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 Federal Reserve has delivered a super sized Interest Rate cut aimed at bolstering the us Labour Market. The 0. 5 percentage cut, the first in over four years, brings its key Interest Rate, the federal funds rate, down to between 4. 75 and 5 . It comes amid Signs Inflation in america is continuing to fall, while the Job Market remains strong, even as unemployment h
the reaction in asia so far has been mixed. Our north america business correspondent ritika gupta has the details. The federal reserve has delivered a super sized interest rate cut aimed at bolstering the us labour market. The 0. 5 percentage cut, the first in over four years, brings its key interest rate, the federal funds rate, down to between 4. 75 and 5%. It comes amid signs inflation in america is continuing to fall, while the job market remains strong, even as unemployment has risen this year. The labour market is actually in solid condition and our intention with our policy move today is to keep it there. You can say that about the whole economy. The us economy is in good shape, it s growing at a solid pace, inflation is coming down. The labour market is in a strong pace. We want to keep it there. In addition, the committee setting rates released its latest forecast which showed policymakers expecting to cut rates by a further 0. 5%. That would us interest rates below 4. 5% b
But i think when youre better for the world youre better for israel to halt to this office us hard bargain is very different from trump trying to bully dos and wanted us to appease him as well as many. Countries with a historically difficult relationship with the u. S. But in selection of burkes little hard. For the future development of the china u. S. Relationship trump didnt do a good job i dont hold much hope for biden turn. But im. I do but im a drummer we talked about improving relations with russia but it didnt come to anything. When you deal with biden is openly against russia. Or for a here. All eyes are now on biden and what changes he may bring to foreign diplomacy for the us. And lets get more now we are joined by did i use your ear shadow who is standing by with the view from moscow yury the kremlin has been remarkably quiet to silence speak volumes. Hi sara well we have no official reaction from the kremlin so far youre right russian president putin only commented once on
Consumer confidence relatively judge the michigan consumers intimate data is a good guide. Lets break it down a different way. Current conditions, 85. 9. That is above expectations at 84. 9. This is what i was really looking for, expectations also ,oming in ahead of expectations but they are still below current conditions, 79. 2. They are not going down, which ethic is the really important thing, as we see the virus picking up. Alix and we didnt get stimulus, counterintuitive to what many thought would happen. Big tex stocks are lower on a stocks big tech are lower on a flurry of data. Now with us, mark st oeckle. Are you buying the dip . Tok i think people need keep it in perspective. The reports were good. I think what we are seeing today is skimming a little but of the froth out of the valuation adjustment. I think they are all very wellpositioned and very well performing companies, but lets also not forget weve had a big run up into these numbers. The interesting part is you look a
Services. Westpacs full year profits plunge after fines for Money Laundering. Cash earnings falls. One of those stocks where watching going into the sydney open. Lets look at the market open. Sophie . Expecting some moves this monday. The biggest weekly drop since september 25 as investors adjust the some of the risk ahead. We did have the worst week for aussie stocks since april. Adding 0. 1 . We have amp shares gaining trillionter the this wealth manager said that a preliminary takeover approach of every management values the company at 4. 5 billion. Westpac has results out this morning. Later this week we get results upm alibaba which ticked single day sales early on sunday. The ipo is a big event we are watching this week. We are expecting a big pop here on thursday given the massive appetite we have seen for the offering. Friday had the biggest drop since june. Of a private survey of chinese manufacturing data. To focus more on the u. N. , lets pull up on the chart on the terminal