38 minutes ago
CNBC Pro: This high-yield bond fund with “conservative” assets offers a 10% dividend
The fund manager behind a bond fund that offers a 10% dividend has predicted a “credit deterioration” for the broader economy in the near future.
However, the portfolio manager believes that the fund is well positioned for such a scenario while still generating above-market returns.
It is one of the few funds available to retail investors across Europe that is currently offering double digit returns.
CNBC Pro subscribers can read more here.
– Ganesh Rao
38 minutes ago
CNBC Pro: ‘Undeniably Huge’ Opportunity: Bank of America Names Global ‘Winners’ in Generative AI
Bank of America has described the AI opportunity in the software industry as “undeniably enormous” and has rated European companies in the sector.
“We see Gen AI as an opportunity for the software industry to deliver potential revenue gains through an enhanced value proposition and data monetization, in addition to productivity improvements,” the bank said.
CNBC Pro subscribers can read more here.
– Lucy Handley
Before an hour
Australia appoints Michele Bullock as new central bank governor
Reserve Bank of Australia Deputy Governor Michele Bullock has been appointed as the new central bank governor, the country’s Treasury announced on Friday.
She succeeds incumbent Philip Lowe, whose term of office expires on August 17, almost completing his 43 years at the bank. Treasurer Jim Chalmers described Bullock’s appointment as “the optimal balance between providing exceptional experience and expertise and offering a new leadership perspective.”
Bullock’s appointment would mean the RBA will have a vacant post as deputy governor, which the government says it will fill in the coming months.
— Lim Hui Jie
Before an hour
Singapore avoids tech recession and grows 0.7% yoy
Singapore’s economy avoided a technical recession in the second quarter, growing 0.7% yoy and 0.3% qoq, advanced estimates showed.
Economists polled by Portal expected growth of 0.3% qoq and 0.6% year-on-year.
In the first quarter, Singapore’s economy contracted a seasonally adjusted 0.4% qoq and posted modest year-on-year growth of 0.4%.
– Jihye Lee
Before an hour
Fed’s Waller says two more rate hikes are needed to bring inflation down
Federal Reserve Board Governor Christopher Waller said two more rate hikes are needed to bring inflation down to its target.
“I believe two more 25 basis point increases in the target range are needed in the four remaining sessions of this year to keep inflation on target,” he said at an event at New York University on Thursday.
He called the latest CPI reading, which showed a slowing rate of inflation, as “good” news, adding: “A single data point doesn’t make a trend.”
“I need to see this improvement continue before I’m confident that inflation has slowed,” he said.
– Jihye Lee
12 hours ago
The producer price index rises less than expected
The producer price index, a measure of what wholesalers pay for goods, rose 0.1% in June. Economists polled by Dow Jones were expecting a 0.2% increase. The core PPI, which excludes volatile food and energy prices, rose 0.1% — also less than expected.
— Fred Imbert
7 hours ago
The S&P 500 is up more than 3% since rate hikes began
In another positive sign for the market, the S&P 500 is now up 3.3% since the Fed began raising rates in March 2022. The move comes as traders are saluting the prospect that the central bank can rein in inflation without plunging the economy into recession.
See grafic…
SPX since Fed rate hikes began
“For the first time in 2023, we’re currently being asked by multiple clients if we think the S&P 500 is now on track to make a new high before the end of the year. “Yes,” I agree, Goldman Sachs’ John Flood wrote in a comment Note Wednesday.
— Fred Imbert
6 hours ago
St. Louis Fed’s Bullard resigns
The St. Louis Federal Reserve announced Thursday that Jim Bullard will resign as President effective August 14.
The bank announced that effective August 15, he will assume the position of dean at Purdue University’s Mitchell E. Daniels, Jr. School of Business. She also added that Bullard “has retired from his monetary policy role at the Federal Reserve’s Federal Open.” market committee and other related duties assumed and all public speaking ceased.”
“It has been both a privilege and an honor to have been a part of the St. Louis Fed for the past 33 years, including as its President for the past 15 years,” Bullard said in a statement. “I am also grateful to have worked with such dedicated and inspiring colleagues throughout the Federal Reserve System.”
Bullard is not a voting member on the policy committee this year.
— Fred Imbert
5 hours before
Thursday’s US stock market rally is wide and deep
Nearly 2.4 shares are up Thursday on the New York Stock Exchange for each decline, and rising volume nears 71% versus less than 29% falling volume, according to FactSet data. In all, there are 167 new NYSE highs versus just 11 new lows.
Over on the Nasdaq exchange, nearly two shares are up for every share that’s down, and the up volume is a little under 73%, far exceeding the down volume of less than 27%. Nasdaq new highs come in at 256 versus just 52 new lows.
– Scott Snapper