The Federal Reserve announced on Wednesday it would be testing big banks against heightened stress in commercial and residential real estate markets as part of the U.S. central bank's annual stress tests.
The Federal Reserve announced on Wednesday it would be testing big banks against heightened stress in commercial and residential real estate markets as part of its annual stress tests.
* FMC plunges on lower quarterly revenue forecast. * Alphabet falls after downbeat earnings, heavy AI spend. By Abigail Summerville and Shashwat Chauhan.
* Loonie touches a 2-week high at 1.4266. * Canada posts first trade surplus in 10 months. * Price of U.S. oil settles 2.3% lower. * Bond yields ease across the curve. By Fergal Smith.
* Fed officials cautious on outlook for interest rate cuts. * Goolsbee says tariffs could impact inflation, supply chains. * Barkin notes complexity of tariffs' impact on inflation, demand. By Ann Saphir, Howard Schneider.
Editor?s note: This story has been updated to correct Donald Trump?s title to current, not former, president. With President Donald Trump threatening 25% tariffs on Mexico and Canada, and the Federal Reserve holding interest rates steady, investors in Treasury ETFs are bracing for market shifts.
* FMC plunges 33% on lower quarterly revenue forecast. * Alphabet falls nearly 8% after downbeat earnings, heavy AI spend. * Indexes: Dow up 0.47%, S&P 500 up 0.19%, Nasdaq down 0.07% By Abigail Summerville and Shashwat Chauhan.
- Chicago Federal Reserve President Austan Goolsbee warned on Wednesday that ignoring the potential inflationary impact of tariffs would be a mistake, citing the COVID-19 pandemic experience where supply chain disruptions drove up inflation.
- Chicago Federal Reserve President Austan Goolsbee warned on Wednesday that ignoring the potential inflationary impact of tariffs would be a mistake, citing the COVID-19 pandemic experience where supply chain disruptions drove up inflation.
The U.S. trade deficit widened sharply in December as imports surged to a record high against the backdrop of tariff threats, which might have prompted businesses to rush purchases of foreign-made goods like finished metals and computers.
Mexico's central bank will likely cut its benchmark interest rate by 50 basis points later this week, taking it to 9.50%, a Reuters poll showed on Wednesday, as inflation cools and the economy notched a slight contraction late last year.
Annual research explores how businesses, executives and investors should rethink traditional approaches for navigating today's global macroeconomic environment ATLANTA, Feb. 5, 2025 /PRNewswire/ --?Aprio Wealth Management, a subsidiary of?Aprio, LLP, the 25th?largest business advisory and accounting firm, released its?5th annual Economic Outlook, providing a comprehensive roadmap for invest...
The European Central bank may need to cut interest rates below a neutral level to stimulate economic growth as inflation is at risk of falling below the bank's 2% target, ECB policymaker Mario Centeno told Reuters on Wednesday.
* Trade deficit increases 24.7% to $98.4 billion in December. * Trade gap at $918.4 billion in 2024, largest since 2021. * Imports jump 3.5% in December to record high $364.9 billion. * Exports decrease 2.6% to $266.5 billion. * Goods deficit widens with Canada, shrinks with China, Mexico. By Lucia Mutikani.
Federal Reserve officials on Wednesday pointed to the large policy uncertainty around tariffs and other issues arising from the early days of President Donald Trump's administration as among the top challenges in figuring out where to take U.S. monetary policy in the months ahead.
U.S. services sector activity unexpectedly slowed in January amid cooling demand, helping to curb price growth. The Institute for Supply Management said on Wednesday its nonmanufacturing purchasing managers index slipped to 52.8 last month from 54.0 in December. A PMI reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of the economy.
U.S. services sector activity unexpectedly slowed in January amid cooling demand, helping to curb price growth. The Institute for Supply Management said on Wednesday its nonmanufacturing purchasing managers index slipped to 52.8 last month from 54.0 in December. A PMI reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of the economy.
Greater Toronto Area home sales rebounded in January as new listings climbed, while home prices were little changed after two straight months of increases, data from the Toronto Regional Real Estate Board showed on Wednesday. Seasonally adjusted sales rose 10% on a month-over-month basis in January to 5,971 units after tumbling 18.2% in December.
Business Activity Index at 54.5%; New Orders Index at 51.3%; Employment Index at 52.3%; Supplier Deliveries Index at 53%; This report reflects the recently completed annual adjustments to the seasonal factors used to calculate the indexes. TEMPE, Ariz.
Canada's services economy deteriorated for the second straight month in January as uncertainty generated by the threat of U.S. trade tariffs offset lower borrowing costs, S&P Global's Canada services PMI data showed on Wednesday. The headline Business Activity Index rose to 49.0 from 48.2 in December but remained below the 50.0 no-change mark.
SAO PAULO, Feb 5 (Reuters - Industrial production in Brazil expanded in 2024, official data showed on Wednesday, but a third consecutive monthly drop in December reinforced signs of an economic slowdown.
With global supply chains facing mounting pressures and costs continuing to rise, manufacturing is at a critical juncture. The seed round was led by Lightbird with participation from Founderful, 2100VC, Danobat, and multiple high-profile business angels. Image: https://ml-eu.globenewswire.com/Resource/Download/d91bc713-92f3-4e0e-88b2-25a20e1d8364/saeki-team-1-.jpg The SAEKI team.
The U.S. trade deficit widened sharply in December as imports surged to a record high against the backdrop of tariff threats, which might have prompted businesses to rush purchases of foreign-made goods like finished metals and computers.
The U.S. trade deficit widened sharply in December as imports surged to a record high against the backdrop of tariff threats. The trade gap increased 24.7% to $98.4 billion, the highest since March 2022, from a revised $78.9 billion in November, the Commerce Department's Bureau of Economic Analysis said on Wednesday.
* Canada reports December surplus of C$708 million. * Exports grew by 4.9% and imports expanded by 2.3% * Trade surplus with U.S. widened to C$11.3 billion. By Promit Mukherjee.
U.S. private payrolls growth picked up in January, the ADP National Employment Report showed on Wednesday. Private payrolls increased by 183,000 jobs last month after an upwardly revised 176,000 rise in December.
NEW YORK, Feb. 5, 2025 Report on how AI is redefining market landscape - The global cruise tourism market?size is estimated to grow by USD 29.76 billion from 2025-2029, according to Technavio. Key insights into market evolution with AI-powered analysis.
The U.S. Federal Reserve is still leaning towards further rate cuts this year although uncertainty about the impact of new tariff, immigration, regulatory and other Trump administration initiatives will need to be better understood, Richmond Fed president Tom Barkin said Wednesday.
U.S. private payrolls growth picked up in January, the ADP National Employment Report showed on Wednesday. Private payrolls increased by 183,000 jobs last month after an upwardly revised 176,000 rise in December.
ROSELAND, N.J., Feb. 5, 2025 ?Private sector employment increased by 183,000 jobs in January and annual pay was up 4.7 percent year-over-year, according to the January ADP? National Employment Report??produced by ADP Research in collaboration with the Stanford Digital Economy Lab.
Euro area government bond yields dropped to multi-week lows on Wednesday as investors feared a possible disinflationary impact of U.S. tariffs, which could lead the European Central Bank to deepen its easing path. Investors also await updated estimates of the so-called neutral rate that the ECB staff will publish on Friday.
-The S&P 500 and the Dow rose on Wednesday, as investors started to brush off disappointing Alphabet earnings and weighed the prospect of future interest rate cuts from the U.S. Federal Reserve. Google-parent Alphabet dropped 7.3% after posting downbeat cloud revenue growth on Tuesday and earmarking a higher-than-expected $75 billion investment for its AI buildout this year.
-All three major stock indexes closed higher on Wednesday, rebounding from declines earlier in the session as investors brushed off disappointing Alphabet earnings and weighed the prospect of future interest rate cuts from the U.S. Federal Reserve.
The pound rose to its highest in a month on Wednesday as the dollar retreated further after surging two days ago on the threat of sweeping U.S. tariffs, while the focus in UK markets turned to the Bank of England rate decision on Thursday.
- Morgan Stanley joined Barclays and Macquarie in forecasting a single 25 basis point interest rate cut by the U.S. Federal Reserve this year, citing uncertainty from President Donald Trump's tariff policy. The Wall Street brokerage had previously said it expected two 25 bps rate cuts in March and June. Peers Goldman Sachs and Wells Fargo continue to expect two interest rate cuts this year.
Ukraine's GDP warrants rallied nearly 2 cents on Wednesday as Ukraine and Russia said they were in touch with the team of U.S. President Donald Trump about the two countries' near 3-year long war. Tradeweb data showed the warrants rose to a bid price of 86 cents, their highest since January 2022, a month before Russia's full-scale invasion.
British services firms lost momentum last month as a looming rise in employer taxes led to the fastest job cuts in four years but price pressures remained strong, according to a survey that underscored the challenge facing the Bank of England this week.
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.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
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