Traders work on the floor of the New York Stock Exchange (NYSE) in New York, October 14, 2022.
Brendan McDermid | Reuters
Here are the most important news investors need to start their trading day:
1. Volatility and earnings
Economic data increased market volatility last week. Inflation remains hot, so it does not appear that the Federal Reserve will ease up on its aggressive efforts to cool the economy. This week the reporting season is gaining momentum. Investors will see how companies cope with high costs and care about consumer prices, as well as monitor how a strong dollar weighs on foreign business. You can follow live broadcasts of the markets here. Meanwhile, Bank of America reported on Monday (more on that below). Here are some of the other big names due to report this week:
2. Let’s try again, okay?
Jeremy Hunt is interviewed for Sophie Raworth’s Sunday Morning at the BBC Broadcasting House in London.
Tejas Sandhu | Light rocket | Getty Images
Britain has a new Chancellor of the Exchequer, Jeremy Hunt, and he unveiled a new economic plan on Monday. Hunt will replace Kwasi Kwarteng, who was sacked just weeks after his tax-cutting economic plan sent British bonds and the pound sterling soaring. Hunt on Monday said the new plan would remove almost all of the tax cuts proposed in Kwarteng’s budget. Prime Minister Liz Truss’s government, which has been in office for just over a month, is already on thin ice due to market turmoil, but it is likely that she will remain in power for now. UK Conservative Party rules state that new leadership elections cannot be held during the year.
3. Bank of America hits
Brian Moynihan, CEO of Bank of America, speaks at the WEF in Davos, Switzerland on May 23, 2022.
Adam Galica | CNBC
Bank of America on Monday earnings and earnings were released that beat Wall Street’s expectations. The bank cited higher-than-expected fixed-income and interest income, which were underpinned by rising interest rates and market volatility. The results of Bank of America followed the first wave of profits of large banks last week. JPMorgan and Wells Fargo beat forecasts on strong interest income. Citigroup also outperformed estimates, but Morgan Stanley fell short on disappointing investment management results. Goldman Sachs will report on Tuesday.
4. Drones are hammering Kyiv
A soldier sits on the ground after Russian attacks in Kyiv, Ukraine on October 17, 2022. At least four explosions were reported to have been heard in the Ukrainian capital Kyiv on Monday as authorities reported attacks by Russian kamikaze drones.
Metin Aktas | Anadolu Agency | Getty Images
Russia’s offensive against Ukrainian cities continues. Vladimir Putin’s military is relying more on drones to carry out attacks in urban centers. The mayor of Kyiv and other officials said drone attacks in the central district of the capital have killed people, including a pregnant woman, and damaged residential buildings. Fierce fighting is underway in other parts of Ukraine. Russian forces have gone on the offensive in the eastern part of Donbass in an attempt to reinforce their position after Ukrainian forces recaptured large swathes of the occupied territory. Read news about the war live here.
5. E draws a trump card
Kanye West arrives for the Vanity Fair Oscar Party on February 9, 2020 in Beverly Hills, California.
Evan Agostini | Vision | AP
Ye, the artist formerly known as Kanye West, has agreed to buy The right-wing social media app Parler comes just days after Instagram and Twitter banned his accounts over his recent anti-Semitic remarks. The actions of the billionaire rapper and producer are reminiscent of the creation of Truth Social by former President Donald Trump. He helped create a Twitter-like app after he was banned by Twitter, Facebook and other platforms for inciting violence on January 6, 2021, when hundreds of his followers invaded the US Capitol. Parler, like Truth Social and other conservative-friendly social networks, touts its commitment to “free speech,” as E pointed out in a statement provided by Parler’s parent company: “In a world where conservative opinions are considered contentious, we must ensure that We have the right to free expression.” Elon Musk, who has praised Ye and is about to acquire Twitter, albeit reluctantly, has also pledged to make Twitter a “free speech” platform. He also said he would allow Trump to return to the app.
— CNBC’s Yoon Lee, Jenny Reed, Holly Ellatt, Hugh Son, and Ryan Brown contributed to this report.
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