Five Things You Need to Know to Start Your Day: Europe
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Good morning. Finally we get to see what the Fed decides. Investors also await UK inflation data. Oil declines despite Middle East tensions. BlackRock and Microsoft are teaming up for AI investments. Here’s what people are talking about.
The Federal Reserve is set to lower interest rates on Wednesday, but by how much remains an open question. Forecasters largely anticipate a quarter-point cut, though economists at JPMorgan expect a bigger, half-point move. Traders remain almost evenly split, shading slightly toward a bigger reduction. Bridgewater Associates founder Ray Dalio said the overall picture of the US economy probably warrants a smaller shift, while DoubleLine Capital’s Jeffrey Gundlach joined the growing ranks of those wagering the Fed will kick off its rate-cutting cycle by going large. As the debate goes on, traders who are locked into record wagers tied to the Fed’s expected easing Wednesday are risking sharp losses if officials opt for a standard-sized cut.