US Briefing - Tuesday 15.09
Headlines
  • House Minority Leader McCarthy Unveils GOP Roadmap To Win Back Majority
  • Hurricane Sally Churns Toward Central Gulf Coast; Strengthens To Category 2
  • US Blocks Shipments Of Certain Chinese Products Over Forced Labor Issue
  • ECB Panetta: Governing Council Not Entirely Happy With The Results Of Policy
  • German ZEW Survey Unexpectedly Rises In September Despite Headwinds
  • UK Internal Market Bill To Override Parts Of Brexit Deal Clears First Hurdle
  • UK Employment Picture Worsens As Payrolls Fall, Unemployment Rate Rises
  • IEA Cuts 2020 Oil Demand Growth Forecast, Sees Treacherous Path Ahead
  • Oil Prices Drop As Fuel Demand Outlook Weighs; Gold Near Two-Week High
  • European Equity Markets See Modest Gains; Retail Sector Outperforms
  • US Equity Futures Up Over One Percent Ahead Of Fed Policy Meeting
Commentary
Fed Forecasts To Leave Public Guessing On New Rate-Setting Plan

The Federal Reserve’s new approach to setting interest rates will probably be hard to divine from the economic projections it’s set to publish on Wednesday.

 

That’s because those forecasts, released alongside its policy decision, only encapsulate Fed officials’ views about the next few years. The new framework -- which dictates a less-aggressive response to rising inflation than in the past -- likely won’t be put to the test until later on.

 

The Fed isn’t expected to offer clearer guidance about the conditions it wants to see before raising rates in the statement it releases at 2 p.m. As a result, Chair Jerome Powell and his colleagues will be asking the public to believe them when they say that this time will be different, because of their strategy shift. (Bloomberg - Continue Reading)

German Investor Confidence Hits 20-year High

Investor confidence in Europe’s largest economy has hit its highest level in more than two decades despite floundering Brexit talks, signs of a second wave of coronavirus cases, and further evidence that the recovery in the region could be slowing.

 

German headline consumer confidence, a measure of the outlook for the next six months, rose unexpectedly this month to 77.4 points, its best mark since March 2000, the German ZEW thinktank reported on Tuesday. This beat the market estimate of 69.8 and the August reading of 71.5, the highest result since January 2004.

 

The current conditions index increased to -66.2 to exceed both the market estimate of -72.0 and -81.3 last month, according to the ZEW’s monthly survey of investors and financial market experts. “The overall outlook has improved significantly compared to the previous month,” the ZEW said, citing the rise in both readings. (Live Squawk - Continue Reading)

A Spoonful Of Suga Could Sweeten Japan’s Post-Abe Economy

As Yoshihide Suga replaces Shinzo Abe as Japanese Prime Minister, radical departures from Mr. Abe’s broad economic program are unlikely. But Mr. Suga could still leave a lasting impact if he declines to repeat his predecessor’s greatest mistakes.

 

Japan has actually already seen a lot of Suganomics. The incoming prime minister was Mr. Abe’s right-hand man. On the supply-side, Mr. Suga was an advocate of Mr. Abe’s overtures on Asian trade, attempts to boost the number of foreign workers, and was also closely involved with privatization policies in previous governments.

 

One of Mr. Suga’s preoccupation is reforming Japan’s floundering regional banks. That would be a useful contribution: Encouraging mergers may unlock needed cost savings as lenders are pinched by decades of low rates. (WSJ - Continue Reading)

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