BOE Chief Economist Warns UK Rate Cuts Are Still ‘Some Way Off’
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Bank of England Chief Economist Huw Pill stated that the first interest rate reduction in the UK is still 'some way off' despite indications that borrowing costs have likely peaked. Pill emphasized the need for policy to remain restrictive until inflation has been squeezed out of the system. The remarks tempered expectations of rapid rate cuts this year, causing investors to drop bets for a full percentage point of reductions by December. The BOE's forecasts indicate that lower borrowing costs will soon be necessary to prevent a recession, but Pill stated that those projections are conditional on inflation evolving as expected. The Monetary Policy Committee's recent vote to maintain the key rate at 5.25% was deeply divided, with one member wanting to lower rates to 5% and two voting to raise them to 5.5%. Pill expressed concern about weak activity in the UK, while Governor Andrew Bailey stated that the economy appeared to be picking up.
#BankOfEngland #UkInterestRates #HuwPill #MonetaryPolicyCommittee #Inflation #EconomicForecast
https://finance.yahoo.com/news/boe-chief-economist-warns-uk-144535823.html
Stock market today: Stocks mostly rise after jobs report whopper, tech earnings
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Stocks mostly rose in the stock market today following a blowout January jobs report and strong tech earnings. The S&P 500 rose 0.4%, the Dow Jones Industrial Average slipped 0.2%, and the Nasdaq Composite gained almost 1%. The jobs report exceeded expectations, with the economy adding 353,000 jobs in January and the unemployment rate remaining unchanged at 3.7%. Tech giants Amazon and Meta reported strong earnings, while Apple fell due to concerns about its China business. The US labor market has now fully recovered from losses seen during the pandemic, with every major sector of the economy back to pre-COVID levels. The positive jobs report and earnings results may impact the Federal Reserve's rate path.
#StockMarket #JobsReport #TechEarnings
What January's hot jobs data could signal for the Fed
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The US economy added 353,000 jobs in January, exceeding expectations of 185,000. Wage growth also rose above expectations, reaching its fastest pace since July 2023. The strong jobs data indicates the continued momentum of the US economy. However, it has sparked concerns about the Federal Reserve's policy path and potential inflationary pressures. The Federal Reserve Chair, Jay Powell, recently mentioned that they were no longer worried about a wage growth spiral, but the current wage growth numbers contradict that statement. The hot job market and wage growth could potentially lead to higher inflation and impact the Fed's decision on interest rates. The timing of a potential rate cut is uncertain, but the market remains optimistic about a rate cut before the end of the first half of the year.
#UsEconomy #JobsData #FederalReserve #Inflation #InterestRates
https://finance.yahoo.com/video/januarys-hot-jobs-data-could-145534433.html
US Payrolls Surge by 353,000 at Start of Year, Wages Also Jump
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US employers added 353,000 workers in January, the most in a year, and wages increased at the fastest pace since March 2022, according to a Bureau of Labor Statistics report. The unemployment rate remained at 3.7%. The strong jobs report is likely to delay any Federal Reserve interest-rate cuts. The data raise questions about the gradual downshift in hiring that had tempered wage growth and helped bring inflation down. Fed officials are hoping for strong employment growth while also seeking more moderate pay gains and confirmation that inflation will continue to slow. The report also noted that severe winter weather in January led to a decline in hours worked and the most employees not working due to bad weather in almost three years.
#UsPayrolls #Wages #LaborMarket #FederalReserve #UnemploymentRate #Inflation
https://finance.yahoo.com/news/us-payrolls-surge-353-000-135051845.html
PGA Tour Inks $3 Billion Deal With Fenway, Steve Cohen Group
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The PGA Tour has approved an investment of up to $3 billion by Strategic Sports Group (SSG) in a new commercial entity. The deal, led by John Henry's Fenway Sports Group, will feature an initial investment of $1.5 billion, with a further $1.5 billion potentially injected by SSG's consortium of investors. The transaction values the new entity at about $12 billion. The deal does not currently include Saudi Arabia's Public Investment Fund (PIF), but ongoing talks are taking place for PIF to make an investment in the future. Almost 200 PGA Tour members will have the opportunity to become equity holders in the new company, PGA Tour Enterprises. Other parties in the consortium include Steve Cohen's family office Cohen Private Ventures, Avenue Sports Fund, and various sports team owners.
#PgaTour #StrategicSportsGroup #FenwaySportsGroup #SteveCohen #Investment
https://finance.yahoo.com/news/pga-tour-said-approve-3-131511348.html