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☆ E.C.B. Is Likely to Leapfrog the Fed on Interest Rate Cuts
▼ + stars: | 2024-06-05 | by ( Eshe Nelson | ) www.nytimes.com time to read: +1 min

European Central Bank officials are expected to cut interest rates this week for the first time in more than five years, drawing a line under the worst of the eurozone’s inflation crisis and easing the pressure on the region’s weak economy. But as policymakers in the eurozone move ahead, they leave behind their counterparts at the U.S. Federal Reserve, who are grappling with a seemingly more persistent inflation problem and warning that it will take longer to cut rates there. Lowering interest rates in Europe before the United States does would create a gap between the policies of two of the world’s largest and most influential central banks. to ease its policy could weaken the euro, while higher interest rates in the United States would continue to tighten financial conditions there and in other countries because of the global role of the dollar. can split from the Federal Reserve, while others say a divergence is not unusual and reflects two different economic situations.

Organizations: European Central Bank, U.S . Federal Reserve, Federal Reserve Locations: Europe, United States

☆ OPEC+ wants concrete rate cuts before factoring impact on oil demand, Saudi energy minister says
▼ + stars: | 2024-06-02 | by ( Ruxandra Iordache | ) www.cnbc.com time to read: +1 min

The prominent OPEC+ oil producers' alliance is awaiting concrete central bank action on interest rates before factoring in the potential impact on the energy demand landscape, according to Saudi Arabia's energy minister. The production strategy decisions come at a time when OPEC's own forecasts show a 2.25 million barrel-per-day increase in demand, according to the Monthly Oil Market Report of May. Energy costs spiked worldwide in the wake of Russia's full-fledged invasion of Ukraine, aggravating the economic downturn that followed the Covid-19 pandemic. Global institutions have previously mentioned energy prices as underpinning inflationary concerns. In turn, the piled-on inflation has muzzled oil demand.

Persons: Prince Abdulaziz bin Salman, — Organizations: Organization of, Petroleum, Monthly Locations: OPEC, Saudi, China, Ukraine

☆ Oil alliance OPEC+ could extend production cuts this weekend as focus shifts away from Middle East tensions, sources say
▼ + stars: | 2024-05-31 | by ( Ruxandra Iordache | ) www.cnbc.com time to read: +5 min

Thomas Coex | Afp | Getty ImagesThe oil-producing Organization of the Petroleum Exporting Countries and its allies could extend existing output cuts this week, delegates and analysts told CNBC, even as focus shifts from Middle East tensions to summer demand. OPEC+ producers are currently implementing a combined 5.86 million barrels per day of supply cuts. And then August is the peak month for tightness," Viktor Katona, lead crude analyst at Kpler, told CNBC. "However, I think that the market right now has priced in a full extension of the voluntary cuts. A high-inflation environment and tight monetary policy in turn reined in oil demand, but central banks have signaled readiness to lower interest rates in the second half of the year.

Persons: Thomas Coex, Viktor Katona, overproducers, Jorge Leon, Yemen's, Tamas Varga Organizations: Organization of, Petroleum, Afp, Getty, CNBC, Energy, Market Research, PVM Oil Associates, United Arab Emirates Locations: OPEC, Vienna, China, Iraq, Kazakhstan, Paris, Ukraine, Gaza, Red, Saudi Arabia, Russia, Guyana, Brazil, Canada

☆ Silver price gains are outshining gold thanks to China's solar panel overproduction
▼ + stars: | 2024-05-29 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Record high gold prices are in the spotlight — but it's really the yellow metal's poorer cousin, silver, that's outperforming in the price rally. Spot silver prices have gained 35% this year-to-date to 12-year-highs. In comparison, spot gold prices are at around $2,350 per ounce, but have just gained 14% so far this year. Silver is used in solar panels and also in general industryIn particular, silver is a key raw material for solar panels. Other than solar panels, silver is also used in electronics, as catalysts in industrial processes, and in car parts.

Persons: Morgan Stanley, Daniela Hathorn, Hathorn, Silver, overcapacity Organizations: Service, Business, Bloomberg, East, Global, Silver Institute Locations: China, West, Europe, Beijing

☆ Fed's Kashkari wants to see 'many more months' of positive inflation data before a rate cut
▼ + stars: | 2024-05-28 | by ( Karen Gilchrist | ) www.cnbc.com time to read: +1 min

LONDON — The Federal Reserve should wait for significant progress on inflation before cutting interest rates, Minneapolis Federal Reserve President Neel Kashkari told CNBC Tuesday. Asked what conditions were needed for the Fed to cut rates once or twice this year, Kashkari said: "Many more months of positive inflation data, I think, to give me confidence that it's appropriate to dial back." He said the central bank could potentially even hike rates if inflation fails to come down further. He noted that the central bank may consider raising its target rate in the future, but said it was not appropriate to "move the goal posts" at this stage. The Bank of England is also broadly expected to cut rates this summer.

Persons: Neel Kashkari, Kashkari Organizations: Minneapolis Federal, CNBC, Fed, European Central Bank, ECB, Bank of England Locations: U.S

☆ Ukraine war live updates: Russia cannot swallow the West whole, Orban says; G7 finance chiefs meet with Ukraine on agenda
▼ + stars: | 2024-05-24 | by ( Natasha Turak | ) www.cnbc.com time to read: +1 min

Governor of the Bank of Italy Fabio Panetta (L), Italy's Minister of Economy and Finance Giancarlo Giorgetti (R) and President of the European Central Bank Christine Lagarde pose on the sidelines of the G7 Finance Ministers meeting in Stresa on May 24, 2024. Earlier this week, U.S. Treasury Secretary Janet Yellen told Sky News she saw the "possibility" that G7 nations could assist Ukraine with as much as $50 billion in loans linked to frozen Russian assets. "The Russian assets are not earning interest anymore, but they are generating returns for Euroclear. That alone could be given to Ukraine that would be repaid over several years by that flow of interest," Yellen added. It remains to be seen whether G7 nations can strike consensus on such a loan and what final sum will be extended to support Kyiv's military effort.

Persons: Bank of Italy Fabio Panetta, Finance Giancarlo Giorgetti, European Central Bank Christine Lagarde, Janet Yellen, Yellen Organizations: Bank of Italy, Italy's, Economy, Finance, European Central Bank, Ukraine, Treasury, Sky News, Euroclear Locations: Stresa, Italy, Ukraine

☆ Some central banks have sold gold at record prices, cashing in on the global boom
▼ + stars: | 2024-05-21 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

Read previewCentral banks around the world have been snapping up gold, sending prices of the metal to record highs. The country's gold stash accounted for nearly three-quarters of its reserves as of March this year, according to WGC data. In 2022, Uzbekistan produced 110.8 tons of gold, making it the 10th top gold producer in the world, per WGC. Uzbekistan gold mining in March 2024. The country legalized private gold digging in 2019, and any gold found must be traded via its central bank.

Persons: —, it's, VYACHESLAV OSELEDKO, Shavkat Mirziyoyev Organizations: Service, Business, World Gold, Central Bank of, Uzbek, AFP Locations: China, Saudi, Central Bank of Uzbekistan, Thailand, Kazakhstan, Uzbekistan, Kazakh

☆ China ramps up de-dollarization efforts by dumping a record amount of US bonds
▼ + stars: | 2024-05-21 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

China sold a record $53.3 billion worth of Treasurys and agency bonds in the first-quarter, Bloomberg reported. AdvertisementChina unloaded a record volume of US bonds in the first quarter, escalating the country's pivot from dollar-denominated assets. AdvertisementBy last year, China was already discarding US debt to prop up its yuan, given considerable declines against the dollar. Now, the metal makes up a 4.9% of Chinese reserves, the highest since at least 2015, Bloomberg said. China is also de-dollarizing its reserves as part of a broader movement to diversify global finance, and chip at dollar dominance.

Persons: —, Biden, Donald Trump Organizations: Bloomberg, Service, US Treasury, greenback, Biden Administration, West Locations: China, Beijing, Russia

☆ De-dollarization is 'a myth,' and there's no big shift taking place away from the US currency, commodities expert says
▼ + stars: | 2024-05-21 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +4 min

Practically no one is phasing out the dollar for trade or foreign reserves, he said. No one is dumping dollars," Christian said of de-dollarization in a recent presentation. Its closest competitor, the euro, accounted for just 19% of all central bank reserves in 2022, down from around 29% several decades ago. Advertisement"There has been a diversification of central bank foreign exchange holdings, but it's not at the expense of the dollar, and it's not away from the dollar," Christian said. "Clearly people are buying dollars in a much greater volume than they are selling dollars," Christian said.

Persons: Jeffrey Christian, —, Christian, it's, Chris Wallace, Wallace Organizations: CPM, Service, Bank of International Settlements, Monetary Fund, Federal Locations: Russia, China

☆ Gold prices are at yet another record high. That means rate cuts are coming soon
▼ + stars: | 2024-05-20 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

Gold reached a new record of $2,454.20 per ounce on Monday as markets price in Fed rate cuts. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementGold set another record high on Monday as Wall Street readies for monetary policy to ease this year. Given that gold is a safe haven asset, rising international face-offs have prompted more investors to buy the bullion. Meanwhile, US sanctions on Russian reserves sparked central banks to snap up the metal at record pace.

Persons: Gold, —, Grzegorz Drozdz, David Miarrions Organizations: Service, P, Trade

☆ Markets underestimate geopolitical risk as raft of elections looms, ECB's De Guindos says
▼ + stars: | 2024-05-16 | by ( Jenni Reid | ) www.cnbc.com time to read: +2 min

And simultaneously, we are referring to geopolitical risks. I think that, you know, markets sometimes are underestimating the potential impact of geopolitical risks that are there," Luis de Guindos told CNBC's Annette Weisbach. Rising geopolitical risks present "considerable downside risks," the ECB warned in the report. The report attributes the rally in financial markets to analyst expectations of interest rate cuts from major central banks this year. "And that's the element that you cannot ignore, you cannot overlook this potential impact that could affect risk aversion, risk attraction, commodity prices, growth, overall growth in the global economy."

Persons: Luis de Guindos, CNBC's Annette Weisbach, De Guindos Organizations: European Central Bank, Stock, U.S, ECB Locations: U.S, Europe, East, Ukraine

☆ Forget U.S. stocks — UBS says Europe's are a better bet. Here's why
▼ + stars: | 2024-05-14 | by ( Sophie Kiderlin | In | ) www.cnbc.com time to read: +2 min

Michael M. Santiago | Getty ImagesEuropean stocks are now more attractive than their U.S. counterparts, according to Swiss Bank UBS , with factors such as economic data, interest rates and earnings playing a key role. In a note entitled: "A U-Turn: Favouring Europe over US equities," the bank's strategists said European stocks excluding the U.K. now outrank the U.S. on its "regional scorecard." UBS outlined a number of reasons for its "U-turn," especially given U.S. markets tend to outperform European ones. Indicators tracked by the bank — such as purchasing managers' index (PMI) data — suggest an upside risk to European GDP, and a downside risk to U.S. GDP, the bank said. Some of Europe's central banks have already begun easing, and the European Central Bank is expected to do so as soon as June.

Persons: Michael M Organizations: New York Stock Exchange, Santiago, Getty, Swiss Bank UBS, UBS, U.S, European Central Bank Locations: New York City, U.S, Europe, Japan, Swiss

☆ The US dollar has become so weaponized that central banks are snapping up politically-neutral gold
▼ + stars: | 2024-05-14 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

Central banks accounted for one-quarter of gold demand in 2022 and 2023, as the institutions bought over 1,000 tons of gold each year, according to the World Gold Council in a recent report. Related storiesThe world's central banks continued buying gold, snapping up 290 tons of gold in the first quarter of this year — the strongest start to any year on record, according to the council. AdvertisementThis suggests that gold purchases by some central banks may have been driven by concerns about sanctions risk, Gopinath said. Central banks will keep buying, despite high pricesWhile China's central bank gold buying has been hogging the headlines, other central banks are also loading up on gold. The World Gold Council wrote in its recent report that other big gold buyers included Turkey and India.

Persons: —, Gita Gopinath, it's, Gopinath, IMF's Gopinath Organizations: Service, Monetary Fund, Business, World Gold, US Treasury, Agency, JPMorgan Locations: Ukraine, Central, Russia, China, Turkey, India

☆ Early Facebook investor Accel raises $650 million fund to back European and Israeli startups
▼ + stars: | 2024-05-13 | by ( Ryan Browne | ) www.cnbc.com time to read: +6 min

AccelVenture capital firm Accel said Tuesday it's raised $650 million for its eighth fund targeted at investing in European and Israeli early-stage startups, in a sign the venture capital market may be showing signs of a recovery. "The environment has dramatically changed since then," Nelis told CNBC. Climate-focused VC firm World Fund closed a 300 million euro fund in March. "We're lucky that with DeepMind here in London and with Fair [Facebook AI Research] in Paris, there's at least two big centers that have great AI expertise," Nelis told CNBC. "My expectation is Europe is going to generate some really interesting AI application companies," Nelis told CNBC.

Persons: Harry Nelis, Sonali de Rycker, Andrei Brasoveanu, Luca Bocchio, Philippe Botteri, it's, Nelis, UiPath, Russia's, Wise, Magnus Grimeland, Grimeland, there's, Victor Riparbelli, Synthesia, Riparbelli Organizations: Accel, Accel Venture, Spotify, CNBC, Skype, U.S, Nvidia Locations: Europe, Israel, Lithuania, Romania, Ukraine, New York, U.S, London, Paris, Synthesia

☆ 3 reasons the dollar can't be dethroned as the world's dominant currency, according to Morgan Stanley
▼ + stars: | 2024-05-13 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +5 min

De-dollarization efforts won't do much to dethrone the dollar, Morgan Stanley said. There are no true alternatives to holding the US dollar at the moment, Morgan Stanley strategists said. AdvertisementThe dollar's status as the top currency of central banks and for international trade probably isn't fading soon, according to Morgan Stanley. "Now, reasonable people can disagree about whether cryptocurrencies are going to appreciate or depreciate, but I'd argue that the best outcome for a dominant currency is neither." Displacing a dominant currency is something that happens over the course of decades, economists previously told Business Insider, as it takes time for people to shift to other currencies once a dominant currency is recognized as "safe."

Persons: Morgan Stanley, —, James Lord, Michael Zezas, That's, Lord, there's, Zezas, Crypto, David Adams, Morgan Stanley's Organizations: Service, Rivals, greenback, Business Locations: Beijing, China

☆ The US and the West are facing the blowback of sanctions against Russia, economist says
▼ + stars: | 2024-05-10 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Read previewThe US miscalculated when it imposed harsh sanctions on Russia, and not only has Vladimir Putin's economy weathered the impact, but the West is facing the negative effects of the economic restrictions it imposed. Food and energy prices have soared since the West imposed sanctions on Russia, he noted partly because Russia is one of the world's largest exporters of oil and grain. Even the US dollar may end up worse off due to sanctions, Rubin said. Russia's trade with China, for instance, has nearly completely phased out the dollar, Russian officials said last year. "Sanctioning the ruble and confiscating a third of the Russian central bank's foreign reserves was supposed to cripple the Russian economy.

Persons: —, Vladimir, Jeff Rubin, " Rubin, crimp, Rubin, Putin Organizations: Service, Business, The Globe, Federal Reserve Board, Bank of Canada Locations: Russia, Ukraine, China, Russian

☆ Why you should buy stocks ahead of next week's inflation report
▼ + stars: | 2024-05-10 | by ( Matthew Fox | ) www.businessinsider.com time to read: +2 min

Investors should buy stocks ahead of next week's release of the April CPI report, according to Fundstrat's Tom Lee. An in-line CPI report or better would increase the chances of three interest rate cuts this year, Lee said. AdvertisementInvestors should buy stocks ahead of next week's release of the April CPI report, according to Fundstrat's Tom Lee. Sweden's Riskbank cut interest rates for the first time since 2016 on Wednesday, and the Bank of England signaled that interest rate cuts are imminent. And next week, we expect incoming data to show overall softening of the key components of inflation," Lee said.

Persons: Tom Lee, Lee, — Organizations: Service, Federal Reserve, Bank of England

☆ The UK has 'probably the most convincing disinflation story,' economist says
▼ + stars: | 2024-05-10 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe UK has 'probably the most convincing disinflation story,' economist saysSanjay Raja, chief U.K. economist at Deutsche Bank, discusses the divergence between U.S. and U.K. central banks.

Persons: Sanjay Raja Organizations: Deutsche Bank

☆ Bank of England set to hold rates as Europe's central banks diverge from Fed
▼ + stars: | 2024-05-09 | by ( Jenni Reid | ) www.cnbc.com time to read: +2 min

Variegated tulips planted in flower beds opposite the Bank of England in the City of London on 7th May 2024 in London, United Kingdom. =LONDON — The Bank of England is set to hold interest rates steady at its Thursday meeting, with traders expected to pore over the details of Governor Andrew Bailey's statement as anticipation builds for a potential summer rate cut. The BOE's Monetary Policy Committee is widely expected to keep the Bank Rate at 5.25%, with an announcement due at midday. The latest March meeting saw eight votes to keep rates steady and one to cut. It's going to reach target pretty soon, and that will put the Bank under a lot of pressure to start normalizing policy."

Persons: Andrew Bailey's, Bailey, Francesco Garzarelli, Garzarelli, CNBC's, There's Organizations: Bank of England, Eisler Capital, Bank Locations: City of London, London, United Kingdom

☆ '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

☆ People in Korea are buying gold from vending machines and convenience stores amid 2024's frenzy for the precious metal
▼ + stars: | 2024-05-08 | by ( Yuheng Zhan | ) www.businessinsider.com time to read: +3 min

Korea's convenience stores and vending machines are selling gold, with younger people flocking to buy. Bite-sized gold bars have been selling since April, weighing in between 0.1 and 1.87 grams. AdvertisementGold bars are displayed for sale alongside packaged kimchi and ramen in convenience stores across Korea, with the yellow metal gaining among younger consumers in 2024. AdvertisementYoung Koreans are leading the pack of buyers snapping up gold from CU stores, accounting for 41.3% of the total purchases, according to data from the company's app. However, the country's central bank hasn't joined the gold rush, keeping its gold reserves steady at 104.4 tons since 2013.

Persons: —, hasn't, China —, David Rosenberg, Ed Yardeni Organizations: Service, Printing Corporation, Chosun, CNBC, World Gold Council Locations: Korea, South, South Korea, Asia's, China

☆ The US dollar is so strong that China's central bank, among others, just keeps loading up on gold
▼ + stars: | 2024-05-08 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

Central banks are on a gold-buying spree, contributing to record-high spot gold prices. Other central banks are also snapping up gold to diversify their assets on the back of a strong greenback. Other central banks are also loading up on gold. Emerging market central banks that bought gold in the first quarter of the year include Kazakhstan, Oman, Kyrgyzstan, and Poland. There are political motivations for central banks to diversify their assets, too.

Persons: —, it's, bode Organizations: Service, People's Bank of China, greenback, Gold, JPMorgan, Allianz Locations: China, Turkey, India, Kazakhstan, Oman, Kyrgyzstan, Poland, United States

☆ Japanese yen: How the currency’s record slump is squeezing the Japanese
▼ + stars: | 2024-05-03 | by ( Juliana Liu | ) edition.cnn.com time to read: +7 min

Higher interest rates in the United States and other countries mean investors can make bigger returns on investments there than they can in Japan. This encourages carry trades, in which investors borrow money in yen to invest it in higher-yielding assets priced in other currencies. That weakens the Japanese currency. A Big Mac costs 50% more in the next cheapest G10 currency, the New Zealand dollar, than it does in yen, he added. … and lots of drawbacksBut the falling yen has caused much pain at home and not just for small businesses like Japan Fraise.

Persons: hasn’t, Hiroko Ishikawa, “ It’s, ” Ishikawa, “, we’re, We’re, Himari Semans, That’s, ” Nigel Green, Kit Juckes, Warren Buffett, ” Sean Callow, ”, Sato Hitomi, Semans, I’ve, —, Laura He, Chris Lau Organizations: Tokyo CNN, US, Reserve, CNN, Nikkei, Bank of Japan, deVere, greenback, Labor, Societe Generale, New Zealand, Japan’s National Tourism Organization, Tokyo’s Locations: Hong Kong, Tokyo, Japan, United States, Sydney, Hawaii

☆ Japan's yen had a rollercoaster week amid suspected intervention. Here's what you need to know
▼ + stars: | 2024-05-03 | by ( Shreyashi Sanyal | ) www.cnbc.com time to read: +3 min

An undated photographic illustration of Japanese yen and the U.S. dollar bank notes. The yen touched 160.03 against the greenback on Monday, for the first time since 1990, but strengthened to 156 levels later that day amid speculation about an intervention by Japanese authorities. Japanese authorities are yet to issue an official statement confirming their role in propping up the currency. In the last few decades, while other global central banks have tightened their policies, Japan had maintained its ultra-loose policy, leading to concentrated carry trades in the Japanese yen. Market participants believe Japanese authorities will intervene further to prop up the currency.

Persons: Glowimages, they've, Nicholas Smith, Kazuo Ueda, Edward Yardeni Organizations: U.S, Glowimages, CNBC, Bank of America Global Research, Bank of Japan, Bank of, Federal Reserve, Yardeni Research Locations: propping, Japan, U.S, Bank of Japan

☆ Japan's finance minister says yen intervention may be necessary when there are 'excessive' moves
▼ + stars: | 2024-05-03 | by ( Matt Clinch | ) www.cnbc.com time to read: +2 min

Japanese Finance Minister Shunichi Suzuki speaks during the presidency press conference at the G7 meeting of finance ministers and central bank governors, at Toki Messe in Niigata, Japan, Saturday, May 13, 2023. "When there is an excessive movement, it may be necessary to smooth it out," he told CNBC's Dan Murphy, according to a translation. Japanese Finance Minister Shunichi Suzuki on Friday backed currency interventions by his country's policymakers if the yen moved in sharp directions that started to impact households and companies. The finance minister declined to comment when asked whether current levels for the yen were appropriate. In the last few decades, while other global central banks have tightened their policies, Japan had maintained its ultra-loose strategy.

Persons: Shunichi Suzuki, CNBC's Dan Murphy, they've, Nicholas Smith Organizations: Toki, Japanese Finance, CNBC Locations: Niigata, Japan, Tbilisi , Georgia, propping

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