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☆ US stocks slide as traders wait for lawmakers to vote on debt ceiling deal
▼ + stars: | 2023-05-31 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

Stocks slid on Wednesday ahead of a House vote to resolve the debt-ceiling crisis. The price of credit default swaps linked to US debt show investors think a default is possible, though unlikely. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. The deal, negotiated by President Joe Biden and House Speaker Kevin McCarthy over the weekend, passed the House Rules Committee with a 7-6 vote on Tuesday night, with a full House vote scheduled for Wednesday evening. Markets have lowered their expectations of a US debt default, though the price of credit default swaps tied to US debt still show that investors think a default is possible.

Persons: Stocks, —, Joe Biden, Kevin McCarthy, Philip Jefferson, Patrick Harker Organizations: Dow, Service, Dow Jones, Nasdaq, Philadelphia Fed Locations: China

☆ Morning Bid: China factory fright, dollar surges
▼ + stars: | 2023-05-31 | by ( ) www.reuters.com time to read: +4 min

The yuan , now down more than 3% from its early May peaks, skidded to its lowest level of the year against the dollar as investors considered the possibility of further credit easing by the Chinese central bank. The dollar index hit its highest level since mid-March, with the European inflation news and China demand picture knocking the euro to its lowest in two months too. German import prices fell at an annual rate of 7% in April and the ECB's financial stability report warned about a "disorderly" hit to house prices from higher mortgage rates. The House Rules Committee voted 7-6 on Tuesday to approve the rules allowing a debate and vote by the full chamber. Overall, stock markets slipped back slightly - with Hong Kong's Hang Seng index the big underperformer after the Chinese factory release.

Persons: Mike Dolan, Loretta Mester, Philip Jefferson, Susan Collins, Patrick Harker, Christine Lagarde, Jane Merriman Organizations: Federal Reserve, Cleveland Fed, Wednesday's Financial, European Central Bank, Dallas Fed, Boston, Philadelphia Fed, Consumer, Thomson, Reuters Locations: U.S, Europe, China, Italy, Chicago

If the PMI data on Thursday from Japan, Australia, India, South Korea and others are as gloomy as China's official PMI figures were on Wednesday, markets are in for a torrid start to the new month. The Caixin manufacturing PMI report on Thursday is also expected to show manufacturing activity shrank in May, but at the same pace as April. Barring a huge upside surprise, China's economy appears to be sputtering and the pressure on local assets is growing. Dovish remarks from Fed Governor Philip Jefferson and Philadelphia Fed President Patrick Harker on Wednesday helped lower U.S. bond yields and implied rate expectations. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Jamie McGeever, Elon Musk, Brent, Philip Jefferson, Patrick Harker Organizations: PMI, Twitter, Philadelphia Fed, Thomson, Reuters Locations: Asia, Pacific, Japan, Australia, India, South Korea, China, Shanghai, prelim

☆ Fed Gov. Jefferson: Skipping rate hike at the coming meeting would allow committee to see more data
▼ + stars: | 2023-05-31 | 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 EmailFed Gov. Jefferson: Skipping rate hike at the coming meeting would allow committee to see more dataCNBC’s Steve Liesman reports on the latest remarks from Federal Reserve Governor Philip Jefferson on rate hikes.

Persons: Steve Liesman, Philip Jefferson Organizations: Jefferson, Federal

☆ Next week promises any debt deal relief may prove short-lived with jobs report, Fed decision looming
▼ + stars: | 2023-05-26 | by ( Scott Schnipper | ) www.cnbc.com time to read: +5 min

"The overhangs on the market this year [are] the debt ceiling negotiation, hawkish Fed commentary and a banking crisis. It appears we are going to get a debt ceiling deal over the weekend, which should help the market to stabilize." The problem for many on the Street is the action in the S & P 500 Tech Index, up more than 5% this week; the Nasdaq Composite , ahead about 2.5%; and the S & P 500 , with a 0.3% gain, masks so much weakness beneath the surface. The S & P 500 consumer staples, materials, health care and utilities were all down between 2.4% and 3.2% this week, and the Dow Industrials were lower 1%. Although the S & P 500 is 9.5% higher so far in 2023, only a few stocks are doing well. "

☆ Telco tycoons’ UK bets look stuck underwater
▼ + stars: | 2023-05-25 | by ( Pamela Barbaglia | ) www.reuters.com time to read: +5 min

Set those complications aside, however, and his stake-building may have cost about 4.2 billion pounds overall since 2021. That’s according to Breakingviews calculations which use the share price from the day before each stake increase became public. The holding is now worth 3.6 billion pounds, implying a nearly 560 million pound or 13% loss. That’s mild compared with some of Vodafone’s investors. But UK consolidation would hardly move the needle as Vodafone is haggling to retain control of the merged entity.

"The risks of doing too much or doing too little are becoming more balanced and our policy adjusted to reflect that," Powell said. Ahead of a June 13-14 policy meeting "we haven't made any decisions about the extent to which additional policy firming will be appropriate." U.S. policymakers remain on the fence about their upcoming rate decision, and Powell's appearance on Friday was a moment that could have provided clarity. But the central bank will still receive important jobs and inflation data in coming weeks that could sway the debate. If an actual U.S. debt default is the result, the central bank may even be pushed towards emergency steps to ease the burden on the economy.

WASHINGTON, May 19 (Reuters) - Wall Street, small businesses and potential homebuyers may all breath a sigh of relief if the Federal Reserve chooses not to raise interest rates at its policy meeting next month, as many traders and analysts expect. If an actual U.S. debt default is the result, the central bank may even be pushed towards emergency steps to ease the burden on the economy. "I would say it was a pause, but a pause could be a 'skip,' or it could be a hold," Bostic said. Data on inflation, jobs, and the banking industry since then have done little to clarify the situation, with nothing seeming to change very fast. Reporting by Howard Schneider; Editing by Dan Burns and Paul SimaoOur Standards: The Thomson Reuters Trust Principles.

☆ BT is cutting 55,000 jobs. Its CEO says AI could replace 10,000 of those by 2030.
▼ + stars: | 2023-05-19 | by ( Aaron Mcdade | Sindhu Sundar | ) www.businessinsider.com time to read: +3 min

British telecommunications giant BT said it will cut between 40,000 and 55,000 jobs by 2030. British telecommunications giant BT Group said it's planning to cut as many as 55,000 jobs by 2030 — and at least 10,000 of those jobs could be replaced by some form of artificial intelligence. BT Group CEO Philip Jansen said on an earnings call that the company will be a "beneficiary of AI — unequivocally," according to CNN. Jansen estimated that about 10,000 of the jobs BT will eliminate can be replaced by processes of "digitization and automation," like AI replacements. Now there's also a little research indicating how workers, particularly those in customer service, are interacting with such tools.

☆ Watch Fed Chairman Jerome Powell speak live on monetary policy
▼ + stars: | 2023-05-19 | by ( Jeff Cox | ) www.cnbc.com time to read: +1 min

Federal Reserve Chairman Jerome Powell speaks Friday at the "Perspectives on Monetary Policy" panel at the Thomas Laubach Research Conference the central bank is hosting in Washington, D.C. The remarks come with markets suddenly divided on where the Fed goes from here. Market pricing Friday morning indicated about a 35% probability the Fed might approve another interest rate hike when it meets in June, according to the CME Group. The Fed next week will release minutes from its meeting earlier in May at which it approved its 10th interest rate hike since March 2022. Read more:Dallas Fed President Logan says current data doesn't justify pausing rate hikes yetFed Governor Philip Jefferson named as new vice chair to succeed Lael BrainardFed increases rates a quarter point and signals a potential end to hikes

☆ Growing debt ceiling deal hopes send stocks higher
▼ + stars: | 2023-05-18 | by ( Chuck Mikolajczak | ) www.reuters.com time to read: +4 min

The benchmark S&P 500 index (.SPX) rebounded from early declines on news that top U.S. congressional Republican Kevin McCarthy said a deal to raise or suspend the debt ceiling could potentially be reached in time to hold a House vote next week. On Wednesday, President Joe Biden and McCarthy reiterated their aim to strike a deal soon to raise the $31.4 trillion federal debt ceiling and agreed to talk as soon as Sunday. The debt ceiling has drawn attention away from uncertainty about the Federal Reserve's stance on interest rates. Advancing issues outnumbered decliners on the NYSE by a 1.31-to-1 ratio; on Nasdaq, a 1.14-to-1 ratio favored advancers. The S&P 500 posted 27 new 52-week highs and seven new lows; the Nasdaq Composite recorded 88 new highs and 83 new lows.

☆ Debt ceiling optimism helps lift S&P 500, Nasdaq
▼ + stars: | 2023-05-18 | by ( Chuck Mikolajczak | ) www.reuters.com time to read: +4 min

The benchmark S&P 500 index (.SPX) rebounded from early declines on news that top U.S. congressional Republican Kevin McCarthy said a deal to raise or suspend the debt ceiling could potentially be reached in time to hold a House vote next week. On Wednesday, President Joe Biden and McCarthy reiterated their aim to strike a deal soon to raise the $31.4 trillion federal debt ceiling and agreed to talk as soon as Sunday. The debt ceiling has drawn attention away from uncertainty about the Federal Reserve's stance on interest rates. Declining issues outnumbered advancers on the NYSE by a 1.12-to-1 ratio; on Nasdaq, a 1.17-to-1 ratio favored decliners. The S&P 500 posted 23 new 52-week highs and seven new lows; the Nasdaq Composite recorded 77 new highs and 74 new lows.

☆ Fed's hawks make a pitch against a rate-hike pause
▼ + stars: | 2023-05-18 | by ( ) www.reuters.com time to read: +3 min

On Thursday, rate-futures markets reflected a one-in-three chance of a June rate hike, compared with a one-in-10-chance seen a week ago. The Fed has lifted borrowing costs at each meeting since March 2022, bringing them from near zero to a 5.00-5.25% range as of early this month. Consumer price inflation, for instance, edged down to a 4.9% annual pace in April but is still far above the Fed's 2% goal. However, his embrace of the idea that there is still a lot of policy tightening in the pipeline suggests he could be comfortable with a pause. Dallas Fed's Logan had the opposite presumption.

President Joe Biden and McCarthy reiterated their aim to strike a deal soon on Wednesday to raise the $31.4 trillion federal debt ceiling and agreed to talk as soon as Sunday. Growth stocks led gains, with Nvidia Corp (NVDA.O), Apple Inc (AAPL.O) and Microsoft Corp (MSFT.O) rising between 1% and 4.4%. Bath & Body Works Inc (BBWI.N) gained 9.6% after the beauty and skincare firm raised its annual profit forecast. Declining issues outnumbered advancers for a 1.07-to-1 ratio on the NYSE and for a 1.04-to-1 ratio on the Nasdaq. The S&P index recorded 22 new 52-week highs and four new lows, while the Nasdaq recorded 68 new highs and 50 new lows.

Inflation "is still too high, and by some measures progress has been slowing," Jefferson said in comments prepared for delivery to the National Association of Insurance Commissioners. While his baseline forecast does not include recession, he said he expects job growth to slow and the unemployment rate possibly rise over time. Jefferson did not indicate a preference for holding rates steady or proceeding with further rate increases at the Fed's June meeting, when a rate pause is widely expected. He said, however, he would "consider all these factors" in the context of jobs and inflation data still to be released before the June 13-14 meeting. "There is considerable uncertainty about the magnitude of the impact on household spending and business investment, and this uncertainty complicates economic outlook forecasts," Jefferson said.

☆ Morning Bid: Get ready for the debt ceiling rally
▼ + stars: | 2023-05-18 | by ( ) www.reuters.com time to read: +3 min

A look at the day ahead in European and global markets from Kevin BucklandEuropean shares look poised to rally after a wave of optimism that a U.S. debt ceiling deal could be reached as soon as the weekend, which lifted stocks on Wall Street and in Asia. Analysts highlighted how both parties agreed to new, smaller teams to continue negotiations, which they took as a sign that discussions have moved to a more advanced stage. Cash available at the U.S. Treasury general account, used to pay for all official U.S. obligations, is draining fast as extraordinary measures are exhausted, pending a debt ceiling deal to raise the limit. The Nasdaq is on the cusp of a 13-month peak, and the Dax is hovering near its highest since January of last year. Reporting by Kevin Buckland; Editing by Edmund KlamannOur Standards: The Thomson Reuters Trust Principles.

☆ BT’s miss may spur big investors into action
▼ + stars: | 2023-05-18 | by ( ) www.reuters.com time to read: +2 min

LONDON, May 18 (Reuters Breakingviews) - Trumpeting massive job cuts is usually one way to boost a share price. The 14 billion pound telco said on Thursday it would shed 55,000 jobs over the next seven years, but shares slumped 8%. That will stretch the patience of Deutsche Telekom (DTEGn.DE) and Patrick Drahi’s Altice, which collectively control 30% of the UK group. The catch for Drahi and Höttges is that it’s not obvious what they should demand to reinvigorate BT’s share price. Still, if the two bigwigs decide to join forces, BT’s job cuts may yet move up to the company’s C-suite.

☆ Dallas Fed President Logan says current data doesn't justify pausing rate hikes yet
▼ + stars: | 2023-05-18 | by ( Jeff Cox | ) www.cnbc.com time to read: +2 min

Dallas Federal Reserve President Lorie Logan said Thursday that the economic data points so far don't justify skipping a rate increase at the central bank's next meeting in June. While noting some progress in bringing down inflation and cooling the labor market, Logan said the Fed still has work to do in achieving its goal for price stability. But she expressed concern that what she's seen so far has indicated only modest impact from the Fed rate hikes, which have totaled 5 percentage points. And it's a long way from here to 2% inflation," Logan said, referring to the Fed's longer-run goal. She noted that the Fed's preferred inflation data point, the core personal consumption expenditures price index, ran at a 4.9% annualized pace in the first quarter.

☆ BT to cut up to 55,000 jobs by 2030 as fibre and AI arrive
▼ + stars: | 2023-05-18 | by ( Paul Sandle | ) www.reuters.com time to read: +2 min

By that time, the bulk of its full-fibre network build will be completed. But free cash flow (FCF) fell 5% to 1.3 billion pounds, at the lower end of its guidance, due to increased cash capital expenditure. Forecasts for free cash flow for 2024 were also lighter than analysts had expected. It has been investing heavily to build out its fibre network faster than rival Virgin Media O2 and smaller "alt nets". BT said it expected to grow both revenue and core earnings on a pro forma basis this year.

☆ BT to reduce workforce by up to 55,000 jobs by 2030
▼ + stars: | 2023-05-18 | by ( ) www.reuters.com time to read: +1 min

LONDON, May 18 (Reuters) - BT Group (BT.L), Britain's biggest broadband and mobile provider, said on Thursday it would reduce its workforce by up to 55,000 jobs by the end of the decade to become a much leaner business. The announcement came after it met market expectations with a 5% rise in full-year adjusted core earnings of 7.9 billion pounds ($10 billion) after growth in networks and consumer offset a decline in enterprise. "New BT Group will be a leaner business with a brighter future," he said. He said BT had grown both pro forma revenue and core earnings for the first time in six years in the year to end-March, while navigating an "extraordinary macro-economic backdrop". The group said it expected to grow both revenue and core earnings on a pro forma basis this year.

☆ BT jobs: Company will shed as many as 55,000 workers by 2030
▼ + stars: | 2023-05-18 | by ( Hanna Ziady | ) edition.cnn.com time to read: +1 min

London CNN —BT Group is planning to slash up to 55,000 jobs in the next five to seven years as it makes greater use of technology to cut costs and simplify its business. The UK telecom company said Thursday that its total workforce would fall to between 75,000 and 90,000 by 2028-2030, from 130,000 at present. “New BT Group will be a leaner business with a brighter future.”Earlier this week, Vodafone (VOD), once the world’s biggest mobile telecom group, said it would cut 11,000 jobs, or about 11% of its workforce, over three years. The company also unveiled a turnaround plan to revive its ailing fortunes under new CEO Margherita Della Valle. Its adjusted earnings rose 5% to £7.9 billion ($9.8 billion).

☆ Morning Bid: Debt ceiling drama aside, world economy looks shaky
▼ + stars: | 2023-05-18 | by ( ) www.reuters.com time to read: +3 min

A look at the day ahead in U.S. and global markets from Naomi RovnickRisk appetite has perked up on global markets thanks to optimism that U.S. Democrats and Republicans are nearing a deal to raise the debt ceiling and avoid an economically catastrophic default. But while a debt ceiling reprieve could boost markets in coming days, the backdrop of a lacklustre global economy is unchanged, with its twin engines, China and the United States, sputtering. Citi's China economic surprise index is at its lowest since January (.CESICNY), a further sign that the growth outlook has weakened. The S&P 500 is trading at a rich 18 times forecast earnings, buoyed by the tech mega-stocks that dominate the index. Developments that could affect markets on Thursday:* Economic events: U.S. initial jobless claims, U.S. existing home sales, Philly Fed business index.

☆ British telecom giant BT to cut up to 55,000 jobs by 2030
▼ + stars: | 2023-05-18 | by ( Ruxandra Iordache | ) www.cnbc.com time to read: +1 min

LONDON — U.K. telecommunications giant BT Group said Thursday it will cut between 40,000 to 55,000 of its workforce between 2028 and 2030. The layoffs, which will include both direct BT employees and third-party workers, will mark a 31-42% reduction in company staffing. New BT Group will be a leaner business with a brighter future," BT Chief Executive Philip Jansen said in a statement. BT's last large-scale workforce reduction saw the company announce in 2018 that it would slash 13,000 posts over a three-year period. BT shares were down 8% by 9:30 a.m. London time.

Dow Jones Industrial Average (.DJI) constituent Cisco Systems Inc (CSCO.O) slipped 1.7% after it said a large backlog of products weighed on demand for new orders from customers. Shares of Walmart Inc (WMT.N) rose 2.8% after the retailer raised its annual sales and profit targets, benefiting from inflation-wary consumers trading down to cheaper groceries. And you got a little follow through from the optimism around getting a (debt ceiling) deal done," said Thomas Hayes, chairman at Great Hill Capital LLC. Bath & Body Works Inc (BBWI.N) gained 8.7% after the beauty and skincare firm raised its annual profit forecast. Declining issues outnumbered advancers for a 2.30-to-1 ratio on the NYSE and for a 1.47-to-1 ratio on the Nasdaq.

☆ A Look at Philip Jefferson, the Fed’s Likely Next No. 2 - The New York Times
▼ + stars: | 2023-05-15 | by ( Peter Coy | ) www.nytimes.com time to read: +1 min

Philip Jefferson, an economist who joined the Federal Reserve’s Board of Governors in May 2022, was nominated by President Biden on Friday to be its vice chair. I didn’t write about his appointment last year; his proposed elevation gives me a second chance to discuss his ideas. He became a Fed staff economist, a professor and then the vice president for academic affairs and dean of faculty at Davidson College in North Carolina. On the Board of Governors he is considered a centrist. If confirmed as vice chair, as is expected, Jefferson would become the second Black person to serve in the post, following Roger W. Ferguson Jr., who held it from 1999 to 2006.

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