Posted August 17, 2018 08:13:37 Businesses are getting a little more serious this week, with a handful of firms announcing big announcements on the heels of a number of announcements this week.
Here are the highlights:The Bank of England announced the Bank of Japan’s monetary policy, saying it will cut its benchmark rate to zero and move interest rates to zero by mid-August.
The move comes as investors are getting nervous about a possible slowdown in China’s economic growth, and the bank’s latest data suggests that the country’s economic slowdown is far from over.
“The central bank has been clear that it wants to maintain the pace of monetary easing in Japan,” the Bank’s Governor, Mark Carney, said in a statement.
“The decision is intended to help keep the momentum of global economic growth in check as we head into the first quarter of 2018.”
The European Central Bank also said it will keep its key lending rate at 0.75% from this summer, and that it will gradually ease monetary policy over the coming months.
“This will mean that the central bank will have to gradually lower its asset purchases, which will in turn require the use of additional monetary policy to boost demand,” the ECB said in an updated statement.
The Bank said it would hold its benchmark interest rate at zero for the next two years, which it says will reduce risk and make the economy more stable.
“This will ensure that the economy remains resilient, growth will be sustained and the risks to financial stability remain manageable,” the bank said.
The Fed said it is expected to hold its key rate at a rate of 1.25% for the rest of the year.
“In addition, the Committee will continue to consider how to respond to market conditions and potential shocks to the economy, such as further tightening of credit conditions, higher interest rates, asset price bubbles, or a global recession,” the Fed said in its monthly policy statement.
A number of banks are also making major announcements on Tuesday.
Bank of America announced a $20 billion buyback program to buy back the company’s shares, and JPMorgan Chase announced a purchase program for $5 billion in cash to be used to buy bonds from private equity firms.
The banks’ share prices jumped nearly 1% after news of the buybacks broke.
The investment industry has been shaken by the announcement that China is slowing down, as investors worry that China’s economy is heading into a recession, and a number are wondering if the Fed will do something about it.
Investors are also wondering if they will be able to get into the stock market this year.
“Investors have been trying to get in on the action, but this year has been tough for them,” said Jim Cramer, host of CNBC’s Mad Money.
“It’s a year of uncertainty.”
This is the fourth week in a row that the S&P 500 has fallen.