President Donald Trump on Thursday moved to tear up decades-old low U.S. tariff rates, raising them to match those of other countries and counteract other barriers to American goods to try to shrink a U.S. goods trade deficit that topped $1.2 trillion last year.
President Donald Trump on Thursday moved to tear up decades-old low U.S. tariff rates, raising them to match those of other countries and counteract other barriers to American goods to try to shrink a U.S. goods trade deficit that topped $1.2 trillion last year.
* Core PCE seen lower after PPI data. * US rate futures price in 33 bps in cuts in 2025. * US two-year breakeven inflation rises to highest since 2022. * US 30-year bond auction shows poor results. By Gertrude Chavez-Dreyfuss.
- A look at the day ahead in Asian markets. A rally in U.S. stocks and bonds looked counterintuitive after PPI headlines appeared to be the second hot inflation read this week, but, under the hood, key components looked more like they were moving the direction the Fed and Wall Street want.
A look at the day ahead in Asian markets. A rally in U.S. stocks and bonds looked counterintuitive after PPI headlines appeared to be the second hot inflation read this week, but, under the hood, key components looked more like they were moving the direction the Fed and Wall Street want.
Manufacturing activity in New Zealand expanded for the first time in nearly two years, with key sub-index results for both production and new orders in positive territory, a survey showed on Friday. The Bank of New Zealand-Business NZ's seasonally adjusted Performance of Manufacturing Index jumped to 51.4 in January from a revised 46.2 in December.
Brazil's Economic Policy Secretary Guilherme Mello said on Thursday he sees the exchange rate of the local real currency against the U.S. dollar normalizing, following a sharp depreciation late last year, which he believes does not reflect the country's economic fundamentals.
Policymakers in Norway should be open to the idea that the country's $1.8 trillion wealth fund be allowed to invest in weapons makers that are currently banned from its portfolio on ethical grounds, the central bank chief said on Thursday.
* Core PCE seen lower after inflation data. * US rate futures price in 31 bps in cuts in 2025. * US two-year breakeven inflation rises to highest since 2022. * Focus on US 30-year bond auction. By Gertrude Chavez-Dreyfuss and Amanda Cooper.
-Overall debt levels held by Americans rose modestly in the final quarter of last year on a healthy consumer sector, even as automobile borrowing faced some turbulence, the Federal Reserve Bank of New York said on Thursday.
* Producer prices increase 0.4% in January. * December rise in the PPI revised up to 0.5% from 0.2% * Producer prices gain 3.5% year-on-year. * Weekly jobless claims fall 7,000 to 213,000. * Continuing claims decrease 36,000 to 1.850 million. By Lucia Mutikani.
* Trade Desk (TTD) falls on downbeat Q1 revenue forecast. * Deere falls after missing quarterly revenue estimates. * Indexes up: Dow 0.08%, S&P 500 0.16%, Nasdaq 0.37% By Shashwat Chauhan and Sukriti Gupta. Feb 13 - Wall Street's main indexes moved higher on Thursday as investors parsed the latest producer prices data, while the prospect of Russia-Ukraine peace talks spurred some risk-taking.
The Federal Reserve will likely wait until September before cutting its policy rate, traders bet on Thursday, as data kept alive worries over elevated inflation and a decline in jobless claims suggested the labor market remains healthy.
The Trump administration wants to bring down the U.S. trade deficit with India and hopes to have a fair bilateral trade deal with New Delhi in place in 2025, Trump administration officials said ahead of a summit between President Donald Trump and Indian Prime Minister Narendra Modi on Thursday.
The Trump administration wants to bring down the U.S. trade deficit with India and hopes to have a fair bilateral trade deal with New Delhi in place in 2025, Trump administration officials said ahead of a summit between President Donald Trump and Indian Prime Minister Narendra Modi on Thursday.
-The Federal Reserve will likely wait until September before cutting its policy rate, traders bet on Thursday, as data kept alive worries over elevated inflation and a decline in jobless claims suggested the labor market remains healthy.
Traders on Thursday placed rising but still shy of even odds the Federal Reserve will cut its policy rate in July instead of waiting until September, after data showed wholesale prices rose faster than projected in January and jobless claims declined.
The number of Americans filing new applications for unemployment benefits decreased last week, suggesting the labor market remained stable early in February. Initial claims for state unemployment benefits fell 7,000 to a seasonally adjusted 213,000 for the week ended February 8, the Labor Department said on Thursday.
The number of Americans filing new applications for unemployment benefits decreased last week, suggesting the labor market remained stable early in February. Initial claims for state unemployment benefits fell 7,000 to a seasonally adjusted 213,000 for the week ended February 8, the Labor Department said on Thursday.
U.S. producer prices increased solidly in January, offering more evidence inflation was picking up again and strengthening financial market views that the Federal Reserve would not be cutting interest rates before the second half of the year.
U.S. producer prices increased solidly in January, offering more evidence inflation was picking up again and strengthening financial market views that the Federal Reserve would not be cutting interest rates before the second half of the year.
* Euro rises as US plans Russia-Ukraine peace talks. * Hotter-than-expected US CPI adds to bets Fed will hold rates higher for longer. * Markets ready for Trump's reciprocal tariffs. * US PPI in spotlight. By Brigid Riley and Greta Rosen Fondahn.
Retail sales volumes in Brazil fell in December from the previous month, statistics agency IBGE said on Thursday, adding to signs the economy slowed at the end of last year despite a strong 2024 overall. Sales in Latin America's largest economy were down 0.1% in December from November, the second consecutive monthly drop.
- Britain entered a rare deficit in its goods trade with the United States at the end of last year, according to data published on Thursday that London will hope bolsters its case against the imposition of new tariffs by President Donald Trump.
PG&E Corp (PCG) on Thursday raised its adjusted core earnings forecast for 2025, as the power company benefits from lower operating expenses and higher electricity rates. Last month, the California Public Utilities Commission approved another request from the company to raise electricity prices after a series of similar hike approvals last year.
Futures for Canada's main stock index edged up on Thursday, supported by strength in precious metals, while investors await U.S. producer price data which could cement or dilute rate-cut prospects by the U.S. Federal Reserve. March futures on the S&P/TSX index were up 0.1% at 6.47 a.m. ET.
* Euro rallies as US plans Russia-Ukraine peace talks. * Hotter-than-expected US CPI adds to bets Fed will hold rates higher for longer. * US PPI in spotlight. By Brigid Riley and Greta Rosen Fondahn.
Swiss annual inflation slowed to 0.4% in January, its lowest rate since April 2021 and in line with expectations, official data showed on Thursday, creating more scope for interest rate cuts by the Swiss National Bank.
The German economy will contract by 0.5% this year, shrinking for a third consecutive year, the German Chamber of Commerce and Industry said on Thursday, forecasting the longest period of weakness in Germany's post-war history.
Sterling jumped on Thursday after data showed the British economy unexpectedly grew in the final quarter of last year, offering some respite from an otherwise downbeat economic outlook. The pound rose 0.57% to $1.25155 against the dollar, to its highest in over a week. Britain's economy grew by 0.1% in the fourth quarter, figures from the Office for National Statistics showed.
* Euro rallies as US plans Russia-Ukraine peace talks. * Hotter-than-expected U.S. CPI adds to bets Fed will hold rates higher for longer. * U.S. PPI in spotlight. By Brigid Riley.
Most economists expect the Bank of Japan to raise short-term interest rates again in the latter half of this year, a monthly survey on economists conducted by private think tank Japan Center for Economic Research showed on Thursday.
The following are key quotes from a Reuters interview with Croatian central bank Governor and ECB policymaker Boris Vujcic. * Economic and inflation developments remain in line with the baseline we projected in December. * The market is pricing three more rate cuts this year. * The exchange rate is one factor we consider but, at the current level, it's not something we need to worry about.
The European Central Bank could cut interest rates three more times this year even if its U.S. counterpart moves more slowly but policy easing is predicated on a rapid fall in underlying inflation, Croatian policymaker Boris Vujcic said.
* US 10-year yield hits three-week high. * US two-year yield rises to highest since mid-January. * US yield curve steepens, investors continue to sell long end. * US 10-year note auction shows weak results. By Gertrude Chavez-Dreyfuss.
* CVS Health (CVS) rises after beating profit estimates. * Lyft (LYFT) falls as Q1 bookings forecast misses estimates. * January CPI at 3% YoY vs 2.9% estimate. By Noel Randewich and Shashwat Chauhan.
Over two days of testimony this week before Congress, Federal Reserve Chairman Jerome Powell indicated there's no imminent end to the central bank's balance sheet wind down process, as some banks have moved to push back their own end date for a process commonly referred to as quantitative tightening.
Over two days of. testimony. this week before Congress, Federal Reserve Chairman Jerome Powell indicated there's no imminent end to the central bank's balance sheet wind down process, as some banks have moved to push back their own end date for a process commonly referred to as quantitative tightening.
* Energy, food, shelter prices increased. * Powell appeared before House Financial Services Committee. * Traders pare bets on Fed cuts. By Howard Schneider.
* Trump advisers finalizing plans for new reciprocal tariffs. * Industries scramble to offset rising steel, aluminum costs. * Experts warn of challenges in implementing reciprocal tariffs. * Ahead of announcement, US CPI jumps by most in 16 months. By Andrea Shalal, David Lawder and Nandita Bose.
Surprisingly strong U.S. inflation in January stoked investor fears that a heating economy and looming tariffs could corner the Federal Reserve, undercutting interest rate-cut hopes and even raising the threat of a hike.
Surprisingly strong U.S. inflation in January stoked investor fears that a heating economy and looming tariffs could corner the Federal Reserve, undercutting interest rate-cut hopes and even raising the threat of a hike.
The Bank of Canada's governing council felt that a protracted trade conflict with the U.S. would permanently shrink the level of domestic GDP, the minutes of a policy decision meeting showed on Wednesday.
Atlanta Federal Reserve President Raphael Bostic said on Wednesday it is not clear when the Fed can cut interest rates again given uncertainty around the path of inflation and the scope of possible changes to tariff and other policies coming from the Trump administration.
Atlanta Federal Reserve President Raphael Bostic said on Wednesday it is not clear when the Fed can cut interest rates again given uncertainty around the path of inflation and the scope of possible changes to tariff and other policies coming from the Trump administration.
Federal Reserve Chairman Jerome Powell said Wednesday the central bank has not been cut off from any data it needs to do its work. Speaking before a House panel as the Trump administration has been stripping government websites from various data sets, Powell he wasn't aware of losing anything the Fed needs, while saying he'd speak up if issues emerged.
Federal Reserve Chairman Jerome Powell said Wednesday the central bank has not been cut off from any data it needs to do its work. Speaking before a House panel as the Trump administration has been stripping government websites from various data sets, Powell he wasn't aware of losing anything the Fed needs, while saying he'd speak up if issues emerged.
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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