Venezuelan President Nicolas Maduro expects the South American country's economy grew by more than 4% last year, following eight years of recession and rising prices, he said on Saturday. Venezuela's central bank has not updated figures for the country's gross domestic product since the third quarter of 2019, when GDP contracted 26.8% versus the same period in 2018.
China's economy likely grew at the slowest pace in 1-1/2 years in the fourth quarter, dragged by weaker demand due to a property downturn, curbs on debt and strict COVID-19 measures, raising heat on policymakers to roll out more easing steps.
* China Q4 GDP growth seen slowing to 3.6% y/y, vs Q3's 4.9% * Growth seen at 8.0% in 2021, 5.2% in 2022. * Q4 GDP, Dec activity data due Jan. 17 at 0200 GMT. * Expectations of more policy easing are growing. By Kevin Yao.
France's stronger than expected economic recovery last year means the public sector budget deficit should come in better than planned, the budget minister said in an interview published on Sunday.
* FITCH REVISES ANDORRA'S OUTLOOK TO POSITIVE; AFFIRMS AT 'BBB+' * FITCH SAYS EXPECTS RECOVERY IN GDP GROWTH AND DECLINE IN FISCAL SUPPORT IN ANDORRA TO UNDERPIN A RETURN TO GENERAL GOVERNMENT FISCAL SURPLUS IN 2022. * FITCH ON ANDORRA SAYS IN 2022, EXPECT DIRECT TAX REVENUES TO BENEFIT FROM HIGH EMPLOYMENT RATE, WHICH WAS AT ITS HIGHEST LEVEL IN 10 YEARS IN 3Q21.
* U.S., European and Asian stocks down. * Profitability warning from JPMorgan (JPM) casts pall. * Falls follow signals from U.S. Fed policymakers. * Oil rallies; U.S. dollar steady after 3-day decline. By Koh Gui Qing.
* Dollar index up 0.3% * U.S. retail sales plunge in December. By Saqib Iqbal Ahmed. The U.S. dollar snapped a three-day losing streak on Friday as the recent selling spree driven by the view that Federal Reserve tightening moves were largely priced in abated, and as weaker risk appetite in financial markets led investors to shun riskier currencies.
Canada's low-carbon transition poses important risks for some sectors, and delaying actions to prepare could expose financial institutions and investors to "sudden and large losses," the country's central bank and financial regulator said in a report on Friday.
Raising interest rates in the euro zone would not push down soaring energy prices, European Central Bank board member Isabel Schnabel said in remarks published on Friday, adding that any tightening of monetary policy would have an impact much later. "We must not raise interest rates too early," Sueddeutsche Zeitung quoted Schnabel as saying in an interview.
The election of Donald Trump threw Federal Reserve officials into a scramble to determine what it meant for the American economy, the world, and the U.S. central bank's own standing, according to transcripts of Fed meetings from 2016.
U.S. President Joe Biden's decision to nominate Sarah Bloom Raskin to lead regulation and supervision at the Federal Reserve will put a progressive in the most powerful role overseeing Wall Street's biggest banks.
As Federal Reserve officials remove the extraordinary support offered to the economy during the pandemic, the next step will be to raise interest rates and then reduce the size of the central bank's balance sheet, New York Federal Reserve Bank President John Williams said Friday.
Lebanon's central bank said on Friday it aimed to boost the Lebanese pound's value by easing restrictions on dollar purchases after the currency hit a record low, fuelling fresh protests about rising prices and a collapsing economy.
It is "sensible" for the Federal Reserve to begin raising interest rates this year as it removes some of the support provided during the pandemic, New York Fed President John Williams said Friday. The Fed will focus on economic data when deciding the exact timing and pace of future rate increases, Williams said, adding that it "makes sense" for the central bank to continue removing accommodation.
- The U.S. Federal Reserve returned more to the U.S. Treasury in 2021 compared to the year before, as its balance sheet grew to a record level and it continued to nurse the economy through the COVID-19 pandemic. In preliminary financial information, released on Friday, the central bank reported it earned $107.8 billion primarily on its asset holdings in 2021, up $19.3 billion from the year before.
It is "sensible" for the Federal Reserve to begin raising interest rates this year as it removes some of the support provided during the pandemic, New York Fed President John Williams said Friday. The Fed will focus on economic data when deciding the exact timing and pace of future rate increases, Williams said, adding that it "makes sense" for the central bank to continue removing accommodation.
The U.S. Federal Reserve returned more to the U.S. Treasury in 2021 compared to the year before, as its balance sheet grew to a record level and it continued to nurse the economy through the COVID-19 pandemic. In preliminary financial information, released on Friday, the central bank reported it earned $107.8 billion primarily on its asset holdings in 2021, up $19.3 billion from the year before.
- San Francisco Federal Reserve Bank president Mary Daly on Friday said COVID-19 is the main reason for overly high inflation, and the U.S. central bank needs to raise interest rates to reduce demand to bring it better in line with crimped supply.
U.S. retail sales dropped by the most in 10 months in December, likely the result of Americans starting their holiday shopping in October to avoid empty shelves at stores. Economists cautioned against reading the unexpected plunge in retail sales last month reported by the Commerce Department on Friday as a sign of weakness.
San Francisco Federal Reserve Bank president Mary Daly on Friday said COVID-19 is the main reason for overly high inflation, and the U.S. central bank needs to raise interest rates to reduce demand to bring it better in line with crimped supply.
- U.S. central bankers, in a last flurry of public comments before their upcoming January policy meeting, are making it crystal clear: they'll likely start raising interest rates as early as March to rein in high inflation likely to be made worse by the current surge of COVID-19.
- U.S. bond funds faced outflows for the first time in four weeks in the seven days to Jan. 12 on rising prospects that the U.S. Federal Reserve will begin tightening its policy with an interest rate hike as early as March. According to Refinitiv Lipper data, investors offloaded U.S. bond funds of $3.15 billion, marking the first weekly outflow since Dec. 15.
U.S. holiday sales hit a record $886.7 billion in 2021, data from a trade body showed on Friday, as people rushed to buy gifts online and in stores amid a jump in COVID-19 cases and supply chain issues that threatened to upend the crucial shopping season.
The surge of infections caused by the Omicron COVID-19 variant may slow growth over the next several months and prolong supply chain challenges, but the U.S. economy should return to a stronger trajectory after the wave passes, New York Federal Reserve Bank President John Williams said Friday.
Lebanon's central bank said on Friday it was seeking to strengthen the Lebanese pound against the dollar after it weakened to a record low this week, fuelling fresh protests about rising prices and the country's collapsing economy.
U.S. bond funds faced outflows for the first time in four weeks in the seven days to Jan. 12 on rising prospects that the U.S. Federal Reserve will begin tightening its policy with an interest rate hike as early as March. According to Refinitiv Lipper data, investors offloaded U.S. bond funds of $3.15 billion, marking the first weekly outflow since Dec. 15.
U.S. Treasury yields were higher on Friday in choppy trade following a round of soft economic data on consumer spending and manufacturing activity. Yields moved lower after the Commerce Department said retail sales dropped 1.9% in December after a 0.2% rise in the prior month, well short of the unchanged forecast, as Americans grappled with a sharp climb in COVID-19 cases and a shortage of goods.
- U.S. consumer sentiment soured in early January, falling to the second lowest level in a decade as Americans fretted about soaring inflation, a survey showed on Friday. The University of Michigan said its preliminary consumer sentiment index fell to 68.8 in the first half of this month from a final reading of 70.6 in December.
U.S. consumer sentiment soured in early January, falling to the second lowest level in a decade as Americans fretted about soaring inflation, a survey showed on Friday. The University of Michigan said its preliminary consumer sentiment index fell to 68.8 in the first half of this month from a final reading of 70.6 in December.
The U.S. economy is improving and better off than it was a year ago, but it is still dealing with risks and challenges as some businesses struggle to hire workers, Philadelphia Federal Reserve President Patrick Harker said Friday.
* Dollar index up 0.1% * U.S. retail sales plunge in December. By Saqib Iqbal Ahmed. The U.S. dollar was on track to snap a 3-day losing streak on Friday as a selling spree driven by the view that Federal Reserve tightening moves were largely priced-in appeared to abate.
U.S. retail sales dropped by the most in 10 months in December, likely the result of Americans starting their holiday shopping in October to avoid empty shelves at stores. Economists cautioned against reading the unexpected plunge in retail sales last month reported by the Commerce Department on Friday as a sign of weakness.
Production at U.S. factories unexpectedly fell in December, pulled down by a decline in output at motor vehicle plants amid an ongoing global semiconductor shortage. Manufacturing output dropped 0.3% last month after increasing 0.6% in November, the Federal Reserve said on Friday.
* Retail sales fall 1.9% in December. * Core retail sales tumble 3.1%; November revised down. * Manufacturing production slips 0.3% By Lucia Mutikani. U.S. retail sales dropped by the most in 10 months in December, likely the result of Americans starting their holiday shopping in October to avoid empty shelves at stores.
U.S. President Joe Biden on Friday nominated former Federal Reserve Governor Sarah Bloom Raskin for the Fed's key regulatory post and economists Lisa Cook and Philip Jefferson to serve on its board in what would represent a landmark demographic overhaul of the world's most powerful central bank.
Global bond funds faced their first weekly outflow in four weeks in the seven days to Jan. 12 on expectations that the U.S. Federal Reserve will raise rates as many as four times this year, triggered by elevated levels of inflation. Investors sold global bond funds of $2.25 billion, marking their first weekly net selling since Dec. 15, Refinitiv Lipper data showed.
U.S. President Joe Biden on Friday nominated former Federal Reserve Governor Sarah Bloom Raskin to be the central bank's vice chair for supervision and two Black economists, Lisa Cook and Philip Jefferson, to serve on its board of governors, the White House said on Friday.
U.S. President Joe Biden on Friday nominated former Federal Reserve Governor Sarah Bloom Raskin to be the central bank's vice chair for supervision and two Black economists, Lisa Cook and Philip Jefferson, to serve on its board of governors, the White House said on Friday.
* European stocks down, stocks also fell in Asia. * Falls follow signals from U.S. Fed policymakers. * U.S. dollar down for fourth consecutive day. By Elizabeth Howcroft.
Euro zone bond yields resumed their rise in choppy trading on Friday as central bank tightening remained the main investor focus, but sharp falls earlier this week set Germany's benchmark 10-year yield for its biggest weekly fall in six weeks.
Retail sales in Brazil rose 0.6% in November from October, government statistics agency IBGE said on Friday, while a Reuters poll of economists forecast a 0.2% drop. Sales fell 4.2% from the same month a year earlier, versus a 6.5% decline projected by economists.
The U.S. dollar fell for a fourth consecutive day on Friday to its lowest in more than two months as investors took the view that most of the recent hawkishness from the U.S. central bank has already been priced in. On Friday, the greenback slipped 0.2% to 94.62 against a basket of currencies, its lowest since early November.
Central European currencies
firmed on Friday, as higher-than-expected inflation data in
Hungary and Romania indicated that rate hikes could continue in
the region.
With U.S. earnings season well underway, banking heavyweights such as Goldman Sachs (GS) are lining up to report next. Davos goes virtual for a second year and how long will the pound prove resilient to Britain's rising political uncertainty?
China's central bank published draft rules on Friday to strengthen risk management over the use of commercial bills, and set up caps for banks' commercial bills financing business, according to a statement.
The euro zone swung to a small trade deficit in November from a large surplus 12 months earlier because of a surge in the cost of imported oil and gas, data from the European Union's statistics office Eurostat showed on Friday. Eurostat said the non-adjusted trade deficit of the 19 countries sharing the euro was 1.5 billion euroscompared to a 25.0 billion euro surplus in November 2020.
German Economy Ministry: * GERMAN ECONOMY MINISTRY SAYS Q4 GROWTH TO BE SUBDUED DUE TO PRODUCTION DIFFICULTIES, COVID RESTRICTIONS. * GERMAN ECONOMY MINISTRY SAYS INFLATION UPWARDS TREND TO WEAKEN NOTICEABLY FROM JANUARY, BUT STILL AT PRE-CRISIS LEVEL. * GERMAN ECONOMY MINISTRY SAYS ONGOING SUPPLY BOTTLENECKS FOR IMPORTANT PRIMARY PRODUCTS ARE LIKELY TO PERSIST FOR A WHILE.
* European stocks down, stocks also fell in Asia. * Falls follow signals from U.S. Fed policymakers. * U.S. dollar fell for fourth consecutive day. By Elizabeth Howcroft. European stocks dropped in early trading on Friday after more Fed policymakers signalled they will start to raise U.S. interest rates in March to combat inflation.
The U.S. dollar fell for a fourth consecutive day on Friday to its lowest in more than two months as investors took the view that most of the recent hawkishness from the U.S. central bank has already been priced in. With hedge fund positioning holding close to the highest since early 2020 and terminal U.S. rate pricing signalling peak rates at below 2%, far below the highs of previous Federal R...
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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