Fed Chairman Jerome Powell said the central bank’s corporate bond purchases ultimately will move away from ETFs and into individual issues.
The Fed this week announced it would be buying the actual bonds as part of two credit facilities it implemented during the coronavirus pandemic.
The reemergence of coronavirus cases in China’s capital city of Beijing over the weekend adds further uncertainty for businesses and consumers, who may be less willing to spend as a result.
“The resurgent panic will slow the pace of other cities’ reopening, hurt consumer confidence and drive up unemployment even further,“ says Dan Wang, analyst at The Economist Intelligence Unit (EIU).
United is making a bet on vacationers looking for winter getaways in Florida.
Business travel remains weak because of the coronavirus pandemic so the airline is betting on vacationers.
The expansion is the largest addition of nonhub flying for the carrier, a departure from its network model.
Sweden’s gross domestic product (GDP) tumbled 8.6% in the second quarter of the year.
David Oxley, senior Europe economist at Capital Economics, told CNBC via email that Sweden’s sharp GDP contraction “confirms that it has not been immune to Covid, despite the government’s well-documented light-touch lockdown.”
Former Malaysian Prime Minister Najib Razak has been sentenced to 12 years in jail after being found guilty on all seven charges in a case linked to the multi-billion dollar financial scandal at state fund 1MDB.
The busiest week of earnings season rolls on when Visa reports after the bell Tuesday, and options traders are betting on a big payoff when the payment giant’s results cross the wire.
The Dow component’s shares are up nearly 6% on the year thanks to a 35% bounce off the March lows, paving the way for what traders believe will be an earnings report that surprises to the upside.
Futures contracts tied to the major U.S. stock indexes rose Monday evening as investors looked to extend Wall Street’s gains from Monday’s dramatic comeback.
Dow Jones Industrial Average futures rose 448 points, suggesting an open gain of nearly 495 points when regular trading resumes on Tuesday. S&P 500 and Nasdaq-100 futures also implied a positive Tuesday start for the two indexes.
The Federal Reserve is continuing to buy corporate bonds, following up on a pledge it made in March.
Corporate America titans such as Microsoft, Apple and Home Depot have been among the beneficiaries.
Questions have been raised over “moral hazard” as the Fed buys debt from companies that don’t seem to need the central bank’s help.
The United States shocked European nations earlier this month when it pulled out of international negotiations over such a tax.
The United States has been a fierce opponent of plans to make digital giants pay more in taxes, as the majority of these firms are American. It is the White House’s view that digital taxes are unfair toward U.S. companies.
But Paschal Donohoe, the Irish minister of finance, told CNBC Wednesday: “I am actually optimistic about our ability to make progress on this inside the OECD.”
Germany was lauded throughout the coronavirus crisis in Europe as a country that had seemingly managed to control the virus’ spread.
It was well-organized from the start, implementing a contact tracing system, and has kept its death toll low.
But in recent days it has seen a number of significant outbreaks of the virus.
