Bumper cut the Federal Reserve slashes the cost of borrowing by half a Percentage Point. We take a look at what this says about the us economy. And the Bank Of England are minutes away from telling us whether theyre cutting rates or not. Markets think theyre staying where they are. Welcome to business today. We start in the us, and a big move by the Central Bank in cutting the cost of borrowing for the first time in overfour years. The Federal Reserve have dropped the main Interest Rate in the worlds biggest economy by half a Percentage Point bringing it down to between 4. 75 and 5 . A drop larger than many expected with some wondering now if this reflects the scale of the problems facing the american economy or the success in getting the pace of price rises, inflation, close to the banks targets. The governor of the fed Jerome Powell says the us economy is in good shape and they intend to keep it that way. Our North America Business correspondent Ritika Gupta has the details. The Fede
Caution at the Bank Of England. It keeps Interest Rates on hold but the governor tells us they are optimistic that Borrowing Costs are on the Path Down. Over on Wall Street though the party is back on. Shares hit a new Record High as the fed says the economys in a good place despite Itsjumbo Rate cut billion dollar breaks Australias Economy rides a wave of interest in surfing. It is the government fully with the sport . All those puns to come a little later in the programme. We start here in the uk where the bank of England Governor Andrew Bailey has said Interest Rates are now gradually on the Path Down despite the Banks Decision to keep the cost of borrowing on hold today. The banks main rate was left at 5 after it was cut last month for the first time in more than four years. The bank ratcheted up Interest Rates to try and control inflation which hit a peak of 11. 1 back in 2022. Since then inflation has been brought down significantly its sitting just above the banks target curre
Treasury yield target. Chancellor merkel looks to repair the transatlantic trade ties but bidens Irish Heritage threatens the u. K. s special relationship as his views around a hard border in ireland remains central to brexit talk. Welcome to the program, everybody. Just under one hour to go until the start of cash equities trading. Lets have a look at where users have us positioned. We saw a strong appetite for risk assets last week and that continues with the big news over the weekend about president elect biden. Point 21. 550 futures percent, echoed by ftse futures and dax futures. Buyave a sense of if not everything, buy risk and treasuries. We are not seeing full wholehearted embrace of the fixed income asset class this morning. This is what got on the global stocks outlook. Mastec futures outperforming. A lot of this had to do with hyden the optimism around what President Biden might do around stimulus although there is a senate conversation. What does this mean for reflation . W
Happened. The bears breathe a sigh of relief. But is it all over as soon as it started . The cash trade is just an hour away so lets see if this has legs. Here are your top headlines. With thes a big blow nasdaq down almost 5 . The s p severs it steepest drop since june. And suffers its deepest drop since june. Bill ackman tells market jitters the National Bank to challenge santander. So, a lot going on today, as well as german factory orders. They are now out. Ofth over month, the gain 2. 8 not nearly as much as a survey, which was 5 . Over the prior number, which was 27. 9 . Yearoveryear, its a drop of 7. 3 , which is worse than the survey drop of 6. 0 . And a slight improvement from 11. 3 on the prior numbers. So during factory orders german factory orders not shining light on this. Just under an hour away from the start of cash equity trading. Futures are down in europe. And remember, yesterday we were looking at gains on the dax of more than 1 . Then we closed losses of more than
Havens. Gold surges with a spot price nearing 2000. Bullish bets on the euro hit a record ahead of todays pmi number. Cash tradings one hour away. Here are your top headlines from the bloomberg terminal. Tictoc terminal tiktok turmoil. Stocks and futures trading mixed. Toe pompeo suggests action protect National Security will not stop with this company alone. Surging baddip on loans. The group says it will accelerate cost cuts. Hear from our exclusive interview with the cfo. 16. 4 billion. They broker a deal for speedway gas stations. Just under one hour away from the start of cash equity trading, take a look at what is going on in terms of futures. Ftse futures down this morning, about. 2 . Dax futures rising. If you were to broaden out this view, you would see an even bigger range. Cac futures are up more than. 5 percent right now. Omx futures are down. 7 . Take a look at what is going on in the u. S. A little bit of a mixed picture as well with nasdaq futures higher this morning. S