The CNBC app, global market news in one place. Customizable sections and personalized alerts, stocks tracking, interactive charts and market insights, all in your hands. Stay connected, stay informed, download the CNBC app today. >> Oh, I'm very excited to be back in the studio. More excited the fact that I've got Juliana Talib leading the show. How are you. >> I'm doing well. Good to have you back. >> It's great to be back, I have to say. Right. Welcome to the scorebox Europe with Juliana Tattlebound. Uh a ...

Core Viewpoint - The Federal Reserve's Open Market Committee (FOMC) cut the key overnight borrowing rate to 3.5%-3.75%, aligning with market expectations, but future rate cuts may be limited due to inflation concerns [1][2][3] Group 1: Federal Reserve Actions - The FOMC's decision to cut rates was a 9-3 vote, indicating a division among members regarding the need for further cuts to support the labor market versus concerns about inflation [2] - The Fed's preferred inflation gauge is currently at 2.8%, above the 2% target, with expectations to decrease to approximately 2.4% by the end of 2026 [2] - The FOMC's dot plot suggests only one rate cut is anticipated in 2026, indicating a higher threshold for future cuts [3] Group 2: Market Reactions - Rate-sensitive investments saw a rally, with the small-cap Russell 2000 index increasing by 1.3% and the State Street SPDR S&P Homebuilders ETF rising by 3% [5] - Historical data indicates that stocks perform well during non-recession periods when the Fed cuts rates, averaging a 15% annualized return since 1970 [5] - Some analysts caution that optimism regarding the pace of future rate cuts may be overstated, suggesting that the anticipated timeline for lower interest rates could be longer than expected [5]

Group 1 - Sony is planning to launch a U.S. dollar stablecoin in 2026 to enhance its digital ecosystem, allowing users to pay for games, anime, and subscriptions [1][2] - The stablecoin aims to bypass credit card fees, with expectations that most U.S. users will adopt the service [2] - Sony Bank has applied for a national banking charter in the U.S. to enable its Connectia Trust unit to engage in cryptocurrency activities, including issuing dollar-pegged stablecoins [3] Group 2 - The stablecoin infrastructure will be provided by Bastion, which raised $14.6 million in a seed round led by Coinbase Ventures, with participation from Sony's venture arm [2] - The GENIUS Act, signed into law in April, has encouraged a surge in stablecoin interest from traditional financial institutions and tech companies [3] - Stablecoin issuers typically hold reserves in short-term treasury bonds, generating significant profits without sharing with users, as evidenced by Tether's reported net profits of over $13 billion for 2024 [4]

Core Insights - Ant International, HSBC, and Swift have successfully completed a Proof of Concept (POC) for cross-border transfer of tokenised deposits using ISO 20022 standards [1] - The initiative utilizes Swift's global messaging network, HSBC's Tokenised Deposit Service, and Ant International's blockchain technology [1] - This POC represents a significant milestone in the collaboration between these companies to enhance the benefits of tokenisation for businesses [1] Company Summaries - Ant International is leveraging its blockchain technology in collaboration with HSBC and Swift to facilitate cross-border transactions [1] - HSBC has launched a Tokenised Deposit Service that plays a crucial role in this POC, indicating its commitment to innovation in financial services [1] - Swift's global messaging network is integral to the success of this initiative, showcasing its importance in the evolving landscape of financial transactions [1]

Core Viewpoint - The Federal Reserve's decision to cut interest rates by 25 basis points reflects a complex economic situation in the U.S., characterized by high inflation and a weakening job market, leading to a total reduction of 75 basis points for the year [1][5]. Economic Context - The current federal funds rate is set between 3.50% and 3.75%, marking the sixth rate cut since September of the previous year [1]. - Core PCE inflation remains high at 2.8%, exceeding the Fed's target of 2%, while the unemployment rate has risen to 4.4%, the highest since November 2021 [1][4]. Political Influence - Former President Trump criticized the Fed for the modest rate cut, suggesting it should have been doubled, reflecting his preference for aggressive monetary easing to stimulate economic growth [3][4]. - The internal dissent within the Fed was notable, with three members voting against the decision, indicating differing views on the economic outlook [3]. Fed's Stance - Fed Chair Powell emphasized that the decision to cut rates was challenging and aimed at assessing future economic performance, indicating a cautious approach to further easing [3][5]. - Powell directly attributed rising inflation to Trump's tariff policies, highlighting the Fed's effort to maintain its independence from political pressures [4]. Global Economic Impact - The rate cut is expected to weaken the dollar, benefiting commodities priced in dollars, and potentially stimulate investment and consumption globally [5]. - However, there are risks associated with rapid rate cuts, including increased inflationary pressures and the potential for asset bubbles [5]. Future Considerations - The ongoing tension between Trump's growth-focused approach and Powell's dual mandate of employment and price stability will continue to influence Fed policy [4][5]. - The selection of the next Fed Chair, as Trump seeks a candidate more aligned with his views on aggressive rate cuts, could have significant implications for U.S. and global monetary policy [4][5].

Core Points - The Federal Reserve cut its key rate by a quarter-point for the third consecutive meeting, bringing the fed funds rate to a range of 3.5% to 3.75% [1][2] - Fed Chair Jerome Powell indicated that the current rate is at the high end of the "neutral" range, suggesting a balance between stimulating the economy and controlling inflation [2] - Fed officials project only one further quarter-point rate cut next year, contingent on incoming economic data and the evolving outlook [3] Economic Implications - The Fed's divided views on rate cuts indicate that upcoming economic reports could influence decisions, particularly if unemployment rises unexpectedly or inflation increases [4][9] - Key reports on inflation and the job market are expected soon, which will provide more clarity on whether further rate cuts are necessary [5] - Financial markets currently price in a 22% chance of a fourth consecutive rate cut in January [6] Internal Fed Dynamics - There was dissent among Fed officials regarding the rate cut, with two members opposing the decision and six others suggesting that keeping rates flat was appropriate [7] - The divided vote reflects the Fed's challenging position of managing rising unemployment alongside accelerating inflation [7][10] - Powell noted that inflation this year has been significantly influenced by tariffs imposed during the previous administration, affecting consumer prices [10][11]

Core Insights - The transition from informational AI to actionable AI is evident as India approaches 2026, with agentic models leading this shift [1][28] - The BFSI sector has emerged as the primary beneficiary of agentic AI, with significant applications in collections, underwriting, fraud detection, and customer automation [1][17] Group 1: Adoption and Impact of Agentic AI - Enterprises are increasingly adopting multi-purpose AI agents to enhance customer interactions and streamline operational workflows [2] - The focus has shifted from experimentation to measurable ROI and outcomes in the deployment of agentic AI [3][28] - Companies like Gnani.ai are entering the agentic AI space, recognizing the potential for multi-purpose AI automation [4] Group 2: Transformation of Customer Interactions - Agentic AI has significantly improved customer-facing processes, enabling systems to understand context and solve complex problems [7] - Voice-based agents have seen a surge in adoption due to their improved latency and accuracy, particularly among large enterprises [8] - Notable implementations include Air India's partnership with Salesforce and State Bank of India's integration of autonomous workflows [9] Group 3: Enhancing Employee Productivity - The deployment of internal AI co-pilots is transforming how employees access information and perform tasks across various sectors [11] - Axis Bank reported a 30% increase in product conversions and a 10-point rise in net promoter score due to its GenAI-powered assistant [12] - Tata Steel's use of GenAI for predictive maintenance has led to reduced equipment downtime and cost savings [13] Group 4: BFSI Sector Dynamics - The BFSI sector is experiencing nuanced impacts from agentic AI, particularly in debt collection and fraud detection [17][19] - Companies are deploying specialized agents for various functions, enhancing operational efficiency [18] Group 5: Build vs Buy Strategy - Many companies prefer adopting SaaS-based agentic solutions from AI startups rather than developing in-house capabilities [20][21] - When proprietary business intelligence is crucial, large enterprises are more inclined to build in-house solutions [25] Group 6: Future Outlook - The shift towards actionable AI is expected to continue, with AI agents becoming capable of independent reasoning and task execution [28] - Industries such as logistics and automotive are poised for significant advancements with the integration of AI agents [30] - While automation may lead to job displacement, new roles are anticipated to emerge, alongside challenges in data security and workforce adaptation [31]

分组1 - The Federal Reserve has cut interest rates by 25 basis points to a new range of 3.5% to 3.75%, indicating a potential pause in further cuts for the time being [1][3] - The Fed's balance sheet policy is more aggressive than anticipated, with plans to begin buying securities on December 12, totaling $40 billion for several months, focusing on bills and potentially up to three-year maturities [5][11] - The Fed's decision reflects a response to liquidity tightness in the financial system, particularly in the repo market, suggesting that reserves had been reduced too much relative to market needs [12][13] 分组2 - The voting results showed a split among Fed officials, with nine in favor of the rate cut, two against, and one supporting a larger cut of 50 basis points, marking the first instance of three dissents since 2019 [4] - Fed Chair Jay Powell emphasized that the current measures should not be classified as quantitative easing, but rather as maintaining liquidity and managing reserves [6][9] - Market reactions indicate a 24% probability of another rate cut in January, increasing to 44% in March, suggesting growing confidence in future cuts as the year progresses [3]

Core Viewpoint - State Street and Galaxy Asset Management are set to launch a tokenized liquidity fund named SWEEP in early 2026, utilizing stablecoins to enhance institutional cash management through public blockchains [1][2]. Group 1: Fund Details - The SWEEP fund will accept subscriptions and redemptions in PYUSD, a stablecoin issued by Paxos, contingent on having sufficient assets to process requests [2]. - Only Qualified Purchasers who meet specific thresholds will be eligible to access the fund, with Ondo Finance committing approximately $200 million to seed the product [2]. Group 2: Technological Framework - The fund is expected to launch on the Solana blockchain, with plans to incorporate Stellar and Ethereum subsequently [3]. - Galaxy Asset Management intends to utilize Chainlink tools for data and asset movement across different blockchains [3]. Group 3: Industry Collaboration - Kim Hochfeld, global head of cash and digital assets at State Street, emphasized the collaboration with Galaxy as a significant step in the evolving relationship between traditional banks and crypto firms [4]. - Ondo Finance President Ian De Bode highlighted the convergence of traditional and crypto markets through their investment in the SWEEP fund [4]. Group 4: Market Implications - The tokenization represented by SWEEP is seen as a critical advancement in bridging traditional finance with the onchain economy [5]. - This initiative builds on previous collaborations between the firms, including a series of digital-asset ETFs launched in 2024 [5].

Core Points - US stock market rose significantly following the Federal Reserve's decision to cut interest rates again, with the Dow Jones increasing by nearly 500 points and the S&P 500 approaching its all-time closing record [1][6] Group 1: Federal Reserve Actions - The Federal Reserve approved a 0.25 percentage point interest rate cut, marking the third cut this year, bringing the federal funds rate to a range of 3.50% to 3.75% [3][8] - The Fed announced it will begin purchasing Treasury securities starting December 12, with plans to buy $40 billion over the next 30 days [9][10] - The Fed's statement indicated that it would no longer set a total operation limit for its standing overnight repurchase agreements, allowing for full allocation through the FedTrade Plus platform [4][9] Group 2: Market Reactions - Wall Street interpreted the Fed's policy statement and Chairman Jerome Powell's remarks as positive signals for the stock market, particularly the announcement of short-term bond purchases [4][10] - The removal of the phrase "still at low levels" regarding the labor market suggests a shift in the Fed's focus towards supporting the economy rather than controlling inflation [10] - Market expectations indicate a 68% probability that the Fed will cut rates two or more times next year, despite the Fed's own forecast suggesting only one cut [5][10] Group 3: Economic Outlook - Economic growth expectations appear stronger, with a more moderate inflation outlook and neutral employment projections, contributing to bullish reactions in the stock market and bond yields [5][10] - The S&P 500 index is projected to potentially break the 7000-point mark in the coming weeks, following the recent upward trend [11]