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Daily Scan: Fed commentary shocks markets, stocks fall

By NexChange
Capital Markets


Updated throughout the day

November 12

Stocks had a terrible, horrible, no good, very bad day after all the Fed comments sent mixed messages. The Dow lost 1.4%, the Nasdaq fell 1.2%, and the S&P 500 dropped 1.4%. The Stoxx Europe 600 lost 1.6% as well. Federal Reserve Chair Janet Yellen spoke Thursday morning about monetary policy in general, but didn't comment on the outlook for the U.S. economy. New York Fed President William Dudley and St. Louis Fed President James Bullard both seem to be leaning toward a rate hike. Bullard called the near-zero interest rate policy a "considerable risk of future inflation" for the U.S. economy. Chicago Fed President Charles Evans was a bit more hesitant, saying it could be "well into" next year before the inflation goal is reached. The Wall Street Journal found that 92% of economists think the Fed will vote to raise rates in December.

Here’s what else you need to know:

Goldman Sachs promotes 425 people to managing director. Almost 30% of the new managing directors are millennials. About 40% of those were hired at Goldman as entry level analysts, and 20% began as summer interns. Loyalty counts somewhere! Business Insider

Amundi shares rise after debut. The massive French asset manager's stocks were up about 4% on the Euronext stock exchange in Paris. Societe Generale, one of the banks behind the manager, sold a 20% stake and raised about $1.6 billion. The offering was priced at 45 euros a share Wednesday. New York Times

Robots could steal 80 million U.S. jobs. Andy Haldane, Bank of England chief economist, says that 15 million U.K. jobs and 80 million U.S. jobs are at risk from automation. “The smarter machines become, the greater the likelihood that the space remaining for uniquely-human skills could shrink further,” says Haldane. MarketWatch

Deutsche Bank keeps moving executives. The top officials of the investment bank are shifting, with Goldman Sach's Alasdair Warren appointed as head of corporate and investment banking for EMEA. John Eydenberg will be vice chairman of CIB for the Americas, and Marc Pandraud will be vice chairman of CIB for EMEA, new roles for the firm. Wall Street Journal (paywall)

IMF tells U.S. Fed to wait for inflation numbers. The IMF paper released Thursday says that the Fed should look for firm signs of rising inflation, as well as a stronger labor market before raising interest rates. The report came out in anticipation of of the G20 meeting in Turkey. Reuters

Apple in talks with banks to develop P2P mobile system. Move over Venmo and Square. Apple is in talks with major banks including JPMorgan and Wells Fargo to enable iPhone users to pay their buddies through Apple Pay. Wall Street Journal (paywall)

Morgan Stanley to offer savings accounts, certificates of deposits. It's not as exciting as deal-making, but the investment bank hopes the broader suite of consumer offerings will lure customers to its wealth management division. Competition is intense in the sector. Reuters

Angie's List in unwanted bid. IAC/InterActive has offered $512 million for the Internet site, which provides online reviews of home-related services. It hasn't turned a profit since going public four years ago. IAC owns and Vimeo. New York times (paywall)

The feds move to ban smoking in public housing. An announcement should come Thursday from the Department of Housing and Urban Development. The move would affect more than one million people -- who are likely to wonder whether the government can really tell them what to do in their homes. New York Times (paywall)

Draghi offers more bouquets. The ECB president said in speech: “If we were to conclude that our medium-term price stability objective is at risk, we would act.” Mario Draghi took to the in Brussels to reiterate his “anything it takes” approach. European Central Bank

U.S. arrests cousins of Venezuela president in drug bust. The pair were charged with trying to transport 800 kilograms of cocaine into the country. The U.S. has long suspected that high-ranked government officials are involved in dealing drugs.Wall Street Journal (paywall)

You wont believe this…

Fuhgeddaboudit. Vincent Asaro, the alleged mob leader, was found not guilty in connection to the 1978 Lufthansa heist made famous in the movie "Goodfellas." The 80-year-old's cousin Gaspare Valenti provided incriminating testimony against Asaro that sounded as good as the movie was. CNN

Next on the Dollar Menu: mozzarella sticks. McDonald's New York locations are experimenting with a new menu item. Next year, for just $1, patrons can buy three deep fried sticks of cheese. BuzzFeed


Photo: Peyri Herrera

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