The Bank of England's MPC voted 5-4 to keep Bank Rate at 4% at its November 5 meeting, in line with expectations. Four members favored a 25 bps cut to 3.75%, reflecting growing support for easing. Policymakers noted that CPI inflation has peaked and underlying disinflation is developing, aided by still-restrictive policy, lower wage growth, and easing services inflation. A sluggish economy and increasing labor market slack are also strengthening disinflation. The MPC said the risks to achieving the 2% target are now more balanced: inflation persistence has become less of a concern, while...
US Treasury bonds appear to have taken some comfort today from the Supreme Court ruling that the Fed's unique structure can protect its board members from potential presidential removal, Rabobank FX analyst Jane Foley reports. Closing of USD shorts for 1 to 3 months cannot be ruled out "This would ease any potential credibility issues for the Fed which would dampen inflation concerns, at least until the end of Chairman Powell's term. Nonetheless, the USD weakness this week suggests that investors continue to re-evaluate what ‘US exceptionalism' means. For a number of years, the ‘buy...
U.S. President Donald Trump threatened once again on Friday to ramp up his trade war, recommending a 50% tariff on European Union goods starting June 1 and warning Apple (AAPL.O), opens new tab he may impose a 25% tariff on any iPhones manufactured outside the U.S. The twin threats, delivered via social media, roiled global markets after weeks of de-escalation had provided some reprieve. The S&P 500 fell 0.9% in early trading, the Nasdaq fell 1.5%, and European shares fell 1.1%. Trump's latest broadside against the EU stemmed from his frustration at the lack of progress in trade talks...
The United Kingdom (UK) Retail Sales jumped 1.2% month-over-month (MoM) in April after advancing 0.1% in March (revised from 0.4%), the latest data published by the Office for National Statistics (ONS) showed Friday. Markets expected a 0.2% rise in the reported month. The core Retail Sales, stripping the auto motor fuel sales, rose 1.3% MoM, compared to the previous revised growth of 0.2% and the estimated 0.3% reading. The annual Retail Sales in the UK climbed 5.0% in April versus March's 1.9%, while the core Retail Sales also grew 5.3% in the same month versus 2.6% previous revision....
Beijing and Washington maintained high-level contact with a call on Thursday between U.S. Deputy Secretary of State Christopher Landau and China's Executive Vice Foreign Minister Ma Zhaoxu, signaling ongoing communication following their recent trade truce. According to the U.S. State Department, the two officials "discussed a wide range of issues of mutual interest" and "exchanged thoughts on crucial issues," though no specifics were provided. Both sides underscored the importance of the bilateral relationship and agreed to keep lines of communication open. The call comes amid renewed...
Britain's consumers turned a bit more confident in May, according to a survey published on Friday that might reflect the impact of falling interest rates and an easing of global trade tensions. Market research firm GfK's consumer confidence index rose to -20 in May from -23 in April, led by more optimism among households over the outlook for their finances and the wider economy. A Reuters poll of economists had pointed to a smaller increase to -22. Neil Bellamy, consumer insights director at GfK, said consumers may have breathed a sigh of relief from the Bank of England's May 8 interest...
Asia-Pacific markets traded higher, tracking Wall Street gains overnight.
Japan's benchmark Nikkei 225 rose 0.41% after hitting a fresh record high on Thursday, while the Topix added 0.61%. South...
Both the STOXX 50 and STOXX 600 hovered around the flatline on Friday, as investors adopted a cautious stance ahead of further developments in trade talks between US President Trump and Chinese...
The U.S. Supreme Court's tough questioning of President Donald Trump's global tariffs has fueled growing speculation that they will be overturned, but it also raises the potential for further...