Advertisement
Reuters
Fed set for another 75-basis-point rate hike; early pivot unlikely: Reuters poll
The Federal Reserve will deliver another 75-basis-point interest rate hike next week and likely hold its policy rate steady for an extended period once it eventually peaks, according to a Reuters poll of economists released on Tuesday. Policymakers have done little to push back on market pricing for a third consecutive rate hike of three-quarters of a percentage point at the U.S. central bank’s Sept. 20-21 meeting, with inflation, as measured by the Fed’s preferred gauge, running at more than three times its 2% target. A strong majority of economists, 44 of 72, predicted the central bank would hike its fed funds rate by 75 basis points next week after two such moves in June and July, compared to only 20% who said so just a month ago.
Bloomberg
Intel Lowers Target for Mobileye, Aiming for $30 Billion IPO
(Bloomberg) — Intel Corp. is scaling back expectations for its Mobileye initial public offering in the face of a broader stock slump and could delay the share sale until next year if conditions don’t improve, people familiar with the process said.Most Read from BloombergThe World’s Hottest Housing Markets Are Facing a Painful ResetRussian Defenses Crumble as Ukraine Retakes Key TerritoryJeff Bezos’s Blue Origin Rocket Suffers Failure Seconds Into Uncrewed LaunchUkrainian Successes Raise Russian
Bloomberg
Asia Extends Stock Rally Into US Inflation Report: Markets Wrap
(Bloomberg) — Asian equities extended the global rally in risk assets amid speculation Tuesday’s US consumer price data will support bets that inflation there is near peaking. Most Read from BloombergThe World’s Hottest Housing Markets Are Facing a Painful ResetRussian Defenses Crumble as Ukraine Retakes Key TerritoryJeff Bezos’s Blue Origin Rocket Suffers Failure Seconds Into Uncrewed LaunchUkrainian Successes Raise Russian Collapse to Realm of PossibilityGoldman to Cut Several Hundred Jobs St
American City Business Journals
BP North America to buy Houston-based power retailer EDF Energy Services
EDF Energy Services supplies power, natural gas and related energy services to commercial and industrial customers in the U.S., including large corporations, retailers, universities, manufacturers, municipalities and power generators.
AFP
Asian stocks rally ahead of key US inflation data
Asian stocks continued a global rally on Tuesday morning, ahead of the release of key US consumer price data that is expected to show slightly slowing inflation in the world’s largest economy.
Bloomberg
Credit Calculus Turns Against Stocks With Yield Edge Over Bonds Vanishing
(Bloomberg) — A valuation bulwark that had supported stocks relative to credit is starting to erode.Most Read from BloombergThe World’s Hottest Housing Markets Are Facing a Painful ResetRussian Defenses Crumble as Ukraine Retakes Key TerritoryGoldman to Cut Several Hundred Jobs Starting This MonthJeff Bezos’s Blue Origin Rocket Suffers Failure Seconds Into Uncrewed LaunchUkrainian Successes Raise Russian Collapse to Realm of PossibilityThe model compares profit streams with interest rates. It s
Reuters Videos
Wall Street closes higher ahead of CPI report
STORY: U.S. stocks rallied on Monday, notching their fourth straight session of gains with all three major indexes hitting two-week highs, as investors awaited crucial inflation data due out Tuesday.The Dow rose seven tenths of a percent. The S&P 500 gained a full percent, while the Nasdaq ended more than a percent and a quarter higher.The Labor Department’s consumer price index, expected before Tuesday’s opening bell, is this week’s main event.And Jay Hatfield, chief investment officer for the ICAP ETF, said the CPI report will be heavily scrutinized for any signs of future interest rate hikes from the Federal Reserve.”Right now, consensus for CPI is -0.1%. We’re forecasting a number a little bit lower than that. at 0.2% [FLASH] And I would say the chances of there being a disappointment are rising because we’ve had a pretty dramatic rally into this print. So, I think people are really expecting it to be that number, consensus or better. So if we print higher then that could be bad for the market.”Market-leading mega-caps including Amazon and Tesla provided a lift to the S&P 500, while shares of Apple jumped nearly 4%, days after unveiling updates to its iPhone and Apple Watch. Drugmaker Bristol-Myers Squibb rose 3% following the FDA’s approval of its psoriasis drug late on Friday. Share of rival Amgen, maker of the psoriasis drug Otezla, dropped 4%. And shares of Twitter slipped amid its legal wrangling with Elon Musk, who said in his latest attempt to scrap his deal to buy the company that Twitter’s failure to seek his consent before paying millions of dollars to a former security chief turned whistleblower violated the merger agreement. Twitter called his latest reasoning to back out of the deal “invalid and wrongful.”
TheStreet.com
Occidental Petroleum Stock Jumps As Warren Buffett Adds to $16 Billon Stake
Occidental Petroleum shares jumped higher Monday after billionaire investor Warren Buffett added to both his stake in the oil major and speculation that he may be preparing to buy at least half of its outstanding stock. Buffett boosted his holding in Occidental, which he has been adding to for most of the year, to 26.8%, according to Securities & Exchange Commission filings from late last week, after buying an additional 51.99 million shares. The move came shortly after the Federal Energy Regulatory Commission (FERC) said in late August that Berkshire Hathaway’s additional investment in Occidental was “consistent with the public interest”, giving Buffett the nod to purchase “up to 50%” of the oil major’s common shares.
