Fed split over interest rate rise

Minutes from the latest Federal Reserve meeting show a split in policymaker sentiment, with members split over when to raise rates.

Whilst some policymakers agree more data is needed before any action is taken, others were keen to tighten policy within the next few months:

“Some members anticipated that economic conditions would soon warrant taking another step in removing policy accommodation,” the Fed said in the minutes.

Several Fed policymakers, however, said a slowdown in the future pace of hiring would argue against a near-term hike, and members of the FOMC said they wanted to “leave their policy options open.”

The release of the minutes saw the dollar strengthen , but negatively affected US stocks.

Co-op bank fearful over future

The Co-op bank has expressed concern over “economic uncertainty” in the wake of Brexit.

The bank narrowed its losses in the first six months of the year to £177 million, but the report was lacking in positivity going forward.

It warned that the decision to leave the EU would be “challenging” for the banking sector, and that it may also have an impact on mortgage loan growth.

Cisco to cut 5,500 jobs

Tech giant Cisco has announced plans to cut 7 percent of its global workforce, calling it a “decisive” move needed to reinvest in the business.

The job cut, which amounts to around 5,500 jobs, comes after its main business selling network switches and routers begun to run into trouble. Increasing competition has led to fourth quarter revenue from routers falling 6 percent.

The job cut will allow it to reinvest money into higher growth areas of the company, such as its firewall business and computer protection software.

Overall, Cisco reported a 21 percent increase on profit for the fourth quarter.

18/08/2016