US plunges into technical recession as rest of world braces for similar fate July 28, 2022 The US economy has plunged into a technical recession in a sign of things to come for the rest of the world, figures published today revealed. The American economy unexpectedly shrank 0.9 per cent in the three months to June, marking the second successive quarter the economy has contracted, meeting the common definition of a [...]
Crypto prices surge after Fed hikes interest rates July 28, 2022 Cryptocurrencies prices climbed after the US Federal Reserve raised interest rates by 75 basis points for the consecutive second month to tackle high inflation. Bitcoin jumped 7.5 per cent to trade at $22,965.5 today while Ether soared 11.14 per cent to trade at $1,624.9 after being pummelled by the crypto crash and investor uncertainty. The [...]
Powell invokes Volcker spirit with second successive 75 point hike July 27, 2022 The US Federal Reserve today doubled down on its efforts to chase down the biggest inflation shock in recent memory by hiking rates 75 basis points for the second time in a row. Chair Jerome Powell and the rest of the federal open market committee backed another big rise to cool America’s overheating jobs market [...]
London markets muted ahead of US Federal Reserve rate decision July 25, 2022 London markets were mixed today as traders brace for another potential rate bazooka from the US Federal Reserve on Wednesday. The capital’s premier FTSE 100 index edged 0.41 per cent higher to 7,306.30 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, dropped 0.11 per [...]
US Federal Reserve to back up monster rate hike with another 75 basis point move July 25, 2022 The US Federal Reserve will back up its monster rate rise last month with another big 75 basis point hike this week as it chases down scorching inflation across the pond. That’s according to Wall Street analysts, who think Fed chair Jerome Powell and the rest of the federal open market committee (FOMC) will need [...]
Slump in deal making nearly halves Goldman Sachs profits July 18, 2022 A weaker deal making environment has nearly halved Wall Street investment bank Goldman Sachs’s profits. Net earnings dropped to $2.8bn (£2.4bn) in the three months to June, down 48 per cent from $5.3bn (£4.5bn) in the same period last year, Goldman said today. Investment banking revenues collapsed nearly 50 per cent to $1.8bn (£1.5bn) driven [...]
Recession fears loom over FTSE 100 as IMF warns economic outlook has ‘darkened’ July 14, 2022 London markets flopped today driven by investors fretting over the global economic downturn. The capital’s premier FTSE 100 index dropped 1.63 per cent to 7,039.81 points, while the mid-cap domestically-focused FTSE 250 index, which is more aligned with the health of the UK economy, tumbled 1.23 per cent to 18,480.66 points. Recession fears have led [...]
Return of loan loss reserves crimp JP Morgan profits July 14, 2022 Swelling reserves set aside to deal with a historic inflation surge raising the risk of US consumers defaulting on their debts has eroded investment banking giant JP Morgan’s profits, the firm announced today. Net income dropped 28 per cent in the second quarter compared to the same period last year, driven by a $428m (£360m) [...]
S&P 500 to shed fifth of value if US tips into recession, Goldman Sachs warn July 10, 2022 Wall Street will suffer heavy losses if the US economy tips into recession, according to investment bank Goldman Sachs. The S&P 500 index, a broad measure of corporate America, will shed 19 per cent and close 2022 at 3,150 points if the American economy suffers a tough recession, Goldman said in a note to clients [...]
World is staring down the barrel of new high inflation era, BIS warns June 26, 2022 The world risks being flung into a new era of persistently high inflation that will tip the global economy into a drawn out recession, one of the world’s top economic institutions has warned. Rampant price rises triggered by a series of economic shocks that have no “historical parallels” could become the norm, the Bank for [...]