On December 13, 2023, a trader was working in the New York Stock Exchange hall, and the press conference held by Federal Reserve Chairman Jerome Powell after the Federal Reserve’s interest rate announcement was played on the screen.
Brendan McDermid | Reuters
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see?You can subscribe here.
What you need to know today
The White House on TikTok
The White House has called on the divided Senate to “act quickly” on the TikTok bill, which would require Chinese technology company ByteDance to sell the video app or face a ban in the United States. The House passed the bill last week with strong bipartisan support, and President Joe Biden has said he will sign the deal if approved by Congress.
Optimistic about global trade
The chief executive of Hapag-Lloyd, one of the world’s top shipping companies, said he was more optimistic about trade this year. He told CNBC that inventory has been depleted in many cases and the ocean carrier has bounced back after the Lunar New Year.The company’s share price has plummeted recently Net profit fell sharply and cut the dividend in 2023.
Laid-off tech workers face depression
Recently laid-off tech workers are battling a “sense of impending doom” as layoffs are at their highest level since the dot-com bust. CNBC spoke with a number of people about how they are coping with the challenging market. Jobs are becoming harder to find, and many in the industry have had to take pay cuts.
(PRO) Risks of the U.S. election to the Chinese stock market
Goldman Sachs revised its barometer of risk levels for U.S.-China tensions in Chinese stocks. It now ranks 53rd out of 100, indicating a “somewhat benign” outlook for relations between the two countries. “The lead-up to and election of the election will have a significant impact on global asset markets, Sino-U.S. relations, and Chinese stock market returns,” analysts said.
bottom line
This will be a critical week for Wall Street as market attention turns to the Federal Reserve.
Signals from Fed Chairman Jerome Powell and other officials about future rate cuts will be in focus as policymakers release updates on interest rates, economic growth, inflation and unemployment at a two-day meeting that ends on Wednesday.
A double dose of bad news last week Rising consumer and producer prices have stoked concerns among investors that inflation may have stabilized as price pressures remain.
“Inflation data at the start of the year were better than expected, which would favor a hawkish message from the Fed at the March FOMC meeting. That said, in a very close scenario, we also I don’t think this will be reflected in fewer signals from the Fed. “Easy policy will be implemented this year,” Deutsche Bank said in a report.
“Our benchmark remains that the first rate cut will occur in June, with the Fed cutting rates by 100 basis points this year. However, risks are clearly tilted towards a more hawkish outcome. The timing and pace of rate cuts this cycle is likely to be irregular and may There will be a heavy reliance on data.”
Investors also want to know whether the Federal Reserve will continue to implement three interest rate cuts this year. Some economists believe it is possible to reduce this to just two.
JPMorgan CEO Jamie Dimon recently said central banks should cut interest rates slowly given inflationary pressures.
“You can always cut it quickly and drastically. Their credibility is kind of at stake here,” he said. “I would even wait until June goes by to let everything get sorted out.”
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