EU Spending Could Lead to Higher Long-Term Bond Yields says PGIM
Germany are "leading from the front," says PGIM Chief European Economist Katharine Neiss, who sees potential for more European initiatives to boost fiscal spending. (Source: Bloomberg)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
31 minutes ago
- Yahoo
Trump Wants the Fed to Cut Interest Rates by a Full Point. That Normally Takes a Recession
President Donald Trump demanded the Federal Reserve lower its benchmark interest rate by an entire percentage point. The Fed, which operates independently of White House control, has resisted Trump's call to lower interest rates. Lower rates could boost the economy but risk igniting inflation. The Fed typically adjusts its interest rate a quarter point at a time: the last time it cut a full point was in March 2020 when the pandemic Donald Trump renewed his calls on the Federal Reserve to lower its benchmark interest rate Friday, and this time, he had a specific (and huge) ask in mind. In a series of social media posts Friday morning, Trump pointed to the economy's recent track record of solid job growth and cooling inflation, and taunted Federal Reserve Chair Jerome Powell for not having lowered interest rates sooner. Trump said the central bank should lower its influential fed funds rate by "a full point," saying it would be economic "Rocket Fuel!"The Fed adjusts its fed funds rate, which influences borrowing costs on all kinds of loans, to keep inflation down and employment high. Fed officials have kept their rate higher than usual so far this year in an effort to push inflation down to its goal of a 2% annual rate. Officials said they are waiting to see what happens in the economy because they are concerned Trump's tariffs could push up prices and set off a fresh round of Fed's cautious approach has angered Trump, who wants rate cuts and the economic growth they could promote. A full percentage point cut would be a major move by the Fed and would bring the fed funds rate to a range of 3.25% to 3.5%, its lowest since September 2022. The Fed typically moves rates a quarter-point at a time. The last time the Fed cut rates an entire percentage point was March 2020, when it was evident that the onset of the COVID-19 pandemic would thrash the economy. Before that, the Fed cut an entire point in December 2008, during the Great Recession. The posts were the latest moves in Trump's pressure campaign to influence the Fed's decision-making about monetary policy. The central bank is designed to be insulated from politics, and Powell has said the Fed's decisions will be based only on economic considerations. Trump has repeatedly criticized Powell for not lowering interest rates, in contrast to the Fed's European counterpart. The European Central Bank has cut rates eight times since last June. The Fed cut rates three times over that time period, including a jumbo half-point cut in September, but has kept rates flat. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
31 minutes ago
- Yahoo
Why Robinhood Markets Stock Blasted Nearly 35% Higher in May
It was a busy month for the next-generation online brokerage. It particularly focused its attention on the world of cryptocurrency. 10 stocks we like better than Robinhood Markets › Robinhood Markets (NASDAQ: HOOD) had a scorching 2025 in the first few months of the year, and it continued to barrel ahead in May. The online brokerage's shares saw their value rise almost 35% across the month, according to data provided by S&P Global Market Intelligence, on the back of a well-received earnings report published on the last day of April, plus new and intriguing forays into cryptocurrency and related offerings. While the key figures in that first-quarter earnings release were more or less in the ballpark of analyst expectations, there was no ignoring the hot growth rates posted by Robinhood. Net revenue muscled 50% higher year over year to land at $927 million, thanks to robust year-over-year increases in transaction revenue from facilitating trades in assets such as cryptocurrencies (up by 100% to $252 million), options (56% higher at $240 million), and stocks (44% improvement to $56 million). Speaking of doubling (and then some), Robinhood's net income for the quarter surged 114% higher to $336 million. On top of that, Robinhood announced it was substantially raising the total authorized amount of its current share repurchase program to $1.5 billion from the previous ceiling of $500 million. Management wasn't necessarily thinking hard about stocks in that relatively warm month; no doubt inspired by its clientele's embrace of cryptocurrency, it doubled down on its involvement with digital coins and tokens. In mid-May it announced a deal to buy Canadian company WonderFo Technologies, which owns a pair of regulated cryptocurrency platforms. The total equity value of the deal is roughly 250 million Canadian dollars ($183 million). In its press release touting the deal, Robinhood said that its own "accessible, low-cost, and secure platform will build upon WonderFi's mission and bring millions of Canadians greater access to crypto trading." During the month, Robinhood and crypto technology were connected in a Bloomberg article. The story stated that the brokerage plans to construct a blockchain-based trading system for European investors to transact in U.S. securities. Although details of the apparent plan were scant, it's likely to utilize a digital token-based regime that would allow for those investors abroad to trade U.S. titles quickly and relatively cheaply. Whether or not you're in line with the market's near-35% boost of Robinhood stock on these developments depends heavily on your feelings about cryptocurrency. If you're as bullish as Robinhood management on the future of this asset class, the company's shares are about the best play in the brokerage sphere right now. If not, it might be best for this recent wave of enthusiasm to subside. While I like the company as a business, I'd opt for being more cautious just now. Before you buy stock in Robinhood Markets, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Robinhood Markets wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Robinhood Markets Stock Blasted Nearly 35% Higher in May was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
35 minutes ago
- Yahoo
If Elon Musk's Wealth Was Evenly Distributed Across America, How Much Money Would Every Person Get?
We've seen the headlines that reveal how rich the world's top billionaires are — but it's hard to comprehend just how rich they are. Consider this: Let's say you had $1 billion in your bank account and had to spend $100,000 every day, for an entire year. After 365 days, you would still have $963,500,000 (nine hundred sixty-three million five hundred thousand). Discover More: Find Out: Over the last two decades, billionaires have ballooned their wealth to unparalleled levels. In 2005, Microsoft co-founder Bill Gates ranked as the world's richest person, with a net worth of $46.5 billion, as reported by CNN. Today, that title belongs to Tesla CEO Elon Musk, whose net worth stands at $368 billion as of June 5, according to the Bloomberg Billionaires Index. Even when adjusted for inflation, Gates' former net worth would be equivalent to roughly $76 billion in today's dollars. It is worth noting that other billionaires have also increased their wealth during the same time. For instance, tech billionaires Mark Zuckerberg and Jeff Bezos are worth $229 billion and $227 billion, ranking second and third globally. For many Americans, this trend is not sitting well. The sky-high cost of living has catalyzed support for redistributive tax policies, especially among younger voters and the progressive base of the Democratic Party. While higher taxation may or may not happen in the years to come, here's hypothetically how much you'd get if the world's richest man gives a check to every American. The United States Census Bureau estimates the current population to be around 341 million people, ranking only behind India and China. If Musk's enormous $368 billion were equally divided in the U.S., each person would receive $1,079 (rounded to the nearest dollar). A couple would receive $2,158, while a family of four would get $4,316. Despite the enormous wealth of billionaires, much of their fortune is tied up in stocks, real estate, and other holdings. Only a small percentage of their assets is held in cash. Based on data from Forbes, Musk has a 12% ownership stake in Tesla and to date, he remains the largest shareholder in the $1.15 trillion electric vehicle company. This is in addition to a 42% slice in SpaceX and a 54% interest in xAI, among many other businesses. Interestingly, Bloomberg reported that Musk's financial holdings appreciated by 77% after joining the campaign trail with President Donald Trump late last year, as reported by Bloomberg. Investors became bullish on Tesla and Musk became the first person to ever reach a net worth exceeding $400 billion. Since then, Tesla's market value has fluctuated as a result of volatile market conditions, macroeconomic factors and the threat of a global trade war. Editor's note: Data is accurate as of June 5 and is subject to change. More From GOBankingRates Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why This article originally appeared on If Elon Musk's Wealth Was Evenly Distributed Across America, How Much Money Would Every Person Get?
