Author: Daniel Chang

Federal Reserve Chair Jerome Powell indicated on Monday that the central bank is likely to proceed with additional rate reductions aimed at reaching a more balanced economic position. However, he emphasized that future policy changes will not follow a predetermined path and will be adjusted based on evolving economic data and conditions. “Looking ahead, if economic developments align with expectations, monetary policy will gradually shift toward a neutral stance,” Powell stated in prepared remarks before his appearance at the National Association for Business Economics. A neutral interest rate is one that neither stimulates nor hinders economic growth, serving as a…

NEW YORK (Reuters) – The euro declined against the U.S. dollar on Monday, following weaker-than-expected reports on eurozone business activity. In contrast, U.S. data reflected stable activity, pushing the dollar higher. This shift comes ahead of key Federal Reserve speeches set for later this week. The weak economic data from the eurozone reinforced expectations that the European Central Bank (ECB) may implement further interest rate cuts. Markets are currently betting on a roughly 77% likelihood of a 25 basis points (bps) cut at the ECB’s October meeting. S&P Global’s report showed a sharp contraction in eurozone business activity in September,…

Japan’s chief currency official, Atsushi Mimura, has emphasized that the government is closely monitoring the markets for any resurgence in yen carry trades, which could lead to increased volatility, according to an interview with public broadcaster NHK on Friday. Mimura noted that while the majority of previous yen carry trades—where investors borrow yen at low interest rates to invest in higher-yielding assets—have likely been unwound, authorities remain vigilant. “If such trades begin to rise again, it could lead to heightened market volatility,” Mimura said, adding that the government is consistently observing market trends to prevent such scenarios. Mimura also highlighted…

U.S. shares of Stellantis NV (NYSE: STLA) gained on Monday following the company’s announcement that it has started the search for a successor to CEO Carlos Tavares, whose contract is set to expire in 2026. The stock increased by 2.9%, closing at $15.45 on Monday, although it dipped slightly by 0.3% in after-hours trading. Earlier in September, Stellantis’ stock had reached its lowest point in 20 months, struggling due to weak sales and profits in its North American market. The company is under pressure to improve its performance in the region. While the search for a new CEO is underway,…

NEW YORK (Reuters) – The U.S. dollar saw modest gains in volatile trading on Wednesday, following the Federal Reserve’s decision to lower interest rates by half a percentage point. The central bank’s move reflected growing confidence that inflation is on track to return to its 2% annual target. The Federal Reserve reduced its benchmark interest rate to a range of 4.75%-5.00%, with projections indicating further cuts throughout the next few years. Policymakers expect rates to drop by another 50 basis points by the end of 2024, with additional reductions slated for 2025 and 2026, bringing the rate to between 2.75%…

Asian stock markets saw mixed performance on Thursday as they reacted to the Federal Reserve’s substantial interest rate cut, while Japan’s stock market surged thanks to a weakening yen ahead of a key Bank of Japan (BOJ) meeting. Though regional markets welcomed the Fed’s decision to slash interest rates by 50 basis points, gains were tempered by concerns over a higher projected neutral rate, coupled with worries about potential slowing economic growth. Meanwhile, U.S. stock index futures jumped sharply during Asian trading hours. Japanese Stocks Rally as Yen Drops Post-Fed; BOJ Meeting Anticipated Japan’s Nikkei 225 and TOPIX indices outperformed…

The U.S. Trade Representative (USTR) announced that starting Monday, it will begin accepting public comments regarding its proposed significant tariff hikes on Chinese imports of polysilicon, silicon wafers, and tungsten products. These tariff increases were part of a broader set of measures recently introduced by the Biden administration under the “Section 301” tariffs. These tariffs target a range of Chinese goods, including electric vehicles (EVs), batteries, steel, semiconductors, and solar cells, which were finalized last week. The USTR has indicated that following public feedback on these tariffs, which are set to begin on September 27—such as the 100% duty on…

FedEx reduced its full-year earnings forecast on Thursday after missing expectations for its fiscal first-quarter results, driven by a slowdown in its core Federal Express division. Following the report, FedEx Corporation (NYSE: FDX) saw its shares drop by 9% in after-hours trading. The company posted adjusted earnings of $3.60 per share on revenue of $21.6 billion, falling short of analysts’ predictions, which anticipated earnings of $4.86 per share on revenue of $21.96 billion, according to Capital IQ data. The Federal Express segment experienced a decline in profit margins, dropping to 5.2% in Q1, compared to 7.1% a year ago. For…

A report from Bloomberg indicates that U.S.-based asset manager Apollo Global Management (NYSE) is exploring a significant investment of up to $5 billion in Intel (NASDAQ). According to sources familiar with the situation, Apollo has recently expressed interest in making a substantial equity-like investment in Intel. This comes at a challenging time for the tech giant, which has seen its stock plummet by nearly 60% since the beginning of the year, a steep decline for what was once the leading chip manufacturer globally. While Intel’s leadership is currently assessing Apollo’s proposal, the discussions are still in the early stages, and…

Australia’s central bank is shifting its focus to developing a wholesale central bank digital currency (CBDC), as it believes the economic advantages outweigh those of a retail CBDC, according to a senior official. During a recent conference, Brad Jones, Assistant Governor of the Reserve Bank of Australia (RBA), introduced a three-year initiative known as Project Acacia. This joint effort between the RBA and the Treasury aims to explore opportunities for enhancing wholesale market efficiency, transparency, and resilience through the use of tokenized money and modern settlement infrastructure. Future stages of the project may expand into cross-border applications, potentially involving collaboration…