* Documents part of case on criminal subpoenas. * Powell's attorneys met with Pirro on January 29. * If he stayed on board, Powell could be swing vote. By Howard Schneider.
The U.S. Federal Reserve Board tapped Robert Hur, a prominent former prosecutor who investigated former Democratic President Joe Biden's handling of classified documents, in its clash with the U.S. Justice Department over?records related to Fed Chair Jerome Powell, court filings showed on Friday.
S&P: * S&P: RATINGS ON SAUDI ARABIA AFFIRMED AT 'A+/A-1'; OUTLOOK STABLE. * S&P: STABLE OUTLOOK REFLECTS VIEW THAT SAUDI ARABIA WILL BE ABLE TO WEATHER THE ONGOING REGIONAL CONFLICT. * S&P: CURRENT BASE CASE IS THAT MAIN THREATS TO SAUDI ARABIA WILL BEGIN TO FADE BY END OF MARCH AS TENSIONS IN REGION BEGIN TO FALL.
* Pirro's probe of Powell seen as attack on Fed independence. * Senator Tillis blocks Warsh nomination until probe ends. * Powell chair term ends May 15, pending Warsh confirmation. By Howard Schneider.
* Brent crude settles above $100 per barrel for the first time since August 2022. * Q4 GDP slashed in half, PCE inflation remains elevated, capital goods orders disappoint. * Meta drops following report of AI rollout postponement. * Adobe falls after CEO Shantanu Narayen to leave amid AI disruption worries. By Stephen Culp and Johann M Cherian.
A federal judge on Friday blocked subpoenas issued by the U.S. Justice Department as part of its criminal investigation into Federal Reserve Chair Jerome Powell's handling of renovations of historic buildings used by the central bank.
* Justice Department to appeal judge's decision. * Powell says investigation a threat to Fed's independence. * Judge sees "no evidence whatsoever" of Powell wrongdoing. * Friday's events keep Warsh nomination in limbo in Senate. By Andrew Goudsward and Ann Saphir.
Barclays (BCS) on Friday joined Goldman Sachs in delaying its forecast for the U.S. Federal Reserve's first interest rate cut this year to September from June, citing heightened risks to inflation from the conflict in the Middle East.
A federal judge on Friday said he was blocking subpoenas that the Justice Department served to Federal Reserve Chair Jerome Powell in a probe purported to be about the management of the central bank's renovation, NBC News reported.
* Dollar index at highest since November. * Energy-sensitive currencies such as euro under pressure. * US consumer spending, core PCE inflation firmer before Iran war. * Traders bet on Fed rate cut by September. * Yen in intervention territory. By Saqib Iqbal Ahmed.
* Indexes down: Dow off 0.07%, S&P 500 down 0.47%, Nasdaq drops 0.97% * Q4 GDP slashed in half, PCE inflation remains elevated, capital goods orders disappoint. * Meta drops following report of AI rollout postponement. * Adobe falls after CEO Shantanu Narayen to leave amid AI disruption worries. By Stephen Culp and Johann M Cherian.
S&P: * S&P: ESCALATION OF MIDDLE EAST WAR COULD HAVE LONG-LASTING EFFECTS ON U.S. ECONOMY & CREDIT CONDITIONS. * S&P: NEGATIVE SUPPLY SHOCK FROM MIDDLE EAST WAR WILL LOWER U.S. GDP GROWTH AND RAISE INFLATION. * S&P: EXPECT U.S. OIL & GAS PRODUCERS WILL BENEFIT FROM ELEVATED OIL PRICES DUE TO MIDDLE EAST WAR. * S&P: DON'T EXPECT MIDDLE EAST WAR TO MATERIALLY AFFECT U.S. BANKS.
China's central bank moved to rein in the fast-rising yuan on Friday, scrapping risk reserves requirements for forex forward contracts in a move that would encourage dollar buying as exporters start to feel the pinch from a stronger currency. The decision came after the yuan hit a near three-year high against the dollar on Thursday.
* FTSE 100 down 0.4%, FTSE 250 down 0.4% * ONS data shows UK's economy stalled in January. * HSBC (HSBC), Standard Chartered (SCBFF) hit by Middle East conflict. * Energy index rises as crude prices exceed $100 per barrel. By Tharuniyaa Lakshmi.
Embattled Chinese property developer Fantasia on Friday unveiled detailed terms of its offshore debt restructuring, including plans to issue new equity, convertible bonds and long-dated secured notes. Fantasia is attempting to restructure about $4.66 billion of its offshore debt, through new shares, mandatory convertible bonds and about $1.44 billion in new secured notes to settle creditor claims.
* Dow up 0.02%, S&P 500 down 0.16%, Nasdaq down 0.47% * US consumer spending, core PCE inflation firmer in January. * Meta down 3%; report says AI model 'Avocado' rollout pushed to May or later. * Adobe falls 6.6% after CEO Shantanu Narayen to leave. By Johann M Cherian and Utkarsh Hathi.
* Canadian dollar falls 0.6% against the greenback. * Touches its weakest since March 3 at 1.3722. * Canada's economy sheds 83,900 jobs in February. * Bond yields fall across the curve. By Fergal Smith.
* Dollar index at highest since November. * Energy-sensitive currencies such as euro under pressure. * US consumer spending, core PCE inflation firmer before Iran war. * Traders bet on Fed rate cut by September. * Yen in intervention territory. By Saqib Iqbal Ahmed.
The majority of a panel of Brazil's Supreme Court voted on Friday to keep the owner of liquidated lender Banco Master, Daniel Vorcaro, in jail. The businessman was detained earlier this month after a judge cited "strong indication" that Vorcaro attempted to bribe a former central bank director with gifts in return for preferential treatment.
* Consumer spending increases 0.4% in January. * Personal Consumption Expenditures price index excluding food and energy rises 0.4%; up 3.1% year-on-year. * Core capital goods orders unchanged; shipments fall 0.1% By Lucia Mutikani.
* Indexes up: Dow 0.42%, S&P 500 0.43%, Nasdaq 0.40% * US consumer spending, core PCE inflation firmer in January. * Meta down 1.8%; report says AI model 'Avocado' rollout pushed to May or later. * Adobe falls 6.5% after CEO Shantanu Narayen to leave. By Johann M Cherian and Utkarsh Hathi.
U.S. consumer sentiment ebbed in early March as war in the Middle East raised gasoline prices and households worried about personal finances, a survey showed on Friday. The University of Michigan's Surveys of Consumers said its Consumer Sentiment Index fell to 55.5 this month from a final reading of 56.6 in February.
The U.S. Commerce Department said on Friday its Personal Consumption Expenditures Price Index rose largely in line with expectations in January, the latest sign that inflation remained relatively well behaved ahead of the war with Iran that began last month.
The U.S. Commerce Department said on Friday its Personal Consumption Expenditures Price Index rose largely in line with expectations in January, the latest sign that inflation remained relatively well behaved ahead of the war with Iran that began last month.
U.S. economic growth slowed more sharply than initially thought in the fourth quarter amid downward revisions to consumer spending and business investment, government data showed on Friday.
* Futures up: Dow 0.58%, S&P 500 0.55%, Nasdaq 0.55% * US consumer spending, core PCE inflation firmer in January. * Meta down 1.3%; report says AI model 'Avocado' rollout pushed to May or later. * SentinelOne slips 3.7% after bleak forecasts. By Johann M Cherian and Utkarsh Hathi.
U.S. economic growth slowed more sharply than initially thought in the fourth quarter amid downward revisions to consumer spending and business investment, government data showed on Friday.
* BRAZIL'S CENTRAL BANK SELLS $1 BILLION IN SPOT DOLLAR AUCTION - STATEMENT. * BRAZIL'S CENTRAL BANK SELLS 20,000 REVERSE FX SWAP CONTRACTS AT AUCTION - STATEMENT.
The Federal Reserve will probably next cut interest rates in September, traders bet on Friday after government data showed inflation by the Fed's targeted measure wasn't quite as hot as feared at the start of the year. Before the data, which showed a 2.8% year-on-year rise in the personal consumption expenditures price index in January, the betting had been for a first Fed rate cut in October.
U.S. consumer spending increased solidly in January amid higher prices, and the dragging Middle East conflict threatens to add to inflation, bolstering expectations that the Federal Reserve would not resume cutting interest rates before September.
U.S. consumer spending increased slightly more than expected in January, which together with continued strength in underlying inflation and the dragging war in the Middle East bolstered economists' views that the Federal Reserve would not resume cutting interest rates for some time.
U.S. stock index futures extended gains slightly on Friday as investors assessed data on inflation and economic growth for cues on the Federal Reserve's policy path. The Personal Consumption Expenditure index, the Federal Reserve's preferred inflation gauge, rose 0.3% in January, on a monthly basis, in line with economists' estimates of a 0.3% rise.
U.S. stock index futures extended gains slightly on Friday as investors assessed data on inflation and economic growth for cues on the Federal Reserve's policy path. The Personal Consumption Expenditure index, the Federal Reserve's preferred inflation gauge, rose 0.3% in January, on a monthly basis, in line with economists' estimates of a 0.3% rise.
Brazil's services activity grew slightly more than expected in January compared with the previous month, data from the statistics agency IBGE showed on Friday, ahead of the central bank's interest rate decision next week. * The main driver of Latin America's largest economy rose 0.3% in January from December, IBGE said. * Economists in a Reuters poll had expected a 0.1% increase.
* Canada sheds 83,900 jobs in February, after January decline. * Average hourly wage of permanent employees grows 4.2% * Analysts predicted 10,000 job gains, jobless rate 6.6% By Promit Mukherjee.
* Futures up: Dow 0.27%, S&P 500 0.27%, Nasdaq 0.23% * GDP, inflation data at 8:30 a.m. ET. * Meta down 1%; report says AI model 'Avocado' rollout pushed to May or later. * SentinelOne slips 5.3% after bleak forecasts. By Johann M Cherian and Utkarsh Hathi.
* FTSE 100 down 0.3%, FTSE 250 down 0.7% * ONS data shows UK's economy stalled in January. * HSBC (HSBC) and Standard Chartered (SCBFF) hit by Middle East conflict. * Energy index rises as oil prices exceed $100 per barrel. By Tharuniyaa Lakshmi.
Aluminium fell sharply on Friday, snapping three days of gains, as the dollar strengthened, although shipping disruptions amid the ongoing Middle East war kept the market on edge. Benchmark three-month aluminium on the London Metal Exchange was down 2.3% at $3,436.50 per metric ton as of 1700 GMT. "The biggest moving part there is the dollar," said Panmure Liberum analyst Tom Price.
* Gold down about 1.7% so far this week. * Iran vows to keep Strait of Hormuz closed. * Delayed US January PCE data due later today. By Ishaan Arora. Gold was on track for a second straight weekly loss, even as it edged higher on Friday, as surging oil prices dampened rate cut bets and caused investors to cover margin calls, while a rising dollar and U.S. yields also pressured prices.
New bank lending in China slumped far more than expected in February, retreating sharply from a seasonally strong start to the year as weak credit appetite continued to drag on borrowing in the world's second-largest economy.
* European stocks set for biggest two-week drop in a year. * U.S. futures point to moderate falls after steep falls in previous session. * Investors focus on oil prices, inflation risks. * Traders rapidly cut Fed rate cut wagers for the year. * Dollar stands tall, pushing yen to 20-month lows. By Lucy Raitano and Ankur Banerjee.
Global equity funds recorded the largest weekly outflows since mid-December in the seven days to March 11 as disruptions to oil supplies stemming from the ongoing U.S.-Israel conflict with Iran stoked concerns about inflation and global economic growth.
Chances for President Donald Trump's Federal Reserve chair nominee Kevin Warsh to quickly loosen monetary policy are dwindling in the eyes of investors and analysts who have begun to question how far Warsh can steer his colleagues towards lower borrowing costs if an ongoing oil price shock persists.
Investors will seek clarity in the coming week on how much the Middle East conflict is complicating expectations for interest-rate cuts this year, as they brace for developments in the Iran war that could rattle markets.
* US central bank expected to hold rates steady on Wednesday. * Investors look to updated economic projections, view of Middle East fallout. * Surging oil prices in focus as inflation pressure point. By Lewis Krauskopf.
Global equity funds recorded the largest weekly outflows since mid-December in the seven days to March 11 as disruptions to oil supplies stemming from the ongoing U.S.-Israel conflict with Iran stoked concerns about inflation and global economic growth.
New bank lending in China slumped far more than expected in February, retreating sharply from a seasonally strong start to the year as weak credit appetite continued to drag on borrowing in the world's second-largest economy.
China's banks extended 900 billion yuan in new yuan loans in February, plunging from 4.71 trillion yuan in January and missing analysts' forecasts, according to Reuters calculations based on data released by the People's Bank of China. The PBOC does not provide monthly breakdowns.
Aluminium slid on Friday as supply concerns eased and the dollar firmed, with elevated energy prices dimming prospects of U.S. rate cuts, although persistent shipping disruptions via the Strait of Hormuz kept prices on track for weekly gains. The most-active aluminium contract on the Shanghai Futures Exchange closed daytime trade down 1.4% at 24,960 yuan a metric ton.
* U.S. Fed, Bank of Canada rate decisions Wednesday. * Europe, Japan central banks meet Thursday. * Iran war keeps markets on edge. War in the Middle East is driving up energy prices sharply and that puts central banks, scarred by 2022's inflation surge, in a sticky spot.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
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