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Articles From: IBKR Macroeconomics By: Jose Torres Yesterday’s rate projection and economic outlook from the Federal Reserve and today’s European Central Bank actions illustrate that monetary policymakers believe additional hawkish actions are still needed to curtail moderating but still high inflation. Meanwhile, the U.S. labor market is continuing to show signs of weakening while an uptick in retail sales last month illustrates that shoppers are still spending despite higher interest rates and increases in the overall cost of living. With this week being the second-consecutive week of high unemployment claims…

Articles From: State Street Global Advisors By: Maxwell Gold, CFA, George Milling-Stanley, Diego Andrade, Robin Tsui, CPA, CAIA, CA Heading into 2023, gold’s prospects looked positive despite muted performance in 2022 and a similar consensus sentiment among market participants. And gold has certainly shone brightly on an absolute and relative basis thus far in 2023: Year to date, gold posted a 7.61% return compared to 7.68% for global equities and 3.03% for global fixed income. Over the last 12 months, gold has outperformed both global equities and global fixed income…

The Federal Reserve held interest rates steady Wednesday, but officials signaled they are prepared to raise rates again this year to tame stubborn inflation. The central bank maintained its benchmark interest rate in the range of 5%-5.25%, the first time since January 2022 the Fed made no change to interest rates following a policy meeting. Fed officials did, however, raise their interest rate forecasts for this year, signaling rates could rise to as high as 5.6%, implying two additional rate hikes are likely this year. Three officials see rates rising…

NEW YORK, June 8 (Reuters) – U.S. grains merchant Bunge Ltd (BG.N) is putting the final touches on a deal to merge with Glencore Plc (GLEN.L)-backed peer Viterra and create an agricultural trading giant worth more than $30 billion, including debt, people familiar with the matter said on Thursday. The deal, whose terms have not been previously reported, would come as Russia’s war in Ukraine has tested the security of supply in global food markets. Its potential impact would be examined closely by antitrust regulators. Bunge, whose market value is…

The indictment of former President Donald Trump on charges related to the mishandling of classified documents is an event of historic proportions, marking the first time a former president has faced federal charges​. However, this historic event is not one of celebration but a moment of deep concern, signaling a dangerous turn towards the politicization of justice and a serious threat to the integrity of the American legal system. The Department of Justice has accused Trump of seven counts, including a charge under the Espionage Act and charges of obstruction…

On June 6, 2023, the Reserve Bank of Australia (RBA) took markets by surprise, hiking its official interest rate by 0.25% to 4.1%, a level not seen since early 2012​. This decision was primarily driven by concerns about rising inflation and wage growth, with the RBA governor suggesting that further tightening of monetary policy might be required​1​. A day later, the Bank of Canada (BoC) followed suit, raising its target for the overnight rate by 25 basis points to 4.75% and continuing its policy of quantitative tightening​. These unexpected moves…

March 17, 2023 – One week after trading was halted for SVB Financial and regulators took control of the holding company for Silicon Valley Bank and other subsidiaries, SVB Financial has taken the next inevitable step: Today it announced that it has formally filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York. SVB Securities, SVB Capital’s funds, and general partner entities are not included in the Chapter 11 filing. These businesses will continue to operate normally as SVB Financial Group proceeds…

WASHINGTON (AP) — Two large banks that cater to the tech industry have collapsed after a bank run, government agencies are taking emergency measures to backstop the financial system, and President Joe Biden is reassuring Americans that the money they have in banks is safe. It’s all eerily reminiscent of the financial meltdown that began with the bursting of the housing bubble 15 years ago. Yet the initial pace this time around seems even faster. Over the last three days, the U.S. seized the two financial institutions after a bank…

Financial regulators said Sunday night depositors of the failed Silicon Valley Bank will have access to all of their money starting Monday, March 13, while announcing new facilities to backstop deposit withdrawals across the banking system amid fears of contagion following SVB’s shock failure last week. In a joint statement, the heads of the Federal Reserve, Treasury Department, and FDIC said: “After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its…

Signature Bank New York, which worked with cryptocurrency companies, was closed by the state chartering authority, New York Department of Financial Services (DFS), U.S. regulators announced on Sunday March 12. All depositors will be able to receive 100% of their money, federal regulators said. “All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer,” according to a joint statement from Secretary of the Treasury Janet Yellen, Federal Reserve Board Chair Jerome Powell, and the Federal Deposit Insurance…