Reforms to Fannie Mae, Freddie Mac could shock sector: Fed’s Rosengren

A Federal Reserve official warned U.S. lawmakers on Tuesday that any reforms that reduce the massive lending presence of mortgage giants Fannie Mae and Freddie Mac in the multi-family real estate market could shock that sector of the economy. Members of Congress and the Trump administration have signaled they will overhaul the two government-sponsored enterprises (GSEs), which the government took over during the 2008 financial crisis, after they suffered massive losses on bad mortgages…

U.S. economy’s rosy outlook could change if Trump’s tax reform promises fail: IMF

The U.S. economy is poised to gain steam this year, but that rosy forecast could change if President Trump’s promises of tax reform fail to materialize. Ahead of a meeting of world finance chiefs in Washington this week, the International Monetary Fund released on Tuesday its flagship report on the world economy, forecasting the U.S. economy would grow at 2.3% this year and 2.5% in 2018 — a faster pace than last year’s 1.6%…

Stocks rebound, dollar steady ahead of Fed officials speech

Stocks recovered while the dollar hovered above four-month lows on Tuesday as anxiety over Donald Trump’s setback on healthcare reform gave way to tentative hopes for the U.S. president’s planned stimulus policies. Hopes that the Trump administration will now prioritize tax reforms coupled with still-robust economic data and corporate earnings forecasts spurred some investors to look past creeping doubts about Trump’s ability to deliver on campaign promises…

U.S. stocks slip as investors brace for Trump’s address to Congress

Wall Street could be in for a rude awakening if President Donald Trump’s pro-business agenda fails to pass muster. The buoyant market reflects investors’ anticipation for the reforms outlined by Donald Trump on the campaign trail, but Congress will need to turn those promises to cut corporate taxes and slash regulations into actual legislation…

Wall Street hits record intraday highs on strong earnings from top retailers

U.S. stocks hit record intraday highs on Tuesday amid gains across sectors as strong earnings from top retailers underscored the strength of the U.S. economy. One in every six stocks on the S&P 500 hit a new 52-week high as a rally sparked by President Donald Trump’s promise of tax reforms shows no sign of fading despite concerns around valuations…

Greece says bailout review would end well while Juncker says deal ‘on shaky ground’

Greek Prime Minister Alexis Tsipras warned international lenders on Saturday not to heap new burdens on his country but said he believed the drawn-out bailout review with them would end well. European Commission President Jean-Claude Juncker, however, said the deal was “on shaky ground” because the International Monetary Fund had not decided what role it would play…

S&P 500 hits $20 trillion as Wall Street bet on Trump’s tax reform plans

The main U.S. stock indexes hit record intraday highs on Monday, with the S&P 500 topping $20 trillion in combined market-capitalization for the first time ever, as the “Trump trade” jump-started on renewed optimism about the economy. President Donald Trump vowed last week to make a major tax announcement in the next few weeks, rekindling a rally that has stalled amid concerns over Trump’s protectionist stance and lack of clarity on policy reforms…

EU, IMF agree to present united front to Greece

Euro zone lenders and the International Monetary Fund have reached agreed between themselves to present a common stance to Greece later on Friday in talks on reforms and the fiscal path Athens must take, euro zone officials said. Such a united stance would be a breakthrough because the two groups have differed for months on the size of the primary surplus Greece should reach in 2018 and maintain for years later as well as the issue of debt relief…

Europe stands at a crossroads in 2017

Europe stands at a crossroads in 2017. For nearly 70 years, it has known only one direction: ever stronger integration involving a steadily rising number of countries. Now a big economy and political heavyweight has turned its back and is leaving the European Union. Brexit will be seen as a turning point in history. For the time being it is very uncertain how relations between the U.K. and the EU of 27 countries will develop…

China to lower its economic growth target to 6.5% this year

China will lower its 2017 economic growth target to around 6.5 percent from last year’s 6.5-7 percent, policy sources said, reinforcing a policy shift from supporting growth to pushing reforms to contain debt and housing risks. The proposed target was endorsed by top leaders at the closed-door Central Economic Work Conference in mid-December, according to four sources with knowledge of the meeting outcome…

Japan’s PM Abe to meet Trump a week after officially becoming U.S. president on Jan. 20

Japanese Prime Minister Shinzo Abe is arranging to meet Donald Trump about a week after he takes over as U.S. president on Jan. 20, Jiji news service reported on Tuesday. Abe met Trump in New York last month, soon after his election victory, and Jiji said Abe would meet him around Jan. 27. Trump’s inauguration is due on Jan. 20…

Italy’s referendum: Will it deliver the next shock to the political establishment?

First there was Brexit, then Donald Trump. Will Italy deliver the next shock to the political establishment? Italians will vote Sunday in a crucial referendum that could — in one nightmare scenario — force the prime minister’s resignation, spark a banking crisis and ultimately push Italy out of the eurozone. Such a scenario would require a line of political dominoes to fall in just the right way…

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