Group 1 - The Federal Reserve is expected to announce its first interest rate cut of the year on September 17, potentially leading to a series of reductions that would lower borrowing rates for businesses and consumers [1] - Economists anticipate a quarter percentage point cut, as reports indicate a weaker jobs market than previously believed, with expectations of one or two more rate cuts in 2025 [1][6] - The current benchmark federal funds rate has remained unchanged at 4.25% to 4.5% since December, when the last quarter percentage point drop was announced [6] Group 2 - President Donald Trump is attempting to exert greater influence over the Federal Reserve, raising concerns about the central bank's independence from political pressures [2] - The Trump administration has been pushing for aggressive rate cuts and has taken steps to appoint his nominees to the Fed's board of governors, including the recent confirmation of Stephen Miran [3][4] - Trump publicly urged Fed Chair Jerome Powell to cut interest rates more significantly than previously considered [4]

LIVE Markets Stall Ahead of Fed Rate Decision Last Updated: 27 min ago Investors All But Certain of Fed Quarter-Point Rate Cut By George Glover It's Federal Reserve decision day, and investors are all but certain that they've figured out the central bank's next move. Traders pricing in a 94% chance of a quarter-point interest-rate cut, according to the CME FedWatch tool. The odds of an outsized half-point cut stand at 6%. The consensus on Wall Street is that policymakers will lower borrowing costs to suppor ...

Group 1 - The combined net worth of the world's three richest individuals, Larry Ellison, Elon Musk, and Mark Zuckerberg, is approximately $1 trillion, comparable to the market capitalization of Berkshire Hathaway [1][2] - The Federal Reserve is expected to cut its current funds rate range of 4.25% to 4.50% by a quarter point, with forecasts suggesting further cuts could lower the rate to 3% to 3.25% by Christmas 2026 [3] - The S&P 500 is projected to potentially exceed 7,000 by the end of the year, indicating a near-6% gain, driven by the performance of major tech firms [3] Group 2 - Berkshire Hathaway has accumulated a cash and equivalents war chest of $344 billion and has been a net seller of stocks for 11 consecutive quarters, reflecting Warren Buffett's strategy of waiting for more favorable valuations [4] - A potential one-point rate cut by the Fed could lead to a $3 billion reduction in Berkshire's annual interest income, equating to a 5% decrease in its operating profit [4] - Despite a significant equity portfolio valued at $300 billion, including a $66 billion stake in Apple, Berkshire's recent net selling could result in missed opportunities if investors favor technology investments [4]

By Promit Mukherjee and David Ljunggren OTTAWA (Reuters) - The Bank of Canada reduced its key policy rate to a three-year low of 2.5% on Wednesday, the first cut in six months, and said it would be ready to cut again if risks to the economy increased in coming months. The 25-basis-point cut reflected a weak jobs market and less concern about underlying pressures on inflation, the bank said. It paused its easing campaign in March after reducing rates by a total of 225 basis points in nine months, startin ...

Economic Indicators - U.S. retail sales rose 0.6% month-over-month in August, exceeding expectations [4] - U.S. industrial production increased by 0.1%, beating forecasts for a decline [4] - The NAHB/Wells Fargo Housing Market Index remained steady at 32 [4] Market Performance - The Dow Jones index closed down 126 points or 0.27% at 45,757.90, while the S&P 500 fell 0.13% to 6,606.76 [5] - Nasdaq Composite declined 0.066% to 22,333.96, and Russell 2000 dropped 0.087% to 2,403.03 [6] Company News - Dave & Buster's Entertainment Inc. reported weaker-than-expected results for its second quarter [4] - General Mills Inc. is expected to report earnings of 81 cents per share on revenue of $4.51 billion [16] - Manchester United PLC is anticipated to report an earnings loss of 6 cents per share on revenue of $225.80 million [16] - Cracker Barrel Old Country Store Inc. is expected to report earnings of 80 cents per share on revenue of $855.29 million [16] - Diversified Energy Company PLC dropped 6.10% after announcing a proposed secondary offering of 5,713,353 ordinary shares [16] - New Fortress Energy Inc. surged 54.40% following a long-term gas supply agreement with the Puerto Rican government [16] - Scisparc Ltd. jumped 154.35% after a court-granted stay in merger proceedings with AutoMax Motors Ltd. [16] - Nio Inc. advanced 3.85% following UBS's upgrade from Neutral to Buy and the shipment of a new model [16] - Workday Inc. climbed 5.58% after announcing the acquisition of AI startup Sana for $1.1 billion [16]

Economic Indicators - U.S. retail sales rose 0.6% month-over-month in August, exceeding expectations [4] - U.S. industrial production increased by 0.1%, beating forecasts for a decline [4] - The NAHB/Wells Fargo Housing Market Index remained steady at 32 [4] Market Performance - The Dow Jones index closed down 126 points or 0.27% at 45,757.90, while the S&P 500 fell 0.13% to 6,606.76 [5] - Nasdaq Composite declined 0.066% to 22,333.96, and Russell 2000 dropped 0.087% to 2,403.03 [6] Federal Reserve Insights - A 25-basis point interest rate cut is widely anticipated, with a 100% likelihood of a cut according to market projections [2][8] - The Federal Reserve's expected cut would be the first since December 2024, coinciding with stock market indexes near all-time highs [3][7] - Market sentiment indicates that bets on a larger 50-basis point cut have diminished to 2% [9] Company News - Dave & Buster's Entertainment Inc. reported weaker-than-expected results for its second quarter [4] - General Mills Inc. is expected to report earnings of 81 cents per share on revenue of $4.51 billion [16] - Manchester United PLC is anticipated to report an earnings loss of 6 cents per share on revenue of $225.80 million [16] - Cracker Barrel Old Country Store Inc. is expected to report earnings of 80 cents per share on revenue of $855.29 million [16] - New Fortress Energy Inc. surged 54.40% after announcing a long-term gas supply agreement with the Puerto Rican government [16] - Scisparc Ltd. jumped 154.35% following news of a court-granted stay in merger proceedings with AutoMax Motors Ltd. [16] - Nio Inc. advanced 3.85% after UBS upgraded its rating from Neutral to Buy [16] - Workday Inc. climbed 5.58% after announcing the acquisition of AI startup Sana for $1.1 billion [16] Commodity Market - Crude oil futures traded lower by 0.45% to around $64.23 per barrel [17] - Gold Spot fell 0.55% to approximately $3,669.70 per ounce [17]

Core Insights - The Federal Reserve is expected to announce its first interest rate cut since December, which could have significant implications for consumer confidence and corporate spending [2][3] - Concerns have been raised about the Fed's ability to manage inflation and maintain financial stability, reflecting a shift in perception compared to previous administrations [2][4] - Recent political drama surrounding the Fed, including threats from President Trump and changes in governance, may further impact the institution's credibility and market reactions [4] Group 1: Federal Reserve Actions - The anticipated interest rate cut of 0.25 percentage points aims to stimulate various economic activities such as homebuying and hiring [3] - There is uncertainty regarding how other variables, such as tariffs and technology, will influence the effectiveness of the rate cut [3] Group 2: Market Reactions and Sentiment - Leaders express skepticism about the Fed's current management of inflation and labor market shifts, indicating a lack of confidence in its decision-making [2][4] - The potential for the President to claim victory from a rate cut could further complicate the Fed's credibility and market dynamics [4]

Group 1 - The Federal Reserve is expected to cut its key interest rate by 25 basis points to the 4.00%-4.25% range, with further easing anticipated through the end of next year [2][3] - Global shares and gold have reached unprecedented highs due to expectations of a dovish Fed stance, while U.S. Treasuries and the dollar have weakened [3] - The Bank of Canada is also expected to cut rates amid trade frictions affecting labor markets [4] Group 2 - Japan's exports have declined for the fourth consecutive month, indicating the impact of tariffs imposed by the Trump administration on major economies [5] - Asian markets showed initial subdued performance but later improved, led by a 1.4% increase in Hong Kong's Hang Seng Index [5] - Key economic data releases include U.S. housing starts, British CPI, Euro zone CPI, and Germany's government debt auctions [6]

Market Overview - Asian stock markets are mostly trading lower, influenced by negative cues from global markets and concerns over the US Fed's anticipated interest rate cut [1][2] - Australian shares are notably lower, with the S&P/ASX 200 falling below 8,850, driven by weakness in mining and financial stocks [3][4] Australian Market Details - The S&P/ASX 200 Index decreased by 61.60 points or 0.69% to 8,816.10, while the All Ordinaries Index fell by 59.00 points or 0.65% to 9,092.20 [4] - Major miners like BHP Group and Rio Tinto are down over 1%, with Fortescue declining 1.5% and Mineral Resources slipping almost 3% [4][5] Company-Specific News - BHP announced plans to suspend operations and cut 750 jobs at a Queensland coking coal mine due to low prices and high state royalties [5] - In the tech sector, Afterpay owner Block is gaining almost 1%, while WiseTech Global and Xero are up more than 1% each [6] - PYC Therapeutics shares are down over 28% following the sudden resignation of CEO Dr. Rohan Hockings [7] Currency and Other Markets - The Australian dollar is trading at $0.668, while the Japanese stock market is modestly higher, with the Nikkei 225 up 93.52 points or 0.21% [8][9] - In the US market, major averages ended modestly lower, with the Dow down 125.55 points or 0.3% [14]

Core Viewpoint - The U.S. Federal Reserve has cut interest rates by 25 basis points, indicating a shift in their outlook on inflation and trade policies, which has led to fluctuations in the U.S. dollar against the euro and other currencies [1][2][4]. Group 1: Federal Reserve Actions - The Federal Reserve's recent rate cut is the first since December, lowering the policy rate to a range of 4.00%-4.25% [4]. - Projections suggest that two additional quarter-percentage-point cuts are expected at the remaining policy meetings this year, reflecting a more dovish stance from Fed officials [2][3]. - Fed Chair Jerome Powell described the rate cut as a risk management decision, emphasizing a cautious approach to future rate changes [5]. Group 2: Market Reactions - Following the rate cut, the U.S. dollar initially fell to a four-year low against the euro but later recovered, trading higher during a volatile session [1]. - The euro reached its highest level since June 2021 at $1.19185 before settling lower at $1.18305 against the dollar [6]. - The dollar index, which measures the U.S. currency against six others, increased by 0.3% to 96.926 [6]. Group 3: Economic Indicators - Data released indicated a decline in U.S. single-family homebuilding and permits for future construction in August, attributed to a surplus of unsold new houses and a weakening labor market [6]. - Analysts suggest that while the dollar may face further losses, external global economic conditions will also play a significant role in its performance [7].