5 signs the world is headed for a recession

5 signs the world is headed for a recession

New York CNN Business — Around the world, markets are flashing warning signs that the global economy is teetering on a cliff’s edge. The question of a recession is no longer if, but when. Over the past week, the pulse of those flashing red lights quickened as markets grappled with the reality — once speculative, … Read more

Central Banks’ Higher Rates, Bond Sales Clash With Government Needs

Central Banks’ Higher Rates, Bond Sales Clash With Government Needs

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Britain’s Financial Disaster Is a Warning to the World

Britain’s Financial Disaster Is a Warning to the World

A toxic mix of politics, inflation and higher interest rates is threatening the financial system in the UK, sending a shock wave through global markets and providing a warning to governments everywhere of the dangers of the new economic era we are entering. A surprise tax cut by the new British government just over a … Read more

Opinion: Market instability replaces inflation as the biggest risk, raising the chances of a pivot by the Federal Reserve

Opinion: Market instability replaces inflation as the biggest risk, raising the chances of a pivot by the Federal Reserve

Market instability is the biggest risk to central banks globally, replacing inflation, owing to massive amounts of leverage. So far, the US Federal Reserve is fortunate because there’s low volatility in the stock market SPX, -2.11%, even though there’s a bear market. Market stability affords the Fed the space needed for the most aggressive rate-hiking … Read more

Pension Strategy Left Funds Vulnerable to Rate Increases

Pension Strategy Left Funds Vulnerable to Rate Increases

Sept. 29, 2022 12:33 p.m. ET Listen to articles (1 minute) A pension-fund strategy that aims to reduce volatility without lowering returns created the first crack in the financial system after one of the fastest jumps in interest rates in decades. The Bank of England stopped the selloff exacerbated by heavy selling from UK pension … Read more

UK Prime Minister Defends Tax Cuts as Market Turmoil Continues

UK Prime Minister Defends Tax Cuts as Market Turmoil Continues

LONDON—Prime Minister Liz Truss looked to reassure the British public and rattled investors that her plan to cut taxes wouldn’t lead to prolonged financial instability, arguing in a series of interviews on Thursday that the country had been buffeted by global shocks rather than her government’s reforms and that her policies would result in faster … Read more

US economy shrank in the first half of 2022, updated GDP figures confirm

US economy shrank in the first half of 2022, updated GDP figures confirm

The numbers: The US shrank in the first six months of the year, revised government figures confirm, and painted a picture of economy buffeted by strong headwinds and tailwinds. Gross domestic product, the official scorecard of the economy, fell at a 0.6% annual clip in the second quarter, the Bureau of Economic Analysis said Thursday. … Read more

Global Bonds Rally After 10-Year Treasury Yield Touches 4%

Global Bonds Rally After 10-Year Treasury Yield Touches 4%

Listen to articles (2 minutes) A wild run for global government bonds took an unexpected turn on Wednesday after the Bank of England stepped in to stop a route in the UK gilts market, spurring a furious rally on both sides of the Atlantic. The sharp move added to a stretch of highly volatile trading … Read more

Stocks rally as some relief returns to global bond markets | StockMarket

Stocks rally as some relief returns to global bond markets |  StockMarket

NEW YORK (AP) — Some calm flowed back into markets worldwide Wednesday, and stocks on Wall Street rallied toward their first gain in more than a week after the Bank of England moved forcefully to get a budding financial crisis there under control. The S&P 500 was 2.1% higher in late trading, on pace to … Read more

UK bond yields plunge after Bank of England steps in to buy at ‘whatever scale is necessary’

UK bond yields plunge after Bank of England steps in to buy at ‘whatever scale is necessary’

UK gilt yields fell back from their highest in 14 years after the Bank of England said it would buy bonds at “whatever scale is necessary” to restore orderly market conditions. The 10-year benchmark gilt yield TMBMKGB-10Y, 4,005%, which moves in the opposite direction to prices, fell 49 basis points to 4.03%, having at one … Read more