What has Joe Biden achieved?

The Federal Reserve cut interest rates by a quarter of a percentage point to 4.25-4.5%, signaling a slower pace of easing in 2025, which led to a strong dollar and a sell-off in US and international stocks. Fed officials projected fewer rate cuts next year due to concerns about lingering inflation, with Wall Street stocks falling sharply after the decision. Fed chair Jay Powell noted that inflation was stable and risks to the labor market...

New Zealand's economy plunged into recession in the third quarter, with GDP dropping 1.0% from the prior quarter, leading to increased expectations of more aggressive rate cuts by the Reserve Bank of New Zealand. The sharp decline in economic activity, particularly in manufacturing, utilities, and construction, was exacerbated by high inflation and reduced spending. Despite hopes for a recovery, analysts are cautiously optimistic as the central bank continues to lower borrowing costs, with signs of...

OpenAI has facilitated a private stock sale with SoftBank Group, offering current and former employees the opportunity to sell their stock at $210 per share. SoftBank plans to purchase up to $1.6 billion in stock at the new $157 billion valuation, allowing current employees to sell up to $10 million worth of shares, giving preference to them over former staff if oversubscribed. The deadline for shareholders to decide on selling their shares is December 24....

Pensions have been a major focus in 2024 with changes like the triple lock, inheritance tax on pensions, and the Winter Fuel Payment. In 2025, state pensions will increase, the deadline to top up state pensions approaches, pensions dashboards will provide better access, and more information on inheritance tax on pensions is expected. The FCA is proposing more support for pension decisions, faster pension transfers, and increased awareness of pension scams. Full Article

Roula Khalaf, Editor of the FT, selects her favorite stories in this weekly newsletter, discussing the surprises and challenges of the past 25 years, including the rise of populism in various economies despite economic growth. The lack of a faithful correlation between economic circumstances and political choices, as well as the impact of immigration and hedonic adjustment on voter behavior, challenges the notion that politics is downstream of economics. The breakdown of the causal link...

UniCredit has increased its potential stake in Commerzbank to 28% through derivatives, signaling a possible buyout of the German lender. The Italian bank's move is seen as a strategic investment to unlock value within Commerzbank, amid CEO Andrea Orcel's pursuit of a bid for Banco BPM in Italy. UniCredit's interest in Commerzbank comes as the German government faces political turmoil and uncertainty, with the potential merger offering synergies in various financial activities. Full Article