Fed awaited, Oil prices rise
The highly anticipated announcement and press conference from the Federal Reserve’s FOMC meeting takes place this afternoon and the markets are nervous ahead of any indication of interest rate rises, although no change is expected until September at the earliest. It provides a welcome break from the concern over Greek debt and Wall Street is set for a higher start to trading Wednesday. Asian markets closed mostly higher ahead of the Fed although Tokyo closed with losses. Europe is also awaiting the Fed but also has eyes on its own central bank; the ECB announces its latest policy decisions which could include a new deal for Greece. The major indexes are subdued so far.
US stock futures are trending higher. Oil is trending higher (Brent $65.26, WTI $61.21 at 6.15am ET). Gold is trending lower.
MBA mortgage applications at 7am ET
EIA petroleum status report at 10.30am ET
FOMC meeting announcement and forecasts at 2pm ET followed by a press conference with Janet Yellen
ECB monetary policy meeting announcement
FedEx Corp., Oracle Corp. and Rediff.com are among the companies reporting earnings today.
Starbucks to close La Boulange chain
Starbucks says it is to close its 23 La Boulange stores as they are unsustainable for long-term growth. Although the branded range of pastries will live on in its coffee houses in US and Canada, the La Boulange plants in California will also close and its founder will leave the company. Starbucks is also closing its Evolution Fresh premium juice retail outlet in San Francisco.
Millionaires will control half of the world’s wealth by 2020
A new study by the Boston Consulting Group shows that millionaires will hold half of the world’s entire wealth by the end of this decade. Last year those with at least 7-figure net worth held 41 per cent of the world’s wealth. There were 17 million millionaires last year, up 2 million from 2013; China has 4 million while the US has the most at 7 million. Private wealth in Asia-Pacific grew five times faster than in North America last year according to the report.
Murdoch Jnr to take over at Fox in 2 weeks
James Murdoch will become CEO at 21st Century Fox on July 1. It’s been confirmed that his father Rupert will step down and become executive chairman. It’s likely that dad will still hold an active role and Chase Carey is expected to still hold an advisory role despite stepping down as COO.