Traders work on the floor of the New York Stock Exchange (NYSE) in New York, September 26, 2022.
Brendan McDermid | Reuters
Here are the most important information investors need to start their trading day:
1. Stocks are trying to shake off, again
U.S. stock futures were heading for a higher open on Tuesday after another rout the day before. Stocks are on a five-day losing streak and the blue-chip Dow Jones Industrial Average is in a bear market, having fallen more than 20% from its all-time high. The Cboe Volatility Index, also known as the VIX or “fear gauge”, hit its highest level since mid-June on Monday, the last time markets were at a low this year. In the world of the Fed, where policymakers are eager to stifle price increases with rate hikes, Cleveland Fed President Loretta Mester said inflation was “unacceptably high.” Chicago Fed President Charles Evans, meanwhile, said he was a bit worried about the Fed’s speed and boldness, but noted he was “cautiously optimistic” about the ability of the United States to avoid a recession.
2. What’s happening in the UK?
British Prime Minister Liz Truss, who took office in September, announced a sweeping economic reform agenda.
David Dee Delgado | Reuters
It’s a mess, for one, and it just might get something worse. The government of new British Prime Minister Liz Truss has implemented a debt-financed “trickle down” economic program that includes historically massive tax cuts. The Bank of England, meanwhile, has been reluctant to raise rates to tackle soaring inflation, even though it plans to shrink its balance sheet. Lenders also enter into mortgage agreements. The economic plan, which became known on Friday, triggered a sharp market sell-off in the UK as the pound tumbled against the dollar. Analysts and pundits said there was no evidence the package would boost the economy. Some have warned of a potential crisis. Former US Treasury Secretary Larry Summers, who warned that inflation would rise during recent stimulus measures, was particularly harsh. “A currency crisis in a reserve currency could well have global consequences. I’m surprised we haven’t heard anything from the IMF,” he said.
3. Suspicious votes in Ukraine
Drone footage shows long lines of vehicles on their way to leave Russia at its border with Georgia, in Verkhny Lars, Russia, September 26, 2022, in this still image obtained from video.
The insider | via Reuters
Tuesday is the last day for voting in Russian-occupied areas of Ukraine, where people are said to be coerced and forced to vote to join Russia. Western officials and political analysts called the votes illegitimate as the Russian government aims to say it has further annexed its former Soviet neighbor. Elsewhere, Russian President Vladimir Putin’s push to call up 300,000 reservists is meeting resistance. Men are fleeing, protests have erupted and a man has been arrested for shooting at an office project. Read more updates on the war in Ukraine here.
4. Biden’s bid to spur competition
US President Joe Biden, seated between Secretary of Defense Lloyd Austin and Secretary of Health and Human Services (HHS) Xavier Becerra, delivers remarks during a meeting of the White House Competition Council in the State Dining Room of the White House in Washington, September 26, 2022.
Jonathan Ernest | Reuters
Hometown Deli, Paulsboro, NJ
Mike Calia | CNBC
“The pastrami must be amazing.” With these words in a letter to investors, hedge fund big boss David Einhorn kicked off a period of public fascination with New Jersey’s so-called $100 million deli and the publicly traded shell company that owned it. . The saga, which CNBC chronicled in the months after Einhorn’s letter, took its most sweeping twist yet on Monday. Federal prosecutors said they charged three men with a 2014 stock manipulation and fraud scam centered around the now-shuttered Your Hometown Deli in Paulsboro. The SEC also sued the men for the alleged scheme. After the indictments were announced, Einhorn intervened again. “I guess the pastrami wasn’t so good,” he tweeted. “I never really had the opportunity to try it.”
– CNBC’s Jesse Pound, Elliot Smith, Holly Ellyatt, Chelsey Cox and Dan Mangan contributed to this report.
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