BoJ raises interest rates, but the Fed is expected to hold off today

Ahead of the US Federal Reserve’s policy decision later today, the Bank of Japan raised interest rates to around 0.25% this morning, whilst also announcing a reduction to its bond buying programme. The Bank of England will announce their rate decision tomorrow and there, the markets are still undecided as to whether they will cut rates or wait another month. Microsoft’s results yesterday showed that its Azure cloud computing service saw a slowdown in quarterly growth, leading to a further fall in big tech stocks in extended trading. Head of Fixed Income Research, Dario Messi, explains why although the Fed has room to cuts rates today, it will probably wait until September’s meeting instead. And Mathieu Racheter, Head of Equity Strategy, explains his recent downgrade of the global communications sector, while also providing an update on the busy earnings season.

Please note that there will be no episode tomorrow due to Switzerland’s National Day.

00:00 Introduction by Lucija Caculovic (Investment Writing)

00:41 Markets wrap-up by Bernadette Anderko (Investment Writing)

08:22 Fixed income update by Dario Messi (Head of Fixed Income Research)

12:21 Communications downgrade and earnings season by Mathieu Racheter (Head of Equity Strategy)

15:41 Closing remarks by Lucija Caculovic (Investment Writing)

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