Will the rate hike at the meeting next week?
Investors await Microsoft and Alphabet’s second-quarter results, followed by Meta’s release later this week. Fast food results will reveal consumer and spending habits, with McDonald’s, Chipotle, and Domino’s being key players. Federal Reserve Jerome Powell will report on the Fed’s policy decision, with most predicting another rate hike next week. The Fed will use economic…
Amazon introduced a new policy for their workers
Amazon’s three-day-a-week return-to-office policy requires some corporate employees to move. The company confirmed relocations but declined to comment on news claims of forcing staff in smaller offices to move to main operations in larger cities. Amazon will pay relocation benefits to staff who are asked to transfer and evaluate exceptions on a case-by-case basis. The…
The next phase of US economy.
Goldman Sachs chief economist Jan Hatzius expects good GDP growth and progress in retail sales and job growth, which have shown a robust American consumer in the past week. Retail sales rose 0.2% in June, while 209,000 jobs were added, indicating progress in economic expansion-contraction debates. Goldman Sachs has delayed recession predictions, now expecting a…
Banks interest income growth has been cut this year
Comerica and Huntington Bancshares have cut their 2023 interest income growth predictions due to falling loan demand and rising deposit costs. The Federal Reserve’s fastest monetary tightening cycle since the 1980s increased lenders’ net interest income in the second quarter, but high rates are making some clients reconsider loans and purchases. Analysts believe the high…
US banks have remained stable
The US Treasury’s liquidity has not drained, and reserves have climbed, easing concerns about potential credit constraints. The Fed Treasury General Account has grown by $460 billion since early June. Government borrowing usually decreases demand for the Fed’s overnight reverse repo program (ON RRP), which helps money market funds lend to the Fed. Reserves rose…
American Express increase profit from card spending
American Express maintained its yearly profit prediction despite record second-quarter credit card usage, surprising investors and sending shares down 5%. The cautious projection suggested a downturn in the second half of the year, despite solid travel and entertainment expenditure. Despite quick interest rate hikes by the U.S. central bank, spending rose to $426.6 billion. Millennials…
After Brexit, the EU agrees on rules for hedge funds
The EU has announced a deal to revise its rules for hedge fund and alternative investment managers, easing industry concerns about a post-Brexit crackdown on London managers. The deal will alter the bloc’s Alternative Investment Fund Managers Directive (AIFMD) guidelines for hedge funds, private equity, private debt, and real estate funds. The accord requires European…
JPMorgan will expand its online bank Chase to Germany
JPMorgan CEO Jamie Dimon confirmed that the company plans to expand its online bank Chase to Germany and other EU countries, increasing competition for European rivals in a congested sector. The move comes after JPMorgan launched its first digital-only retail business in Britain in 2021. Dimon stated that the company has ambitious plans to introduce…