News 

Egypt’s annual core inflation falls to 2.1%, while urban headline inflation rises to 3.6% in November

“It added that the headline annual inflation rate increased slightly in November to 2.7% compared to 2.4% in October” writes Hossam Mounir for dailynewssegypt.com. The note forecasts annual headline inflation of 7.3% in December.November headline inflation inches up on base effect, slightly below our expectation of 4%, Beltone Financial said in a research note.She explained that the annual rate of inflation during November recorded 3.6% annually, which is slightly lower than expectations, which was 3.9%.Meanwhile, the Central Agency for Public Mobilization and Statistics (CAPMAS) said that the urban annual consumer…

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News 

Pound slips on UK poll projections, dollar eyes Fed meeting

“It is almost unanimously expected to leave interest rates unchanged on Wednesday” reports cnbc.com. Economic uncertainty stemming from the U.S.-China trade war has prompted the U.S. Federal Reserve to cut interest rates three times this year.It also slipped to 0.8455 pound per euro, off its 2 1/2-year high of 0.8394 touched earlier this week.The dollar was traded at 108.80 yen, flat in early Asia after a gain of 0.15% the previous day. Source: cnbc.com

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News Regulators 

Americans keep gorging on debt, thanks to the Federal Reserve

“The Federal Reserve raised official interest rates four times 2018, and investors were expecting more of the same this year” writes Brian Frank for marketwatch.com. So why did a mid-2% interest rate prompt such distress in the U.S. economy?. Given these burdensome piles of debt, even a slight increase in interest rates creates millions more in interest payments for consumers and corporations.With the Fed lowering rates, consumers took this as a cue to gorge more by borrowing as opposed to paying down loans.Consumers are increasingly financing their cars, and rising…

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News 

Switzerland’s FINMA warns of risks stemming from transitioning away from LIBOR

“FINMA has identified three specific risks in connection with the replacement of LIBOR interest rates: legal risk, valuation risk and risks in connection with operational readiness” reports financefeeds.com. Inadequate preparation for the replacement of LIBOR interest rates (envisaged by the end of 2021), including Swiss franc LIBOR, hence represents a key risk.Among the main risks, according to the regulator, are those related to the discontinuation of LIBOR. LIBOR benchmark interest rates continue to be widely used in financial instruments, FINMA notes. Source: financefeeds.com

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News Regulators 

Fed is likely to reinforce a message of continued low rates

“Powell maintains that the purchases are intended to improve the functioning of the financial system, and not to lower rates” writes The Associated Press for seattletimes.com. WASHINGTON (AP) — The Federal Reserve is expected to send a clear message when its latest policy meeting ends Wednesday: Interest rates will likely stay ultra-low for the foreseeable future.This view has freed the Fed’s policymakers to keep their benchmark short-term interest rate low. Source: seattletimes.com

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News Regulators 

When Volcker ruled the Fed, ‘people thought they’d never buy a home again’

“What Volcker did was raise the fed funds rate to levels people never thought they would see” writes Patti Domm for cnbc.com. Volcker allowed the fed funds rate, now topped out at 1.75%, to rise over 20%, and with it went the interest on home mortgages and everything else.There were farmers and business executives out in front of the Fed picketing and complaining about interest rates,” Rupkey said. Source: cnbc.com

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Markets News Stocks 

Here’s the hard-money call for why the boom in the economy and stock market will continue

“As per the charts below, current market interest rates in the U.S. have not reached rock bottom yet” writes European Markets Editor for marketwatch.com. You might think the hard-money, recession-at-every-corner crowd would be predicting an imminent reversal in the stock market given the 20% gain for the Dow Jones Industrial Average this year.The stock price for Tullow Oil TLW, -64.85%  dived by nearly 60% after the British oil and gas company cut its production outlook, which caused its chief executive to resign.The Fed is expected to leave interest rates unchanged…

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Futures News Stocks 

No News Is Bad News As Dow Set for Lower Start

“U.S. stock futures drifted lower on Monday over nervousness ahead of the effective Dec. 15 deadline for a U.S.-China trade deal” writes Steve Goldstein for nasdaq.com. After the 337-point surge in the Dow Jones Industrial Average on Friday on the banner jobs report, futures suggested a slightly weaker start.The British pound edged higher ahead of the Dec. 12 election, in which financial markets anticipate the Conservatives to win a majority. Source: nasdaq.com

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News Regulators 

As Fed reiterates rate pause, forecasts likely to be blown off course

“Fed policymakers’ forecasts for future U.S. economic growth this time around will be in sharp focus” writes Midwest Communications Inc for 95kqds.com. Last December, the Fed projected two interest rate hikes for 2019, seeing an economy only in danger of overheating.So far the interest rate cuts seem to be working.In September, policymakers’ projections for 2020 growth ranged from 1.8% to 2.1%, consistent with what the Fed sees as the economy’s potential growth rate.The Fed, however, has a spotty history with its year-ahead interest rate projections, having hit its median forecast…

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