US markets rallied on Friday after Fed chair Jerome Powell opened the door to cut interest rates as early as next month.
In a highly anticipated address at the Jackson Hole Economic Symposium in Wyoming, Mr Powell said changing conditions in the economy “may warrant adjusting our policy stance”.
The remarks were the first made by the US Federal Reserve chairman since a dismal jobs report last month showed signs of a weakening labour market. Unlike other central banks, the Federal Reserve has a dual mandate of price stability and maximum employment. “The balance of risks appears to be shifting,” he said.
The Dow Jones Industrial Average surged 846 points, or 1.89 per cent, to close at an all-time high. The S&P 500 and Nasdaq Composite rose 1.52 and 1.88 per cent, respectively.
The 10-year Treasury yield, meanwhile, fell about 8 basis points to 4.25 per cent. The yield on the two-year Treasury fell more than 10 basis points to 3.69 per cent.
The price of spot gold rose $35.70, or 1.06 per cent, to $3,417.30 per ounce.
Traders increased their forecast of a September rate cut to about 90 per cent after Mr Powell's speech, according to CME Group's FedWatch tool.
The Federal Reserve has maintained its target range for interest rates at 4.25 to 4.50 per cent this year after cutting rates by 100 basis points in 2024. The UAE Central Bank, which mirrors Fed decisions because of the dollar peg, has also kept its base rate unchanged.
A far-weaker-than-expected July jobs report changed the calculus facing the central bank. The report showed the US economy had added far fewer jobs than anticipated, pointing to a weakness in the labour market.
The jobs report came two days after the Fed's July 17-18 meeting. Art Hogan, chief market strategist at B Riley Wealth, said he believed the central bank would have cut rates if the report came in before then.
“Now, the Fed has the ability to shift policy,” he said. “That's not necessarily saying that they're going to cut rates in September, but it's certainly telling you why they would, and I think that's why markets are relatively excited about how that went.”
Peter Andersen, founder of Andersen Capital Management, said he was surprised to see traders rally around the prospect of a September rate cut.
“I really cannot see a strong justification for lowering rates,” he said. “The macro gestalt of the economy right now doesn't seem like it's under tremendous stress that we need a rate cut.”
Fed officials have adopted a wait-and-see approach towards rate-setting this year, pointing to economic uncertainty caused by US President Donald Trump's tariffs and other policies.
This comes as inflation remains above the Fed's long-term two per cent goal, and underlying data showed that tariffs are leading to price pressures across some imported goods.
“When our goals are in tension like this, our framework calls for us to balance both sides of our dual mandate,” Mr Powell said.
While Mr Powell expressed commitment to keeping inflation – which is still above the Fed's long-term target – he suggested that the labour market warrants greater attention.
He described the labour market as one that is in a “curious kind of balance” as a result of a slowdown in the supply of and demand for workers, which he said shows that the downside risks to the Fed's employment mandate is increasing.
“And if those risks materialise, they can do so quickly in the form of sharply higher layoffs and rising unemployment,” he said.
The Federal Reserve holds its next two-day policy meeting from September 16 to 17.
The Disaster Artist
Director: James Franco
Starring: James Franco, Dave Franco, Seth Rogan
Four stars
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
The story in numbers
18
This is how many recognised sects Lebanon is home to, along with about four million citizens
450,000
More than this many Palestinian refugees are registered with UNRWA in Lebanon, with about 45 per cent of them living in the country’s 12 refugee camps
1.5 million
There are just under 1 million Syrian refugees registered with the UN, although the government puts the figure upwards of 1.5m
73
The percentage of stateless people in Lebanon, who are not of Palestinian origin, born to a Lebanese mother, according to a 2012-2013 study by human rights organisation Frontiers Ruwad Association
18,000
The number of marriages recorded between Lebanese women and foreigners between the years 1995 and 2008, according to a 2009 study backed by the UN Development Programme
77,400
The number of people believed to be affected by the current nationality law, according to the 2009 UN study
4,926
This is how many Lebanese-Palestinian households there were in Lebanon in 2016, according to a census by the Lebanese-Palestinian dialogue committee
A timeline of the Historical Dictionary of the Arabic Language
- 2018: Formal work begins
- November 2021: First 17 volumes launched
- November 2022: Additional 19 volumes released
- October 2023: Another 31 volumes released
- November 2024: All 127 volumes completed
The specs
Engine: 5.2-litre V10
Power: 640hp at 8,000rpm
Torque: 565Nm at 6,500rpm
Transmission: 7-speed dual-clutch auto
Price: From Dh1 million
On sale: Q3 or Q4 2022
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LA LIGA FIXTURES
Thursday (All UAE kick-off times)
Sevilla v Real Betis (midnight)
Friday
Granada v Real Betis (9.30pm)
Valencia v Levante (midnight)
Saturday
Espanyol v Alaves (4pm)
Celta Vigo v Villarreal (7pm)
Leganes v Real Valladolid (9.30pm)
Mallorca v Barcelona (midnight)
Sunday
Atletic Bilbao v Atletico Madrid (4pm)
Real Madrid v Eibar (9.30pm)
Real Sociedad v Osasuna (midnight)
The%20specs%3A%202024%20Mercedes%20E200
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%20four-cyl%20turbo%20%2B%20mild%20hybrid%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E204hp%20at%205%2C800rpm%20%2B23hp%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E320Nm%20at%201%2C800rpm%20%2B205Nm%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E9-speed%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E7.3L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENovember%2FDecember%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh205%2C000%20(estimate)%3C%2Fp%3E%0A
What is Folia?
Prince Khaled bin Alwaleed bin Talal's new plant-based menu will launch at Four Seasons hotels in Dubai this November. A desire to cater to people looking for clean, healthy meals beyond green salad is what inspired Prince Khaled and American celebrity chef Matthew Kenney to create Folia. The word means "from the leaves" in Latin, and the exclusive menu offers fine plant-based cuisine across Four Seasons properties in Los Angeles, Bahrain and, soon, Dubai.
Kenney specialises in vegan cuisine and is the founder of Plant Food Wine and 20 other restaurants worldwide. "I’ve always appreciated Matthew’s work," says the Saudi royal. "He has a singular culinary talent and his approach to plant-based dining is prescient and unrivalled. I was a fan of his long before we established our professional relationship."
Folia first launched at The Four Seasons Hotel Los Angeles at Beverly Hills in July 2018. It is available at the poolside Cabana Restaurant and for in-room dining across the property, as well as in its private event space. The food is vibrant and colourful, full of fresh dishes such as the hearts of palm ceviche with California fruit, vegetables and edible flowers; green hearb tacos filled with roasted squash and king oyster barbacoa; and a savoury coconut cream pie with macadamia crust.
In March 2019, the Folia menu reached Gulf shores, as it was introduced at the Four Seasons Hotel Bahrain Bay, where it is served at the Bay View Lounge. Next, on Tuesday, November 1 – also known as World Vegan Day – it will come to the UAE, to the Four Seasons Resort Dubai at Jumeirah Beach and the Four Seasons DIFC, both properties Prince Khaled has spent "considerable time at and love".
There are also plans to take Folia to several more locations throughout the Middle East and Europe.
While health-conscious diners will be attracted to the concept, Prince Khaled is careful to stress Folia is "not meant for a specific subset of customers. It is meant for everyone who wants a culinary experience without the negative impact that eating out so often comes with."
Which products are to be taxed?
To be taxed:
Flavoured water, long-life fruit juice concentrates, pre-packaged sweetened coffee drinks fall under the ‘sweetened drink’ category
Not taxed
Freshly squeezed fruit juices, ground coffee beans, tea leaves and pre-prepared flavoured milkshakes do not come under the ‘sweetened drink’ band.
Products excluded from the ‘sweetened drink’ category would contain at least 75 per cent milk in a ready-to-drink form or as a milk substitute, baby formula, follow-up formula or baby food, beverages consumed for medicinal use and special dietary needs determined as per GCC Standardisation Organisation rules
The years Ramadan fell in May
'Morbius'
Director: Daniel Espinosa
Stars: Jared Leto, Matt Smith, Adria Arjona
Rating: 2/5
RESULT
West Brom 2 Liverpool 2
West Brom: Livermore (79'), Rondón (88' )
Liverpool: Ings (4'), Salah (72')
The years Ramadan fell in May
THE SPECS
Cadillac XT6 2020 Premium Luxury
Engine: 3.6L V-6
Transmission: nine-speed automatic
Power: 310hp
Torque: 367Nm
Price: Dh280,000
The biog
Family: He is the youngest of five brothers, of whom two are dentists.
Celebrities he worked on: Fabio Canavaro, Lojain Omran, RedOne, Saber Al Rabai.
Where he works: Liberty Dental Clinic
Mohammed bin Zayed Majlis
