Group 1 - A US appeals court has blocked former President Trump's attempt to remove Fed Governor Lisa Cook, which reinforces the independence of the central bank [1]

Group 1 - The Federal Reserve's meeting on interest rates is scheduled for September 17, with a 100% probability of a rate cut, 95.9% chance of a 25 basis points cut, and 4.1% chance of a 50 basis points cut [1] - The Hong Kong stock market has been active due to rate cut expectations, with the Hang Seng Index and Hang Seng Tech Index opening higher, and ETFs focused on AI and internet sectors rising over 1% [1] - There is a market expectation of a total rate cut of 75 basis points within the year, with the CME Federal Funds futures model indicating three rate cuts in 2025, each by 25 basis points [1]

Market Overview - S&P and Nasdaq futures increased following the Senate's confirmation of Stephen Miran as a Federal Reserve board governor, coinciding with a record-setting day on Wall Street [1][2] - The Dow Jones Industrial Average futures remained mostly flat, while the S&P 500 rose by 0.2% and the Nasdaq 100 increased by 0.3% [1] Federal Reserve and Interest Rates - The Senate confirmed Stephen Miran in a narrow 48-47 vote, positioning him to influence interest rate decisions during the upcoming Federal Reserve policy meeting [2] - Miran's intention to take a leave of absence from his White House advisor role has raised concerns regarding the independence of the Federal Reserve, especially amid President Trump's efforts to dismiss Fed governor Lisa Cook [3] Stock Market Performance - On Monday, stocks rose, leading the S&P 500 and Nasdaq Composite to achieve new record highs, driven by ongoing US-China trade talks and expectations of a Federal Reserve rate cut [4] - Tesla's stock increased by 2% in premarket trading after CEO Elon Musk purchased shares for the first time since 2020, contributing to the stock's recovery from year-to-date losses [5] Economic Indicators - Investors are anticipating the latest retail sales figures, which will provide insights into consumer behavior amid persistent inflation and a fluctuating labor market [4] - There is a strong market expectation for a 25 basis-point rate cut by the Federal Reserve, with a 96% probability assigned to this outcome [5]

Core Viewpoint - James Bullard, former president of the Federal Reserve Bank of St. Louis, expressed interest in becoming the central bank chair under favorable conditions, emphasizing the importance of defending the dollar's reserve currency status, maintaining low inflation, and protecting the Fed's independence [1][2]. Group 1: Fed Chair Replacement - The Trump administration is actively interviewing candidates to replace Jerome Powell as Fed Chair, whose term ends next May [2]. - Bullard has had discussions with Treasury Secretary Scott Bessent regarding the Fed chair position and other related issues [2]. Group 2: Monetary Policy and Interest Rates - The Federal Reserve has maintained its federal funds rate target range at 4.25% to 4.5% due to inflation pressures exceeding the 2% target, which are expected to rise further due to Trump's trade tariffs [3]. - The Fed is anticipated to cut its interest rate target by a quarter of a percentage point in an upcoming meeting, with expectations of further reductions later [4][5]. - Bullard predicts that the Federal Open Market Committee will cut rates by 25 basis points and signal additional easing measures, with markets pricing in a total of 75 basis points by the end of the year [5].

And let's talk more about what investors and economists are looking for. Investors expecting the Fed to kick off a cutting cycle this week. They'll be listening closely to Chair J.Pal's commentary for signs of how many cuts could be ahead. For more on the future of the Fed, want to bring in John Hillsenrath Stone senior adviser and Yahoo Finance contributor and Paul Grunwald, S&P Global Ratings global chief economist. Guys, thanks so much for being here.John, you do a really interesting survey of former Fed ...

Cryptocurrency groups are urging the Bank of England (BoE) to abandon plans to cap the amount of stablecoins that individuals and businesses can hold in the UK. “Imposing caps on stablecoins is bad for UK savers, bad for the City and bad for sterling,” Tom Duff Gordon, vice-president of international policy at Coinbase, told the Financial Times. “No other major jurisdiction has deemed it necessary to impose caps.” The pushback comes following an FT report that BoE officials plan to continue pursuing the ...

Monetary Policy and Federal Reserve Actions - The U.S. Federal Open Market Committee (FOMC) is expected to cut rates by 25 basis points (bps) for the first time in 2025, following a total cut of 100 bps in the last three meetings of 2024 [1][3] - The decision is complicated by low job gains, including a loss of 13,000 jobs in June, while inflation is slowly increasing, influenced by tariff policies [2] - There is speculation whether the rate cut could be larger, potentially reaching 50 bps, which would set rates between 3.75% and 4.00% for the first time in nearly three years [3] Political Influences on the Federal Reserve - The politicization of the Fed is evident, with President Trump criticizing Fed Chair Jerome Powell for being slow to reduce rates and attempting to remove Fed Governor Lisa Cook over personal finance allegations [4] - A federal judge's injunction reversed Trump's decision to fire Cook, but the White House is contesting this to prevent her from voting in the upcoming FOMC meeting [4][6] - The Senate is set to vote on confirming Stephen Miran, a pro-Trump official, to the FOMC, who has previously advocated for a 300 bps rate cut [5] Manufacturing Sector Performance - The Empire State Manufacturing Index reported a negative reading of -8.7 for September, significantly below the expected +4.5 and a decline from August's 11.9 [7][8] - This marks the first negative reading in three months and reflects a broader trend, with seven out of the past twelve months showing negative growth in New York State manufacturing [9]

Economic Overview - China's economy is slowing, with weaker than expected economic data for August showing retail sales, industrial production, and property investment all missing estimates [4] - Exports from China remain relatively strong, up 4% year-over-year, despite a significant drop in shipments to the US, as China offsets this with increased shipments to other regions [5] - The Shanghai Composite has recently recaptured levels not seen in 10 years, indicating some market recovery [5] Market Dynamics - Earnings expectations are being cut, but stock gains are occurring due to expanding valuations driven by excitement around AI, with the three largest internet companies increasing capital expenditures by 60% this year [6] - Institutional investors are moving away from low-yielding bonds, with the 10-year Chinese government bond yielding just 1.8%, and reallocating into stocks that are still relatively inexpensive at 12 times next 12 months earnings [7] US-China Relations and Trade - There is ongoing speculation about a potential trade deal between the US and China, with the deadline for negotiations pushed to November 10th [17] - China's ability to maintain strong supply chains makes it challenging for companies to relocate manufacturing, despite the 30% increase in tariffs on China [18] Corporate Developments - The Nvidia anti-monopoly probe is raising concerns about headline risks for US companies operating in China, as China aims for greater self-sufficiency [15][16] - Major companies like Apple, Nvidia, and Tesla are significantly impacted by the dynamics of the Chinese market [19]

Royal Bank of Canada has hired long-serving Citigroup banker Rich Duffield to lead its equity-linked origination efforts https://t.co/tiCf2XNVCb ...

Group 1: BorgWarner - BorgWarner is a global leader in clean and efficient technology solutions for combustion, hybrid, and electric vehicles, with a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for BorgWarner's current year earnings has increased by 8.6% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 9.56, compared to the industry average of 15.30, and possesses a Value Score of A [2] Group 2: Ranger Energy Services - Ranger Energy Services is a provider of well service rigs and services primarily in the United States, also carrying a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Ranger Energy Services' current year earnings has increased by 42.5% over the last 60 days [2] - The company has a price-to-earnings ratio (P/E) of 11.02, compared to the industry average of 23.50, and possesses a Value Score of B [3] Group 3: First Financial Bank - First Financial Bank is a financial holding company engaged in commercial banking and other financial activities through seventeen wholly owned subsidiary institutions, with a Zacks Rank 1 [4] - The Zacks Consensus Estimate for First Financial Bank's current year earnings has increased by 6.1% over the last 60 days [4] - The company has a price-to-earnings ratio (P/E) of 9.32, compared to the industry average of 11.20, and possesses a Value Score of B [5]