A person retailers for fruit at a grocery retailer on February 01, 2023 in New York Metropolis.
Leonardo Munoz | Corbis Information | Getty Photographs
This report is from at present’s CNBC Day by day Open, our worldwide markets e-newsletter. CNBC Day by day Open brings traders on top of things on all the pieces they should know, irrespective of the place they’re. Like what you see? You may subscribe right here.
What that you must know at present
FTX to sell AI startup stake
Bankrupt crypto exchange FTX is selling its majority stake in AI startup Anthropic for $884 million, according to a court filing. The bulk of the stake is going to ATIC Third International Investment — a group aligned with a UAE sovereign wealth fund Mubadala. Other investors include Jane Street, venture fund HOF Capital, the Ford Foundation and funds managed by Fidelity.
Trump Media to start trading
The company behind former President Donald Trump’s social media platform Truth Social, will start trading on Tuesday. Called Trump Media & Technology Group Corp., it will trade on the NASDAQ under the stock ticker symbol DJT. Trump, the presumptive Republican presidential nominee, owns at least 58% of the company — that’s worth $3 billion or more at Monday’s share price.
U.S., Britain blame China-linked hackers
U.S. and Britain blamed China-linked hackers of “malicious” cyber campaigns and imposed sanctions. This could further escalate tensions with Beijing. A spokesperson for the Chinese embassy in the U.K. rejected the allegations. “We strongly oppose such accusations,” according to a response that was posted on the website.
[PRO] Forget Nvidia?
Investors should look beyond Nvidia since the chipmaker’s stock looks far too expensive. That’s according to David Dietze, managing principal and senior portfolio strategist at Peapack Private Wealth Management. Instead, the veteran wealth manager is betting on four stocks in growth sectors that look “reasonably valued.”
The bottom line
Inflation in the U.S. isn’t coming down fast enough as price pressures persistently linger.
This has confounded even Fed officials who are closely watching for signs of progress.
The central bank should take a cautious approach to cutting interest rates to allow more time for inflation to slow down, Fed Governor Lisa Cook said Monday.
“The path of disinflation, as expected, has been bumpy and uneven, but a careful approach to further policy adjustments can ensure that inflation will return sustainably to 2% while striving to maintain the strong labor market,” she said.
Torsten Slok, chief economist at Apollo Global Management, highlighted wage inflation as a problem, citing a gauge developed by the New York Fed.
“The New York Fed has constructed a new measure of trend wage inflation, which currently is running at 5%,” he said in a note.
“Wage inflation at 5% is not consistent with the Fed’s 2% inflation target,” he added. “The Fed will keep interest rates higher for longer.”
Some Fed officials don’t even expect three rate cuts this year as the central bank has forecast at the last meeting.
Atlanta Fed President Raphael Bostic, scaled back his rate-cut projection last week, citing persistent inflation as a concern.
In a post on X, Diane Swonk, Chief Economist at KPMG, stated Bostic “has made clear is he NOT satisfied inflation will fall quickly sufficient to chop quickly in 2024.”
“He has persistently pushed again towards a primary half reduce for a second half reduce, with extra progress and stated he at the moment favors one reduce in 2024,” versus two beforehand.
It stays to be seen whether or not the Fed will keep on with its script on price cuts or be compelled to vary course.