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☆ Gold prices at all-time highs as traders eye deeper U.S. rate cut
▼ + stars: | 2024-09-16 | by ( ) www.cnbc.com time to read: +2 min

Gold prices climbed to a two-week high on Thursday as U.S. Federal Reserve Chair Jerome Powell opened the door to cutting interest rates as early as September. Gold prices surged to record highs on Monday, driven by a softer dollar and expectations of a larger interest rate reduction by the U.S. Federal Reserve this week. Spot gold was up 0.5% at $2,588.29 per ounce, as of 0551 GMT, after hitting an all-time high of $2,589.23 earlier in the session. This would be Fed's first rate cut since 2020. Zero-yield bullion tends to be a preferred investment amid lower interest rates and geopolitical turmoil.

Persons: Jerome Powell, Tim Waterer, Donald Trump Organizations: Federal, U.S . Federal Reserve, KCM, Bank of England, Bank of Japan, Republican, FBI Locations: China, Japan, Indonesia, Malaysia, South Korea

☆ It's a big week for central banks around the world, with a slew of rate moves on the table
▼ + stars: | 2024-09-16 | by ( Sam Meredith | In Samuelmeredith | ) www.cnbc.com time to read: +5 min

Kevin Dietsch | Getty ImagesA flurry of major central banks will hold monetary policy meetings this week, with investors bracing for interest rate moves in either direction. The U.S. central bank is widely expected to join others around the world in starting its own rate-cutting cycle. Elsewhere, Brazil's central bank is scheduled to hold its next policy meeting across Tuesday and Wednesday. Traffic outside the Central Bank of Brazil headquarters in Brasilia, Brazil, on Monday, June 17, 2024. The central bank delivered its first interest rate cut in more than four years at the start of August.

Persons: Jerome Powell, William McChesney Martin, Kevin Dietsch, John Bilton, CNBC's, Bilton, David Volpe, Volpe, 25bps, Wilson Ferrarezi, BOE, Ruben Segura Cayuela Organizations: Federal Reserves, Washington , D.C, Federal, Traders, The Bank of England, Norway's Norges Bank, South Africa's, Bank, Bank of Japan, Morgan Asset Management, European, Bank of England, ECB, Emerald Asset Management, Banco Central, TS Lombard, Central Bank of, Bloomberg, Getty, Reuters, Bank of America Locations: Washington ,, U.S, Brazil's, Brazil, Central Bank of Brazil, Brasilia, South Africa, Norway, Japan

☆ U.S. Treasury yields dip as investor focus shifts to Fed meeting
▼ + stars: | 2024-09-16 | by ( Sophie Kiderlin | In | ) www.cnbc.com time to read: +1 min

ET, the yield on the 10-year Treasury was less than one basis point lower at 3.6401%. U.S. Treasury yields were slightly lower on Monday as investors looked ahead to this week's Federal Reserve meeting and interest rate decision. The Federal Reserve meeting and interest rate decision are top of mind for investors this week, with the central bank's meeting kicking off Tuesday and concluding Wednesday. Markets are anticipating a rate cut from the Fed, the first since it began hiking rates in March 2022, but uncertainty about how big the reduction will be has been widespread. The central bank is also set to publish its latest economic projections on Wednesday.

Persons: Jerome Powell Organizations: Treasury, U.S, Reserve, Federal Reserve, Fed, Bank of England

☆ European markets set to open higher ahead of bumper week for central banks
▼ + stars: | 2024-09-16 | by ( Karen Gilchrist | ) www.cnbc.com time to read: 1 min

A view of the Navigli in Milan, Italy on May 20, 2024. LONDON — European stocks were set to open higher Monday as investors prepared for a bumper week of interest rate decisions from the U.S Federal Reserve and the Bank of England. The FTSE 100 was seen opening 4 points higher at 8,278, Germany's DAX up 27 points at 18,713, France's CAC 7 points higher at 7,468 and Italy's FTSE MIB up 30 points at 33,583, according to IG data. The pan-European Stoxx 600 closed higher on Friday and added 1.09% for the week as positive momentum returned to the market. With a U.S. rate cut now all but guaranteed, investors are waiting to see by how much the Fed will cut rates on Wednesday, and what guidance chair Jerome Powell will give on the future path for monetary policy.

Persons: Germany's DAX, Jerome Powell Organizations: LONDON, U.S Federal Reserve, Bank of England, CAC Locations: Milan, Italy

☆ Currencies listless as markets waffle over Fed rate cut
▼ + stars: | 2024-09-16 | by ( ) www.cnbc.com time to read: +4 min

A quarter-point reduction by the Fed as it kicks off its rate cuts is still seen as the slightly more likely outcome, but only marginally so. Futures price a total of 125 basis points in rate cuts in 2024. Investors are also looking to the Bank of Japan's interest rate decision on Friday, when it is expected to keep its short-term policy rate target steady at 0.25%. Bank of Canada Governor Tiff Macklem meanwhile opened the door to stepping up the pace of interest rate cuts, the Financial Times reported on Sunday. The BoC, after keeping its key policy rate at 5%, a more than two-decade high, for a year, has trimmed it by a quarter point three times in a row since June.

Persons: Chris Weston, Fumio Kishida, Sanae Takaichi, Christine Lagarde, Philip R, Lane, Luis de Guindos Organizations: U.S, Bank of England, Bank of Japan, Treasury, Fed, FedWatch, Bank of, Liberal Democratic Party, Sterling, European Central Bank, ECB, Bank of Canada, Financial Times, BoC Locations: Japan, Asia, China, South Korea

☆ UK leads resurgence in European office investment
▼ + stars: | 2024-09-13 | by ( Karen Gilchrist | ) www.cnbc.com time to read: +5 min

Sopa Images | Lightrocket | Getty ImagesLONDON — The U.K. is leading a recovery in Europe's long subdued office real estate market, with overall investment in the sector expected to pick up further in the second half of the year. Overall, European office investment transactions in the first half of the year fell 21% year-on-year to 14.1 billion euros, Savills data showed — a 60% decrease on the five-year H1 average. Europe's divided recoveryThe U.K. real estate market was the first in Europe to undergo a significant contraction following its peak in 2022. "London is leading the way a bit, partly because it repriced earlier and quicker and more significantly," Kim Politzer, head of research for European real estate at Fidelity International, told CNBC over the phone. Kim Politzer head of research for European real estate at Fidelity International

Persons: Mike Barnes, Savills, Kim Politzer, Marcus Meijer, Mark, CNBC's, James Burke, Tom Leahy, Leahy, Europe's, JLL Organizations: Getty, Britain, CNBC, Bank of, Fidelity International, European Central Bank, Nurphoto, U.S Locations: London, Europe, Paris, Stockholm, Berlin, Hamburg, La Défense, France, Ireland, Netherlands, Spain, Italy, Portugal, Southern Europe, Germany

☆ Dollar weak as traders add to wagers of big rate cut from Fed
▼ + stars: | 2024-09-13 | by ( ) www.cnbc.com time to read: +3 min

While the Fed is all but certain to cut rates next week, uncertainty around whether it will go with a 25 basis point cut or 50 basis points has kept investors on the edge and weighed on the dollar. Analysts pointed to media reports from the Financial Times and the Wall Street Journal suggesting the Fed's decision would be a close call as one of the reasons for traders adding to wagers of a big rate cut next week. Higher U.S. jobless claims data released on Thursday and the Wall Street Journal article on the Fed's rate cut dilemma revived bets on a jumbo cut at the September meeting, according to Christopher Wong, currency strategist at OCBC. Besides the Fed, the Bank of England and Bank of Japan hold policy meetings next week. "Risks remain that inflation may not return to target as easily as everyone, including the Fed, seems to expect."

Persons: Christopher Wong, Christine Lagarde, Ryan Brandham, Naoki Tamura, Sterling, BoE Organizations: Federal Reserve, Financial Times, Wall, Traders, European Central Bank, Fed, Bank of England, Bank of Japan, Validus Risk Locations: North America

☆ UK economy flatlines again in July, below expectations
▼ + stars: | 2024-09-11 | by ( Karen Gilchrist | ) www.cnbc.com time to read: +3 min

LONDON — The U.K. economy continued to flatline in July on a month-on-month basis, flash figures published from the Office for National Statistics showed Wednesday. Britain's economic growth was up 0.5% in the three month to July, slightly below economist expectations and the 0.6% recorded in the second quarter ending in June. The U.K. economy had recorded modest but steady expansion almost every month so far this year, having emerged from a shallow recession at the start of the year. Finance Minister Rachel Reeves said the print left her "under no illusion" of the challenges faced by the U.K. economy. But she added that further movement in interest rates anticipated from the Bank of England could help ease wider growth pressures.

Persons: Liz McKeown, Keir Starmer's, Rachel Reeves, Reeves, Jeremy Hunt, Lindsay James, James Organizations: Office, National Statistics, Gross, Reuters, Labour, Conservative, Quilter Investors, Treasury, Bank of England Locations: flatline, U.K

☆ Don't get your hopes up about the housing market
▼ + stars: | 2024-08-24 | by ( Eliza Relman | ) www.businessinsider.com time to read: +4 min

One of the most painful ways higher interest rates have impacted Americans is through higher housing costs. The combination of high borrowing costs and skyrocketing home prices and rents — caused by a housing shortage — has created an enduring housing affordability crisis. On the one hand, lower borrowing costs would likely make mortgages cheaper for buyers and encourage builders to construct desperately needed new homes. But rate cuts would also spur new home construction, as builders respond to higher demand and lower borrowing costs for acquisition and construction loans. On top of high borrowing costs, builders are struggling with a severe shortage of construction workers and high building material costs.

Persons: —, Jerome Powell, Daryl Fairweather, Wells, underbuilding, Ben Metcalf, Metcalf Organizations: Service, Jackson Hole , Wyoming ., Business, Bank of England, Terner Center, Housing Innovation, UC Berkeley Locations: Jackson Hole , Wyoming

☆ Bank of England's Bailey: 'More restrictive policy' could still be needed due to labor market shocks
▼ + stars: | 2024-08-23 | by ( Jenni Reid | ) www.cnbc.com time to read: +1 min

Andrew Bailey, governor of the Bank of England, waits to deliver a lecture at the London School of Economics in London, UK, on Tuesday, May 21, 2024. Bank of England Governor Andrew Bailey will hail the progress made in dampening inflation in the U.K. in a Friday speech, but also caution that monetary policy may need to remain restrictive for longer than expected due to shocks from the labor market. Headline price rises in the U.K. hit the BOE's 2% target for two months this year, before rising to 2.2% in July. However, he will caution that two less "benign" scenarios remain possible that will require the Bank of England to "maintain restriction for longer." It comes after Federal Reserve Chair Jerome Powell on Friday gave his firmest comments yet indicating that interest rate cuts lie ahead for the world's biggest central bank, stating: "The time has come for policy to adjust."

Persons: Andrew Bailey, Bailey, Jerome Powell Organizations: Bank of England, London School of Economics, U.S, Bank of Locations: London, U.S . Federal, Jackson Hole , Wyoming, Bank of England

☆ UK economy expands 0.6% in second quarter; June growth stalls
▼ + stars: | 2024-08-15 | by ( Jenni Reid | ) www.cnbc.com time to read: +2 min

The U.K. economy grew by 0.6% in the second quarter of the year, the Office for National Statistics said Thursday, continuing the country's cautious recession rebound. The British economy has recorded slight but steady growth almost every month so far this year, as the U.K. exits a shallow recession. On an annual basis the economy was 0.9% bigger in the second quarter, against a forecast of 0.8%. The pace of growth is unlikely to continue into the second half amid weaker wage growth, high interest rates and supply challenges, Thiru added. Over the April-June period, U.K. wage growth excluding bonuses cooled to a two-year low, but remained relatively hot at 5.4%.

Persons: Richard Carter, Cheviot Organizations: National Statistics, Reuters, Institute of Chartered Accountants, ONS, Bank of England's, U.S . Locations: York, U.K, England, Wales, London

☆ UK, U.S. inflation prints in focus as European markets head for higher open
▼ + stars: | 2024-08-14 | by ( Holly Ellyatt | ) www.cnbc.com time to read: 1 min

LONDON — European stocks are expected to open higher Wednesday as investors in the region await key inflation prints from the U.S. and U.K. U.K. inflation data out on Wednesday will be the first print since the Bank of England cut interest rates by 25 basis points last month. After two months at 2%, economists polled by Reuters expect the headline inflation rate to tick higher, to 2.3%. Money markets are currently pricing in a high probability of more interest rate cuts by the BoE, amounting to 50 basis points this year. The central bank's key rate currently sits at 5%.

Persons: Germany's DAX, BoE Organizations: New Oxford, LONDON, CAC, IG, Bank of England, Reuters Locations: London, U.S

☆ UK inflation rose to 2.2% in July, after two months at the Bank of England's 2% target
▼ + stars: | 2024-08-14 | by ( Sophie Kiderlin | In | ) www.cnbc.com time to read: +2 min

U.K. inflation rose to 2.2% in July, coming in slightly below expectations but inching back above the Bank of England's 2% target, data from the Office for National Statistics showed Wednesday. The headline inflation had come in at 2% in both May and June, in line with the Bank of England's target rate. So-called core-CPI — which excludes food, energy, alcohol and tobacco prices — came in at 3.3% in July, down from the 3.5% print of July, the statistics office said. The data comes after the Bank of England earlier this month cut interest rates for the first time in over four years, taking the key bank rate to 5%. Uncertainty remains about when the central bank will cut rates again, and whether another cut will even take place this year.

Persons: BOE Organizations: Bank of England's, Office, National Statistics, Reuters, Bank of, Bank of England

☆ 'Cheap' and 'under-owned': CIO makes the case for UK stocks despite U.S. bounce back
▼ + stars: | 2024-08-14 | by ( Sam Meredith | In Samuelmeredith | ) www.cnbc.com time to read: +3 min

U.K. stocks are looking particularly attractive after a fresh bout of market volatility, according to the chief investment officer of financial firm Wren Sterling. It is in this context that Wren Sterling's Rory McPherson believes British stocks look "cheap" and "under-owned." When asked whether investors should consider U.K. stocks as part of a shift away from U.S. tech companies, McPherson replied, "Well, we think so. I mean you look at the market like the U.K., it's on 12 times earnings, its cheap, its under-owned. Analysts have recently turned bullish on U.K. stocks, which had been unpopular for years.

Persons: Wren Sterling, Wren, Rory McPherson, McPherson, CNBC's, " McPherson Organizations: Global, U.S, Analysts, BlackRock Investment, BlackRock, Labour Party, CNBC, Bank of, Bank of England Locations: U.S

☆ The Federal Reserve Must Be Independent. Here’s Why. - The New York Times
▼ + stars: | 2024-08-13 | by ( Paul Krugman | ) www.nytimes.com time to read: +1 min

On Saturday, Kamala Harris was asked to respond to Donald Trump’s suggestion that the president should have a say in the Federal Reserve’s interest rate decisions. But why should the Fed be independent? The Federal Reserve’s legal status is complicated, but there’s no fundamental constitutional principle saying that elected officials must keep their hands off the money supply. Historically, central banks like the Fed have often been treated like ordinary government agencies, and not only under autocratic regimes. Why take this particular piece of policy out of the hands of elected officials?

Persons: Kamala Harris, Donald Trump’s, “, Trump, Biden Organizations: Fed, Wall Street, Trump, Bank of England, Britain’s Treasury Department Locations: Harris

LONDON — European stocks are expected to open higher Tuesday, regaining some positive momentum after last week's volatility. The U.K.'s FTSE index is seen opening 26 points higher at 8,233, Germany's DAX up 18 points at 17,288, France's CAC 40 up 14 points at 7,259 and Italy's FTSE MIB 62 points higher at 32,084, according to data from IG. European stocks closed mixed on Monday as forthcoming U.S. and U.K. inflation data dominated investor attention. U.K. wage data released by the Office for National Statistics on Tuesday showed that pay excluding bonuses grew 5.4% year-on-year between April and June — the lowest rate in two years. U.K. inflation data, due on Wednesday, will be the first print since the BOE cut interest rates by 25 basis points.

Persons: Germany's DAX, Jack Kennedy, BOE Organizations: LONDON, CAC, IG, Office, National Statistics, Reuters, Bank of England, U.S Locations: France, Spain, Italy

☆ King Charles banknotes sell for 12 times their value as collectors scramble for early editions
▼ + stars: | 2024-08-13 | by ( Angelica Chiara Yazbeck | ) edition.cnn.com time to read: +3 min

London CNN —A record-breaking series of auctions of King Charles III banknotes has raised £914,127 ($1.2 million) for 10 UK charities, according to the Bank of England. The banknotes, auctioned by Spink & Sons over the summer, sold for 11.7 times their face value of £78,430 ($100,318), as collectors snapped up some of the first versions of the new cash to roll off the printing presses. The runaway success of the auctions highlights the value that collectors attach to banknotes with especially low serial numbers, which denote that they are among the first to be printed. “Lucky numbers” also attracted high bids, according to Spink & Sons. Two £5 notes with serial numbers ending in 88 and 888 were auctioned for £2,200 ($2,800) and £2,400 ($3,100).

Persons: King Charles III, King Charles, BOE, Queen Elizabeth II, ”, Gregory Edmund, ” Edmund, Sarah John, Winston Churchill, Queen Elizabeth, Churchill, London — Organizations: London CNN, Bank of England, Spink & Sons, Spink, CNN, WWF, Trussell, British Locations: United Kingdom, BOE, British, London

☆ Auctions of early King Charles bank notes raise $1.17 billion for charity
▼ + stars: | 2024-08-13 | by ( Sophie Kiderlin | In | ) www.cnbc.com time to read: +1 min

A person holds some of the newly released banknotes, featuring the King's portrait, outside the Bank of England, London. LONDON — Auctions of King Charles III bank notes with low serial numbers have raised £914,127 ($1.17 million) for charity, according to the Bank of England. Four auctions took place over the summer — for £5, £10, £20 and £50 notes — with the proceeds set to go to a range of charities. This includes the Bank of England's three 'charities of the year' as well as seven others that have not benefitted from charity auctions of banknotes since 2016. Each charity received just over £91,400 of the proceeds, the BOE said.

Persons: King Charles III, BOE Organizations: Bank of England, Bank of Locations: London

☆ Bank of England to remain cautious on future interest rate cuts, economist says
▼ + stars: | 2024-08-05 | 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 EmailBank of England to remain cautious on future interest rate cuts, economist saysSonali Punhani, chief U.K. economist at Bank of America Merrill Lynch, weighs in on the Bank of England's recent interest rate cut and the outlook for monetary policy moving forward.

Persons: Sonali Punhani, Bank of America Merrill Lynch Organizations: Email Bank of England, Bank of America, Bank of

☆ Why the Fed almost certainly isn’t going to do an emergency rate cut
▼ + stars: | 2024-08-05 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +5 min

Investors are increasingly hopeful that will push Federal Reserve officials to come to their rescue with an emergency rate cut. But if something comes up in between those meetings that changes their views on the ideal level for rates, officials can gather for an unscheduled “emergency” meeting. By doing two large emergency cuts in succession, Fed officials didn’t have to weigh whether their actions would unnecessarily cause Americans to panic. Before those cuts, the last time the Fed was promoted to do an emergency rate cut was in the thick of the Great Recession shortly after Lehman Brothers collapsed in the fall of 2008. But he said he was “reluctantly” comfortable with an emergency cut since other central banks were doing it.

Persons: Austan Goolsbee, there’s, Lehman Brothers, ” Charles Plosser, “, ”, That’s, Janet Yellen, ” Yellen, Plosser Organizations: New, New York CNN, Federal, Chicago Fed, New York Times, Philadelphia Fed, Bank of Canada, European Central Bank, Bank of England, San, Committee, Fed, Treasury Locations: New York

☆ UK lenders slash mortgages as Bank of England rate cut brings relief to homeowners
▼ + stars: | 2024-08-02 | by ( Karen Gilchrist | ) www.cnbc.com time to read: +1 min

Homeowners on tracker mortgages, which follow the Bank's base rate, will be the first to benefit from the savings. Barclays , Santander, Metro Bank, Lloyds , Halifax, Nationwide and HSBC all cut repayments costs by 25 basis points shortly after the BOE's announcement. Those on standard variable rates, which typically take effect once a borrower's tracker or fixed rate deal ends, will also see savings. Given their more volatile nature, tracker and SVR mortgages remain a relatively niche part of the U.K. mortgage market. However, analysts suggest it may not be long until reductions feed through to the 6.93 million households on fixed rate mortgages.

Organizations: Bank of England, HSBC, Santander, Nationwide, Homeowners, Barclays, Metro Bank, Lloyds, Finance Locations: London's Muswell Hill, London, Halifax, Santander

☆ Safe-haven yen, Swiss franc soar as U.S. slowdown fears flare
▼ + stars: | 2024-08-02 | by ( ) www.cnbc.com time to read: +2 min

Swiss Franc banknotes sit in the office of a bank in this arranged photograph in Zurich, Switzerland, on Friday, Nov. 20, 2015. The safe-haven Japanese yen and Swiss franc traded near multi-month highs against the dollar on Friday after an unexpected slump in U.S. manufacturing fuelled fears of a downturn, sending stocks and bond yields tumbling. The yen traded around 0.2% stronger at 149.085 per dollar, after popping as high as 148.51 overnight for the first time since mid-March. They were the only two major currencies to outperform the dollar overnight, which itself draws safe-haven flows, paradoxically even when the United States is the cause for concern. ECB policymaker Yannis Stournaras raised the risk of a weak euro zone economy sending inflation below the 2% target in an interview published on Thursday, reaffirming his expectation for two rate cuts this year.

Persons: Sterling, Tony Sycamore, Sycamore, BoE Governor Andrew Bailey, ECB policymaker Yannis Stournaras Organizations: Swiss, Bank of England, European Central Bank, Japan's Nikkei, IG, Federal Reserve, ECB policymaker Locations: Zurich, Switzerland, United States, Asia, U.S

☆ European stocks to extend declines after Bank of England rate cut as global sentiment sours
▼ + stars: | 2024-08-02 | by ( Jenni Reid | ) www.cnbc.com time to read: +2 min

Boris Roessler | Picture Alliance | Getty ImagesLONDON — European stocks were set to open lower Friday, extending losses amid a global downturn as a busy week of market action draws to a close. Germany's DAX was on course to open 104 points lower at 17,984, according to IG data, with France's CAC 40 down 40 points at 7,325. The regional Stoxx 600 index on Thursday suffered its worst session since mid-June, pulled down by financials as French bank Societe Generale downgraded its outlook and the Bank of England cut interest rates for the first time since 2020. The central bank decision took its key interest rate to 5% from 5.25%, in a move that markets had not been fully convinced it would carry out. Asia-Pacific markets saw steep losses Friday, with Japan's benchmark indexes tanking as much as 5%.

Persons: Boris Roessler, Germany's DAX, BOE Governor Andrew Bailey, BOE, Joe Tuckey Organizations: Getty, France's CAC, Societe Generale, Bank of England, CNBC, Argentex, U.S . Federal Reserve, Bank of, Apple, Intel, U.S . Bureau of Labor Statistics Locations: Frankfurt, Bank of Japan, Europe, Asia, Pacific

☆ We'll probably see more split votes from the Bank of England: Economist
▼ + stars: | 2024-08-02 | 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 EmailWe'll probably see more split votes from the Bank of England: EconomistDavid Owen, founder and chief economist at Saltmarsh Economics, says the Bank of England will "have to move very, very cautiously."

Persons: David Owen Organizations: Bank of England, Saltmarsh

☆ European markets head for mixed open ahead of Bank of England decision
▼ + stars: | 2024-08-01 | by ( Jenni Reid | ) www.cnbc.com time to read: +1 min

LONDON — European markets are set to open mixed on Thursday as investors process a raft of central bank action. The Bank of England announces its latest monetary policy decision at midday London time. Market pricing slightly favors a 25 basis point interest rate cut from the U.K. central bank, kicking off its path of monetary easing. Investors are still processing Wednesday's surprise move from the Bank of Japan, which raised its benchmark interest rate to around 0.25%, its highest level since 2008, and hinted at more tightening to come. The decision powered the yen to a four-and-a-half month high against the U.S. dollar, as Japanese stocks tumbled.

Persons: Germany's DAX, Jerome Powell, Powell Organizations: CAC, Bank of England, U.S, Bank of Japan, U.S . Locations: U.S . Federal, —

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