Get ready for the new week
(Bloomberg) — Hello from Los Angeles, where thousands of investors, bankers and officials are gathering for four days of presentations, parties and puppies. But first up, brace for more banking turmoil. Find out more with the Sunday Briefing.
The big sale: The clock is ticking for a resolution to be reached on First Republic Bank. The FDIC has asked banks including JPMorgan, PNG, US Bancorp and Bank of America to submit final bids for the troubled lender by today, after gauging interest earlier in the week, Bloomberg has reported. The bidding process is taking place after weeks of fruitless talks among banks and their advisers, and follows a precipitous drop in the company’s stock.
The big hike: The banking troubles likely won’t deter Fed policy makers from extending their year-long campaign of raising interest rates when they meet this week, with consensus converging on a 25-basis-point hike. But the path ahead is less clear, and markets will be watching for clues on how much more pain might be inflicted on the economy, with the harsh lessons of past policy errors weighing heavily on officials.
Chairman Jerome Powell, who has achieved a near-perfect consensus as the Fed raised rates, will also likely find agreement a lot tougher to maintain as the hiking campaign draws to a close. Other central banks — including the ECB and RBA — are also set to decide on borrowing costs in the week ahead.
The big stat: Employment data due two days later will also provide further clues on the trajectory for monetary policy. While payrolls growth is expected to be healthy, it would likely mark a third straight month of decelerating expansion.
The big market thought: Investors have had plenty to cheer this earnings season so far, yet the stock market is not reflecting the optimism. With investors now preparing to hear from US industrials, automakers and retailers for further clues on the health of the consumer, here are four key takeaways from the season so far.
The big earnings: Big Tech firms from Meta to Microsoft and Amazon have defied prognostications of doom and gloom to deliver solid results so far this season. But when Apple takes its turn Thursday, the iPhone maker will likely report its first aboard-the-board contraction in its products business in three years.
The big Bitcoin bounce: The largest crypto token is set to climb for a fourth month in a row, paving the way for the type of six-figure price projections that peppered the pandemic-era crypto boom. In recent days, Standard Chartered Bank, BCA Research and Bloomberg Intelligence have all flagged possible paths to at least $100,000 for Bitcoin.
ICYM our Big Take: Widening inequality in Latin America is prompting every major country in the region to shift to the left and driving the wealthy to send the most money abroad in over a decade. Ezra Fieser and Andrea Jaramillo investigate.
And finally, the annual Milken Institute Global Conference kicks off Monday, with 3,500 of the global financial elite gathering in glitzy Beverly Hills only to be confronted by the continued banking turmoil, rising property defaults and slowing growth. Not to worry though — the event will also offer yoga and Pilates sessions in a “wellness garden,” Puppy Playtime and a special performance by Diana Ross to help participants stressed by the troubled times.
Be well this week. See you on the other side.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.