Bank Term Funding Program got 20% of all eligible firms
The Federal Reserve reported that 1,804 depository institutions, or 20% of eligible businesses, have used the Bank Term Funding Program, established in March following Silicon Valley Bank’s failure. The program, which offered low-interest loans on collateral, stopped issuing new loans on March 11, offering loans totaling $165 billion with durations as short as one year.
Net interest income on majority US banks drop on Q1
US mid-sized banks are expected to face pressured profits for most of 2024 due to rising deposit costs and slower loan growth. Regions Financial, Huntington Bancshares, and Fifth Third Bancorp posted lower first-quarter profits due to a sharp decline in interest income. For the second consecutive quarter, net interest margins reduced for all regional institutions.…
Canada will rise tax only for high class citizens
Canadian Pay Minister Chrystia Freeland is expected to increase taxes and reallocate funds in her budget address to fund billions of dollars of new initiatives to uphold her fiscal guardrail. The budget will show how to tax the wealthiest citizens, as Prime Minister Justin Trudeau has previously assured reporters that he will not raise taxes…
Global investors exit from stocks due to inflation
Global investors withdrawn from stock funds for the second consecutive week due to inflation concerns and uncertainty over the US Federal Reserve’s June rate decrease. The week saw a $2.9 billion outflow from global equities funds, with U.S. and Asian equity funds outflowing $2.7 billion and $1.9 billion respectively. European equity funds received $891 million.…
Global investors pull back due to inflation status
Global investors withdrawn from stock funds for the second consecutive week due to inflation concerns and uncertainty over the US Federal Reserve’s June rate decrease. The week saw a $2.9 billion outflow from global equities funds, with U.S. and Asian equity funds outflowing $2.7 billion and $1.9 billion respectively. European equity funds received $891 million.…
The Fed may not cut rates for inflation still haunts
Investors are facing a dilemma as the chance of U.S. interest rate reductions fades, leading to fears of rising inflation. The Federal Reserve’s policy easing is expected to decline quickly, as positive economic reports suggest that lowering borrowing costs too soon may reappear inflation. Strong consumer price data has made these concerns even more urgent.…
The Fed wont cut rates if inflation still high
The Federal Reserve’s interest rate reduction plan for 2024 has been halted due to a decline in inflation, which has risen to a 3.5% annual rate from 3.2% in March. This has caused concerns among at least four of the 12 Fed officials who vote on monetary policy, who are now more suspicious of the…
Microsoft invest $2.9 billion on AI and cloud infrastructure
Microsoft plans to invest $2.9 billion over two years to build its cloud and AI infrastructure in Japan, marking its largest investment in its 46-year history. The investment will also establish a Microsoft Research Asia center and train three million AI professionals. Other tech companies are expanding their data centers globally to accommodate increased AI…