United Kingdom

Trevor Hunnicutt

Fed policymakers leave little doubt: Rate hikes can wait

18 Jan 2019

SOMERSET, N.J./SAN FRANCISCO "Patience" is the new mantra at the Federal Reserve, less than two weeks ahead of the U.S. central bank's first policy meeting of the new year, as officials leave little doubt they want to stop raising interest rates - at least for a while.

LJM Partners sues unnamed 'manipulators' it blames for volatility losses

18 Jan 2019

NEW YORK LJM Partners Ltd on Friday filed a lawsuit against unnamed parties it holds responsible for hundreds of millions of dollars it lost after last year's jump in stock market volatility that effectively put the fund manager out of business.

UPDATE 1-Fed's Williams says rate policy must be patient, data dependent

18 Jan 2019

SOMERSET, N.J., Jan 18 The U.S. Federal Reserve must be patient and guided by data when considering whether to raise interest rates, New York Fed President John Williams said on Friday, in remarks reinforcing the central bank's commitment to a wait-and-see approach.

UPDATE 1-U.S. fund investors put most cash in 'junk' since late 2016 -Lipper

17 Jan 2019

(Adds quotes, details on investment flows, byline) By Trevor Hunnicutt NEW YORK, Jan 17 U.S. fund investors charged into high-yield "junk" bonds during the latest week, pouring in $3.3 billion, the most cash flowing into that market since late 2016, Lipper said on Thursday, boosted by soothing words by Federal Reserve Chairman Jerome Powell. Underscoring investors' appetite for some risk-taking, investors pulled $15 billion net cash from U.S.-based money market funds, according to the Refinitiv research service. For their part, U.S.-based equity mutual funds - which exclude exchange-traded funds - posted inflows of $4.8 billion, Lipper data showed. "From this week’s results, it appears that fund investors are encouraged by what they’ve seen and heard from the equity markets, the Fed and economic data, and are willing to take on more risk," said Pat Keon, senior research analyst at Lipper. Last week, Powell reiterated that the Fed plans to evaluate the health of the economy before moving ahead with any new interest rate increases. The $15 billion net outflow from money markets "indicates that investors are taking money off the sidelines and putting it back to work as well as the net inflows into below investment- grade debt funds - high-yield funds and high-yield muni funds," Keon said. "The outflows from Loan Participation funds are a long-term trend starting in the early part of Q3," Keon said. The peer group has been hurt by the Fed's slowing its pace of rate hikes, as bank loans are floating rates. "It’s possible the sector was overbought as well as prior to the downturn at the start of Q4, they had net inflows in 34 of the previous 35 weeks," Keon said. Energy sector stock funds recorded $1.3 billion in outflows in the same week, the largest withdrawals since October 2014, even as oil prices edged off the 1-1/2-year lows hit last month. The cash withdrawals for energy sector funds were concentrated mostly in two ETFs - SPDR S&P Oil & Gas, with $641 million of net cash outflows, and Energy Select Sector SPDR, with $576 million of net cash outflows, Keon noted. The following is a breakdown of the flows for the week, including mutual funds and ETFs: Sector Flow Chg % Assets Assets Count ($Bil) ($Bil) All Equity Funds -4.377 -0.07 6,777.863 12,161 Domestic Equities -5.910 -0.12 4,808.886 8,639 Non-Domestic 1.534 0.08 1,968.977 3,522 Equities All Taxable Bond 4.323 0.16 2,743.797 5,990 Funds All Money Market -15.046 -0.51 2,919.119 1,004 Funds All Municipal Bond 0.946 0.22 431.107 1,413 Funds (Reporting by Trevor Hunnicutt; Editing by Jennifer Ablan and Leslie Adler)

Market turmoil hits BlackRock's bottom line in fourth quarter

16 Jan 2019

NEW YORK BlackRock Inc , the world's largest fund manager, reported a smaller-than-expected quarterly profit on Wednesday due to financial market turmoil, but investors celebrated the company's strong sales of relatively low-fee funds.

Investors end 13 straight weeks of U.S. fund withdrawals

16 Jan 2019

NEW YORK Investors sweetened on financial markets in early January and ended a 13-week retreat from U.S.-based funds, the Investment Company Institute (ICI) said on Wednesday.

Government shutdown hikes uncertainty over rates, economy: Fed's Barkin

10 Jan 2019

RALEIGH, N.C. The ongoing partial shutdown of the U.S. government could increase uncertainty surrounding the state of the economy and the direction of interest rates, Richmond Federal Reserve President Thomas Barkin said on Thursday.

BlackRock to cut 3 percent of its workforce in coming weeks: memo

10 Jan 2019

BlackRock Inc , the largest fund manager in the world, plans to cut 500 jobs, or 3 percent of its workforce, in coming weeks, according to a memo reviewed by Reuters on Thursday.

U.S. stock, bond funds leak $30.4 billion in ominous start to 2019

09 Jan 2019

NEW YORK Investors demanded cash back from U.S.-based funds for a 13th straight week, showing increased concern over economic growth as stock and bond returns disappointed, Investment Company Institute (ICI) data showed on Wednesday.

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