Business Maverick

June 20: Five Things You Need to Know to Start Your Day

By Bloomberg 20 June 2019
Caption
U.S. President Donald Trump, right, speaks as Jerome Powell, governor of the U.S. Federal Reserve and President Donald Trump's nominee as chairman of the Federal Reserve, listens during a nomination announcement in the Rose Garden of the White House in Washington, D.C., U.S., on Thursday, Nov. 2, 2017. If approved by the Senate, the 64-year-old former Carlyle Group LP managing director and ex-Treasury undersecretary would succeed Fed Chair Janet Yellen. Photographer: Olivier Douliery/Bloomberg

The U.S. Federal Reserve held its rate and scrapped its “patient” approach in a prelude to a possible cut. Asian equitiy futures may rise after U.S. stocks rallied for a third day. And an Australian hedge fund bags a 74% gain on millennials and iron. Here are some of the things people in markets are talking about today.

Holding Steady

U.S. Fed chief Jerome Powell is ready to lower rates, just not quite yet. The FOMC shrugged off President Trump’s demand for an immediate cut by leaving its benchmark unchanged while indicating a readiness to ease for the first time in more than a decade. Officials cited economic “uncertainties,” dropped their “patient” mantra and forecast a larger miss of their 2% inflation target this year. Powell said he intends to serve his full four-year term, despite Trump’s repeated criticism that he’s not doing enough to boost the economy.

Stocks Rally

Asian equity futures look set to continue the upward momentum as U.S. stocks rallied for a third day and yields on shorter-term maturity Treasuries tumbled on the Fed’s dovish tone. The dollar weakened against every major currency. Oil slipped as record U.S. gasoline consumption and a steep drop in crude inventories failed to ease concerns about tepid demand.

Australia’s Fix

Australia’s government said it’s committed to tackling structural flaws in its A$2.8 trillion ($1.9 trillion) pensions industry that have eroded retirement savings and cost people billions of dollars in unnecessary fees. The government will try again to stop young workers automatically being charged for life insurance through their pension plans, and will provide better options for drawing on savings, Senator Jane Hume will tell a Bloomberg conference Thursday.

Poker Playin’

Apple is playing poker with China, Wedbush said. Moving 15% of its iPhone production out of the country would be a “gargantuan endeavor,” laden with risks like supply-chain disruption and higher costs, the investment firm said. Nikkei reported earlier that Apple had asked key suppliers to calculate the cost of shifting 15% to 30% of their production to Southeast Asia.

Millennials and Iron

The shopping habits of millennials have helped fuel hefty gains at Australia’s Regal Funds’ Atlantic Absolute Return Fund, which shot up 74% through May, boosted by winning bets on buy-now, pay-later service Zip, and iron ore miner Fortescue. The out-sized gains stand in contrast to many global active money managers, who have adopted a cautious approach amid the escalating U.S.-China trade war and slowing economic growth. The Eurekahedge Hedge Fund Index gained 3.9% in the first five months of the year — half the advance of the MSCI World Index.

Gallery

In other news...

South Africa is in a very real battle. A political fight where terms such as truth and democracy can seem more of a suggestion as opposed to a necessity.

On one side of the battle are those openly willing to undermine the sovereignty of a democratic society, completely disregarding the weight and power of the oaths declared when they took office. If their mission was to decrease society’s trust in government - mission accomplished.

And on the other side are those who believe in the ethos of a country whose constitution was once declared the most progressive in the world. The hope that truth, justice and accountability in politics, business and society is not simply fairy tale dust sprinkled in great electoral speeches; but rather a cause that needs to be intentionally acted upon every day.

However, it would be an offensive oversight not to acknowledge that right there on the front lines, alongside whistleblowers and civil society, stand the journalists. Armed with only their determination to inform society and defend the truth, caught in the crossfire of shots fired from both sides.

If you believe in supporting the cause and the work of Daily Maverick then take your position on the battleground and sign up to Maverick Insider today.

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