The Bank of England on February 6, 2025, in London, England.
Richard Baker | In pictures | Getty images
On Thursday, the Bank of England reduced interest rates by 25 base points, following the drop in the European Central Bank of the same amount on January 30. The India reserve bank is also largely supposed to reduce its replenishment rate by 25 base points when its Reunion policy ends on Friday.
Many savings seem to settle in a low rate environment, while decision -makers seek to stimulate economic growth. This contrasts strongly with the United States – it is not clear if the American federal reserve would even make its two rate drops in 2025, scheduled for December, taking into account the uncertainties on the economic impact of the policies of the American president Donald Trump .
Before the inauguration of Trump, the US dollar began to strengthen and reached its highest level in more than two years, as measured by the US dollar index. This has already affected companies such as Amazon, who blamed the currency to weigh down his expected income during the current quarter.
American exceptionalism could still be in place for the moment, but an advantage can, after all, cut in both directions.
What you need to know today
Amazon disappointing advice
Amazon Actions have dropped by more than 4% after giving disappointing income advice for the current quarter, citing difficulties posed by a strong US dollar. Based on the company’s forecasts, the growth rate of the quarter would be between 5% and 9%, the slowest increase from Amazon became public in 1997. To exceed Walmart as S&P 500 Company with highest quarterly income. Walmart reports on February 20.
Positive day for markets
Thursday, the S&P 500 advanced by 0.36% for his third day of consecutive victory, while the Nasdaq Composite climbed by 0.51%. THE Industrial average Dow JonesHowever, lost 0.28%. Through the Atlantic, European markets were in a jubilant mood. The pan -European Stoxx 600 index increased by 1.17%, ending a record. UK FTSE 100 won 1.21%, also reaching a new record.
The Bank of England reduces rates
The Bank of England reduced its reference interest rate from 25 basis points to 4.5%, its first drop of the year. All members of the monetary policy committee voted to reduce rates, but two out of nine had voted for a greater drop of 50 base points. The Governor of the Central Bank Andrew Bailey said he is expecting more cuts this year. The BOE has also halved its growth forecasts for the British economy in 2025 to 0.75% against 1.5%.
China will respond to “intimidation”
The prices imposed on China by the United States Donald Trump have triggered a counter coupling by the second world economy. China will protect its interests “in the face of acts of unilateral intimidation,” the spokesman for the Chinese Ministry of Commerce said on Thursday, which Yongqian said on a translation of the CNBC on Thursday. However, he added that China would not cause disputes and remained ready to solve problems through discussions.
[PRO] IBM surpasses nvidia
Not Nvidianot Apple and not Amazon – the most efficient stock of the DOW in the last three months has been IBMwhich climbed 27%. However, the technological company must do more in the field of artificial intelligence so that its actions continue to perform well, according to an investment director.
And finally …
People buy clothes in a Calvin Klein store in a shopping center in Beijing on February 5, 2025.
Adek Berry | AFP | Getty images
How Calvin Klein and Tommy Hilfiger were taken in the Trump trade war with China
China has put the owner of Calvin Klein and Tommy Hilfiger, which could force the company to close the stores and manufacture in the country, in an early repercussion of Trump’s trade in the country. While the Chinese trade ministry has started investigating Pvh September for pretending to refuse to get cotton from the Xinjiang region, which has become notorious for its Uighur detention camps, Beijing officially placed the company on its list of “unreliable entities” on Tuesday.
