China disinflation became a worse economic decline
The data from China to Hungary reveals a worse economic decline than predicted due to disinflation. Emerging markets sold precipitously, with the MSCI Emerging Market Index falling to its lowest closing in nearly four weeks. South Africa’s rand led currency-index losses, and falling US Treasury yields raised sovereign risk premiums. The bullish case for developing…
The FED aim to reduce inflation with rising interest rate
U.S. inflation climbed faster than expected for the first time since June 2022, challenging the narrative of reducing price growth. July’s CPI is predicted to rise to 3.3% yearly, with 0.2% monthly. Thursday’s CPI will feature the “core” figure, expected to slow to 4.7% year-over-year and stay at 0.2% monthly. Federal Reserve officials are monitoring…
U.S. stocks and CPI have hints on FED plans
On Monday, the futures for U.S. stocks all went up. The Dow futures went up 74 points, the S&P 500 futures went up 15 points, and the Nasdaq 100 futures went up 69 points. The S&P 500 and Nasdaq Composite fell for the fourth day in a row. Weaker-than-expected job growth in July and poor…
Malcolm Price became head of financial sponsors at Wells Fargo
Wells Fargo has appointed Malcolm Price as the head of financial sponsors, following 35 years at Credit Suisse. Price, who started the company’s financial sponsors in 1996, has experience in leveraged finance, infrastructure, utilities, and clean energy. After Credit Suisse’s acquisition by UBS Group, many employees left for safer work.
Banks need more time to gain profits from new rules
US bank regulators have suggested a big change to capital rules that would require banks to set aside 16% more money. This could make asset risk go up, which could lower returns on equity and earnings. The Securities Industry and Financial Markets Association, the Financial Services Forum, and the Bank Policy Institute have all warned…
Reliance Industries expects to issue shares of its banking unit soon.
Reliance Industries Ltd. plans to list Reliance Jio Financial Services Ltd. shares to unlock shareholder value. Chairman Mukesh Ambani believes Jio Financial Services is uniquely positioned to capture growth opportunities in the financial services sector and transform digital finance in India. Reliance’s annual general meeting will likely reveal Jio Financial Services’ IPO date. Jio Financial…
Fintech Expansion to Brazil with Amazon Credit card
Amazon will launch a Mastercard-powered credit card in Brazil with Banco Bradesco SA, as part of its fintech expansion. The card will handle credit risk and offer loyalty benefits and credit restrictions. The card aligns with falling interest rates and government consumption programs.
Wages rising quicker than the Fed projected by 2% inflation
The S&P 500 index has seen a 16.6% year-to-date increase, driven by better economic outlook, excitement over artificial intelligence, and signals that the Federal Reserve is close to completing interest rate hikes. The next week’s inflation number may determine stocks’ near-term trend, and Treasury yields are also actively watched by investors. The S&P 500 lost…