By Davide Barbuscia NEW YORK (Reuters) – Spooked by a flurry of hotter-than-expected U.S. economic and inflation data last month, investors are reviving trading strategies that bet on a higher peak in interest rates. The recalibration in inflation expectations has led some investors to bet on a policy rate of 6% or even higher. Risk…
By John McCrank NEW YORK (Reuters) -The New York Stock Exchange teamed up with retail broker Charles Schwab Corp and market maker Citadel Securities on Monday to ask the U.S. Securities and Exchange Commission to withdraw two recently proposed rules aimed at revamping how stocks trade. The move represents a coordinated industry push back against…
By Niket Nishant (Reuters) – A U.S. consumer watchdog’s proposal to slash late fees on credit cards is facing a rough road ahead as lenders gear up for what could turn out to be a fierce battle with the agency, industry experts and analysts said. Last month, the Consumer Financial Protection Bureau said it was…
By Naomi Rovnick LONDON (Reuters) -Stock market investors are calling time on the idea that the Federal Reserve, and other major central banks, have their back. Hopes for interest rate cuts by year-end have evaporated, given resilient data and sticky inflation, suggesting central banks will instead be inclined to keep borrowing costs around their highest…
By Chibuike Oguh (Reuters) – Private equity firms that have for years capitalized on the regulatory woes of banks by becoming lenders to risky leveraged buyouts are doing less business just as higher interest rates have made that practice more lucrative. Buyout firms with direct lending businesses, such as Blue Owl Capital Inc, Blackstone Inc…
By Mehnaz Yasmin (Reuters) – The reward for holding U.S. stocks over Treasury bonds has not been this unattractive since 2004, possibly setting the stage for the sought-after 60/40 portfolio diversification to make a comeback after one of its worst years on record. A 60/40 portfolio, which typically has 60% of its holdings in stocks…
By Svea Herbst-Bayliss (Reuters) -Activist investor Elliott Management Corp has nominated a slate of directors to the board of cloud-based software provider Salesforce Inc, a source familiar with the matter said on Wednesday. The source declined to name Elliott’s director candidates or say how many there were. Elliott said it has been in substantive dialogue…
By Nell Mackenzie LONDON (Reuters) – Trend following hedge funds that outperformed rivals in 2022 will likely underperform this year, according to investors surveyed by BNP Paribas in a report published this week. The global survey of 185 investors in December and January also showed the investor community was undecided on putting money in hedge…
By Nate Raymond (Reuters) – In the first ruling written by President Joe Biden’s appointee Justice Ketanji Brown Jackson, the U.S. Supreme Court on Tuesday sided with 30 states that argued that Delaware had no right keep hundreds of millions of dollars in uncashed MoneyGram checks for itself. The ruling authored by Jackson, who was…
By Pete Schroeder WASHINGTON (Reuters) -U.S. banks reported a 5.8% decline in profits in 2022 as firms spent more on noninterest items and provision expenses against future losses, the Federal Deposit Insurance Corporation reported Tuesday. Bank profits dropped 4.6% in the last quarter of 2022, but overall profits remain above average profits seen by the…
