Morgan Stanley Challenges Bill Dudley's View That Bond Yields Will Fluctuate Between 2% and 3%
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Morgan Stanley believes that US Treasury yields will rise to between 2% and 3%, contradicting Bill Dudley's view that bond market losses will deepen further. The UK's financial regulator is looking into bank rate and service access issues. French President Emmanuel Macron blamed social media for France's violence.
Morgan Stanley strategists have challenged the views of former US Federal Reserve official Bill Dudley, saying he overestimated the key drivers of 10-year Treasury yields. The bank believes yields will range between 2% to 3%, rather than the 4.5% predicted by Dudley. No Treasury trading will take place today due to the US holiday. According to Forbes, the UK's financial regulator has called in bank chief executives to address the issue of savings rates lagging behind the surge in mortgage costs. The government has ordered the regulator to review the way banks offer services to politicians, after Nigel Farage said he could not get service. According to sources, China's biggest state-owned bank is offering long-term and short-term rate relief loans to certain local government financing vehicles to prevent a $900 billion debt market credit crunch. They have begun offering 25-year loans to eligible local government financing vehicles with higher credit ratings instead of the current 10-year term.
The Australian central bank held its cash rate target at 4.1%, allowing for more time to assess economic conditions and outlooks, as well as related risks. However, the central bank indicated that further tightening of policy may be necessary. The Australian dollar weakened and bond futures rose.
S&P issued conflicting signals on oil prices, with its futures contracts predicting a fourth quarter price of $74 a barrel, while the consensus was higher at $85 a barrel. Who’s right? Futures are more accurate and stable in predicting future trends, and are simpler to compare against consensus. The consensus may contain forecasts from a few months ago and may not keep up with the latest information. The futures curve won't have this drawback.
French authorities maintain large-scale police deployments amid ongoing unrest. Emmanuel Macron will meet with mayors of around 220 towns that have been hit by violence today, while opposition parties on both ends of the political spectrum view the crisis as evidence of government failings. US Bank and Citigroup questioned the future income of the Federal Reserve System in a severe economic downturn, the latest sign of tensions around the central bank's annual stress tests. According to Forbes, US Bank delayed its dividend announcement as the test results are key factors in determining how much money banks can return to investors.
The UK government is in talks with insurers to invest billions of pounds in start-ups and infrastructure projects, which will form a key part of Jeremy Hunt's speech at Mansion House next week.
Andrea Felsted wrote that targeting the elderly in the domestic retail sector may be a wise move to cater to the UK's aging population. Across the retail sector, visits and purchases by the elderly may help to offset household cutbacks, as their spending power should be at its peak, but they are now facing soaring mortgage costs.
Videos of last week's violence in France were widely shared on social media, leading Macron to accuse TikTok, Snapchat and other apps of inciting violence. Many regular users have gained thousands of subscribers by streaming scenes of riots and robberies, while young