Locations: Gaza, Rafah, Egypt, Al Kuwaiti, Tal Al Sultan, ”, Geneva . Northern Gaza

"The Fed is the central bank most able to chart its own course," Citi economist Andrew Hollenhorst said in a client note Wednesday. It was the first time the Riksbank had cut since 2016 and takes its main policy rate down to 3.75%. The Riksbank's move was the second central bank cut of the year, as the Swiss National Bank reduced its key rate a quarter point in March in what was seen as a surprise action. Reductions from the Bank of England and European Central Bank are expected to come next, possibly within a month. "With the exception of Japan, developed markets are embarking on a program of rate cuts," Hollenhorst said.

Persons: Andrew Hollenhorst, BOE, Mark, Bailey, Citi's Hollenhorst, Christine Lagarde, CNBC's Sara Eisen, Lagarde, Hollenhorst Organizations: U.S . Federal, Citigroup, Citi, Sweden's, Swiss National Bank, Bank of England, European Central Bank, Bank of America Locations: U.S, Japan

☆ Treasury yields fall as investors consider Fed policy path
▼ + stars: | 2024-05-07 | by ( Sophie Kiderlin | In | ) www.cnbc.com time to read: +1 min

The 2-year Treasury yield was last over one basis point lower to 4.8095%. U.S. Treasury yields declined on Tuesday as investors considered the outlook for Federal Reserve monetary policy following the latest economic data and remarks from central bank officials. In recent weeks, expectations have moved toward there being fewer rate cuts in 2024 than previously expected, or even none. Barkin's comments came after a weaker-than-expected April jobs report released at the end of last week had buoyed hopes about rate cuts. More Fed policymakers are slated to make remarks throughout the week, which investors will be watching closely for additional hints about the policy outlook.

Persons: Tom Barkin Organizations: Treasury, U.S, Federal Reserve, Investors, Richmond Federal, Fed

☆ These bond funds offering yields upward of 5% could take off as Fed policy becomes uncertain
▼ + stars: | 2024-05-07 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

That shakiness around when the cuts are coming, as well as the expectation that rates could remain higher for longer creates an opportunity for active managers. Rick Rieder, BlackRock's global chief investment officer of fixed income, told CNBC in a phone interview. Indeed, core bond funds were among the winners in the 2008 crisis. For starters, they should think about the role they want a given bond fund to play within their portfolio: Is it to offset equity risk or to boost returns? "You're not investing in bond funds to shoot the lights out and build your wealth pile," said Morningstar's Jacobson.

Persons: Rick Rieder, Rieder, Eric Jacobson, Morningstar, John Croke ,, Morningstar's Jacobson, Jaime Quinones, they're, Quinones Organizations: Federal Reserve, Barclays, Bank of America, Citigroup, CNBC, Bloomberg, SEC, Morningstar, Vanguard, Stockade Wealth Management, Mutual Locations: Marlboro , N.J

☆ Palantir made a ton of money this year thanks to strong US demand. But don't expect much growth in Europe.
▼ + stars: | 2024-05-07 | by ( Shubhangi Goel | ) www.businessinsider.com time to read: +4 min

download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. We are on fire," said Palantir CEO Alex Karp on Monday's earnings call. International commercial revenue for the first quarter was $149 million — down 3% from the prior quarter, but up 16% year-on-year. And international government revenue was down 9% from the prior quarter, to $79 million — though up 33% year-on-year. Karp addressed the matter in the call as well, saying Palantir is the first call for Western allies in global conflicts.

Persons: —, Alex Karp, Palantir's, General Mills, Karp, Dave Glazer, Glazer, Palantir, it's Organizations: Service, Business, Cleveland Clinic, General, DC Locations: Denver , Colorado, Europe, Israel, Ukraine, America, Palestine, Washington

☆ Super-aged Japan now has 9 million vacant homes. And that’s a problem
▼ + stars: | 2024-05-07 | by ( Chris Lau | Mayumi Maruyama | ) edition.cnn.com time to read: +6 min

“This is a symptom of Japan’s population decline,” said Jeffrey Hall, a lecturer at Kanda University of International Studies in Chiba. “It’s not really a problem of building too many houses” but “a problem of not having enough people,” he said. According to figures compiled by the Ministry of Internal Affairs and Communications, 14% of all residential properties in Japan are vacant. “When an earthquake or a tsunami occurs, there is a possibility that vacant houses will block evacuation routes as they break down and get destroyed,” he said. In other rural areas with a high concentration of vacant houses, akiya have stalled development, the professor said.

Persons: ”, Jeffrey Hall, “ It’s, don’t, Akio Kon, it’s, “ They’re, Buddhika Weerasinghe, Yuki Akiyama, Akiyama, ” Akiyama Organizations: CNN, Kanda University of International Studies, Ministry of Internal Affairs and Communications, Kanda University, “, Bloomberg, Getty, Ministry, Internal Affairs, Communications, Tokyo City University, Homes Locations: Japan, New York City, Tokyo, Kyoto, Chiba, Kanda, Yato, Yokosuka City, Kanagawa prefecture, Tambasasayama, Noto, Ishikawa, Europe, West, “

☆ A 'proper' economic downturn is looming, which could trigger steep rate cuts as soon as this year, economist says
▼ + stars: | 2024-05-07 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

Economist Frances Donald told Bloomberg TV that a sharper Fed pivot is ahead. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. AdvertisementMarkets are right to price in a Federal Reserve policy pivot but should brace for a rate-cutting cycle that's sharper than expected, economist Frances Donald told Bloomberg TV. "We believe we are heading into a proper downturn that will require a proper easing cycle." So we're not exiting the period in which rate hikes become really impactful in the economy," she said.

Persons: Frances Donald, —, Donald, We're, Danielle DiMartino Booth Organizations: Bloomberg, Service, Manulife Investment Management

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