News list for "BNP Paribas"
In a note to its analysts, BNP said it had taken a profit on a trade to short 10-year Treasuries after the Federal Reserve cut interest rates as scheduled. The bank took a position at 4.09 per cent and squaring a position at 4.15 per cent. Analysts said the Fed's unbalanced policy response mechanism would weigh on the interest rate market ahead of the next non-farm payrolls data. Despite the split in the Fed's decision, policymakers are highlighting weakness in the US labour market.
In its outlook for 2026, BNP pointed out that if the US Supreme Court rules that US President Donald Trump's use of emergency powers to impose sweeping tariffs is unconstitutional, the dollar could weaken immediately after the ruling. "This is because a key revenue will be negatively affected, which in turn raises questions about the sustainability of the US fiscal deficit." Analysts said this could lead investors to demand higher premiums to hold dollar assets. However, the report also pointed ...
A resumption of rate cuts at this week's pivotal meeting may be just the easiest part for the Federal Reserve to complete. James Egelhof, BNP Paribas, said that in addition to carefully setting monetary policy between sticky inflation and a weak labour market, Fed Chairperson Jerome Powell also needs to deal with "growing instability within the FOMC" and "try to cool down". Trump has been tough on...
Barclays and BNP Paribas expect the Federal Reserve to cut interest rates by 25 basis points in September, citing a shift in Federal Reserve Chairperson Jerome Powell's attitude towards rising risks in the job market at the Jackson Hole meeting. Barclays now expects two rate cuts of 25 basis points in September and December this year, saying Powell's speech introduced an "easing bias" that raised the bar for not cutting rates. BNP Paribas also changed its long-held view of the Federal Reserve st...
