Market

Fed’s Williams downplays GDP weakness, sees rate hikes

The Federal Reserve could raise interest rates up to two times before year end, a top Fed official said on Friday as he downplayed data that showed the U.S. economy grew far less than expected in the last quarter. San Francisco Fed President John Williams said the second-quarter gross domestic product reading was weak because of swings in inventories and ... Read More »

Euro zone bank sector better equipped to handle stress: ECB

The euro zone’s biggest banks would fare better in case of stress than two years ago as they have amassed capital and made headway in fixing their balance sheets, the European Central Bank said on Friday after a stress test of the bloc’s 37 biggest banks. The banks entered the test with an average Common Equity Tier 1 capital ratio ... Read More »

Dollar slides on U.S. GDP, Japan bonds fall on BOJ move

Weak U.S. economic growth data knocked down the dollar and yields on U.S. government debt Friday, while Japanese government bond yields rose the most in eight years after investors reacted coolly to the Bank of Japan’s latest effort to boost the economy. The U.S. economy grew far less than expected in the second quarter as inventory investment fell for the ... Read More »

Steinhoff considers bid for Poundland

Poundland has been targeted for a takeover by Steinhoff, a South African retail conglomerate. Shares in the British discount retail chain rose 6% to 208p on Wednesday morning, valuing the company at more than £530m, after Steinhoff said that it was considering making an offer. The rise followed a 27% rise in Poundlandshares on Tuesday, driven by bid speculation among ... Read More »

Investors avoiding risk on weak global GDP outlook: Gundlach

Jeffrey Gundlach, chief executive of DoubleLine Capital, said on Friday that investors are dropping risky assets from their portfolios because of falling global Gross Domestic Product expectations, fueled by China’s slowing growth, and the intensifying U.S. presidential race. “Falling global GDP expectations, fueled by China having trouble holding it together, are affecting financial markets,” Gundlach said in an email to ... Read More »

China must quickly tackle rising corporate debt, warns IMF official

China must act quickly to address mounting corporate debt, a major source of worry about the world’s second-largest economy, a senior International Monetary Fund (IMF) official said on Saturday. David Lipton, first deputy managing director of the IMF, warned in a speech to a group of economists in the southern city of Shenzhen that companies’ indebtedness is a “key fault ... Read More »

Oil down 3 percent as U.S. drillers add rigs, strong dollar weighs

Oil prices settled down 3 percent on Friday after data showing the U.S. oil drilling rig count rising for a second week in row and a stronger dollar weighed on demand for greenback-denominated crude futures. A slide of more than 1 percent in Wall Street share prices .SPX, the largest since April, also prompted pre-weekend profit-taking in Brent and U.S. ... Read More »

Elusive S&P record looms as investors weigh data, Fed

With the S&P 500 again coming close to a record this week before falling back, investors will turn next week to a full slate of economic data and a Federal Reserve meeting in hope of fresh reasons whether to drive stocks to new highs. The benchmark large-cap index flirted with the current record when a rally to start the week ... Read More »

Japan to conduct appropriate JGB management to secure stable absorption

Chief Cabinet Secretary Yoshihide Suga said on Wednesday the Japanese government would continue to conduct an appropriate government bond management policy through close dialogue with markets to secure stable absorption of government debt. Suga, Japan’s top government spokesman, told a news conference that the government would closely monitor JGB markets. Bank of Tokyo-Mitsubishi UFJ said earlier it is considering quitting ... Read More »

‘Brump’ or ‘Trexit’? Markets may conflate year’s biggest risks

Even though market myopia is often used to explain why investors appear to be ignoring November’s U.S. presidential election while trading furiously around this month’s vote on Britain leaving the EU, the two events may end up being conflated. Fund managers and economists, including Harvard professor and Democrat grandee Lawrence Summers, puzzle endlessly as to why UK and European markets ... Read More »