Written by Gary
Fed leaves key interest rate unchanged, and is keeping a close eye on coronavirus (SPY -0.1%). The Federal Reserve sees the economy growing at moderate pace.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Lyft cuts 2% jobs on journey to profitabilityLyft Inc said on Wednesday it had cut about 2% of its workforce, or 90 jobs, as the ride-hailing company seeks to achieve its goal of profitability by the end of 2021. |
| Fed keeps interest rates steady, offers no new balance sheet guidanceThe Federal Reserve held interest rates steady on Wednesday at its first policy meeting of the year, with the head of the U.S. central bank pointing to continued moderate economic growth and a “strong” job market, and giving no sign of any imminent changes in borrowing costs. |
| Fed holds rates steady, offers no new guidance on balance sheetThe Federal Reserve held interest rates steady on Wednesday at its first policy meeting of the year, with officials pointing to continued moderate U.S. economic growth and a “strong” job market. |
| Google temporarily shutting down all China offices: The VergeAlphabet Inc’s Google is temporarily shutting down all its offices in China due to the outbreak of a new coronavirus in the country, technology website The Verge reported on Wednesday. |
| L Brands CEO in talks to step aside and sell Victoria’s Secret: WSJVictoria’s Secret-owner L Brands Chief Executive Officer Leslie Wexner is in talks to step aside from the role and is exploring strategic alternatives for the lingerie brand, the Wall Street Journal reported on Wednesday. |
| Oil mixed as virus fears, U.S. stock build face talk of further OPEC cutsOil prices were mixed on Wednesday as worries about the coronavirus outbreak and swelling U.S. crude inventories weighed on prices, counter-balanced by talk that OPEC could extend oil output cuts. |
| Global stocks gain on solid results, but virus keeps safe-havens aliveGlobal equity markets edged higher on Wednesday on strong results from Apple and others but concerns about the coronavirus outbreak in China kept a safe-haven bid in gold and the dollar alive. |
| Goldman Sachs sets growth targets but urges investor patienceGoldman Sachs Group Inc on Wednesday set targets to grow its fledgling consumer unit and transaction banking business while improving efficiency and returns to shareholders, but urged patience at its first-ever investor day presentation. |
| British Airways, Iberia suspend direct flights to mainland China amid virus fearsBritish Airways has suspended all direct flights to and from mainland China, one of the biggest names in aviation to do so, as worries grow about the impact of the spreading coronavirus on global travel. |
| Copper, Crude, & The Yield Curve Crumble As Fed Flops, Virus Death-Count PopsCopper, Crude, & The Yield Curve Crumble As Fed Flops, Virus Death-Count Pops Stocks remain unfazed as coronavirus deaths and cases are exploding higher… |
| What To Expect From Stocks, Bonds, & Gold As Wuhan Virus SpreadsWhat To Expect From Stocks, Bonds, & Gold As Wuhan Virus Spreads Authored by Andreas Steno Larsen via Nordea, Equities are likely to sell off temporarily, while long bonds could perform. Risk off moves in FX space were limited, while Gold performed in commodity space. |
| Fed Official: “If There’s A Recession, Don’t Worry”Fed Official: “If There’s A Recession, Don’t Worry” Authored by Simon Black via Sovereign.com, Earlier this week I sent one of my team members to a banking conference here in Puerto Rico hosted by the Federal Reserve. It might strike you as strange that the Fed would be holding an event in Puerto Rico, but it’s not that unusual. Puerto Rico is a US territory and hence part of the US banking system. So just like the rest of the United States, banks in Puerto Rico (including my own) fall under the umbrella of the Federal Reserve. The whole point of the event was to help showcase large-scale investments in Puerto Rico that local banks can help finance. This is actually part of the Fed’s responsibility, something that comes from an old law from the 1970s called the Community Reinvestment Act. There were definitely some compelling projects on display yesterday, and I’m particularly interested in a few solar power deals. (You might recall some of my earlier comments on the pitiful electrical infrastructure in Puerto Rico ¦ the island sorely needs investment in that sector, and the pro-forma numbers look quite lucrative.) But aside from the investment projects, the really interesting part about the event was what the keynote speakers from the Federal Reserve had to say about the economy, and the Fed itself. |
| Coronavirus Outbreak Could Cripple EV Sales For Tesla And Nio In ChinaCoronavirus Outbreak Could Cripple EV Sales For Tesla And Nio In China The Chinese auto market has been spearheading the global recession in automotive for two years now, with sales falling in 2018 and 2019 – and predictions of continued recession in 2020. On the other hand, Tesla had been coasting into 2020 on the “success” of their newly assembled Shanghai plant, which helped tack nearly $300 onto Tesla’s stock price in an weeks long epic short squeeze, despite the company not even commencing commercial production in Shanghai yet. But the one thing Tesla, and the Chinese auto market may not have been prepared for – coronavirus – could be putting a halt to the country’s plans for an industry resurgence and Tesla’s plans for – well, whatever they hell they’re doing. In fact, Bloomberg reports that about 8 million cars were sold last year in the 40 Chinese cities that have 10 or more diagnosed cases of coronavirus. That represents about 36.8% of total retail volumes in the country. |
| DDT, capital gains tax relief in Budget? We will know in two daysDDT, capital gains tax relief in Budget? We will know in two daysIndia charges 15% STCG tax if shares are sold within a year and at 10% if sold after a year. |
| Budget may unveil 2 mega agri initiativesBudget may unveil 2 mega agri initiativesInitiatives on crop diversification and another on financial assistance to create FPOs may be announced. |
| Why we must worry about states’ fiscal healthWhy we must worry about states’ fiscal healthDespite a significant increase in central allocation, the fiscal situation of states is a cause for concern. |
| 29 January 2020 FOMC Meeting Statement: Federal Funds Rate UnchangedWritten by Steven Hansen The Federal Open Market Committee (FOMC) – the board of directors of the Federal Reserve maintained the federal funds rate at 1 ‘1/2 to 1-3/4 as expected, and stated:
Overall the Fed appears to believe the economy is little changed since the last meeting, although they are saying consumer spending weakened.
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| Medill News Service: House Democrats roll out $760 billion plan for rebuilding roads, improving railwaysHouse Democrats on Wednesday unveiled a five-year, $760 billion package for rebuilding roads and improving railways, signaling a new election-year priority and urging the White House to get on board. |
| The Fed: Fed leaves key interest rate unchanged, and is keeping a close eye on coronavirusThe Federal Reserve on Wednesday holds its benchmark fed-funds interest rate steady, seeing the economy growing at moderate pace. |
| New York creeps closer to coal divestment from pension fundsNew York state’s top pension fund official says he’s reviewing divesting from 27 coal companies, a decision that could impact some $98 million in holdings by the third-largest U.S. state pension system. |
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