11-14 minutes - Source: NYT
What the Fed can’t doThe Fed surprised the markets with a chunky half-percentage-point cut yesterday morning, two weeks before its regularly scheduled policy meeting.
The stock market rally lasted about 15 minutes. Bullishness about monetary stimulus quickly gave way to fears that the drastic action implied that the Fed thinks the
Bonds set new records, with the 10-year Treasury yield dropping below 1 percent for the first time. It’s not a good sign for investors’ worries about the state of the economy.
Always when markets are in trouble, the phrases are the same. “The economic situation is fundamentally sound” or simply “The fundamentals are good.” All who hear these words should know that something is wrong.What could go wrong? Market watchers aren’t predicting anything as bad as the Great Depression, but there are scenarios in which the supply shock of the
The Fed is doing what it can, but “a rate cut will not reduce the rate of infection — it won’t fix a broken supply chain,” Mr. Powell warned. Here are other things the central bank can’t do:
Today’s DealBook Briefing was written by Andrew Ross Sorkin in New York and Michael J.
It’s Biden versus Sanders nowJoe Biden racked up a number of victories on Super Tuesday, re-emerging as a front-runner for the Democratic presidential primary. But Bernie Sanders won California, effectively narrowing the race to the two men.
Mr. Biden picked up nine states, including Texas, while Mr. Sanders won four, including the night’s biggest prize, California. Calculations for how many delegates each candidate won won’t be known for some time — California alone will take weeks to sort out — but the two men have amassed formidable numbers so far.
A bad night for billionaire Mike Bloomberg may force him to drop out, perhaps as soon as today, Politico’s Sally Godenberg and Christopher Cadelago report. A spokeswoman for his campaign said no plans had been made to do so.
Senator Elizabeth Warren remains in the race, despite several third-place
SoftBank tells Wall Street it’s still in the gameThe Japanese tech conglomerate’s chief, Masa Son, told investors in New York yesterday that his company was still ready to invest, despite taking it on the chin from troubles at investments like
SoftBank will move ahead with a second Vision Fund, Mr. Son told attendees of the meeting, Bloomberg reports, noting that the scaled-down fund has yet to nail down big capital commitments from outside investors.
The meeting was meant to help SoftBank demonstrate its resilience.
Robinhood shoots itself in the footThe $7.6 billion stock-trading
Robinhood suffered perhaps the worst outages of any major stock-trading platform, its app going down for long stretches on Monday, when there
Irate customers said they planned to withdraw their money — as soon as they were able to.
A breakthrough year for women in the boardroomOur friends at the In Her Words newsletter wrote about how regulation and public pressure have pushed public companies to diversify their boards. Moves by financial firms have promoted more gender diversity
• Thermo Fisher Scientific agreed to buy Qiagen, a genetic testing company, for $11.5 billion.
• The investment firm Exor agreed to sell its
• Brookfield Property Partners
Politics and policy
• The Supreme Court appears poised to weaken the Consumer Financial Protection Bureau, based on oral arguments in a case yesterday.
• Heavyweights in quantum computing include Google, IBM and
• A crucial part of the U.S. Space Force’s mission will be advancing the America’s 5G wireless capabilities.
• What happens to your emails after you die?
Best of the rest
• JPMorgan Chase has reportedly suspended at least three traders while it conducts an inquiry into potential breaches of its policy on using chat platforms.
• From our friend Bill Cohan: “My Last Lunch With Jack Welch.” (NYT Opinion)
Some of you may have received two copies of yesterday’s newsletter because of a technical error. We hope you read them both — it was a good one.
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- Joe Biden dominated the South and scored upsets in Massachusetts and Minnesota, while Bernie Sanders was poised to win California. Follow live.
- Learn more about the Democratic presidential contenders.